Now the BC property is up for sale and Prize Mining (PRZ.V) needs to rethink the exploration approach for the Manto Negro copper project in Mexico, the company is pushing through with new additions to its asset portfolio. Earlier this month, Prize entered into an option agreement with Denton Resources, a private company, to acquire full ownership of 62 claims (the total surface area of the project is unknown at this point) that comprise the Carscallan property in the Timmins Gold Camp.
The earn-in agreement to obtain a 100% stake in the project depends on how successful the exploration activities on the property will be. Denton Resources can decide on which geophysical anomalies Prize Mining has to drill, and Prize has committed to complete 3,200 meters of drilling in four holes based on Denton’s geophysical anomalies. Prize will also have to pay a total of C$30,000 in cash.
Should the drill-test of these anomalies be successful and point in the direction of the existence of ‘meaningful mineralization of targeted metals of a grade and thickness that would be worthy of follow-up drilling, having the potential to be economic to mine and seen by the public market as high grade’, Prize will have to pay an additional 1M shares and 1M warrants with an exercise price of C$0.05 (expiring 2 years after their issue date) per anomaly to secure full ownership of the project. Once this happens, Prize will issue a 3% Net Smelter Royalty on any future production from Carscallan.
Apparently Prize Mining has already completed drilling (a part of?) its Phase I exploration program, so we should see assay results in the next few weeks.