Metal Energy gains 70% interest in Manibridge nickel project in Manitoba

Metal Energy (TSXV: MERG) has officially acquired a 70% interest in the Manibridge nickel-copper project in Manitoba. The company expects to continue exploration on the property and shortly complete the milestones required for 100% ownership.

As part of the Manibridge earn-in agreement, Metal Energy has issued a total of 5 million common shares to the optioner of the project, CanAlaska Uranium (TSXV: CVV) and paid $100,000 in cash as a part of its notification of intent to achieve full ownership.

About $1 million in additional exploration work at Manibridge is required to fully satisfy all of the 100% ownership conditions. Metal Energy has 24 months to complete this milestone, but anticipates its completion much sooner.

The Manibridge nickel mine in 1975 (left) when it was operated by Falconbridge and the project site now (right). Credit: Metal Energy

The Manibridge property is located in the Thompson nickel belt of north-central Manitoba, which is known for its prolific nickel deposits. The project appears to host high-grade nickel mineralization below and along strike of an area previously mined by Falconbridge from 1971 to 1977. During that time, the mine produced a total of 1.3 million tonnes of ore at 2.55% nickel and 0.27% copper.

Premised on drilling by previous operators, Metal Energy completed its inaugural drill program on the Manibridge property earlier this year. A total of six drill holes (2,350 metres) were completed during the program, all of which intersected nickel-copper in sulphides. A Phase 2, 10,000-metre program was subsequently initiated in June, focusing on areas within 150 to 600 metres of the old mine workings.

“We were enthused about the recent results of Manibridge’s Phase 1 drill program of intersecting wide high-grade nickel interceptions in every hole. These intersections and the visuals from Phase 2’s drill core continue to affirm our belief that Manibridge has excellent redevelopment potential. We are very pleased to not only complete this milestone but do so well in advance of the original option agreement time frames,” James Sykes, CEO of Metal Energy, stated.

The Manibridge property encompasses 43.6 sq. km and is located 20 km south of Wabowden, Man. and about 650 km north of Winnipeg.

Metal Energy’s equity was trading at 15¢ per share at end of day on Wednesday. Its shares traded between 9¢ and 56¢ in a 52-week window, giving it a market capitalization of $25.6 million.