The success of the Eskay Creek gold-silver mine, north of Stewart, B.C., has prompted operator Prime Resources Group (PRU-T) to option a nearby property considered to have potential to host similar deposits.
Prime recently signed an agreement allowing it to earn an undivided 51% interest in the 6,000-ha PRU block of Kenrich Mining’s (KRC-V) 18,700-ha Corey property, south of Eskay Creek.
The gold producer can earn the interest through a combination of cash payments, share purchases and exploration expenditures totalling $10.5 million. Prime can earn a further 19% interest in the PRU block by spending a further $10 million on exploration, development and feasibility programs.
The PRU block consists of 20 contiguous claims and covers a 12-km strike length of prospective Eskay Creek-Type stratigraphy.
Kenrich says recent mapping has outlined two distinct packages of mafic volcanics, which may bear similarities to those that host Eskay Creek.
Prime intends to mobilize a rig to begin drilling the prospect this summer.
In the meantime, Kenrich will continue its exploration efforts elsewhere on the Corey claims.