Snowfield options Poplar's Nottaway project iSnowfield options Poplar's Nottaway project in Quebec
Snowfield Development Corp SNO
Shares issued 23,464,758 Jul 25 2003 close $ 0.23
Monday July 28 2003 News Release
Also Poplar Resources Ltd (C-PPX) News Release
Mr. Robert Paterson reports
QUEBEC DIAMOND PROJECTS NEW QUEBEC JOINT VENTURE - POPLAR RESOURCES LTD EXPLORATION UPDATE
Snowfield Development has executed an option agreement with Poplar Resources with respect to Poplar's Nottaway project which comprises about 343 mineral claims (38,800 acres). The Nottaway project area is located just to the north of Snowfield's existing Nottaway South project. This joint venture will significantly expand Snowfield's current land position in the greater Nottaway area. When combined with Snowfield's 100-per-cent interest in its Nottaway South project currently totalling 162 claims (21,928 acres), Snowfield will have interests in 505 claims covering 60,728 acres. Both areas are located in the James Bay Lowlands, immediately south of James Bay and approximately 120 kilometres north-northwest from Matagami in the province of Quebec. The claims are on the Superior craton close to the Ontario border.
Under the terms of this agreement Snowfield will earn a 60-per-cent interest in all of Poplar's Nottaway claims by incurring exploration expenditures in the amount of $1-million over the next three years. This option agreement does not entail the issuance of stock or payment of cash by Snowfield to Poplar. Snowfield will be the operator of the joint venture. Poplar has assigned to Caledonia Mining Corporation a 2-per-cent gross revenue royalty on any sale of diamonds recovered from any kimberlite pipe or intrusive body, and a 2-per-cent net smelter royalty on all base or precious metals mined or recovered within the Nottaway area. Poplar has the right to repurchase this royalty from Caledonia. This royalty obligation to Caledonia will be shared by Snowfield and Poplar on a 60:40 basis once Snowfield has acquired its 60-per-cent interest. The first detailed geophysical survey flown in the Nottaway area was carried out by Terraquest in 1996 for Caledonia. As a result of this survey over 50 high-priority targets were identified. Poplar currently holds a 100-per-cent interest in about 343 claims, covering 75 geophysical targets. The total area currently under licence to Poplar is 38,800 acres or 15,500 hectares
Poplar has completed a number of till and stream sampling programs down-ice from some of these geophysical targets. The results of this work indicate that some of these anomalies appear to be shedding kimberlite indicator minerals (KIM) into the tills and stream sediments. These indicator minerals include chrome-pyropes, chrome diopsides, ilmenites and chromites. Indicator mineral identification was carried out by Overburden Drilling Management (ODM) and Saskatchewan Research Council (SRC). Electron microprobe work was carried out on selected grains. (All electron microprobe work was carried out by R.L. Barnett, Barnett Geological Consulting Inc., London, Ont.) Chrome-pyropes recovered plot in the G-9 field (Gurney, 1984).
Snowfield regards these Nottaway targets as "drill-ready" and it is Snowfield's intention to drill these targets during the winter of 2003/2004.
Lac Bienville area
An agreement between Snowfield and Consolidated PPM Development Corp. was entered into on May 6, 2003 (NR 03-19). Under the terms of this agreement, Consolidated PPM will incur exploration expenditures to the sum of $75,000 on a stage I program of exploration and development on the property before Sept. 30, 2003, and undertake the further expenditure of approximately $125,000 on a stage II program of exploration and development work on the property on or before Sept. 30, 2004. It is currently planned to begin an aeromagnetic survey in the area followed by a regional till/stream sampling program and some till sampling down ice of selected geophysical targets. Snowfield is the operator of this joint venture.
Lac Vernon
Snowfield holds 102 mining claims in the Lac Vernon area. The claims are in the northwest-central area of Quebec, 330 kilometres north of the Lac Bienville claim block. The Lac Vernon claims were staked to cover approximately 50 targets identified from a recent high-resolution aeromagnetic survey carried out by the Quebec government. Snowfield considers these claims to be highly prospective for diamond exploration. It is Snowfield's intention to seek joint venture participation in this project.