The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
Options properties next to Muskox nickel-copper-PGM project North of 60 Mining News – March 31, 2023
Geologists collect samples with grades as high as 1.65% nickel and 8.64% copper during the 2022 field program on SPC Nickel's Muskox project in Nunavut's Kitikmeot region.
Click on image for larger map.
SPC Nickel Corp. March 28 announced a major expansion of its Muskox nickel-copper-platinum group metal project in Nunavut.
Under an option agreement with Bathurst Metals Corp., SPC has the right to acquire full ownership of the McGregor Lake and Speers Lake properties, which cover roughly 178.4 square kilometers (68.9 square miles) of the Muskox intrusion in the Kitikmeot region of western Nunavut.
These new properties consolidate SPC's land position over the Muskox intrusion, resulting in control of nearly 650 square kilometers (250 square miles) of this nickel-copper-PGM-rich area in northern Canada.
"We believe that the Muskox property represents one of the last true camp-scale nickel-copper opportunities in North America," said SPC Nickel President and CEO Grant Mourre. "The Muskox Intrusion is comparable in size, composition and interpreted geological environment to many of the world's largest Ni-Cu-PGM deposits such as Norilsk in Siberia and Voisey's Bay, in Newfoundland and Labrador."
SPC says the nickel-bearing mafic to ultramafic intrusion at Muskox, which was first discovered by Inco in the 1950s, extends for roughly 150 kilometers (93 miles), making it one of the largest and least deformed in the world.
The company staked claims over this large intrusion in 2021 and, at the same time, acquired a comprehensive database that represents more than 15 years of exploration over four multi-year programs that date back to 1955.
According to the company, a compilation of the database confirms the presence of widespread high-grade nickel-copper-PGM mineralization along 60 kilometers (37 miles) of the Muskox feeder dyke.
The McGregor Lake and Speers Lake properties cover more than 45 kilometers (28 miles) of the intrusion, where previous exploration programs have reported some of the highest-grade surface grab samples as well as drill hole intersections.
Highlights from previous drilling include:
• 13.74 meters averaging 2.21% nickel and 5.04% copper from a depth of 98.12 meters in hole EQNX87-05 (Speers Lake).
• 9.3 meters averaging 2.11% nickel, 3.91% copper, and 6.71 grams per metric ton PGM from a depth of 99.7 meters in hole 00-MU003 (McGregor Lake).
These drill intercepts are comparable to grab samples collected during a five-day field program carried out on SPC's core Muskox property last year. Highlights from the 2022 sampling program include:
• 1.55% nickel, 6.38% copper, and 6.18 g/t PGM (SKOX showing).
• 1.48% nickel, 1.57% copper, and 2.66 g/t PGM (Spider Lake).
• 1.65% nickel and 8.64% copper (Western Margin).
The Western Margin sample was collected immediately north of the McGregor Lake property optioned from Bathurst.
"By using our proprietary database, the technical team will continue to advance our understanding of the Muskox Intrusion while also generating exciting new base and precious metals targets as SPC Nickel develops a strategy to advance this project towards a significant discovery," said Mourre.
To earn a 100% interest in Speers Lake and McGregor Lake, SPC Nickel has agreed to issue 7.5 million shares and pay C$1.35 million to Bathurst over three years, which includes 2.5 million and C$300,000 upon TSX Venture Exchange approval of the option agreement.
SPC has the option to accelerate all or any cash or share payments to Bathurst, as well as the option to pay cash in lieu of shares.
If SPC earns full interest, Bathurst will retain a 1% net smelter return royalty on the properties, with SPC retaining the right to buy back 0.5% NSR for C$5 million up to the time of commercial production.
SPC has also agreed to pay Bathurst $5 million within twelve months of the commencement of commercial production if the earn-in option terms are satisfied.
"This strategic transaction provides SPC Nickel with a path to consolidate the highly prospective Muskox Intrusion," said Mourre.
Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.
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