Breakwater eyes Oued Amizour

A letter-of-intent agreement with an Algerian geological agency sets the stage for Breakwater Resources (BWR-T) to earn up to a 90% interest in the Oued Amizour zinc project, 10 km from the port city of Behaia and about 270 km east of the capital, Algiers.

The 105-sq.-km property includes a zinc-lead deposit with a total resource of 30.2 million tonnes grading 5.5% zinc and 1.4% lead (varying in thickness from 10 and 190 metres), including a higher-grade core of 11 million tonnes grading 10.9% zinc and 3% lead with an average thickness of 50 metres. The land package hosts three additional prospects.

The agreement calls for Breakwater to complete a feasibility study, arrange financing and construct and manage the operation. A US$5-million payment to the geological agency, drawing on net profits, will be made over five years. A 5% net smelter return royalty will be shared by the Algerian government and the state geological agency.

In other news, Breakwater has arranged financing to complete the US$48-million purchase of Cambior‘s (CBJ-T) Bouchard-Hbert and Langlois mines in Quebec. Once this transaction is completed, Breakwater will have six operating mines with a combined annual contained metal production of 550 million lbs. zinc, 18 million lbs. copper, 27 million lbs. lead, 30,000 oz. gold and 2.5 million oz. silver.