Hillsborough group to spend $6 million at Mt. Hundere

While Toronto-based Hillsborough is the only member of the consortium to publicly declare itself, Curragh Resources’ Chairman Clifford Frame is also involved.

After securing a Canamax Resources’ (TSE) 100% stake in the property for $10 million, the Hillsborough consortium will attempt to bring the property to the feasibility stage by sinking an adit and doing some underground drilling.

Before it agreed to sell its interest, Canamax had outlined 5.2 million tonnes grading about 18.5% combined lead-zinc and 1.752 oz silver per ton in drill-indicated reserves.

The full details of the program have yet to be determined, but Hillsborough Vice-president Kenneth Hawrelak estimates that $5-6 million will be spent on the property this year.

Under the agreement with Canamax, Hillsborough paid $2 million for its 20% stake in the 427-claim property. The Toronto-based company must also bear its proportionate share of a 10% net profits royalty held by Canamax after acquisition and development costs are recovered.

However, the joint venture group has the option to acquire Canamax’s royalty stake for $3.5 million at any time during the next five years.

“Through its Canadian mine development division, which helped to generate revenues of more than $34 million last year, Hillsborough is able to view from the inside many exploration properties,” Hawrelak said.

For example, the company is involved in exploration at its Mount Slocomb property in northern B.C. which has yielded assays of up to 10% zinc, 0.05% copper and 0.10 oz gold.

“We see a lot of opportunities like Mt. Hundere and we thought we may as well take advantage of this one,” Hawrelak told The Northern Miner.

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