EuroZinc gets

Vancouver — EuroZinc Mining (EZM-V) has inked a deal with Portuguese government-owned Exmin to acquire its 25% interest in the Malhadinha exploration concession. As a result, the Vancouver-listed junior will have complete control of the concession, which is near the Aljustrel zinc-copper deposit.

In return for transferring its interest, Exmin will receive a 1.5% net smelter return royalty (NSR) should the concession be brought into production. The NSR will be paid after EuroZinc earns back its initial capital investment to bring a deposit into production.

Also, EuroZinc will transfer its original 75% interest in the Malhadinha concession, held through a Portuguese subsidiary, into the Aljustrel operating company Pirites Alentejanas (P.A.).

The 77-sq.-km Malhadinha concession hosts the Estacao polymetallic massive sulphide deposit plus numerous gravity anomalies. These anomalies are coincident with stratigraphy similar to the rocks that host the Aljustrel deposits.

Eurozinc now has complete control of the Malhadinha concession, in addition to ownership of the known resources and reserves of the Aljustrel mining lease. Late last year, EuroZinc purchased a controlling interest in P.A. for US$5.4 million.

Proven and probable reserves at the Feitais deposit’s zinc-rich zone are estimated at 12.2 million tonnes grading 5.67% zinc, 0.22% copper and 1.77% lead, plus 64.15 grams silver per tonne. Reserves in the deposit’s copper-rich zone are pegged at 1.6 million tonnes grading 2.16% copper, 0.97% zinc, 0.27% lead and 14.26 grams silver.

Proven and probable reserves at the Moinho deposit stand at 1.6 million tonnes grading 4.48% zinc, 0.54% copper, 1.78% lead and 53.47 grams silver. Resources at Feitais total 18.4 million tonnes of 6.02% zinc and 6.7 million tonnes of 2.12% copper, while resources at Moinho total 5.9 million tonnes of 4.7% zinc and 2.2 million tonnes of 1.93% copper.

The project has an after-tax internal rate of return of 29.4%, assuming a zinc price of US51 per lb.