Vancouver-based explorer Hi-View Resources (CSE:HVW) is adding another project to its portfolio close on the heels of an earlier transaction.
The junior explorer has now inked a definitive agreement with Coast Copper (TSX-V:COCO) to buy the Borealis Project immediately south of Hi-View’s existing landholding in the Toodoggone District of north-central British Columbia.
Just a day earlier, Hi-View revealed it had signed an option agreement to buy multiple new projects, covering 1,912.46 hectares, in the Toodoggone District.
The strategy appears to have resonated with shareholders, with the latest deal seeing Hi-View close up 10% at C$0.28 ($0.31) on Thursday (28 August).
Under the deal, Hi-View will pay Coast Copper C$500,000 in cash and issue 3.5 million shares.
Coast Copper will also receive a 3% net smelter return royalty, of which Hi-View retains the right to buy-back 1% for C$2.5 million and an additional 1% for C$5 million.
Hi-View says the newly acquired ground, which covers over 9,100 hectares, captures three historically documented occurrences – Firesteel, Bren, and Cas 3-9 – around 8-10km northwest of Centerra Gold’s (TSX:CG) Kemess Project.
CEO Nick Horsley says Hi-View has doubled its land package and strategically positioned itself adjacent to Centerra’s Kemess complex where porphyries have occurred in clusters.
Kemess hosts a past-producing mine with existing mothballed infrastructure including a 50,000-tonne-per-day processing plant, camp, water treatment plant, airstrip and tailings facility.
Horsley says the 1992 Placer Dome program at the Cas area of the Borealis Project revealed a “high-potential target”, through induced polarisation chargeability highs, magnetic anomalies outlining pyritic zones, and sulphide-bearing alteration along a monzonite margin.
Soils samples returned up to 138 parts per million copper and 970 parts per billion (ppb) gold, while rocks assayed up to 2.3% copper, 695ppb gold, and 106 grams per tonne silver.
Horsley adds there is also evidence of a molybdenum anomaly indicating transportation from a potential nearby porphyry source.
Within the Bren area, drilling returned grades of up to 349.7g/t silver and 0.68g/t gold, while surface work delivered grades of up to 11,135.5g/t silver.
Meanwhile, rock chips and trenching at the Firesteel prospect included zinc and lead, with grades of up to 11.5% zinc and 0.3% lead, alongside grades of up to 0.5% copper and 106g/t silver.
“This acquisition I believe unlocks significant shareholder value allowing us to acquire 100% interest without any work commitments in an exciting target,” he says.
Prospecting in the Toodoggone Gold and Copper District began in the early 1900s, with placer gold discoveries along the Toodoggone River by 1925, followed by intensive exploration in the 1960s driven by visible mineralised ridges.
Write to Angela East at Mining.com.au
Images: Hi-View Resources
