Vancouver-based Eastfield Resources Ltd. (TSX-V: ETF) said Monday that it has inked a deal with privately-held GK Resources laying out the details for GK to earn a 60 percent interest in Eastfield’s Iron Lake project. Iron Lake, a copper/gold/platinum/cobalt project, is one of five projects of Eastfield in British Columbia. To earn the interest, GK has agreed to complete $3.0 million in exploration at Iron Lake and pay $400,000 in cash and another $250,000 in cash or stock over five years.
GK is required to spend at least $100,000 in exploration during the first year of the contract. Terms on other payments were not provided.
Iron Lake, located 45 kilometers northeast of 100 mile House in the southeastern portion of the province, includes 21 claims spanning 8,035 hectares. Average metal content discovered in eight samples from 2000 to 2012 returned an average 0.71% copper, 0.70 grams per tonne gold and 324 parts per billion platinum+palladium. Limited drilling in 2005 and 2006 was unsuccessful in discovering the source of the mineralization, although one drill hole cut significant sulfide grading 0.34% copper and 23.7% iron. Other exploration showed cobalt values up to 0.35% (grab sample) and gold values as high as 74.9 grams per tonne (rock sample).
Eastfield has been active in optioning its projects to move them forward and pad its corporate coffers.
The Iron Lake news comes only four days after Eastfield announced optioning a 60 percent interest in its Indata copper/gold project 120 kilometers northwest of Fort St. James in B.C. to Prophecy Potash Corp. For its stake, Indata must complete $2.0 million in exploration and pay Eastfield $250,000 in cash and $150,000 in cash/stock over five years.
In November, the company optioned 60 percent of its Hedge Hog project north of Barkerville, B.C. to Copper Creek Gold Corp. (TSX-V: CPV). Similar to terms of the other deals, Copper Creek needs to spend $2.5 million in exploration and pay $350,000 in cash and another $150,000 in cash and/or stock to Eastfield by the fifth anniversary of the agreement.
Traders haven’t exactly rejoiced the option agreements, measured by shares closing flat on the day at 3.5 cents. After closing 2017 at 4 cents, shares of this thinly traded issue are down 12.5 percent.
