Beaufield Resources Inc. (“Beaufield”) (TSX-V: BFD) is pleased to announce that Hinterland Metals Inc. (HMI-TSX-V) has signed a Letter of Intent (“LOI”) to option a 50% interest to Hinterland Metals in the rights to Lithium and other elements (the “Lithium Rights”) excluding precious metals (i.e. gold, silver, platinum and palladium) and base metals (i.e. cobalt, copper, lead, nickel and zinc). The LOI covers 92 claims or 4,441 hectares of Beaufield’s 23,640 hectare Troilus area properties.
As a result of a review by the Investment Industry Regulatory Organization of Canada (“IIROC”) Beaufield is retracting the mineral resource table that was included in the original press release dated July 12th, 2016. The resource table was obtained from the Perilya Ltd. website, and is not detailed enough to accurately represent the actual mineral resource estimate for the Moblan Lithium deposit prepared by Roscoe Postle Associates Inc. (“RPA”) as of May 1, 2011. To clarify, the following table below more accurately summarizes the stated RPA mineral resource estimate (Perilya Limited May 31, 2011 News Release).
|Measured + Indicated||9,334,000||1.54||–||–|
*PEG1: Main Pegmatite Sill body **PEG2: Footwall Pegmatite body
The RPA mineral resource estimates were prepared according to the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (“the JORC Code”). The RPA mineral resources were estimated by constrained whittle pit shells at cut-off grades of 0.60% Li2O, and using an average price of $350 per tonne of spodumene concentrate and a $US/$C exchange rate of 1:1.
The RPA mineral resource estimate is not publically available and therefore has not been reviewed or verified by a qualified person on behalf of Beaufield. The Company cautions that the resource for the Moblan deposit is not necessary indicative of the mineralization that may be identified on the Troilus property, and there is no certainty that future exploration on the Troilus property will result in a resource being defined.
Beaufield is very pleased to have Hinterland Metals, an active Lithium explorer with the required expertise, explore for lithium in a high priority area for that element. Once Hinterland Metals has earned its 50% interest, Beaufield can decide upon participation.
Beaufield will concentrate its efforts on gold exploration in Urban with secondary emphasis on its holdings in the Eleonore-Cheecho gold camp and Troilus base metals and gold where it has a technical report in compliance with National Instrument 43-101 on the Tortigny deposit.
The Troilus claims completely surround the Moblan lithium development project held by Perilya Ltd. (60%) and Soquem Inc. (40%).
Pursuant to the LOI, Hinterland Metals can earn a 50% interest in the Lithium Rights by issuing to Beaufield an aggregate of 2,000,000 shares (500,000 shares upon closing) and completing work expenditures of $1,000,000 ($200,000 in the first year) over a three year period. Upon completion of the 50% earn-in, Hinterland and Beaufield will form a joint venture with initial respective participating interests to be 50%. The transaction is subject to completion of due diligence, final documentation and approval of the TSX Venture Exchange.
This news release has been prepared by Jens E. Hansen, P. Eng, President and CEO of Beaufield, the Qualified Person, as defined by National Instrument 43-101.
Beaufield is a well financed mineral exploration company with its exploration activity focused in Quebec. Please refer to Beaufield’s website to view the company’s properties in Eleonore-Opinaca, Troilus and elsewhere. The Corporation is actively exploring, well financed with approximately $2.5 million in cash, has no debt and has excess work credits on its properties.