Zinc One Resources Inc. (“Zinc One”) has entered into a binding agreement (the “Agreement”) whereby Zinc One has agreed to acquire all of the issued and outstanding common shares of Forrester Metals Inc. (“Forrester”) and through this will acquire the Bongará zinc-oxide deposit (“Bongará Zinc Mine”) and the adjacent Charlotte Bongará zinc-oxide project (“Charlotte Bongará Project”), subject to a 2% net smelter return royalty. This is the first time that these two projects have been controlled by a single operator and thus offers a unique opportunity to delineate a substantial high-grade, zinc-oxide resource along a 4km-long trend.To review our presentation with more details on this acquisition please follow this link: February 2017 Corporate Presentation
A number of historical resource estimates have been calculated on the Bongará Zinc Mine, including the latest one by Corianta S.A. in 2011:
Historical Resource Category Mineral Type Tonnes Zn (%) Measured Oxides 329,236 22.45 Indicated Oxides 678,560 21.2 Total M + I Oxides 1,007,79 21.6 Inferred Oxides 209,018 21.1
(Note: Please see cautionary statement on historical resource estimates below.)
High Grade Zinc-Oxide Properties
The Bongará Zinc Mine was discovered in 1974 and since then various companies have completed exploration programs across the area. The mineralization is concentrated along and proximal to a NW – trending anticlinal axis over approximately 2.5 kilometres. From the southeast edge of the project, the Mina Grande, Mina Chia and Bongaria mine areas were subject to sampling from pits and trenches as well as shallow drilling stretching over a distance of approximately 1.2 kilometres. This zinc-oxide mineralization appears to continue to the northwest into an additional exploration area known as Campo Cielo, where pits and trenches have also exposed additional high grade, zinc-oxide mineralization in historical pits and trenches in certain areas as shown on the attached map.
As mentioned above, the Bongará Zinc Mine was mined in 2007 and 2008 by a previous owner with material mined by open-pit methods, dried at the site, and then shipped 540km westward to the coast where it was processed through a Waelz kiln, a processing technology typically applied to flue dust from steel mills to recover zinc. A greater than 60% Zn calcine was made and sold to smelters/refineries in Peru and the United States. A sinking zinc price was the principal reason for shutting down the mine in August, 2008.
Approximately 2km northwest of the Bongará Zinc Mine at the Charlotte Bongará Project, in 2008 Rio Cristal Zinc announced impressive near- surface drill intercepts of zinc oxides that included 29.5% Zn across 15.5 meters, 26.1% Zn across 12.5 meters, 29.7% Zn across 11.5 meters (the cited intervals are drill-intercept widths and true widths are unknown). Due to a declining zinc price, funds to properly delineate this mineralization could not be raised and further evaluation did not proceed.
Zinc One has access to all data and technical work that date back to the 1990s. A compilation of this information is included in the NI43-101-compliant Technical Report, dated October 11th, 2016, and is available on SEDAR and on the Forrester website should readers desire additional information on the Bongará Zinc Mine and Charlotte Bongará Project.
Zinc One will also control the Azulcolcha West zinc prospect located in central Peru as part of the property portfolio. Over 8,000m of drilling has been completed on this project, with several additional targets. Given the recent closure of some large zinc mines, the slow development of new zinc mines, and the rising zinc price, this is an attractive package of zinc assets.
The opportunity is for immediate exposure to the zinc space through the Bongará Zinc Mine as well as Charlotte Bongará Project and Azulcocha West, which provides Zinc One with an excellent development project and a pipeline of exploration projects, all of which are located in a safe jurisdiction with a mining heritage.
- Resource and Grade
- Historical measured and indicated resource totaling 1,007,796 tonnes at 21.61% Zinc and historical inferred resource of 209, 018 at 21.18% Zinc as set out below.
- Mining History
- Previous operator mined at an average rate of 358 tonnes per day for a total of 25,000 tonnes (55.1 million pounds) of Zinc in 2007 and 2008.
- Exploration Upside
- Over 8,000 meters of drilling including results of 29.5% Zn across 15.5 meters, 26.1% Zn across 12.5 meters, 29.7% Zn across 11.5 meter.
- Amenable to straightforward processing techniques.
- Peru is a mining friendly jurisdiction with an extensive history of production.
- Good road access, new hydro dam under construction.
- Community Support
- Zinc One will continue to enhance strong community relations established by Forrester.
For further information on Forrester Metals and technical reports on the projects please visit their website at http://www.venaresources.com/en/investors/press-releases/2016-news/970-forrester-metals-inc-formerly-vena-resources-inc-files-national-instrument-43-101-technical-report-on-bongara-zinc-project
The technical content of this summary has been reviewed and approved by Greg Crowe, a director of Zinc One, P. Geo., a qualified person as defined by National Instrument 43-101.
Cautionary Statement on Forward-Looking Statements
Information set forth in this summary contains forward-looking statements that are based on assumptions as of the date of this summary. These statements reflect management’s current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. Zinc One cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond their respective control. Such factors include, among other things: risks and uncertainties relating to each of Zinc One’s limited operating history, ability to complete the proposed transaction (including obtaining all necessary shareholder and regulatory approvals), ability to close the announced private placement financing and the need to comply with environmental and governmental regulations. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward looking information. Except as required under applicable securities legislation, Zinc One undertakes no obligation to publicly update or revise forward-looking information.
Cautionary Statement on Historical Resource Estimate
The historical resource estimate was prepared by the previous operator, Corianta S.A. in an internal report dated June 13, 2011 on the Bongará Zinc Mine. The historical resource estimate used “measure resources”, “indicated resources” and “inferred resources”, which are categories set out in NI 43-101. Zinc One considers these categories relevant as it represents the Zinc One’s main target for exploration and development work on the Bongará Zinc Mine. Zinc One is confirming the reliability of the historical resource estimate and the information supporting the historical resource estimate. The qualified person has not done sufficient work to classify the historical estimate as a current mineral resource therefore Zinc One is treating these historical estimates as relevant but not current mineral resources.