Everton Resources said that Hecla Mining Company will invest $756,000 in an exploration program on the Opinaca B gold property, presently held by Everton and its partner Azimut Exploration Inc. The Opinaca B Property, which comprises 235 claims covering 122.9 km2, is located in a highly prospective part of the Eleonore mining camp. It is adjacent to the east side of the Cheechoo Property held by Sirios Resources Inc. and Golden Valley Mines Ltd.
Starting in June 2016, Hecla will fund a comprehensive exploration program at Opinaca B, which will consist of prospecting and extensive mechanized trenching with the planned collection of about 2,000 rock samples in three target zones. This program is supported by encouraging gold results from previous diamond drilling and till sampling campaigns.
Hecla has the option to acquire a 50% interest on the Opinaca B Property by incurring $6 million in exploration work. During a second option phase, Hecla may earn an additional 10% interest, for a total of 60%, by incurring at least $3 million in exploration work and by delivering an independent pre-feasibility study.
If mineral resources containing at least 2 million ounces of gold at a grade of at least 6 g/t Au are discovered before the end of the eighth year of the initial option agreement, Hecla shall make a payment of $1.5 million in Hecla common shares. Everton will receive 50% of these issued shares.