Canadian Zinc Corporation (TSE:CZN) today has reported positive results of a research programme on developing a central milling facility with Minco plc ’s (LON:MIO) to process multiple base metal deposits in Newfoundland, Canada.
The study, conducted with Minco’s subsidiary Buchans Minerals Corp, showed that copper, lead, zinc, silver and gold deposits can be processed using a common central processing facility.
The companies have joined forces to create one processing site as they both have deposits near each other in Newfoundland but most are too small to warrant several operations.
The deposits are located in the past-producing Buchans and Duck Pond mines in central Newfoundland.
Included in the study were deposits at Bunchans’ Bobbys Pond, Daniels Pond and Lundberg. Canadian Zinc’s Lemarchant and Boomerang-Domino deposits were also a key focus of the study.
Lundberg is the largest and most advanced property in terms of resource definition, mine, metallurgical testing and economic studies completed to date.
“We are very satisfied and encouraged with the results of the research program”, stated John Kearney, Chairman and Chief Executive of Canadian Zinc.
“From the important metallurgical standpoint, demonstrating that these five different deposits can be processed on a common flotation flowsheet is a key step forward in evaluating the viability of centralised milling as a development opportunity for these projects.”
Canadian Zinc said it was recommended that further review of the satellite deposits should be undertaken to examine the potential to increase minable resource size, run of mine ore grades and mine production rates. Alternative cost effective mining methods will also be evaluated.
Story by ProactiveInvestors