Fireweed Zinc Ltd (CVE:FWZ) (OTCMKTS:FWEDF) (FRA:20F) revealed on Monday that it has signed two separate agreements to acquire significant large claim blocks on the western extensions of Boundary Zone and the Fertile Corridor in its giant Macmillan Pass project, in Canada’s wild and mountainous Yukon.
The first agreement with QuestEx Gold & Copper Ltd (TSXV:QEX) (OTCMKTS:CLASF) (FRA:16C1) consists of 410 claims covering 74 kilometers (km). These claims cover the immediate western extension of the Fertile Corridor (the Sol Property), as well as several small separate claim blocks with known mineral showings. Fireweed will acquire 100% interest in the properties for C$100,000 and 350,000 shares.
QuestEx retains a 0.5% Net Smelter Royalty (NSR) on all base metals and silver and a 2% NSR on all other metals including gold, which may be mined from the property, said the company. There is an additional private third-party royalty consisting of a 2% NSR on production from the Sol Property, of which 1% may be parlayed for C$2 million.
Firewood has cut a second agreement for the Oro Property with two private arms-length individuals for a one-year option agreement under which it can acquire 1,582 claims covering an area of 318km. Under this option agreement, Fireweed can exercise the option and acquire 100% interest in the claims by paying C$250,000 and 500,000 shares once the market regulators approve the options.
Separately, Fireweed can also on or before 12 months of approval, pay up C$250,000 and 500,000 shares. The vendors retain a 0.5% NSR on all base metals and silver and a 2% NSR on all other metals, including gold, which may be mined from the property.
Fireweed Zinc CEO Brandon Macdonald said: “With the signing of these agreements, we have acquired a large land package with good exploration potential on the western extensions of the Fertile Corridor and Boundary Zone. These properties were originally explored for gold and that work generated a large volume of geochemical and geophysical data that was not closely examined for other metals.”
“There are large and strong soil geochemical anomalies indicating good potential for shale-hosted zinc and lead deposits like our Tom, Jason and Boundary Zones. In addition, there are some big kilometer-scale silver anomalies, which may also indicate mineralization of a different type altogether. Our main exploration focus will remain at Boundary, Tom and Jason but these new properties represent an intriguing lottery ticket with potential for future big discoveries,” he added.
The new acquisitions significantly increase the company’s land position in the Macmillan Pass area to 936km from 544.
Historic exploration for gold in the area left a large legacy of exploration data, which outlined geochemical anomalies in zinc and lead as well as large anomalies in silver, said the company. None of the zinc, lead or silver anomalies have seen any significant exploration.
Contact the author Uttara Choudhury at [email protected]
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