Zinccorp Resources Inc announce subject to regulatory approval, the acquisition of a 100% interest in the Crest Lake property, located in Keefer Township. This property continues to build Zinccorp’s gold presence in the West Timmins camp.
The Crest Lake property consists of two claims (21 units) located in the Keefer Township of Porcupine Mining Division. The property is accessible by road and is approximately 35 km southwest of Timmins. The property is approximately 20 km southwest of West Timmins Mining/Lake Shore Gold recent discovery of 12.75 g/T gold over 83.4 meters.
“We are strategically expanding our presence in the West Timmins gold district and are pleased to announce another quality property has been added to the Company’s already diverse portfolio,” comments Company President, Richard Hughes. “Zinccorp will continue to increase its exposure in the area as major exploration programs being carried out by numerous companies in proximity continue to test the potential of this historic gold camp. West Timmins Mining and Lake Shore Gold’s recent success only speaks to the camp’s potential, especially at depth. The Destor-Porcupine Fault Zone is a major structure dividing the West Timmins region and our focus has been and will continue to be acquisition and advancement of projects in the immediate area.”
The Crest Lake Property has seen limited exploration work in the past. The most recent company to review the property was Blackwater Resources in 1996, which included line cutting, mag and an IP survey but no drilling. Data from previous work is currently being reviewed by Company and will be used to guide upcoming exploration.
Consideration for the property consists of $105,000 and an additional $75,000 in cash or the equivalent value in shares (or a combination of cash and shares), as well as 400,000 shares, all payable over four years. (A further 100,000 shares are to be issued following the completion of a positive feasibility study). There is a 3% net smelter return payable, one-third (1%) of which may be purchased for $1,000,000.
The Company is also expecting assays from a summer exploration program on its 100% owned, Michelle Property, in Yukon territory, in the near future.