Yukon Zinc Corporation

Yukon Zinc Corporation

January 07, 2005 12:41 ET

Yukon Zinc Corporation Announces Fall Drilling on Yukon Zinc's Goal Net Property Provides Encouragement


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: YUKON ZINC CORPORATION

TSX VENTURE SYMBOL: YZC

JANUARY 7, 2005 - 12:41 ET

Yukon Zinc Corporation Announces Fall Drilling on
Yukon Zinc's Goal Net Property Provides Encouragement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 7, 2005) - Yukon Zinc
Corporation (TSX VENTURE:YZC) is pleased to announce the results of
drilling on its 100% owned Goal Net Property and follow-up on new
massive sulphide mineralization in the Thunderstruck Zone and a new
mineralization north of Thunderstruck known as the Skyblaze Zone. Four
diamond drill holes totaling 1,034.6 metres were completed on Goal Net
property in fall 2004.

Dr. Harlan Meade states "that the drilling continues to provide
encouragement that mineralizing systems are present on several horizons
and over the entire 10 by 6 kilometre area of the Goal Net property; we
are in the right neighbourhood for a discovery." Additional drilling on
these sulphide intersections will resume as soon as practical in the
spring.

The Thunderstruck zone is in the Goal Net South Area, immediately south
of Goal Net North Area
(http://www.expatriateresources.com/finlaysonDistrict.php#GoalNet).
Thirteen drill holes completed in this zone in 2000 and 2001 intersected
base-precious metals mineralization. Drilling in late 2004 tested the
Thunderstruck Zone with three widely spaced drill holes that tested the
continuity of the sulphide mineralization over 550 metres down-dip from
the known surface exposure (see news release of September 8, 2004);
noting that the discovery sample for this mineralized unit assayed 13.4%
zinc, 5.07% lead, 0.34% copper, 40.7 g/t silver and 0.04 g/t gold with
low selenium contents over a thickness of 0.30 meters.

The fall drilling has confirmed that the Thunderstruck zone is a
continuous sheet of thin massive sulphide mineralization that remains
open in all directions. The grade of the sulphide mineralization from
the 2004 drill holes confirms the zinc, lead, and silver character of
the surface massive sulphide discovery in the Thunderstruck zone (see
Table 1 below). Drill holes GN04-14, 15 and 16 were 110, 210 and 550
metres down dip of the surface discovery.

Winter weather conditions precluded drilling the western extension of
this target, and the follow-up to the west is not possible until the
late spring of 2005. However it is important to note that continuity of
grade and style of mineralization was confirmed over 225 meters along
strike on surface. At the western end of the know extent of the massive
sulphide mineralization on surface, the mineralization disappears
beneath thick overburden; however, a vegetation kill zone located 400
metres further west suggests continuity over that distance.

The Skyblaze target, in the Goal Net North Area, was the second target
evaluated in the fall 2004 drilling and occurs 1.25 kilometres north of
GN01-05, where 16m of greater than 1% zinc was intersected and 2.7
kilometres south of GN00-02 that intersected 0.73 meters of semi-massive
sulphide mineralization grading 3.0% zinc, 1.85% lead, 0.14% copper, 63
gpt silver and 0.2 gpt gold. Skyblaze is 4.3 kilometres north of the
Thunderstruck zone. These results reveal a large depositional basin
hosting numerous sulphide occurrences that are coeval and time
stratigraphic equivalents of both Kudz Ze Kayah and GP4F deposits.

Drill hole GN04-17 intersected sulphide mineralization on three horizons
within the stratigraphic column known to host Kudz Ze Kayah and GP4F
deposits further to the north, as well as the recently discovered
Thunderstruck zone. Assays are still pending for this drill hole and
will be released upon receipt from the assay laboratory. The first
interval was composed of semi-massive to massive sulphide mineralization
from 213.50 to 216.84m (3.34m) hosted within a metamorphosed banded iron
formation containing 60 to 65% pyrite and up to 5% magnetite crystals.
From 213.50 to 214.20m the intercept is dominantly altered
chlorite-sericite-quartz schist with massive sulphide to stringer style
pyrite (30 to 35%) with vuggy quartz veins, hematite.

The second mineralized interval is composed of 3% pyrite, 1% sphalerite,
and 1% pyrrhotite from 266.10 to 273.40m (7.30m). The third interval
from 314.80 to 315.80m (1.00m). intercepted 15 to 20% pyrite and
pyrrhotite. It should be noted that the drill rig reached a maximum
depth penetration and remained in favourable felsic volcaniclastic
rocks. Additional drilling is planned for late spring and summer 2005 to
fully evaluate the Kudz Ze Kayah stratigraphy on the Skyblaze Zone.
Assays are pending for the drill hole GN04-17 and will be released upon
receipt from the laboratory and the assay results have passed quality
assurance and quality control protocols.

Fisher Zone Drilling

The company also drilled two holes on the Fisher Ridge following up on
the Fisher Zone discovered in 1995 by Westmin Resources Ltd. that is
approximately 8.1 kilometres northwest of the Wolverine deposit within
the same favourable stratigraphy. Drill hole WV95-06 intersected 2.2 m
of massive sulphide with an average grade of 2.8% Zn, 1.4% Pb, 0.12% Cu,
62 g/t Ag, and 0.14 g/t Au. Results from this drilling are being
compiled and processed with assay results pending.

Qualified Person

The results of the 2004 regional exploration programs have been
reviewed, verified and compiled by qualified person, Jason K. Dunning,
P. Geo., for the purpose of National Instrument 43-101, which outlines
standards of disclosure for mineral projects.

The regional exploration technical information is reported under the
following sampling program. Under this program, samples shipped to ALS
Chemex Laboratories (ISO 9002 certified) in Vancouver, British Columbia
for analysis. In-house laboratory duplicates, standards and blanks are
being used for quality control and quality assurance.

Yukon Zinc Corporation is the successor to Expatriate Resources Ltd. and
is focused on the development of the Wolverine deposit as the Yukon's
next significant zinc-silver mine and the exploration of the Finlayson
District as Canada's newest Volcanogenic Massive Sulphide District.

This press release may contain forward-looking statements based on
assumptions and judgements of management regarding future events or
results that may prove to be inaccurate as a result of failure to
complete the proposed financing, failure to obtain necessary regulatory
or shareholder approvals, exploration and other risk factors beyond its
control and actual results may differ materially from the expected
results.



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Table 1: Drill Hole Results From Drilling on Thunderstruck Zone

Sample Interval
(metres) Rock Au Ag Cu % Pb % Zn % Se
Type (ppm) (ppm) (ppm)
GN04-14 Less Less
78.30-79.10 HW Than 0.005 1.30 0.01 0.01 0.17 Than 2
Less
79.10-79.20 Sulphide 0.144 48.6 0.47 5.47 13.65 Than 2
GN04-15 Less
126.41-126.71 Sulphide 0.048 53.9 0.52 3.92 11.90 Than 2
GN04-16
Less Less
253.33-253.85 HW Than 0.005 3.80 0.02 0.06 2.71 Than 2
Less Less
253.85-254.22 HW Than 0.005 2.40 trace 0.04 5.32 Than 2
340.46-340.58 Sulphide 0.038 59.90 0.28 2.31 10.90 4
340.58-341.58 FW 0.018 0.09 0.11 0.03 1.24 10
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HW = Hanging Wall Rocks
FW = Footwall Rocks
Note that 1 ppm is equivalent to 1 gram/tonne
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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Yukon Zinc Corporation
    Dr. Harlan Meade
    President and CEO
    (604) 682-5474 or 1-877-682-5474
    (604) 682-5404 (FAX)
    or
    Yukon Zinc Corporation
    Brian Soregaroli
    Manager Investor Communications
    (604) 682-5474 or 1-877-682-5474
    (604) 682-5404 (FAX)
    E-mail: info@expatriateresources.com
    Website: www.yukonzinc.com
    THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    RESPONSIBILITY FOR THE ADEQUACY OF THIS NEWS RELEASE.