Mining News: New zinc explorer emerges in Yukon

Fireweed Zinc Ltd. May 29 announced the completion of a C$4 million initial public offering and the start of trading on the TSX Venture Exchange. Fireweed is a new exploration company that has an option to acquire Macmillan Pass, a major advanced zinc-lead project in eastern Yukon. Macmillan Pass includes two large zinc-lead-silver deposits known as Tom and Jason. Together, these deposits historical resources of 6.43 million metric tons averaging 6.33 percent zin, 5.505 percent lead and 56.55 grams per metric ton silver in the indicated category; and 25.55 million metric tons averaging 6.71 percent zinc, 3.48 percent lead and 33.86 g/t silver in the inferred category. The Tom deposit has historically seen a 3,423 meters of underground development, 5,953 meters of underground core drilling in 84 holes, and 27,541 meters of surface core drilling in 128 holes; while at Jason a total of 37,924 meters has been drilled in 128 core holes from surface. Fireweed 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 then issued and outstanding shares on a fully diluted basis, but excluding shares issued for acquisitions outside of the Tom and Jason deposits. The Macmillan property has a camp, road and airstrip, which allows Fireweed to immediately begin drilling and other exploration work on the property. 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. John Robins, a geologist with over 25 years of experience, is executive director of Fireweed. Robins’ career includes founding and serving as executive chairman of Kaminak Gold Corp., which discovered the Coffee Gold deposits in Yukon and sold the company to Goldcorp for C$520 million in 2016. Brandon Macdonald, a geologist with over 20 years in the mining industry, will serve as CEO of Fireweed. His diverse experience includes exploration geology worldwide and investment banking in the London, where he worked in structuring project financings and investments at Macquarie Bank.

–SHANE LASLEY