MONTREAL, QUEBEC--(Marketwired - Dec. 5, 2013) - Canada Strategic Metals Inc. ("Canada Strategic Metals" or "the Company") (TSX VENTURE:CJC)(FRANKFURT:YXEN)(OTCBB:CJCFF) is pleased to announce that it signed a formal agreement today with Strateco Resources Inc. ("Strateco") (TSX VENTURE:RSC) on the Apple property in the James Bay region of northern Quebec. The agreement, which is effective immediately, provides for Canada Strategic Metals to acquire 100% of the Apple property, wholly-owned by Strateco, in consideration of $10,000 and 4,000,000 shares of the Company. The agreement also provides for a 2% NSR royalty payable to Virginia Mines Inc., half of which can be bought back for $1.0 million. The agreement is subject to regulatory approval. The common shares issued to Strateco, will be subject to resale restriction periods as follows:
- 800,000 common shares within four months of TSX-V approval of the Agreement;
- 800,000 common shares within nine months of TSX-V approval of the Agreement;
- 800,000 common shares within 12 months of TSX-V approval of the Agreement;
- 800,000 common shares within 18 months of TSX-V approval of the Agreement; and
- 800,000 common shares within 24 months of TSX-V approval of the Agreement.
The Apple property consists of 147 claims covering 75 squares kilometres located 80 km southeast of Radisson in the James Bay region. The property is accessible by a 40 km winter road from km 510 on the paved James Bay road. In summer, the property can be accessed by boat from the Trans-Taïga road.
The project covers a portion of the Apple Formation, which came to light in the early 1970s with the discovery of several extensive uranium-pyrite matrix, quartz pebble conglomerate zones.
The Apple uranium deposit was in fact discovered in 1971 during an airborne survey. The International Nickel Company of Canada Limited ("INCO") and James Bay Development Corporation subsequently conducted an extensive joint exploration program from 1972 to 1975, with INCO as the operator. A total of 65 holes were drilled for a total of 14,000 metres, and the uranium conglomerates were traced over a distance of eight kilometres along an East-West axis.
In 1974, INCO performed a resource estimate on a one-kilometre section covering seven subvertically-dipping zones. The historical estimate yielded 9,365,000 tons grading 0.054% U3O8 or 1.08 lb/ton for a total of 10.1 million pounds (GM 57894). This resource includes 4.3 million tons categorized as proven and probable and 5.0 million tons categorized as possible (a qualified person has not done sufficient work to classify the historical estimate as current mineral resources, the issuer is not treating the historical estimate as current mineral resources). The literature (Robertson et al. 1986) reports a resource of 8.5 million tons grading 0.052% U3O8 (8.8 million pounds of U3O8) contained in a six-metre by one-kilometre wide envelope extending to a depth of 300 metres, and remaining open at depth (a qualified person has not done sufficient work to classify the historical estimate as current mineral resources, the issuer is not treating the historical estimate as current mineral resources). A correlation was established between the highest uranium grades and the pyrite content. INCO dropped the property in 1975, and it has not been explored for uranium since.
In addition to the subsequent uranium-related work done by Strateco, Virginia Gold Mines explored the property between 1998 and 2001 to assess its gold potential. Very interesting showings were discovered, although no drilling was done.
Notable among the showings was the Buck showing discovered in an iron formation in 1998, which returned 20.15 g/t Au and 2.59 g/t over 3.5 metres from channel sampling. Another showing discovered at the contact of volcanic rocks and a pegmatite in the summer of 2000 returned 23.82 g/t Au and 4.73 g/t Au in grab samples.
Several ultramafic horizons with anomalous PGE (platinum and palladium) values were also identified by the work done in 2000. The best results were 491 ppb Pt and 2,347 ppb Pd.
The presence of albitized pegmatite with a quartzose core is also notable, with a halo of intense, pervasive tourmalinization, prismatic beryl crystals and proximity to ultramafic rocks with chromite mineralization (chromiferous actinolite was observed in skarned ultramafic rocks), which constitute the elements required to form emeralds.
Jean-Sebastien Lavallée (OGQ #773), geologist, shareholder and President and Chief Executive Officer of the Company and a Qualified Person under NI 43-101, has reviewed and approved the technical content of this release.
About Canada Strategic Metals
Canada Strategic Metals is an emerging company focused on the exploration and development of it's a number of projects covering over 60,000 hectares throughout Quebec. With broad management experience in green technology and junior resource exploration and development, Canada Strategic Metals is well positioned to aggressively advance this promising portfolio for its shareholders.
For more information on the Company, please visit www.csmetals.ca.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact Information:
President & Chief Executive Officer
819-354-5146
Paradox Public Relations
514-341-0408