Copper Project with Drill-Ready Targets
Recently, Usha Resources Ltd. (TSXV: USHA) (OTCQB: USHAF; FSE: JO0) granted the option to acquire up to 90% of the Jackpot Lakes lithium brine project to the aspiring Nasdaq-listed lithium producer Stardust Power (Market Cap US$675 million). If the deal is finalized, it would have a total volume of 26.025 million USD spread over five years, with 8 million USD fixed for work on the project and the rest flowing to Usha in cash or shares. However, Usha’s enterprising CEO Deepak Varshney is not waiting for the transaction to be officially completed, but has already secured a new, highly promising project for his company!
As just announced, Usha has secured the option to acquire 100% of the Southern Arm copper property from Abitibi Metals (WKN A3EWQ3 / CSE AMQ). The special feature: This is not a greenfield project that is still at the very beginning of exploration. On the contrary, upon completion of the transaction, Usha can tackle a project where Abitibi has already identified an approximately 7.3-kilometer-long copper and gold trend with numerous targets!
Excellent Neighborhood
This trend extends along the regional Bapst fault within the volcanic rocks of the Brouillan-Fenelon Group, which hosts the nearby Selbaie mine (~15 km west) and the B26 deposit (~16 km southwest). According to the company, there is potential for polymetallic mineralization in VMS style here.
To illustrate the potential: Abitibi’s B26 copper deposit already shows, before recent drilling results were included, an indicated resource of 6.97 million tonnes at 2.94% copper equivalent and an inferred resource of 4.41 million tonnes at 2.97% copper equivalent. The nearby Fenlon gold project, in turn, has an indicated resource of 2.4 million ounces and an inferred resource of 1.7 million ounces of gold, while the Selbaie mine historically produced 53 million tonnes at 0.94% copper, 1.9% zinc, as well as 0.58% gold and 40.7 g/t silver!
Targets Already Identified, First Drilling as Early as This Fall!
As mentioned, numerous drill targets have already been identified on Southern Arm, including one named Hollywood where anomalous (“elevated”) metal contents have already been detected over an extent of about 1.8 kilometers! And Hollywood remains open for expansion, according to CEO Varshney…
These and other exploration targets on Southern Arm have been developed by Abitibi’s technical team, which will continue to advise Usha as the company advances its exploration strategy. A fully funded drilling program is already planned for this fall.
For the acquisition of the Southern Arm project, Usha must issue a total of 5 million shares to Abitibi – 2.5 million now and 2.5 million on the first anniversary of the agreement – as well as invest 2 million dollars in the exploration of the project by the second anniversary of the agreement.
Conclusion: If the planned transaction for Southern Arm is implemented as planned, Usha will become a diversified North American metals company at one stroke, with the opportunity to develop an already advanced project in one of Canada’s best mining provinces. And Southern Arm, as CEO Deepak Varshney also emphasizes, could become a company maker for Usha! In any case, we are already extremely excited about the – fully funded – first drilling program this fall!
