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Mining Explorers 2009: Commander Resources Ltd.

 

Last updated 11/1/2009 at Noon



CMD: TSX-V

President and CEO: Kenneth Leigh

Chairman: David Watkins

Vice President, Exploration: Bernard H. Kahlert

Commander Resources Ltd., incorporated in 1987 in British Columbia, is a diversified junior exploration company employing project generation and leverage strategies aimed at exploration and discovery in Canada where potential is high and political risk is low.

Commander's strategy is reflected in its extensive property portfolio, including two Nunavut properties, Baffin Island Gold, a large district-scale iron formation with multimillion-ounce gold potential; and Storm Copper, an advanced, high-grade copper opportunity in Nunavut where the company confirmed historical copper and zinc assay data in February; the Olympic Rob copper-gold-uranium property in Yukon Territory, and a number of properties in other Canadian provinces.

Baffin Gold is a new gold district in the early stages of exploration and has demonstrated good potential for one or more shallow high-grade gold deposits.

Gold discovered thus far has been largely free gold indicating the potential may exist to process ore on site without the requirement to produce and ship concentrates.

The project is located in central Baffin Island within the Qikiqtaaluk region of Nunavut.

In May, Commander Resources exercised its right to accelerate its interest to 100 percent in the Qimmiq Property from BHP Billiton Diamonds Inc. The Qimmiq Property covers 23,600 hectares, or 58,000 acres, and about 80 linear kilometers of a district-scale gold belt that Commander controls.

The Qimmiq Property is host to the main gold zones in the belt, including Malrok, Ridge Lake and the newly discovered Hébert zone.

The property encompasses the core of the Baffin Gold Project.

In early September, Commander Resources signed a farm-in and joint venture agreement with AngloGold Ashanti Ltd.'s subsidiary AngloGold Ashanti Holdings Plc.

Under the agreement, AngloGold may earn a 51 percent participating interest in Commander's Baffin Island Gold Project by funding C$20 million in exploration expenditures over a six-year period, including a firm commitment to spend C$5.5 million and complete a minimum of 3,000 meters diamond drilling within the first two years, and by completing a C$1.2 million private placement in the shares of Commander.

Commander will act as project manager for the initial two-year program, and AngloGold will pay a 10 percent management fee to Commander on all expenditures incurred on the project during that period.

Once AngloGold has vested a 51 percent interest in the Baffin Island project, the partners will form a 51-49 percent joint venture.

AngloGold then will have 60 days to increase its interest in the property to 70 percent by agreeing to sole-fund all ongoing expenditures to complete a feasibility study within four years on at least one of the prospects on the property.

On Sept. 24, Commander said it completed a four-week surface exploration program on the Baffin Island Gold Project that increased the scope of known gold occurrences and resulted in the discovery of new areas of gold mineralization.

The company awaited assay and geochemical results for some 850 chip, rock and soil samples collected at the Main Hébert area during the season.

The junior also conducted detailed geological mapping, channel sampling, prospecting and geophysics on the 1,500-meter-long Hébert Prospect, where high gold grades (e.g.

91.06 grams per metric ton gold over 1.6 meters) were discovered last season in quartz veins and altered metasedimentary rocks.

The main objectives of the 2009 program were to prospect and discover new gold occurrences and to follow up, expand and acquire definitive data over the Hébert Prospect area in preparation for a major drill campaign as part of an aggressive exploration program on the Baffin property starting in early 2010.

In addition to infill sampling on the main Hébert Prospect, highlights of the 2009 field work include discovery of a significant new gold showing, named "Traciane" 1.5 kilometers northeast of the Hébert Prospect within the same structural and geological setting as Hébert; an induced polarization survey over the central portion of the main Hébert Prospect, which outlined a 300-meter-by-350-meter chargeability anomaly coincident with outcropping gold mineralization and which remains open along strike; prospecting, which added another 350 meters of southwest strike to the 1.5-kilometer-long Hébert Prospect vein system; and discovery of two extensive areas of widespread arsenopyrite mineralization associated with quartz veining in sedimentary rocks similar to those at the Hébert Prospect.

One is 3.5 kilometers southeast of Hébert and the other is 2 kilometers to the east of Hébert. Commander also discovered bedding parallel gold-bearing quartz veins and 0.5- to 1.0-meter-thick bedding parallel zones of disseminated to semimassive arsenopyrite within the sedimentary rocks and staked another 34,500 hectares, or 83,145 acres, of mineral claims, bringing the Baffin Island Gold Property to more than 780 square kilometers, or 301 square miles, in size.

The company also mobilized fuel and supplies for the 2010 field program.

Cash and short-term deposits:

C$111,878 in its cash and cash equivalents

Working capital:

At June 30, 2009, Commander had C$649,474 in working capital.

Market capitalization: C$17.5 million

510 - 510 Burrard St.

Vancouver, BC

Canada V6C 3A8

Tel: 604-685-5254

Fax: 604-685-2814

 

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