Partners Celtic Minerals (CME-A) and Jilbey Exploration (JLB-M) have lured Rio Algom (ROM-T) to their equally owned Hungry Hill polymetallic property in central Newfoundland.
Rio can earn a 51% interest in the property by paying $350,000 in cash and spending $4 million on exploration over the next four years. Of these amounts, $90,000 in cash and $400,000 in expenditures are required within one year of the signing of a definitive agreement.
Rio can acquire an additional 9% for $650,000 in cash and $1.5 million in exploration expenditures.
The Hungry Hill property is considered prospective for volcanogenic massive sulphide deposits. Drilling has returned up to 4 metres of 4.99% zinc plus 16.44 grams silver and 0.85 gram gold per tonne. As well, one hole intersected sulphide-bearing clasts with high grades of zinc, copper and lead, as well as gold and silver.
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