With both copper and nickel continuing to recover from the impact of the COVD-19 pandemic, Rafaella Resources (ASX:RFR) might have its timing just right with its move to acquire the Midrim and Laforce nickel-copper sulphide projects in Quebec, Canada.
Both projects support the company’s focus on developing near-term, low-cost base metal operations and are close to Chase Mining Corporation’s (ASX:CML) Alotta project that recently hit massive sulphides with high-grade nickel and copper intersections.
Previous drilling at the Midrim project returned intersections of 39.4m grading 1.91 per cent nickel, 1.85 per cent copper and 2.57 grams per tonne (g/t) platinum group metals (PGMs) from a depth of 30m, including a higher grade zone of 4.3m at 6.57 per cent nickel, 5.15 per cent copper and 7.15g/t PGMs from 57.15m.
Other hits include 9.4m at 3.52 per cent nickel, 4.25 per cent copper and 4.59g/t PGMs from a dept of 56m within a broader zone of 22.1m at 1.64 per cent nickel, 2.38 per cent copper and 2.56g/t PGMs, and 19.7m at 1.85 per cent nickel, 2.98 per cent copper and 2.74g/t PGMs from a depth of just 15.5m.
Broad mineralised intersections, including 100m at 0.87 per cent nickel and 0.38 per cent copper, have also been intersected at the Laforce project.
Preliminary metallurgical test work at Midrim has already delivered results of up to 95 per cent copper and 80 per cent nickel recoveries after just 10 minutes of simple flotation.
“This is an important acquisition for Rafaella,” managing director Steven Turner said.
“The Midrim and Laforce projects represent an excellent opportunity to add development assets to Rafaella’s Canadian portfolio alongside the McCleery project, in a jurisdiction well known to the company and in a range of commodities seeing increasing focus in a changing environment.
“Furthermore, the issuance of Rafaella shares as consideration and the successful completion of the private placement significantly strengthens the company’s shareholder base.”
New projects are on prospective ground
Both projects are located within the Belleterre-Angliers Greenstone Belt (“BAGB”) of Quebec and include an extensive database of historical exploration.
Falconbridge recognised the potential for targeting multiple high grade 3 million to 5 million tonne deposits on the properties before it was taken over by Glencore in 2007.
Midrim covers 118sqkm of the Baby segment of the BAGB and is hosted within an elongated west-northwest to east-southeast trending intrusion about 330m long and 95m wide.
Historical drilling has defined multiple zones of massive to semi-massive and net-textured to disseminated sulphides.
Laforce lies on the northern extent of the BAGB and covers part of an elongated, east-west trending gabbroic intrusion about 4.6km long and 0.15km wide.
Acquisition terms and capital raising
Rafaella will acquire 100 per cent of the two projects by issuing 13.05 million of its shares to Ressources Météore Sub Inc (RMS) – a wholly owned subsidiary of Meteoric Resources (ASX:MEI).
It will also issue 1.45 million shares and 5 million options exercisable at 20c and expiring in two years to Canadian Nickel Coporation as a facilitation fee.
Separately, the company has just completed a placement to raise $1.2m through placement of shares priced at 6.6c each.
Proceeds from the placement will be used to advance feasibility work for its flagship Santa Comba project in Galicia Spain, supplement working capital and maintain its projects.