Xstrata Zinc has closed its acquisition of the Hackett River and Wishbone exploration properties, located in the Western Kitikmeot region of Nunavut, Canada, from Sabina Gold and Silver Corp. for a cash consideration of C$50 million. Under the terms of the agreement, Xstrata will commit a further C$50 million toward exploration on the properties within four years of the transaction’s completion and Xstrata will pay Sabina a royalty on silver produced from the properties.
Exploration drilling in Hackett River has confirmed an NI 43-101 compliant resource of 60 million mt of ore containing zinc, silver, copper, lead and gold, with approximately 5.2 million mt of zinc equivalent, housed within four proximal near surface deposits amenable to open-pit mining. Both properties contain significant additional exploration potential.
