10 highlights of FinnAust mining's acquisition of Avannaa Exploration
FinnAust Mining, the exploration company with operations in Greenland, Finland and Austria, has announced that it will strengthen its position in Greenland with the acquisition of Avannaa Exploration Limited. The company is a mineral exploration company with several advanced projects in the south-west of Greenland.
The acquisition, which will also see FinnAust acquire share capital of Avannaa from Capricorn Oil Limited, a subsidiary of Cairn Energy Plc.
Here are 10 highlights of the deal:
- Two of the projects, which have been the subject of more than US$50 million of technical work prior to Capricorns activities by blue chip mining houses, are of particular interest:
- The 194 sq km Disko-Nuussuaq (‘Disko’) Magmatic Massive Sulphide (‘MMS’) nickel-copper-platinum project (‘Ni-Cu-PGE’)
Detailed sulphide inclusion analysis from the Disko flood basalts show strong sulphide segregation has taken place
The existence of a 28 tonne massive sulphide boulder assaying 7% Ni, 3% Cu & 2ppm PGE in a cross cutting dyke interpreted to have sampled an MMS conductor during emplacement, confirms the model
- Seven large scale MMS Ni-Cu-PGE conductor targets confirmed, the two largest are 5.9km long & 1.1km wide and 4.8km long & 800m wide
- The 107 sq km Kangerluarsuk SedEx lead-zinc-silver project (‘Kangerluarsuk’)
- Previously drilled by Cominco then RTZ, historical results include 41% Zn, 9.3% Pb and 596 g/t Ag
- 2 large scale drill ready SedEx targets located in favourable topography
- Projects complement FinnAust’s stated strategy of acquiring low cost, high quality assets – both have minimal exploration commitment and low administrative holding cost due to historical expenditure credits
- Primary focus to remain on delivering production at Pituffik Titanium Project in Greenland (‘Pituffik’) – bulk sampling targeted to commence in 2017
- Acquisition price of £500,000 to be satisfied through the issue of new ordinary shares in FinnAust
- Acquisition conditional upon, inter alia, change of control approval being received from the Greenland Government
FinnAust CEO Roderick McIllree said, “This acquisition further consolidates FinnAust’s position in Greenland and sees us add quality acreage to our Greenlandic portfolio, which already includes the unusually pure Pituffik Titanium Project. Having worked in Greenland extensively over the past 10 years, my team and I have an excellent understanding of the resource opportunity in this emerging jurisdiction, the potential of which grows day by day as a result of environmental changes.”
“In terms of strategy, FinnAust will maintain its immediate focus on advancing Pituffik, which is shaping up to be a globally significant titanium asset. Before announcing details of our work programme plan for these new assets, our team will first absorb the large datasets available to ensure that all future work delivers the success we have seen at Pituffik and maximises shareholder value.”
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Vale invests $150mn to extend life of Manitoba operations
Vale has announced a $150mn CAD investment to extend current mining activities in Thompson, Manitoba by 10 years while aggressive exploration drilling of known orebodies holds the promise of mining well past 2040.
Global energy transition is boosting the market for nickel
The Thompson Mine Expansion is a two-phase project. The announcement represents Phase 1 and includes critical infrastructure such as new ventilation raises and fans, increased backfill capacity and additional power distribution. The changes are forecast to improve current production by 30%.
“This is the largest single investment we have made in our Thompson operations in the past two decades,” said Mark Travers, Executive Vice-President for Base Metals with Vale. “It is significant news for our employees, for the Thompson community and for the Province of Manitoba.
“The global movement to electric vehicles, renewable energies and carbon reduction has shone a welcome spotlight on nickel – positioning the metal we mine as a key contributor to a greener future and boosting world demand. We are proud that Thompson can be part of that future and part of the low carbon solution.”
Vale continues drilling program at Manitoba
Coupled with today’s announcement, Vale is continuing an extensive drilling program to further define known orebodies and search for new mineralization.
“This $150mn investment is just one part of our ambitious Thompson turnaround story. It is an indicator of our confidence in a long future for the Thompson operations,” added Dino Otranto, Chief Operating Officer for Vale’s North Atlantic Base Metals operations.
“Active collaboration between our design team, technical services, USW Local 6166, and our entire Thompson workforce has delivered a safe, efficient and fit-for-purpose plan that will enable us to extract the Thompson nickel resources for many years to come.”
The Thompson orebody was first discovered in 1956 by Vale (then known as Inco) following the adoption of new exploration technology and the largest exploration program to-date in the company’s history. Mining of the Thompson orebody began in 1961.
“We see the lighting of a path forward to a sustainable and prosperous future for Vale Base Metals in Manitoba,” said Gary Annett, General Manager of Vale’s Manitoba Operations.