Hecla Mining has acquired an option on the Cape Spencer, N.B., gold property owned by Mispec Resources (ME). Under the terms of their agreement, Hecla has the right to earn a 51% interest in the claims by making cash payments and property expenditures of $1.89 million over a 5-year period.
Work by Mispec has identified four gold zones associated with two thrust faults. A drill program completed in early 1989 returned a 13-ft section assaying 0.117 oz gold per ton. Another hole cut 29.5 ft grading 0.1 oz gold. Both holes were completed to a depth of 125 ft.
Hecla will be the project operator. On the creation of a joint venture, Mispec will be credited with a deemed expenditure on the property of $1.47 million.
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