Montreal junior Murgor Resources (MUG-V) has signed a set of agreements with HudBay Minerals (HBM-T) to earn an interest in four massive-sulphide prospects in the Flin Flon and Snow Lake areas in Manitoba, and also plans to acquire two land packages from HudBay.
The agreements, signed separately for each property, oblige Murgor to make $1.2 million in option payments, either in cash or shares, over four years, and to spend $13 million on exploration. They cover the Fon property in Saskatchewan, about 40 km west of Flin Flon; the Hudvam deposit in Manitoba, about 47 km northeast of Flin Flon; the Wim deposit north of Snow Lake; and the Tyr property, northwest of Flin Flon on the Saskatchewan side of the provincial border.
Fon has a resource of 4.6 million tonnes grading 4.6% zinc in two deposits, Fon and Abbott Lake. Tyr, also in Saskatchewan but closer to Flin Flon, has 109,000 tonnes grading 1.2% zinc, 2.8% copper, 7.2 grams silver and 5 grams gold per tonne. Both the estimates are historical ones that do not comply with National Instrument 43-101.
Hudvam, northeast of Flin Flon, has a measured and indicated resource of 467,000 tonnes with 1.95% zinc, 1.59% copper 13 grams silver and 3.6 grams gold per tonne, and an inferred resource of 170,000 tonnes at 1.76% zinc, 0.52% copper, 11.7 grams silver and 4 grams gold per tonne. An earlier operator drove a 312-metre ramp on the project in 1988, which was used for underground drilling.
At Wim, Hudson Bay Mining and Smelting, HudBay’s predecessor, outlined an inferred resource of 1.4 million tonnes grading 2.59% copper, 0.4% zinc, 8.2 grams silver and 1.7 grams gold per tonne.
Murgor can earn an outright interest in the properties, subject to either a 2% net smelter return held by HudBay or a 65% back-in right.
The two companies have also signed a letter of intent allowing Murgor to earn a 50% interest in two large land packages in northern Manitoba, the 805-sq.-km Flin-D property near Flin Flon and the 1,056-sq.-km Snow-H property near Snow Lake.
Be the first to comment on "Murgor to take on HudBay properties"