The property is located 55 kilometres east-southeast of Terrace, B.C., in the Stikine terrane. The rocks on the property are of the Hazelton Group volcanics and sedimentary rocks. To date, only limited reconnaissance programs have been conducted on the property, which include a small, anomalous for copper and silver soil grid over the northern portion of the Switchback showing. The outcrop sampling includes samples that returned 626.3 grams per tonne Ag and 4.39 per cent Cu, located roughly in the centre portion of the claims (and the showing), and 138 g/t Ag and 4.02 per cent Cu in an outcrop approximately 100 m to the north.
Volcanic redbed copper (VRC) deposits occur as concordant and peneconcordant disseminated crosscutting vein, and fault-controlled copper sulphide and/or native copper deposits in predominantly sub-aerial volcanic sequences. Mineralization can typically comprise chalcopyrite, chalcocite, bornite covellite and/or native copper which contain silver; this style of mineralization is distinct from VMS deposits. Common textures and structures are open space filling, vein and veinlets, replacement, disseminated, and laminated mineralization.
Norseman Capital Ltd. has an option agreement with Cloudbreak Discovery Corp. to acquire a 100-per-cent interest in certain mining claims located in the province of British Columbia. The entering into of the option agreement is subject to the approval of the TSX Venture Exchange.
Pursuant to the option agreement, in order to fully exercise the option, the company shall: (i) pay to Cloudbreak an aggregate of $30,000 and 750,000 common shares in the capital of the company in instalments; (ii) pay to 1975647 Alberta Ltd. an aggregate of $60,000 and 1.85 million common shares in installments; and (iii) make aggregate exploration expenditures of $475,000 on the Silver Switchback property over three years.
In addition, pursuant to the option agreement, the company shall grant to Cloudbreak a 1.0-per-cent net smelter return (NSR) royalty. The company shall have the right to acquire one-half of the NSR from Cloudbreak at a price of $500,000.