Radisson Mining Resources Inc.

Radisson Mining Resources Inc.

September 04, 2007 08:00 ET

Radisson Mining Resources Options a Quebec Nickel, Copper and Gold Property and Plans to Reactivate the O'Brien Mill

ROUYN-NORANDA, QUEBEC--(Marketwire - Sept. 4, 2007) - Radisson Mining Resources ("Radisson" or the "Company")(TSX VENTURE:RDS) is pleased to announce that it has entered into a non-binding Letter of Intent ("LOI") to provide the Company the option to acquire the RM Nickel property, located about 30 km west of Rouyn-Noranda upon signing of a binding Option Agreement. The terms of the proposed Option Agreement, subject to approval of the TSX Venture Exchange, include a cash payment of $250,000 and the issuance of 2,000,000 Class A shares of Radisson to the claim holders over a period of approximately 18 months from signing of the agreement. Radisson also announces its intention to reactivate its mill on the O'Brien Mine site.

RM NICKEL PROPERTY: RM Nickel's nickel, copper and gold property consists of 48 claims covering an area of 1304.5 hectares in Beauchastel Township, Quebec about 20 km west of Rouyn-Noranda. The property lies in the Archean Abitibi Greenstone Belt, within the Blake River Group. It covers the northwestern part of a mafic-intermediate intrusion, the "Horseshoe" Gabbro, which hosts associated copper ("Cu"), nickel ("Ni"), platinum ("Pt"), palladium ("Pd"), and gold ("Au") mineralization.

The RM Nickel deposit occurs at the base of the gabbro, near the contact with the underlying andesites. The mineralization consists of lenses of massive to semi-massive sulphides, up to 4 m thick. Zones of disseminated sulphides occur above these mineralized lenses. In 1980, Falconbridge Copper estimated the resources at 131,352 metric tons grading 0.79% Cu and 0.46% Ni. This calculation was based on the results of more than 100 holes drilled by RM Nickel in the late fifties.

In 1988, Equinox Resources and Minnova noted that, within the resources previously mentioned, there was a richer zone with a high-grade resource of 6,527 metric tons at 2.34% Ni, 2.19% Cu, 1.58 g/t Pt and 4.63 g/t Pd that was amenable to open pit extraction. In 1999, Dasserat Resources, a junior private exploration company, acquired the property and, in June 2000, drilled 14 holes in this richer zone (Hole D-1 to D-14). In August 2000, a feasibility study carried out by M. C. A. Veilleux, P.Eng. for Dasserat Resources, indicated an open-pit mineable resource of 6,366 metric tons at 3.571 g/t Pd, 1.310 g/t Pt, 2.180% Ni, and 2.353% Cu. This is considered as an historical resource and a qualified person has not done sufficient work to classify this historical estimate as current mineral resources, the issuer is not treating the historical estimate as current mineral resources and the historical estimate should not be relied up.

The 1304.5 hectare property has high potential for new discoveries, outside the RM Nickel zone, very little exploration work has been done below the mineralized lower contact of the "Horseshoe" Gabbro and the potential for finding new lenses is excellent. Work done between 1980 and 1998 by Inmet Mining Corporation (formerly Minnova and Falconbridge Copper Corporation) and partners (Exploration Maude Lake Ltee, Equinox Resources Ltd and Technigen Platinum Corporation) on the property has shown that the property also contains gold and base metals showings, namely the Provencher (2.0 g/t Au over 10.0 m), the First Zone (6.2 g/t Au over 2.8 m), the West Gan (1.3% Cu over 2.1 m and 7.35% Zn over 0.9 m) and the Gan Copper zone. The Gan showing is associated with a dalmatianite zone, an alteration typically associated with the Noranda camp's massive sulphide deposits.

The data presented in the foregoing section of this news release was compiled by Raynald Vincent, P.Eng.(Quebec), a Qualified Person as defined in National Instrument 43-101. The information is considered reliable but needs verification. It must therefore be considered uncertain until additional exploration work has been carried out.

Terms of the Agreement

To acquire the property, Radisson has agreed in the LOI that, upon signing of the Option Agreement, it will pay $75,000 and issue 500,000 Class A shares to the Vendor. Radisson will then have 6 months to conduct a due diligence investigation of the project. It can exercise the option to purchase the property in return for a 2% NSR royalty in favour of the Vendor, payment of $175,000 in cash and issuance of 1,500,000 Class A shares of the Buyer's capital stock in two instalments as follows: $100,000 in cash and 1,000,000 Class A shares of the Buyer's capital stock at the date the purchase option is exercised; and $75,000 in cash and 500,000 Class A shares of the Buyer's capital stock no later than twelve months following the date of signing of the Option Agreement. The Vendor may repurchase a 10% undivided interest in the property by refunding, to Radisson, an amount equal to 10% of the cost of work carried out on the property since the date of the Option Agreement, including the cost of putting a deposit into production on the property, and by assuming a 10% share of the cost of work on the property following the notice of repurchase. The royalty will then be reduced to 1.8% NSR (2% of 90%). Radisson will also have the option to acquire the 2% NSR royalty from the Vendor in return for either payment of $1,000,000 or the issuance of 3,000,000 shares of Radisson's capital stock, at the Vendor's choice.

The due diligence investigation will be carried out under the leadership of Radisson's highly qualified exploration team, consisting of Messrs Dale M. Hendrick, P.Eng., Chairman of the Board of Directors and technical advisor to Radisson; Paul Cregheur, Member of the Board of Directors and Mining Consultant to the Company; and Raynald Vincent, P.Eng., Consulting Geologist.

THE O'BRIEN MILL: In October, 1977, Goldfield Mining Consolidated (" Goldfields ") acquired a 51% interest in Darius Gold Mines Inc., which previously had acquired the O'Brien Mine property The flotation mill located on the O'Brien Mine property was commissioned in 1978 and was operational until 1983 under Darius/Goldfields and Novamin/Breakwater. The mill is not currently operational. As of December 2006, the estimated cost to rehabilitate the mill was $3.5 million. Radisson now believes this flotation mill, when operational, once again, would be a highly profitable and valuable asset.

By returning this mill to operational status, Radisson intends to become a custom miller while at the same time developing the O'Brien / Kewagama gold mining project for its own feed to the mill. Radisson management is confident that there is ample potential demand in the area for such milling availability. The fact that copper/nickel mill feed from the RM Nickel Property, described above, can be processed at the O'Brien flotation circuit makes the potential acquisition of the RM Nickel property additionally attractive to Radisson. The mill operated at 250 tons per day in the past, but was specifically designed to allow for easy expansion to 500 tons per day.

The flotation mill consists of a standard crushing arrangement with crushing to 5/16 inches. Preliminary grinding was by a single ball mill, in closed circuit. A jig and one cell removed coarse and native gold from the primary grinding circuit. The discharge from the primary grinding circuit was conditioned and sent to a bulk sulphide flotation. The sulphide flotation concentrate was finely ground and thickened to 50% to 60% solids. Gold dissolution was accomplished in a five tank series with cyanide as a dissolution agent. Dissolved gold was adsorbed on carbon in a four stage carbon-in-pulp circuit. Gold was desorbed from carbon in a three tank stripping circuit located in the security area. The gold was electrolytically deposited on steel wool cathodes. The cathodes, along with concentrates from the gravity circuits, were refined into dore bars of gold for shipment.

With its sulphide flotation capability, the Radisson mill will be ideal for (i) gold recovery from our O'Brien / Kewagama project, and (ii) custom milling from local mines, as no other custom mill with this flexible capability is available in the area. Mr. Paul Cregheur, Member of the Board of Directors and Mining Consultant to Radisson, will oversee renovation of the mill.

Furthermore, Mr. Paul Cregheur will commence planning an underground program for a bulk sample of the 36 East Zone.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.


Contact Information

  • Radisson Mining Resources
    Kenneth G. Murton, B.Comm
    President and Chief Executive Officer
    Radisson Mining Resources
    Donald Lacasse, P. Eng., Vice President
    Chief Financial Officer and Secretary-Treasurer
    Gus Garisto
    Investor Relations