Jun 21, 2001
Tantalum Property Acquisition
Kermode Resources Ltd. is pleased to report that it has acquired an option on a highly prospective tantalum property located at Donner Lake 25 kilometres north northwest of Tanco's Bernic Lake Mine in south central Manitoba, Canada's only primary producing tantalum mine. By a series of staged stock payments over the next 15 months totaling 100,000 shares, Kermode will acquire 100% interest in the property subject to a 2% royalty.
The 2 claim units totaling 117 hectares, cover a group of tantalum bearing pegmatites that have reported assays of grab samples containing between 0.046% (0.92 lbs per ton) to 0.67% (1.34 lbs per ton) tantalum pentoxide (or tantalite, Ta205). The average of five grab samples is 0.057% (1.14 lbs per ton) Ta205. This group of pegmatite dykes has been traced by outcrop mapping and is coincident with a lithium bedrock geochemical anomaly. The bedrock lithium geochemical sampling exploration program was completed in the late 1970's and lithium is a significant pathfinder indicator for tantalum mineralization.
Other untested lithium geochemical anomalies have been discovered on the claims that are related to extensions of known dykes of pegmatites located on the adjacent Tanco owned property. Large volumes of pegmatite with reported grades of 1.25% to 1.30% lithium oxide were reportedly defined by drilling prior to Tanco's ownership.
Some pegmatites in the Donner Lake area show differentiation levels approaching that of the Bernic Lake (Tanco) area and therefore have a high potential for the discovery of significant tantalum mineralization.
Kermode's director D. Neil Briggs, who is a past director of Tanco, recognized this property with its association of highly differentiated tantalum bearing pegmatites and untested lithium geochemical anomalies to be one of the more advanced exploration prospects for tantalum available.
Tantalum exploration is attracting numerous junior exploration companies, as the price increase witnessed over the past two years remains buoyant. There are currently only two primary tantalum producing countries, Canada and Australia. Kermode's entry into the race for discovery of similar pegmatite mineralization is timely and has the potential to be extremely rewarding.
ON BEHALF OF THE BOARD OF DIRECTORS
"Donald G. Moore"
Donald G. Moore
President & Director
No Stock Exchange Has Approved or Disapproved The Information Contained Herein