Wyloo Metals Pty Ltd (Wyloo Metals) has announced a C$25 million option and joint venture agreement with Canadian-based Orford Mining Corporation (Orford) (TSX-V:ORM) over Orford’s 100 per cent owned West Raglan nickel project located in Nunavik, Quebec (the Project).
West Raglan covers an area of approximately 663 km² in one of the last remaining areas of the prolific Cape Smith Belt that has not undergone systematic, modern day exploration. The Project is located in the west-central portion of the belt which is also home to Glencore’s Raglan Mining Operations and Canadian Royalties’ Nunavik Mine. Historic exploration at West Raglan identified Ni-Cu-Co-PGE mineralisation hosted in ultramafic units over a strike length of approximately 35km. Six significant discoveries have been made on the property at shallow depths, with the best results being from the Frontier Zone which contains five high grade mineralised lens with grades in the range of 2-3 per cent nickel, 1 per cent copper and 2+gpt PGE.
In accordance with the terms of the agreement, Wyloo Metals has an exclusive and irrevocable right and option to acquire up to 80 per cent of the Project for total expenditures of C$25 million over a seven-year period. Wyloo Metals’ investment includes a C$1.7 million approved work program to be implemented over the summer of 2021 and includes new ground geophysics, geological mapping and geochemistry surveys.
This agreement is Wyloo Metals’ third Canadian investment, and follows several similar strategic investments aimed at supporting the discovery of critical battery-related commodities. In December 2020, Wyloo Metals announced a deal to become a cornerstone investor in Noront Resources which is developing the world-class Eagle’s Nest nickel project in the Ring of Fire.
Head of Wyloo Metals, Luca Giacovazzi, said the agreement provides a strategic opportunity for Wyloo Metals to join forces with Orford to accelerate exploration of the West Raglan project and unlock its enormous potential.
“Continuing the discovery of metals like nickel is critical to achieving a low carbon future, which is why we are committed to supporting exploration. To maximise our chances of discovery, we know that we need to be exploring in proven endowed mineral belts. This is why we are so excited about West Raglan. We’ll be using modern technologies to look deeper and more effectively than others before us, as we search for the next great Canadian nickel discovery,” Mr Giacovazzi said.
David Christie, President and CEO of Orford, said the company is excited to have found a proven partner for its West Raglan Project.
“The West Raglan Project is one of the few nickel sulphide projects in the world that is drill-ready in a proven nickel belt. Nickel and cobalt markets have seen a resurgence as the electric vehicle battery market continues to grow demand for these metals. We look forward to working with Wyloo Metals towards further discovery of nickel on the West Raglan Project,” said Mr Christie.