Overview
Canada Resources PLC holds the right to purchase a Net Smelter Right (NSR) over Sarissa Resources Nemegosenda property. The Nemegosenda property is located 20 km north east of Chapleau. Through extensive historic drilling and through recent test drills the Nemegosenda resource is seen as having the potential to become one of the largest niobium mines in the world.
The claims extends over 3,478 hectares (9,000 acres) in Chewett, Collins and McGee townships. The property is in close proximity to hydro corridor that passes from Timmins, through Foleyet and continues to Chapleau in close proximity to the Provincial Highway 101. This highway passes 10 km south of the property. The Canada National Railine passes through Foleyet, approximately 50 kilometers to the West of the Property, and the Canadian Pacific Railway Line passes approximately 20 kilometers to the West of the property. Highway 129 ends at Chapleau, and continues south towards Thessalon and Sue Saint Marie, Ontario. Highway 101 continues West from Chapleau where is meets up with the Trans-Canada highway in Wawa, Ontario approximately 125 km to the West of the property, at the northeast corner of Lake Superior.
Ontario is considered as the most favourable and secure miningboperating environment in the world. Mining is a key industry within Ontario. The municipal authorities are strongly supportive of the Nemegosenda project, as is the local community.
Regional Geology
The property is located within the Kapuskasing Structural Zone (KSZ) of the Archean Superior Province in the Canadian Shield. The Kapuskasing Strucutural Zone is characterized by high grade Archean gneisses trending northeast as well as sub-parallel faults. In the southern part of the KSZ, these rocks are intruded by three known alkali intrusive complexes: the Borden Lake, Lackner Lake, and Nemegosenda Lake alakli intrusive complexes. The Nemegosenda niobium property covers the majority of the Nemegosenda Lake alkali intrusive complex.
Property Geology
The Nemegosenda Lake alkali intrusive complex is an elliptical body approximately 5 by 7 km, with the semi-major axis oriented north-south. The complex is emplaced within Archean age orthogneisses. Orthogneissic wall rocks show variable degrees of fenitization, with the intensity of fenitization increasing with proximity to the intrusion. The intrusive body is characterized by arcuate and partial rings of gabbro, ijolite, fenite, nepheline, syenite, carbonatite, malignite, syenite, and mafic syenite. Several later-stage carbonatite, lamprophyre, and alkalic dykes cross-cut these units. The complex was emplaced following metamorphism and deformation associated with the formation of the KSZ. The complex is offset by northeast trending faults.
Niobium mineralization in the D-Zone occurs at the contact region between the outer fenitized host rocks and the inner alkali intrusion. In the D-Zone, the niobium ore mineral pyrochlore is most commonly associated with flat-lying malignite units. However, pyrochlore mineralization occurs within fenite units that are cut by variable amounts of malignite veins and stringers, or have fragmental inclusions of malignite within fenites. Alkali fenites are commonly mineralized with lower concentrations of niobium, especially where aegerine-augite mineral assemblages occur.
In the SE-Zone, niobium mineralization is commonly associated with pyrochlore-magnetite rich pyroxenites inferred to be the result of original igneous layering features. Higher grade niobium values are present locally, and are associated with biotite-apatite jacupirangites. Yttrium and elevated rare earth element (REE) concentrations are commonly associated with garnetiferous pyroxenites and wollastonite pyroxenites.
Exploration History
The property's potential was first discovered when Dominion Gulf Company conducted an aero magnetic survey in 1954, in which a large mineral anomaly was identified. As a result detailed geological and ground magnetic surveys were completed. Through extensive historic drilling and through recent test drills which have verified the extent of the resource, the Nemegosenda property is recognised as becoming a significant niobium deposit.
The Dominion Gulf Company conducted a total of 68 test drills or 35,306 feet during 1955 and 1956, which revealed the unique extent of the niobium resource within the property boundaries. However the true value of the resource contained only became apparent in the late 1990's, when advances in steel production began to reveal the elements exceptional properties.
Dominion Gulf's work culminated in the reporting of a historic resource estimate of 18 Million tons grading 0.47% niobium pentoxide, in an area 600 x 600 x 800 ft. from the surface of the deposit. Preliminary metallurgical work results in driving a 580 ft. adit to collect a 1,000 tonnes bulk sample for the design of a metallurgical flowchart and pilot plant design.
Work resumed by Musto Explorations Ltd. which completed an airborne magnetic and VLF survey. Limited re-sampling of stored Dominion Gulf core showed reasonable comparisons of grades with more modern analytical techniques. Additionally, assays for rare earth elements showed more potential for REE mineralization in the southeast zone.
Exploration History
Current exploration looks to increase the confidence in the size, grade, and continuity of the niobium deposit in the southeast zone, with the eventual completion of an updated, modern, NI 43-101 resource estimate.