Commander Attains 100% Ownership of South Voisey's Bay Nickel Project
VANCOUVER, BC - Commander Resources Ltd. (CMD-TSX.V, "Commander") reports that it has reached agreement with Teck Resources Limited (TSX: TCK.A and TCK.B, NYSE: TCK, "Teck") under which Teck agreed to extinguish their pre-existing back-in right and right of first refusal (the "Rights") pursuant to an agreement between Teck Corporation (now Teck Resources Limited) and Donner Resources Ltd. dated May 21, 1997, with respect to two mineral claims (the "Property") in the South Voisey's Bay nickel project. This arrangement now gives Commander 100% ownership of properties that were previously held in joint venture agreements within the South Voisey's Bay project area. Commander's holdings in the area now consist of six claim licenses covering 6,050 hectares or 14,950 acres. In consideration of the extinguishment of the Rights, Teck has been granted a 1% NSR on the Property and on an additional adjacent claim license held by Commander in the South Voisey's Bay area. In addition, should Commander sell or option the Property to a third party, Commander will pay Teck 15% of the proceeds received, including cash and securities but excluding the value of work commitments.
Following the discovery of the Voisey's Bay nickel deposit in the late 1990's, Major General Resources (now Commander) staked similarly aged gabbro bodies, collectively known as the Pants Lake Intrusive suite, in the South Voisey's area. A large number of junior companies, including Major General, became involved in the exploration for another large nickel deposit in the area at that time, and property ownership became divided into small, disjointed parcels. Joint venture agreements were made between parties that have become redundant in structure over the years. Commander has now consolidated all of the claims held within the most prospective geology of the Pants Lake Intrusive suite and cleaned up the ownership structure by removing JV agreements and back-in rights.
The South Voisey's project area is located 80 km south of the Voisey's Bay nickel mine. The claims are located geologically within the Churchill Province and close to the Nain-Churchill boundary. The gabbro intrusions discovered on the claims are hosted within sedimentary sulphide and graphite bearing paragneiss and bear genetic similarity to the Nain Plutonic Suite that hosts the Voisey's Bay nickel mine. Commander has conducted exploration programs in the area for several years in search of similarly styled nickel sulphides hosted within gabbro units and has substantially advanced the project. Detailed drilling, electromagnetic surveys and down-hole geophysics have provided enough information for 3-D modelling of the gabbro intrusions and have identified targets for future drill programs. Commander has a permitted camp in the area. With the consolidation of the claims in the area Commander now has a larger area of gabbro intrusions, with clean ownership structure, on which to continue exploration targeting.
Stephen J. Potts, P.Geo., Vice President of Exploration , is the Qualified Person as defined by NI 43-101 and has reviewed and approved the technical disclosure contained in this release.
On behalf of the Board of Directors,
Eric W. Norton
President & CEO
For further information, please call:
Cathy DiVito, Investor Relations
Toll Free: 1-800-667-7866
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. Statements in this press release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, may include forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.