Progressive Planet Solutions Inc (CVE:PLAN) is set to option a third natural pozzolan project in British Columbia, it told investors Monday.
The firm has inked an option agreement with Jeremy Marlow (an arms-length party) on the property in Heffley Creek, British Columbia, following the firm's surface sampling, which confirmed the presence of alumino-silicates (natural pozzolans), magnesium, and anomalous gold and silver.
The company wants to increase its natural pozzolan assets in the Kamloops area of British Columbia.
Pozzolans are receiving more interest from the cement industry as the commercial supply of fly ash is diminishing with the continued closure of coal fired power plants in Alberta and Saskatchewan.
The Vancouver-based company will pay Marlow a total of C$55,000 over 48 months and spend C$275,000 to explore the property over the same time frame.
Marlow will also be entitled to a royalty of $8 per ton of industrial mineral products produced, which is subject to a 75% buyback right for C$150,000.
Marlow will also keep a 3% net smelter royalty (NSR) precious metals royalty, of which the firm can buy back half for C$1.5 million. No shares are to be issued under the option agreement.
The property first drew the interest of Progressive due to its potential as a source of natural pozzolans. But when surface sampling also revealed that gold and silver were in the soil (0.28 g/t gold and 1.6 g/t silver), Progressive requested the precious metal rights to the property as well as the industrial mineral rights it was first looking for.
"I am keen to see this Heffley Creek property systematically explored. We are excited about its proximity and easy access,” said PLAN's chief executive Steve Harpur.
"It is approximately a 25-minute drive from Kamloops, BC. This property was explored by LaFarge Canada in 1999 where they drilled an alumino-silicate rich area (natural pozzolan) of the property. While our primary interest is the natural pozzolans, we intend to conduct further soil sampling at the property in the spring of 2020 in search of gold and silver."
The samples were just grab samples and aren’t representative of the full extent of the property’s mineralization. Once snow has melted in British Columbia, Progressive is set to complete more comprehensive soil sampling in the second quarter of 2020.
Also in today's statement, Progressive revealed it had reached a consulting agreement with Marlow. He will assist in exploration conducted on the pozzolan property during the first two years the deal.
A minimum of $9,800 will be paid to Marlow in 2020 and an additional $9,800 will be awarded to him in 2021 for his assistance. He will also receive 50,000 progressive stock options in 2020 and another 50,000 options in 2021.
Progressive Planet’s flagship project is its Z1 Zeolite Quarry in Cache Creek, British Columbia.