Intrepid Metals adds new Arizona projects to portfolio
Intrepid Metals Corp. [INTR-TSXV] reported entering into a definitive agreement with Bronco Creek Exploration (BCE), a wholly-owned subsidiary of EMX Royalty Corp, [EMX-TSX, NYSE American; 6E9-FSE] to acquire a 100% interest in the Mesa Well Copper Property located in south-central Arizona’s copper porphyry belt. The Mesa Well Property will add to Intrepid’s portfolio in Arizona, which also includes the drill ready Tombstone South silver/lead/zinc project.
“We are excited to be adding another drill ready exploration project to the mix,” says Ken Brophy, Intrepid CEO. “The Mesa Well project is within the Laramide Porphyry Belt, home to major copper operators such as BHP and Freeport. The property contains favourable reactive host rocks and previous drilling identified porphyry-style alteration and copper-molybdenum mineralization. We know the Bronco Creek Exploration team are strong project generators and are excited about the potential of a new porphyry discovery.”
The Mesa Well property is located approximately 100 km northeast of Tucson, Arizona, USA and is road accessible year-round. The troperty covers approximately 2,440 acres of state lands, which are easy to permit. The property is situated within the heart of the Laramide Copper (Cu) Porphyry Belt between BHP’s San Manual-Kalamazoo Deposit (50km to the west), Freeport McMoRan’s Safford Deposit (55km to the east) and Asarco’s Ray Deposit (85km to the northwest). The mines (present and past producing) and deposits referenced in the Laramide Copper Porphyry Belt provide geologic context for the Mesa Wells Property, however, is not necessarily indicative that the Property will host similar grades or tonnages of mineralization.
The Mesa Well Property is interpreted to contain a structurally dismembered, extended Laramide age Cu-Molybdenum (Mo) porphyry center that may have been rotated approximately 90 degrees from its original position. The roots of the system are exposed in the footwall of the Eagle Pass Fault, which suggest there is potential for a Cu-Mo rich portion of the system concealed beneath the upper plate of the Eagle Pass Fault. Alteration and mineralization observed at surface is consistent with this target concept. Previous drilling by Vale in 2009 on the Mesa Well Property, intersected alteration and mineralization that increased in intensity toward the northwest. Intrepid plans to increase confidence in targeting, by completing additional mapping and geophysical surveys on the property prior to year-end, followed by a drill program early in 2023.
The aggregate purchase price for 100% interest in the property is a total of $350,000 in cash, 600,000 common shares of Intrepid, and $2,000,000 in work commitments payable in stages by Intrepid over a five-year period. The company also agreed to certain milestones payments as follows: $200,000 on publication of a Preliminary Economic Assessment on the Property, $500,000 on publication of a Pre-Feasibility Study on the Property, and $1,000,000 on publication of a Feasibility Study on the Property. The acquisition is structured as an option and Intrepid must complete the cash payments, share issuances and working commitments in full to exercise the option. The acquisition is subject to customary closing conditions including regulatory approvals. BCE will retain a 2% net smelter royalty (NSR) on the property, subject to certain annual advance royalty payments. All dollar values are in United States dollars.
Intrepid has also recently completed a purchase and sale agreement with Excelsior Mining Corp. [MIN-TSX; EXMGF-OTCQX; 3XS-FSE] in relation to its non-core exploration property located approximately 40km south of its material properties in Cochise County, Arizona. The Excelsior property is located 40km from Intrepid’s Tombstone South Property and includes 255 unpatented federal mining claims and 9 Arizona State Prospecting Permits.
Terms of the purchase and sale agreement include $30,000 and 250,000 common shares of Intrepid upon closing, promissory note for 250,000 common shares issuable on the 12-month closing anniversary, and promissory note for $40,000 and 250,000 common shares issuable on the 18-month closing anniversary. All dollar values are in United States dollars.
Intrepid also wishes to announce that it will not move forward with a definitive agreement to acquire the Klondike property.