Galway Metals Inc. said Aug. 18 that it acquired the past-producing Estrades zinc mine in western Quebec, along with the related Newiska concessions and adjacent Casa Berardi claims.
The claims, which are mostly contiguous and cover 14,854 hectares, were acquired through various deals with Mistango River Resources Inc., CR Capital Corp., First Quantum Minerals Ltd., Globex Mining Enterprises Inc. and a private company. Galway Metals also staked additional claims covering 1,396 hectares.
Galway Metals reported an updated resource estimate for the Estrades property. Indicated resources for the Main and Central deposits total 1.3 million tonnes grading 8.0% zinc, 3.9 g/t of gold, 1.1% copper, 137.9 g/t of silver and 0.65% lead, while inferred resources for the Main, Central and East deposits total 1.2 million tonnes grading 4.3% zinc, 1.5 g/t of gold, 1.5% copper, 68.6 g/t of silver and 0.26% lead.
The company paid C$1.4 million and issued 800,000 units as consideration. Each unit includes 1 share valued at 25 cents and a warrant exercisable at 52 cents per share for three years. In addition, the company agreed to issue three royalties on parts of the properties.
The company is planning exploration programs at Estrades and Newiska, including infill drilling at Estrades to increase resources, with work scheduled to begin in January.