Zonte Metals has entered an option agreement to wholly acquire the Cross Hills iron oxide copper-gold project on the island portion of Newfoundland and Labrador, Canada.
Comprising 327 claims, the property spans 8,175ha.
Out of the 327 claims, 90 are expected to be optioned from the property vendor and the remaining 237 to be map staked by the company.
Under the agreement, Zonte is required to make payments of $55,000 and issue 1.5 million common shares over four years to the undisclosed seller in exchange for 100% interest in the project.
Zonte Metals president and CEO Terry Christopher said: “We are now pleased to have added the Cross Hills project to our portfolio, which covers 25km of a regional structure which has geological, geochemical and geophysical characteristics of an iron oxide copper-gold system.
“Historically, this project has been explored for a number of elements, including rare earths and uranium, as well as for its iron oxide copper-gold potential, however, all historic programmes were limited in scope.”
“Zonte plans to conduct a focused programme followed by drilling as targets are defined. Exploration is expected to start shortly in the form of a ground magnetic survey over portions of the project.”
The agreement also includes a net smelter return (NSR) of 3% payable to the vendor.
Zonte has the option to purchase two-thirds of the NSR for $2m.
As part of the company’s due diligence, samples were collected from surface mineralisation at Dunns Mountain towards the northern end of the project.
Sampling results indicated copper mineralisation in the form of bornite in magnetite veins within an area of roughly 270m by 100m.
The transaction is conditional on the receipt of approval from the TSX Venture Exchange.