Fireweed Zinc Ltd (CVE:FWZ) has consolidated its position in the Macmillan Pass district in Yukon — as it has now closed its previously announced acquisition of the Nidd property.
Nidd lies on the western extension of the group's Macmillan Pass zinc project and the firm has now closed the sale and purchase agreement with Teck Metals Ltd, a subsidiary of Teck Resources Ltd, for the deal.
Under the terms, Fireweed acquired a 100% interest in the 372 claims for 1.5 million shares subject to a one-year lock-up for Teck.
Teck also retains a 1% net smelter return (NSR) royalty and has a right of first offer to purchase from Fireweed, future production concentrates from the Nidd property.
READ: Fireweed Zinc announces results of first drill hole at project in Yukon
Nidd covers 7,393 hectares in 372 mineral claims which expands Fireweed's claim holdings in the district to 544 sq km.
"Adding the Nidd property to our holdings is a major milestone and, for the first time in history, the Macmillan Pass zinc district is consolidated under one owner, Fireweed," said Fireweed's chief executive Brandon Macdonald.
"After the Tom and Jason properties, Nidd is an important piece of this district not just because of the established mineralization, but because of the property's prospectivity for the discovery of new mineralized bodies.
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 the acquisition, Fireweed now owns all four known large zinc mineralized systems in the region.
Long association with Nidd
Nidd 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.
Shares in Fireweed were unchanged at $0.90.
Contact Giles Gwinnett: giles@proactiveinvestors.com