Canoe Mining to Buy Hamlin IOCG Deposit

Canoe Mining Ventures Corp. (TSXV:CLV) announced the signing of binding letters of intent with Glencore Canada Corporatio, Rainy Mountain Royalty Corp., and Mega Uranium Ltd. for the purchase of a 100% interest in the Hamlin-Deaty Creek Property situated in the Shebandowan Belt 110km west of Thunder Bay, Ontario.

According to the company’s press release:

Current ownership of the Property is held in a joint venture between Glencore, Mega Uranium, and Rainy Mountain where Glencore is the operator and owner of a 51% interest, with Rainy Mountain and Mega Uranium each holding a 24.5% interest. The Property was initially acquired by East West Resource Corporation (now Rainy Mountain) in 2003 and a partnership was formed with Mega Uranium to explore and develop the Property. A total of 58 diamond drill holes were completed by 2006 which traced a 900m long and 100m wide breccia zone containing copper, gold, silver and molybdenum mineralization.  In 2011, Xstrata Copper (now Glencore) earned a 51% interest by spending $3.0 million in addition to the $1.5 million spent by previous operators. During 2009 to 2011, Xstrata Copper completed 23 drill holes, for a total of 7763m, which extended the deposit down to 200m below surface.

Duane Parnham, director of Canoe Mining commented:

The Hamlin property compliments our current holdings and furthers our strategic objective to consolidate the Shebandowan copper gold belt into a single major mining camp.  There are currently unprecedentedly low acquisition costs for metal deposits in Canada and this, together with a trend for major mining companies to divest their exploration and development projects, has enabled Canoe Mining to capitalize on current market factors and acquire a highly prospective project from Glencore. We envision that Canoe will benefit from being well positioned with an excellent copper gold mining project in the future when markets will potentially recognize a significant increase in this property’s valuation and reward Canoe for its efforts to enhance this asset.

Click here to view the full press release.