Hunter-Dickinson options Ontario property

The Hunter-Dickinson group has entered into an option agreement for a nickel/platinum-group-metal (PGM) prospect near Beardmore, Ont. The 167-claim Eva-Kitto property is held 50-50 by East West Resource (EWR-V) and Maple Minerals (YPA-V).

Hunter-Dickinson can earn a 60% interest in the property by spending $2 million on exploration over five years and paying $48,000 in option payments to East West and Maple. In addition, Hunter-Dickinson is responsible for all remaining option payments to the original vendor, and the property can be transferred to another public company controlled by the group.

The property features a 10-km-in-diameter, cone-shaped, ultramafic body. The western boundary of this body is adjacent to a major rift fault, which forms the eastern margin of the Nipigon Plate.

A nickel-copper-chromium geochemical anomaly is associated with the ultramafic body, and previous geophysical surveys highlighted several conductors.

East West holds 26 prospective PGM properties in northern Ontario. Recently, the Vancouver-based junior optioned six different properties along the Quetico fault to Valerie Gold Resources (VLG-V).

Valerie can earn an initial half-interest in five of the properties by spending $1.4 million on exploration and paying a total of $105,000 over three years. Under a separate agreement, Valerie can earn a half-interest in the McCoig property by pending $1 million over four years. It can earn a further 10% in each of the properties by completing a bankable feasibility study.

Meanwhile, East West has optioned the Rodgers property, 16 miles east of McCoig, to Redstar Resources (rst-v), which can earn an initial half-interest by spending $300,000 on exploration and paying $28,000 over four years.

In early April, East West announced that it had arranged $250,000 in flow-through financing with Teck (TEK-T). The financing consists of 1 million units priced at 25 each. In addition, the company has been negotiating with Teck in the hope that the major will participate in exploration of certain properties held in joint venture with Candian Golden Dragon Resources (CGG-V).