With nickel prices rebounding to respectable levels, juniors are showing renewed interest in exploring for the base metal.
Nuinsco has taken on several new projects since drilling at the Lac Rocher nickel prospect in Quebec failed to live up to expectations. In early August, the junior announced it had acquired a massive sulphide project at Confederation Lake, 80 km from Ontario’s Red Lake district. It recently optioned the Mel property, which comprises a 446-ha block of 10 leased claims, including the Mel deposit, and an adjacent block of 91 staked claims totalling 21,657 ha.
Previous work on Mel resulted in an inferred resource at 7 million tonnes grading 1.25% nickel to a depth of 600 metres, including 620,000 tonnes of ramp-accessible material averaging 1.8% nickel. Confirmation drilling will begin shortly. The best intersection from shallow drilling on the staked claims returned 2 metres grading 2.43% nickel.
To earn a 100% interest, Nuinsco must spend $6 million over the next five years — $500,000 in year one and $850,000 in year two. Up to 20% of the expenditures can be spent on the Mel deposit.
Once Nuinsco has earned a 100% interest, Inco can re-acquire 51% by spending $6 million on exploration over the next four years. Nuinsco has the right to operate any mine developed on the property.
Meanwhile, in Newfoundland, juniors
In the province’s central mineral belt, Copper Hill has acquired the 83-claim 5,146-acre Powder Lake property, where previous surface sampling returned 1.1% nickel, 0.65% copper and 0.09% cobalt.
To earn a 100% interest in the property, situated 17 km west of Grand Falls-Windsor, the company must pay $32,500 in cash over two years and issue 300,000 shares to the vendors by December 1999.
Also, Copper Hill must spend $300,000 on exploration and drill at least one hole within six months.
The vendors will hold a net smelter royalty of 3% and be issued an additional 100,000 shares at the time of production.
Meanwhile, in western Newfoundland, Altius Minerals has optioned 16 claims covering a newly discovered nickel prospect and granted an option to enter into a joint venture to Billiton Exploration.
Early surface work at the property returned grades averaging 5.38% nickel, 1.05% copper and 0.1% cobalt. By spending $250,000 on exploration, Billiton can earn a 50% interest in the property. The company can then earn an additional 10% by committing to spend $750,000. Upon formation of a joint venture, Billiton may be required to spend a further $250,000 on exploration. Altius can then increase its interest to 49% by spending $275,000.
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