Serpent River Property, Ontario
The Company entered into a Property Acquisition Agreement to facilitate an acquisition of 100% interest in ten mining claims (115 units-approx. 1,840 hectares) in the Sault Ste. Marie Mining Division, Elliot Lake area in Northern Ontario more commonly known as the Serpent River property.
Uranium mineralization on the claims is typical of the setting found at the past producing mines in the Elliot Lake camp.; namely, uraniferous quartz pebble conglomerates of the Mississagi Formation. After completing a drill program in the general area, Rio Algom Ltd., outlined a resource on the Serpent River property that they called the Pecors East Zone. They estimated (Ore Estimates Map, 1977) that the Pecors East Zone contains an indicated resource of 20,000,000 tons grading 0.037% (0.74 lbs./t) U308 or 14,800,000 lbs. U308. This resource estimated is based on limited drilling and there is potential to expand the Pecors East Zone on the property.
The resource estimate 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.
Rio Algom mined more than 100 million pounds of U308 from similar deposits in the Elliot Lake camp and its compilation is generally considered reliable according to local industry standards.
Montoro’s drilling at Serpent River found uranium values in the mineralized quartz pebble conglomerates consistent with historic results. Montoro also intersected mineralized aplite dykes and sills below the conglomerate beds, as well as highly altered mineralized breccia along the unconformity between the Archean basement rocks and overlying Proterozoic sediments.
Significant rare earth values accompany the uranium mineralization. Elliot Lake was a major producer of yttrium as a by-product of the uranium production. Immediately west of the Serpent River project, neighbor Pele Mountain Resources (TSX.V: GEM) is advancing its Eco Ridge uranium-REE project, and in July 2011 it announced the positive results of a Preliminary Economic Assessment. Pele Mountains’ testing indicates good recoverability of REE’s, and similar results could be expected from the Serpent River mineralization.
But the uranium and rare earths at Serpent River may prove to be a sideshow to another deposit type. In a 2009 summary of Ontario Geological Survey field work, a strong geophysical anomaly on the claims that was previously thought to be caused by an iron formation was reexamined. The new interpretation of the Pecors anomaly concludes it may be the result of contact style nickel-copper-PGE mineralization similar to that found to the east at Sudbury. Sediment sampling from Pecors Lake has shown high levels of nickel and chromium, lending further weight to the new analysis.
Montoro commissioned a geophysical specialist to further interpret the airborne survey data, and the resulting 3D representation of the anomaly shows a length of seven km and width of three km, with an estimated depth of almost two km.