It is reported that exploration company Spider Resources has long been a bull on the potential of the James Bay Region of Northern Ontario. Since inception, the company concentrated all of its exploration efforts around a massive structure called the Ring of Fire, which is an area covered by muskeg swamps.
Last week the final chapter in Spider Resources history as an independent exploration company came closer to ending, vindicating the company’s unwaivered focus on James Bay.
Spider Resources partnered with KWG Resources with substantial financial and JV support during this tantalizing search that refused to replicate the good fortune that fell upon DeBeers. In 2002, while drilling into a kimberlite target, SPQ hit 6 meters of massive sulphides that established the area as potentially hosting volcanogenic associated massive sulphide VMS deposits.
In early 2007, Noront Resources struck 1.1% nickel, copper and platinum group metals over 71.5 meters, with a later hole hitting 117 meters of nickel at 4.4%, copper of 2.2%, along with platinum group metals. These holes had intersected Magmatic Massive Sulphides set in a peridotite intrusion that started a major pegging rush in the area and a massive boom in Noront Resources share price. One of the later holes assayed for chromites in the same geologic setting as Spider Resources original chromite find on the Freewest Joint Venture claims. The two drill holes were only six kilometers apart.
Cliffs first turned its attention to Freewest, trumping a competing bid from Noront Resources, in a CAD 240 million deal. The takeover gave Cliffs total control of Black Thor, Black Label and 40% of the much richer Big Daddy chromite deposit.
Spider Resources went on to complete an NI 43-101 for Big Daddy, which indicated that the resource hosted 23.2 million tonnes of ore carrying a chromite grade of 40.66%, plus an additional 16.3 million tonnes at 39.09%. These grades were much higher than those at Black Thor or Black Label and would be much cheaper to process and attract a higher premium.
Looking ahead, while Cliffs will take a majority stake in the project, one has to wonder if it fancies its chances of acquiring the remaining stake in Big Daddy from KWG. Only time will tell, but further M&A activity seems a real possibility.
(Sourced from www.proactiveinvestors.com)
