Northern Abitibi Mining Corp. is a Canadian Junior Exploration Company with an experienced exploration team that is focused on identifying, acquiring and developing high potential North American exploration projects in a timely, responsible and cost-effective manner.
The past year has been one of challenging global markets and a difficult environment for financing mineral exploration activities. A lack of exploration funds prevented the company from advancing the Viking Project in Newfoundland on its own, and as a result the company decided the best opportunity to maximize shareholder value was to consolidate the Viking district with Spruce Ridge Resources Ltd. existing large land package and allow the numerous mineralized zones to be explored by a company that had the local experience and financial resources to move exploration forward. The sale of Viking to Spruce Ridge gives Northern Abitibi Shareholders a large stake in Spruce Ridge, a company with a good share structure and the ability to raise exploration capital for the Viking district. Spinning out the Viking asset to Spruce Ridge exposes Northern Abitibi shareholders to another avenue for success, providing shareholders with some diversity and continued upside.
To earn a 100% interest in the Viking project Spruce Ridge must pay $200,000 in staged cash payments over 12 months and issue up to 10 million Shares to Northern Abitibi. To date, Spruce Ridge has made payments totalling $100,000 to Northern Abitibi and issued 5 million shares at a deemed value of $0.12 per share. By December 14, 2013, Spruce Ridge must pay another $100,000 (Spruce Ridge can elect to issue up to 50% of the final cash payment by issuing additional Shares) and issue 5 million Shares. Northern Abitibi had a 100% property interest in the Viking Property subject to a 2% to 4% sliding scale net smelter royalty held by Altius Resources Inc.
The Viking Gold Project is located in the mining friendly jurisdiction of Newfoundland and Labrador. In 2009 Northern Abitibi discovered a new gold trend at Viking and defined it by drilling over a strike length of 1300 metres. Drilling highlights include 4.8 metres grading 41.4 g/t gold, 3.7 metres grading 50 g/t gold, 27 metres grading 7.9 g/t gold, and 23 metres grading 5.12 g/t gold. The Viking project contains a NI 43-101 compliant resource estimate dated December 7, 2011. At a cut-off grade of 0.20 g/t gold, the Thor Trend deposit contains an indicated resource of 98,000 ounces gold (3,232,000 tonnes at an average grade of 0.95 g/t) plus an inferred resource of 45,000 ounces gold (2,123,000 tonnes at an average grade of 0.66 g/t). The deposit remains open for expansion.
** Mineral resources are not mineral reserves and by definition do not demonstrate economic viability. There is no certainty that all or any part of the mineral resource will be converted into mineral reserves. An ‘Indicated Mineral Resource’ is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. An ‘Inferred Mineral Resource’ is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified.