NDU placement to fund work at Marg property

A private placement of 2 million special warrants at $2 each will provide NDU Resources (VSE) with exploration funds for its Marg property in the Yukon.

The special warrants convert to units which consist of one share and half a share purchase warrant. Each whole warrant is exercisable at $2.31 for a period of two years.

NDU is also completing a second private placement of 500,000 units at $2.31 per unit, with each unit consisting of one flow-through share and half a warrant. Each whole warrant is exercisable at $2.31 for two years.

Proceeds will be used to fund a $2-million exploration program.

At last report, the property contained a drill-indicated resource of 2.9 million tonnes grading 1.62% copper, 2.25% lead and 4.17% zinc, plus 55.9 grams silver and 0.89 grams gold per tonne. The estimate is based on a 10-ft. minimum mining width, with resource blocks averaging 20 ft. in thickness.

Massive sulphides at Marg occur in four closely spaced stratigraphic intervals. The zones, which average 16 ft. in thickness, are sub-parallel and strike east-west with a dip of about 50! to the south.

The horizons have been traced for more than 4,000 ft. along strike, and drilling is expected to concentrate on the eastern end of the area, where the two main horizons appear to converge.