VANCOUVER, BRITISH COLUMBIA -- (Marketwired - Oct. 2, 2014) -
Fjordland Exploration Inc. (TSX VENTURE:FEX) has executed a Memorandum of Understanding ("MOU") with
Commander Resources Ltd. ("Commander") whereby Fjordland has been granted an option to earn a 70 percent undivided interest in Commander's 100 percent owned South Voisey's Bay nickel-cobalt project. This large, 180 square kilometre project is located in central Labrador, 80 kilometres south of the 6,000 tonnes per day mine/concentrator operated by Voisey's Bay Nickel Company Ltd., a subsidiary of
Vale S.A.
Commander has been exploring in the district since the discovery of the spectacular Ovoid massive sulphide deposit in 1994. Commander and its previous partners Donner, Northern Abitibi, Falconbridge and Teck have expended in excess of $20 million in the district. Commander has since 2013 consolidated 100% ownership of the key mineral claims and in addition has assembled an outstanding geological and geophysical database.
Commander has identified a very strong electromagnetic ("EM") conductor flanking a large magnetic anomaly referred to as the Sandy prospect. Commander, as operator, will immediately initiate a $200,000 UTEM geophysical program designed to extend and delineate this specific drill target. Several other drill targets have been identified and will be tested after further geophysical groundwork and modelling. A drill program and further geophysics currently budgeted at $1 million is expected to commence in the second quarter of 2015.
Richard Atkinson, President and Chief Executive Officer, states, "The South Voisey's Bay Project provides an exceptional opportunity as it meets Fjordland's exploration criteria in that it possesses large scale, drill ready targets in a well documented geologic setting." He notes that in the 20 years since discovery of the series of ore deposits forming the reserve at the Voisey's Bay mine, extensive research by industry and government have yielded a greatly enhanced understanding of the mode of formation and deposition of these high grade nickel-copper-cobalt sulphide deposits. Recently published studies(1)(2)(3) have favourably compared the South Vosey's Bay host rocks (the Pants Lake Intrusion) to those that contain the mineralization at the minesite (Voisey's Bay Intrusion). The authors have opined that extensive amounts of copper and nickel are contained in the gabbros of the Pants Lake Intrusion.
Under the terms of the agreement, Fjordland can earn its interest by incurring the following exploration expenditures and share issuances:
Additional Work Shares
Interests Commitments Issuances Due Dates
First Option 10% $250,000 - Upon TSX approval
Second Option 25% $1,000,000 500,000 April 1, 2015
Third Option 12.5% $1,000,000 375,000 March 1, 2016
Fourth Option 12.5% $1,000,000 375,000 March 1, 2017
Fifth Option 10% $2,250,000 1,000,000 March 1, 2018
TOTAL 70% $5,500,000 2,250,000
Upon completion of a positive feasibility study, Fjordland will issue a further 1,250,000 common shares to Commander.
Commander will be the initial operator. Fjordland has the option to become operator upon assuming a majority interest.
Commander announced on September 30, 2014 that they had acquired by staking additional mineral claim units and thereby nearly tripling mineral tenure to a total of 713 claim units encompassing 178 square kilometres. The MOU has established a 3 kilometre Area of Interest.
Richard C. Atkinson, P.Eng., who is a qualified person within the context of National Instrument 43-101, has read and takes responsibility for this news release.
About Fjordland Exploration Inc.
Fjordland Exploration Inc. is a mineral exploration company historically focused on the discovery of copper and gold deposits in British Columbia. Fjordland currently has a portfolio of 18 properties in British Columbia. The principal project is the Dillard Project which is subject to an Option Agreement with Sumac Mines Ltd.(Sumac) an affiliate of Sumitomo Metal Mining.Sumac may earn a 51% interest in the project by expending $3,500,000 over a 3 year period. Fjordland is the operator. Fjordland's shares trade on the TSX Venture Exchange under the symbol "FEX". For further information visit Fjordland's website at www.fjordlandex.com.
On behalf of the Board of Directors,
Richard C. Atkinson
President & CEO
Neither the TSX Venture Exchange nor its Regulation Services (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
(1)The Nain-Churchill Boundary and the Nain Plutonic Suite & Regional Perspective on the Geologic Setting of the Voisey's Bay Ni-Cu Deposit. Economic Geology June 2000 V.95
(2)Voisey's Bay and the Nickel Potential of Labrador. A Summary for the Non-Specialist. Current Researcy (2003) Newfoundland Department of Mines and Energy, Geological Survey Report 03-1.
(3)The Pants Lake Intrusions, Central Labrador, Geology, Geochemistry and Magmatic Ni-Cu-Co Sulphide Mineralization. Newfoundland Labrador Natural Resources Geologial Survey 2012, Report 12-02.
Contact
Fjordland Exploration Inc.
604.893.8365
604.669.8336 (FAX)
info@fjordlandex.com
www.fjordlandex.com
