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Fireweed Zinc shares gain ground as it hits high grades at End zone of Macmillan Pass

Last updated: 14:46 29 Nov 2018 EST, First published: 09:46 29 Nov 2018 EST

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Fireweed is advancing the large Macmillan Pass zinc project

Fireweed Zinc Ltd (CVE:FWZ) shares advanced Thursday as it posted final drill results from the 2018 drill program on the Macmillan Pass project in Yukon, where high grades were encountered at the so-called End zone.

Here, one hole hit 4.78% zinc, 10.17% lead and 87 grams per tonne (g/t) silver over 11.08 metres (true width) in the middle of the zone.

READ: Fireweed Zinc consolidates position in the Macmilla n Pass district with Nidd acquisition

"End zone was not included in the property mineral resources or the PEA that we published earlier this year because of the limited historical data," noted Brandon Macdonald, the CEO of Fireweed Zinc.

"We are very pleased with the high-grade intersections we drilled at End zone in 2018 which returned better results than indicated in historical data."

The company boss said that End zone exploration was at an earlier stage than the company's Tom or Jason deposits but that it had the potential to positively impact project economics.

"We look forward to the 2019 field season where we can continue to delineate the extent of the known zones as well as conduct exploration for additional discoveries along the entire fertile corridor which remains highly prospective for the discovery of additional zinc mineralization including newly acquired ground extending west to the Boundary zinc zone and beyond," he said.

Another highlight of today's batch of results was a hole, which hit 1.98% zinc, 11.24% lead and 78 g/t silver over 6.83 metres (true width) on the western extension of the End zone.

Yesterday, Fireweed told investors that it had consolidated its position in the Macmillan Pass district — as it closed its previously announced acquisition of the  Nidd property.

Nidd lies on the western extension of the group's Macmillan Pass zinc project and the firm has now closed the sale and purchase agreement with Teck Metals Ltd, a subsidiary of Teck Resources Ltd.

Under the terms, Fireweed acquired a 100% interest in the 372 claims for 1.5 million shares, subject to a one-year lock-up for Teck.

Teck also retains a 1% net smelter return (NSR) royalty and has a right of the first offer to purchase from Fireweed, future production concentrates from the property.

Fireweed Zinc shares added around 6% to stand at $0.88 in Toronto.

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