The company released an updated mineral resource estimate on Thursday, along with results from a recent barite metallurgical study conducted on the deposit.
The company, formerly known as Canadian Zinc, released the updated mineral resource estimate on Thursday (September 20), along with results from a recent barite metallurgical study conducted on the deposit, which is part of a 140-square-kilometer land package in Central Newfoundland.
According to the report, the Lemarchant deposit has an indicated resource of 2.42 million tonne grading 6.15 percent zinc, 1.6 percent lead, 0.68 percent copper, 1.22 grams per tonne of gold and 64 grams per tonne of silver at a 4 percent zinc equivalent cut off.
It also showed the resource grades barite content at 23.5 percent. A barite metallurgical study produced 97.75 percent barite in bench scale tests.
President and CEO of NorZinc, Don MacDonald, said the updated estimate showed significant improvements in the indicated resource and metal grades, as well as an overall increase in the size of the deposit.
“Results from the recently completed barite metallurgical study indicate a high grade barite concentrate is potentially viable, which could raise the overall gross metal value of the deposit,” he added.
According to the study, compared to a 2012 resource estimate, the new estimate pegs contained metal as up 123 percent for zinc, 162 percent for lead, 129 percent for copper, 136 for gold and 111 percent for silver.
The company said that the 2017 additional drilling carried out had improved the understanding and modelling of the deposit, which can now be applied to further exploration.
Between 2013 and 2017, NorZinc completed 91 drill holes and 8 drill hole extensions for 28,455 metres, all of which post-date the last NI 43-101 mineral resource estimate prepared for the deposit in 2012.
The previous estimate pegged the Lemarchant deposit mineral resource estimate in indicated at 1.24 million tonnes grading 5.38 percent zinc, 1.19 percent lead, 0.58 percent copper, 1.01 grams per tonne gold and 59.2 grams per tonne silver.
The company describes Lemarchant as hosted in the Late Cambrian Tally Pond volcanic belt, that is host to the past producing Duck Pond copper-zinc mine and numerous other base metal prospects.
The updated estimate with a focus on zinc comes as the zinc price continues to languish in global markets despite supplies dwindling. Zinc was trading at US$2,389.5 per tonne on Wednesday (September 19).
On the Toronto Stock Exchange, NorZinc was trading up 4.55 percent, closing at C$0.115 on Thursday.
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Securities Disclosure: I, Scott Tibballs, hold no direct investment interest in any company mentioned in this article.