Noranda eyes Magusi and Fabie Bay

Noranda (NRD-T) has inked an option deal to pick up a 60% stake in Globex Mining Enterprises‘ (GMX-T) Magusi River – Fabie Bay property about 40 km northwest of Rouyn-Noranda, Quebec.

To earn its interest, Noranda must pay $260,000 in option payments and foot the bill for $2.5 million worth of exploration over 3 years. Noranda must also deliver a bankable feasibility study. If the study isn’t tabled with in 4 years, Noranda must pay Globex an advance royalty until it is. Noranda will also pay Globex a higher advance royalty until commercial production.

Once commercial production is achieved, Globex will receive a guaranteed minimum annual production profit payment before deduction of previous advance royalties or production expenses.

The Magusi River polymetallic deposit contains drill-defined resources and reserves totalling about 3 million tonnes running 3.23% zinc, 1.64% copper, and 1 gram gold per tonne. The massive sulphide lens stretches about 520 metres in length and extends to a depth of around 400 metres.

All of the deposit’s reserves are contained within the western-most 300-metrre section of the deposit, which has a maximum thickness of 35 metres, and averages 15 metres. The deposit thins to a minimum of 3 metres over the eastern 220 meters.

The west zone has also yielded significant gold intersections, including:

• Hole M-66 – 6.1 metres grading 5.8 grams gold per tonne, 63.4 grams silver and 15% zinc;
• Hole M-63 – 2.4 metres of 7.9 grams gold, 39 grams silver and 17.2% zinc;
• Hole M-9 – 5.2 metres of 7.5 grams gold, 29.8 grams silver and 10.7% zinc;
• Hole M-34 – 6.2 metres running 8.9 grams gold35.7 grams silver, and 5.2% zinc.

The Fabie Bay copper deposit is hosted by overturned, but relatively undeformed mafic pillow lavas, breccias and tuffs. The partially mined deposit strikes for about 92 metres and dips at 70 for about 180 metres. The massive sulphide lens is reported to host about 716,600 tonnes grading 2.7% copper, plus gold and silver credits.

The two companies have begun a deep drilling campaign to test both deposits for down-dip and plunge extensions.

The properties are about 50 km from the Noranda copper smelter.