- Port Hope Simpson REE District
- Henley Harbour
- Strange Lake Earn-in
- Red Wine Complex Joint Venture
- Qualified Person
- Technical Reports
Strange Lake Earn-in
On June 22, 2010, the Company entered into an agreement with Quest Rare Minerals Ltd. ("Quest") pursuant to which Quest transferred four licenses consisting of nine mineral claims to the Company in consideration for 10,000 common shares of the Company (issued on June 22, 2010). The mineral claims are located adjacent to the Company's Strange Lake Property located on 750 hectares in Western Labrador in the Province of Newfoundland and Labrador.
On June 22, 2010, the Company entered into an option agreement with Quest pursuant to which the Company has granted Quest an option (the "Option") to acquire up to a 65% undivided working interest in the Company's Strange Lake Property. Pursuant to the option agreement, Quest may earn a 50% undivided working interest in the Strange Lake Property by issuance an aggregate of 90,000 common shares of Quest to the Company over a period of three years. The Company has received 10,000 common shares of Quest at the fair value of $21,400. In addition, Quest must incur mineral exploration expenditures of $500,000 in aggregate over a period of three years as follows:
- $100,000 on or before June 22, 2011;
- $150,000 on or before June 22, 2012; and,
- $250,000 on or before June 22, 2013.
Upon Quest earning a 50% undivided working interest in the Strange Lake Property, Quest may earn an additional 15% undivided working interest in the property by incurring additional mineral exploration expenditures of $1,250,000 in aggregate over a period of two years and paying $75,000 in cash and 150,000 common shares of Quest to the Company on or before June 15, 2015. The property is subject to a 1.5% net smelter return royalty in favour of the Company. Quest may, at any time, purchase two-thirds of the 1.5% NSR royalty for $1,000,000. Quest will be the operator for the property and the Company will pay Quest an amount equal to 10% of the expenditures incurred by Quest for each year of the Option.
The Strange Lake property consists of license 013305M that covers a total of 21 claims (5.25 sq km) in western Labrador, about 120km west of the coastal community of Nain. This license covers a portion of the Strange Lake Peralkaline Granite, the host of the REE mineralization in the B-Zone (Quest Rare Minerals) and Main Zone (discovered by Iron Ore Company in 1979), just northwest of the Quebec-Labrador border. License 013305M is part of the Option agreement with Quest and is currently registered to Quest Rare Minerals Inc. Quest issued a news release on April 21, 2011 announcing that it had completed a small, four hole, 310.3m drilling program on the Strange Lake property. The program tested surface REE mineralized occurrences identified by Quest during its summer 2010 exploration activities. Mineralized pegmatite and granite aplite was intersected in all holes on the property. All holes were sampled and submitted to the lab for analysis.Exploration activity in 2009 by the Company comprised preliminary prospecting, boulder tracing and outcrop/float sampling. Eight grab samples were collected and analyzed for trace rare earth and major elements. Three of these samples, two boulders and one outcrop sample, gave very high REE (2.55%, 2.95% and 4.57% REE + Y) and very high rare metal values (e.g., 6,708 ppm, 8,521 ppm and 2,320 ppm Nb; 9,918 ppm, 13,165 ppm and 12,061 ppm Zr).