Anglo American options Goldbrook’s Raglan properties

Vancouver — Anglo American (AAUK-Q) has entered into an agreement with Goldbrook Ventures (gbk-v) to earn up to a 70% interest in a group of polymetallic properties in northern Quebec’s Raglan camp.

By spending at least $20 million on exploration over four years, Anglo can earn an initial 51% interest in the properties; it can earn an additional 19% by completing a full feasibility study.

Anglo will be the operator. Conveniently, both partners have their offices in the same Vancouver building, 700 West Pender St.

Anglo has agreed to subscribe for $1 million worth of Goldbrook’s shares at either a 20% premium to the average closing price or 55, whichever is higher.

The deal also gives Anglo a right of first offer on the 189,600 hectares that constitute Goldbrook’s Wakeham and Ungava properties in the eastern part of the Raglan district.

Goldbrook controls about 40% of the Raglan camp, or roughly 250,000 hectares, most of which has been subjected to airborne geophysics.

One of the company’s targets, the Getty zone, was drilled in 2004. Twelve holes intersected nickel-copper mineralization in disseminated to massive sulphides. Hole 21 cut 49.2 metres of sulphide mineralization, including 14.6 metres of massive sulphides. Samples of the core returned average values of 1.35% nickel, 0.61% copper, 0.06% cobalt and 0.37 gram platinum, plus 2.51 grams palladium per tonne, over an interval of 49.4 metres.

Other drill holes intersected sulphide zones of 20-50 metres in core length, mainly with nickel and copper grades in the range of 0.1-0.5%, plus platinum and palladium credits. The true thickness of the intersections has not been determined, though the results suggest the zone is in a trough-shaped zone in the footwall of the Belanger ultramafic sill.

The Getty zone is 100 km southwest of the Katinniq deposit, which is being mined by Falconbridge (FL-T). Getty is one of four nickel-copper showings Goldbrook has located in the sill, which magnetic surveys suggest has a strike length of just over 6 km.

Prospecting last year uncovered the Sylvie nickel/copper/ platinum-group-element, 1.3 km east of the Getty zone. Sylvie comprises disseminated sulphides hosted by pyroxenite exposed over 150 metres along strike with a width of up to 40 metres. Grab samples returned up to 0.41% copper, 0.28% nickel and 0.44 gram platinum, plus 1.01 grams palladium. Four shallow diamond drill holes tested the Sylvie zone over some 180 metres along strike. Holes 26-29 intersected disseminated sulphide mineralization in pyroxenite over widths of 10-24 metres. One intercept graded 1.04% nickel, 0.66% copper, and 2.65 grams platinum plus palladium over 15.5 metres.

Apart from the deal with Goldbrook, Anglo has staked a large chunk of ground in the northern portion of the Raglan belt.