Vizsla Silver Corp. [VZLA-TSXV; VIZSF-OTCQB] said Monday March 15 it has struck an option deal with Cariboo Rose Resources Ltd. [CRB-TSXV], part of the Eastfield group of companies, to earn a 60% stake in the Carruthers Pass property in British Columbia.
Vizsla can exercise the option by spending $3 million on exploration, making $400,000 worth of cash payments and issuing $250,000 worth of shares over a five-year term. Cariboo’s 100% interest in the project is subject to a 2.5% net smelter royalty held by Phelps Dodge Canada (now Freeport-McMoran Inc. [FCX-NYSE]). The royalty is reducible to 1.0% for $1.5 million.
Vizla said tis board of directors is currently evaluating a plant to spin out its British Columbia copper assets, including the 100%-owned Blueberry Project and the option on the Carruthers Pass property. After the spinout, Vizla Silver shareholders would end up owning shares of both Vizsla Silver, and the spin out entity, Vizsla Copper. Management of the company estimates that Vizsla Silver shareholders will receive on Vizsla Copper share for every three common shares of Vizsla Silver.
“The addition of the Carruthers Pass project to our copper subsidiary brings significant value to Vizsla Silver’s shareholders by providing them with exposure to an excellent copper asset in the most exciting time for the copper market,” said Vizsla Silver CEO Michael Konnert.
Carruthers Pass is a shale-hosted massive sulphide project (base and precious metals), discovered in 1997 by Phelps Dodge Corp. of Canada. It consists of eight contiguous mineral claims covering 3,250 hectares, located approximately 200 km northeast of Smithers.
The Kemess Mine road passes 25 km north and east of the claims while industrial logging roads extend from Takla Lake northward to within 35 km of the property.
In 2011 drilling into a mineralized slab returned a 3.2-metre intercept, grading 6.2% copper, 6.8% zinc, 2.37 g/t gold and 192.0 g/t silver. The intercept was obtained before the drill bit passed through massive sulphide and into unconsolidated material. Although the in-situ source of the mineralized slab has not been located it is almost certainly local, Cariboo Rose has said.
Vizsla shares advanced on the news, rising 3.0% or $0.04 to $1.39. The shares are currently trading in a 52-week range of $2.93 and 24 cents. Cariboo Rose shares jumped 6.7% or $0.005 to $0.08 and trade in a 52-week range of $0.095 and $0.035.