Carbonatites are rare intrusive bodies generated by the melting of rocks at great depths within the Earth's crust (~200km). As their name suggests, they are made up for the most part of carbonate minerals (calcite, dolomite, ankerite).

Because of their provenance, carbonatites are known to carry metals and minerals not commonly found in other rock types. They are the only economic source for niobium, a metal used mainly in high temperature and high tensile strength steel alloys, rare earth elements, a series of elements with unique properties sought by the high-tech industry and a privilege source for tantalum, phosphorus and fluorite.

No two carbonatite intrusives are alike and this is reflected in the diversity of the mineral deposits that may result. One of the largest copper mine in the world is located on the Palabora Carbonatite and has been in production continuously since 1964 operated by the mining giant RTZ. Current reserves are adequate to extend the mine life over the next 30 years. Also, the Premier Mine in South Africa which consists mainly of kimberlitic rocks contains a core of carbonatite. This mine is known to have produced the largest diamond ever at 3106 carats and has been in operation since 1902 with brief interruptions during war periods. Carbonatites are well known to host sizeable deposits that are relatively predictable in their extension. The Niobec Mine located in the Saguenay region of Québec, owned and operated by Cambior, has been producing niobium since 1975 from two lenses and despite continuous mining for nearly 30 years, the current reserves are sufficient for further 20 years without any exploration. NioGold recognized the potential of carbonatites and therefore decided to acquire two intrusive bodies, both located in Québec, for their unique characteristics.

The Montviel Carbonatite is located some 200km due north from Val-d’Or and is accessible through an all-weather gravel road extending from road 113 linking Val-d’Or and Chibougamau. The property was acquired through an option with Nomans Resources. Through a number of expansions, the property now covers some 4333hectares forming an irregular block of 79 mining cells. The carbonatite has only been briefly explored since its discovery by Jowsey Mining in 1958 while drilling for base metals on a geophysical target. From the scarce geological data available, the complex is made up of several syenite facies forming an irregular bilobate structure around a core of carbonatite. The carbonatite, per say, is also composed of facies with distinct iron, magnesium or calcium content as reflected in the mineralogy. From the extrapolation of the geophysical signature, the complex would extend over 8 by 3 km making it one of the largest alkaline intrusive in Canada.

From an exploration perspective, the property is host to several niobium, rare earth elements and phosphorus zones. Economic values of all three elements were obtained by Nomans Resources during diamond drilling program completed in the winter of 2002. Since the acquisition, NioGold flew a high-resolution airborne survey over the complete property. The results from this survey combined with the previous results will be used to fine-tune the targets in a major upcoming diamond drilling program planned for the fall of 2004.

NioGold is confident that this diamond drilling program will generate results that will help outline the true potential of the property.