Vancouver – While not hugely financially significant on its own, Fjordland Exploration’s (FEX-V) $500,000 private placement with Imperial Metals’ (III-T) is indicative of a further possible strategic alliance.
It is an obvious fit. Earlier this month, Fjordland released results from drilling at the Woodjam copper-gold project located near Williams Lake in central British Columbia, 35 km. south of Imperial’s soon to be reactivated Mount Polley copper-gold mine.
Results were exceptional, with Fjordland’s discovery hole 04-32 intersecting 361.2 metres grading 0.84 grams gold per tonne and 0.12% copper from surface on the Megabuck zone. The intercept illustrates a significant gold-copper porphyry system.
Interestingly enough, the hole was ended in mineralization due to a shortage of drill rods and other commitments by the drilling contractor. The casing has been left in place with hole reentry possible.
Mineralization at Woodjam is associated with a quartz monzonite intrusive in close proximity to Takla Group volcanics, common with major copper-gold porphyries such as Imperial’s Mount Polley and Northgate Minerals’ (NGX-T) Kemess deposits in the Quesnel Trough Mineral Belt.
Imperial will inject the half-million dollars into Fjordland through a non-brokered transaction consisting of a combination of one million flow-through and 250,000 non-flow-through common shares at 40 each. Warrants are included allowing Imperial to purchase further Fjordland equity for a period of two years. Imperial also retains a one-year right of first refusal to participate in future financings and will join an advisory committee to guide exploration and development of the project.
Fjordland will be allocating the funds to reactivate drilling at Woodjam where they are earning a 60% interest from Wildrose Resources (WRS-V).
Investors leapt on the news in bullish form, pushing the issue to a new yearly high of over 40 per share on volume of well over 1.4 million shares at presstime. As of the latest figures, Fjordland reports 28.8 million shares outstanding.
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