Power Ore Announces Transformational Acquisition of the Falconbridge Opemiska Copper Mine Complex in Quebec
Power Ore Announces Transformational
Acquisition of the Falconbridge Opemiska
Copper Mine Complex in Quebec
TORONTO
,
Dec. 12, 2018
/CNW/ - Power Ore Inc. ("Power Ore" or the "Company") (TSX.V: PORE)
is pleased to announce that it has entered into an agreement to acquire a 100% interest in the
Opemiska Copper Mine Complex from Explorateurs-Innovateurs de Quebec Inc. ("Ex-In"), a privately
owned company. The Opemiska Copper Mine Complex consists of two past producing underground
mines in Springer and Perry and neighbours the town of
Chapais
, Quebec.
Falconbridge
operated
the Opemiska Copper Mine Complex from 1953 to 1991 when it produced a total of 23 million tonnes
at 2.4% copper, 0.3 gpt gold.
Full Details on Opemiska Copper Mine Complex is available in our Project Presentation
"We are excited to announce this transformative acquisition as we see it having excellent value for our
shareholders. This is a great opportunity for all stakeholders in that the Opemiska Copper Complex
has the potential to be fast tracked given its jurisdiction, infrastructure, location and a host of other
advantages. Another key point for this acquisition is Opemiska's database, which is a proverbial gold
mine of data which we will utilize to determine the potential for an open pit mining scenario in what
was originally a high grade underground mine. Opemiska is a storied mine as it was
Falconbridge's
main copper producer for many years. We have been looking for exposure to copper and other
metals that we believe will benefit from the demand in metals needed for electric vehicles, renewable
power and global electrification in general. We are bullish on copper fundamentals driven by
increasing demand from traditional uses, as well as the increasing demand from electric vehicles and
renewable energy technology like solar and wind. Additionally, having a presence in the
Chibougamau
region, historically renowned for its mineral wealth, as well as being in
Quebec
, opens up strategic
opportunities for Power Ore," said
Stephen Stewart
, Power Ore CEO.
About Opemiska Copper Mine Complex
The Opemiska project is located adjacent to the town of
Chapais, Quebec
within the
Chibougamau
region. Opemiska is also within the Abitibi Greenstone belt and within the boundaries of the Province
of
Quebec's
Plan Nord which promotes and funds infrastructure and development of natural resource
projects. The project consists of 11 mining claims and covers the past producing Springer & Perry
mines which were owned and operated by
Falconbridge
. The project has excellent "in place"
infrastructure including a powerstation and direct access to Highway 113 and the Canadian National
Railway.
Opemiska was mined by
Falconbridge
as a high-grade underground mining operation, and was in
production for over 35 years prior to Ex-In acquiring the property in 1993.
Click Here to View a Map of the Opemiska Project
Historical Production
Falconbridge
operated the Opemiska Copper Mine Complex from 1953 to 1991 and produced a total
of 23 million tonnes at 2.4% copper, 0.3 gpt gold. The Springer mine produced over 650 million
pounds of copper (329,307 tonnes) at 2.54% copper and more than 200,000 ounces of gold at 0.48
gpt gold, while the Perry mine produced over 385 million pounds of copper (198,018 tonnes) at
2.19% copper, and more than 5,800 ounces of gold at 0.02 gpt gold.
Recent Developments
Under Ex-In's ownership, considerable resources went into digitizing all of the historical data acquired
from
Falconbridge
, as well as conducting further prospecting, geophysical exploration and drilling. In
2010, Ex-In conducted a drill program consisting of 20 holes for 5,700 metres, showing further
exploration potential on the property. In 2013 and 2014, RPA was commissioned for an evaluation of
the geologic potential and a target resource for the Springer and Perry mines. The study yielded a
potential between 16 and 33 million short tons (14.5 and 30 million tonnes), grading 1.0% to 1.4%
copper, and 0.012 to 0.020 oz/ton gold (0.41 to 0.69 gpt gold) for Springer and a further potential at
Perry of between 0.5 and 1.4 million short tons (0.4 and 1.3 million tonnes) between 1.0 and 1.5%
copper. Additionally, RPA delineated a potential underground target at Perry of between 3 and 11
million short tons (2.7 and 10 million tonnes) grading between 1.5 and 2.5% copper. Since the RPA
reports, Ex-In completed further diamond drilling (13 holes totaling 1,250 metres) as well as trenching
and geophysical surveys.
QP Statement and Note on Exploration Targets
The technical information contained in this news release has been reviewed and approved by
Charles
Beaudry
, P.Geo and géo., Director and Vice President Exploration for Power Ore, who is a Qualified
Person as defined in "National Instrument 43-101, Standards of Disclosure for Mineral Projects." The
potential tonnage and grade of these targets are conceptual in nature. There has been insufficient
exploration to define them as mineral resources and it is uncertain if further exploration will result in
the targets being delineated as mineral resources. Power Ore advises that no one should consider
these targets as mineral resources; however the Company's objective is to define mineral resources
initially and then to work towards engineering activities to define any economic viability of the
Opemiska Copper Project. The exploration targets defined on the old Springer and Perry mines are
based on thousands of holes that were drilled during the mining period of both mines, many of which
were drilled from underground and for which no core is left to resample or log and therefore cannot
easily be confirmed. Nevertheless it is the opinion of the QP that the assays used to define the
exploration targets are acceptable for the purposes of defining the exploration targets.
Opemiska Geology and Exploration Potential
The Springer and Perry mines were the most important producers in the
Chapais
district and are
hosted by the mafic to ultramafic Ventures sill. Mineralization consists of quartz veins with
chalcopyrite, magnetite, pyrite and pyrrhotite injected primarily into the synclinal hinge zone of the
Chapais
syncline. The veins occupy radial fractures dominantly east-west trending but with a
subordinate northwest-southeast direction. The veins, which were all mined underground, were
subject to minimum cut-off grades and as such a considerable amount of lower grade material was
left behind in the unmined wall rock and in various pillars including the crown pillars of all zones except
the western end of Zone 3 which is now a glory hole. "The key to success on this project will be to
properly account for all the material that has been mined by carefully digitizing all the historical
underground workings and by validating the historical drilling by an adequate program of hole twinning
since no core remains from the mined area, said
Charles Beaudry
, VP Exploration for Power Ore and
Qualified Person as defined in NI 43-101".
Terms of Acquisition
To acquire a 100% interest in the Opemiska Copper Complex, Power Ore and Ex-In entered into a
definitive agreement with the effective date on the first business day after receipt of conditional
approval by the TSX Venture Exchange. Its terms are as follows: 6 Months after the effective date,
Power Ore will issue 1.5 Million shares, 1.5 Million warrants (
$0.20
exercise price) and pay
$50,000
to Ex-In; By the 18
th
Month after the effective date, Power Ore will incur
$500,000
in work
expenditures on Opemiska, issue 1.5 Million shares and 1.5 Million warrants (
$0.25
exercise price)
and pay
$150,000
to Ex-In; By the 30th Month after the effective date, Power Ore will incur an
additional
$1,000,000
in work expenditures on Opemiska, issue 2 Million shares and 2 Million
warrants (
$0.30
exercise price) and pay
$300,000
to Ex-In; By the 42nd Month after the effective
date, Power Ore will incur an additional
$1,500,000
on Opemiska, issue 3 Million shares and 3 Million
warrants (
$0.35
exercise price) and pay
$1,000,000
to Ex-In. The Opemiska Copper Complex is
subject to a 2% NSR, 50% of which can be re-purchased by Power Ore at a cost of
$4.5 million
. At
any time, Power Ore can accelerate its obligations to exercise 100% ownership of Opemiska Copper
Complex at an earlier date. Subject to certain adjustments in the case of accelerated issuance, all
warrants to be issued to Ex-In will expire 36 months after their date of issuance. All securities to be
issued to Ex-In will be subject to a four-month hold period in accordance with applicable law.
Closing of the transaction, which is a fundamental acquisition, remains subject to final approval of the
TSX Venture Exchange, as well as certain other conditions as are customary in transactions of this
nature. The definitive agreement was signed today. This is an arms length transaction and there are
no finder's fees payable.
For information and updates on Power Ore, please visit:
www.powerore.com
And please follow us on Twitter @PowerOre
N
either TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release. Certain information in this press release may contain forward-looking statements. This
information is based on current expectations that are subject to significant risks and uncertainties
that are difficult to predict. Actual results might differ materially from results suggested in any
forward-looking statements. Power Ore is a trade name of PowerOre Inc. PowerOre Inc. assumes
no obligation to update the forward-looking statements, or to update the reasons why actual results
could differ from those reflected in the forward looking-statements unless and until required by
securities laws applicable to PowerOre Inc. Additional information identifying risks and uncertainties
is contained in filings by PowerOre Inc. with Canadian securities regulators, which filings are
available under PowerOre Inc. profile at
www.sedar.com
.
SOURCE
Power Ore
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For further information:
To speak to the Company directly, please contact: Stephen Stewart, Chief
Executive Officer, Phone:
416.644.1571, Email:
[email protected], www.powerore.com
CO: Power Ore
CNW 11:26e 12-DEC-18