NAML and Hessjøgruva AS sign supplemental agreement to Heads of Terms
The Heads of Terms on acquisition by NAML of the mining licences held by Hessjøgruva AS, initially signed on 04 March 2016, has been extended to 31 May 2018. This acquisition, in exchange for a deferred payment and a 2% net smelter return royalty, allows NAML to proceed with a staged feasibility study and development programme on the basis of a 100% interest in the three mining licences being acquired from Hessjøgruva AS, together with further exploration and assessment of the nine exploration licences already assigned to NAML in the surrounding area.
A recent internal remodelling of the Hersjø Deposit has resulted in a new unclassified resource estimate, above a 1.0% CuEq cut-off, of 5.55 Mt at an average grade of 1.05% Cu and 1.27% Zn. 66 surface holes totalling 12,008m were drilled at Hersjø between 1970 and 1977. NAML is proposing to commence with relogging and resampling of the drillcore stored by NGU at Løkken, then reanalysis at an independent accredited laboratory, to include Au, Ag and other trace elements in addition to Cu and Zn, in order to prepare a JORC-compliant resource estimate by the end of 2017.
NAML is also proposing to investigate an undrilled geophysics anomaly to the immediate north of the known Hersjø Deposit.