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Kapuskasing Finalizes Agreement to Acquire Previous Producing Daniels Harbour ''Mississippi Valley Type'' Zinc Property in Newfoundland and Plans Geophysical Program
VANCOUVER, BC / ACCESSWIRE / September 14, 2017 / Kapuskasing Gold Corp. (TSX-V: KAP) (the '...
About this update from Ophir Metals Corp
[{"type":"text","content":"Kapuskasing Finalizes Agreement to Acquire Previous Producing Daniels Harbour ''Mississippi Valley Type'' Zinc Property in Newfoundland and Plans Geophysical ProgramVANCOUVER, BC / ACCESSWIRE / September 14, 2017 / Kapuskasing Gold Corp. (TSX-V: KAP) (the ''Company'' or ''KAP'') announces that it has executed and finalized, subject to TSX Venture Exchange approval, the formal option agreement (the Agreement) to earn a 100% interest in the Daniels Harbour Zinc Property located on the Great Northern Peninsula of Newfoundland, approximately 10 km's north east of the community of Daniels Harbour.\nPursuant to the Agreement, KAP may earn a 100% interest in the Daniels Harbour Property for total consideration of 1,750,000 shares, $60,000 in cash payments and a work commitment of $100,000 within the 24 months following TSX-V approval. The Vendor shall retain a 3% net smelter royalty (''NSR'') interest. The Company retains the option to buy back 2% of the NSR for $2,000,000. In the event KAP delineates a 43-101 compliant resource of 5,000,000 tonnes of ore grade zinc (Grade of at least 7% Zn), the vendor will receive a one-time bonus payment equating to CDN$50,000 payable in cash or shares at the election of KAP on the day of which said report is filed on SEDAR.\nAbout Daniels Harbour\nThe Property consists of 42 claims (1,050 hectares) and has been explored and developed by one owner (Teck) since zinc mineralization (Mississippi Valley Type (''MVT'') carbonates) were discovered. Teck Explorations (operating as Newfoundland Zinc Mining Limited) mined approximately 7 million tonnes averaging 7.8% zinc from the Daniels Harbour mine between 1975 and 1990. More recently, Altius Minerals Corporation has acquired a significant land position in the immediate area, contiguous and surrounding the Daniels Harbour Zinc Property.\nMineralization in the Daniels Harbour zinc deposits occurs in generally long, narrow, NE-trending bodies, parallel to the long axes of dolomite breccia piles and to normal faults. In the mine area, a total of 21 'zones' named alphabetically 'A' to 'W' were recognized. The largest of these was the L Zone ore body, which consisted of at least three parallel bodies ranging in width from 25 to 80 feet separated by narrow areas of low grade mineralization. The L Zone extends over a length of 10,000 feet. The maximum vertical t...