May 17, 2001
Kermode Takes Ten More Tantalum Properties
Kermode Resources is pleased to report that it has acquired an option on ten highly prospective tantalum properties in Northwestern Quebec. By a series of staged cash and stock payments (subject to CDNX approval) over the next 3 years of $55,000 and 100,000 shares, Kermode can acquire 100% interest in the property subject to a 2% net smelter royalty. The properties total 4,300 hectares in 105 claim units in 10 separate properties. The ten properties are all in the Preissac-Lacorne area approximately 45 kilometres northwest of Val D'Or in the Abitibi region of Quebec. The Preissac-Lacorne area is best known for its past production of lithium and molybdenum and has been little explored for tantalum.
The ten properties each contain reported pegmatites and each contains previously identified showings of rare earth metals and/or tantalum. Columbite-tantalite crystals have been reported on eight of the properties associated with or in the pegmatitic rocks.
Kermode's Director D. Neil Briggs, who is a past director of Tanco, the only primary Canadian producer of Tantalum, has recognized the association of various rare earth elements including lithium, beryllium and cesium. Their presence on these properties is encouraging and the company will be able to integrate its state of the art exploration technologies to evaluate the tantalum bearing pegmatites on these properties.
Tantalum exploration has recently become quite active in Canada with the recognition of the inherent unique electrical and other properties that have made tantalum an extremely valuable and reliable component of capacitors in the personal communicator market, the high performance corrosion resistant metal alloys and medical prostheses. With only two primary producing sources (in Canada and Australia) from similar pegmatitic ores the supply of tantalum is very tight, limiting the growth of its consumption last year to 20% from the previous year. As prices spiked above US$ 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.
ON BEHALF OF THE BOARD OF DIRECTORS
"Donald G. Moore"
Donald G. Moore
President & Director
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