BOWMORE to Acquire Brunswick Belt Zinc Property in New Brunswick, Canada
Published: March 16, 2017 |
Bowmore Exploration Ltd. has signed a formal purchase agreement to acquire, from a private owner, 100 percent of the Brunswick Belt Property, a strategic zinc property located within the world-class Bathurst Mining Camp of New Brunswick, Canada.
The project is composed of four claim groups for a total of 586 claims covering approximately 12,892 hectares (129 sq kilometers) and is located in Gloucester County, roughly 25 km south west of City of Bathurst, and surrounds the original Brunswick No. 6 and No.12 mines, operated by Glencore Canada until closure in 2013.
“We are very pleased with the acquisition of the Brunswick Belt property. We have succeeded in securing a prime property in one of the most prolific historical zinc belts in Canada from a single landowner. This acquisition will allow us to diversify our portfolio by giving Bowmore exposure to the base metal market, particularly zinc given the improving price and lack of global resources for this increasingly valuable commodity. The zinc market has gained substantial value in the last year and the consensus is that the demand for zinc will continue to rise while the supply will tighten due to extremely low inventories, mine closures and very few development projects in the pipeline,” said Paul Dumas, president of BOWMORE.
Pursuant to the purchase agreement between the private owner and Bowmore Exploration Ltd., the company will acquire 100 percent interest in the project and will have the exclusive rights to explore and develop the project by issuing to the owner 2,750,000 common shares of the corporation. Under the terms of the purchase agreement the company will have no further financial obligations to the owner, Bowmore will retain 100 percent of all net smelter royalties (NSR) from the proceeds of any commercial production and will not be encumbered with any area of interest. The common shares issued to the vendor in counterpart of the acquisition will be escrowed for a period 18 months with a release period every 6 months.
• The extensive Brunswick Belt Project covers portions of the strike length that hosted both the former Brunswick No.12 and No.6 mines, the most prolific geology in the Bathurst Camp. The Brunswick No 12 Mine produced 137 million tons of ore grading 8.74 percent zinc, 3.44 percent Pb, 0.37 percent Cu, and 102 g/t Ag.
• Brunswick No. 12 mine produced for a period of 49 years from 1964 to 2013 and was the world’s largest underground zinc mine.
• Historically a significant amount of previous exploration work was performed by Brunswick Mining and Smelting, Noranda, Xstrata, Glencore and most recently Votorantim. At that time the objective was to find additional mill feed for the Brunswick No.12 concentrator that produced at a rate of 10,500 tpd.
• The Brunswick Belt warrants exploration for smaller scale standalone operations within this highly prospective brownfield Brunswick horizon geology. The Brunswick Belt Project is adjacent to the north, south and west of both the former No. 12 & No. 6 mines.
• Thrust fault repetitions of the favorable Brunswick horizon are present to the west and have had significantly less exploration work performed on them.
• The Brunswick Horizon to the south and west of the Brunswick No. 6 mine has also had limited work performed on it. The Gilmour South occurrence amongst others merit further exploration work.
“New Brunswick is one of Canada’s top mining jurisdictions and among the top ten in the world, according to Fraser Institute’s annual mining survey. Canada is also among the top ten zinc producers in the world as per the most recent data from US Geological Survey,” added Dumas.
BOWMORE is a Canadian exploration mining company focused on precious and base metal exploration within Canada.
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