The Hecla-Kilmer complex is located approximately 35km southwest of the Company’s Ranoke property in northern Ontario
VR Resources announced the acquisition of the Hecla-Kilmer carbonatite complex and mineral property (HK) in order to bolster its Ranoke copper-gold exploration strategy in northern Ontario.
The Hecla-Kilmer complex is located approximately 35km southwest of the Company’s Ranoke property in northern Ontario.
Compared to the Ranoke property, it is located half the distance to the Ontario hydro-electric facility at Otter Rapids and the northern terminus of Highway 634 which links the region to the towns of Cochrane and Kapuskasing along the northern Trans-Canada Highway located some 100 km’s to the south.
The broad terms of the proposed acquisition of the Hecla-Kilmer property include:
Agreement to acquire a 100% interest in the HK property (“the Acquisition”) from private vendors (the “Vendors”), pursuant to a binding acquisition agreement dated June 15, 2020;
An initial payment of $15,000 and the issuance of 75,000 common shares in the capital of VR to the Vendors on closing of the Acquisition (“the Closing”);
An additional payment of $50,000 and issuance of 100,000 common shares in the capital of VR to the Vendors upon commencement by VR of a diamond drill program on the property within 24 months of the Closing;
The Vendors will be granted a Net Smelter Returns royalty of 3% on Closing, and;
Closing is subject to acceptance by the TSX Venture Exchange.
Both the Ranoke and HK properties are centered on large magnetic anomalies located along the western margin of the Kapuskasing Structural Zone, a long-lived, crustal-scale fault zone with bisects the Archean Superior craton and hosts numerous alkaline, ultrabasic and carbonatite intrusions and kimberlites (Figure 1). Hecla-Kilmer is one such occurrence; it is a zoned, polyphase carbonatite complex 4 – 6 km’s across. There has been no previous exploration or drilling for copper-gold breccia systems at HK; the opportunity for VR is to be the first to apply modern IOCG and carbonatite copper-gold mineral deposit models and exploration technology to the large-scale complex at HK.
Commenting on the news today, VR’s CEO Dr. Michael Gunning stated: “While the Company continues to evaluate strategies to return to Ranoke within the framework of a safe working environment with regard to COVID-19, we are excited about this opportunity to expand the Ranoke strategy to include a second, large, zoned and previously untested magnetic anomaly and intrusive complex along the KSZ. The purpose of this news release is simply to provide the agreed-upon terms for the acquisition. We will illustrate our conviction on the potential of this target shortly, in a follow-up news release once requisite approvals are obtained and the Agreement is closed. Our work on Ranoke during the past two years gives us a running head start at HK, and we intend to commence exploration immediately. We believe that the untested potential of this complex for a large-scale copper-gold hydrothermal system is significant, and we look forward to providing further updates as our exploration proceeds.”
The HK property consists of 80 mineral claims in one contiguous block covering 1,649 hectares. Like the Ranoke property, HK is located on Federal crown land, with mineral rights administered by the provincial Ontario Ministry of Energy, Northern Development and Mines (MENDM). There are no annual payments, but the MENDM requires certain annual exploration expenditures and reporting (ie. mineral assessment reports) in order to maintain a mineral claim in good standing. The property falls within the Moose Cree First Nation traditional territory.
Technical information for this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101. Justin Daley, P.Geo., Principal Geologist at VR and a non-independent Qualified Person oversees and/or participates in all aspects of the Company’s mineral exploration projects, and the content of this news release has been reviewed on behalf of the Company by the CEO, Dr. Michael Gunning, P.Geo., a non-independent Qualified Person.
Source: Company Press Release