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Horden Lake Deposit,
Quebec
In June 2007, Southampton purchased 95% of
Nemiscau Mines Limited, owner of the Horden Lake
deposit, from a private vendors for an aggregate
6,000,000 shares of Southampton. Nemiscau Mines
Limited, now a 95%-owned subsidiary of
Southampton, was originally founded as a joint
venture between Noranda Mines Ltd. and Inco Ltd.
Property
The Horden Lake Cu-Ni deposit covers 98 hectares
and is located in the Bay James area of Quebec,
approximately 140 km north of Matagami, Que. The
Horden Lake deposit was discovered through
exploration by a joint venture between Noranda
Mines Ltd. and Inco Ltd. in the early to
mid-1960s. That joint venture is reported to
have completed 157 diamond drill holes totaling
32,229 metres by the end of 1969.
Figure A
The mineral deposit occurs as massive,
disseminated or stringer sulphides, at or close
to, the southeast margin or a narrow, elongate
basic intrusive. The sulphide mineralization
occurs as pyrrhotite (Po), pyrite (Py),
chalcopyrite (Cp), sphalerite (ZnS). Platinum
(Pt), palladium (Pd), silver (Ag) and gold (Au)
is also found in zones of the sulphide
mineralization. Geological drill sections
indicate the contacts and mineralization dip
45-60 degrees northwest.
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Figure B
The Horden Lake deposit was the subject of a
prefeasibility study in 1993 (completed by
Watts, Griffis and McOuat (“WGM”)) for a
subsidiary of Inco. That report estimated in
situ geological reserves at 1,238,333 tonnes
probable averaging 1.91% copper (Cu), 0.40%
nickel (Ni) and 4,365,428 tonnes possible
averaging 1.27% Cu and 0.38% Ni. *
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Probable and Possible Geological
Reserves as Estimated by WGM
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Reserve Block |
Probable |
Possible |
Grade |
|
Cutoff Grades |
(tonnes) |
(tonnes) |
% Cu |
%
Ni |
|
1.5% + Cu |
794,447 |
|
2.33 |
0.43 |
| |
|
1,708,732 |
1.84 |
0.43 |
|
1.0% - 1.49% Cu |
343,014 |
|
1.25 |
0.35 |
| |
|
837,539 |
1.24 |
0.47 |
|
0.5% - 0.99% Cu |
100,872 |
|
0.84 |
0.39 |
| |
|
1,819,157 |
0.75 |
0.30 |
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Total Probable |
1,238,333 |
|
1.91 |
0.40 |
|
Total Possible |
|
4,365,428 |
1.27 |
0.38 |
* Grade and tonnage estimates
for the Horton Lake Cu-Ni deposit as described
above are historical in nature. Southampton
believes that these estimates are based on
systematic drilling, sampling and assaying
techniques that were appropriate at the time and
are believed to be reliable and relevant.
However, these estimates pre-date and are
non-compliant with National Instrument 43-101,
and as such, they should not be relied upon
other than to provide an approximate estimate of
the resource potential of the property.
In the prefeasibility study, WGM determined
that annual production from the open pit portion
of the mine could produce 175,000 tons (158,900
tonnes) of ore annually. Following depletion of
the open pit, an underground mine was planned to
also produce 175,000 tons annually. In 1993,
given weak metal prices, the mining on the
deposit was determined to not be feasible.
Recommendation at the time were made that
“significant untested exploration potential”
existed at the property and that further work
was warranted.
Southampton intends to conduct further
drilling on the Horden Lake deposit to convert
the historical resources into 43-101 compliant
resources. Planning is currently underway for
late 2007/early 2008 programs on the property. |
