A joint venture between
Subject to regulatory approval, Falconbridge can earn up to a 75% stake in any properties owned by, or under option to, Hucamp within a 200-km radius of the major’s Kidd Creek metallurgical site. This includes the Alexo property but excludes the Dundonald and Sothman properties, both of which are under option to Hucamp from Falconbridge.
To earn its interest, Falco must incur two times Hucamp’s exploration expenditures, or three times if it exercises its right after the prefeasibility stage. The major must also purchase $500,000 worth of Humcamp units, with a unit to consist of a share and a warrant.
The Alexo property covers 7.25 sq. km, including the historic Alexo mine, which produced high-grade nickel during the First and Second World Wars. A small volume of material remains in the old workings, and at least one other nickel zone is known to occur elsewhere on the property.
During the summer field season, Humcamp completed a mechanical stripping program east and west of the old mine workings. The program exposed massive, net-textured and disseminated nickel, copper and platinum-group-element sulphides along 100 metres of strike length.
To the east, a zone of heavy sulphide mineralization averaging more than 2 metres in thickness was exposed over 25 metres. The mineralization disappears under thicker overburden.
Channel sampling returned 1.77-6.4% copper and 0.72-3.33 grams combined platinum and palladium per tonne over widths ranging from 0.1 to 4.3 metres. Copper values were generally less than 0.3%.
On the other side of the mine, 75 metres of net-textured and disseminated sulphides were exposes. Lenses of massive sulphides associated with secondary embayments occur along the footwall contact.
Nickel values came in at 1.1-5.26%; combined platinum and palladium, at 0.49-1.78 grams. Copper values were mostly under 0.3%.
Hucamp can earn a full interest in the Alexo property by spending $2.3 million on exploration and completing a bankable feasibility study. Finnish miner
At the Dundonald property, Hucamp can earn a 65% stake by spending $6.5 million on exploration by May 31, 2006. Falconbridge can reacquire 15% of that by spending $3 million over the ensuring two years.
Past exploration at Dundonald led to the discovery of the Dundonald South, Dundeal and Dundonald Beach zones, all of which carry nickel and platinum-group-metal values.
In the immediate vicinity of those properties, Hucamp has optioned 5.6 sq. km from a local prospector and is completing an option agreement for 2.4 sq. km from
Also excluded from the deal is the Sothman nickel property, which covers 20 sq. km in Sothman, Kemp and Mond twps. A near-surface deposit there carries 172,354 tonnes at a grade of 1.24% nickel.
Mineralization extends to a vertical depth of 150 metres, where it remains open.
Hucamp can earn a 51% interest in the Sothman property by spending $2 million. Another 14% can be acquired in the fifth year in exchange for $1 million in expenditures. Falconbridge retains the right to increase its interest to 50% by spending $2 million over the following two years.
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