Canadian mining company Nine Mile Metals has signed an agreement with Prospect Or to acquire an additional 10.78km² of land with 49 claim units at Bathurst Mining Camp (BMC) in New Brunswick.
These new claim units are located next to Nine Mile Metals’ California Lake and Nine Mile Brook volcanogenic massive sulfide (VMS) projects.
The purchase cements complete targeted trends that it identified last season. It will allow the company to begin complete exploration programmes at the targets.
As part of the agreement, the company plans to issue 300,000 shares to Prospect Or. These shares will have a four-month hold legend.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
It also agreed to a 2% net smelter royalty (NSR) for the metallic minerals produced from the new claims.
Nine Mile will have a right to buy 50% of the 2% NSR from the sellers for $1m at any time before commercial production begins at the project. The deal is expected to close on 14 September.
Nine Mile Metals CEO and director Patrick J Cruickshank said: “As previously announced, we drilled eight drill holes with VMS mineralisation present over 10m to 14m widths.
“We now can proceed to explore the entire trend and the source target identified with our technology due south of last year’s drilling, culminating in a target on the Wedge Project and these newly acquired claims. These new properties increase our footprint in the Nine Mile Synform directly south of our Nine Mile Brook Project and adjacent to the western boundary of our acquisition last year of the Windfall claims.
“Our leading-edge technologies have identified high-priority trends and specific targets that we now own 100% allowing us to address the entire geophysical trend. We look forward to future announcements on these two wholly owned target areas in our expanding portfolio in the BMC.”
The California Lake property covers 31.16km² of land and has 141 claim units. According to Nine Mile Metals, the property’s mineralisation consists of a copper-rich base with upward grading to a lead-zinc-rich zone.
The Nine Mile Brook property is spread across 43.98km² of land and located 10km from the historic Brunswick 12 mine.
The company claims that the project has been identified to contain up to 10.12% of copper (Cu), 1% of zinc (Zn), 1.41% of lead (Pb), 91.47 grams per tonne (g/t) of silver (Ag) and 0.84g/t gold (Au) over 15.10m.