Canadian mineral exploration company Sun Summit Minerals has entered into an option agreement with Eagle Plains Resources to acquire up to a 100% interest in the latter’s Theory copper-gold project in British Columbia, Canada.
The acquisition will add approximately 10,000 hectares (ha) to Sun Summit’s Toodoggone mining district holdings, expanding the company’s footprint to around 25,000ha. It will position the company for district-scale exploration and development.
Under the first phase of the option agreement, Sun Summit can earn a 75% interest over four years with exploration expenditures of C$3m ($2.08m), cash payments of C$250,000 and the issuance of 750,000 shares.
In the second phase of the option, the remaining 25% interest is available for a one-time payment of C$1m cash.
Eagle Plains will act as the operator under the first phase and may engage Terralogic Exploration Services as a geoscience consultant.
If the first phase is exercised but the second phase is not, Sun Summit and Eagle Plains will establish a 75/25 joint venture to explore and develop the property.
An extensive compilation of historical exploration data is currently under way, focusing on extensive prospecting, mapping and geochemical surveys completed in 1988. This will be integrated with a new 2024 geophysical dataset to identify field targets for the 2025 season.
Sun Summit CEO Niel Marotta said: “We are pleased to finalise the Theory option agreement. This enlarged district scale copper-gold project represents an exciting opportunity to revive exploration in the northern part of the Toodoggone mining district. We wish to thank Eagle Plains for having the business acumen to acquire an extensive land package with regional exploration targets.
“This deal, combined with the JD property, adds to the potential for a significant discovery and significantly enhances our strategic position in the Toodoggone Mining District.”
The Theory project, which borders Thesis Gold’s Ranch Project to the north and lies within 10km of Sun Summit’s JD Project, offers potential logistical advantages and synergies.
The acquisition would allow Sun Summit to border the Ranch Project on its northern and eastern boundaries.
The Theory project is considered highly prospective, with both epithermal-related gold targets and large bulk-mineable, porphyry-related copper-gold targets, supported by historical exploration and recent geophysical surveys.
The Theory project comprises 23 mineral claims covering 9,676ha and is 100% owned by Eagle Plains, with a small portion subject to an underlying 0.5% net smelter return (NSR).
Eagle Plains president and CEO Chuck Downie said: “Recent success by Sun Summit at their adjacent JD project, as well as spectacular drill-hole intercepts from Amarc Resources at the nearby Joy Project underline the Toodoggone District as one of the premier copper-gold exploration camps in North America.
“Attracting Sun Summit to advance the early-stage Theory project after EPL completed a single, low-cost exploration programme, validates Eagle Plains’ project generator model.”
In June 2023, Sun Summit Minerals agreed to acquire the 8,964ha CR property in British Columbia, Canada, from Canada-based Teck Resources.
