Commander Resources Ltd. (TSXV:CMD) (“Commander”) is pleased to report that it has entered into an earn-in agreement with Freeport-McMoRan Mineral Properties Canada Inc. (“Freeport”) allowing for Freeport to earn a 75% interest in the Company’s Burn property located 100 Km NNE of Smithers British Columbia.
Commander Resources Ltd. (TSXV:CMD) (“Commander”) is pleased to report that it has entered into an earn-in agreement with Freeport-McMoRan Mineral Properties Canada Inc. (“Freeport”) allowing for Freeport to earn a 75% interest in the Company’s Burn property located 100 Km NNE of Smithers British Columbia. The large 16,000 Ha Burn Property (19 km by 9 km) was acquired directly by Commander in the 2018 to cover prominent gossans exposed along ridges.
The Burn Property is located within the Babine Mineral belt 70 kilometres north of two past producing mines at Bell and Granisle. The belt is defined by a cluster of Eocene age porphyry copper and gold deposits. Initial work at Burn in 2018 identified widespread phyllic-style alteration with trace amounts of chalcopyrite. The host rocks are Babine intrusions comprised of biotite feldspar porphyry and quartz biotite feldspar porphyry intruding into Newman Formation andesites and Mesozoic sediments. Compilation of previous work as reported in assessment reports shows anomalous copper and gold values in a silt sample draining the central part of the alteration zone as well as selective rock samples with elevated copper and gold values. There is no record of previous geophysical surveys or drilling. An airborne magnetic survey (200 m spaced flight lines) outlined two prominent circular magnetic rings and several linear magnetic highs that are interpreted to represent stocks and dykes of Eocene age.
Work in 2019 is expected to begin immediately and may comprise property wide soil sampling, geological mapping and ~ 30 kilometres of induced polarization surveying (IP).
Summary of Agreement terms:
Freeport has been granted the right to earn up to a 75 % interest in the Burn property through staged option payments and work expenditures. To earn an initial 51% interest Freeport must make the following payments: $25,000 on the effective date, $35,000 on or before the first anniversary, $50,000 on or before the second anniversary, $50,000 on or before the third anniversary and $100,000 on or before the fourth anniversary, and complete $1,000,000 in exploration. Upon vesting at 51% Freeport may elect to sole fund an additional $1,500,000 in exploration expenditures and make three annual payments of $100,000. The companies would then enter a 75% Freeport/25% Commander Joint Venture. If either party dilutes to less than a 10% interest, then that interest would be replaced with a 1% net smelter return royalty (“NSR”). Commander will be the operator until Freeport vests at 51% interest.
Robert Cameron, P. Geo. is a qualified person within the context of National Instrument 43-101 and has read and takes responsibility for the technical aspects of this release.
About Commander Resources:
Commander Resources is a Canadian focused exploration company that has leveraged its success in exploration through partnerships and sale of properties, while retaining equity and royalty interests. Commander has a portfolio of base and precious metal projects across Canada. Commander also retains royalties from properties that have been partnered, optioned or sold.
About Freeport-McMoRan Mineral Properties Canada Inc.:
Freeport-McMoRan Mineral Properties Canada Inc. is a wholly owned subsidiary of Freeport-McMoRan (“FCX”) a leading international mining company with headquarters in Phoenix, Arizona. FCX is one of the world’s largest publicly traded copper producers. FCX operates large, long-lived, geographically diverse assets with significant proven and probable reserves of copper, gold and molybdenum.
On behalf of the Board of Directors,
Robert Cameron, P. Geo.
President and CEO
For further information, please call:
Robert Cameron, President and CEO
Toll Free: 1-800-667-7866
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may include forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements except as required under the applicable laws.