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K2 secures option to acquire silver-lead-zinc-prospective GDR property

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K2 secures option to acquire silver-lead-zinc-prospective GDR property

K2 Gold Corp. secured an option to acquire the silver-lead-zinc-prospective GDR property located north of the British Columbia-Yukon Territory border in Canada.

Under the terms, K2 is required to make cash payments totaling C$90,000 and issue 1.2 million shares over four years. The vendor syndicate will retain a 3% net smelter royalty, and K2 will have the option to purchase 2% of the NSR for C$2 million.

GDR consists of the MR, Veronica and MFW license blocks covering a total of 3,073 hectares. The property is hosted in Paleozoic sediments with potential for high-grade silver-lead-zinc carbonate replacement deposits similar to the nearby Silvertip mine owned by Coeur Mining Inc.

K2 said Jan. 9 that it is working to further define targets for initial drill testing.