Santa Fe Metals Signs LOI for Iron Range: SEDEX and IOCG Potential
18 Marzo 2014 - 6:30AM
Marketwired
Santa Fe Metals Signs LOI for Iron Range: SEDEX and IOCG Potential
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Mar 18, 2014) -
Santa Fe Metals Corp. (TSX-VENTURE:SFM) ("SFM" or the "Company")
announces it has signed a binding Letter of Intent (LOI) with Eagle
Plains Resources Ltd. ("EPL") outlining the terms for an earn-In
option (the "Option") to acquire a 60% interest in EPL's Iron Range
Project ("Iron Range"). Iron Range hosts the same stratigraphic
rock assemblage as the historic Sullivan Mine, one of the largest
sedimentary exhalative (SEDEX) silver-lead-zinc deposits in the
world, located approximately 60km north east of Iron Range.
With abundant exploration success and many defined targets, SFM
and EPL plan to focus on Sullivan-time stratigraphy and the
regional-scale fault complex at Iron Range for two significant
target types on the property;
- Sullivan-style SEDEX Ag-Pb-Zn mineralization - The Sullivan
Mine produced almost 300 million ounces of silver, 17.5 billion
pounds of zinc and 18.5 billion pounds of lead, over its 100-year
lifetime collectively worth over $45-billion at current metal
prices (The Company cautions that past results or discoveries
on proximate land are not necessarily indicative of results that
may be achieved on the Iron Range property), and
- Iron-oxide-Cu-Au (IOCG) mineralization - Iron Range also hosts
bonanza-grade gold (2008 drilling intersected 51.52 g/t Au over 7m)
in proximity to felsic granitoid intrusives. This type of contact
with a major iron oxide fault zone (such as the Iron Range fault)
are known to generate significant copper-gold silver deposits, such
as the Candelaria deposit of Chile.
The 630 km2 Iron Range project, located near Creston, BC, is
owned 100% by EPL subject to a 1% NSR on a portion of the claim
group. A complete description of past drill and other exploration
results can be viewed at
http://www.eagleplains.com/projects/bc/ironrange/.
The Option comprises a commitment by SFM over a 5-year period to
earn a 60% interest by incurring exploration expenditures on the
Property, issuing SFM shares and making cash payments to EPL,
conditional on regulatory approval including without limitation
that of the TSX Venture Exchange (the "Exchange"):
- On Exchange approval: issuing 1 million SFM shares
- On or before December 31st, 2014: incurring $150K in
exploration expenditures, and issuing an additional 1 million SFM
shares and an additional $25K in cash;
- On or before December 31st, 2015: incurring an additional $350K
in exploration expenditures, and issuing an additional 1 million
SFM shares and an additional $50K in cash;
- On or before December 31st, 2016: incurring an additional $1.5
million in exploration expenditures, and issuing an additional 1
million SFM shares and an additional $75K in cash;
- On or before December 31st, 2017: incurring an additional $3.0
million in exploration expenditures, and issuing an additional 1
million SFM shares and an additional $150K in cash; and,
- On or before December 31st, 2018: incurring an additional $5.0
million in exploration expenditures, and issuing an additional 1
million SFM shares and an additional $200K in cash.
SFM and EPL agree to execute a definitive agreement for the
Property on or before April 17, 2014. When all of the conditions of
the definitive agreement have been met and SFM has exercised the
Option, a 60/40 joint venture ("JV") will be formed to advance the
Property. EPL will be the operator during the term of the
Option.
Update on Sully Project
SFM plans to re-commence drilling shortly at its Sully Project
located near Fort Steele and 30 km east of the Sullivan Mine at
Kimberley, BC. Sully hosts twin, large-scale, parallel geophysical
targets that do not outcrop on surface. The 'blind' targets are
well defined by detailed gravity surveys completed over much of the
property. Both targets are made more compelling by coincident
parallel magnetic anomalies. Drilling to date has tested neither of
these targets.
Management is excited about the Iron Range project's potential
to host Sullivan type massive sulphides or IOCG deposits and is
anxious to be advancing exploration at both the Iron Range and
Sully. Scott Broughton, President and CEO commented; "The agreement
with EPL for Iron Range demonstrably expands on the project and
discovery potential for SFM in this prolific base metal region of
the world."
Technical contents of the Iron Range Project disclosure in
this news release have been reviewed and approved by Charles
Downie, P.Geo., a qualified person as defined by National
Instrument 43-101. Technical contents of the Sully Project
disclosure in this news release have been reviewed and approved by
Paul Ransom, P.Geo., a qualified person as defined by National
Instrument 43-101.
The TSX Venture Exchange has in no way passed upon the
merits of the proposed transaction and has neither approved nor
disapproved the contents of this news release.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this news release.
Santa Fe Metals Corp.Scott E. Broughton, P.Eng.President and
CEO604.684.2900www.santafemetals.com
Santa Fe Metals Corporation (TSXV:SFM)
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