1/9/2012 7:06:00 AM - News Release
Mr. Michael Willett reports
TAMERLANE OPTIONS INDIAN MOUNTAIN LAKE VOLCANOGENIC MASSIVE SULPHIDE BELT
Tamerlane Ventures Inc. has entered into an option agreement with Panarc Resources Ltd. ("Panarc") for the acquisition of the Indian Mountain Lake property located 10 km from McLeod Bay at the East Arm of Great Slave Lake in the Northwest Territories, Canada. The property consists of 8 claims comprising approximately 15,562 acres.
Tamerlane has the right to earn up to 100% interest in the Indian Mountain Lake property by spending a total of $4 million in exploration on the project, paying $2.106 million and issuing 900,000 shares to Panarc over a 5 year period. An initial $106,000 payment and issuance of 100,000 shares to Panarc allows Tamerlane the first year to evaluate the property before any other payments are required.
After the Company has spent a total of $2 million on an exploration work program, paid $500,000 to Panarc and issued 500,000 shares to Panarc, Tamerlane will have earned a 49% interest in the project. After all payments are made to Panarc and Tamerlane has earned 100%, Panarc will retain a 2.25% NSR (Net Smelter Return) royalty on the property. Tamerlane may buy back 1% of the NSR for $2.0 million, one-half of which amount shall constitute a credit towards future royalties payable.
Signing of the definitive agreement is subject to fulfillment of a number of conditions, including TSX Venture Exchange approval, board approvals of both parties and secured creditor approvals, where required.
Exploration History
Massive sulphide mineralization was discovered at the Indian Mountain Lake property in the BB Lake area in 1948. The property is accessible by float plane and can be readily accessed by winter road or by barge via the Great Slave Lake. Hollinger Gold Mines drilled the BB Lake deposit and calculated a non-compliant NI 43-101 historical resource(i) of 924,000 tons at 10.3% Zn, 0.85% Pb and 3.45 opt Ag in 1952.
Indian Mountain Minerals acquired the property in 1965, continued with drilling and geophysical surveys and staking, and leased the property 1974. The Kennedy Lake and Kennedy Lake West zones were discovered and drilled during this period and non-compliant NI 43-101 historical resources(i) of 43,000 tons at 7.3% Zn, 1.1% Pb and 4.0 opt Ag for Kennedy Lake, and 612,000 tons of 1.12% Cu for Kennedy Lake West were calculated.
The BB Lake deposit was optioned to EGO Resources in 1979 and extensive exploration work was conducted on the property including 10,600 meters of diamond drilling. As a result of this drilling, a new global non-compliant NI 43-101 historic resource(i) was calculated on the BB Lake Property of approximately 3 million tons at 10% combined zinc and lead, 4 opt silver and 0.02 opt gold.
Synergies with Pine Point
Based on the historical work, there are 3 discovered deposits and another 11 prospective showings on the Indian Mountain Lake property position. The BB Lake, Kennedy Lake and the Kennedy Lake West deposits (all part of the same mineralized structure) have non-compliant NI 43-101 historical resources.(i) The BB Lake property is open at depth with the deepest hole drilled to date intersecting 23 meters of 16.7% zinc and 5 opt Ag at a depth of 335 meters with a true width of 15 meters, dipping 65 degrees. The deposit has been compared to the base metal deposits in the Matagami area of Northern Quebec. The property hosts excellent exploration potential as it is open along strike.
The property is located within 10 km of a dock at the east arm of Great Slave Lake. Tamerlane's interest in this exciting project stems from the synergies it creates with the Company's existing Pine Point project, also on Great Slave Lake. Potential resources could be mined at the BB Lake deposit, dense media concentrated on site, and an intermediate concentrate transported to the planned Pine Point processing facility. The addition of the potential resources, plus the added silver and gold credits make this land position an attractive addition to the Pine Point project and gives the Company precious metals exposure.
(i)Historical resources referred to above are not in accordance with current Ni 43-101 standards and the company is not treating them as current mineral resources. Historical mineral estimates should not be relied upon and a qualified person has not done sufficient work to date to classify the historic estimates as current mineral resources.
Mike Willett, CEO of Tamerlane, commented, "The optioning of this deposit is a strategic step in building a mid-tier mining company. When Pine Point is up and running, we will have the infrastructure and technical staff to fully exploit this nearby land position, and process any materials produced there at Pine Point's planned mill facility."
"Essentially this is a whole district scale property covering an accessible and highly prospective greenstone belt. It has the same attributes as other well-known prolific greenstone belts in Canada. Even though this greenstone belt has been drilled to the extent that deposits have been found, it remains essentially unexplored and can provide the Company with exceptional exploration upside, for both base and precious metals, in the years to come."
We seek Safe Harbor.