RFC Resource Finance Corp. (VSE) has acquired an option to earn a 100% interest in a shutdown zinc mine. In Washington State, about 50 miles south of Trail., B.C., the Pend Oreille zinc-lead mine operated from the early 1900s until it closed in 1977.
The option was acquired from Pintlar Corp., a wholly-owned subsidiary of Gulf Resources and Chemical Corp., a U.S.-based company. RFC has a 12-month period to exercise its right to buy the property for $1.25 million(US). RFC paid Pintlar $150,000 for the option and can renew for six more months by paying an additional $50,000.
RFC plans to complete a $1-million assessment program designed to confirm reserves and investigate the possibility of preconcentrating the ore via screening or sink flotation methods. Following completion of this initial 4-month program, the company will consider an underground evaluation beginning with shaft dewatering, mine development and mill refurbishment. When closed, the mine had a 2,400-ton-per-day mill on site.
A drill-indicated reserve north of the mine workings was estimated by Pintlar to be in excess of six million tons of comparable mine grade. The mill processed rock averaging 7.3% zinc and 1.8% lead.
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