Commander Resources Ltd is pleased to report that its project partner Fjordland Exploration Inc. will fund a minimum $1,200,000 exploration program on the company's South Voisey's Bay nickel-copper-cobalt project (the "SVB Property") located 80 kilometres south of Vale's Voisey's Bay nickel mine in Labrador, Canada. Fjordland's funding will be provided by its strategic investor, High Power Exploration Inc.
The large 29,400 Ha SVB Property is located in central Labrador 80 kilometres south of Vale's Voisey's Bay Nickel mine and covers parts of the Pants Lake Gabbro Complex.
Fjordland recently completed a 1469 metre drill program in which hole 17-6 returned a 3.9 metre interval of semi-massive to massive sulphide comprised of pyrrhotite, pentlandite and chalcopyrite grading 0.37% nickel, 0.27% copper and 0.1 % cobalt at the base of the Worm Gabbro within a sequence of troctolite. Borehole Electro-Magnetic (BHEM) data, collected by Crone Geophysics in November, defined several extremely high conductivity targets in particularly in holes 17-6 and 17-7 where a strong conductor was associated with the intersected sulphides, and an even stronger non-decaying off-hole conductor.
Drilling in 2017 was centred on modeled conductors derived from re-processed historical UTEM-3 surveys conducted in 2002 and 2014.
Targeting incorporated recent geological concepts being successfully applied at the Voisey's Bay Mine wherein structure plays an important ore control role and where massive sulphide accumulations may also occur in wall rock structures. Ongoing processing of historical geophysical surveys completed by previous project operators and aided by recent improved geological insights derived from the recent drilling has outlined numerous untested conductors throughout the property and will form the basis of the 2018 drill program.
Fjordland currently has a 35% project interest. Under the terms of the Commander/Fjordland option agreement, announced on June 5, 2017, Fjordland may earn up to a 100% interest in the property by paying Commander combined cash payments of $290,000, completing $8.0 million in exploration expenditures and issuing to Commander an aggregate of 4.5 million shares of Fjordland.
Upon Fjordland acquiring a 100% interest in the project, Commander will retain a 2% NSR with Fjordland having the right to buy down 50% of the Royalty for a payment of $5,000,000 as a cash payment, or a cash payment equal $2,500,000 plus the issuance of shares having a fair market value of 50% of the buy down amount. Commander will receive a $10,000,000 advance royalty payment at the commencement of commercial production.
Fjordland is 30% held by an affiliate of HPX who have separately entered into a funding agreement with Fjordland to provide up to $7.4 million in expenditures and $290,000 in property payments, following which Fjordland has agreed to assign a 65% project interest in SVB to HPX (see FEX news release dated August 28, 2017).
HPX is a privately owned, metals-focused exploration company deploying proprietary in-house geophysical technologies to rapidly evaluate mineral prospects. The HPX technology cluster comprises systems for targeting, modelling, survey optimization, acquisition, processing and interpretation. HPX has a highly experienced board and management team led by Co-Chair and Chief Executive Officer Robert Friedland.
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.