Annual and Special Meeting
December 11, 2013 10:30am
80 Richmond Street West, Suite 1101
Toronto ON M5H 2A4
For Information on matters to be addressed at the Annual and Special Meeting, please visit the Annual Meeting page under the Investors Section.
May 1, 2013
Greenock Resources Inc. (“Greenock”) is a Canadian based international mineral exploration and development company that is focused on developing a portfolio of natural resource properties. Greenock’s primary project is a gold-silver property in Nevada called the Needles property. Greenock is focusing on North America seeking additional precious metal opportunities including acquisition of properties directly or by way of a joint venture. Canadian properties with flow through eligible exploration programs are one of the prime acquisition targets.
The Needles property,100% owned by Greenock, is located in Nye County 60 miles east of Tonapah, Nevada, and was first discovered in 1919. Originally called the Arrowhead and Arrowhead Extension Mines it produced silver-antimony-gold ore from 1920 to 1939. This early development included sinking the inclined Arrowhead shaft to a depth of 350 feet with drifting on four levels and a second 150 foot two compartment shaft with two working levels. The principal deposit target Needles area is an epithermal gold, silver and base metals mineralization. Epithermal gold-silver deposits are the largest producing deposits in northern Nye County since discovery of silver-rich veins in the Tonopah district in the early 1900’s.
The Needles geological setting is analogous to the Round Mountain a gold-silver Mine (Barrick Gold Corp-50%, Kinross Gold Corp-50%) located approximately 65 miles NW of the property. The Round Mountain Mine is a classic epithermal deposit with a large tonnage low grade halo zone that has produced more than 13,200,000 oz of gold and 11,000,000 oz of silver since 1907; production in 2012 was 384,662 oz of gold equivalent at a cost of US$ 717.00/oz.
Greenock acquired PTM Mineral (Cayman) Ltd. (“PTM”) in 2005 and has been attempting to advance the development of a major copper and cobalt project, Kakanda located in the Democratic Republic of Congo (“DRC”).
The Kakanda Copper/Cobalt project is located Central African Copper Belt is adjacent to the Tenke Fungurume project presently being developed by Freeport McMoRan Gold & Copper Company and Lundin Mining. The Kakanda tailings project has NI 43-101 measured and indicated resources of 18.5 million tonnes with an average grade of 1.25% copper and 0.15% cobalt. Adjacent hard rock deposits have a historical resource of 18.6 million tonnes with an average grade of 3.19% copper and 0.19% cobalt.
Historically the Kakanda project has been a primary focus of Greenock's exploration efforts. On February 21, 2012 Greenock was informed of events in the DRC by Eurasian Natural Resources Corporation ("ENRC") that challenged the mineral rights held by PTM, a wholly owned subsidiary of Greenock. PTM disagrees with these statements and actions regarding its rights to develop the Kakanda tailings. Based on legal opinions from PTM's DRC counsel, it is PTM’s position that the proper procedures, notification and approvals for the rescinding of mineral licenses in DRC have not been followed and that the revocation of PTM's rights to the Kakanda tailings is invalid. Given the existing limited financial resources of Greenock and PTM, defense options to protect Kakanda rights have been constrained and are under review. The operating challenges in the DRC affecting other foreign owned companies have resulted in a reduced emphasis by Greenock on the Kakanda project.
Greenock will continue to maintain PTM’s historical Kakanda rights and related technical engineering reports to a professional standard to maintain an economic interest should future development in the Kakanda area proceed. The historic cost to develop these engineering reports and feasibility studies is in excess of US $10 million.
Kakanda remains a large technically feasible and economically viable project that will eventually be developed when the joint venture terms and development rights are resolved to the satisfaction of all possible investors and DRC government authorities. Given the excalating capital costs of mining ventures, Kakanda will require a major operator with significant technical and financial resources for its development to full operation. To achieve that partnership Greenock has been discussing (March 11, 2013 press release) cooperative strategies with ENRC that would solve the rights and title issues to enable both parties to maximize the value of technical studies that have demonstrated the significant economic and technical viability of the Kakanda copper/cobalt project.