Firestone Ventures Inc. (TSX VENTURE:FV)(FRANKFURT:F5V) has announced that it has signed a formal Purchase Agreement with Kinross Gold Corp. to earn a 100% interest in the 1,240-acre (502-hectare) Black Mountain zinc-lead-silver property located 29 km northeast of Wells, Nevada, U.S.A.
"We are pleased to add the Black Mountain property to our zinc property portfolio in Nevada, U.S.A. – one of the most mining-friendly jurisdictions in the world," says Lori Walton, President of Firestone Ventures Inc. "Black Mountain is easily road-accessible and in close proximity to power and railroad."
Kinross Gold Corp. examined and staked (60 lode mineral claims) the Black Mountain property for its gold potential during 2008 and 2009. The main area of interest extends for 2.4 km by 4.8 km and covers the crest of Black Mountain. Gold results were low, but high-grade zinc and lead mineralization was noted and sampled. There are historical pits, trenches and two short tunnels on the property, but no record of mineral production.
Firestone collected a total of 17 rock chip samples from the historical workings during a due diligence field visit. Six contiguous 2 m rock chip samples cut along the rib of one of the underground tunnels contained 5.2% zinc and 1% lead across a width of 12 m. A dump grab sample from the same tunnel contained 17.8% zinc and 1.6% lead. Samples from shallow pits on the property contained up to 9.8% zinc. The highest silver value from rock samples was 7.5 grams/tonne.
Black Mountain is a north-trending anticline bounded by normal faults on the east and west. Zinc-lead-silver mineralization at Black Mountain is hosted in Mississippian to Devonian carbonate rocks exposed along the crest of Black Mountain. Mineralized zones are adjacent to north-trending, range-front normal faults. Mineralization replaces dolomite and consists of smithsonite, hemimorphite, and spotty remnant galena typically oxidized to cerrusite. The axis of the broad anticline trends north along the crest of Black Mountain and provides an extensional structural environment which increases permeability.
Terms of the AgreementUnder the terms of the Option Agreement, Firestone must complete USD $2 million in work expenditures over five years and complete 1,500 feet of exploration drilling within 18 months of signing. There is no yearly work expenditure requirement. At the end of five years Firestone will issue up to a maximum of 1,000,000 common shares with a maximum aggregate issuance price, based on the market price at the time of issue, of CND $500,000. A 1% Net Smelter Returns Royalty on base metals and a 2% Net Smelter Returns Royalty on precious metals is reserved for Kinross. Firestone will analyze for gold in the normal course of exploration. If a gold resource of 500,000 ounces or greater, as defined in NI-43-101 Standards of Disclosure for Mineral Projects, is outlined by Firestone then Kinross has the option to enter into a Joint Venture Agreement with Firestone and will contribute up to two times the expenditures that Firestone has incurred to date for a 70% interest in the joint venture. The joint venture will not apply to zinc minerals being developed by Firestone for its sole benefit.
All rock samples were analyzed by the Inspectorate Lab in Sparks, Nevada using 30 element ICP, AA for Zn and Pb and FA/AA for gold and silver.
John Cleary, (CPG), Firestone's Vice President Exploration and Qualified Person as defined by National Instrument 43-101 has reviewed and approved the technical content of this news release.
Source: Firestone Ventures Inc.