2016-05-24 06:43 ET - News Release
Mr. Bruce Durham reports
NEVADA ZINC COMMENCES DRILLING AT LONE MOUNTAIN
Nevada Zinc Corp. has commenced 2016 drilling operations on its Lone Mountain project near Eureka, Nev. This will be the company's first drill program on its most recent property acquisition in the area, the historic zinc mine known as the Mountain View mine.
President and chief executive officer Bruce Durham commented: "We have seen zinc inventories decline 30 per cent on the London Metal Exchange in the last six months and we have seen the zinc price increase by 25 per cent in that corresponding time period. Although the zinc fundamentals are strong, very few junior companies are actively exploring for zinc, and, in tier one jurisdictions like the Western United States, only companies like ourselves and Arizona Mining are actively drilling. We are initially targeting very shallow zinc mineralization in proximity to areas where the historic mining operations took place at the Mountain View mine. Shallow drilling in the 1940s also intersected zinc mineralization in a number of areas near the mine and we will be drill testing those areas as well."
- The drilling program has started;
- 20 or more reverse circulation drill holes will be completed on the Mountain View mine property;
- Drilling to be completed in the vicinity of the historic West extension shaft in an area where historic drill hole 36 intersected up to 31 feet grading 7.4 per cent zinc;
- Drilling to be completed in the vicinity of the MIA shaft and historic drill hole 30 that intersected an interval of 30 feet grading 7.02 per cent zinc;
- Drilling to be completed in the vicinity of a small historic surface glory hole or pit and a number of historic drill holes that intersected near-surface zinc mineralization;
- Drilling to be completed near the eastern boundary of the Mountain View mine property where historic drill hole 20 intersected up to 17 feet grading 8.8 per cent zinc;
- All zinc mineralization intersected in historic drilling and mining on the Mountain View mine property was less than 200 feet below surface;
- Drill records for the historic holes are limited to only a summary of assay results, some cross-sections and drill hole location maps. All data in respect of the historic drill holes are considered to be historic and should not be relied upon. All areas will require redrilling with modern recovery methods;
- The results of the current drill program plus the previous 36 holes from the company's phase one, two and three drill programs will continue help develop the database and geological understanding of the Lone Mountain project as the company builds toward being in a position to carry out further metallurgical and National Instrument 43-101 resource work.
Zinc is one of the most widely used commodities in the world.
The average automobile consumes 37 pounds of zinc.
Zinc is a critical element for growth in children and general body health.
Zinc usage in fertilizer is a rapidly growing deployment of zinc.
The International Zinc Association website is a good source of information on zinc and its varied uses.
Teck provided a review of the zinc market in its shareholder day presentation (March 30, 2016) available on the company's website. The presentation clearly depicts a significant looming deficit for years going forward due to continued growing demand, mine closures and lack of new investment.
The current global weighted average mine grade for zinc operations both open pit and underground is now below 5 per cent zinc (Teck presentation).
Additional zinc information is available on the Nevada Zinc website.
Mr. Durham, PGeo, is a qualified person as that term is defined by National Instrument 43-101 on behalf of the company, and has approved the scientific and technical content contained in this press release.
The company is also pleased to announce that it has retained the services of Integral Wealth Securities Ltd. to provide strategic advice and support with regard to the company's continuing capital markets activities. Market-making activities will be conducted in compliance with Investment Industry Regulatory Organization of Canada's universal market integrity rules and policies (2010), and other relevant policies, so that trading orders in the company's shares are made to manage share price volatility and imbalances of orders to improve trading liquidity of the company's shares on the TSX Venture Exchange. The service contract, that commenced May 18, 2016, has an initial term of six months and can be terminated thereafter by either party on 30 days written notice and includes a monthly retainer of $5,000 per month. The company and Integral confirm that capital for the purposes of market-making has not and will not be provided from the company's treasury. Integral has no direct or indirect interest in the company or its securities.
The Lone Mountain project
While the company maintains its Yukon gold properties and continues to advance them, the focus of the company is the exploration and advancement of the 100-per-cent-owned Lone Mountain project, comprising 218 claims covering approximately 4,000 acres.
The project is located in east-central Nevada and is easily accessible via paved and gravel roads northwesterly from Eureka where all essential services are available. The project now includes the historic zinc mine known as the Mountain View mine.
We seek Safe Harbor.
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