Highlights

  • JV deal secured o ver the Mason Valley Copper Project , central to the w orld c lass Yerington copper d istrict , Nevada, USA
  • Project covers three main historical high grade underground copper mines with MBK’s focus targeting extensions of the known orebodies and new ta rgets along strike and at depth
  • Previous fractured ownership of the mining c laims is now consolidated and provid es a unique opportunity for modern resource development and potential near term mining development

Mason Valley Copper Project

  • Mason Valley is prospective for high grade copper mineralisation (historical average mined grades of between 2% to 6% copper). The Project includes three main mining centres with numerous smaller mines held under 1 0 km 2 of contiguous mining claims.
  • The Project lies central to the world class Yerington Copper district (13Mt copper production and resources ) with several large deposits in feasibility stage or in development.
  • The Mason Valley mines closed prematurely with the onset of the ‘Great Depression’ and never reopened , in part due to frac tured ownership.
  • Planned exploration activity will focus on previously untested extensions to historical orebodies at depth and along strike from the historical mines. Several geophysical targets associated with interpreted host stratigraphy also represent high priority targets.

JV Deal Structure

  • MBK will sole fund exploration to 31 March 2016, with a minimum commitment of US$1M (including an up – front payment of US$250,000) and may withdraw at any time after meeting this commitment.
  • After meeting the initial commitment, MBK may then elect to form a Joint Venture which includes the right to earn up to 80% in the Project over 6 years subject to meeting expenditure commitments totalling US$14M and completion of a bankable feasibility study and making addi tional consideration payments of US$9.5M comprising both cash and the issue of MBK shares (subject to shareholder approval, if required).
  • MBK will manage the Project and the Joint Venture

Inés Scotland, Chair of MBK said:

"The Mason Valley Copper Project is in a low risk, pro – mining district that is undergoing a significant mining revival with 12Mt of copper metal in resources currently at feasibility or mine development stage.

With the establishment of this Joint Venture, we are able to apply modern expl oration and resource development to a highly prospective area that has previously seen limited activity as a result of fragmented ownership of the mining claims.

While the majority of the district’s copper inventory is contained in large porphyry style dep osits being developed by Majors such as Freeport McMoRan, it is the higher grade skarn style systems that represent the priority target for MBK.

Nevada is globally renowned as a mining – friendly jurisdiction with significant production from many large ‘Carlin’ style gold mines , it is also ranked 4 th for copper production in the USA, with the USA ranking 4 th in global copper production behind Chile, China and Peru.

The Yerington camp is a significant copper district with world class statistics supported by a resource base of over 12Mt of copper 2 and past production of approximately 1Mt of copper. Mineralisation within the Yerington copper district is intimately associated with the Yerington batholith creating large scale porphyry style deposits together with associated skarn style deposits .

The Project includes three main historical underground copper mines ( high grade copper skarn style deposits ) with average mined grades of between of 2 % to 6% copper and with underground mining to depth s of approximately 150m.

Exploration targeting resource development will focus on extensions to the skarn mineral systems that hosted the high grade copper orebodies which effectively remain open at depth and along strike. Several high priority geophysical targets occur coincident with interpreted host stratigraphy adjacent and along strike to the existing mines and could potentially represent new copper rich skarn systems.

Past exploration and drilling (modern and historic al) over the Mason Valley mining camp has been limited due to the previous fragmented ownership of the mining claims/tenure. Under this A greement the entire Mason Valley mining camp including three high grade historical copper mines has been secured under 1 0 km 2 of contiguous claims representing the Project.

Mason Valley Copper Project (the Project)

The P roject consists of numerous historical underground mines from which three of the mines for which historical documentation is currently available coll ectively produced approximately 3.8Mt at a grade of 1.5% to 6.2% c opper from 1910 to 193 1 . The closure of these mines coincided with the onset of the ‘Great Depression’. The three copper mines for which documentation is available are :

  • Mason Valley Mine historical production 1.7Mt @ 2.5% to 6% Cu
  • Bluestone Mine historical production 1. 5Mt @ 1.5% to 3.5% Cu
  • Malachite Mine historical production 0.6Mt @ 3.5% to 6.2% Cu

Several smaller mines also exist ed within the Project area, such as the C opper H ill mine where records indicate that immediately before cessation of mining in the 1930’s over 350m of pre – mining development was completed with ore in sight.