A new company has announced its interest in mining the Upper Peninsula by exercising an option to earn a 51-percent joint venture interest in a project here.
HudBay Minerals, through an agreement with
Aquila Resources, has opted to earn over half the interest in the "
Back Forty Project" in Menominee County. HudBay, according to the terms of the agreement, is obligated to expend $10 million on the project in order to earn it's 51-percent stake. HudBay will act as operator of the Back Forty venture and can increase its ownership interest in the project to 65 percent by completing a feasibility study and submitting a mine permit application to the State of Michigan.
So what's in the ground in the Upper Peninsula that has HudBay's attention? According to surveys, the Back Forty project contains an advanced exploration-stage volcanogenic massic sulfide -- known in the business simply as VMS -- deposit containing gold, zinc, copper and silver.
"We are encouraged by ongoing progress at the Back Forty Project and are pleased to have reached this milestone in our relationship with Aquila Resources," says David Garofalo, HudBay's president and chief executive officer. "The Back Forty Project is an excellent fit with our strategy of acquiring and developing VMS and porphyry deposits with strong exploration potential in mining friendly jurisdictions."
The Back Forty Project also includes a significant exploration land package of approximately 9,600 acres, which will allow HudBay to use its award-winning exploration techniques for VMS deposits.
Writer: Sam Eggleston
Source: David Garofalo, HudBay Minerals
Enjoy this story?
Sign up for free solutions-based reporting in your inbox each week.