West Melville Metals Inc. (TSX VENTURE:WMM) ("West Melville" or "the Company") and Hunter Minerals Pty Ltd ("Project Vendor") have executed an amendment deed to the Isortoq Purchase Agreement (the "Agreement") whereupon signing, West Melville secured 100% ownership of the Isortoq Project ("The Greenland Assets"). The Project Vendor is now proceeding with an application to the Bureau of Minerals and Petroleum of Greenland to transfer title for the exploration licenses that comprise the Isortoq Project over to West Melville.
Upon the payment of the USD$1.4 million, the Royalty Agreement pertaining to mineral products other than iron, titanium and vanadium will be cancelled with immediate effect. West Melville has the option to walk away from the project at any time without making any additional payments to the Project Vendor.
"We very much appreciate the cooperation of Hunter Minerals in concluding this arrangement," stated Dr. Rory Moore, President and CEO of West Melville Metals. "Hunter recognised that restructuring the purchase agreement would be beneficial to West Melville attracting a partner to the project, which would be in the best interests of all stakeholders in the long term."
The Company is continuing its efforts to attract a joint venture partner to assist with advancing the project.
Isortoq Project
The 41,900 hectare Isortoq Project is a large iron-titanium-vanadium prospect in southern Greenland. In January 2013 West Melville announced an initial NI43-101 compliant inferred mineral resource estimate of 70.3 million tonnes grading 29.6% total iron (Fe), 10.9% titanium oxide (TiO2) and 0.144% vanadium pentoxide (V2O5) using a cutoff of 15% Fe. This initial resource represents drilling on less than one kilometre of the Isortoq body while evidence from previous drilling and the 2012 ground magnetic survey has demonstrated a strike length exceeding 16.3 kilometres. The property is favourably located on a deep, ice-free ocean inlet on the temperate southern coast of Greenland within 60 km of Narsaq and 100 kilometres from Narsarsuaq International Airport. The mineralization at Isortoq is similar to the Mapochs deposit in South Africa, which has been successfully exploited for a number of decades. Bench scale beneficiation tests completed on Isortoq core samples in 2010 by Xstrata Services gave average concentrate grades of 62.6% FeO (48.7% Fe); 19.1% TiO2 and 0.32% V2O5 with acceptably low levels of penalty elements S, P, Si, Al. These are positive indicators that support the economic potential of the project.
