Montoro entered into a Property Acquisition Agreement that facilitates IMT’s acquisition of a 100% interest in the Cup Lake/Donen Uranium deposit located in the Greenwood Mining Division in south-central British Columbia.
Previous exploration programs outlined two mineralized areas at Cup Lake/Donen.
As reported in B.C. Government – Minfiles work prior to 1980 consisted of a total of 5,486 metres of diamond drilling, geological mapping and testing. The deposit has been described as miocene fluvial sediments underlying the basalts, unconsolidated, interbedded arkosic sandstones, siltstones, carbonaceous mudstones, and basal conglomerates. These sediments occur as structurally controlled ‘paleochannels’, which are host to Uranium deposits. This work was carried out for the Power Reactor and Nuclear Fuel Development Corporation of Japan.
The northern mineralized zone reportedly measures about 1500 by 500 metres with an average reported grade of 0.042 per cent Uranium over an average thickness of 1.8 metres; the southern zone measures about 1500 by 150 metres with an average reported grade of 0.024 percent Uranium over a 0.7 metre thickness. B.C. Government Assessment Report #8105, reports total drill indicated reserves estimated to be 2.25 million tonnes grading 0.0373 per cent Uranium to yield 840,000 kilograms or 1,851,000 pounds of Uranium (2,178,000 pounds of U308).
The resource estimates cited above predates and therefore does not conform to the more stringent reporting requirements of National Instrument 43-101 and should not be relied upon according to those standards. IMT has not yet done exploration work to verify or classify the historical estimates as a current mineral resource and the Company is not treating the historical estimates as a current mineral reserve or resource.
The Cup Lake/Donen Uranium deposit occurs within a northwest trending paleochannel. The claims hosting the Cup Lake/Donen Uranium deposit adjoin to the northwest the claims hosting the Blizzard uranium deposit. Boss Gold International Corp. (“BOG.H”) recently announced a $105 million acquisition of the Blizzard Uranium deposit from Santoy Resources Ltd. (“SAN”) and various private individuals. The Blizzard Uranium deposit 1979 feasibility was the result of 21,184 metres of drilling in 478 reverse circulation and diamond drill holes completed on the deposit. Kilborn Engineering issued an engineering feasibility study in August 1979, based on the extensive drilling and engineering studies on behalf of a joint venture comprising Norcen Energy Resources, Lacana Mining Corporation, Campbell Chibougamau Mines, E&B Explorations and Ontario Hydro.
The Cup Lake Property Acquisition Agreement provides for the acquisition of nine (9) additional mineral claims and settles any rights to the Ballistic claims previously acquired, with the total claim area now comprising eleven (11) contiguous claim blocks totalling 1026 hectares.
The terms of the Agreement provide that IMT will issue a total of 6.0 million common shares in stages annually up to December 1, 2008, with the first 2.0 million shares within ten days of TSX acceptance for filing of this Agreement; a total of $1.0 million in cash payments staged annually up to December 1, 2009, with the first $250,000 upon TSX acceptance for filing of the Agreement with a further $250,000 on the earlier of the closing of IMT’s first major financing in excess of $1 million following acceptance for filing of this Agreement, or December 1, 2010.
IMT has agreed to expend up to $800,000 in exploration and development expenditures in stages over four years to December 1, 2010. IMT earns an interest in the Cup Lake/Donen uranium deposit in stages upon the completion of share issuances, cash payments and exploration expenditures with its first 25% interest to be earned by December 1, 2007. Upon a positive feasibility study being issued on a Uranium deposit within an area described in the Agreement, IMT will pay a further $1,000,000 in cash or shares at the option of IMT, at a price based on the 30 trading day closing price average preceding the day of the feasibility study completion. A royalty has been reserved in favour of the vendors, Anthony Beruschi and three private B.C. companies, and Mr. Beruschi has retained the marketing rights to Uranium produced from the Cup Lake/Donen Uranium deposits.
IMT believes that the historical estimates provide a favourable indication of the potential of the Cup Lake/Donen Uranium deposit, and intends to embark on an extensive due diligence exploration program, and will be commissioning a NI 43-101 Report immediately.
In March 2009 the Government of the Province of B.C. issued an Order in Council prohibiting the Chief Mines Inspector from issuing work permits in respect of uranium and thorium development—a ban.
The Company has launced a claim seeking compensation for the property expropriated including:
- Damages for loss of value incurred ($1.9 million);
- Damages for disturbance of IMT’s business;
- Damages for expenses incurred and other costs.