Noront Resources Ltd. (Noront) is pleased to report that it has come to an agreement with Cadillac Ventures Inc. (Cadillac) to amend the option agreement assigned to Cadillac and reported in Noront’s press release dated April 5th, 2007. In an effort to accelerate the development of the Burnt Hill deposit and to enhance shareholders equity in the project, Noront has agreed that it will complete a 1.5 million dollar exploration program during the 2007 calendar year on the Burnt Hill project. This project will be laid out in accordance with the recommendations of Dr. W. D. Ewert P.Geo of P & E Mining Consultants Inc., the Company’s independent qualified person. The program will include confirmatory and exploration drilling utilizing three diamond drills in order to provide sufficient information to confirm previous data contained in the technical report and allow for the preparation of a new fully compliant NI 43-101 resource estimate. The program, which will commence immediately, will also test a number of untested geochemical molybdenum tungsten targets.
The Company and Cadillac have agreed that in order for Cadillac to earn its 51% interest in the project, that Cadillac, in addition to paying the Company $100,000 and issuing 2,500,000 Cadillac shares to Noront, will deliver to Noront on or before December 31, 2007, $1.5 million of the capital of Cadillac to be valued at no more than $1.00 per share and/or at the same price as a proposed financing contemplated by Cadillac to be completed in the second or third quarters of 2007.
The Burnt Hill property consists of 51 claims encompassing 816 hectares (2040 acres) located approximately 60 km north of Fredericton, N.B. The property has a history of intermittent production; however, it has remained more or less inactive for the last several decades. The last underground development work was by Miramichi Lumber in 1980 when a 1200 ft (365.8 m) decline was driven to crosscut all the known mineralized structures and to provide testing of a “Photometric Ore Sorter”. The ore sorter studies which were based on being able to color sort between mineralized material and barren rock, demonstrated that the mineralized vein material can be very readily pre- concentrated by photometric means, which could triple pre-mill grades. The metallurgical studies demonstrated that a premium grade tungsten concentrate in excess of 65% (up to 75% WO3 can be produced quite readily by gravity concentration as well as a 90% molybdenum and 58% tin with 5.3% tungsten concentrates by additional mill work utilizing sulphide flotation and gravity. No tests were conducted on bismuth at Lakefield but older metallurgical studies indicate that bismuth is recoverable.
The Company completed and filed on SEDAR an independent geological Technical Report prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects pertaining to the Burnt Hill Tungsten Property in New Brunswick (the “Technical Report”). The Technical Report dated effective March 31, 2006 was authored by Dr. Wayne Ewert, P Geo and Mr. Eugene Puritch, E.Eng, of P&E Mining Consultants Inc., both qualified persons as defined by NI 43-101.
The Technical Report contains a historical resource estimate* as prepared by Burnt Hill Tungsten Mines (1956) and Brewster (1981) and summarized in the Table below:
|Company||Year||Tonnage* (Tons)||Grade* (%WO3)||
Estimated Contained Tungsten (lbs WO3)
|Burnt Hill Tungsten Mines||1956||252,000||1.63||5,544,000|
|A.C.A. Howe (Brewster)||1981||2,821,000||0.147||9,123,000|
*It should be noted that the preceding resource estimates are historical in nature and as such are based on prior data and reports prepared by previous operators. The work necessary to verify the classification of the mineral resource estimates has not been completed and the resource estimates therefore, can not be treated as NI 43-101 defined resources verified by a qualified person. The historical estimates should not be relied upon and there can be no assurance that any of the resources, in whole or in part, will ever become economically viable. Considerable further evaluation, including confirmatory and exploratory drilling is required.
It has become increasingly obvious that the theoretical value of molybdenum, tin and tungsten mineralization at Burnt Hill will be affected by the fact that the price of these metals having increased significantly with tungsten concentrate current spot price being approximately US$17.62 per lb of WO3. (www.metalprices.com 06/04/07).
It is expected that molybdenum and tin to be recovered would be in the range of 2.5 lbs per ton each.