BHP eyes Rottenstone

Vancouver — The Canadian subsidiary of Australian mining giant BHP (BHP-N) has inked a deal to earn up to a 70% stake in Uravan Mineral’s (UVN-V) Rottenstone nickel-copper-platinum group metals property in northern Saskatchewan.

BHP Diamonds can earn a 60% interest by spending $2.3 million over four years. The major can pick up an additional 10% by spending $2 million during the fifth year.

Uravan has been exploring the past-producing Rottenstone deposit since 1998. Mined in the 1960s, the operation cranked out 40,000 tonnes of high-grade ore averaging 3.3% nickel, 1.8% copper and 9.6 grams combined platinum-palladium-gold per tonne.

Based on the high grades and high sulphide content hosted in the ultramafic sill, the partners think the deposit marks the extension of a much larger ultramafic intrusive body capable of hosting an economic body.

To date, Uravan has identified four priority areas for further exploration. An exploration plan is under way and the partners are budgeting for ground geophysics and geochemical surveys.

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