Commander options Sabin Zinc Property, Ontario to Roughrider Exploration
VANCOUVER, BC - Commander Resources Ltd. ("Commander") (CMD:TSX-V) is pleased to announce that it has entered into a letter agreement with Roughrider Exploration Limited (TSX.V: REL) ("Roughrider") allowing Roughrider to acquire up to a 100% interest in Commander’s interest in the Sabin zinc-copper- silver volcanogenic massive sulphide (VMS) project (the “Sabin Zinc Property”) located in northwest Ontario, Canada, some ten kilometres north of the community of Savant Lake. The Sabin Zinc Property is in the Sturgeon Lake greenstone belt, host to significant polymetallic VMS deposits including the Sturgeon, Mattabi, Lyon and “F’ VMS mines.Mining ceased in the belt in 1991.
The Sabin Zinc Property was first worked by Union de Miniere Exploration (UMEX) in the 1970’s. Initial work by UMEX led to the discovery of the Marchington Zone where shallow drilling on 15 metre centres outlined a small historical resource from 15 metres to 61 metres depth.
Marchington Zone Historic Resource
123,000 tonnes 2.9% Zn0.7% Cu1.3 % Pb 56 gpt Ag.
The Marchington Zone resource was defined by UMEX (based on internal company documents dated June 19, 1980), is historic in nature, is the most recent resource estimate currently available and is not to be relied upon except to provide an indication of exploration potential on the property. It was defined by exploration professionals working for major companies widely repudiated as competent, utilizing methodology accepted and relied upon as standard industry practice at the time, but that is not now compliant with National Instrument 43-101. The reader is cautioned that a qualified person has not done sufficient work to classify this historical estimate as current resources and Commander is not treating it as a current mineral resource.
In addition to the Marchington Zone horizon three additional partially drill tested zones have been identified including the Kash, South and S-23 zones. Summary of geological highlights of the Sabin Zinc Property are presented below:
- Four sulphide enriched horizons indicated from drilling: Marchington, Kash, South and S-23.
- Zinc and silver-rich with low conductivity.
- Gold not consistently assayed for.
- Intermediate to felsic flows and tuffs.
- Extensive “VMS-style” alteration: Na-depletion (the presence of garnet and staurolite).
- Large historical database of drilling, litho-geochemistry and geophysics.
- No previous comprehensive compilation of data.
- Kash Zone, associated with a 990 metre airborne geophysical electromagnetic conductor, has been tested by a single drill hole:
- 1978 Hole SA-430.7metre @ 3.96% Zn, 0.15% Cu, 1.43% Pb, 18.7 g/t Ag, 0.35 g/t Au
Commander (formerly Major General) acquired the property through a purchase agreement with UMEX in 1990 and holds a 100% interest in the property except for two small internal claim parcels that are subject to a participating interest with Glencore Canada Corporation who currently hold 41.5% and 33.3%.UMEX retains a 2.5% NSR over the property that will be reduced to 1% following $225,000 of royalty payments.
Sabin Zinc Property Letter Agreement
Under the terms of the Letter Agreement, and subject to requisite regulatory approvals, Roughrider may earn up to 100% in Commander’s interest in the Sabin Zinc Property by paying Commander aggregate cash payments of $1.1 million, completing $4.5 million in exploration expenditures and issuing Commander an aggregate of 4.4 million shares as follows:
- Upon signing of a Definitive Agreement on or before May 31, 2017-cash payment of $20,000 and issuance of 100,000 shares
- To earn a 51% interest- by the 4th anniversary, Roughrider must make additional cash payments totaling $380,000 ($400,000 in total), spend an aggregate of $1.5 million on exploration ($200,000 before the first anniversary) and issue Commander 1.3 million shares (1.4 million in total)
- To earn a 70% interest: by the 6th anniversary, Roughrider must make additional cash payment of $200,000, spend $1.5 million on exploration and issue Commander 1.0 million shares.
- To earn a 100% interest: by the 9th anniversary, Roughrider must make additional cash payments totaling $500,000, spend an aggregate of $1.5 million on exploration and issue Commander 2 million shares.
- Commander retains a 1% Net Smelter Royalty (NSR) on claims where the aggregate NSR held by all other parties is not greater than 2%.
The Option is subject to certain customary conditions including without limitation, completion by Roughrider of satisfactory due diligence in respect of the property, execution of definitive transaction documents and to receipt of all necessary regulatory and third party approvals, including the approval of the TSX Venture Exchange .
Robert Cameron, P. Geo. is a qualified person within the context of National Instrument 43-101, and has read and takes responsibility for the technical aspects of this release.
About Commander Resources:
Commander Resources is a Canadian focused exploration company that has leveraged its success in exploration through partnerships and sale of properties, while retaining equity and royalty interests. Commander has a portfolio of base and precious metal projects across Canada and significant equity positions in Maritime Resources Corp. (MAE-TSX.V) and Aston Bay Holdings (BAY-TSX.V). Commander also retains royalties from properties that have been partnered, optioned or sold.
On behalf of the Board of Directors
Robert Cameron, P. Geo.
President and CEO
For further information, please call:
Robert Cameron, President and CEO
Toll Free: 1-800-667-7866
Neither 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.
This news release may include forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking.Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements.Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions.There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties.We do not assume any obligation to update any forward-looking statements except as required under the applicable laws.