Business
Finlay Minerals Ltd. Purchases Silver Hope Project, central British Columbia
Finlay Minerals Ltd. Purchases Silver Hope Project, central British Columbia.
About this update from Finlay Minerals Ltd.
[{"type":"text","content":"\n\n\n\n\nVANCOUVER, March 16 /CNW/ - The Board of Directors of Finlay Minerals\nLtd. (\"The Company\") is pleased to announce the acquisition of the Silver Hope\nProperty located in central British Columbia.\nThe Silver Hope Property is contiguous with the southern boundary of the\npast producing Equity Silver Mines Property and covers prospective\nstratigraphy for discovery of stratabound copper-silver-gold mineralization.\nPrior workers conducted several drilling programs along a 2 kilometer strike\nlength of favourable geology that partially outlined three near-surface bulk\ntonnage copper-silver zones with deeper higher grade copper-silver zones. The\nzones, named Hope, Superstition and Gaul by prior workers, occur along\nfavourable structural horizons in pyroclastic volcanic rock notable by\nfracturing and discrete breccias that have been tested by approximately\n40 holes. No resources were calculated although deeper drill holes intersected\nreported grades in the Hope Zone of 4.1% copper and 637g/t silver over\n2.4 meters (DDH 04SH-06), and 0.91% copper and 1030g/t silver over 3.0 meters\n(DDH X86CH-262).\nA re-interpretation of this style of mineralization along a 4 kilometer\nlength that includes two deposits that saw production by Equity Silver Mines\n(33,800,000 tonnes (at) 0.4% copper, 64.7g/t silver, and 0.46g/t gold from\nopen pit and underground mining) and three zones on the Silver Hope Property\nsuggests opportunity for re-classification of the deposits as volcanogenic\nwith a hydrothermal overprint.\nThe Company acquired the Silver Hope Property with the objective of\ntesting for volcanogenic style high-grade feeder mineralization and is\ninitially planning a deep penetrating geophysical survey in the spring of\n2006.\nSubject to regulatory approval, the Company will earn a 100% interest in\nthe 37 mineral claim (2,775 hectares) Silver Hope Property by paying Sci-Tek\nResources Ltd. (\"Sci-Tek\"), a private company, 2,000,000 Finlay shares, at a\ndeemed value of $160,000. Sci-Tek will hold a royalty equal to one and \none-half percent (1.5%) of Net Smelter Returns (the \"Royalty\"). Prior to a\nproduction decision being made in respect of the Silver Hope Property, the\nCompany may, at its sole discretion, purchase half of the Royalty (i.e. 0.75%)\nfrom the Vendor by paying one million dollars ($1,000,000) to th...