Zincore Metals Inc.

Zincore Metals Inc.

March 31, 2011 08:33 ET

Zincore to Confirm Viability of Accha Zinc Oxide District Project as a Mining Operation With Pre-Feasibility Study

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 31, 2011) - Zincore Metals Inc. (TSX:ZNC)(BVLAC:ZNC) ("Zincore" or the "Company") is pleased to announce that it has engaged the Lima, Peru office of AMEC plc ("AMEC") to carry out a Pre-Feasibility Study ("PFS") on the Accha Zinc Oxide District project.

The main objective of the study will be to confirm the technical and economic viability of the Accha Zinc Oxide District project as a mining operation. The general scope of the study will include:

  • A preliminary engineering and design plan, including mining, processing and ancillary facilities and equipment, on-site and off-site infrastructure, transportation and logistics; and
  • A capital and operating cost estimate.

It is expected that the PFS will be completed by the end of 2011.

As part of the PFS, AMEC will also produce a Scoping Study that will be released as a Preliminary Economic Assessment ("PEA"). It is expected that the PEA will be released by mid-2011.

Zincore President and CEO, Jorge Benavides, commented, "This is a very exciting time for Zincore and its investors. We firmly believe that the PFS will confirm the technical and economic viability of the Accha Zinc Oxide District project as a mining operation. In a world where we, and many other market observers, see the potential over the next few years for a significant shortage of available zinc supply versus global demand, this could have tremendous ramifications for the value of our Company."

Mr. Benavides emphasized, "We are not resting on our laurels by viewing the PFS as an end unto itself. At the same time as the PFS is being conducted, we will continue to work on increasing the District project resources. In particular, we will conduct drilling on the northern flank of the Accha deposit, an area which had been unexplored until last December, when six initial exploration holes intersected grades of zinc in excess of 20%*."

AMEC was chosen to conduct the PFS based on a number of factors including their engineering team's high level of experience in zinc refinery design and engineering and their dedicated and significant presence in Peru. Very importantly, AMEC's process team includes key personnel with Waelz kiln process technology experience.

About the Accha Zinc Oxide District

The Accha Zinc Oxide District project is comprised of Zincore's 100%-owned, 50,000 hectare property package in southern Peru, located near Tintaya, Las Bambas, Haquira and Constancia. It has access to excellent infrastructure and currently hosts 960 million pounds of zinc and lead in Measured and Indicated Resources and 2.6 billion pounds of Inferred Resources at its Accha and Yanque deposits. Mineralization has also been identified at nine other District project targets. The Company is pursuing a district strategy with a single pyrometallurgical facility (Waelz kiln) to process ores from all District project deposits and to produce high grade zinc cathode and lead concentrate as final products from an electrowinning facility (to be acquired by Zincore) at a port city in southern Peru. 

About AMEC

AMEC (LSE:AMEC) is a focused supplier of high-value consultancy, engineering and project management services to the world's oil and gas, minerals and metals, clean energy, water and environmental sectors. With annual revenues of almost £3 billion, AMEC designs, delivers and maintains strategic and complex assets for its customers. The company employs some 22,000 people in around 40 countries worldwide.

AMEC's global Mining & Metals business develops some of the most challenging projects in the world. AMEC is recognized for a unique combination of excellent project delivery, industry-leading mining and process expertise, and full project life cycle capability. AMEC is an industry leader in a broad range of commodities from base and precious metals, to diamonds, iron ore, coal, uranium and fertilizers.

Since 1995, AMEC has provided study, design, project management and construction management services to international and domestic mine developers in Peru.

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 both the Toronto and Lima Stock Exchanges under the symbol ZNC. For more information, please see our website at www.zincoremetals.com.

*For more information about the Accha deposit north flank drilling results, please see our news release dated December 9, 2010.

Forward-looking Statements: Statements in this release that are forward-looking, in particular with regards to the potential of the Accha Zinc Oxide District project, 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 18, 2011 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.

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