CMC Metals farms out 80% of Terra Nova to Highbank, Newfoundland
CMC Metals Ltd. [CMB-TSXV; CMCXF-OTC; ZM5-FSE] has signed an option assignment agreement with Highbank Resources Ltd. [HBK-TSXV; V7O-FSE] on the Terra Nova property in Newfoundland.
The Terra Nova property consists of 71 claims (6 licences) located 30 km northwest of Port Blandford in central Newfoundland. Access is from the town of Terra Nova via 12 km of transmission line road built from the Lower Churchill Falls power development project. Highbank has an option to earn an 80% ownership in the property.
An alteration area of 12 km2 has been identified, which to date has been subjected to limited exploration. The project has the potential to host mesothermal gold-polymetallic deposits. The property lies within the Gander Zone, which is an area of significant exploration interest as a result of Newfound Gold Corp.’s Queensway gold project.
Highlights of the property include the following: The property currently comprises five mineralized showings: the Copper Vein; Nancy’s Gold Vein; New Alteration Zone; the Silver Pit; and Galena Vein showing. A grab sample collect at the Copper Vein showing produced 354 ppb gold, 43.8 g/t silver, 2.33% copper and greater than 1,000 g/t tungsten.
A grab sample at Nancy’s Gold Vein showing assayed 6,812 ppb gold, 159.6 g/t silver, 1,562 g/t copper and 1,000 g/t tungsten. Samples collected from the Galena showing have reported assay values of 953 ppb gold, 59.8 g/t silver, 7.2% lead, and greater than 1,000 g/t tungsten.
In March 2022 CMC Metals Ltd., completed a ground magnetometer survey (approx. 35-line km) with the services of McKeown Exploration Ltd., St. John’s Newfoundland. These surveys have helped to provide indication of possible areas of mineralization associated with large-and local-scale structures (faults, dykes, shear zones, etc.), variations in the near surface geology as well at as depth, and to identify demagnetized zones which are an indicator of areas that have been subjected to hydrothermal activity.
John Bossio, Chairman, noted, “This joint venture with Highbank provides CMC and our prospector partners with the best opportunity to undertake further exploration on the Terra Nova property and thereby add value to our shareholders.”
Terms of the assignment option include $10,000 within 30 days of signing the sgreement; $20,000 by October 22, 2022 (assuming the second anniversary payment of CMC to the vendors; $30,000 by October 22, 2023 (assuming the third anniversary payment of CMC to the vendors. Starting at the fifth year anniversary of the CMC agreement (October 22, 2025) assuming an advance royalty payment of $5,000 per year.
A total of 500,000 common shares of Highbank Resources Ltd., issued to CMC upon TSX Venture Exchange approval and subject to a of four months + one day hold period; and 500,000 common shares of Highbank issued to CMC within six months of Exchange approval; and 500,000 common shares of Highbank issued to CMC within 12 months of Exchange approval. Also, a 2% Net Smelter Returns royalty from any and all conventional mining on, in or under the property.
CMC Metals Ltd.’s polymetallic silver-lead-zinc CRD prospects include the Silver Hart deposit and Blue Heaven claims and Rancheria South, Amy and Silverknife claims. The company’s polymetallic projects with potential for copper-silver-gold and other metals include Logjam (Yukon), Bridal Veil, Terra Nova and Rodney Pond (central Newfoundland).