VANCOUVER (miningweekly.com) – Project generator Transition Metals has optioned its Homathko project, in British Columbia, to junior mining company Shamrock Enterprises.
According to information provided by Transition, the property hosts high-grade gold occurrences and consists of staked claims covering 2 986 ha, which are held by Transition.
Under the terms of the option agreement, Shamrock can earn a 100% interest in the claims by providing Transition with C$5 000 cash and C$100 000 worth of Shamrock stock, as well as completing C$500 000 of exploration expenditures within three years.
If Shamrock earns its interest, Transition will retain a 2% net smelter return royalty (NSR), of which Shamrock can buy half (1% NSR) for C$1-million before starting commercial production.
“We have always been encouraged by the potential for a high-grade gold deposit on the Homathko property. Our work to date has identified an extensive gold mineralised alteration zone that remains to be tested with drilling,” Transition president and CEO Scott McLean said in a press statement released Thursday.
Falconbridge first identified mineralisation on the property in 1966, located about 200 km from Williams Lake. Falconbridge reported grab and trench sampling returning up to 384 g/t gold values.
Work completed by Transition has identified a larger, high-grade lode gold system traced along 1.5 km of strike length. The mineralisation is hosted within quartz/carbonate veining developed within and near the margins of a shear bounded, altered quartz-feldspar porphyry sill.