Pasinex Resources Ltd. secured an option to earn up to an 80% stake in the Gunman high-grade zinc project in Nevada from Cypress Development Corp. and Silcom Systems Inc.
Silcom Systems was originally earning up to an 80% stake in the project from Cypress through an April option deal.
Pasinex will earn the 80% interest by paying about US$1.5 million in cash and shares and spending at least US$2.9 million on exploration on the property over four years, according to a Dec. 7 news release.
Reverse circulation drilling totaling 12,250 meters on the project intersected zinc grades between 5% to 33% and silver between 15g/t to 465g/t over substantial widths.
The deposit style at Gunman is carbonate replacement with central zones of massive, strongly oxidized mineralization and halos of partial replacement and veining. The mineralization is within 125 meters of the surface.
In addition, the company recently received US$1 million full dividend from the 2016 profits of its 50%-owned joint venture company Horzum AS., which operates the Pinargozu zinc mine in Turkey.
"This represents the first cash coming out of Turkey. Expected future cash flows from Pinargozu underpins the reason to enter into the option to acquire this high-grade zinc prospect in Nevada that shows many similarities to what we have in Turkey," Pasinex President and CEO Steve Williams said.