Hecla picks up property

Coeur d’Alene, Idaho-based Hecla Mining (HL-N) has formed a joint venture with Fairmile Gold (FLA-A) in order to explore the Highland project, 100 miles east of Reno in west-central Nevada.

Hecla can earn a 51% interest in the 6,900-acre property by spending US$3 million on exploration over five years. In return, Fairmile will receive staged option payments, totaling nearly US$100,000. Hecla can earn a further 19% by producing a bankable feasibility study, and another 10%, for a total of 80%, by funding Fairmile’s portion of development costs.

Upon production, Hecla would finance any costs in excess of the US$3-million earn-in.

Hecla and Fairmile plan to conduct mapping, sampling, geophysics and trenching in the fall, in preparation for drilling.

To date, Fairmile has outlined several low-sulphidation epithermal bonanza-style veins associated with felsic domes. Drilling by a previous owner tested only the top 200 ft. of the vein system, with the best hole intersecting a 19-ft. interval grading 0.13 oz. gold per ton.

Another highly prospective target, the Deb zone, has surface values of up to 0.085 oz. per ton, though it has never been trenched or drilled.

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