InZinc Mining Ltd. (TSXV:IZN) (“InZinc” or the “Company”) is pleased to announce that, subject to TSXV acceptance, it has signed an option agreement with Pac Shield Resources Inc. (“PSR”), a private British Columbia company, to acquire a 100% interest in the Indy zinc project (“Indy”) located in central British Columbia. The Indy project hosts extensive, … Continued
Indy is a well located, high potential zinc project that complements the Company’s large and advanced flagship West Desert project in Utah where a Preliminary Economic Assessment (2014) concluded low cost, bulk underground mining and conventional processing can produce clean, high quality concentrates at mid-tier levels of zinc production. The West Desert resources are also open for expansion and are being prepared for drilling as part of prefeasibility.
- Ground access, 55 km from major highway, 70 km from trans-continental rail
- Last comprehensive exploration by majors 26 years ago
- 450 m long mineralized Tex Zone outlined by shallow, wide-spaced historical drill holes
- Tex Zone drill intersections range from 1.5 m to 19.7 m widths, grading from 1.9% to 8.9% zinc, from 1.0 g/t to 55.6 g/t silver and from 0.04% to 2.4% lead
- All mineralized Tex Zone intersections estimated within 100 m of surface
- Tex Zone open for expansion on strike, at depth and is a priority drill target
- Surface zinc oxides grading 45.5% zinc and 7.9 g/t silver in recent grab samples
- Multiple, large soil geochemical anomalies over 6.5 km strike offer potential for additional discoveries
- Four styles of zinc mineralization are widespread and only partially explored
- Ground work and additional soil sampling are planned to prepare the project for drilling in 2017
Indy consists of five mineral claims (1380 hectares) located approximately 100 kilometres south of the city of Prince George, British Columbia. The area covers 9.8 kilometres of deformed sedimentary rocks spanning the Cambrian to Lower Mississippian; a geological period known to produce most of the major western Canadian zinc deposits.
Zinc in Near Surface Drill Intersections
Indy was last explored by major mining companies between 1980 and 1990. Six shallow, wide-spaced diamond drill holes in 1989-90 targeted a portion of a high contrast soil anomaly (Anomaly B). All six holes intersected mineralization at estimated vertical depths less than 100 metres, outlining the 450 metre long mineralized Tex Zone.
Tex Zone – Highlights of Historical Diamond Drilling (1989-90)
|Hole ID||Interval (m)*||Zn (%)||Pb (%)||Ag (g/t)|
|*True width unknown.||**Core recovery less than 50%.|
Descriptions of the mineralized drill intersections (from previous operators) include the minerals sphalerite, galena and barite in fractures and breccias hosted in dolostone, all of which are common constituents of Mississippi Valley Type (MVT) style or low temperature Carbonate Replacement Deposit (CRD) zinc mineralization.
Large, Untested Soil Geochemical Anomalies
Historical exploration at Indy utilized soil geochemistry and led to the successful discovery of the Tex Zone mineralization. The Indy project includes compiled digital data from over 2,100 historical and recent soil geochemical samples from across 7.5 kilometres of the property. These samples outline several large multi-element (zinc-lead-barium-silver) soil geochemical anomalies occurring across a 6.5 kilometre length of the property (see map provided). The following four geochemical anomalies cover a large area across a linear trend over moderate terrain: Anomaly A (600 m by 350 m); Anomaly B (Tex Zone) (700 m by 150 m); Anomaly C (700 m by 200 m); and Anomaly D (800 m by 400 m). Several of these anomalies have not been explored or remain only partially explored. This includes the high contrast soil signal from Anomaly B, which was partially explored by drilling in 1989-90 and led to the discovery of the Tex Zone (see drill results above).
Developing Exploration Targets
Four types of zinc mineralization (including MVT or low temperature CRD style) are documented on Indy. The variety of zinc mineralization, respective host rocks and the widespread distribution of these occurrences across Indy may be suggestive of a larger mineralizing event and may provide new opportunities and target areas. Additional soil sampling, prospecting and geological mapping are required on all anomalies and mineral occurrences to improve the resolution of exploration data prior to drill target selection.
A series of maps detailing the Indy project may be found at this link: http://media3.marketwire.com/docs/1072937m.pdf
Pursuant to the option agreement with PSR, the Company has the option to earn a 100% interest in the Indy project over a five year period by making staged cash payments totaling $305,000, (including $30,000 upon TSXV acceptance), issuing an aggregate of 2,100,000 shares (including 200,000 upon TSXV acceptance) and completing work commitments of $2,600,000 ($75,000 in the first year). In addition, a $500,000 cash payment and issuance of 500,000 shares of the Company will be made to PSR if the Company files a technical report establishing a 500,000,000 pound zinc resource on the Indy project. A further $500,000 cash payment will be made to PSR should the Company file a technical report establishing a 750,000,000 pound zinc resource on the Indy project. The Indy project is subject to a 1.0% NSR held by PSR (the “PSR NSR”) and a 1.5% net smelter royalty (“NSR”) held by Kerry Curtis, a director, Chairman of the Board and the interim Chief Executive Officer of the Company, and a director and the controlling shareholder of PSR. On exercise of the option and prior to completion of a feasibility study on the Indy project, the Company has the right to purchase the PSR NSR for $1,500,000.
About InZinc Mining Ltd.
InZinc owns a 100% interest in the West Desert zinc-copper-iron project located in western Utah. West Desert hosts a large and expandable resource and benefits from all-weather road access, on-site grid power and proximity to natural gas transmission. It is located 90 kilometres (55 miles) from multiple transcontinental rail networks accessing all major North American markets and servicing a variety of western US ports. For more information please visit our website at www.inzincmining.com.
Kerry M. Curtis, P.Geo. a Qualified Person as defined in NI43-101, has approved the technical content of this news release. The technical content contained in this news release is based in part on historical reports. The historical reports pre-date NI 43-101 reporting requirements and the Company cannot verify the content of the historical reports and is not responsible for the accuracy of the content of the historical reports.
InZinc Mining Ltd.,
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information (collectively, “forward-looking statements”) within the meaning of applicable Canadian and US securities legislation. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding the Company’s next shareholder meeting. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results, performance, or actions and that actual results and actions may differ materially from those in forward-looking statements as a result of various factors, including, but not limited to, those risks and uncertainties disclosed in the Company’s Management Discussion and Analysis for the year ended December 31, 2015 filed with certain securities commissions in Canada and other information released by the Company and filed with the appropriate regulatory agencies. All of the Company’s Canadian public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the Company’s mineral properties.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Chairman and Interim Chief Executive Officer
www.inzincmining.comInZinc Mining Ltd.