By purchasing the IKS 1 and 2 claims, Prime Resources (TSE) will gain an undivided 100% interest in the rich Eskay Creek polymetallic orebody in northeastern British Columbia.
Prime, which has a 50% interest in the IKS claims, will pay Adrian Resources (TSE) $8 million for the remaining 50%.
The IKS claims cover a staking gap within Prime’s 100%-owned Eskay Creek claims. The gap contains an estimated 210,000 oz. gold-equivalent of the Eskay Creek 21B deposit reserve (1.19 million tons grading 1.91 oz. gold, 85.5 oz. silver, 5.64% zinc, 2.89% lead and 0.77% copper).
The IKS-1 claim also surrounds much of the reserves at Eskay Creek, and Prime tested two targets on the claim during the summer by drilling six holes. The program did not return any significant results, and the company says further work is not warranted at this time.
Prime, which is 51% owned by Homestake Mining (NYSE), expects to have Eskay Creek in production this winter, with yearly output projected at 210,000 oz. gold and 9.4 million oz. silver.
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