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Abstract
Strategically surrounding the past producing Black Donald Graphite Mine (1896-1954), this very large property (approx. 9000 ha) encompasses a substantial area of favourable marble +/- paragneiss geology and contains or adjoins numerous historical graphite occurrences. The Black Donald Graphite Mine was one of the largest and richest graphite deposits in North America and was extremely high grade with historic ore grades of up to 80% graphitic carbon ("Cg"). During the last 10 years of mine life the average reported grade was 25-30% Cg. Some 94% of the total value of Ontario graphite production came from the Black Donald Mine.
The immediate area of the graphite prospect was last explored in 1989 by consulting firm Derry, Michener, Booth and Wahl (DMBW) on behalf of Harrington Sound Resources Inc. in a comprehensive program including; geological mapping and prospecting, trenching, channel sampling and ground geophysics. This work showed the Little-Bryan graphite mineralization to be hosted by pyritic gneisses. Graphite mineralization extends over approx. 1.3 km in a general east-west direction in surface outcrop on their line grid. DMBW noted that, "... results from 11 grab samples... are very encouraging ranging from 0.63% Cg to 34.06% Cg with an average grade of... 10.94% Cg." Ground electromagnetic surveying (VLF EM-16) showed a number of "conductive trends", some of which correlate with the known graphite mineralization.
Orocan has an option to earn a 100% interest in the three graphite properties from Zimtu Capital Corp., [Bill Brereton, P.Eng.] and Paul Sobie, (collectively the "Vendors") by making the following payments and issuing the following common shares to the Vendors: (i) $25,000 and 700,000 common shares on receipt of the TSX Venture ("TSXV") acceptance of the Definitive Option Agreement; (ii) 300,000 common shares 6 months from TSXV acceptance: (iii) 500,000 common shares 12 months from TSXV acceptance; and (iv) 500,000 common shares 24 months from the date of the TSXV acceptance of the Definitive Option Agreement. The Vendors will retain a 2% Net Smelter Royalty ("NSR") on the properties which can be purchased for CDN $1,000,000. The agreement remains subject to acceptance by the TSXV. A finder's fee will be payable with respect to the transaction pursuant to the policies of the TSXV.