With new geophysical data in-hand and the Feitais zinc deposit still open to expansion,
The junior is targeting a relatively shallow portion of the Feitais deposit, which remains open.
Following this effort, EuroZinc will drill-test two gravity geophysical anomalies over the Estacao prospect in a program spanning 1,500 metres. It will then test select targets among 23 gravity geophysical anomalies on the surrounding Malhadinha property.
The Vancouver-based company is working on a final feasibility study aimed at reviving Aljustrel. The study was expected by early April.
The revived operation would treat 1.5 million tonnes of zinc-rich ore annually. Capital costs are estimated at US$40-50 million, though this amount could be reduced by European grants.
The study is examining the possibility of mining high-grade zinc and copper zones in the Feitais and Moinho deposits.
The latest resource estimates, calculated by Steffan Robertson & Kirsten, are based on data from 342 diamond drill holes and 964 underground channel samples. The two deposits host a total resource (in all categories) of 141.3 million tonnes grading 2.79% zinc, 0.97% lead and 0.51% copper, plus 35 grams silver and 0.6 gram gold per tonne, at a zero cutoff grade. Both remain open downdip and down-plunge.
The zinc zone boasts a resource (in all categories) of 60.1 million tonnes grading 4.41% zinc, 0.31% copper, 1.45% lead, 49.67 grams silver and 0.69 gram gold, based on a 3% zinc cutoff. At a 4.5% cutoff, the total falls to 20.26 million tonnes of 5.9% zinc, 0.26% copper, 1.89% lead, 65.08 grams silver and 0.76 gram gold.
The copper zone totals 9.7 million tonnes of 1.03% zinc, 2.07% copper, 0.32% lead, 15.33 grams silver and 0.37 gram gold at a 1.5% cutoff.
Late in 1999, the company noted that more than 1,000 tonnes had been treated at an on-site pilot plant. Zinc recoveries of 82-84% were obtained from a zinc concentrate containing 48-50% zinc. Lead recoveries of 58-60% were obtained with a lead concentrate grade of 49-51%. Silver recovery to the lead concentrate is projected to be 36-38%. The feasibility study is expected to have more precise numbers.
Aljustrel operated for several years in the early 1990s. However, low recoveries (about 40% for zinc) and inefficient mining methods, combined with low metal prices, forced its closure. The existing 3,500-tonne-per-day mill and related facilities have been kept in good condition. The assets acquired by EuroZinc include a deep-water port.
EuroZinc holds a 75% interest in the project, with the remainder held by a state-owned enterprise.
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