Inspiration Provides Corporate Update
TORONTO, ONTARIO -- (Marketwired) -- 04/03/13 -- Inspiration Mining
Corporation ("Inspiration" or the "Corporation")
(TSX:ISM)(FRANKFURT:OI8) pleased to provide a corporate update.
The exploration of the Langmuir Property has been the principal focus
of the Corporation. The Langmuir property comprises 69 mining claims
covering 1121 hectares in the Langmuir Township, 25 km southeast of
Timmins, Ontario. It hosts the past nickel producing mines of
Langmuir No. 1 and 2.
As previously reported in the Corporation's press release of January
6, 2010, Micon International Limited ("Micon") completed the National
Instrument 43-101 compliant resource estimate report (the "Micon
Report") for the Langmuir North Deposit and the Langmuir No 1
Deposit. A copy of the Micon Report can be viewed under the
Corporation's profile on the SEDAR website (www.sedar.com).
Pursuant to the Micon Report, resources in the Indicated Resources
category for the Langmuir North deposit are 8,324,000 tonnes grading
0.40% nickel, as detailed in Table 1. Resources in the Indicated
Resources category for the Langmuir No. 1 deposit are 1,733,000
tonnes grading 0.51% nickel, as detailed in Table 2.
Both deposits are amenable to open pit exploitation. Langmuir No.1 is
also partly accessible from an existing development ramp from earlier
historical production. These deposits, lying within the Langmuir
Nickel Belt, are also accompanied by at least four (4) exploration
target areas of mineralization that are believed to hold the
potential to host an additional 20 to 40 million tonnes of nickel
mineralization of similar grades. In addition, the target areas also
have the potential for open-pittable configuration.
As well, it is believed that potential remains to locate additional
concentrations of nickel mineralization similar to that which has
been exploited at the Langmuir No 2 mine at depth on the property.
The potential quantity and grade of such deposits is conceptual in
nature and there has been insufficient exploration to define a
mineral resource of said tonnage and grade and it is uncertain if
further exploration will result in the target being delineated as a
Estimated Mineral Resources for the Langmuir North Deposit
Cut Off Grade (% Ni) Classification Volume (m3) Tonnes Ni (%)
-------------------------------- -------------- ----------- --------- ------
0.19 - greater than 0.21 Indicated 160,000 433,000 0.20
Sub Total 160,000 433,000 0.20
greater than 0.21 Indicated 2,912,000 7,891,000 0.41
Sub Total 2,912,000 7,891,000 0.41
Total Mill Incremental +
Mineralized 8,324,000 0.40
Estimated Mineral Resources for the Langmuir No. 1 Deposit
Cut Off Grade (% Ni) Classification Volume (m3) Tonnes Ni (5)
-------------------------------- -------------- ----------- --------- ------
0.19 - greater than 0.21 Indicated 23,000 67,000 0.20
Sub Total 23,000 67,000 0.20
greater than 0.21 Indicated 583,000 1,666,000 0.52
Sub Total 583,000 1,666,000 0.52
Total Mill Incremental +
Mineralized 1,733,000 0.51
1. Mineral resources which are not mineral reserves do not have
demonstrated economic viability. The estimate of mineral resources may
be materially affected by environmental, permitting, legal, title,
taxation, sociopolitical, marketing or other relevant issues.
2. The quantity and grade of reported Inferred Resources in this estimation
are conceptual in nature and there has been insufficient exploration to
define these Inferred Resources as an Indicated or Measured Mineral
Resource. It is uncertain if further exploration will result in the
upgrading of the Inferred Resources into an Indicated or Measured
Mineral Resource category.
3. Tonnages have been rounded to the nearest thousand tonnes
4. Sums may not add due to rounding
5. Mineral resources are inclusive of mill incremental material
6. Grade interpolation is estimated by Ordinary Kriging method.
The Corporation has commenced a strategic review of its nickel assets
located on the Langmuir Property. The various options being
considered is the possibility of restarting the Langmuir No.1
underground mine on the basis of a substantially better defined
resource model. That is now possible as a result of an extensive
drill program that has been conducted on the Langmuir No.1 deposit
since the Corporation gained control of the Langmuir Property in
2004. Certain higher grade resource blocks were excluded from the
Micon Report and the Langmuir No.1 resource estimate due to these
resource blocks falling outside the optimal open pit shell.
In June, 2012, the Corporation acquired 1,250,000 common shares
("Potash Shares") (or 20% of the issued and outstanding securities)
in the capital of Potash Dragon Inc. ("Potash Dragon"). In addition,
the Company was issued an aggregate of 3,750,000 common share
purchase warrants (the "Warrants"). Each Warrant entitles the Company
to acquire an additional Potash Share at an exercise price of $0.80
Potash Dragon is a private company incorporated under the laws of
Barbados. Through its wholly owned subsidiary, Potash Dragon SpA, a
private company incorporated under the laws of Chile, Potash Dragon
holds various potash properties and applications covering an area of
4,133 Hectares in Region I of Northern Chile some 160km south east of
the town of Iquique and adjacent to the Pan American (Ruta 5)
highway. All the properties are located on the Salar de Llamara, and
some of the tenements are situated adjacent to a brine extraction
well field operated by Sociedad Quimica y Minera de Chile S.A.
Sedimentary rocks in the Pampa del Tamarugal are fluvial, lacustrine
and evaporitic and include highly soluble residues such as halite and
related evaporite minerals such as potash. Interspersed in this
succession are horizons of volcanic tuff from eruptions in the Andes
to the East. The sequence is estimated to be up to 1,000 m thick
(Saez et al., 1999). Alluvial fans incised by ephemerally active
canyons descend across the eastern Pampa from the Precordillera and
the talus of the median and distal fans locally masks the underlying
lake sediment accumulation. The Pampa can be considered to have an
upper, gradational altitudinal limit around 1,500 metres above sea
level where it merges into the proximal alluvial fans of the
Precipitation that occurs at higher elevations of the Andes Mountains
reports to fluvial braided fans which ultimately feed significant
aquifers that flow beneath the Pampa del Tamarugal. The individual
rivulets within these fans are referred to locally as Quebrada.
Ground water flowing within the pampa interacts with the evaporite
sequences resulting in the dissolution of halite and other soluble
minerals contained within the sedimentary sequences of the Soledad
formation. The dissolution results in a karst topography within the
soluble formations that contain vast amounts of highly saline brines
containing sodium, magnesium, potassium, calcium, lithium, boron,
sulphates, chlorine, iodine and nitrates in varying quantities.
The Llamara and Solida projects are situated at an elevation of
approximately 750 metres above sea level in an area that has an
exceptionally long geological history of aridity in the Atacama
Desert, particularly during the post Oligocene period (since 34 Mya)
when the region has been continuously the most arid region on Earth
with high evapotranspiration rates.
The location of the project, in close proximity to the ocean which
serves as an abundant source of process water, combined with very
high solar evaporation rates creates an ideal opportunity for the
implementation of low cost solution mining and brine solar
evaporation recovery techniques for the recovery of soluble minerals
such potash, other fertilizers and related minerals.
Cleaver / Douglas Properties
The Cleaver Property currently consists of 13 contiguous unpatented
mining claims containing of 192 claim units and covering 3,072 ha.
Those are located approximately 47 km south of South Porcupine,
Ontario and approximately 15 km south of the Langmuir Property. The
property lies within the northeastern portion of Cleaver Township,
the southeastern portion of Fallon Township, the southwestern portion
of Fasken Township and the northwestern portion of McNeil Township,
Porcupine Mining Division, District of Cochrane, Ontario.
The Douglas Property initially consisted of five contiguous
unpatented mineral claims covering 552 hectares and lying
approximately 2.5 km west of the Cleaver Property. In the last
quarter of fiscal 2009, an addition six claims, made up of 88 claim
units, all surrounding the Douglas Property and tying it together
with the Cleaver Property, were staked. Together, the properties make
up a single tract covering approximately 12, 400 hectares. The former
Texmont Nickel Mine is located approximately 9.6 km to the
west-southwest of the Douglas Property.
In November 2008 the Corporation acquired all of the issued and
outstanding securities of 1691063 Ontario Ltd. 1691063 Ontario Ltd.
owns a 100% interest in the Desrosier Property. That property is
located in Desrosiers Township, Ontario, and lies approximately 150
km southwest of the City of Timmins. The property, at the time of
acquisition, contained 6 contiguous unpatented mining claims,
consisting of 42 claim units covering approximately 680 hectares. The
property lies in a treed and rugged terrain requiring extensive
line-cutting work for surface surveys.
The property hosts quartz - feldspar pegmatites and pegmatitic veins
that contain molybdenite concentrations of potential economic value
along with elevated concentrations of bismuth and silver. Previous
work has reported a total of 33 showings or occurrences, four (4) of
which have been the subject of systematic work including trenching,
stripping and drilling.
Barton Syndicate/Dry Fork Property
The Barton Syndicate/Dry Fork Property, optioned by the Corporation
in 2004, contains 31 contiguous lode claims and lies 6.4 KM
north-northwest of Kennecott's Bingham Canyon copper-gold-molybendite
mine and within 600M of Kennecott's past producing Melco and Barneys
Canyon gold mines. In the period from 1988-2001, production from the
two mines aggregated approximately 1.4 Million ounces of gold. The
property has indications of potentially significant resources.
Due to scheduling issues, the Corporation has been unable to
undertake its planned surface magnetic testing on the Dry Fork
Property in Utah. However, that testing is still in the Corporation's
planning for the work season of 2013.
The Corporation has, as at December 31, 2012, approximately $3.79
million in working capital. In addition to its working capital, the
Corporation recently completed a private placement of 6,350,000 units
at price of $0.10 per unit for gross proceeds of $635,000. Each unit
is comprise of one (1) common share and one-half (1/2) of one common
share purchase warrant (the "Warrant"). Each Warrant entitles the
holder thereof to acquire a common share at an exercise price of
$0.12 per share at any time until February 22, 2015.
According to a March 8, 2013 article on the Mining.com website,
approximately 37% of all junior mining companies have less than
$200,000 in working capital. With an aggregate of approximately $4.43
million in working capital, the Corporation has sufficient funds to
carry its operations and to meet its obligations as they become due.
In addition, the current financial position of the Corporation
provides the Corporation with the ability to be patient in the
current down cycle of base metal prices and evaluate all options and
opportunities presented to the Corporation with a view of enhancing
In light of the current nickel market, the Corporation has decided
that the best option available to it and its shareholders is to
conserve its working capital and only invest its resources in
projects that will enhance shareholder value. This decision is
reinforced by the experience of other junior mining companies in the
immediate vicinity of the Corporation's property. These companies
took on significant debt in order to construct processing facilities
commence mining operations. The end result has been the shuttering of
the facilities and depressed stock value.
The Corporation would like to congratulate Messieurs Miller, Brugh,
Davis, Cantore and Maddigan on their appointment as directors of the
Corporation at the recent annual shareholders' meeting. The
Corporation would also like to thank all of the shareholders that
participated at the meeting .
Clarification of Information
The Corporation would like to clarify certain misinformation
pertaining to the compensation of Mr. Randy Miller, the President and
Director of the Corporation. As disclosed in the Corporation's
disclosure documents, Mr. Miller's annual compensation package
consists of a monthly consulting fee of $30,000 and a monthly car
allowance of $1,500 for
an aggregate annual compensation package of
$378,000. In addition, the Corporation pays a monthly rent payment of
$10,000 to a private company controlled by Mr. Miller pursuant to a
sublease agreement. The monthly rent payment is for the Corporation's
current office and there are no additional fees or payments being
made to Mr. Miller.
This news release contains "forward-looking statements" within the
meaning of the United States Private Securities Litigation Reform Act
of 1995 and applicable Canadian securities legislation. Generally,
these forward-looking statements can be identified by the use of
forward-looking terminology such as "plans", "anticipated", "expects"
or "does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", or "believes", or variations of such words and phrases
or state that certain actions, events or results "may", "could",
"would", "might" or "will be taken", "occur" or "be achieved".
Inspiration is subject to significant risks and uncertainties which
may cause the actual results, performance or achievements to be
materially different from any future results, performance or
achievements expressed or implied by the forward looking statements
contained in this release. Inspiration cannot assure investors that
actual results will be consistent with these forward-looking
statements and Inspiration assumes no obligation to update or revise
the forward-looking statements contained in this release to reflect
actual events or new circumstances.
The TSX has not reviewed and does not accept responsibility for the
adequacy or accuracy of this release.
Inspiration Mining Corporation
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