The Calumet-Sud project consists of 21 claims (12.1 km2). It is located in the Pontiac regional county municipality of southwestern Quebec. An option and joint venture agreement has been signed with SOQUEM granting SOQUEM the option to acquire an undivided 50% interest in the Project. Upon the exercise of the option, a joint venture would be created between Sphinx and SOQUEM. The project is adjacent to Sphinx’s owned 100% Green Palladium project.
Under the terms of this agreement SOQUEM can acquire a 50% interest in the Project by carrying out exploration work totaling $450,000 over an option period of four (4) years and by making cash payments in the amount of $93,000 to Gardin Inc. (“Gardin”, wholly owned by Michel Gauthier, a director of Sphinx) and $7,000 to Sphinx. The two payments have been made.
The Project is currently owned 100% by Sphinx as a result of a purchase by the Corporation from Gardin in 2015. The Corporation is committed to issue 4,769,308 shares to Gardin under certain conditions. The Project is adjacent to Sphinx’s wholly-owned Green Palladium project. Sphinx is committed to complete $384,240 of exploration work on the Green Palladium project by January 2018.
The Project covers volcano-sedimentary rocks with a significant potential for various types of mineralization including:1) zinc, lead, gold and silver-rich volcanogenic massive sulphide deposits, 2) layered platinum group element-bearing reef and related nickel-copper deposits associated with the Obwondiag layered igneous complex and; 3) high-grade zinc beds hosted in carbonates. The Project is adjacent to, and south of, the former New Calumet mine that produced 3.8 million tonnes at 5.8% Zn, 1.6% Pb, 65 g/t Ag and 0.4 g/t Au from 1943 to 1968 (see map by clicking here). In the 1980s, Lacana Mining Ltd. discovered significant gold mineralization immediately below the underground workings of the former New Calumet mine. In the Obwondiag layered igneous complex, Sphinx discovered a platinum group elements-bearing reef on its Green Palladium project (see press release of June 18, 2015).
An exploration program operated by SOQUEM, in collaboration with Sphinx, has commenced in June 2016. The program consists of a helicopter-borne magnetic, spectrometer and electromagnetic surveys (134 line-km estimated), followed by a ground gravimetric survey (16 line-km estimated) and prospecting.
The helicopter-borne survey will also cover the Green Palladium project (203 line-km estimated). This survey will be conducted in conjunction with a survey on the Calumet Nord project (274 line-km estimated) to share costs. Calumet North is 100% owned by Ressources Tranchemontage (a wholly owned subsidiary of Gardin) and was recently optioned to SOQUEM.
A map showing the location of the projects may be consulted by clicking here.