Metal Energy (TSXV: MERG) has officially acquired a 70% interest in the Manibridge nickel-copper project in Manitoba. The company expects to continue exploration on the property and complete the milestones required for 100% ownership shortly.
As part of the Manibridge earn-in agreement, Metal Energy has issued a total of 5.0 million common shares to the optionor of the project, CanAlaska Uranium Ltd., and paid $100,000 in cash as a part of its notification of intent to achieve full ownership.
Approximately $1 million in additional exploration work on Manibridge is required to fully satisfy all of the 100% ownership conditions. Metal Energy has 24 months to complete this milestone, but anticipates its completion much sooner.
The Manibridge property is located in the Thompson nickel belt of Manitoba, which is known for its prolific nickel deposits. The project appears to host high-grade nickel mineralization below and along strike of a previously mined area by Falconbridge from 1971 to 1977. During that time, the mine produced a total of 1.3 million tonnes of ore at 2.55% nickel and 0.27% copper.
Premised on drilling by previous operators, Metal Energy completed its inaugural drill program on the Manibridge property earlier this year. A total of six drill holes (2,350 metres) were completed during the program, all of which intersected nickel-copper in sulphides. A Phase 2, 10,000-metre program was subsequently initiated in June, focusing on areas within 150 to 600 metres of the old mine workings.
"We were enthused about the recent results of Manibridge's Phase 1 drill program of intersecting wide high-grade nickel interceptions in every hole. These intersections and the visuals from Phase 2's drill core continue to affirm our belief that Manibridge has excellent redevelopment potential. We are very pleased to not only complete this milestone but do so well in advance of the original option agreement time frames," James Sykes, CEO of Metal Energy, stated.
The Manibridge property encompasses 4,368 hectares and is located 20 km south of Wabowden, Man.
More details can be found at www.MetalEnergy.ca.