Metal Energy (TSXV: MERG) has earned a 49% interest in the former Manibridge mine in the Thompson Nickel Belt of northern Manitoba. The company has elected to continue exploration to earn a 70% share.
Metal Energy has an option to earn 100% of the project from owner and exploration manager CanAlaska Uranium (TSXV: CVV).
The former mine produced 1.3 million tonnes of ore grading 2.55% nickel and 0.27% copper from 1971 to 1977. The current 3,000-metre drill program will test several targets within 1 km of the former mine. Metal Energy is entirely funding the program.
The Manibridge project is thought to have numerous high-grade ore zones within a mineralized envelope. Drilling in 2019 returned 12.06% nickel from 128 to 129 metres down hole. This occurred within a broader interval from 128 to 134.6 metres that assayed 2.75% nickel. High-grade mineralization – 6.1% nickel – was also encountered from 133.8 to 135.3 metres.
Metal Energy will earn a 100% interest in the project when it has funded C$4 million in work, made cash payment to CanAlaska of C$180,000, and issued C$275,000 worth of common shares. An additional 6.5 million shares will be issued to CanAlaska in three defined earn-in stages over 36 months. Exploration at the project is fully permitted.