VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 25, 2014) - West Melville Metals Inc. (TSX VENTURE:WMM) ("West Melville" or the "Company") today announced that the vendors of the Isortoq Project (Hunter Minerals Pty Ltd of Australia) have elected to waive the final USD$1.4 million payment due on the Isortoq Property and an amending deed to the purchase agreement to this affect has been executed. The "Royalty Agreement" covering non-ferrous metals has also been cancelled. This secures the exclusive right to a 100% unencumbered interest in the Project for West Melville and Hunter will now file an application to the Greenland Authorities to transfer title to the Isortoq Exploration Licenses over to West Melville.
"This is a very significant development for West Melville" stated Dr. Rory Moore, President and CEO of West Melville Metals. "With the ownership risk now completely resolved, the Company is finally in a position to focus on advancing this high potential project. We are very appreciative of the progressive approach that Hunter has taken in dealing with the challenges presented by the current tough market conditions. As a significant shareholder of West Melville, Hunter has decided that it would be better served by creating an opportunity for West Melville to allocate resources to advancing the Isortoq Project and thereby create longer term value for all stakeholders."
In January 2013, the Company announced an initial National Instrument (NI) 43-101 resource estimate for the Isortoq Project located of 70.3 million tonnes grading 38.1% FeO (29.6% Fe), 10.9% titanium oxide (TiO2) and 0.144% vanadium pentoxide (V2O5) applying a 15% iron cutoff. It is significant to note that this initial resource represents drilling on less than one kilometre of the Isortoq body while evidence from previous drilling and the 2012 ground magnetic survey has demonstrated a strike length exceeding 16.3 kilometres.
"Given the low geological risk, extremely low strip ratio for open pit mining and the highly favourable logistics offered by the Isortoq Project, the key to the success for this project lies in identifying an economically viable metallurgical extraction procedure" stated John Robins, Chairman of West Melville Metals. "Several promising new hydro-metallurgical techniques are currently being developed at innovative laboratories around the world and we will immediately be moving forward with evaluating the suitability of this technology to the Isortoq deposit".
In view of this exciting development, the Board of Directors has unanimously decided to focus all of the Company's resources on the Isortoq Project, and as a consequence it has elected not to exercise its option to purchase the Alex Project in Mexico. The option on the Fraser Bay Project is secure until December 2014 and efforts continue to find a suitable partner for the project.
In another development, Mr. Bruce Counts has resigned as a director of West Melville in order to pursue other opportunities. The Company thanks Bruce for his contributions over the past several years and wishes him well with his future endeavours.
The 70 km2 Isortoq Project is a large iron-titanium-vanadium prospect located in southern Greenland. Previous drilling combined with geophysical results to date has confirmed a potential strike length of at least 16.3 kilometres with the mineralized body being open to the south. The property is favourably located on a deep, ice-free ocean inlet on the temperate southern coast of Greenland within 60 km of Narsaq and 100 kilometres from Narsarsuaq International Airport. Bench scale beneficiation tests produced average concentrate grades of 48.7% Fe (62.6% FeO); 19.1% TiO2 and 0.32% V2O5 with acceptably low levels of penalty elements S, P, Si, Al. These are positive indicators that support the future economic potential of the project.
Disclosure of a scientific or technical nature contained in this release has been reviewed and approved by John Robins, P.Geo (Chairman) who is the Qualified Person for the purposes of National Instrument 43-101.
About West Melville Metals Inc.
West Melville is a specialty metals exploration company working to advance the Isortoq iron-titanium-vanadium project in Greenland and the Fraser Bay Project in Nunavut. The Company has assembled an experienced management team with a track record of discovery success and a Board of Directors with expertise covering the essential fields of geology, engineering and finance. The Isortoq Project offers a combination of low geological risk with significant upside potential in the high value specialty metal sector.
On behalf of the Board of Directors
Rory O. Moore, Ph.D., President and CEO
West Melville Metals Inc.
For further information about West Melville Metals Inc. or this news release, please visit our website at www.westmelville.com.
West Melville Metals Inc. is a member of the Aurora Mineral Resource Group of companies. For more information please visit www.auroraresource.com.
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.
Cautionary Note Regarding Forward Looking Statements
Certain disclosures in this release, in particular regarding the economic potential of the Isortoq Project and the Company's interest therein, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to West Melville's operations as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements, including risks as to the completion of the plans and projects. Readers are cautioned not to place undue reliance on forward-looking statements. Other than as required by applicable securities legislation, West Melville expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.
FOR FURTHER INFORMATION PLEASE CONTACT:
West Melville Metals Inc.
Toll free at 1.888.331.2269 or at 604.646.4527
Source: West Melville Metals Inc.