Cancor advances Gemini project

Junior Cancor Mines (KCR-T) has released an initial resource estimate for zone B at its Gemini zinc-copper property, north of La Sarre in northwestern Quebec.

To date, three massive-sulphide lenses have been delineated at Gemini:

– a main zinc-bearing lens in zone B grading 5-12% zinc over widths of 3.4-12.8 metres;

– a copper-bearing lens, also in zone B, grading 1-3.8% copper over widths of 3-8 metres; and

– a gold-bearing lens grading 1.65-3.96 grams gold per tonne in zone A, which is 4 km north of zone B, in the same stratigraphic horizon.

Zone B’s zinc-bearing lens forms a shoot that measures 150 metres long and 1.5-12 metres thick, with mineralization consisting mainly of sphalerite above the 400-metre level and chalcopyrite below that level.

The lens contains indicated resources of 668,940 tonnes grading 6.75% zinc, 0.45% copper, 0.58% lead, 1.75 grams gold and 114.3 grams silver, and inferred resources of 622,715 tonnes grading 2.98% zinc, 0.71% copper, 0.43% lead, 1.26 grams gold and 60.6 grams silver. The lens is open to the north and at depth.

The copper-bearing lens contains inferred resources of 721,310 tonnes grading 1.69% copper, 0.23% zinc, 1.22 grams gold and 54.4 grams silver. The lens, which lies south of the zinc-bearing lens, has been traced to a depth of 700 metres and remains open in all directions.

The resource figures are based on metal prices of US80 per lb. copper, US60 per lb. zinc, US$325 per oz. gold and US$5.50 per oz. silver, and on recovery rates of 85% for copper, 90% for zinc, 90% for gold and 75% for silver.

In the spring, Cancor completed a 2,000-metre drilling campaign that further defined the B zone along strike and at depth and tested a geophysical anomaly in the central part of the property. Drilling is to resume this summer.

Cancor also completed metallurgical tests that produced zinc and copper concentrates with recoveries of 84% and 72%, respectively, from a sample of zone B that graded 5.49% zinc, 0.56% copper, 3.64 grams gold and 82.30 grams silver.

In January 2000, under a 1997 option agreement, Cancor acquired a half-interest in the Gemini property from Inco (N-T) after spending $1.4 million on exploration and issuing 300,000 shares to Inco.

Under the agreement, Cancor remains project operator until it makes a positive production decision, at which time Inco may participate by either reimbursing all expenditures incurred by Cancor or transferring the remaining half of the project to the junior for a 2% net smelter return royalty.

Over the winter, Cancor raised $1 million by privately placing 2 million shares (of which 1.6 million are flow-through). The junior is spending $800,000 of the proceeds on drilling at Gemini.