Zincore Metals Inc.

Zincore Metals Inc.

April 20, 2010 07:30 ET

Zincore Announces Positive Metallurgical Test Results in Processing Accha Zinc Oxide District Ores

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 20, 2010) - Zincore Metals Inc. (TSX:ZNC) ("Zincore" or the "Company") announced today that it has received positive results from lab testing of a pyrometallurgical method to process zinc and lead oxide ores from its Accha and Yanque projects in Peru. All laboratory tests were conducted by Mintek of South Africa under the supervision of our metallurgical consultant Michael Valenta, Pr. Eng. (Intl) of Metallicon Process Consulting.

Zincore President and CEO, Jorge Benavides, stated, "These results are excellent and demonstrate that reductive roasting can be used to achieve high percentage recoveries of zinc and lead from the oxide ores at both our Accha and Yanque projects to produce high purity, high grade zinc and lead oxide concentrate. This information moves our Company closer to realizing its vision of a single processing facility which can treat all of the zinc and lead oxide ores at our Accha Zinc Oxide District. Given the favorable results of these tests, we have started the pilot test scale work on Accha ore and will soon do the same with Yanque ore. This will allow us to better define the economics of this process and advance our goal of monetizing the significant zinc and lead assets in the Accha Zinc Oxide District."

The Accha Zinc Oxide District hosts combined 43-101 inferred and indicated resources of 3.6 billion pounds of zinc and lead at the Accha and Yanque projects.(1) The District also hosts eight other prospective showings which have had limited exploration to date.

Highlights of the Metallurgical Tests

  • A high grade concentrate (>90% zinc oxide) was achieved in the laboratory for the Accha and Yanque ores
  • Extraction of zinc and lead from the Accha ore was 96.6% and 87.6% respectively at 1150 degrees Centigrade over four hours in the laboratory
  • After roasting for four hours at 1050 degrees Centigrade, the Yanque ore yielded extraction of 75.8% zinc and 20% lead
    • Initial evidence indicates that longer roasting times may improve the zinc recovery from Yanque ores
    • Higher temperatures resulted in significant improvements of up to 88% in the extraction of lead from Yanque ores
  • A second stage, involving calcining of the Accha fume product, resulted in significant reduction of fluorine and chlorine from 0.13% and 0.11% to 0.085% and 0.006% respectively
  • Lead extraction in the reductive roast of Yanque ores varied from 20% to 90% and the opportunity exists to produce a lead by-product. This opportunity was not the focus of the preliminary study and must be considered in future lab and pilot plant testing.

Test Work Background
Earlier testing of the Accha District ores focused on producing a flotation concentrate and met with limited success. With the Company's change in leadership in mid-2009, a fresh perspective was brought to the challenge, including experience with a reductive roasting process that was being successfully used to process zinc oxide ores at the Corianta plant in Peru. The Corianta plant is 64% owned by a subsidiary of Inversiones Pacasmayo SA, Zincore's largest shareholder.

With this advantage and direct operational experience available, Zincore set out to test if this same Waelz kiln process could be deployed to process the zinc and lead oxide ores at its properties in the Accha District. Our results to date suggest that this process will be successful.

Recommendations and Conclusions from the Tests
The test work successfully demonstrated the application of reductive roasting as a method to achieve high percentage recovery of zinc from the Accha and Yanque ores. The results warrant proceeding to pilot plant testing to confirm the preliminary findings and better define a number of issues. Specifically:

  • Would longer roasting times improve the zinc extraction from the Yanque ore
  • Would a staged approach with higher temperature roasting of the Yanque ores yield a significantly higher extraction of lead

Pilot plant testing will also generate an operating cost for the Waelz kiln process and produce a bulk product for test work to define the requirements of further downstream refining and processing.

All test work was done at the Mintek research facility in Randburg, South Africa. Mintek is a globally recognized metallurgical research institute with a track record in pyrometallurgical research. In addition, Zincore utilized the consulting services of Michael Valenta Pr. Eng. (Intl) and Metallicon Process Consulting (Pty) Ltd of Hartbeespoort, South Africa, near Randburg. Metallicon is an independent consulting firm that provides specific, technical expertise in the area of mineral processing. Mr. Valenta is a metallurgical engineer and an internationally registered Professional Engineer under the Washington Accord. He has significant experience in laboratory, pilot testing and full-scale refinery metallurgical practice and processes.

Vernon Arseneau, P.Geo., Vice President, Exploration for Zincore has prepared or supervised the preparation of the information contained in this news release and is the Qualified Person as defined under National Instrument 43-101 for this news release.

A summary of the original Mintek report has been prepared by Metallicon Process Consulting and is available on our website at www.zincoremetals.com.

About Zincore
Zincore is a Vancouver-based mineral exploration company focused mainly on zinc and related base metal opportunities in the Americas, namely Peru, Mexico and Canada. The Company's common shares trade on the TSX under the symbol ZNC.

Forward-looking Statements Statements in this release that are forward-looking are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Annual Information Form of Zincore dated March 12, 2010 which is filed with Canadian securities regulatory authorities and available on SEDAR (www.sedar.com). Such information contained herein represents management's best judgment as of the date hereof based on information currently available. Zincore does not assume the obligation to update any forward-looking statements.

(1) For further details on the resources at our Accha and Yanque projects, please see the technical reports dated June 9, 2008 and April 14, 2008 respectively and available at our website (www.zincoremetals.com) or on SEDAR (www.sedar.com).

Information Concerning Mineral Resource Estimates - This news release uses the term "inferred mineral resources". Zincore advises investors that although this term is required and recognized by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects), the U.S. Securities and Exchange Commission does not recognize it. Investors are cautioned not to assume that any part or all of the mineral deposits in this category will ever be converted into reserves. In addition, "inferred mineral resources" have a great amount of uncertainty as to their existence and economic feasibility. It cannot be assumed that any part of an inferred mineral resource will be upgraded to a higher category.

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