Option Agreement - IMA Mine Project
DEMESNE RESOURCES ANNOUNCES DEFINITIVE
OPTION AGREEMENT TO ACQUIRE IMA MINE TUNGSTEN PROJECT IN IDAHO, U.S.
Vancouver, BC, November 6, 2024 - Demesne Resources Ltd. (CSE:DEME) (OTCQB:DEMRF)
(“Demesne” or the “Company”) announces, further to its news release of October 24, 2024, that
the Company has entered into an option agreement (the “Option Agreement”) dated November
5, 2024 with IMA-1, LLC (the “ Optionor”), pursuant to which the Optionor has granted to the
Company the option (the “ Option”) to acquire from the Optionor a 100% undivided interest
(subject to a 2% royalty) in the IMA Mine Project located in East-Central Idaho, United States (the
“IMA Property”).
The IMA Mine is a past producing underground tung sten mine situated on 22 patented claims
located in East Central, Idah o. Between 1945 and 1957, the prop erty produced approximately
199,449 MTUs of WO 3 and was subsequently explored fo r molybdenum by various operators
between 1960 to 20081.
“The IMA property offers tremendous opportun ity for the near-term development of North
America’s only producing tungsten operation, a strategic and critical mineral, and the exploration
potential for significant porphyry-style mo lybdenum mineralization on the property.” said,
Murray Nye, President and CEO Demesne. “Extensive historical records, prior drilling programs,
1980s underground rehabilitation work, and the project’s location on patented claims in mining-
friendly Idaho should allow accelerated advancemen t of the project and a low-cost production
scenario.”
Pursuant to the terms and conditions of the Opti on Agreement, and in order to acquire a 100%
interest in and to the Property (subject to a 2% royalty), the Company must pay to the Optionor
an aggregate of US$5,800,000 as follows:
(a) US$100,000 on the effective date;
(b) US$50,000 on the six (6) month anniversary of the effective date;
(c) US$100,000 on the one (1) year anniversary of the effective date;
(d) US$130,000 on the two (2) year anniversary of the effective date;
(e) US$150,000 on the three (3) year anniversary of the effective date;
(f) US$250,000 on the four (4) year anniversary of the effective date;
(g) US$250,000 on the five (5) year anniversary of the effective date;
(h) US$770,000 on the six (6) year anniversary of the effective date;
(i) US$1,000,000 on the seven (7) year anniversary of the effective date; and
(j) US$3,000,000 on the eight (8) year anniversary of the effective date.
1 Wardrop 2008; Technical Report on the IMA Mine Molybdenum Project, July 2008; Prepared for Gentor
Resources Inc., 52p.
If and when the Option has been exercised, a 100% undivided right, title and interest to the
Property will thereupon vest in the Company free and clear of all encumbrances, subject only to
the 2% royalty. Demesne will have the right to re duce the royalty to a 1% royalty by paying the
Optionor US$2,000,000 on or before the four (4) year anniversary of the effective date.
ABOUT THE IMA PROPERTY
The IMA Property is located in the Lemhi Range, near the community of Patterson, Idaho, located
approximately 20 miles east of Ch allis, comprising of the IMA Mine, with 22 patented claims on
395.98 acres and an additional 214.4 acres of patented ground in adjacent Pahsimeroi Valley.
The patented claims are accessible over exis ting roads managed by the Bureau of Land
Management.
The IMA Property is a past producing tungsten property that began as a silver mine in the 1800s.
Between 1945 and 1957, while op erated by the Bradley Mining Company, the IMA Mine
produced approximately 2,198 tons of WO 3 (199,449 MTUs), from 468k tonnes of ore with an
average recovered grade of 0.434% WO 3,2 and produced an additi onal sulfide concentrate
yielding 1.29M oz silver, 1.8M lbs copper, 2.92M lbs lead and 0.02M lbs zinc3. The IMA mine shut
down in 1958 upon collapse of the U.S. government tungsten buying program.
The property was subsequently explored for molybdenum by AMAX Inc. (1960-1962), Inspiration
Development Company (“Inspir ation”) (1979-1982), Gentor Reso urces Ltd (2007-2008), and
other junior exploration companies. Inspirat ion ultimately focused on exploration and
development of the quartz-tungsten-vein system , rehabilitating upper levels of the mine to
complete underground resource delineation drilling, conducting metallurgical work and
commencing construction of a haulage adit.3 Due to a decrease in tungsten prices, development
work ceased in 1982 prior to recommencement of mining.
Tungsten mineralization in the IMA Mine occurs in quartz veins hosted in Precambrian siliciclastic
metasediments containing pyrite, fluorite, hubnerite, scheelite, tetrahedrite, galena, sphalerite
and chalcopyrite. The quartz veins occur in a zone up to 900 feet wide, 2000 feet long and up to
700 feet in vertical extent1. Molybdenite mineralization occurs in the veins and disseminations in
potassically altered Cenozoic porp hyry intrusive that is exposed in the lower levels of the IMA
Mine and intersected in deeper historical drillin g. Mineralization occurrence is interpreted as
consistent with a sub-Climax type porphyry model with higher-level tungsten-base metal veins. 1
The IMA Mine is situated close to key infrastructure items and resources, including paved county
roads, tier-1 low-cost power supply, access to water rights, and a mining-oriented labour force.
2 Bradley Mining Company, 1958; Summarized Information on IMA Mine, Lemhi Co, Patterson, Idaho. Company
Report, 6p.
3 Victoria Mitchell, 1999; History of the Ima Mine, Lemhi County, Idaho, Idaho Geological Survey, Staff Report
99-2, University of Idaho, August 1999.
ABOUT DEMESNE RESOURCES LTD.
Demesne Resources Ltd. is a Br itish Columbia based company involved in the acquisition and
exploration of magnetite mineral properties. Th e Company's principal property is the Star
Project, consisting of five contiguous mineral ti tles covering an area of approximately 4,615.75
hectares located in the Skeena Mining Division , British Columbia, Canada. The Company has
entered into an option agreement pursuant to wh ich it is entitled to earn an undivided 100%
interest in the Star Project.
ON BEHALF OF THE BOARD OF DIRECTORS:
Murray Nye
CEO
For further information, please contact: Murray Nye, CEO, Email: [email protected];
Phone: (778)706-6104.
The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of
this release and has neither approved nor disapproved the contents of this press release.
This press release includes "forward-looking in formation" that is subject to a number of
assumptions, risks and uncertainti es, many of which are beyond the control of the Company.
Such statements represent the Company’s current views with respect to future events and are
necessarily based upon a numb er of assumptions and estima tes that, while considered
reasonable by the Company, are inherently subject to significant business, economic,
competitive, political and social risks, contin gencies and uncertainties. Many factors, both
known and unknown, could cause re sults, performance, or achi evements to be materially
different from the results, performance or ac hievements that are or may be expressed or
implied by such forward-looking statements. The Company does not intend, and does not
assume any obligation, to update these forward-looking statemen ts or information to reflect
changes in assumptions or chan ges in circumstances or any other events affecting such
statements and information other than as required by applicable laws, rules and regulations.
Statements concerning histor ical exploration and producti on on the property have been
obtained through both public and private sources, and are believed to be substantially factual
and relevant in that they demonstrate the tenor of exploration targets on the property. Neither
Demesne Resources, nor its Qualified Person, ha s done sufficient work to verify historical
information regarding past production or exploration, and this information should not be relied
upon until it has been verified.
Technical information in this news release has been prepared in accordance with Canadian
regulatory requirements set out in National Instrument 43-101 — Standards of Disclosure for
Mineral Projects (“NI-43-101”). Austin Zinsser, P.G., SME-RM, Vice President, Exploration for
the Company, and a Qualified Person as defined by NI-43-101 and has reviewed and approved
the scientific and technical information in this Presentation.