QC Copper and Gold Inc. (TSX-V:QCCU, OTCQB:QCCUF) has announced the acquisition of the Opemiska West Project, comprising 36 mineral claims over 1560 hectares immediately adjacent to and contiguous with the western border of the company’s Opemiska project in the Chibougamau District of Quebec.
The company said the acquisition is a critical land package for the development of Opemiska, as the Opemiska West claims host the historic tailings from the Opemiska Mine from its operations under Falconbridge from 1953 to 1991.
It noted that the tailings also potentially carry residual mineralization when Opemiska was mined as a high-grade underground operation with a cut-off grade of 1.5% copper. The company also considered these claims as potentially being an ideal location for future tailings facilities, it added.
READ: QC Copper and Gold starts final leg of drilling as it updates on mineral resource estimate for Opemiska deposit
"The acquisition of the Opemiska West claims is strategically important as they host potential additional feed upon evaluating the metal content from the historic tailings,” QC Copper CEO Stephen Stewart said in a statement. "More importantly, this gives the company significant land immediately adjacent to Opemiska's conception open pit, which will be further defined in QC Copper's forthcoming updated Mineral Resource Estimate.”
Known mineralization on Opemiska West claims
QC Copper said mineralization on the Opemiska West claims is similar to the Opemiska style copper vein typology, particularly given its proximity to the Springer and Perry mines. The mineralized veins of the Springer mine are restricted to fracture networks contained in the ophitic parts of the gabbroic Venture sill, and the veins are known to extend westward onto the Opemiska West claims.
Terms of the acquisition
Upon final exchange approval and closing of the acquisition, in exchange for 100% ownership of the Opemiska West claims, QC Copper said it will issue 500,000 of its common shares to the vendor, Windfall Geotek.
The Opemiska West claims are subject to an existing 2% net smelter royalty, of which 1% can be repurchased for $1 million. Additionally, QC Copper said has entered into a $125,000 services agreement with the vendor to perform data analysis and to generate artificial intelligence drill targets on the Opemiska. This agreement is subject to TSXV approval.
QC Copper is focused on acquiring and developing copper projects in the Chibougamau region that share synergies with its past-producing Opemiska Copper Mine Complex. Through acquisitions, it has been able to expand its Opemiska property to over 13,000 hectares in the heart of Quebec with significant infrastructure, including direct rail and road access, already in place.
Contact the author at stephen.gunnion@proactiveinvestors.com