Mining News: Startup zinc explorer begins Yukon drilling
Fireweed Zinc Ltd. July 21 announced the start of a 2,000-meter drill program at the Macmillan Pass zinc-lead-silver project in southeastern Yukon. The primary objectives of this initial phase of drilling is to verify historic mineral resources at the Tom and Jason deposits, and step-out drilling to expand the deposits. Together, these deposits host 6.43 million metric tons of historical resources averaging 6.3 percent zinc, 5.5 percent lead and 56.6 grams per metric ton silver in the indicated category; and 25.55 million metric tons averaging 6.7 percent zinc, 3.5 percent lead and 33.9 g/t silver. Fireweed, a new public mineral exploration company focused on zinc, has the option to acquire full ownership of Macmillan Pass by investing C$1 million on property exploration and paying C$1 million in cash to Hudbay Minerals Inc. Fireweed has already paid C$250,000 and the balance is due upon exercise of the option. Additionally, upon exercise of the option, Fireweed must issue shares to Hudbay equal to 15 percent of Fireweed’s issued and outstanding shares at the time. The Macmillan property has a camp, road and airstrip, which has allowed Fireweed to get off to a quick start on exploration. Fireweed plans to complete at least C$1.2 million of exploration at the project this year with the aim of bringing the historical resources on both the Tom and Jason deposits to current standards and seek new discoveries across the 2,864-hectare (7,077 acres) property. In addition to drilling, the company’s initial phase of 2017 exploration will include re-sampling of select historic drill core to confirm assays from previous work; surface mapping and geochemical sampling in exploration for new discoveries; surveying to accurately locate old and new drill hole locations; airborne LiDAR surveying to produce an accurate topographic map of the property; and compilation of historical data. The results of this year’s program will be used to complete an updated NI 43-101 resource estimate before year end. Fireweed then plans to undertake a preliminary economic assessment to evaluate project economics which is expected to be completed in the first half of 2018.