Bitterroot Resources (TSX-V:BTT) says its Michigan subsidiary has secured up to US$5.22 million ($7.33 million) in US government funding for exploration at the LM Nickel-Copper Project.
The US Department of War (DoW) awarded the funding to Trans Superior Resources under the Defense Production Act Title III program. DoW will cover half of the eligible exploration costs, with the project partners funding the remainder. These costs include drilling, geophysical and geochemical surveys, permitting, labour, and equipment.
Trans Superior operates the project and holds a 51% interest, while privately held Below Exploration owns the remaining 49%.
CEO Michael Carr says the non-dilutive funding will reduce Bitterroot’s cost of capital and allow the joint venture partners to resume drilling.
“The non-dilutive funds will reduce our cost of capital and allow the LM project partners to finance and resume an aggressive drilling program,” Carr says.
Previous exploration comprised 7,565m of drilling across 26 core holes to a depth of 300m. Ten holes encountered disseminated, semi-massive or massive sulphide nickel-copper-platinum group metal mineralisation within an interpreted magma conduit.
Trans Superior says it plans to begin a 15–20-hole program during the December quarter, with individual holes ranging from 500–700m. Drilling will test the conduit between depths of 400m and 700m.
Borehole electromagnetic and other geophysical surveys will support targeting during the program. Bitterroot says the main objective is to identify the source of high-grade nickel-copper massive sulphide fragments encountered in earlier drilling.
The project lies within Michigan’s Baraga basin, which also hosts Talon Metals’ (TSX:TLO) operating Eagle Nickel-Copper Mine.
Bitterroot Resources is a Canadian explorer focused on projects in the US, such as nickel-copper-platinum group metal targets in Michigan and gold-silver exploration in Nevada.
Write to France Pinzon at Mining.com.au
Images: Bitterroot Resources
