Sirius Resources completes acquisition of Polar Bear gold nickel project

Sirius Resources (ASX: SIR) has reported that all conditions relating to the purchase of Barrick Gold Corporation’s (TSX: ABX, NYSE: ABX) interest in the Polar Bear Joint Venture have been met and that the transaction has been completed.

This delivers 100% ownership of the project to Sirius. In accord with the terms of the agreement announced on 8th February 2010, Sirius has made the required cash payment of A$200,000 and has today issued 20 million ordinary shares to Barrick, representing 1.2% of Sirius’ expanded share capital.

The Polar Bear project covers an area of over 190 square kilometres between Higginsville and Norseman, Western Australia, and contains several major shear zones which control gold mineralisation further north including that at Avoca’s Trident deposit.

The project also contains the extensions of the Kambalda and Widgiemooltha ultramafic stratigraphy, which hosts significant nickel sulphide mines along strike to the north.

The area is relatively unexplored for nickel, partly due to it being largely concealed by shallow salt lake sediments and sand dunes, and partly because it has been the subject of complex gold focused ownership structures during the last 20 years.

This deal delivers full, clean title of the entire tenement package to Sirius, enabling a systematic nickel focused exploration program to commence.

Of particular interest to the company is the nickel sulphide gossan announced on 23rd February 2010, which confirms the prospectivity of the area for nickel sulphide mineralisation.

Sirius said its initial focus will be to define the extent of the prospective ultramafic rocks, as a precursor to locating and testing the prospective contact zones which are largely hidden beneath transported cover, and completely unexplored.

http://www.proactiveinvestors.com.au/companies/news/5950/sirius-resources-completes-acquisition-of-polar-bear-gold-nickel-project-5950.html