Wallbridge Mining (TSE:WM) said Thursday it plans to carry-out a $1.6 million drill program with partner Impala Platinum Holdings on its joint venture Parkin Offset properties in Sudbury.
The 5,000 metre drill program will broaden the platinum, palladium, gold, copper and nickel mineralization at the Milnet 1500 zone and test targets on other parts of the property package, which covers a 9.4 kilometre strike length of the Parkin Offset Dyke in Sudbury.
"We are very pleased to have the continued support of Impala as we resume drilling on the Milnet 1500 zone", said Alar Soever, chief executive of Wallbridge.
"We look forward to being able to delineate the true size potential of this zone. Parkin Offset Dyke hosted deposits are very attractive, high value, exploration targets."
Wallbridge said drilling will target borehole electromagnetic conductors extending up-plunge from the Milnet 1500 zone, discovered in 2009 beneath the past producing Milnet Mine, which has historic production of 157,130 tons at a grade of 2.25 grams per ton of platinum, 1.54% copper and 1.49% of nickel.
Most recently, wedge cut hole WMM-014-W2, intersected a first zone with 8 meters holding 0.78 g/t of platinum, 1.01 g/t palladium, 0.32 g/t gold, 1.05% copper and 0.72% nickel. The wedge cut was the second follow-up from the discovery hole in late 2009, which returned 14.24 metres containing 1.50 g/t platinum, 2.52 g/t palladium, 3.99 g/t gold, 2.57% copper and 0.78% nickel.
Additionally, drilling will also test several compelling targets within similar but less explored portions of the dyke, further north of the Milnet 1500 zone and Milnet Mine, Wallbridge said.
Under the amended option and joint venture deal, Impala – the world’s second biggest platinum producer – will chip in $1.2 million to the 2011 drill program with Wallbridge adding $0.4 million.
After the drill program is completed, Impala will have earned a 50% stake in the Parkin Offset Dyke property package, and can boost its interest to 65% if it funds a feasibility study.
The property package optioned to Impala includes the Milnet Mine property, owned 100 % by Wallbridge, a southern block of claims held 98.5 % by Wallbridge and 1.5 % by Xstrata Nickel, and two blocks of claims on either side of the Milnet Mine property, which are subject to a joint venture agreement with Champion Bear Resources.
In other news, Wallbridge also reported that it has completed the sale of 950,000 shares of its spin-out company Duluth Metals (TSE: DM), raising $2.53 million.
The proceeds will be used for an investment in Miocene Metal’s initial public offering as well as other corporate initiatives, Wallbridge said in a statement.
"The Duluth shares remain a core asset for Wallbridge and with 10 million shares, we remain Duluth's second largest shareholder, behind only Antofagasta, which is earning a 40% interest in Duluth's Twin Metals project in Minnesota,” said Warren Holmes, chairman of Wallbridge.
"We are also however, very excited about the prospects for Miocene Metals, in which we hold 21.3 million shares. This new funding will allow us to ensure the success of their IPO, thereby unlocking the value in our investment in that company."
Miocene Metals is another spin out of Wallbridge, which was formed to finance the exploration of a portfolio of copper-gold-molybdenum properties in southwestern British Columbia.
Wallbridge Mining is a mineral exploration company specializing in base metals and precious metal exploration in Canada. Its primary properties are situated in Sudbury, Ontario.