Inventus Mining Corp. (TSX VENTURE: IVS) announced on Nov. 27, 2019 it has signed a letter of intent with the secured creditor and principal shareholder of Flag Resources (1985) Ltd. (“Flag”) for the planned acquisition of the three mineral properties adjoining the 100 per cent-owned Sudbury 2.0 project.
Inventus intends to acquire 100 per cent of all the properties currently held by Flag for nominal share consideration and to a new 2 per cent net smelter return royalty interest, in a series of transactions over the coming months. The final terms and consideration for the acquisition are subject to, among other things, Flag shareholder approval and TSX-Venture exchange approval.
Inventus is expanding the Sudbury 2.0 project with the planned acquisition of the Wolf Lake, Cobalt Hill and Rathbun Lake properties (see Figure 1: http://www.inventusmining.com/s/IVS_Nov_27_2019.pdf).
Wolf Lake & Cobalt Hill Properties
The adjoining Wolf Lake and Cobalt Hill properties consist of a 3.5 sq. km block of mineral leases with historic high-grade gold and copper drilling intersections. Flag acquired the property in 1980 and conducted various drill programs until 2001, reporting many high-grade drill intersections up to 16.6 g/t gold over 22.4 m in Hole WL-90-03, and 2.5 per cent copper over 22.7 m in Hole WL-83-28. The Wolf Lake and Cobalt Hill occurrences are 1.2 km apart and occur along the same structure, said the release.
Earlier this year, in October 2019, Flag was granted a permit to drill several confirmatory drill holes in the mineralized areas.
Inventus collected five surface grab samples of mineralization from Cobalt Hill, which returned assays ranging from 0.02 to 0.25 per cent cobalt, 0.02 to 0.34 per cent nickel and 0.04 to 2.8 g/t gold. Grab samples are not representative of the mineralization hosted on the property. Potential for cobalt, nickel, platinum and palladium mineralization exists at Cobalt Hill and Wolf Lake, but was not evaluated by Flag’s exploration, said the release.