Vancouver — The geology around Lake Nipigon in northern Ontario is quietly attracting the attention of major and junior mining companies searching for platinum group elements.
The latest entry into the fray is Teck (TEK-T). The diversified miner inked a deal with Canadian Golden Dragon Resources (CGG-V) and East West Resources (EWR-V) to earn a 51% stake in eight properties in the Thunder Bay mining district.
Teck can earn its stake in the individual properties by spending from $800,000 to $2 million, depending on the size of the claims. It can take a 51% interest in all the properties by spending $8.8 million over a five-year period. The company has also agreed to pay $30,000 to each of the juniors once a participation agreement is signed and has subscribed for a $250,000 flow-through financing for each company.
The major can boost its stake to 60% by completing a feasibility study. It can acquire up to 70% by arranging production financing for all three parties.
A number of geologists compare the Nipigon plate area to the prolific Norilsk mine in Siberia. In its day, Norilsk was a huge find, cranking out some 2.5 million oz. palladium and 800,000 oz. platinum per year. Output is falling as the operation moves from mining massive ore to mining disseminated and copper-rich ore grades. The possibility of a similar discovery in Canada is attracting attention.
The geological setting of the Nipigon area is marked by a deep-seated regional fault structure, where ultramafic intrusions from deep mantle sources are found in contact with abundant sulphur source rocks. These are favourable locations for the hosting of continental tholeiite enriched with platinum group elements.
The area also has impressive platinum group elements and copper lake sediment geochemical anomalies. A recent article says these anomalies are comparable to, and may be better than, the anomalies that lie around the Lac Des Isles deposit.
North American Platinum’s (PDL-T) open-pit Lac des Iles Mine lies midway between Lake Nipigon and Thunder Bay.
Be the first to comment on "Teck enters hunt near Thunder Bay"