EuroZinc discovers new zone at Feitais

EuroZinc Mining (EZM-V) has intersected a shallow, high-grade zinc zone in the Feitais massive sulphide deposit at the formerly producing Aljustrel property in southern Portugal.

The first two holes of the current stepout drill program intersected massive sulphides about 100 metres northwest of previous drilling.

Hole 60 cut 35 metres averaging 0.14% copper, 2.81% lead and 8.5% zinc, plus 0.28 gram gold and 68.44 grams silver per tonne, starting at a down-hole depth of 282.3 metres (all core lengths are reported as true widths). In addition, a copper-rich zone was intersected 337.7 metres down-hole, averaging 2.28% copper, 0.01% lead, 0.05% zinc, 0.1 gram gold and 1.75 grams silver over 5.2 metres.

Hole 61 cut 18 metres of 0.27% copper, 2.51% lead 6.74% zinc, 0.34 gram gold and 72.47 grams silver, starting at 269 metres down-hole.

As a result of this discovery, EuroZinc has decided to increase its drill program to 7,700 from 4,500 metres. One rig will focus on delineating the new zone, while a second continues with the original stepout program.

The new zone is expected to be incorporated into an updated resource figure, to be calculated by SRK Engineering as part of a feasibility study, due by year-end.

According to the prefeasibility study, 13 million tonnes of material grading 5.94% zinc, 2.02% lead and 66 grams silver can be mined from the Feitas deposit. In addition, 4.6 million tonnes of 5.44% zinc, 2.18% lead and 66 grams silver are recoverable from the nearby Moinho deposit. Reserves, as currently outlined, would support a mine life of 12 years.

The Feitais and Moinho deposits represent two of four massive sulphide deposits on the Aljustrel and Estacao properties. None of these has been fully delineated.

Once the feasibility is completed, EuroZinc will have the right to acquire a 75% interest in the former producer by providing sufficient capital to restart the project and repaying debt remaining from a previous operation.

Pirites Alentejanas, a private company controlled by the Portuguese state mining company, Empressa de Desenvolvimento Mineiro, is the current owner of the Aljustrel project.

The fully permitted mining complex includes the already developed Moinho mine, which features a 1.2-million-tonne-per-year conventional flotation mill, rail loading and storage facilities, and a tailings disposal site.