TORONTO, ONTARIO, Noront Resources Ltd. (Noront) is pleased to announce it has entered into an option agreement with Murgor Resources Inc. (MUG-V) and Freewest Resources Canada Inc. (FWR-V) (Murgor/Freewest) whereby Noront can earn an interest in Murgor/Freewest’s Windfall Lake project comprised of 29 claims (the claims) adjoining to the north and northeast of Noront’s 100% owned Windfall Lake project Urban Township, Quebec. Under the agreement, Noront has agreed to issue, subject to all regulatory approvals, 750,000 common shares in aggregate, of Noront and further match Murgor/Freewest’s total exploration dollars spent by them on the project over the past several years, estimated to be approximately $4 million over three years, in order to earn a participating 50% interest in the claims.
Noront shall at all times act as operator of the project and further shall have the right to propose to complete a feasibility study and should Murgor/Freewest not participate in the costs of such feasibility study, Noront may earn an additional 10% participating interest providing the feasibility study is positive. The parties shall operate under a joint venture agreement that will provide that should either party fail to contribute its share of any further exploration and/or development costs on the claims the non participating party’s interest will be diluted by a standard abatement clause down to a 10% interest and automatically thereafter reduced to a 2% Net Smelter Return (NSR) of which 1% interest may be purchased by the contributing party in whole or in part for $1 million.
Further the Company is pleased to advise that it has retained Genivar S.E.C. of Quebec to immediately commence the permitting process required for the Company to begin its proposed underground exploration program. (See press releases dated December 7th and December 29th, 2006). It is expected that the permitting submission to the appropriate governmental authorities will be completed by the end of February 2007 and it is anticipated that the permits will be issued in May 2007 with the ramping to commence immediately thereafter. The Company is currently re-considering the design of the ramp in that consideration is now being given to starting this exploration ramp on the newly optioned ground hereinbefore set out in order for the Company to sample several mineralized gold zones established by Murgor/Freewest in their previous drill programs as well as providing access to a number of the Noront mineralized zones.
A diamond drill program hopefully utilizing two diamond drills is expected to begin on both properties later this spring. This drilling will be designed to assist in the ramp design as well as attempt to expand the known mineralized zones on the Noront and Murgor/Freewest properties.