Partners ink Quebec exploration pact

Marum Resources (MMU-V) and Ressources Appalaches (APP-V) have inked an agreement to explore the Pentecote River anorthosite complex near Port Cartier, Quebec.

Appalaches is currently exploring the 145-claim B-20 property where surface sampling and drilling has outlined a large nickel-copper massive sulphide system and newly discovered zones with high platinum values. Surface and trench samples have yielded between 0.2 and 2.2 grams platinum per tonne, 0.2 to 2% nickel, 0.5 to 4.9% copper plus cobalt values.

Earlier this year, 15 short holes tested several geophysical conductors near some surface mineralization, and cut multiple near-surface horizons of mineralized pyroxenite over a strike length of more than 1 km, with individual horizons up to 50 metres thick. Twelve of the holes returned more than 0.75% nickel and 0.5% copper. Hole 6 returned 30 metres running 0.33% nickel and 53 metres grading 0.22% nickel.

The B-20 property is subject to small cash payments to a prospector who also holds a 1% net smelter return royalty. Half of the royalty can bought back for $500,000.

Marum and Appalaches are already exploring the adjacent Baie des Sables property where a winter drill program is planned. Mapping and surface sampling suggests that the massive sulphide host system extends the entire length of the 10-km-long property.

Marum also holds a 100% interest in two staked claim groups, Group West consisting of 26 claims adjacent to the B-20 property and Group East consisting of 18 claims adjacent to both the B-20 and BDS properties.

The B-20 and BDS properties are easily accessible from a paved highway and are close to major electric power transmission lines and the town of Port Cartier with its strategic deep-water port.

Under the proposed deal, Marum will have a two-year option to earn a half-interest in the B-20 property by subscribing to a private placement of 750,000 units of Appalaches at 20 apiece, by the end of January 2002. One unit comprises one Appalaches share and one purchase warrant that allows the holder to acquire an additional shares for 23 for the first six months, and 26 per share for the next 12 months. Marum will also transfer to Appalaches a half-interest in the Group West and Group East properties.

After June 30 2002, Marum can earn its 50% interest by covering half of Appalaches expenditures incurred at B-20 before the end of May 2002. So far Appalaches has spent about $280,000 at B-20; it expects to spend another $350,000 mostly on a winter drill program before May 30, 2002.

If Marum terminates the option, or fails to earn its 50% interest, or defaults on its private placement obligation, it is committed to transfer to Appalaches its 50% interest in the Group West and Group East properties to Appalaches to be incorporated into the BDS property which is subject to an existing option agreement between Marum and Appalaches.

Appalaches will act as operator of the exploration program.

The results of the five-month summer exploration programs on the B-20 and BDS properties are currently being evaluated. Exploration planned for both properties this winter includes drill testing of electromagnetic conductors located near surface showings of platinum, nickel, copper and cobalt.