Noble Mineral Exploration Inc. (TSX-V:NOB, FRANKFURT: NB7, OTCQB:NLPXF) announced that it has entered into a binding Letter of Intent to acquire the Lucas Gold Project from Canada Nickel Company Inc. (CNC). The transaction involves Noble issuing 5,000,000 units valued at $0.06 per unit, with each unit consisting of one common share and one-half non-transferable common share purchase warrant exercisable at $0.15 per share for two years. CNC will retain a back-in right to purchase a 25% interest in the property after a trigger date, defined as the earlier of 36 months from closing, $5 million in exploration expenditures, or a change of control or sale of the property.
The Lucas Gold Project is located approximately 30 km north of Timmins, Ontario, a region known for over 75 million ounces of gold production. It is also 20 km northeast of the Kidd Creek Mine, which has produced over 150 million tonnes of ore in its 58-year history, and about 20 km east of the Crawford Nickel Resource being developed by CNC. The project is drill-ready with access via paved Highway 655, ample power and water, and a Memorandum of Understanding with local First Nations.
In 2018, Noble completed 15 diamond drill holes totaling 3,184 meters covering about 650 meters of a 1,700-meter gold mineralized structure identified from airborne surveys. The company located 37 historical drill-hole collars and twinned three of them. The project has six discrete IP anomalous trends requiring follow-up, with only one trend drilled to date. Gold mineralization is interpreted as structurally controlled lenses within a pyrite-plus-gold tuffaceous unit.
Vance White, President and CEO of Noble, stated: 'We are very pleased to be proceeding with the repurchase of an excellent gold prospect on which we know from past work carried out by Noble of an existing gold zone but also a number of untested parallel zones.' Future work will focus on further defining gold mineralization on the initial IP anomaly and testing the five undrilled IP anomalies.
The transaction remains subject to negotiation of a definitive agreement and approval from the TSX Venture Exchange. Qualified persons Stephen J. Balch, P.Geo., of CNC and Wayne Holmstead, P.Geo., of Noble have reviewed and approved the technical information in this news release. For more information, visit Noble Mineral Exploration Inc..
