Ormonde Mining plc has given a mixed reaction to its 18.9% investee Peak Nickel Ltd’s option offer for Winshear Gold Corp to acquire the Portsoy licence in Aberdeenshire.
CHALLENGING
If exercised, the Canadian explorer would need to complete a £3 million drilling programme for 1,000m over five years, with a minimum annual spend of £300,000.
Peak describes the 250km2 licence as the “UK’s highest grade nickel, copper cobalt project” with the Rodburn target holding a JORC exploration estimate of 10 to 20 million tons grading 1.0% to 1.9% nickel equivalent.
Rodburn has undergone no follow-up work since its discovery in the early 1970s by the Rio Tinto-Goldfields joint venture.
Ormonde chief executive officer Brendan McMorrow today said: “While Ormonde did not support this transaction, as the board believes it undervalues the opportunity, we note the potential to realise value on the company’s investment without further exposure to significant exploration costs in a challenging nickel market.”
The company’s main interests are gold opportunities in Newfoundland and Spain.