Little Mountain Enters into 2 Letters of Intent with Canadian Royalties
5/21/03
The Company has entered into 2 Letters of Intent ('LOI') with Canadian Royalties Inc., the recent discoverers of a substantial volume of high- grade Ni-Cu-PGE mineralization on their Trend assemblage in the Nunavik (Ungava) area of northern Quebec ( Nunavik). This important discovery occurs along the South Raglan Trend. Little Mountain will have the right to acquire a 50%-interest % in 2, 100%- CZZ-owned prospects.
CZZ's highly prospective properties in the area are proximate to two of the new Ni-Cu-PGE discoveries occurring, along this Ni-Cu-PGE horizon. Both properties, the Generals Prospect and the Lac Felix Prospect, host peridotite-pyroxenite-gabbro intrusive complexes generally similar to the ultramafics underlying the Mesamax Northwest, Expo, Tootoo Deposits, and several occurrences along the Raglan South Ttrend and being systematically explored by CZZ. Many of the Ni-Cu occurrences in the area host significant volumes of mineralized ultramafic rocks that have not been systematically explored for precious metals in earlier programs. Importantly, the Nunavik (Ungava) area of Northern Quebec is a well known nickel-copper-platinum-palladium producing area where Falconbridge invested over $700 million dollars into its profitable Raglan mining and milling operations.
Lac Felix Property
The Lac Felix property comprises contiguous claims ('MDU's')totaling approximately 3600 acres/ 1440 hectares more or less and is located approximately 30 km east-southeast of the Falconbridge Donaldson Deposit, ( 3,510,000 tonnes @ 3.75% Ni, 0.83% Cu, 6.6 g/t PGE ) and approximately 30 km north-northeast from of the high- grade Mesamax Northwest zone. Past exploration in and around the Lac Felix Prospect has identified a synclinal fold trending east-west, which shows its axis to plunge west- east. The rock sequence comprises sedimentary rocks with multiple areas of gossan, volcanics and mafic / ultramafic sills. Recent airborne surveys clearly identifies this folded structure.
Generals Prospect
The Generals property comprises contiguous claims totaling approximately 19300 acres/600 hectares more or less and is located some 35 km south-southwest of the Raglan (Katinniq) Mine and approximately 25-km west of the Tootoo Ni-Cu-PGE discovery. Past exploration carried on the area has included Airborne V L F and Radiometric Surveys, which have indicated definite several EM anomalies. Sampling programs carried out at a base metals occurrence showing +/- 1 km east of Generals yielded up to 0.47% Cu and 0.69% Ni in boulders near a dacite ridge. Another showing, located at +/- 2 km south-west of Generals, yielded up to 0.4% Ni and 0.38% Cu, near the contact between mafic / ultramafic rocks and sediments.
Under the terms of the Letters of Intent covering both prospects, Little Mountain will have the right to acquire a 50% interest in each, subject to a 1% NSR to CZZ, by completing the following terms and conditions:
1. Reimbursement of staking costs and fees incurred to date
2. Issuance of 200,000 common shares of Little Mountain for each property upon acceptance of the LOI by the TSX and the respective boards of directors of both Little Mountain and Canadian Royalties.
3. Incurring exploration expenditures on each property as follows: $2,000,000 in exploration and development expenditures as follows:
(i) $250,000 before December 31, 2003;
(ii) an additional $500,000 before December 31, 2004; and
a further $1,250,000 before December 31, 2005, resulting in an aggregate $2,000,000 in exploration and development expenditures on or before
December 31, 2005. Little Mountain shall pay to CZZ an annual advance royalty of $10,000 per year, commencing on January 1, 2006, and such advance royalties will be credited and set-off against the NSR, if any, that becomes payable.
Canadian Royalties will be the operator of the joint ventures and all work will be carried out under their direction and supervision. More details are expected to be announced shortly.
Little Mountain Resources Ltd. is a junior exploration company focused on the Canadian Resource Industry.
(Signed) Robert A. Sim
Robert A. Sim- Director
CONTACT: TEL: (604) 662-3004 Little Mountain Resources Ltd.
FAX: (604) 662-3063
