Silver Range Resources has entered a property purchase agreement to sell Mel zinc-lead-barite property to Canadian company Benz Mining in the Yukon Territory in Canada.
The Mel property is 80km east of Watson Lake and 40km north of the Alaska Highway in south-east Yukon Territory.
It is situated within a belt of sedimentary exhalative zinc-lead deposits and has 538 mineral claims.
Under the agreement, Silver Range will sell 100% interest in the Mel Property to Benz Mining for a consideration of $2.7m to be paid in cash and shares.
Benz Mining will be paying the consideration over a five-year period. The company has already paid the initial amount of $20,000, which has been received by Silver Range.
The signed agreement does not require Benz Mining to pay any royalties or work requirements to Silver Range.
The Mel Main Zone contains an inferred resource of 5.38 million tonnes grading 6.45% zinc, 1.85% lead and 44.79% barite at a cut-off grade of 5.0% zinc-equivalent.
Main Mel Zone mineralisation comprises coarse-grained sphalerite and galena in the mixture of mudstone, silica-carbonate and coarsely crystalline barite.
The Cambrian to Ordovician marine sediments at the property contains the zinc-lead-barite mineralisation.
The main host units are carbonate and clastic sediments that are broadly folded in a north-south trending overturned syncline. This synclinal structure has been segregated by multiple north and northeast-trending faults.
Currently, four sediment-hosted, zinc-rich zones have been identified on the Mel property. They are the Main Mel, Jeri, Jeri North and Mel East Zones.