Noble Mineral Exploration Inc. (TSX-V:NOB, FRANKFURT: NB7, OTCQB:NLPXF) announced it has entered into a binding Letter of Intent to acquire the Lucas Gold Project from Canada Nickel Company Inc. (CNC). The transaction involves Noble issuing 5,000,000 units at $0.06 per unit, each consisting of one common share and one-half warrant exercisable at $0.15 for two years. CNC retains a back-in right to purchase a 25% interest in the property by paying four times Noble's exploration expenditures, with the trigger date being the earlier of 36 months from closing, $5 million in exploration spending, or a sale or change of control of Noble.
The project is located 30 km north of Timmins, Ontario, a region known for over 75 million ounces of gold production, and 20 km northeast of the Kidd Creek Mine. It is also near the Crawford Nickel Resource being developed by CNC. The property has access via paved Highway 655 and benefits from local infrastructure and a Memorandum of Understanding with First Nations.
In 2018, Noble completed 15 diamond drill holes totaling 3,184 meters, covering 650 meters of a 1,700-meter gold-mineralized structure. The company identified 37 historical drill-hole collars and twinned three of them. The Lucas Gold Project has six discrete IP anomalous trends, only one of which has been drill-tested. Gold mineralization is structurally controlled and occurs as stacked lenses within pyrite-gold mineralized tuffaceous units.
Vance White, President and CEO of Noble, stated, "We are very pleased to be proceeding with the repurchase of an excellent gold prospect on which we know from past work carried out by Noble of an existing gold zone but also a number of untested parallel zones." The project is drill-ready with a First Nation MoU in place, and future work will include drilling on the initial IP anomaly and testing the other five undrilled anomalies.
Qualified persons Stephen J. Balch, P.Geo. (ON), VP Exploration of CNC, and Wayne Holmstead, P.Geo. (ON), reviewed and approved the technical information in this release. The transaction is subject to a definitive agreement and TSX Venture Exchange approval.
Noble Mineral Exploration Inc. is a Canadian junior exploration company with holdings in Canada Nickel Company Inc., Homeland Nickel Inc., and East Timmins Nickel Inc. It holds mineral rights in approximately 70,000 hectares in Northern Ontario and 25,000 hectares in Quebec, including the Project 81 area, which hosts diversified drill-ready gold, nickel-cobalt, and base metal targets. More information is available at https://www.noblemineralexploration.com.
