Zincore Metals Inc.

Zincore Metals Inc.

January 15, 2010 08:00 ET

Zincore Makes Progress on Strategic Plan With Acquisition of Additional Zinc-Lead Properties in Canada and Peru

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 15, 2010) - Zincore Metals Inc. (TSX:ZNC) ("Zincore" or the "Company") announced today that the company has entered into an option agreement with Pembrook Mining Corp. ("Pembrook") to earn a 100% interest in Pembrook's Cariboo and Sajapampa zinc-lead (Zn-Pb) properties located in Canada and Peru, respectively.

Under the terms of the agreement, Zincore can earn a 100% interest in the properties by incurring exploration expenditures of $875,815 within the first year and issuing five million Zincore shares to Pembrook over a three-year period. Pembrook will retain a 2% NSR on the properties and Zincore will be entitled to buy back one of those two percentage points for CAD$1.5 million at any time, as well as have a pre-emptive right to purchase in the event Pembrook wishes to sell any portion of the royalty. A small portion of the Sajapampa property (800 of 6,000 hectares) is subject to an underlying agreement with Pembrook's wholly owned subsidiary, pursuant to which an additional $350,000 in payments must be made on or before April 2013, and a 2% NSR is payable. The underlying agreement is being assigned to the Company.

Jorge Benavides, President and CEO of Zincore, stated, "The Pembrook deal represents a bold step in the reinvigoration of the "new" Zincore. These are the first acquisitions for the Company in almost three years and they demonstrate that we are now delivering action on our strategy." Mr. Benavides elaborated that this agreement is a solid fit with the Company's new strategy given that "both projects are drill-ready and may host potentially significant zinc assets. The Cariboo project also achieves our goal of diversifying into Canada, one of the best zinc-endowed geographies in the world, while the Sajapampa project adds to our important and promising project portfolio in Peru."

Cariboo Zinc-Lead Property, British Columbia, Canada
The Cariboo Zinc Property consists of 15 claims totaling 4,280 hectares and is easily accessible from the town of Quesnel, 115 kilometres to the northwest, in south central British Columbia. The Property is underlain, amongst other lithologies, by dolomite that hosts widespread Zn-Pb mineralization over a nine by one kilometre area. Chip samples taken by Zincore on the Gunn Zone returned 7.8% Zn over 17 metres including 10.12% over 10 metres and 21.8% Zn over 2.8 metres. Mineralization consists of massive zinc and lead sulphides with minor oxides.

A program of soil sampling and geological mapping to complete coverage of the Property, followed by 2,000 metres of diamond drilling in eight holes, is planned for 2010. The drilling will test those areas showing the best mineralization on surface and will drill across stratigraphy, focusing on the dolomite unit where the best zinc in soil and rock values have been observed.

Sajapampa Zinc-Lead Property, Peru
The Sajapampa Property comprises 6,000 hectares, located 200 kilometres southeast of Lima. Mineralization on the Sajapampa property is hosted at surface by what are believed to be shallow volcanic and sedimentary rocks overlying the Jumasha Limestone formation, which is known to host massive carbonate replacement and skarn ore bodies in central Peru. The conceptual targets in the underlying limestone, including zones of skarn-development, carbonate replacement ore bodies and intrusion-related systems, are indicated by the occurrence of widespread structure related mineralization leakage into the upper volcanic-sedimentary sequence. 

Exploration in the overlying volcanic-sedimentary cover completed during the 2007 field season by Pembrook included district wide drainage sampling, scout rock-chip sampling, trench excavation and channel sampling. Mineralization occurs as a variety of related styles and comprises: multiple high-grade Pb-Zn-(Ag-Cu) shear and vein zones which returned values up to 41.1% zinc and 30.0% lead; Carbonate-quartz-garnet alteration halos to the high-grade vein and shear zones which returned values up to 7% zinc and 19.3% lead, and extensive and bedding-conformable replacement manto-style carbonate-mineralization in the volcanic stratigraphy which returned values up to 22.6% zinc and 1.2% lead.

The 2010 exploration program will consist of additional geological mapping and mineralogical sampling to better define the areas of leakage, followed by geophysical surveying. Following these orientation surveys, a drill program will be carried out to test the above conceptual targets, within the Jumasha Limestone. 

Samples from the Cariboo property were sent by the Company to International Plasma Labs in Richmond, BC, Canada. Samples from the Sajapampa property were sent by Pembrook to the ALS Laboratory Group in Lima, Peru, All information in this release has been reviewed and approved for the Company by Vernon Arseneau, P. Geo., a Qualified Person under National Instrument 43-101.

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

Forward-looking Statements It is the current expectation of the Company that it should be able complete this transaction as anticipated, however, there can be no guarantee that this will occur. 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 9, 2009 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.

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