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Gold/Mining/Energy : Hecla Mining(HL) -- Ignore unavailable to you. Want to Upgrade?

To: a. paisley who wrote (383)	9/30/1998 12:57:00 PM
From: rdww	Respond to of 629

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. (c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com

To: a. paisley who wrote (383)	10/1/1998 4:40:00 PM
From: rdww	Read Replies (2) \| Respond to of 629

The Hecla deal was a result of a number of trips around Cimarron's Sunset property. This is Nevada and the intersection of 2 of the more prolific trends in the area on the Sunset property doesn't seem to be lost on Hecla. There is visible ore grade gold on the surface here ( I'll repeat that - surface as opposed to dwon a mile or so)and Hecla is desperate to get some more reserves under it's belt. It's premature to guess at the #'s that wil be found here - but a MM or more is not out of the line of thinking of some of those who have toured the property. So - not a bad deal for CIU as Hecla looks after payments and work committs and gets up to 65%.