Puget puts focus on northeastern Ontario

Puget Ventures (PVS-V) has announced a C$1.575 million financing in the midst of scooping up properties in northeastern Ontario.

Today the company announced that it has signed a letter of intent to acquire the 170 sq. km of land with two past-producing mines known as the Werner Lake mineral belt properties near Kenora, Ont. from Commerce Capital.

There are four mineralized zones on the property. The West cobalt deposit was mined during the Second World War and the Werner Lake Minesite deposit was mined by Canmine Resources before it went bankrupt in 2002. The properties were acquired by Commerce in 2003.

A 1998 Canmine report, reviewed by Stoner Engineering Consultants, stated that the Cobalt and Minesite deposits contained both reserves and resources, which are now viewed as historical by Puget.

Proven reserves were 140,000 tonnes grading 0.47% cobalt, 0.26% copper and 0.008 oz. gold per tonne.

Probable reserves were enarly 41,000 tonnes grading 0.25% cobalt, 0.43% copper and 0.02 oz. gold per tonne.

Indicated resources were 51,000 tonnes grading 0.14% cobalt, 0.2% copper and 0.003 oz. gold per tonne.

And finally, inferred resources were 507,000 tonnes grading 0.31% cobalt, 0.29% copper and 0.011 oz. gold per tonne.

The proven reserves include a 6,200 tonne stockpile that Puget has not identified yet.

Yesterday, Puget announced that it had entered an agreement with Harper Capital to earn a 100% option to buy the Norpax nickel-copper property, also in the Werner Lake mineral belt, for about $120,000 between now and 2011 and must spend $100,000 on exploration by 2013.

The Norpax deposit has a historical reserves and resouces totaling 1.01 million tons grading 1.2% nickel and 0.5% copper. The property was drilled by Norpax Oils and Mines between 1954 and 1957, when three-compartmetn shaft was sucnk to 122.5 metres depth and two levels were developed underground extending 76 metres and 114 metres but no stop development or mining was done.

The company hopes to eventually verify and expand the historic resources. It also plans to do a review of work done by the Ontario Geological Society to further target exploration opportunities in the area.

The financing was a non-brokered private placement  for 4.5 million units at a price of 35¢ each, with each unit consisting of one share and one half warrant, exercisable at 50¢ per share for 18 months.

Puget will spend the money on exploration in the Werner Lake mineral belt and for general working capital. The company says it will also offer up to 1.25 million flow-through shares at 40¢ for a total of up to $500,000.