Vancouver As part of its effort to calculate a resource estimate for the Lik property in northwestern Alaska, Zazu Metals (ZAZ-T) released another ten holes from its 2008, 58-hole, drill program showing strong lead, zinc and silver grades.
Highlights from the drilling campaign include: 27 metres in hole 159 grading 2.75% lead, 8.73% zinc and 88.53 grams silver per tonne starting 30 metres downhole, 14 metres in hole 165 grading 3.04% lead, 9.24% zinc and 71.96 grams silver starting 19 metres downhole and 25 metres in hole 171 grading 5.54% lead, 16.3% zinc and 102 grams silver starting 25.91 metres downhole.
Drilling to date has produced more or less similar grades to those used in historical resource estimates for the property. Divided into two mineralized areas, Lik South and Lik North, in 1985 Noranda pegged Lik South at around 11 million tonnes grading 3.42% lead and 10.51% zinc and Lik North at about 5 million tonnes grading 3.5% lead, 10.59% zinc and 53 grams silver.
But, despite going as far as the feasibility stage in the early eighties, Lik never saw any physical mine development.
Zazu hopes to change that. In a joint venture with Teck (TCK.B-T, TCK-N) Zazu bought a 50% stake in the property from GCO Minerals for US$20 million in 2007, with Teck in control of the other 50%. The joint venture agreement gives Zazu the right to up its position to 80% if by 2018 it spends US$25 million on work at the property (or US$40 million adjusted for inflation).
In that case Teck also has the option to convert its 20% stake into a 2% net smelter return royalty.
Once the final 29 pending assays come in, Zazu plans on putting out an updated resource estimate and then making that part of scoping and feasibility studies. With around US$6 million in the bank, Zazu says it is sufficiently cashed up for the 2009 exploration season.
On news of the drill results Zazu’s share price gained 1.5 to close at 7. The company has about 31 million shares issued.
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