Noranda Mining & Exploration, a division of Noranda (TSE), has signed a deal with Breakwater Resources (TSE) for a majority share of Breakwater’s Cadieux zinc property.
Noranda can earn a 51% stake in the property, near Renfrew, Ont., by spending $3 million on exploration over five years. After that period, the company can increase its interest to 60% by funding all further work on the property up to, and including, a feasibility study. In addition, Noranda must pay $300,000 cash to Breakwater over the 5-year period.
The 443-hectare property is underlain by a northeast-southwest-trending, metasedimentary and metavolcanic sequence of siliceous and relatively pure dolomitic marble, which hosts the zinc mineralization.
Previous exploration consisted of geological mapping, soil geochemistry, induced-polarization surveys, trenching, and diamond drilling of 92 holes totalling 24,273 metres. This work has outlined five zones of zinc mineralization, with total probable and possible reserves of 1.1 million tonnes grading 9.4% zinc and 0.9% lead.
Be the first to comment on "Breakwater, Noranda ink deal on zinc property"