The Iron Lake, copper-gold-platinum group-cobalt project, is located 45 kilometres northeast of the community of 100 mile House, in southern British Columbia. The property consists of 21 claims totaling 8,035 hectares (19,854 acres) covering a large multiphase ultramafic intrusive body composed of pyroxenite, olivine pyroxenite, gabbro, sodic pegmatite and diorite phases. The intrusion is host to disseminated and massive sulfide styles of mineralization. In many ways the Iron Lake Complex is comparable to the Turnagain Ultramafic Complex in northern BC and also to the Lac Des Isles deposit in Ontario. Elevations are low and topography subdued allowing for year-round activity.
Between the years 2000 and 2012 many samples of mineralized rubble were found at Iron Lake which are enclosed by a 2 km long IP chargeability anomaly. All of these samples are similar in their rock type and metal content and disseminated character of mineralization with the average metal content of the samples being 0.71% copper, 0.70 g/t gold and 324 ppb platinum + palladium. Drilling completed in 2005 and 2006, targeting electromagnetic anomalies just south of the IP anomaly, encountered significant thicknesses of massive sulfide mineralization e.g. hole IL-05-03 (17 metres, aggregate thickness, of greater than 60% sulfide which graded 0.34% copper and 23.7% iron over this interval). Cobalt values in massive sulfide reach 0.14% over 1.4 meter drill core sample intervals while select grab samples reach 0.35%.
In 2016 claims were added on the southeastern side of the property to capture an area of arsenical gold mineralization associated with a megacrystic feldspar intrusion. Soil values in this area reach 12.0 grams per tonne gold and select rock samples reach 74.9 grams per tonne gold.
The primary objective of the 2019 program was be to explore for the bedrock location of the disseminated mineralization and for higher grade areas of massive sulfide mineralization. The program expanded the existing grid adding 7.5 km of induced polarization surveying to allow a more refined targeting process for future drilling. The area of completed IP has now been extended to 54 km. Many mafic hosted massive sulfide deposits worldwide grade from pyrrhotite dominant low grade mineralization into areas with greater proportions of chalcopyrite and pentlandite and correspondingly higher payable metal contents.
Eastfield has entered into an agreement with Tech-X whereby Tech-X can earn a 51% interest in “Iron Lake” by incurring escalating exploration expenditures totalling $4,500,000 and making escalating option payments totalling $520,000 over a five year term. Thereafter Tech-X can earn an additional 29% (80% total) by completing an additional $7,500,000 in exploration and paying an additional $480,000 over a further two year period.
Tech-X has also entered into an agreement with the original vendors of “Iron Lake” who hold a 1.5% net smelter return on production from the Eastfield claims (“the Royalty”). The Production Royalty Purchase Agreement allows Tech-X to purchase up to two thirds of the “Royalty” for $3,000,000 and retain a first right of refusal to purchase the balance. Escalating advance royalty payments totalling $500,000 are payable over 80 months as a credit towards the purchase following commencement of commercial production. In the event that Tech-X elects not to exercise its purchase option then the advance royalty payments are repayable to Tech-X out of production and Eastfield will then be allowed to purchase it for $3,000,000 and if it so chooses to purchase the entire Royalty for $4,500,000.
In summary the cumulative payments and work commitments required under the agreements are:
-Royalty Purchase Option advance payments (repayable out of production) $500,000
-Earn-in Option payments (over a seven year term) $1,000,000
-Exploration Expenditures on the Project to earn 80% (over a seven year term) $12,000,000
On earn in the option agreement provides for the formation of a joint venture to develop the project.