Critical Elements Corporation Closes the Sale of the Croinor Property in Exchange for 520 km2 of Land Holdings Near the Rose ...
13 Mai 2014 - 2:30PM
Marketwired Canada
Critical Elements Corporation (TSX VENTURE:CRE)(OTCQX:CRECF) (FRANKFURT:F12) is
pleased to announce that it has completed the sale of its 50% interest in the
Croinor property to Monarques Resources Inc. ("Monarques") in exchange for a
100% interest in the Amiral, Arques, Bourier, Caumont, Dumulon, Duval, Lemare,
Nisk, Rosebay and Valiquette properties (the "James Bay Properties") and 500,000
common shares of Monarques. This transaction, which closed today, was initially
announced by the parties on December 17, 2013.
The common shares of Monarques issued the Company pursuant to this transaction
will be subject to voluntary hold periods as follows: 250,000 common shares to
be released six months after closing of the transaction and 250,000 to be
released 12 months after closing of the transaction.
The James Bay Properties cover a total area of 520 km2 near the Company's Rose
project. Below is a brief description of the properties the Company considers
the most promising.
Nisk Property
The Nisk Property is composed of one block totaling 190 claims covering an area
of 9,920 ha for over 20 kilometers in length. The route du Nord from Chibougamau
runs within the South border of the property. The property is also traversed in
a NE direction by a Hydro-Quebec power line and a road that heads North to the
Eastmain River and further to the La Grande River areas.
The Lac des Montagnes volcano-sedimentary formation crosses the property in a NE
direction. The geology covered by the property is mainly composed of biotite,
sillimanite, staurotide and garnet-bearing gneisses and granites, pegmatites,
amphibolites and ultramafic intrusive rocks. Geophysical surveys show the
signature and extent of ultramafic intrusions, some of which have been
historically confirmed by drilling. The North of the Lac des Montagnes formation
is mainly composed by orthogneisses intruded by granites, while the South area
of this formation is composed principally of paragneisses, also intruded by
granites.
The property is currently known for its magmatic nickel-copper sulphide deposits
associated with ultramafic intrusion potential. It notably holds the Nisk-1
Ni-Cu-PGE deposit. The Nisk-1 deposit is located at UTM coordinates 459,950 mE /
5,728,500 mN. It is hosted in an elongated body of serpentinized ultramafic
rocks that intrude the Lac des Montagnes paragneiss and amphibolite sequence.
The ultramafic rock intrusion is a sill bordered by paragneisses and
amphibolites. Quite similar on either side of the ultramafic sill, they still
can be subdivided into a lower paragneiss sequence ("LPS") to the NW of the sill
(stratigraphically older) and an upper paragneiss sequence ("UPS") to the SE of
the sill (stratigraphically younger).
The ultramafic sill is not a single intrusion. At least two distinct
lithological units can be identified. The first, a grey serpentinized peridotite
with magnetite veinlets, does not contain any sulphide minerals. The second is a
black serpentinized peridotite with chrysotile veinlets. The Ni-Cu-Co-Fe
sulphide mineralization is invariably associated with this black serpentinite.
In summary and on average, the sequence intersected by drilling, (striking N164
degrees E with a 50 degrees to 70 degrees plunge to the SE) in the ultramafic
body is as follows: (i) 35 meters of unmineralized grey serpentinite; (ii) 4
meters of unmineralized black serpentinite; (iii) 12 meters of massive to
disseminated sulphides in black serpentinite; and (iv) 27 meters of
unmineralized black serpentinite, sometimes alternating with the grey
serpentinite, also unmineralized.
The Nisk-1 deposit is the only mineralized zone with estimated resources on the
property.
Lemare Property
The Lemare Property is composed of one block totaling 195 claims covering an
area of 9,171 ha for over 20 kilometers in length in a SW-NE direction. It is
contiguous to the Nisk property on its North West border. Secondary roads
running from a Hydro-Quebec power line and permanent gravel roads that run along
its North West boundary give access all through the property.
The Lac des Montagnes volcano-sedimentary formation crosses the Lemare Property
in a NE direction. It is composed of paragneiss (gneiss formed of metamorphosed
sediment), amphibolites and granitic intrusives. The North of the Lac des
Montagnes formation is mainly composed by orthogneisses intruded by granites,
while the South area of this formation is composed principally of paragneisses,
also intruded by felsic to intermediate intrusives.
The possibility of nickel-copper-PGE mineralization is confirmed by the presence
of Nisk-1 deposit, located close to the Lemare property. Several magnetic
anomalies are present on the property and these have not been drill tested.
In December 2012, Monarch announced the discovery of a lithium pegmatite with
1.96% Li2O over 12.0 m on the property. Exploration work carried out in the
summer of 2012 had identified a granitic pegmatite dyke (GRAAB index) containing
a significant amount of spodumene. Six trenches dug in October 2012 exposed the
spodumene pegmatite. The dyke, which has an apparent thickness of 5 to 14
metres, was traced over almost 200 metres on surface. Its depth has not been
tested, but it outcrops over 5 to 6 m in an escarpment. A total of 43 samples
were collected from a total of 62 metres of channelling. Eleven of these samples
returned an Li2O content of over 2%. The channelling program results are shown
in the following table:
------------------------------------------------------------
Channel Grade % Li2O Length (metres)
------------------------------------------------------------
LEM(Li)-12-R1 1.61% 9.5 m
------------------------------------------------------------
Including 2.00% 6.0 m
------------------------------------------------------------
LEM(Li)-12-R2 1.96% 12.0 m
------------------------------------------------------------
Including 2.68% 6.0 m
------------------------------------------------------------
LEM(Li)-12-R3 1.74% 10.5 m
------------------------------------------------------------
LEM(Li)-12-R4 2.12% 4.8 m
------------------------------------------------------------
LEM(Li)-12-R5 1.18% 14.2 m
------------------------------------------------------------
Including 1.58% 10.1 m
------------------------------------------------------------
LEM(Li)-12-R6 0.42% 10.5 m
------------------------------------------------------------
Including 1.12% 3.0 m
------------------------------------------------------------
At the time, Monarques sent all its samples to ALS Chemex laboratory in Val-d'Or
for preparation and analysis. The laboratory is certified ISO/CEI 17025: 2005 by
the Canadian Standards Association. For more information, see Monarques' press
release dated December 11, 2012.
A 43-101 technical report was prepared in November 2012 by InnovExplo Inc. and
can be found under Monarques' profile on SEDAR (www.sedar.com).
Valiquette Property
The Valiquette Property is composed of one block totaling 116 claims covering an
area of 6,204 ha. It is measuring about 13 kilometers in a SW-NE direction and
is contiguous South West to the Duval main block. The property can be accessed
by a Hydro-Quebec gravel road up to the Lac des Montagnes, and then by boat. An
old winter road along the SE shore of Lac des Montagnes can be used for works.
The property is located in the middle part of the Lac des Montagnes
volcano-sedimentary formation. In the vicinity of the Duval block the formation
width is about 8 km and its orientation NE. It is locally composed of
amphibolite quartz-rich paragneiss, biotite and sillimanite-bearing schist,
pegmatite, basalt and ultramafic intrusives. Geophysical surveys show the
signature and extent of ultramafic intrusions and iron formations, with some of
them confirmed by historical drilling.
The property is currently recognized for its magmatic nickel (Ni), copper (Cu)
and platinum group elements (PGE) potential and host the Valiquette showing. The
Valiquette showing is associated with a peridotite intrusions at the contact of
the volcanogenic sediment of the Lac des Montagne formation. Historical results
of surface sampling returned up to 1.75% Ni and 1.42% Cu (grab samples) and the
best intersections returned from the 2011 drilling campaign are 2.66% Ni and
0.71% Cu over 3.2 meters, 0.78% Ni and 0.47% Cu over 4.8 meters, 1.15% Ni and
0.39% Cu over 8.3 meters and 1.47% Ni and 0.26% Cu over 2.5 meters (c.f. PR
August 1st, 2011).
Arques Property
The Arques Property is composed of one block totaling 149 claims covering an
area of 7,477 ha for some 18 kilometers of length in a SW-NE direction. It is
contiguous to the Lemare property on its South East border. The property is
traversed in a NE direction by a Hydro-Quebec power line and a permanent gravel
road that heads North to the Eastmain River and further to the La Grande River
areas. Secondary roads running from these last also give access through the
property.
The Lac des Montagnes volcano-sedimentary formation is running just within the
South East limit of the Arques Property. The primary observed geology is mainly
composed of orthogneisses formed of metamorphosed felsic intrusives. In the
winter 2011 a major alkaline intrusion, the Arques Complex, was identified by
diamond drilling.
The recently identified Arques Alkaline Complex shows similar characteristics of
other deposits which are known for Rare Earth Elements (REE), Niobium (Nb) and
Tantalum (Ta) mineralization.
A 43-101 technical report was prepared in October 2009 and updated in December
2009 by Denis Raymond, Ing., M.Sc., and Donald Theberge, Ing., M.B.A., and can
be found under Monarques' profile on SEDAR (www.sedar.com).
Jean-Sebastien Lavallee (OGQ #773), geologist, shareholder and President and
Chief Executive Officer of the Company and a Qualified Person under NI 43-101,
has reviewed and approved the technical content of this release.
About Critical Elements Corporation
Critical Elements is actively developing its 100%-owned Rose lithium-tantalum
flagship project located in Quebec.
A recent financial analysis of the Rose project based on price forecasts of
US$260/kg ($118/lb) for Ta2O5 contained in a tantalite concentrate and
US$6,000/t for lithium carbonate (Li2CO3) showed an estimated after-tax Internal
Rate of Return (IRR) of 25% for the Rose project, with an estimated Net Present
Value (NPV) of CA$279 million at an 8% discount rate. The payback period is
estimated at 4.1 years. The pre-tax IRR is estimated at 33% and the NPV at $488
million at a discount rate of 8%. (Mineral resources that are not mineral
reserves and do not have demonstrated economic viability). (See press release
dated November 21, 2011.)
The operation is scheduled to produce 26,606 tons of high purity (99.9% battery
grade) Li2CO3 and 206,670 pounds of Ta2O5 per year over a 17-year mine life.
The project hosts a current NI 43-101-compliant Indicated resource of 26.5
million tonnes of 1.30% Li2O Eq. or 0.98% Li2O and 163 ppm Ta2O5 and an Inferred
resource of 10.7 million tonnes of 1.14% Li2O Eq. or 0.86% Li2O and 145 ppm
Ta2O5.
Cautionary Statement Concerning Forward-Looking Statements
This news release contains "forward-looking information" within the meaning of
Canadian Securities legislation. Generally, forward-looking statements can be
identified by the use of forward-looking terminology such as "scheduled",
"anticipates", "expects" or "does not expect", "is expected", "scheduled",
"targeted", or "believes", or variations of such words and phrases or state that
certain actions, events or results "may", "could", "would", "might" or "will be
taken", "occur" or "be achieved". Forward-looking statements are based on
assumptions management believes to be reasonable at the time such statements are
made. There can be no assurance that such statements will prove to be accurate,
as actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place undue
reliance on forward-looking statements. Although the Corporation has attempted
to identify important factors that could cause actual results to differ
materially from those contained in forward-looking statements, there may be
other factors that cause results not to be as anticipated, estimated or
intended. Factors that may cause actual results to differ materially from
expected results described in forward-looking statements include, but are not
limited to those risk factors set out in the Corporation's year-end Management
Discussion and Analysis dated August 31, 2013 and other disclosure documents
available under the Corporation's profile at www.sedar.com. Forward-looking
statements contained herein are made as of the date of this news release and the
Corporation disclaims any obligation to update any forward-looking statements,
whether as a result of new information, future events or results or otherwise,
except as required by applicable securities laws.
Neither the 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Jean-Sebastien Lavallee, P.Geo.
President and Chief Executive Officer
819-354-5146
president@cecorp.ca
www.cecorp.ca
Investor Relations:
Paradox Public Relations
514-341-0408
The Howard Group Inc.
Jeff Walker
Senior Associate
1-888-221-0915
jeff@howardgroupinc.com
www.howardgroupinc.com
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