Texmont Leases and Texmont Claim

The Texmont Property sits on the boundary of Bartlett and Geikie Townships in the Porcupine Mining Division of Ontario, Canada. The approximate center of the Property is at latitude ~ 48° 09’ 55” N and longitude ~ 81° 12’ 15” W (NAD 83, UTM Zone 17N, ~ 484820m E, ~5334690m N, and NTS 42A/03).

The Property comprises fourteen (14) contiguous mining leases, the “Texmont Leases,” that are subject to an agreement between Fletcher and New Texmont Explorations Ltd. (the “Purchase Agreement” discussed in Item 3.2 herein) and one (1) mining claim, the “Texmont Claim,” that is 100% owned by Fletcher with areas, due dates, mining and surface rights.

Texmont Historic Reports – Leigh 1971 Report

The most recent drill-indicated “reserve estimates” (filed and stamped by the Ontario Securities Commission on February 29, 1972) are those of Leigh with a built-in 10% dilution factor assuming that the zones were amenable to longhole stoping. Leigh’s estimates of “proven” and “drill-indicated” ore reserves at a cut-off grade of 0.7% Ni are shown in Table 7 below.

Leigh’s 1971 Calculations - filed with the Ontario Securities Commission.

Summary of Exploration Work at former Texmont Mine

Textmont - Drill Intersections:

Longitudinal Section former Texmont Mine with drill intersections (“Ore lenses” by Texmont Mines Ltd; calculation blocks made by INCO Ltd.) The INCO longitudinal section is the only one of this type available. Leigh’s 1972 plan and detailed longitudinal section data are lost.

Location of recent test drilling near former Texmont workings, although three holes entered openings, a highly significant envelope of disseminated mineralization was encountered in areas unmined. Longitudinal section used is a composite of surviving information.

Click here to enlarge

Click here to download a copy of the Texmont model (and the program to view it)

Texmont Property

Acquisition of the Texmont Leases : Pursuant to an agreement dated March 15, 2006 between the Corporation and New Texmont Explorations Ltd. (the “Purchase Agreement”), the Corporation purchased the leasehold interest of New Texmont Explorations Ltd. in 14 contiguous mining leases located in Bartlett and Geikie Townships, Porcupine Mining Division, Ontario (the “Texmont Leases”), comprising the larger part of the Texmont Property.

Underground workings and the remains of surface facilities, the former “Texmont Mine,” with currently non-compliant NI43-101 nickel sulphide “resources” occur in close proximity to a former mineshaft on the Texmont Leases. All of the “resource” calculations listed below give broadly similar results, but are non-compliant using modern CIM Definition Standards on Mineral Resources and Mineral Reserves adopted by the CIM Council (or as amended). In a G.L. Colgrove memorandum supplied by INCO Ltd. (now CVRD-INCO, with permission, dated February 26, 1966), and based on data available around the commencement of mining, calculations by H.A. Pearson and Colgrove gave 2,990,000 tons grading 0.94% Ni in the categories “firm,” “probable” and “inferred.” In a J.E. Mullock memorandum supplied by INCO Ltd. (with permission, dated April 10, 1967) a calculated 3,139,700 tons grading 0.92% Ni was determined using similar categories. Mullock’s longitudinal section and his detailed calculations are the only historical data of this type that have survived (in the INCO filing system).

In a report dated May 21, 1970, H.A. Pearson P. Eng., then vice-president exploration for Texmont Mines Ltd., outlined 3,800,000 tons of “resource” at a grade of 1% nickel (after dilution) to a depth of 1,600 feet – calculations based on systematic channel sampling of underground workings to correct a statistical under-reported grade in diamond drilling. On February 29, 1972, Orval E. Leigh P.Eng of Derry, Michener and Booth filed a report with the Ontario Securities Commission outlining a total of 3,190,000 tons of “proven” and “drill-indicated” “ore reserves” at a grade of 0.92% Ni. None of the plans, sections or detailed block calculations used for these reports has survived.

In 2004, Fletcher completed a number of preliminary scoping studies and sensitivity analyses to determine hypothetical mine start-up costs, including estimates for systematic drilling to create categories as defined by NI43-101 using modern CIM Definitions. A preliminary drilling budget of $3,500,000 was estimated to outline the extent of the mineralized envelope. Detailed drilling budgets await the input of previous drill logs into a comprehensive computer ore model for the 3D location of intersections. It is important to note that whole sets of previous drill logs are missing and it is uncertain whether all sulphide-mineralized sections were assayed by former owners of the Property - no written drill log comparison can be made with many of the drill holes and assays seen in the available plans and sections.

The Texmont Property is embedded in the “Timmins nickel camp” with known deposits and mines to the north, NE, south, SE, and NW. Mineralization on the Texmont Property has characteristics similar to “Type II - stratabound internal deposits” (model of Lesher and Keays, 2002). Previous geologists also observed other “Type II” mineralization outside the outlined historic “resources.” A budget totalling $3,500,000 has been prepared to find the extent of the mineralized envelope on the Texmont Property.