St-Georges closes financing and updates Notre Dame Project, Quebec
St-Georges Eco-Mining Corp. [SX-CSE; SXOOF-OTCQB; 85G1-FSE] provided an update on its mapping and sampling program on the Notre-Dame Project located in the Lac St-Jean region of Québec.
The company has also mobilized its drilling team on the Manicouagan Project, with drilling expected to start within 72 hours as weather allows. St-Georges also closed an additional and final $1.8 million second tranche of its proposed $2.5 million total flow-through financing, oversubscribing the offering by $725,000 for a total of $3,225,000.
The second tranche of the non-brokered private placement offering of “flow-through” units at a price of $0.25 is for total gross proceeds of $1,800,000 and was fully subscribed by two institutional investment funds.
Each FT Unit is comprised of one common share in the capital of the company on a “flow-through” basis (each, a FT Share) and half a FT Share purchase warrant (each, a half FT Warrant). Each half FT Warrant entitles the holder to buy half a Share at an exercise price of $0.29 per share. The warrants will expire 36 months after their issuance or 30 days after the issuance of a press release accelerating the expiration of the warrants.
The company will use the proceeds of the Offering to further advance exploration on the Manicouagan Project. A 6% finder’s fee and broker’s warrants have been paid in connection with the Offering. The securities issued in connection with the Offering are subject to the statutory four months and one day hold period.
In connection with the Offering, the company paid $108,000 in cash and issued 432,000 compensation warrants to arm’s length finders. Each compensation Warrant entitles the holder to acquire one common share of the corporation at a price of $0.29 over three years.
This first-pass sampling program has indicated significant anomalous values in niobium, rare earths, and titanium-iron. Additional work is necessary to determine if the economic potential for these minerals exists. All samples referred are either chosen samples or channel samples from surface work. At this stage, there is no definite indication as per the size or length or continuity of the minerals occurrence encountered. The work reported represents a first exploration effort and is preliminary in nature.
The project covers an area of roughly 64 km2 in area. It was acquired because of a recent grassroots discovery of carbonatite with niobium veinlets. Rare Earth Elements (REE) values were evident in another carbonatite sample initially collected. The carbonatite occurs along an arcuate zone of outcrops.
In early summer, the project was partially mapped, and 210 samples were collected in the field and then submitted to ALS labs for analysis. Select samples were collected from outcrops, sub crops, and lag boulders. Geologic mapping and sampling of the project have provided coverage over approximately 60% of the total claims area, although outcrops are limited. Advantage was taken of new access roads for forestry work that uncovered outcrops in its central part. Government-funded sampling and mapping completed in 2021 also identified areas within the Project’s boundaries with potential.
The assays contain individual results up to 2320 ppm of niobium, 4274 ppm TREO, and separately up to 41.1% titanium-iron-phosphate-apatite-vanadium with anomalous REE values. Where light and heavy REE values occur in significant amounts, total rare earths have a ratio close to 1:1. The TiO2 values range from 8% to +16% based on 4.8% to +10% TiOp assay values. This, coupled with 21% to 35% Fe and associated phosphorus, vanadium, and REEs, suggests the potential for an economic project requiring additional exploration.
The above samples were collected within proximities that suggested consistently anomalous zones. Based on the above, several localized areas with extents ranging from 1 by 2 km contain anomalous concentrations of niobium and REE values hosted by carbonatites, pegmatites, and brecciated gneiss. The titanium-iron mineralization is defined by an elongated zone about 2 km by 5 km and hosted in iron-rich gabbro and banded iron formation.
The company received all required authorization to drill the project next year if it chooses to do so. However, more detailed trenching and sampling programs are recommended to determine each area’s potential quality and quantity.
“(…) We believe that the values defined in the first-pass sampling program have identified several areas of potential economic value. This project, along with our portfolio of other projects, reflects the company’s goals of diversity and development of grassroots discoveries. (…) This sampling program was limited to exposed areas of outcrop, representing less than 15% of the project area. (…) I eagerly look forward to the next exploration phase, where trenching, sampling, and drilling can provide context to the values received from this year’s program. (…),” commented Herb Duerr, President and CEO.