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Fjordland Exploration announces South Voisey's Bay project update

Mining News - Published on Mon, 20 May 2019

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Fjordland Exploration Inc announced an update regarding exploration of the South Voisey's Bay nickel-copper-cobalt project located 80 km south of the producing Voisey's Bay Mine in Labrador. Commander Resources Ltd, the project operator, has received and deposited to FEX's project account the sum of USD 167,740. The government of Newfoundland and Labrador provided a grant under their Junior Exploration Assistance Program of USD 97,875. In addition, a reimbursement of certain prepaid tenure assessment obligations of USD 69,865 was received.

With respect to funding, FIPX BC Floldings Ltd has executed an Investment Agreement with FEX on September 5, 2017 which obliged FIPX to provide certain option payments and exploration expenditures in order to qualify for a 65% project interest. The underlying option and investment agreements (refer to news release NR17-06 dated August 28,2017) contain two key deadline dates for funding of exploration expenditures, specifically October 31, 2021 prior to which $3,000,000 in exploration expenditures are to be incurred in order for FEX to move to a 75% project interest (currently a 35% interest has been earned). The final deadline is October 31, 2024 to expend a further USD 5,000,000 on exploration at which time FEX would have earned a 100% interest. If HPX funds USD 7.4 million of this program in addition to making USD 290,000 of option payments to CMD, FEX would have the obligation to transfer a 65% project interest to HPX.

The exploration agreements stipulate that government grants, when received are to be expended and credited to the earn-in obligations. FEX intends to comply with this condition and estimates that the Company will then be within USD 230,000 of meeting the exploration requirements to advance to a 75% project interest.

A relatively modest exploration program is planned for 2019, financed with funds currently in the project account. This program will consist of re-logging of historical core and geological mapping of prospective drill locations. Work will also focus on collecting rock properties data such as density measurements to aid in the ongoing re-interpretation and processing of historical datasets. This will allow the revision of the extensive gravity dataset for future drill targeting.

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Posted By : Rabi Wangkhem on Mon, 20 May 2019
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