Zinco Mining Corporation
TSX VENTURE : ZIM
FRANKFURT : 61Z

Zinco Mining Corporation

October 03, 2011 13:35 ET

Zinco Acquires Additional Mining Concessions in the Cuale District, Jalisco VMS Project, Mexico

SURREY, BRITISH COLUMBIA--(Marketwire - Oct. 3, 2011) - Zinco Mining Corporation (TSX VENTURE:ZIM) (FRANKFURT:61Z) has acquired 100% of mining concessions San Antoñio Fracción II (T. 219743) and San Antoñio 2 Fracc 1 (T. 219744) from Antoñio Briseño Guerra for $100,000 (U.S.) and 250,000 common shares of the Company. Together, these newly acquired concessions overlap an area of 68.6 hectares centred on Cerro La Descubriadora, a prominent mountain that defines the eastern part of the Cuale VMS mining camp. They are located internal to Zinco's "La Diana" concession, which contains both the silver-rich San Juan deposit 1.4 kilometres southwest of the San Antoñio concessions, and most of San Rafael, a historic gold and silver mine partially overlapped by both La Diana to the south and the San Antoñio 2 Fracc. 1 concession to the north.

The San Antoñio concessions are important to Zinco's ongoing exploration program in the area because they contain several historic gold mines ("Minas de Oro") that could represent the centre of the mineralizing system at Cuale. The Minas de Oro on these concessions include Grandeza, Las Talpas, Caldero, El Rosario and Cataminas, as well as the northern part of San Rafael. Zinco believes that there is additional metal potential along strike and down-dip of these historic mines and workings.

Grandeza mine was the largest of the Minas de Oro with historic production of 756 661 tonnes of ore grading 1.89 g/t Au, 22 g/t Ag, 1.41% Pb, 2.35% Zn and 0.2% Cu. Grandeza was mined from underground by Industrias Peñoles in the mid-1980's. Collectively, there are about 2850 metres of underground workings on six different levels between 2010 metres elevation and 2090 metres elevation at Grandeza, all within a 110 metre long by 70 metre wide area 1.4 kilometres southeast of the Company's Patrocinio Camp.

Las Talpas, also an underground mine, is accessed from a portal 200 metres southeast of Grandeza. The Company has mapped seven levels of workings between 1920 and 2020 metres elevation. The mapping shows that collectively, there are more than 3000 metres of underground development at Talpas, all in an area about 200 metres long by 140 metres wide. In the mine, there are several production stopes that are still full of partially broken ore. Zinco has taken a few rock chip-channel samples with results as follows:

  • Level 2020 (stockwork) sample 26285: 0.5% Zn, 0.1% Pb, 0.4% Cu, 11 g/t Ag, 0.33 g/t Au across 3 m
  • Level 1990 (stope pillar) sample 25831: 34.7% Zn, 26% Pb, 0.4% Cu, 60 g/t Ag, 1.26 g/t Au across 1 m
  • Level 1980 (stope pillar) sample 29954: 3.8% Zn, 2.2% Pb, 0.3% Cu, 25 g/t Ag, 0.23 g/t Au across 10 m
  • Level 1940 (stope pillar) sample 25832: 12.6% Zn, 1.7% Pb, 0.6% Cu, 29 g/t Ag, 0.67 g/t Au across 2 m

The mineralization at Talpas consists of coarsely crystalline dark sphalerite and galena with pyrite, chalcopyrite and minor bornite in markedly silicified, fine-grained, thinly laminated, cherty sedimentary rocks that occur below a thick pile of quartz-porphyritic rhyolite flows. Stratigraphically, this is the same position as Jesus Maria on the western side of Cerro Descubriadora. Bedding appears to be the primary control on mineralization, and most measurements, both from surface and underground, imply that the geological formations strike southeasterly and dip moderately southwest in this area. Southwesterly trending, northwesterly dipping faults might be important syn-mineral feeder structures to the mineralization that could localize higher grade material. Reported past production from Las Talpas was 141,425 tonnes of 1.91% Zn, 0.65% Pb, 0.16% Cu, 24 g/t Ag and 0.3 g/t Au. The reported tonnage is small compared to the size of the underground stopes.

Caldero occurs 140 metres southwest of the Talpas Portal at 2078 m elevation. From underground, the mineralization is accessed from the 1990 metre level of Talpas mine. The tunnel goes 70 metres to the southwest, then follows the Caldero Horizon for 100 metres to the southeast. There are 4 draw points for ore along this tunnel. A sample cut across the very end of the stope contains 16.5% Zn, 7.7% Pb, 0.35% Cu, 42.5 g/t Ag and 1.6 g/t Au across 1.45 m (sample 25828).

El Rosario is 325 metres south of the Talpas portal, and rock dumps outside the mine adits occur at 1980 m elevation and 1920 m elevation. Samples of the rock dumps, collected by the Company prospector, contain metal values as follows:

  • Rosario Upper (25820): 32.3% Zn, 8.6% Pb, 0.2% Cu, 361 g/t Ag and 0.42 g/t Au
  • Rosario Lower (25822): 23.5% Zn, 15.4% Pb, 0.4% Cu, 465 g/t Ag and 0.66 g/t Au
  • Rosario Lower (25821): 45.2% Zn, 3.6% Pb, 0.1% Cu, 209 g/t Ag and 0.21 g/t Au

No geological inspections of the Rosario mines have yet been done by the Company. The silver grades are high compared to samples from Talpas, and this area represents a new priority for Zinco.

Geologically, the reason for the elevated gold content in the Minas del Oro relative to other mines in the Cuale District might be because they are proximal to a syn-mineral intrusion. Based on the 3-D inversion of airborne magnetic data collected by Fugro Airborne in 2006, and interpreted by Trent Pezzot of SJ Geophysics in late 2007, it appears that Cerro La Descubriadora is cored by an area of relatively high magnetic susceptibility that might indicate the presence of an intrusive body. Such an intrusion might represent the "heat pump" responsible for circulating mineralizing fluids in the Cuale VMS District. Spatially, the gold and copper-rich deposits of Cerro La Descubriadora occur close to near-surface "apophyses" of magnetic susceptibility that might define such an intrusion.

Qualified Person

This press Release was reviewed by Michelle Robinson, M.A.Sc., P.Eng., a Director of Zinco Mining Corporation, who acts as Zinco's Qualifed Person as defined by NI 43-101. Geochemical assaying reported in this News Release was completed by Acme Analytical Laboratories according to the procedures described in Zinco's News Release (NR 2011.05) dated 17 August 2011.

Further information about the Jalisco VMS Project can be reviewed on Zinco's website www.zincomining.com

ON BEHALF OF THE BOARD,

David Elgee, PRESIDENT

Certain information regarding the Company including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve risks associated with mining exploration and development, volatility of prices, currency fluctuations, imprecision of resource estimates, environmental and permitting risks, access to labour and services, competition from other companies and ability to access sufficient capital. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.

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Contact Information

  • Zinco Mining Corporation
    David Elgee
    President
    (604) 507-2181
    (604) 507-2187 (FAX)
    www.zincomining.com