Majescor raises $2.2m

Quebec City-based Majescor Resources (MAJ-M) has arranged a $2.2-million private placement with investment dealer Canaccord Capital. Proceeds are earmarked for diamond exploration in northern Quebec.

Trading in Majescor was halted in mid-April of 2000, in the midst of a reverse-takeover with Surfnshop, an internet company. Majescor says the reverse-takeover will be completed by a newly created subsidiary.

The Canaccord financing consists of a maximum of 2,000 “A” units and 400 “B” units. Each A unit comprises 1,600 flow-through shares and 400 common shares priced at 50 apiece, whereas one B unit comprises 1,000 shares at 50 plus 1,000 warrants. Each warrant allows for the purchase of an additional share at 65 for two years. The company has 8.7 million shares outstanding.

Majescor was spun-off from Virginia Gold Mines (VIA-T) as a diamond exploration vehicle and was taken public in February 2000.

The junior has homed in on the Wemindji and Eastmain areas of northern Quebec. The Wemindji is 40 km east of James Bay and some 100 km southwest of Radisson. It consists of four contiguous exploration permits totalling 630 sq. km and covers a former exploration permit of Monopros. This area lies at the juncture of the northeastern projection of the Kapuskasing structural zone and an 800-km-long zone of weakness. The latter is characterized by a series of grabens infilled with Lower Proterozoic-age sediments.

Previous work by the De Beers subsidiary included airborne geophysics, glacial till sampling and core drilling. Monopros defined a 32-km-long indicator mineral dispersion train but drill-tested nine magnetic anomalies without success.

The Wemindji property is accessible year-round by an all-weather road that connects to the paved Matagami-Radisson Highway. Majescor completed a 1,700-line-km airborne geophysical survey over some of the best indicator mineral anomalies in March 2000 and followed up by taking 319 till samples.

One magnetic anomaly corresponds to a 30-kg till sample, which yielded “numerous” angular fragments of kimberlite and more than 9,000 indicator grains, including keliphyte-rimmed garnets and perovskite-mantled ilmenites. Other samples in the vicinity returned high indicator counts ranging from 56 to 523. (The local background is below 10.)

On a regional level, the indicator mineral suite is dominated by ilmenite and garnet, with G10s accounting for more than 4% of the pyropes.

The junior is preparing to drill seven to 10 geophysical targets in early February.

In related news, Globex Mining Enterprises (GMX-T), Aurogin Resources (AUQ-V) and Sparton Resources (YSP-V) have jointly acquired 280 sq. km of ground surrounding the Wemindji property. Each will hold a one-third interest.

Eastmain

Majescor is also exploring the Eastmain property in the Caniapiscau area, 125 km southeast of the LG-4 hydroelectric complex and 40 km northwest of the inactive Eastmain gold mine. The project consists of five contiguous permits totalling 923 sq. km and adjoins a 445-sq.-km property recently acquired by partners Ashton Mining of Canada (ACA-T) and Soquem. The latter is a Crown corporation owned by the Quebec government.

Majescor has outlined several indicator mineral dispersion trains, based on more than 600 till samples. The indicator population is dominated by peridotitic garnet, of which 20-25% are G10s. The one chromite recovered to date shows diamond inclusion chemistry.

An airborne geophysical survey is planned for the spring.