Eagle Plains Resources has granted Tana Resources, a Canadian private mining exploration company, an exclusive option to acquire up to a 75% interest in its Mount Polly West copper-gold project in British Columbia's Cariboo region.
The project spans 7,407 hectares (ha) and is adjacent to Imperial Metals' Mount Polley property.
Both companies' management teams see the project's potential for copper-gold porphyry and epithermal gold mineralisation.
Historical trenching at the site has yielded positive results, including 1.12% copper over 35m, with a high-grade section of 7.12% copper over 5m.
Previous explorations have identified multiple mineralised intrusions and geophysical and geochemical anomalies that suggest the presence of additional prospective intrusions.
Eagle Plains' exploration efforts have also discovered basal till gold grain counts, indicating potential proximal sources.
To exercise the option, Tana must make cash payments, share issuances and fund exploration expenditures.
The agreement is divided into two phases, with the first option allowing Tana to acquire a 60% interest by paying C$250,000 ($182,836), issuing 2.75 million common shares and funding C$3m in exploration over four years.
The second option enables Tana to acquire an additional 15% interest by completing a bankable feasibility study by 31 December 2031.
Tana CEO Vic Koraijan said: "We are excited to add the Mount Polley West project to the Tana portfolio and work with the Eagle Plains, one of the top project generators.”
If Tana exercises either option, Eagle Plains will receive a 2% smelter return royalty on part of the property, with a buyback option for half the royalty.
Eagle Plains will act as the operator and may use TerraLogic Exploration as a geoscience consultant.
Upon exercising the options, Tana and Eagle Plains will form a joint venture (JV) to continue exploring and developing the property.
Eagle Plains CEO and president Chuck Downie said: "Grass roots fieldwork by Eagle Plains and past operators at MPW has identified many of the geological indicators associated with porphyry and epithermal mineralising systems and we look forward to working with the Tana team to advance the project.”
