- New high grade silver-zinc-lead brownfields exploration project
- Strategically located in the Silver Valley, Idaho bordering two large mines on each side of the Ranger-Page Project
- No modern systematic exploration applied to the Ranger-Page Project
- 605 g/t Ag equivalent average grade from 63,098 tons mined at Crown Point and 386 g/t Ag equivalent average grade from 214,126 tons mined at Blackhawk(1)(2)
- Patented lode claims with no pre-existing royalties in a top tier mining jurisdiction ranked #1 in the world under the Policy Perception Index (PPI)(3)
Vancouver, British Columbia--(Newsfile Corp. - July 20, 2021) - OrganiMax Nutrient Corp. (TSXV: KMAX) (FSE: L3U) (OTC: BNRJF) ("OrganiMax" or "the Company") is pleased to announce that, further to its press release dated February 10, 2021, the Company has entered into a definitive agreement dated July 20, 2021 (the "Definitive Agreement") with Blackhawk Exploration LLC (the "Vendor") for an option (the "Option") to earn up to a 100% interest in the Ranger-Page Project (the "Project") in the Silver Valley within the Coeur d'Alene Mining District in Idaho, USA.
OrganiMax's President & CEO, Director Brandon Rook commented, "The signing of the definitive agreement marks a major milestone in the Company's history. The Ranger-Page Project represents a significant exploration and development opportunity for the Company's shareholders as we turn our focus to high grade silver, zinc, and lead exploration in Idaho. Idaho, specifically the Silver Valley, is regarded as one of the top mining jurisdictions in the world. Permitting operations, both because of patented claims and Idaho's policies, make for an efficient and friendly place to explore and develop."
The Ranger-Page Project was never consolidated within one company early on and was owned periodically by up to five different groups, thereby limiting mining capabilities because of disjointed small scale mining operations. As a result of the small-scale operators and despite the Project being located between two prolific past producing mining properties, the Project has remained unavailable for exploration and development over the past 80 years due to claim boundary issues between Bunker Hill Mining (the Bunker Hill Mine) and ASARCO (the Page Mine), as well as the subsequent transfer of the property to the United States Environmental Protection Agency (the "EPA") and the closure of the area for mining in the late 1970's. Today, the Project area has been cleared of any environmental issues and for the first time, the Project area has been consolidated by one company to explore for the strong discovery potential that the Company believes exists.
Ranger-Page Project Highlights
- Bordering Two Major Mines - Strategically located between two major mines, Bunker Hill (mined to 5,800 feet below surface) to the east and Page (developed to 3,400 feet) to the west. The Page Mine sourced ore grade mill feed from the Project (Blackhawk Mine) for 21 years but never mined deeper than 1,200 feet below elevation. The other 4 mines located on the Project produced ore from near surface to 200 feet below surface.
- Historical Production - Five historic mines are located on the Project with underground mining data and surface geological data supporting high grade silver-zinc-lead mineralization present within the shallow, undeveloped mines. These mines remain open at depth, and laterally along strike, with no modern systematic exploration applied to the Project.
- High Grade Potential - 605 g/t Ag equivalent average grade from 63,098 tons mined at Crown Point and 386 g/t Ag equivalent average grade from 214,126 tons mined at Blackhawk(1) (2).
- Exploration Potential at Depth and Along Strike - The east-west striking veins at the Project have been partially explored with evidence that there is continuation throughout the Project area. Strong evidence that mineralization continues from where historical underground mining operations ceased.
- Secondary Source of Ore Feed - The Blackhawk Mine was a secondary source for ore grade mill feed to the Page Mine for 21 years. The Blackhawk Mine ceased being a lease mine to ASARCO's Page Mine in the mid-1900's.
- Patented Lode Claims - Ownership of both surface and mineral rights. No federal permitting required; permitting with the State of Idaho is straightforward with patented claims.
- Top Tier Mining Jurisdiction - Idaho is an established top tier mining jurisdiction, ranking 1st in the world under the Policy Perception Index ("PPI") and ranked 9th in the world under the Investment Attractiveness Index as part of the Fraser Institute's 2020 Annual Survey(3).
- Established and Nearby Infrastructure - Favorable infrastructure nearby, located 94km east of Spokane, Washington, approximately 1km south of the Interstate 90 highway, including full access to power, water and full industrial infrastructure, which includes fabrication facilities and a highly experienced underground mining work force.
- Mill Nearby - One flotation mill located within 10km of the Project. Four-hour drive to the Trail, BC smelter to process concentrate.
- No Royalties - No pre-existing royalties on the Project.
- 3D Geological Model in Progress - A 100-year detailed map folio from the Project, the Page Mine and the Bunker Hill Mine will be incorporated into a 3D geological model that will add significant value to future exploration and development of the Project.
- Experienced Management - Operations team in Idaho with deep roots into the area.
Transaction Terms
The Company may earn a 75% interest in the Project by paying to the Vendor US$650,000 and incurring US$3,000,000 of exploration expenditures over 4 years. Upon acquiring a 75% interest the Company will have the right to either: a) acquire the remaining 25% interest by making a one-time payment of US$2,250,000 in cash or subject to regulatory approval in cash and/or a combination of cash and shares; or b) enter into a joint venture with the Vendor for the further development of the Project.
Sources:
- AgEq assumptions: Silver price of US$26.00/oz Ag; Zinc price of US$1.20/lb Zn; Lead price of US$0.90/lb Pb; and Copper price of US$4.00/lb Cu.
- Source: US Bureau of Mines, Western Field Operations Centre, Spokane, Washington.
- Source: 2020 Fraser Institute Mining Survey.
Qualified Person
Timothy Mosey, B.Sc., M.Sc., SME, a Qualified Person (the "Qualified Person") as such term is defined by National Instrument 43-101, has reviewed and approved the technical data and geological information reported in this news release. The Qualified Person has not completed sufficient work to verify the historic information on the Ranger-Page Project. however, the Qualified Person assumes that sampling and analytical results were completed to industry standard practices. The information provides an indication of the exploration potential of the Ranger-Page Project but may not be representative of expected results.
About OrganiMax Nutrient Corp.
OrganiMax Nutrient Corp. (TSXV: KMAX) is an exploration company that has a 100%-owned lithium and potassium bearing salar complex of mineral concessions in the Central Mexican Plateau located in the states of Zacatecas, and San Luis Potosi. Regional geophysical work has indicated that the depths of the salar basins may be much greater than previously thought, making the salars highly prospective for large brine aquifers to be discovered at depth. The Company is targeting Sulfate of Potash ("SOP") and Lithium Carbonate ("LCE") and boron for both the domestic and international markets.
The Company has announced a maiden sediment mineral resource estimate ("MRE") of both lithium and potassium at its three salars. Highlights include:
- 120 million tonnes (Mt) of Inferred Mineral Resources grading 4.6% potassium (K) and 380 ppm lithium (Li);
- Continuous high-lithium portion of La Salada salar containing 7 Mt grading 1,490 ppm Li;
- Contained 12.3 Mt of SOP and 243,000 tonnes of LCE;
- Sampling is restricted to 5 metre depths in most areas therefore there is good exploration potential to increase the Mineral Resource at depth and also extending the sampling to the edge of the salar basins where sampling has not taken place;
- Geophysical surveys completed suggest there is potential for additional similar layers of potassium or lithium enriched material to be found under the current pitting/drilling;
- Recent regional geophysical work has indicated that the depths of the salar basins may be much greater than previously thought, making the salars highly prospective for large brine aquifers to be discovered at depth.
On behalf of the Board of Directors of OrganiMax Nutrient Corp.,
"Brandon Rook"
Brandon Rook, President and Chief Executive Officer, Director
For further information please contact us at:
604-800-4710 or
info@organimax.com
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this news release.
Completion of the transaction contemplated by the Definitive Agreement is subject to a number of conditions and there can be no assurance that the contemplated transaction will be completed as proposed or at all. Investors are cautioned that any information released or received with respect to the contemplated transactions may not be accurate or complete and should not be relied upon. Trading in the securities of the Company should be considered highly speculative.
The information contained herein contains "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation: risks related to failure to obtain adequate financing on a timely basis and on acceptable terms; risks related to the outcome of legal proceedings; political and regulatory risks associated with mining and exploration; risks related to the maintenance of stock exchange listings; risks related to environmental regulation and liability; the potential for delays in exploration or development activities or the completion of feasibility studies; the uncertainty of profitability; risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; results of prefeasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; risks related to commodity price fluctuations; and other risks and uncertainties related to the Company's prospects, properties and business detailed elsewhere in the Company's disclosure record. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Investors are cautioned against attributing undue certainty to forward-looking statements. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from the Company's expectations or projections.
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