Partners dive into Lynn Lake (February 21, 2005)

Seymour Exploration (SEZ-V) has agreed to issue 1 million shares to Black Hawk Mining in return for the historic Lynn Lake nickel property in northern Manitoba. The transaction requires regulatory approval.

The property includes the past-producing Lynn Lake nickel mine, and the developed A plug intrusive body, which comprised 10 ore bodies. Sherritt Gordon Mines extracted some 20.1 million tonnes averaging 1% nickel and 0.5% copper from the mine between 1953 and 1976.

Based on historic records, the partially developed N and O ore bodies are estimated to contain 5.8 million tons grading 0.8% nickel and 0.3% copper, including a 2.3-million-ton, higher-grade zone running 0.9% nickel and 0.3% copper. The estimate does not conform to National Instrument 43-101 standards. Winnipeg-based Wardrop Engineering has been retained to prepare an updated technical report for the property. Plans also call for a campaign of diamond drilling and geophysical and geochemical surveying aimed at areas outside the developed levels.

A newly formed company named Lynn Lake Nickel Mining will manage work on the property. Under an existing strategic alliance agreement with Seymour, Wallbridge Mining (WM-T) has the right to earn a 50% interest in the project.

Also under the deal, Lynn Lake Nickel Mining will pick up three base metal exploration properties in the Lynn Lake greenstone belt. The Lar and Wellmet properties are reportedly home to significant copper-zinc-gold mineralization. Data compilation is underway in anticipation of a program of exploration around known volcanogenic massive sulphide, copper-zinc-gold mineralization.

Meanwhile, in the boardroom, Kerry Knoll, president of Glencairn Gold (GGG-T), has joined Seymour’s board of directors. Glencairn merged with Black Hawk Mining in October 2003.

Shares in Seymour were 4, or 19%, higher at 25 in afternoon trading on the TSX Venture Exchange following the news on Feb. 14; Wallbridge was off 2, or nearly 5%, at 40 on the TSX.