Texmont Leases and Texmont Claim
The Texmont Property sits on the boundary of Bartlett and Geikie Townships in the Porcupine Mining Division of Ontario, Canada. The approximate center of the Property is at latitude ~ 48° 09’ 55” N and longitude ~ 81° 12’ 15” W (NAD 83, UTM Zone 17N, ~ 484820m E, ~5334690m N, and NTS 42A/03).
The Property comprises fourteen (14) contiguous mining leases, the “Texmont Leases,” that are subject to an agreement between Fletcher and New Texmont Explorations Ltd. (the “Purchase Agreement” discussed in Item 3.2 herein) and one (1) mining claim, the “Texmont Claim,” that is 100% owned by Fletcher with areas, due dates, mining and surface rights.
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Texmont Historic Reports – Leigh 1971 Report
The most recent drill-indicated “reserve estimates” (filed and stamped by the Ontario Securities Commission on February 29, 1972) are those of Leigh with a built-in 10% dilution factor assuming that the zones were amenable to longhole stoping. Leigh’s estimates of “proven” and “drill-indicated” ore reserves at a cut-off grade of 0.7% Ni are shown in Table 7 below.
Leigh’s 1971 Calculations - filed with the Ontario Securities Commission.
|
Name of Ore Shoot
|
Tonnage
|
Grade, %Ni
|
“A” Zone - “Proven” (30 –740 ft)
- “Drill-indicated” (740 –1,600 ft) |
730,000
860,000 |
0.96
(as above) |
| South Zone – “Drill-indicated” (0 – 1,600 ft) |
1,600,000 |
0.89 |
| Total |
3,190,000 |
0.92 |
Summary of Exploration Work at former Texmont Mine
|
Year(s)
|
Program/Work
|
Comments
|
| 1949-1950 |
Geophysics and prospecting |
Airborne magnetic survey |
| 1951 |
Discovery of nickel sulphide in outcrop |
Small trench remains can be seen in outcrop south of the head-frame |
| 1951-1955 |
Surface Drilling |
23 surface drill hole program totalling 6,231 ft. |
| 1957-1959 |
Surface Drilling |
37 surface drill hole program totalling 27,044 ft. |
| 1959 |
A three compartment shaft |
To a vertical depth of 790 ft with levels established at 150 ft (1st level), 300 ft (2nd level), 450 ft (3rd level), 600 ft (4th level) and 742 ft (5th level). |
| 1959-1960 |
Underground Development |
Completed 1,550 ft of drifting on 3rd level, 1,450 ft on 2nd level and 250 ft of raising on 5th level. |
| 1961 |
Underground Drilling |
19,690 ft of underground drilling in 165 holes and an additional 6,387 ft of surface drilling |
| 1965-1966 |
Surface Drilling |
Completed 42 surface auger drill holes for till geochemistry. |
| 1971 |
Evaluation and “Resource Calculations” |
e.g., Leigh, 3.19 million tons @ 0.92% nickel |
| July 1971 |
Start of Production |
Milling at a rated capacity of 500 tons per day |
| December 1972 |
Ceased Operations |
“Oil Crisis” and fuel oil surtax |
Textmont - Drill Intersections:
Longitudinal Section former Texmont Mine with drill intersections (“Ore lenses” by Texmont Mines Ltd; calculation blocks made by INCO Ltd.) The INCO longitudinal section is the only one of this type available. Leigh’s 1972 plan and detailed longitudinal section data are lost.
Location of recent test drilling near former Texmont workings, although three holes entered openings, a highly significant envelope of disseminated mineralization was encountered in areas unmined. Longitudinal section used is a composite of surviving information.
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Click here to enlarge
Click here to download a copy of the Texmont model (and the program to view it)
Texmont Property
Acquisition of the Texmont Leases : Pursuant to an agreement dated March 15, 2006 between the Corporation and New Texmont Explorations Ltd. (the “Purchase Agreement”), the Corporation purchased the leasehold interest of New Texmont Explorations Ltd. in 14 contiguous mining leases located in Bartlett and Geikie Townships, Porcupine Mining Division, Ontario (the “Texmont Leases”), comprising the larger part of the Texmont Property.
Underground workings and the remains of surface facilities, the former “Texmont Mine,” with currently non-compliant NI43-101 nickel sulphide “resources” occur in close proximity to a former mineshaft on the Texmont Leases. All of the “resource” calculations listed below give broadly similar results, but are non-compliant using modern CIM Definition Standards on Mineral Resources and Mineral Reserves adopted by the CIM Council (or as amended). In a G.L. Colgrove memorandum supplied by INCO Ltd. (now CVRD-INCO, with permission, dated February 26, 1966), and based on data available around the commencement of mining, calculations by H.A. Pearson and Colgrove gave 2,990,000 tons grading 0.94% Ni in the categories “firm,” “probable” and “inferred.” In a J.E. Mullock memorandum supplied by INCO Ltd. (with permission, dated April 10, 1967) a calculated 3,139,700 tons grading 0.92% Ni was determined using similar categories. Mullock’s longitudinal section and his detailed calculations are the only historical data of this type that have survived (in the INCO filing system).
In a report dated May 21, 1970, H.A. Pearson P. Eng., then vice-president exploration for Texmont Mines Ltd., outlined 3,800,000 tons of “resource” at a grade of 1% nickel (after dilution) to a depth of 1,600 feet – calculations based on systematic channel sampling of underground workings to correct a statistical under-reported grade in diamond drilling. On February 29, 1972, Orval E. Leigh P.Eng of Derry, Michener and Booth filed a report with the Ontario Securities Commission outlining a total of 3,190,000 tons of “proven” and “drill-indicated” “ore reserves” at a grade of 0.92% Ni. None of the plans, sections or detailed block calculations used for these reports has survived.
In 2004, Fletcher completed a number of preliminary scoping studies and sensitivity analyses to determine hypothetical mine start-up costs, including estimates for systematic drilling to create categories as defined by NI43-101 using modern CIM Definitions. A preliminary drilling budget of $3,500,000 was estimated to outline the extent of the mineralized envelope. Detailed drilling budgets await the input of previous drill logs into a comprehensive computer ore model for the 3D location of intersections. It is important to note that whole sets of previous drill logs are missing and it is uncertain whether all sulphide-mineralized sections were assayed by former owners of the Property - no written drill log comparison can be made with many of the drill holes and assays seen in the available plans and sections.
The Texmont Property is embedded in the “Timmins nickel camp” with known deposits and mines to the north, NE, south, SE, and NW. Mineralization on the Texmont Property has characteristics similar to “Type II - stratabound internal deposits” (model of Lesher and Keays, 2002). Previous geologists also observed other “Type II” mineralization outside the outlined historic “resources.” A budget totalling $3,500,000 has been prepared to find the extent of the mineralized envelope on the Texmont Property.
There are many news releases on its website. I have included a few of the interesting ones:
Fletcher Nickel Acquires Texmont Mine
16.03.06
Toronto, Canada – Fletcher Nickel Inc., a closely-held issuer, yesterday completed its purchase of the Texmont Mine from New Texmont Explorations Ltd. and Sheridan Geophysics Limited. The underground nickel mine, 42 km. south of Timmins on the west bank of the Redstone River, was operated by Sheridan Geophysics under a lease from New Texmont Explorations Ltd. until December 1972. At that time the mine, flotation mill and hydrometallurgical recovery plant were temporarily shut down and put on a care-and-maintenance basis. A combination of historically low nickel prices, coupled with a newly-imposed surtax on the diesel fuel used to generate electricity for the facilities, rendered the operation uneconomic. The 3,190,000 ton deposit has an average grade of 0.91% nickel, as reported in an ore reserve calculation completed by Orville Leigh, P. Eng., of Derry Michener Booth, and filed with the Ontario Securities Commission in 1971.
To complete the transaction Fletcher obtained an assignment and surrender of the Sheridan Geophysics lease interests and paid New Texmont $10 million, of which $1 million was subscribed to Fletcher’s treasury for 1,000,000 common shares and $8 million was subscribed to Fletcher’s treasury for 8,000,000 non-voting redeemable preferred shares yielding a 5% annual dividend, payable quarterly and maturing in eight years. To secure payment of the dividends and redemption of the preferred shares, the Company has issued a debenture in favour of the vendor. The Company has also deposited a re-conveyance of the mineral leases with an escrow agent. Should it elect to abandon the property, the escrow agent may deliver the reconveyance upon receipt of the preferred shares for cancellation. Should the holder of the preferred shares deliver notice that a default in payment of the dividends has not been cured, the escrow agent may release the reconveyance upon receipt of the preferred shares for cancellation.
Fletcher Nickel Inc. now has 9,163,600 common shares outstanding, a $750,000 debenture convertible into 1,500,000 additional shares, 300,000 warrants exercisable at $0.50, 300,000 warrants exercisable at $0.75 and 3,000,000 warrants exercisable at $0.65.
For further information:
|
Douglas M. Flett
President
(416) 708-6180
Fletcher Nickel Reports Texmont Project Status
08.09.09
Toronto, Canada – Fletcher Nickel Inc. (TSX: FL) reports that the compilation of data from its drilling campaign at the Texmont Mine has been concluded and modeled and that initial metallurgical and refining test results have also been received.
Large-tonnage near-surface Nickel resource extends north of Texmont Mine
The geological assessment of the data has determined that a potentially large-tonnage nickel deposit, which may be mineable by open pit, has been indicated. Mineralization extending north of the Texmont Mine has been found to continue for about 800 m along strike, increasing the overall strike length to approximately 1100 m.
“The I.P. and magnetic geophysical interpretations have been highly predictable in directing the drilling of the extension of the nickel mineralization to the north of the historical Texmont deposit” said Vice-President of Exploration Joerg Kleinboeck, the Company’s Qualified Person. “There are substantial targets to the north and south of the Texmont deposit that we have identified from the prospecting, mapping, and geophysical programs completed in 2008 and 2009, that remain to be drill tested. This work is warranted to test the potential for additional nickel sulphide mineralization adjacent and along strike of the Texmont deposit”.
Metallurgical testing indicates good recoveries and concentration
In support of a future PEA, Fletcher Nickel has also initiated metallurgical test work at PRA Laboratories in Richmond, BC. Approximately 60 kg of nine mineral samples were selected from three drill cores obtained during the 2008 drilling program from each of the three geological zones (North, Main and South). Due to the early stages of the exploration program, only one drill-hole sample in each zone was selected for testing recognizing that such sample size may not be truly representative of the zone. The following table shows the origin of each of the nine samples sent for testing:
|
Zone
|
Drill Hole
|
From (m)
|
To (m)
|
Interval (m)
|
Composite
Grade (%Ni)
|
Grade
Category
|
|
|
|
|
|
|
|
|
|
North
|
DDH Tex 08-49
|
158.0
|
166.0
|
8.0
|
0.64
|
High
|
|
|
|
192.0
|
197.0
|
5.0
|
0.47
|
Medium
|
|
|
|
197.0
|
206.0
|
9.0
|
0.23
|
Low
|
|
|
|
|
|
|
|
|
|
Main
|
DDH Tex 08-32
|
350.5
|
360.0
|
10.5
|
2.20
|
High
|
|
|
|
345.0
|
350.5
|
5.5
|
0.63
|
Medium
|
|
|
|
374.0
|
383.0
|
9.0
|
0.30
|
Low
|
|
|
|
|
|
|
|
|
|
South
|
DDH Tex 08-106
|
335.0
|
341.0
|
6.0
|
0.66
|
High
|
|
|
|
297.5
|
305.0
|
7.5
|
0.44
|
Medium
|
|
|
|
267.5
|
276.5
|
9.0
|
0.24
|
Low
|
The laboratory test program used split drill core that was blended into three composite samples, which varied by grade from 0.27% to 0.62% nickel, with similar sulphur values. The primary nickel bearing sulphide mineral was identified as pentlandite, with the major gangue consisting of fine-grained serpentine. The test work consisted of three scoping flotation tests on composited Low Grade (0.27% Ni), Medium Grade ((0.47% Ni) and High Grade (0.62% Ni). The results of the three bulk cleaning tests showed that the material upgraded well improving with the head grade, and producing concentrates in a range of 13% to 21% nickel. The third cleaner concentrate recovered from 38% to 49% Ni, using open cycle procedures, from the 0.27% to 0.62% nickel head grades respectively. This recovery would be expected to increase by the recycling of the stage 2 and 3 cleaner tailings and locked cycle testing would be required to more accurately estimate an operating plant recovery. These concentrates also contained elevated magnesium (primarily as talc), a concern in smelting.
The results are considered encouraging in that nickel concentration ratios of 30:1 to 50:1, were achieved. The nickel concentrate grades after three stages of cleaning ranged from 13% to 21%, with higher concentrate grades corresponding to higher feed grades. Further test work to optimize the flotation procedures has been included in a provisional continuing exploration budget. The potential quantity and grade are conceptual in nature and there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a further mineral resource.
Carbonyl refining test demonstrates concentrate may be refined to ferro-nickel, cobalt
To examine a possible alternative to conventional smelting, the concentrates recovered from the PRA test work underwent a preliminary carbonylization refining test to determine their suitability for the production of high purity ferro-nickel and cobalt powders. Chemical Vapour Metal Refining Limited (CVMR®) of 35 Kenhar Drive, Toronto, www.cvmr.ca, has provided this technology for a carbonyl refinery in China which is now in production. This proprietary refining method utilizes the sulphur in a sulphide nickel concentrate to fuel its roasting which then, after reduction to metal, enables the concentrate’s metals to form carbonyl compounds which may then be precipitated in highly purified concentrations by selective distillation. A bench scale refining test was completed using the concentrates produced from the PRA Laboratories test work and a report submitted by N. Victor Emmanuel, P.Eng., of CVMR, titled: Report #1: Nickel and Iron extraction from ore concentrate, dated August 15th, 2009. One sample of feed material (150 g) was delivered by PRA to CVMR® in June 2009. The first step of the test was to roast the material to remove sulphur and to produce a mixture of metal oxides. Roasting was done at 1050ºC in the static bed and the resulting mixture of metal oxides was reduced at 650ºC with hydrogen followed by carbonylation of the mixture at 600 psi. The report advised as follows:
“CVMR® was asked to demonstrate a possibility of extraction of Nickel, Cobalt and Iron directly from flotation concentrate. Feed material was provided by Fletcher Nickel and consisted approximately 15% of Nickel, 25% of Iron and 0.6% of Cobalt. Targeted metals were successfully extracted from the flotation concentrate with high yields without optimization of extraction parameters. Yields [ ] were 91% for Nickel, 95% for Iron and 78% for Cobalt. Future optimization of parameters should increase yields of Nickel above 95% and cobalt above 85%. Metal carbonyls were decomposed into metal powders. This indicated several product lines that could be used depending on market conditions. Ferronickel powder (3/5 Ni/Fe) could be produced without separation of Iron from Nickel. Alternatively, pure Nickel powder will be considered as a product after separation of Nickel and Iron carbonyls by distillation. A Process Flow Diagram consisting of 3 steps was proposed for the process. The first step is comprised of fluid bed roasting of the flotation concentrate where the produced SO2 will be directed to an acid plant to produce sulphuric acid. Steps 2 and 3 are presented in the Figure 2 as integrated reduction and carbonylation plant. Carbon monoxide and hydrogen will be produced in the gas plant. Extraction of Nickel and Cobalt directly from flotation concentrate using the carbonyl process allows avoiding several steps usually used for production of Nickel. This will minimize CAPEX and OPEX of the plant and will make it possible to build an efficient smaller scale plant to produce 2000-4000 tons per annum.”
Baseline studies completed and site rehabilitation report submitted
The Company has filed a continuing rehabilitation report following its Texmont Mine site reclamation and has also completed all necessary baseline studies for the filing of applications to commence dewatering of the underground mine workings. “The Texmont Mine itself produced at a reported average grade of plus or minus 1% Ni and we have completed some scoping studies which indicate the ore body might be mined at a rate of up to 2000tpd from the existing shaft,” said CEO Frank Smeenk.
Joerg Kleinboeck, Vice President, Exploration, for Fletcher, is the qualified person within the meaning of National Instrument 43-101 that prepared or supervised the preparation of the information that forms the basis of the written disclosure in this news release. Mr. Kleinboeck has verified the data disclose, including sampling, analytical and test data underlying the information contained in this news release.
Forward Looking Information: This news release contains or refers to forward-looking information. All information other than statements of historical fact that address activities, events or developments that Fletcher Nickel believes, expects or anticipates will or may occur in the future are forward-looking statements. Such forward-looking statements contained in this news release include statements regarding potential exploration results and mineralization at Fletcher Nickel's Texmont Mine property, as a potentially large-tonnage nickel deposit, which may be mineable by open pit. These forward-looking statements are subject to a variety of risks and uncertainties beyond Fletcher Nickel's ability to control or predict that may cause actual events or results to differ materially from those discussed in such forward-looking statements, including future exploration results varying significantly from estimates; exploration results being insufficiently favourable to support further development of the property, inability to delineate additional mineral resources or reserves, results of the metallurgical test work and data analysis dictating that parameters of a preliminary economic assessment may not be determined, or fully determined. Any forward-looking statement, speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Fletcher Nickel disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although Fletcher Nickel believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be placed on these forward-looking statements due to the inherent uncertainty therein.
For Further Information:
Bruce Hodgman
Communications Director
Direct: (416) 642-3575 (ext: 103)
info@fletchernickel.com
There are many more news releases to research at this website including 08.09.09 "Large Tonnage near surface Nickel" and "Merger with Atlas Precious Metals (APMI)" to name a few more.
TC
|
Thomas H. Poupore
Director
(705) 522-2163
|
Frank C. Smeenk
Managing Director
(416) 888-4790
|
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