West Melville Completes 2012 Exploration Program at the Fraser Bay Project, Nunavut
October 3, 2012
Vancouver, B.C. – West Melville Metals Inc. (WMM:TSX-V) ("West Melville" or the "Company") today announces the completion of the 2012 exploration campaign at its Fraser Bay iron ore project in Nunavut. The objectives of the program were to complete extensive channel sampling aimed at evaluating the DSO (direct ship ore) potential of the Project and to establish longer term project infrastructure. Both objectives were achieved with the collection of 1,012 metres of combined rock saw channel sampling (923 m) and continuous chip sampling (89 m) and the construction of a 25-person camp adjacent to the CAM 5 airstrip at Mackar Inlet.
“The company is pleased to have accomplished such an extensive channel sampling program at Fraser Bay this year,” stated Dr. Rory Moore, West Melville’s president and chief executive officer. “The results from 2012 in combination with our compelling 2011 assays, which included grades up to 68.2% iron over one metre and 61.6% iron over 13 metres, will give us our first comprehensive understanding of the DSO potential.”
The banded iron formation (BIF) at Fraser Bay can be traced over an exposed strike length of 5.5 kilometres, dips vertically to steeply west and has an apparent thickness ranging from 100 metres to more than 350 metres. Previous sampling has demonstrated the potential for DSO, which is defined as high grade iron ore (typically >60% Fe) that can be mined and shipped directly to market without the need for on-site processing. In addition to the previously known magnetite rich BIF, the 2012 exploration program discovered the presence of massive specular hematite (specularite) in outcrop exposures up to 30 metres in width. The discovery of hematite with its much lower magnetic signature has led to a re-evaluation of the interpreted size potential at Fraser Bay which was initially based only on the strong magnetic signature of the magnetite rich BIF.
The 2012 rock saw channel sampling program was comprised of 923 metres of continuous saw-cut sampling over 25 surface exposures. Exposures ranged from 18 metres to 75 metres in length. One horizontal continuous chip sampling line was completed on a vertical face covering 89 metres. Individual sample intervals ranged in lengths up to 2.2 metres. All samples were bagged on site and returned to camp where they were secured with tamper proof safety seals. The samples were then batched and further transported to an accredited laboratory in Canada for analysis. Results are anticipated prior to the end of October. To view an image of the channel sample distribution please visit the Company’s website at http://westmelville.com/projects/fraser-bay-project/technical/
The Fraser Bay Project
The Fraser Bay property is located on the west side of the Melville Peninsula, 180 kilometres southwest of the community of Hall Beach in Nunavut, Canada. It consists of a single mineral lease covering 3,228 acres that is favourably located 12 kilometres from tidewater at Committee Bay and 120 kilometres from a proposed deep water port at Roche Bay. The property lies within 16 kilometres of the CAM 5 airstrip at Mackar Inlet (a former defence early warning site) and an all-season road from the airstrip terminates less than 10 kilometres from the property boundary. This infrastructure provides a significant logistical benefit to the project. The lease is currently owned by Roche Bay plc, with West Melville having an exclusive option to earn up to a 70-per-cent interest in the property by meeting a series of work and expenditure commitments, and making certain share payments.
The Fraser Bay Option Agreement
In order to permit enough time for assay results to be reported and evaluated, the Company and the Project Vendor have agreed to amend the Option Agreement so that the share payment due by September 30, 2012, will not become due until October 31, 2012. In consideration for this amendment, the Company will make an immediate cash payment of $75,000 to Roche Bay and the share payment due at the end of October will be reduced by 150,000 shares.
Disclosure of a scientific or technical nature contained in this release has been reviewed and approved by Bruce Counts, P.Geoph. (Director of West Melville) who is the Qualified Person for the purposes of National Instrument 43-101.
About West Melville Metals Inc.
West Melville is an iron ore and specialty metals exploration company working to advance the Fraser Bay iron ore project in Nunavut and the Isortoq iron-titanium-vanadium project in Greenland. The Company has assembled an experienced management team with a track record of discovery success and a Board of Directors with expertise covering the essential fields of geology, engineering and finance. West Melville’s projects offer a combination of low geological risk with significant upside potential in high demand commodity sectors.
On behalf of the Board of Directors
Rory O. Moore, Ph.D.
President and CEO
West Melville Metals Inc.
For further information about West Melville Metals Inc. or this news release, please visit our website at www.westmelville.com or contact Investor Relations toll free at 1.888.331.2269, at 604.646.4527, or by email at firstname.lastname@example.org
West Melville Metals Inc. is a member of the Aurora Mineral Resource Group of companies. For more information please visit www.auroraresource.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain disclosures in this release, in particular the results of the 2012 exploration program and the DSO assessment of the Fraser Bay Project, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to West Melville's operations as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements, including risks as to the completion of the plans and projects. Readers are cautioned not to place undue reliance on forward-looking statements. Other than as required by applicable securities legislation, West Melville expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.