Auspex cuts high-grade zinc, silver

Partners Auspex Minerals (APJ-V) and International Vestor Resources (IVS-V) have tabled impressive assay results from the first six holes of a third-phase, 12,000-metre program at the Aljustrel polymetallic project in Portugal.

The program is attempting to define reserves in the high-grade portion of the Feitais deposit, down to a depth of 300 metres. To date, Auspex, the operator, has drilled 3,734 metres in 12 holes, all of which cut significant widths of massive sulphide mineralization.

Results from the first six holes indicate that drilling has intersected wide intervals of high-grade zinc and silver mineralization, as well as respectable gold grades.

Holes 28 and 29 were spaced 40 metres apart on section 360. Hole 27 was collared 40 metres to the northwest on line 400. Holes 30 and 31 were spaced 60 metres apart and collared on line 480, situated 80 metres farther northwest.

Hole 32 was collared on section 520, about 66 metres down-plunge from hole 30. Highlights are as follows (all intervals are reported as true width):

• Hole 27 intersected 30 metres averaging 6.2% zinc, 1.78% lead and 0.22% copper, plus 1.05 grams gold and 64.91 grams silver per tonne, starting at a down-hole depth of 272.75 metres. Included in this interval was a 13.33-metre section grading 9.19% zinc, 2.43% lead, 0.2% copper, 1.27 grams gold and 84.77 grams silver.
• Hole 28 intersected 32 metres averaging 9.29% zinc, 3.53% lead, 0.18% copper, 1.09 grams gold and 130.75 grams silver per tonne, starting at 234 metres down-hole. Included in this interval were two higher-grade intercepts. The first intersected a 10.7-metre section of 14.11% zinc, 5.78% lead, 0.2% copper, 1.07 grams gold and 214.04 grams silver; the second cut 9.9 metres averaging 10.02% zinc, 3.53% lead, 0.16% copper, 1.47 grams gold and 106.23 grams silver.
• Hole 29 intersected 35 metres averaging 7.75% zinc, 3.24% lead, 0.17% copper, 1.6 grams gold and 140.64 grams silver, starting at a down-hole depth of 223.60 metres. This included 5.2 metres of 13.90% zinc, 6.47% lead, 0.17% copper, 1.01 grams gold and 236.33 grams silver.
• Hole 31 intersected 20 metres averaging 7.44% zinc 1.94% lead, 0.2% copper, 1.02 grams gold and 57.53 grams gold, starting at 302 metres down-hole.
• A previously unknown high-grade copper zone was discovered in holes 30 and 32. The mineralization remains open down-plunge. Ray Hughes, manager of investor relations for Auspex, says the copper-rich zone is stockwork mineralization that intensifies into massive sulphides containing visible chalcopyrite. Drilling returned 9.28 metres averaging 6.29% zinc, 2.41% lead, 0.13% copper, 0.59 gram gold and 84.06 grams silver, starting at a down-hole depth of 230.4 metres. This was followed by a 40-metre section of 0.78% zinc, 0.26% lead, 3.05% copper, 0.32 gram gold and 23.3 grams silver, starting at a down-hole depth of 266.4 metres, including 8.58 metres of 0.98% zinc, 0.38% lead, 5.09% copper, 0.21 gram gold and 21.62 grams silver.
• Hole 32 cut 114.01 metres averaging 2.71% zinc, 0.86% lead, 1.33% copper, 0.75 gram gold and 37.31 grams silver, starting at a down-hole depth of 228.8 metres. Included in this interval was an 18.06-metre zinc-rich zone averaging 8.12% zinc, 2.44% lead, 0.22% copper, 1.57 grams gold and 90.84 grams silver, starting at 240.5 metres down-hole. This, in turn, was followed by a 52.37-metre copper-rich zone that averaged 0.95% zinc, 0.17% lead, 2.64% copper, 0.23 gram gold and 18.43 grams silver, starting at a depth of 295 metres down-hole. The copper-rich interval included a 24.49-metre section of 1.17% zinc, 0.15% lead, 4.46% copper, 0.16 gram gold and 24.82 grams silver. Assays from the remaining six holes are pending.

Two additional diamond drills will begin work shortly in order to finish the remaining 8,000 metres by late June. As part of the ongoing feasibility study Steffen, Robertson & Kirsten (SRK) Engineering will recalculate the reserves. Underground sampling and initial bench-scale metallurgical tests are also under way.

Auspex Minerals and International Vestor each stand to earn a 37.5% interest in the project from the Portuguese state mining company Empressa de Desenvolvimento Mineiro by bringing Aljustrel back into production.

Several minable deposits occur in the Aljustrel mining lease, though the prefeasibilty study is based on mining and processing primarily of the Feitais and Moinho deposits. The former contains 13 million tonnes with diluted grades averaging 5.94% zinc and 2.02% lead, plus 66 grams silver per tonne; the latter, 4.6 million tonnes with diluted grades of 5.44% zinc, 2.18% lead and 66 grams silver.

Auspex conservatively estimates that Aljustrel can be put back into production within 24 months but is shooting for a startup in 16-18 months.

In late January, Auspex and Vestor announced their intention to merge to form a company called EuroZinc. Vestor shareholders will receive one share of EuroZinc for each share held, whereas shareholders of Auspex will receive

0.75 of a share of EuroZinc for each held.

At Auspex Minerals’ annual general meeting in April, shareholders voted 99.8% in favour of the merger. On the same day, Vestor shareholders voted 100% in favour. The amalgamation is still subject to the approval by the Supreme Court of British Columbia. Within three weeks of clearing this last hurdle, EuroZinc will trade on the Vancouver Stock Exchange under the ticker symbol ezm.