Vancouver — A recently completed infill drilling and test-mining program has upgraded resources at the Wolverine deposit being advanced to feasibility by owner
A newly released independent report compliant with National Instrument (NI) 43-101 reporting standards places measured and indicated resources at 4.52 million tonnes grading 12.04% zinc, 1.15% copper, 1.57% lead, and 351.5 grams silver and 1.68 grams gold per tonne. The underground deposit also hosts an additional inferred resource of 1.69 million tonnes grading 12.16% zinc, 1.23% copper, 1.74% lead, 385.1 grams silver and 1.71 grams gold.
The upgraded resource confirms a previously released estimate predating NI-43-101 standards of 6.23 million tonnes grading 12.66% zinc, 1.33% copper, 1.55% lead, 370.9 grams silver and 1.76 grams gold. The new estimate was based on 38,515 metres of drilling in 158 holes.
Yukon Zinc notes that the geologic continuity of the deposit is now “well established” through underground development, including a test-mining program, and diamond drilling, including 55 additional infill drill holes.
The newly reported measured and indicated resource contains 1.19 billion lbs. zinc, 115.4 million lbs. copper, 155.9 million lbs. lead, 51.1 million oz. silver and 240,000 oz. gold. Inferred resources require more drilling, and are generally within the deeper and thinner parts of the deposit.
Based on letters of intent from smelters, payable metals in zinc concentrates are zinc at 85% and silver at 28% of the gross metal value. A treatment charge of US$151 per tonne was estimated after taking into account penalties for various impurities.
Copper concentrates were assigned a treatment charge of US$100 (including penalties for impurities). Payable metals are copper at 73%, gold at 80%, and silver at 77% of the gross metal value. Lead concentrates were assigned a treatment charge of US$130 (including penalties), with payable metals of lead at 93%, gold at 95%, and silver at 90% of gross metal value.
A transportation cost of US$117 per tonne was assumed for transport to a port at Stewart, B.C. Cost estimates for mining, processing, and construction will be included in a feasibility study for the project. The study is expected to be completed in February 2006 with a view to advancing the project to a production decision in mid-2006, and production in 2007.
As part of the feasibility study, Yukon Zinc carried out an underground test-mining program to confirm continuity and resources, and to provide confirmation of ground conditions and proposed mining techniques. The study will also include results of dense media separation testing to confirm its effectiveness as a pre-concentration step to improve head grades and boost mill recoveries.
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