EuroZinc wraps up drilling

With results in hand from the final six holes of the 1999 drilling program, EuroZinc Mining (EZM-t) has moved another step closer to completing the final feasibility study for the Aljustrel zinc project in Portugal.

This year’s program of infill and stepout drilling was focused on the Feitais deposit, one of five zoned massive sulphide deposits at the past-producing Aljustrel property. At last report, Feitais hosted a resource of 13 million tonnes grading 5.9% zinc, 2.02% lead and 0.2% copper. The average silver grade is expected to be 2 grams.

SRK Engineering and Rescan Engineering will incorporate the results into their final feasibility study, scheduled for completion early next year. It will include an updated minable reserve for Feitais, as well as the results of pilot-plant metallurgical studies.

After the study is completed and project financing arranged, EuroZinc will have acquired a 75% interest in the project from a Portugese state-owned mining company.

EuroZinc is encouraged by the latest results, which continued to intersect wide massive-sulphide intervals with strong zinc and copper mineralization. It is particularly heartened that results are verifying the high-grade tenor of the newly discovered FS60 zone. Among the highlights are: hole 9974, which intersected a 27.8-metre interval of 7.38% zinc; hole 9978, which hit a 31.6-metre section of 6.15% zinc; and hole 9977, which cut a 14.5-metre section of 2.2% copper.

EuroZinc also drilled two deep stepout holes, 9973 and 9976, which intersected the Feitais deposit 420 metres and 470 metres vertically below surface. Hole 9973 hit a 15.9-metre inteval of 6.81% zinc and 104.76 grams silver per tonne, and an underlying copper zone, which returned 4.31% copper over a 19.5-metre intersection. The deposit remains open downdip of these holes.

EuroZinc hopes to revive the Aljustrel project, based on an operation treating 1.5 million tonnes per year of zinc-rich ore, beginning in late 2000. Capital costs are estimated in the range of US$40-50 million, though this amount could be reduced by European grants.

In addition to developed deposits, the Aljustrel project includes a modern 3,500-tonne-per-day mill, tailings disposal facility, roads, rail and a deep-water port.