Majescor Resources (TSX-V:MJX) recently completed the purchase of a 100% interest in SIMACT Alliance Copper Gold, a Montreal based private company headed by a group of Canadian financiers and Haitian American developers. SIMACT in turn controls just approximately 62% of a Haitian based company that owns the Somine copper-gold Property, located in the highly prospective Northeast mineral district of the country.
The 50 km2 Somine Property contains the Blondin and Douvray porphyry copper gold prospects, and the Faille B quartz vein gold prospect, along with a number of other areas that exhibit surface mineralization for copper and gold.
The Property’s mineral rights and the titleholder’s obligations have been assigned under a Mining Convention executed with the State in May 2005 and valid for an initial 20-year period. The company, through its Haitian partner, has also applied for three additional 50 km2 exploration permits located in the general vicinity of the Somine Property. The attribution of the new permits is pending.
Haiti and the adjoining Dominican Republic are extremely prospective for both epithermal gold and silver, along with copper and gold deposits. These resources are contained within a very substantial mineralized belt that runs through both countries and crosses northern Haiti, where it is known as the Massif-du-Nord volcanic-intrusive complex.
This belt is part of a much larger cretaceous island arc, located along the northern margin of the Caribbean Plate. This also includes the Pueblo Viejo Deposit which is located within the Dominican Republic, and is known as one of the world’s largest gold deposits, with a total resource that contains approximately 30 million ounces of gold and 500 million pounds of Copper.
The Somine Property is located within the Massif-du-Nord complex and abuts permits that are part of a joint venture between Eurasian Minerals (TSX:EMX) and Newmont Mining (NYSE:NEM). Newmont is currently funding a $30 million, multi year, regional exploration program in northern Haiti that has already reported copper, gold and silver assays that has potential to develop into a series of discoveries on a district scale. At the Truel License, the partners are reporting high grade copper, gold and silver veins extending over 6 kilometers.
The Haitian section of the mineralized volcanic-intrusive belt which contains the Somine property has remained mostly unexplored due to a very convoluted political situation that has existed in Haiti for many generations.
The Somine property was abandoned by St. Genevieve Resources in 1999 after it completed the first phase of a very promising exploration program (the decrease in the price of copper and gold starting in 1997 was one of the critical factor in the pull-out of Ste-Genevieve). The massive earthquake that hit Haiti in January, 2010, may also be serving as an instigator for the development of projects that will put people to work, and provide revenue to grow the local economy.
St. Genevieve completed 24 diamond drill holes totaling 6,233 metres at the Douvray prospect in 1997 producing a number of impressive results. This included the definition of very shallow mineralization across many holes, such as KD-15 which intersected 22.5 meters of 1.11% copper at a depth of 9 meters, as well as 10.5 m of 1.83% copper from a depth of 19.5 meters; KD-6 hit the widest intersection of 210 meters of 0.60% copper (from 65-275 meters), including 42m of 1.39% copper (from 75.5 to 117.5 meters); and KD-20 which cut the second richest intersection of 27 meters of 1.69% copper from a depth of 19.5 meters.
Impressively, 21 of 24 holes produced significant grades of mineralization, which attests to the robustness of copper values within the zone that was drilled. No assays were reported for gold, and all of the original core has been lost, so much of this data will need to be validated with fresh drilling.
In the 1970’s, the United Nations drilled the Douvray copper prospect completing 14 drill holes for 2,300 meters and they identified a non NI 43-101-compliant resource of 174 million tonnes of 0.55% copper for the sulfide zone and 19 million tonnes of copper for the oxide zone. These numbers were based on minimum 5 meter mineralized sections, a 0.3% copper cut-off grade and a specific gravity of 2.7 g/cm3. A follow-up program by the German Geological Survey added 24 holes and delineated a revised non NI 43-101-compliant resource of 92 million tonnes of 0.44% copper. St. Genevieve identified a non compliant Indicated mineral resource in two zones of 69.5 million tonnes of 0.39% copper down to a depth of 250 meters.
The United Nations also drilled the Blondin porphyry copper prospect, completing 8 holes for 1,152 meters, and identified a non NI 43-101-compliant resource of 50 million tonnes of 0.56% copper at a 0.3% cutoff. In 1997, a new resources calculation by KWG Resources, a partner of St. Genevieve in the Somine property, placed the Blonding prospect at a non compliant resource of 52 million tonnes of 0.56% Copper.
The U.N. also drilled the Faille B Gold Prospect for 31 holes, and estimated a non NI 43-101 compliant resource of 523,000 tons at 14 g/t gold to a depth of 150 meters, and estimated 1,070,000 million tonnes at 2.27 g/t to a depth of 50 meters. St Genevieve reported 115,013 tonnes at 11.43 g/t gold and suggested 241,780 tonnes at 11.43 g/t, and estimated that an open pit would contain 1,070,00 tonnes at 2.36 g/t, while KWG estimated the deposit to hold 552,000 tonnes @ 12.8 g\t for the deposit’s upper 150 m;
In October of 2009, C. Tucker Barrie, Ph.D., P.Geo. completed a technical report on the property for Majescor (available at sedar.com) , and concluded that all of the prior exploration and drilling data confirm that the Blondin, Douvray and Faille B Prospects are all open at depth, and along strike. He also pointed to the existence of additional drilling targets on the property, especially at Dos Rada, which exhibited an abundance of surface malachite.
The cost of a two phase exploration and drilling program was estimated at C$1.2 million for the first phase and C$2.1 million for the second phase. This would cover the completion of surface survey work, sampling, Induced Polarization studies and 8,500 meters of drilling in 35 – 40 holes across Faille B, Douvray and the extension to Dos Rada, followed by initial metallurgical and scoping studies. Phase I of the exploration program is expected to start in February.
The company and its Haitian partner have also continued a surface sampling program across the property, and identified over 100 new copper occurrences. Geologists also uncovered a significant new gold target 1.3 km southeast of the historical Douvray copper prospect. Vein 37 (known as the “Grosse Veine”), which was stripped on a 20 meter x 20 meter section, confirmed the existence of open mineralization in all directions with spots assays of up to 71.3 g/t gold and 5.80% copper. These early stage technical studies have upgraded the prospectivity of the property by expanding the number of targets that are now contained within a 10 kilometer x 3.8 kilometer wide copper-bearing corridor.
A major international effort is currently underway to rebuild Haiti after the devastating earthquake that hit in mid-January of 2010. Majescor points out that the Somine Property holds significant potential for the development of a resource project that can assist this tiny nation. Majescor’s prime exploration target on the property is for one or more near surface (open-cast) large tonnage (greater than 100 million tonnes) low grade copper-gold ore bodies.
Many locals are looking across the border into the Dominican Republic, where Barrick Gold (NYSE: ABX) and Goldcorp (NYSE: GG) are about half way through the development of the Pueblo Viejo Mine, which has a capital budget of $3 billion, and is set to commence production in the first quarter of 2012 . Barrick Gold expects to produce 625,000 ounces of gold per year at a total cost of US$275- 300 per ounce.
Other companies operating on the Dominican side of the belt include Estrella Gold Corp (TSX: EST), Brigus Gold (TSX: BRD) GoldQuest (TSX-V: GQC), and EnviroGold (ASX: EVG) amongst others.
Based on its current valuation and stock performance, Majescor appears to have been a much underfollowed, and undervalued company, but it is now starting to attract interest, with shares in the company rising from around 18 cents to 25 cents in recent weeks.
This is a pure exploration play, but the combination of historical information and Tier 1 gold producers in the neighborhood suggest Majescor has a better than average chance of company making discovery