Who will profit when the chomite deposit comes to production?
- Fancamp in the form of a Gross Metal Royalty ( 2 to 4%) and other Payments.
- Bold Ventures with a 20% interest in the Black Horse claims
- KWG with 80 % of Bold's interest in the Fancamp Option.
The Black Horse
In 2010, Fancamp Exploration intercepted 210 metres of high grade chromite (43.5% Cr2O3) in between downhole depths of 800 and 1010 metres, followed by an intercept in a second hole from 711 to 819.4 metres downhole. These two intercepts, supplemented by a chromite intercept at downhole depths from 712.7 to 726.15 metres in a hole jointly drilled by Noront and Fancamp in 2008, demonstrate that a significant chromite deposit exist at depths below 500 metres, and remains to be delineated by drilling at shallower depths. A model was created that projects this deposit up-dip, which intersects surface coincident with a gravity anomaly that is the same gravity anomaly that contains Noronts Blackbird deposit 500 metres to the west. A drilling program that will trace this chromite deposit towards surface will be conducted in 2013.
Bold recently concluded a four-stage option to acquire the Black Horse claims from Fancamp Exploration Ltd., subject to Fancamp retaining a price-variable gross metal royalty (the “Fancamp Option”). Under the terms of an agreement now concluded between KWG and Bold Ventures, KWG can acquire up to 80% of Bold’s interest in the Fancamp Option by funding 100% of Bold’s earn-in expenditures and option payments. The current program has budgeted $2 million to drill the chromite horizon. An additional $1 million has been budgeted to drill nickel targets.
