Nevada Energy Metals (TSXV: BFF) has entered into an option agreement on the Klone Group of mineral claims (1,400 ha) adjoining the Decar property owned by FPX Nickel (TSXV: FPX) located 100 km northwest of Fort St. James, British Columbia, in the Omineca mining division.
The optionor is Ursula Mowat, a professional geoscientist who has owned the property since 1987. She is a recipient of the H.H “Spud” Huestis Award (2015), along with Peter Bradshaw and Ron Britten of FPX Nickel, for “excellence in prospecting and mineral exploration” in recognition of their efforts in identifying and commencing development of a new type of nickel deposit exemplified by the Decar project.
Decar hosts the PEA-stage Baptiste deposit, a discovery of nickel mineralization in the form of a naturally occurring nickel-iron alloy called awaruite that is ideally suited for both stainless steel and battery metal applications.
Under the option agreement, Nevada Energy would acquire 100% ownership of the Klone Group claims by making a series of cash and share payments to Mowat for five years totaling C$305,000 and 550,000 common shares of the company.
Nevada Energy would also need to spend a total of C$1.2 million on exploring the property within the five-year period.
The Klone Group of mineral claims is underlain mainly by ultramafic rocks of the Mount Sidney Williams massif, which consist of serpentinized peridotite and hartzburgite, with pods of dunite and Cache Creek Complex andesitic volcanics and argillaceous schist. Metallic mineralization hosted within ultramafic rocks on the Klone Group include nickel, cobalt and chromium.
Systematic, ground-based exploration work began in the area of the Klone Group under the direction of Mowat in 1987, continuing intermittently until 2012. Mowat has retained all original maps and file data from this 25-year period.
The area of the Klone Group was included in Geoscience BC’s QUEST-West project, including multiparameter geophysical surveys, regional stream sediment re-analyses and data compilations between 2008 and 2009.
This modern exploration framework, combined with Mowat’s historical data and knowledge will be very useful for optimizing success in the company’s future exploration programs, Nevada Energy says.
Shares of Nevada Energy Metals surged 17.4% by noon EDT Tuesday. This gives the Clayton Valley-focused battery metals miner a market capitalization of C$1.4 million.