Fireweed Zinc Ltd (CVE:FWZ) has expanded its position in the Macmillan Pass district in Yukon by acquiring another property.
The explorer has inked a purchase agreement with Teck Metals Ltd, a subsidiary of Teck Resources, to acquire the Nidd property on the western extension of its Macmillan Pass project.
READ: Fireweed Zinc shares shoot up following "exceptional' first drill assays from Macmillan Pass
"Adding the Nidd property to our Macmillan Pass Project is a major milestone in locking up the most prospective parts of the Macmillan Pass Zinc District," said Fireweed chief executive Brandon Macdonald.
"After the Tom and Jason properties, Nidd is an important piece of the puzzle in this district not just because of the established mineralization, but because of the property's prospectivity for the discovery of new mineralized bodies.
"We are thrilled to have made this transaction and welcome Teck as a major shareholder."
The Nidd property hosts established zinc mineralization in the Boundary Zone.
Here, the previous drilling included intersections of 224 meters of 2.5% zinc and 0.3% lead, including 4.5 meters of 16.4% zinc demonstrating the potential for both bulk tonnage open pit and high-grade underground mineralization.
With this acquisition of Nidd, Fireweed now owns all four known large zinc mineralized systems in the region.
Nidd covers 7,393 hectares in 372 mineral claims which expands Fireweed's claim holdings in the district to 544 sq km.
It was originally staked in 1976 by Cominco Ltd (now Teck).
The total historic expenditure on the property exceeds $5 million and includes 35 core drill holes, trenching, soil geochemical surveys and geophysical surveys.
Known mineralization is spread over an area two kilometres long and 200 to 800 metres wide with drilled mineralization in a central area 300 metres long and true thicknesses of up to 285 metres of over 2% zinc.
The zone remains open to depth and along trend for further exploration
Other exploration targets at Nidd include the Eleven Anomaly area where a large 400 meter by 500-meter zinc soil anomaly was tested by two initial drill holes, one of which encountered significant pyrite mineralization.
As consideration, Fireweed is paying 1.5 million Fireweed shares, with a one year lock up during which Teck cannot sell them
Teck will retain a 1% Net Smelter Return (NSR) royalty on future production from the Nidd property.
Teck to have a right of the first offer to purchase from Fireweed, future production concentrates from the Nidd property.
Shares added 6.25% to $0.85.
Reporting by Giles Gwinnett
giles@proactiveinvestors.com