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Why Lynn Gabbros ?
Historically, Lynn Lake is the third largest nickel producing region in Canada .
Sherritt Gordon Mines Ltd. mined the Lynn Lake nickel-copper deposits from
1953-1976. These mined deposits were discovered in two mafic-ultramafic
intrusive bodies, known as the Main and the EL gabbroic plugs.
The Main and EL
gabbroic plugs produced 20,151,146 tonnes of ore at an average grade of 1.023
per cent nickel and 0.535 per cent copper from two mines over the 24-year
period. The “EL” (U) ore body produced 1 million tonnes at a grade of 3.25%
nickel and 1% copper. |
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VMS Ventures Inc.'s five optioned claim blocks cover the known extent of five separate
mafic-ultramafic bodies which have noted similarities to the two mined nickel
producing intrusions. The geometry, styles of mineralization and other important
geologic features of the mined deposits, are well documented. This background
information offers an advanced footing from which to explore for the same styles
of Nickel-Copper mineralization mined in those two intrusions. Independent
Nickel (INI-TSX.V) is now actively exploring in and around the Lynn Lake mining
camp and their recent successes should bring additional attention to our
efforts.
The Lynn Gabbros project is within three kilometers
of roads giving good access to the infrastructure provided by the mining
community of Lynn Lake, Manitoba, which is approximately 300 kilometers NW of
the city of Thompson, Manitoba. Thompson is the location of a fully integrated
nickel mining, milling and smelting complex operated by INCO.
Exploration History
On June 15, 2005, the Company signed an option joint
venture agreement with Lac des Iles Mines Ltd., a wholly owned subsidiary of
North American Palladium Ltd, which was announced July 13, 2005. Under the terms
outlined in the option JV, Rare Earth Metals granted LDI the exclusive
option to earn up to 65 per cent of VMS's interest in the property. The terms of
the option required LDI to complete a total of $1.4-million in exploration
activity and make payments of $550,000 over a four-year period to earn 50 per
cent. A further 15 per cent may be earned following completion of an industry
standard feasibility study.
North American Palladium initiated exploration of the property in July, 2005
with a detailed airborne survey flown over the properties. Airborne flight lines
totaling 3100 kilometers were completed. The survey was performed on a tight
60-metre line spacing and flown in two separate directions roughly north-south
and east-west. The geophysical data will be used to identify prospective
structures and host geology for nickel-copper mineralization, within the gabbro
bodies, which underlie the property. The survey was done by Terraquest Ltd., and
is designed to provide high resolution Mag and VLF-EM data of the properties.
On May 12th, 2006 North American Palladium announced that due to a decision to concentrate
solely on its more advanced-stage projects, it has elected not to renew its option to earn a 50-per-cent
interest in the Lynn Lake Gabbros property, beyond May 30, 2006.
The Company conducted a 2-hole drill program on one
of the gabbro plugs in late March/ April 2007 to test previously known
electromagnetic conductors. No significant metals were intersected. In late
April the Company conducted a VTEM survey of the gabbro plugs. This survey
identified a number of strong electromagnetic anomalies that warrant follow-up
drilling.
The Future
The Company is planning to conduct follow-up
exploration on the VTEM targets identified in April 2007. This follow up work
will consist of geochemical sampling of soils above the anomalies and exploring
for elevated levels of pathfinder metals as well as nickel and copper. Drill
testing of targets having coincident geophysical and geochemical signatures
would be the next exploration activity. The company will also consider finding a
new joint venture partner to explore this prospective Nickel property package.
Value
Proposition
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Geological Setting: |
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Lynn Lake, Manitoba, Nickel Belt;
Five Gabbro Plugs. |
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| Nickel
Target: |
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5,000,000 Tonnes of 1.0%
Nickel with Copper, Cobalt and Platinum Group Element credits (PGE).
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Deposit Models: |
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The Lynn Lake Mine:
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20,000,000 Tonnes: 1.0% Nickel and 0.5% Copper plus Cobalt. |
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EL” (U) Plug, : |
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1,000,000 Tonnes, 3.25% Nickel
and 1% copper mined in nearby plug as part of the Lynn Lake mine complex.
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Namew Mine : |
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2,400,000 Tonnes. 2.4% Nickel
and 0.9% Copper. |
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| Value
Proposition: |
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5,000,000 tonnes
grading 1%
Nickel, approximately 20 lbs/tonne, x $22.00/lb = US$440.US per tonne plus 0.5%
copper x $3.50 per pound = $35.US per tonne
Total
contained metal value equals $2.375 billion USD |
Disclaimer: This value will,
obviously, be discounted significantly, as it represents the value of metal
prior to all the costs associated with mining, but we provide it to give
readers some context;
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