The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
Private company to invest up to C$15M in gold-silver project North of 60 Mining News – April 23, 2021
Strategic Metals has discovered strong gold mineralization above Granite Creek, a stream in Yukon's Keno Hill district that continues to produce placer gold eroding off Mount Hinton.
Coarse visible gold in a quartz sample collected during Strategic Metals' 2020 surface sampling at Mount Hinton.
Strategic Metals Ltd. April 22 announced that it has granted Upper Canada Mining Inc. the right to earn up to a 70% interest in the Mount Hinton gold project in the Yukon.
Upper Canada Mining is a privately held, Calgary, Alberta-based minerals exploration and mining company primarily focused on gold and silver.
Mount Hinton is a good fit for such a company.
Found along the southeast side of Alexco Resource Corp.'s Keno Hill Silver Mine property and about 22 miles (35 kilometers) southeast of Victoria Gold Corp.'s Eagle Gold Mine, Mount Hinton is an early staged gold and silver exploration project where 2019 surface sampling collected rocks with up to 2,340 grams per metric ton (75.23 ounces per metric ton) gold and 597 g/t (19.2 oz/t) silver.
Following two phases of sampling, mapping, and prospecting during 2019, Strategic carried out a 6,978-meter maiden drill program during 2020 that targeted three zones with 32 holes.
Highlights from the 2020 Mount Hinton drilling include:
• 1.7 meters averaging 2.18 g/t gold and 298 g/t silver in hole MH-20-002.
• 9.75 meters averaging 3.86 g/t gold in hole MH-20-018.
• 7.25 meters averaging 6.74 g/t gold and 186 g/t silver in hole MH-20-019.
• 12.14 meters averaging 4.78 g/t gold in hole MH-20-022.
• 1.47 meters averaging 9.57 g/t gold in hole MH-20-023.
• 1.56 meters averaging 17 g/t gold in hole MH-20-032.
Upper Canada Mining's option to earn a 70% interest in Mount Hinton is divided into two stages.
In the first stage, the private mining company can earn an initial 50% interest by investing C$10 million in the gold-silver project by the end of 2024, with a minimum of C$2 million by the end of 2022.
Strategic will be the operator of the programs at Mount Hinton during the first option and will receive a 5% management fee on all expenditures on the property during this time.
Subject to the exercise of the first option, Upper Canada Mining can earn an additional 20% interest by paying Strategic C$2 million and incurring additional exploration expenditures of C$5 million by the end of 2026.
Half of the payment to Strategic could be made through the issuance of shares if Upper Canada Mining goes public and those shares are listed on a recognized exchange.
Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.
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