Vancouver — With final results from this year’s drill program in hand,
Highlights from the final batch of results include hole 188, which intersected 4.23 grams gold and 801 grams silver per tonne over 1.3 metres, and hole 189, which returned 3.26 grams gold and 561.46 grams silver over a true thickness of 10 metres.
Both holes also intersected high-grade base metal mineralization, including 1.21% copper, 2.21% lead and 18.81% zinc (hole 188) and 0.63% copper, 2.72% lead, and 11.98% zinc (hole 189) over the same intervals.
The company notes that the results “reinforce the high-grade nature” of the deposit, particularly for valuable precious metals.
A total of 11,712.5 metres in 59 holes were drilled in 2005 to confirm the grade and distribution of mineralization in the deposit.
Yukon Zinc will soon release an updated and upgraded resource estimate for the project that will be used for a bankable feasibility study. Based on a previous estimate, the Wolverine deposit hosts an inferred resource of 6.23 million tonnes grading 12.66% zinc, 1.33% copper, 1.55% lead, 371 grams silver and 1.76 grams gold per tonne. The estimate is not National Instrument 43-101-compliant.
The feasibility study scheduled for completion early next year will include results of dense media separation (DMS) testing to determine its effectiveness as a pre-concentration step to improve head-grades to the conventional mill, and boost recoveries. Initial test work has returned encouraging results. The study will also incorporate results from recent underground test-mining.
In a move to limit share dilution, the company has reached an agreement with Macquarie Bank to arrange a project loan and a hedging program for Wolverine. The company had closed $13 million in flow-through share issues in 2005. Scoping-study evaluations in 2004 put the capital cost of a mine and flotation mill for Wolverine at $127 million.
Yukon Zinc views the Wolverine deposit as a “flagship asset” in the massive sulphide district, where it is now the largest landholder.
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