Recently listed Challenger Minerals (VSE) has been granted the right to earn a 100% interest in the Marshall Lake copper-zinc property 160 miles northeast of Thunder Bay, Ont.
Aur Resources (TSE) will provide consulting services to Challenger. Aur will also have the right to become operator of the project and earn a 50% stake in Challenger’s interest by financing the capital expenditures required to bring the deposit into production.
The Marshall Lake property, consisting of 90 leased mineral claims, hosts several high-grade copper-zinc occurrences. Previous work outlined preliminary reserves of 2.2 million tons grading 4.2% zinc, 1.2% copper and 2.45 oz. silver in the main zone.
Challenger can earn full ownership by completing 40,000 ft. of drilling over a 4-year period. The company says it will undertake a detailed compilation of available data before beginning field work.
Under the option agreement, if Challenger earns 100% of the property, Giant Gripp will retain a 5% net smelter return royalty. Challenger has the right to reduce the royalty to 2.5% by paying Giant Gripp $1.75 million, and the first right of refusal to purchase the rest of the royalty.
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