Fireweed doubles Yukon zinc land position

Fireweed Zinc Ltd. March 27 reported that it has cut deals with Constantine Metal Resources Ltd. and Carlin Gold Corp. and Golden Ridge Resources Ltd. that significantly expands its land position in the Macmillan Pass Zinc District of eastern Yukon.

Fireweed Zinc Ltd., a new exploration company, is focused on advancing the Jason and Tom zinc-lead-silver deposits at its Macmillan Pass property.

Together, Jason and Tom host 11.21 million metric tons of indicated resource averaging 6.6 percent zinc, 2.5 percent lead and 21.33 grams per metric ton silver; and 39.5 million metric tons of inferred resource averaging 5.8 percent zinc, 3.1 percent lead and 38.2 g/t silver, according to a resource calculated in January.

The more than 20,000-hectare (49,400 acres) Macmillan Pass boasts a camp, airstrip and access from the North Canol Road.

In a deal cut with Constantine and Carlin Gold, Fireweed has the option to add 11,700 hectares (28,900 acres) of prospective land to its holdings in the district.

To acquire three groups of claims to the north and northeast of Macmillan Pass – MC, MP and Jerry – Fireweed has agreed to pay C$500,000 in cash, and issue of 300,000 Fireweed shares, to be paid over three years.

Constantine and Carlin will retain a 0.5 percent net smelter return royalty on any base metals and a 2 percent NSR on any precious metals produced from the MC, MP and Jerry claims. Fireweed has a right of first refusal on the sale of any NSR royalty from these claims by Constantine and Carlin.

The claims were staked in 2011 under a joint venture between Constantine and Carlin, and all option and royalty payments will be split equally between the two companies.

In a separate agreement with Golden Ridge Resources, Fireweed has the option to acquire 12,700 hectares (31,400 acres) of claims to the west of MacMillan Pass.

To acquire these claim blocks – NS and BR – Fireweed has agreed to pay Golden Ridge C$500,000 and issue 450,000 Fireweed shares over three years.

Although not part of the option, Fireweed will pay Golden Ridge an additional C$750,000 in cash or the equivalent in Fireweed shares, upon receiving a resource calculation of at least 2 million metric tons of indicated resource on the BR and NS claims.

Golden Ridge will retain a 0.5 percent net smelter return royalty on any base metals and a 2 percent NSR on any precious metals produced from the BR and NS claims. Fireweed has a right of first refusal on the sale of any NSR royalty from these claims.

Together, these land packages more than double Fireweed Zinc's land position in the MacMillan Pass District.

"With these agreements in place we have expanded the target area for additional zinc discoveries around Macmillan Pass," said Fireweed CEO Brandon Macdonald. "This is another step toward the building of a district-scale zinc mining camp in the Yukon which starts with plans for expanding the large Tom and Jason deposits with a big drill program this summer and searching for new discoveries nearby."

–SHANE LASLEY