Noble Peak acquires BHP-Utah zinc deposit

Noble Peak plans to examine the possibility of using hydrometallurgical methods to extract metals from the deposit as opposed to producing a concentrate for shipment to a smelter. The company says hydrometallurgy is a lower cost alternative and more environmentally attractive.

The deposit hosts reserves of 10 million tons grading 6% zinc per ton in an oxide cap amenable to open pit mining and 9% per ton which would have to be mined via an underground operation. Copper, silver and gold credits are also present. Several rich intersections have not been included in the reserve estimate. This, Noble Peak says, suggests that the potential for incre asing reserves is good. Holes not included in the reserves include 40 ft grading 13.4% zinc per ton and 10.5% zinc in a 28-ft section.

The company plans to raise $1.8 million via a private placement financing being arranged by Sharwood & Company, a Toronto investment firm.

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