SOURCE: Zinccorp Resources Inc.

July 09, 2008 13:08 ET

Zinccorp Announces a Major Zinc-Lead-Silver Discovery

VANCOUVER, BC--(Marketwire - July 9, 2008) - Zinccorp Resources Inc. (TSX-V: ZN) is pleased to announce a very promising discovery at its wholly owned Michelle property, located 25 km east of the Dempster Highway in central Yukon.

The highlight result from this discovery is a drill interval that averaged more than 40% combined lead-zinc with 510.7 g/t (14.9 ounces/ton) silver over a 7.94 m (26 ft) true thickness.

The discovery was made by diamond drilling done in 2007, results of which were just received. It consists of fracture- and breccia-hosted, carbonate replacement style mineralization. Zinc, lead and silver are the main metals of interest. The host stratigraphy consists of Cambrian to Devonian age limestones and dolomites that are cut by large faults of uncertain age.

Reconnaissance-scale soil geochemistry and prospecting have identified three main areas of mineralization, two of which are in the western part of the property and one of which is in the eastern part. None of the main targets are fully delineated, but they appear to have both structural and stratigraphic controls. The mineralized zones weather recessively, often forming gullies that are mostly filled with unmineralized talus. The zones are marked by very strong soil geochemical anomalies (i.e. 1000 ppm to 6.26% lead). These anomalies range from 500 to 700 m in length and are open to expansion along strike in both directions. In addition to the main targets, there are a number of secondary targets with good exploration potential.

The diamond drilling was confined to the main target area in the eastern part of the property (Gully Showing). The program consisted of seven holes designed to identify the source of limonitic float boulders found on a steep talus slope. Outcrop is very rare in the area. The first three holes (MCH-07-01 to 03) were aligned subparallel to the dip of the zone and intersected only sparsely mineralized footwall rocks. The next two holes (MCH-07-04 and 05) were also drilled subparallel to the zone and mostly cut weakly fractured and mineralized hanging wall rocks. The last two holes (MCH-07-06 and 07) were drilled directly across the zone and encountered heavily fractured and brecciated rocks that are well mineralized with limonite, smithsonite, cerrusite and galena. The most significant assay intervals are tabulated below.

Hole          From      To    Metres   Silver g/t    Lead %    Zinc %
MCH-07-04     93.57    95.75   2.18        1.1        0.23     10.15
MCH-07-06     35.66    53.95  18.29      309.5        8.87     16.76
including     45.22    53.16   7.94      510.7       17.38     22.72
MCH-07-07     47.85    57.00   9.15        2.1        0.10     12.62
including     49.10    53.95   4.85        2.7        0.17     21.92

The intersected interval in MCH-07-06 is nearly true width. The true widths for intercepts in the other two holes are about 75% of the reported interval lengths. Soil geochemical values in the vicinity of the drill discovery are comparable to, but more localized than, the values marking the highly prospective targets in the western part of the property (Peak and Dynasty showings). Neither of these targets was drilled in 2007 because results were not available until after the crew and drill had left the property.

The Michelle property lies in a belt of Proterozoic and Paleozoic age, platformal carbonate rocks that stretch through northern BC, western NWT, Yukon and Alaska. Carbonate-hosted mineral deposits within this belt include Pine Point, Gayna River, Prairie Creek, Blende and Full Metal Minerals' recently announced discovery at Fortymile.

A crew has just moved back to the Michelle property to begin pad construction in preparation for renewed diamond drilling. The next phase of drilling will continue to delineate the Gully Zone along strike and will begin to explore the Peak, Dynasty and other zones in the western part of the property.

Zinccorp Resources Inc. plans to start a 2500 m diamond drill program within two weeks using funds on hand and proceeds from a proposed $1 million private placement unit offering. The program is already permitted. Pending continued favourable results, an application will be made next winter to build a road to the property. Terrain is gentle and there is only one major stream crossing on the proposed road route.

The analytical results reported in this news release were done at ALS Chemex in North Vancouver, B.C. All soil samples and core samples were analyzed for 34 elements using aqua regia digestion and inductively coupled plasma-atomic emission spectroscopy (ME-ICP41). Samples that exceeded 10,000 ppm lead, 10,000 ppm zinc or 100 g/t silver were re-analyzed using aqua regia digestion with inductively coupled plasma and either atomic emission spectroscopy or atomic absorption spectroscopy (Pb, Zn- or Ag-OG46). Samples that exceeded 30% zinc or 20% lead were determined using wet chemical assay techniques (Pb-VOL70 and Zn-VOL50). One sample that exceeded 1500 g/t silver was re-analyzed using fire assay and gravimetric finish (Ag-GRA21).

The 2007 exploration was conducted by Archer, Cathro & Associates (1981) Limited, under the supervision of W.A. Wengzynowski, P.Eng. Mr. Wengzynowski is the qualified person for this project. He has read this release and has approved its contents.

The Company also announces that it has granted 1,300,000 share purchase options to insiders and 1,775,000 share purchase options to non-insiders, both at an exercise price of $0.15 and expiring in July 2013.

About Zinccorp Resources Inc.

Zinccorp Resources Inc., a member of the Hughes Exploration Group of companies, is a newly formed, tightly held junior mineral exploration company set to commence trading on the TSX Venture Exchange on July 10, 2008, under the symbol "ZN." The company is focused on the discovery of large zinc-rich deposits. It recently acquired 100% interests in four highly prospective properties from Strategic Metals Ltd. All properties are located in Yukon Territory, Canada.

Please visit Zinccorp's web-site to learn more about the Michelle and other exciting Zinccorp projects and sign up to receive upcoming Zinccorp news.

The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • For further information contact:
    Alan Campbell or Kevin Hull
    Investor Relations
    Hughes Exploration Group
    Phone: (604) 685-2222

    711-675 West Hastings Street,
    Vancouver, B.C. V6B 1N2 Canada
    Telephone: (604) 685-2222
    Facsimile: (604) 685-3764