Equitas Resources Corp. Acquires Garland Nickel Property in the Voisey's Bay Area
Sep 25, 2014, 08:30 ET
VANCOUVER, Sept. 25, 2014 /CNW/ - Equitas Resources Corp. (TSXv: EQT; FSE: T6U1) ("Equitas" or the "Company") is pleased to announce that it has entered into an agreement to acquire a 100 per cent interest in the Garland Property, located in Labrador, Canada. The property encompasses 25,050 hectares and is 30 kilometres southeast of Vale's Voisey Bay Nickel/Copper/Cobalt mine. A review of historical exploration work shows the Garland Property to be within an environment favorable for magmatic Ni-Cu sulphide deposits; and which also possess strikingly similar features to the Voisey's Bay deposit(s).
Given the close proximity to the Voisey's Bay discovery, a similar tectonic environment to North American Nickel's Maniitsoq Project in Greenland, and coupled with the lack of modern exploration techniques at the Garland Property, the company believes it has good potential for the discovery of nickel, copper, cobalt and platinum group element ("PGE") mineralization.
Advances in geophysical electromagnetic exploration techniques allow greater depth penetrating capabilities than those available at the time of historic exploration (circa. 1995 to 1996). The Company's exploration of the property will initially include an airborne Versatile Time-domain Electromagnetic (VTEM max) technology. The results of this survey will be integrated with existing airborne gravity and magnetic data, which will allow for the rapid identification of geophysical targets similar to those for other magmatic nickel-copper sulfide occurrences (ie. Voisey's Bay). Targets will be ground tested with applicable ground geophysics and geological mapping/sampling to identify high priority targets that may warrant drilling.
About the Garland Property
The Property was explored by 10 separate companies, primarily between the years 1995 to 1999. At the time, individual claim blocks were relatively small with multiple owners, which was not conducive to a regional exploration strategy that allowed for the systematic exploration of the area. Exploration methods focused on out-dated frequency-domain airborne Electromagnetic ("EM") surveys over isolated areas, and which have very shallow depth penetration capabilities (estimated at 75 metres). Further, reconnaissance rock sampling and mapping covered only a fraction of the Property.
Recently, in-between 2000 to 2007, parts of the property and areas to the west were explored by Vale Canada Limited (and its predecessors). Exploration methods included a regional Airborne Gravity Gradiometer ("AGG") survey, with follow-up Induced Polarity ("IP") ground-EM surveys, and ground reconnaissance sampling. This exploration resulted in the identification of several localized targets, but only one drill-hole is reported for the Property. Despite the absence of significant Ni-Cu-Co mineralization, the drill hole verified the suitability of the region to host a Voisey's Bay-style deposit. The drill hole encountered "a sequence of variably textured gabbro-norites with trace very fine-grained disseminated sulphides locally".
About Voisey's Bay
The original discovery at Voisey's Bay was made in late 1993 while conducting a regional exploration program by Archean Resources Ltd., under contract to Robert Friedland's Diamond Fields Resources; the geologists noticed an outcrop at surface. The property was staked in early 1994 after samples returned high nickel and copper values. Drilling commenced and early results suggested that the property could hold one of the highest-grade, large nickel ore bodies known. In August 1996, after many negotiations and transactions, Inco Limited purchased the Voisey Bay Property for $4.6 Billion. Approximately 420 diamond drill holes were completed for a total of about 205,000m of drill core by August of 1997.
The Voisey's Bay Mine commenced production in 2005, with reported reserves of 17.2 million tonnes of ore grading 2.38% Ni, 1.34% Cu and 0.11% Co (2013 proven and probable reserves). Total resources have been estimated at well over 100 million tonnes.
In 2012, at the Voisey's Bay Ovoid mine in Newfoundland and Labrador, Vale reported mining 2.35 Mt of ore containing 3.11% nickel (73,116 t), 1.94% copper (45,600 t), and 0.052% cobalt (1,221 t). The Nickel that was produced from Voisey's Bay accounted for nearly 35% of the total produced in all of Canada.
The Voisey's Bay district is thought to be at its very early stage of exploration and discovery when compared to other nickel and base metal districts, such as Sudbury, Ontario and Thompson, Manitoba. The region continues to hold excellent potential for additional discoveries.
In consideration for a 100% stake in the Property, Equitas has entered into an option agreement with Zimtu Capital Corp., DG Resource Management Ltd. and Ridge Resources Ltd., collectively the "Vendors".
The Company will issue 7,999,998 shares over a 36 month period of which 2,666,666 is due upon exchange approval of the agreement. Pay $80,000 over a 1 year period of which $30,000 is due upon signing and grant DG Resource Management a 2% Gross Overriding Royalty (GORR) in the Property. The transaction is subject to acceptance by the TSX Venture Exchange.
NI 43-101 Disclosure
Neil McCallum, P.Geol., Dahrouge Geological Consulting Ltd., a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.
On Behalf of the Board of Directors,
EQUITAS RESOURCES CORP.
The TSX Venture Exchange has neither approved nor disapproved the information contained herein.
This news release contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward looking statements in this press release include but are not limited to modern exploration techniques will lead to discovery of nickel, copper, cobalt and platinum group element mineralization; advances in geophysical exploration will provide greater magnetic and structural interpretation; plans for a comprehensive exploration program and that targets will be tested on the ground.
Information set forth in this news release may involve forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: the need for additional financing; operational risks associated with mineral exploration; fluctuations in commodity prices; title matters; environmental liability claims and insurance; reliance on key personnel; the potential for conflicts of interest among certain officers, directors or promoters with certain other projects; the absence of dividends; competition; dilution; the volatility of our common share price and volume and the additional risks identified in the management discussion and analysis section of our interim and most recent annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and Equitas undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.
SOURCE: Equitas Resources Corp.
For further information: David Hodge, President, Tel: 604.681.1568
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