Cross Lake options zinc-silver property

Vancouver-based Cross Lake Minerals (CRN-V) has acquired an option on a zinc-silver property, 50 km northeast of Chase, B.C.

Cross Lake can earn a 100% interest in the Ladybug property by paying $90,000 and spending $375,000 on exploration over four years. The junior must make a $5,000 payment once the deal is approved and, within the following year, pay another $5,000 and spend $30,000 on exploration.

The vendors will also receive a 2% net smelter return royalty, which Cross Lake can buy back at the rate of $1 million for each percentage of the royalty.

The Ladybug property contains showings of skarn mineralization with sphalerite, galena, magnetite and chalcopyrite occurring as disseminated, stringer and massive sulphides. The weighted average of channel samples from the most exposed outcrop is 1.9% zinc, 78 grams silver per tonne, 0.19% copper and 1.12% lead over a width of 9 metres.

Several other showings occur close to, and along strike from, this outcrop. The company intends to complete an induced-polarization survey and soil sampling in the spring.

In other news, Echo Bay Mines (ECO-T) is expected to spend $50,000 on Cross Lake’s Currie-Bowman copper-gold property near Timmins, Ont., thereby enabling 50%-owner Falconbridge (FL-T) to earn an additional 10% interest in the property.

Under an agreement between the two majors, Echo Bay will have the right to earn all of Falconbridge’s 60% interest in the property, subject to certain back-in and exploration rights on base metals, for $500,000.