Noront Announces Historic Chromite Resource Estimate for Blackbird Deposit at McFaulds' Lake
By Noront Resources Ltd., PRNEWednesday, December 9, 2009
TORONTO, December 10 -
Symbol: NOT:TSX-V
Shares Outstanding: 163,631,957
Fully Diluted: 173,461,957
Noront Resources Ltd. ("Noront" or the "Company") (TSX Venture: NOT) is
pleased to present an initial resource estimate for a portion of its
Blackbird chromite deposit, McFaulds Lake Project.
Highlights:
- Measured and indicated resource of 8.9 million tonnes sufficient for
a 15 year project producing 200,000 - 225,000 tonnes of ferrochrome
annually and a further inferred resource of 6.0 million tonnes with
the potential to add an additional 10 years to the project.
Mineralization remains open at depth;
- Canada's first independent NI-43-101 resource estimate for chromite;
- Estimate based on 154 drill holes (52,375 metres);
- The resource is a classic stratiform deposit with original chromite
layers broken up into segments 300 to 400 metres in length;
- The chromite layers are sub-vertical and extend from surface to
beyond 300 metres;
- There are four massive segments, grading approximately 35% Cr(2)O(3)
and ranging from 7 to 18 metres in average true thickness;
- There are two intercalated lenses, grading approximately 25 to
28% Cr(2)O(3) and ranging in thickness from 150 to 200 metres;
- All chromite layers are open at depth and additional gravity targets
that have potential to expand the resource have not been drill
tested to date; and
- Deposit geometry is very well suited for a low impact, underground
mine with a limited environmental footprint.
During the fourth quarter of 2008, Noront's management committed the
funding necessary to identify a chromite resource at Blackbird. Management's
objective was to define a Measured and Indicated chromite resource sufficient
to support a 200,000 to 225,000 tonne per annum ferrochrome furnace for 15
years. At then current prices, Noront management estimated that a project of
this size would generate approximately $500 million in revenue per year.
By the second quarter of 2009, Noront had completed 154 drill holes
totaling 52,375 metres on the Blackbird chromite project. Drilling was
completed on sections spaced at 50 metres. Noront contracted Micon
International Ltd. ("Micon"), one of only a few North American firms with the
requisite expertise and experience to estimate chromite resources, to
complete an NI 43-101 resource estimate and Technical Report.
Micon estimated the massive and intercalated resources independently. The
layers of massive chromite lenses host a Measured and Indicated resource of
7.6 million tonnes grading 36% Cr(2)O(3) with a chrome to iron ratio of 1.94
Cr:Fe. A further 3.5 million tonnes (at) 35% Cr(2)O(3) and 1.95 Cr:Fe are
classified as Inferred resources. The currently identified Measured and
Indicated resource is more than adequate to supply a 200,000 to 225,000 tonne
per annum ferrochrome facility for at least 15 years, the design goal of the
drill program approved by Noront in 2008. Infill drilling of the identified
Inferred resource has the potential to add a further 5-10 years of production
and, more importantly, the deposit remains open at depth. The intercalated
resource can readily be upgraded to a high quality concentrate, offering an
additional 5-10 years of mine life.
Noront's President and CEO, Wes Hanson, states: "The Blackbird chromites
are analogous and typical of Kemi-type deposits, characterized by lensoid
bodies of layered chromite several tens of metres thick and several hundreds
of metres in size. We are very pleased to deliver Canada's first 43-101
resource estimate for the Blackbird chromite deposits and I am grateful that
our Board of Directors had the foresight to approve the exploration
expenditures that led to the completion of this estimate. This estimate
represents a starting point for Noront's chromite resource, as there is
excellent potential to increase the resource in the future. Once again,
Noront has delivered value to our shareholders by being proactive and leading
the charge in the Ring of Fire. Wes Hanson further stated; "This near surface
resource is more than adequate to support a 200,000 to 225,000 tonne per
annum ferrochrome furnace for 15 years with potential for an additional 10
years based on the inferred resources; which actually exceeds the objective
mandated by our Board late last year. The deposits remain open at depth but
our focus going forward will be to ensure sufficient metallurgical testing is
completed and all reasonable design alternatives are considered during our
preliminary engineering studies. We are currently in the process of
evaluating alternatives for developing our many mineral deposits in the Ring
of Fire. The close proximity of the Eagle's Nest
nickel-copper-platinum-palladium deposit, the Blackbird chromite deposit, the
Eagle Two nickel-copper deposit and the Triple J gold deposit now being
referred to as the "Eagle's Nest - Blackbird Complex") provides a unique
opportunity whereby all four deposits can be potentially accessed and
developed from a centrally located shaft. This central infrastructure will
radically reduce the environmental footprint of the project area and will
eliminate the operational and geotechnical uncertainty and capital cost
associated with open-pit dewatering dikes. An underground mine at this
location provides a stable, climate controlled work area that can easily be
operated year-round. Our work is presently conceptual in nature but we, as a
management team, believe that there is excellent potential in this
centralized approach to reduce operating and capital costs and to minimize
our environmental footprint."
Jeremy Niemi, P.Geo., Noront's Vice President Geology also notes:
"Opportunities to increase the chromite resource can be realized through
additional drilling, both at depth and with targeted infill drilling.
Incomplete sampling has resulted in a general understatement of grade that we
can address in the future through re-sampling programs. Combined with yet
untested geophysical targets in the vicinity of the deposits, there are
excellent opportunities for resource expansion."
Micon is currently in the process of completing the NI 43-101 Technical
Report supporting the estimate and this Technical Report will be filed with
SEDAR and made available on the Company's website within 45 days of this
press release. The table following this press release summarizes Micon's
resource estimate.
Preparation of this press release has been supervised by Noront's senior
management including Jeremy Niemi, P.Geo. Vice President, Geology, who is a
Qualified Person under Canadian Securities Administrators guidelines. The
contents of this press release have been read and approved by Mr. R. Gowans,
P.Eng, Micon International Ltd., who is a Qualified Person under Canadian
Securities Administrators guidelines.
For further information on the McFaulds Lake Property, please refer to
the Company's NI 43-101 - Standards of Disclosure for Mineral Projects
compliant technical report "Technical Report and Preliminary Economic
Assessment on the Eagle One Deposit, Double Eagle Property, McFaulds Lake
Area, James Bay Lowlands, Ontario" (effective: October 20, 2008) available on
the Company's website and at www.sedar.com
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BLACKBIRD MINERAL RESOURCE SUMMARY REPORT BY CATEGORY
-------------------------------------------------------------------------
MASSIVE CHROMITE RESOURCES
-------------------------------------------------------------------------
AVG Cr:Fe
DEPOSIT ZONE TONNES Cr(2)0(3)% Ratio
-------------------------------------------------------------------------
BLACKBIRD 2 BB 2-1 1,635,000 38.42 1.97
Measured BB 2-2 881,000 35.35 1.95
BB 2-4 1,675,000 35.36 1.90
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BLACKBIRD 1 BB 1 1,895,000 36.56 1.97
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BLACKBIRD 2 BB 2-1 816,000 36.75 1.94
Indicated BB 2-2 438,000 32.91 1.88
BB 2-4 223,000 35.76 1.85
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Total Measured
and Indicated 7,562,000 36.34 1.94
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BLACKBIRD 2 BB 2-1 2,142,000 36.07 1.95
Inferred BB 2-2 624,000 24.83 1.65
BB 2-4 772,000 40.26 2.19
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Total Inferred 3,488,000 34.93 1.95
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INTERCALATED CHROMITE RESOURCES (FRAGMENTED ZONES)
-------------------------------------------------------------------------
AVG Cr:Fe
DEPOSIT ZONE TONNES Cr(2)0(3)% Ratio
-------------------------------------------------------------------------
Measured BLACKBIRD 2 BB 2-3a(301) 450,000 20.35 1.39
BB 2-3b(302) 537,000 29.63 1.79
-------------------------------------------------------------------------
Indicated BLACKBIRD 2 BB 2-3a(301) 245,000 25.42 1.55
BB 2-3b(302) 61,000 28.31 1.67
-------------------------------------------------------------------------
Total Measured
and Indicated 1,293,000 25.54 1.60
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BLACKBIRD 2 BB 2-3a(301) 121,000 22.38 1.37
Inferred BB 2-3b(302) 185,000 30.51 1.84
BB 2-Lenses(50) 2,280,000 31.94 1.78
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Total Inferred 2,586,000 31.39 1.77
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Note: MICON International Limited, ("Micon") is an independent consulting
firm commissioned by Noront Resources Ltd. The Micon estimate was prepared
under the supervision of Mr Richard Gowans, P. Eng and Mr. Charley Murahwi,
M.Sc., P.Geo, MAusIMM who are "Qualified Persons" for the purposes of
NI43-101 in Canada. The estimate has been completed to NI43-101 definitions
and standards and were calculated using the Canadian Institute of Mining,
Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and
Reserves, Definitions and Guidelines prepared by the CIM Standing Committee
on Reserve Definitions and adopted by CIM Council December 11, 2005. The
estimate capped high values for chromite at 43%. The estimate was completed
using a cutoff of 30% Cr(2)O(3) for the massive chromite and 0% Cr(2)O(3) for
the intercalated chromite. All sample preparation and analyses were completed
at Activation Laboratory, ISO 17025 accredited and independent of Noront
Resources and Micon. Micon inspected the facilities in Thunder Bay on July 9
and 10, 2009. Micon observed that the sample preparation was carried out to
the highest industry standards. All sample batches were submitted to the
laboratory with suitable reference material, blanks and duplicates inserted
into the sample batches by Noront at the Esker Camp prior to shipment. Micon
has reviewed the QA/QC data and determined that the analyses have been
completed to acceptable standards. Micon has completed a site visit from July
6 through 9, 2009. Micon estimated the mineral resource from a block model
based on geological interpretation. Drill data (analytical and geological)
was interpreted on section to develop polygons representing the chromite
deposits. These polygons were used to create solids of the chromite deposits.
The solids were used to isolate the analytical data internal and external to
the solids. A total of five solids representing the known chromite layers
discovered to date were generated. The sample data internal and external to
each solid was evaluated statistically to determine appropriate composite
intervals and to establish the density relative to the chromite content. The
statistical analyses determined a grade cap of 43% was appropriate for
estimation purposes. This level of grade cap affects approximately 400
samples. Statistical analysis determined a composite interval of 1.5 metres
was appropriate. Geostatistical analysis was conducted to determine the
optimum drill spacing for resources categorization. On this basis the search
ellipse for grade interpolation was defined. A block model was generated to
allow grade estimation into the individual model cells. The inverse distance
cubed method was utilized for better selectivity and the resource generated
was validated using ordinary Kriging Density was assigned based on the
chromite content of each sample composite based on a sliding scale with 0%
chromite assigned a density of 2.8 t/m3 and 30%+ chromite assigned a density
of 3.8 t/m3. Each 5-10% interval of chromite was assigned a unique density in
the model. The classification of Measured, Indicated and Inferred was
determined statistically based on the variography. The model was evaluated,
tested and verified for accuracy and a block tabulation at various cutoff
grades for chromite was utilized to estimate the global resource.
Mineral resources, which are not mineral reserves, do not have
demonstrated economic viability. The estimate of mineral resources may also
be materially affected by environmental, permitting, legal, title, taxation,
socio-political, marketing or other relevant issues. There is no guarantee
that Noront will be successful in obtaining any or all of the requisite
consents, permits or approvals, regulatory or otherwise for the project or
that the project will be placed into production. Micon is currently in the
process of completing the NI 43-101 Technical Report supporting the estimate
and the Technical Report will be filed within 45 days of this press release
with SEDAR at www.sedar.com and made available on the Company's
website at www.norontresources.com.
Freewest Offer
————–
Under Noront's current Offer, for each seven (7) Freewest shares held,
Noront will issue two (2) freely tradeable Noront shares and one (1)
five-year (5) purchase warrant with a strike price of C$4.00. The implied
value at the time of the offer was estimated to be C$0.86 per Freewest share
and is currently C$0.95 per Freewest share.
Noront's Offer expires on December 11, 2009. All Freewest shareholders
are urged to tender their shares to the Noront bid, the only bid that will
provide all Freewest Shareholders with the opportunity to participate in the
upside of the Ring of Fire
For more information on the Freewest Offer, please visit Noront's website
at www.norontresources.com or contact Noront's Investor Relations
Department at +1-416-367-1444. ext 126
To tender your Freewest shares, please contact;
Laurel Hill at Laurel Hill Advisory Group
North American Toll Free Phone: +1-888-882-6742
Email: assistance@laurelhillag.com
Outside North America, Banks and Brokers Call Collect: +1-416-637-4661
About Noront:
Noront Resources Ltd. is focused on its significant and multiple,
high-grade nickel-copper-platinum-palladium, chromite and vanadium
discoveries in an area known as the "Ring of Fire", an emerging multi-metals
district located in the James Bay Lowlands of Ontario, Canada. Noront is the
dominant land holder at the Ring of Fire and continues to delineate and prove
up its discoveries with NI 43-101 technical and economic reports and an
aggressive and well financed drill plan for the remainder of 2009 and 2010.
All material information on Noront can be found on the Company's website at
www.norontresources.com or at SEDAR at www.sedar.com
Wesley (Wes) Hanson
Chief Executive Officer
FORWARD LOOKING STATEMENTS
This release contains "forward-looking statements" within the meaning of
applicable Canadian securities legislation, including predictions,
projections and forecasts. Forward-looking statements include, but are not
limited to, statements that address activities, events or developments that
the Company expects or anticipates will or may occur in the future, including
such things as future business strategy, competitive strengths, goals,
expansion, growth of the Company's businesses, operations, plans and with
respect to exploration results, the timing and success of exploration
activities generally, permitting time lines, government regulation of
exploration and mining operations, environmental risks, title disputes or
claims, limitations on insurance coverage, timing and possible outcome of any
pending litigation and timing and results of future resource estimates or
future economic studies.
Often, but not always, forward-looking statements can be identified by
the use of words such as "plans", "planning", "planned", "expects" or
"looking forward", "does not expect", "continues", "scheduled", "estimates",
"forecasts", "intends", "potential", "anticipates", "does not anticipate", or
"belief", or describes a "goal", or variation of such words and phrases or
state that certain actions, events or results "may", "could", "would",
"might" or "will" be taken, occur or be achieved.
Forward-looking statements are based on a number of material factors and
assumptions, including, the result of drilling and exploration activities,
that contracted parties provide goods and/or services on the agreed
timeframes, that equipment necessary for exploration is available as
scheduled and does not incur unforeseen break downs, that no labour shortages
or delays are incurred, that plant and equipment function as specified, that
no unusual geological or technical problems occur, and that laboratory and
other related services are available and perform as contracted.
Forward-looking statements involve known and unknown risks, future events,
conditions, uncertainties and other factors which may cause the actual
results, performance or achievements to be materially different from any
future results, prediction, projection, forecast, performance or achievements
expressed or implied by the forward-looking statements. Such factors include,
among others, the interpretation and actual results of current exploration
activities; changes in project parameters as plans continue to be refined;
future prices of gold; possible variations in grade or recovery rates;
failure of equipment or processes to operate as anticipated; the failure of
contracted parties to perform; labour disputes and other risks of the mining
industry; delays in obtaining governmental approvals or financing or in the
completion of exploration, as well as those factors disclosed in the
company's publicly filed documents. Although Noront has attempted to identify
important factors that could cause actual actions, events or results to
differ materially from those described in forward-looking statements, there
may be other factors that cause actions, events or results not to be as
anticipated, estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on
forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
For further information: Joanne Jobin, Vice President Corporate
Communications at +1-416-367-1444 ext 126, or visit Noront's website at:
www.norontresources.com
For further information: Joanne Jobin, Vice President Corporate Communications at +1-416-367-1444 ext 126, or visit Noront's website at: www.norontresources.com
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