Firestone cuts high-grade zinc in Guatemala (March 29, 2006)

Vancouver — Firestone Ventures (FV-V, FSVEF-O) must be pretty happy with initial drill results from its Torlon Hill zinc project, in western Guatemala, following intersections of very high-grade mineralization.

The first six holes of a planned 20-hole program delivered wide, exceptionally zinc-rich intercepts, including:

• Hole TH06-1 that intersected 28.8 metres, from surface, grading 11.2% zinc and 1.9% lead, including the top 15.7 metres that averaged 17.4% zinc;
• Hole TH06-2 cored 33 metres, also from surface, running 22% zinc and 1.4% lead, and included an initial 17.1 metres of 31.9% zinc and 1.8% lead; and
• Hole TH06-3 returned an initial 16.1 metres of 8.9% zinc and 2.7% lead, followed by 5.9 metres of 4.7% zinc and a deeper 11.4 metres of 6.9 % zinc and 2.5% lead.

“These first six holes were drilled at close spacing in an area of high-grade zinc mineralization locally exceeding 40% zinc exposed on surface” says Lori Walton, president of Firestone Ventures. “It was our intention to test the continuity of mineralization exposed at the surface and these holes have done so spectacularly.”

Zinc mineralization at Torlon Hill occurs primarily as smithsonite, a zinc carbonate (ZnCO₃), over an area of about 100 metres by 700 metres (the Santa Rosa Corridor). The zone occurs as a mineralized Permian dolostone breccia faulted onto a large serpentinite complex. Supergene weathering has oxidized the carbonate zone to depths of at least 50-metres.

Processing of zinc oxide ores requires a different treatment than the more commonly mined sulphide ores. The oxide mineralization requires a solvent extraction reagent process to liberate the zinc, similar to that now used at many of the world’s oxide copper operations. Typically, the oxide zinc bearing ore is leached by an acid solution then mixed with an organic extraction solution to “pull-out” the metal from the acid leach. Final extraction occurs by means of an electrolytic solution resulting in the production of cathode zinc.

The company’s drill program is testing a 200 metre by 100 metre central zone of the Santa Rosa Corridor. It is also looking at the expansion potential within the vicinity and plans a resource estimate.

Small-scale historic mining at Torlon exploited the lead mineralization since the 1500s, but the zinc deposits were never evaluated until recently. Firestone’s drilling is the first seen on the property.

The company holds an option to purchase a 100% interest in the project, including surface rights, from a local cooperative for payments totaling US$385,000 over four years. The project is situated about 12 km northwest of the western Guatemalan city of Huehuetenango located on the Pan-American Highway.

Shares of Firestone Ventures soared following the initial drill results, closing up 61% to 67 apiece with volume of 5.7 million on March 29th trading. With its 34.4 million shares outstanding, the company posts a $23 million market capitalization.