May 01, 2001
Kermode Tackles Tantalum
Kermode Resources is pleased to report that it has acquired an option on a highly prospective tantalum property in Northwestern Ontario. By a series of staged cash payments over the next 4 years of $103,000, the company can acquire 100% interest in the property subject to a 1.5% gross overriding royalty.
The 63 claim units cover 4 previously identified spectrometer responsive showings along strike to the north west of the main Pakeagama Lake pegmatite tantalum showing. This showing located along the northwest -- southeast trending Bear Head Structural Zone which marks the boundary of the Berens River (south) and Sachigo (north) geological subprovinces was discovered by the Province of Ontario's government geologists in the 1990's.
The Pakeagama Lake pegmatite and adjacent area has been described by the Ontario Geological Survey as "one of the best targets for tantalum and cesium exploration in Northwestern Ontario". The tantalum bearing pegmatites are associated with peraluminous two mica granitic intrusives which are found to be intimately related to the Bear Head Structural Zone, occurring at both the Pakeagama Lake Showing and on Kermode's optioned claims. The Pakeagama Lake Showing is also spectrometer responsive.
Tantalum exploration has become quite active with the recognition of the inherent unique electrical and other properties that have made them extremely valuable and reliable capacitor minerals in the personal communicator market, the high performance corrosion resistant metal alloys and medical prostheses. With only two primary producing sources (in Canada and Australia) from similar pegmatitic ores the supply of tantalum is very tight, limiting the growth of its consumption last year to 20% from the previous year. As prices spiked above US$ 400 / per pound recently (from U$40/ per pound in 1998), that consumption growth would have been higher if there was more metal to deliver.
Kermode's Director D. Neil Briggs, who is a past director of Tanco, the only primary Canadian producer of Tantalum, is confident that the company can uniquely adapt its state of the art exploration technologies to explore this property successfully for tantalum bearing pegmatites.
ON BEHALF OF THE BOARD OF DIRECTORS
"Donald G. Moore"
Donald G. Moore
President & Director
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