Noble Mineral Exploration Inc. (TSX-V:NOB, FRANKFELD: NB7, OTCQB:NLPXF) announced 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 to CNC, with each unit valued at $0.06 and consisting of one common share and one-half warrant exercisable at $0.15 per share for two years. CNC will also retain a back-in right to purchase a 25% interest in the property by paying Noble four times the exploration expenditures incurred, exercisable after the earlier of 36 months, $5 million in exploration spending, or a sale or change of control of Noble.
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 lies 20 km northeast of the Kidd Creek Mine and 20 km east of the Crawford Nickel Resource being developed by Canada Nickel. The project is drill-ready with access via paved Highway 655, ample power and water, and a Memorandum of Understanding with local First Nations. Noble previously completed 15 diamond drill holes totaling 3,184 meters in 2018, covering 650 meters of a 1,700-meter gold-mineralized trend. The drilling intersected gold mineralization, with highlights including 4.07 g/t Au over 12.0 meters (hole LUC-18-09) and 1.22 g/t Au over 33.0 meters (hole LUC-18-14). Six discrete IP anomalous trends have been identified, but only one has been tested by drilling, leaving significant exploration potential.
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.” Stephen J. Balch, P.Geo., VP Exploration of Canada Nickel, and Wayne Holmstead, P.Geo., have reviewed and approved the technical information as qualified persons under NI 43-101. The transaction remains subject to negotiation of a definitive agreement and approval from the TSX Venture Exchange.
