here's some Hecla exploration news - they have looked at this property a few times - gone away to se others and finally came back and signed a deal. Here's hoping that it works out for both parties.
Cimarron Minerals Ltd -
$3.5m (U.S.) agreement for option on Sunset property
Cimarron Minerals Ltd
CIU
Shares issued 6,016,108
1998-09-28 close $0.18
Tuesday Sep 29 1998
Ms. Dianne Szigety reports
A letter agreement between the company's wholly owned U.S. subsidiary, Cactus
West Explorations and Hecla Mining Company has been executed for exploration
and development of Cimarron's Sunset property. The Sunset property is west of
Mina, Mineral County, Nevada. The letter agreement contemplates 45 days for
Hecla's due diligence investigation and completion by Dec. 31, 1998 of a
definitive option agreement which will cover all of the 86 unpatented claims which
comprise the Sunset property group. This letter agreement will automatically
terminate if the definitive option agreement is not executed by Dec. 31, 1998.
Hecla Mining Company, based out of Coeur d'Alene, Idaho, is a 107 year old
exploration and development company with properties and plants in the United
States and Mexico.
During the option period Hecla will pay the underlying option payments, BLM
(Bureau of Land Management) maintenance fees and county filing fees. Hecla will
also be required to complete $3,500,000 (U.S.) of exploration and development
over four years, including a minimum of $150,000 (U.S.) in year one, to earn 65
per cent. Upon completing the $3,500,000 (U.S.) work commitment, Hecla will
have earned a 65 per cent working interest in the Sunset property. Hecla may then
earn an additional 15 per cent by financing Cimarron through to production.
Hecla will make the following cash payments to Cimarron: $10,000 (U.S.) on
signing of the agreement (paid; $10,000 (U.S.) on Jan. 15, 1999; $10,000 (U.S.)
on first anniversary of definitive agreement; and, $20,000 (U.S.) on second
anniversary and each following anniversary, during the option period.
The Sunset property claims cover precious metal mineralization at a point where
two regional structures, the Walker Lane and Mono Lineaments, intersect. The
Sunset property is underlain by a late Tertiary age down dropped block of mafic
to intermediate volcanics which have been intruded by quartz eye rhyolite stocks
and flow domes. Two sets of faults hosts gold mineralization in shear and
stockwork zones in the Maryann basin. There is an east-west fault and shear zone
in the Sunset-Kernick area. Alteration is characterized by an early hypogene
hematite event that stains the matrix of tuff breccia and flow breccia volcanics.
This was followed by quartz-alunite-argillite, iron sulphides (limonite) and green
clay alteration all of which are closely associated with gold mineralization.
The company has also abandoned the CUMO molybdenum and the Laccolith
base metal projects.
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