Zincore Metals Inc.

Zincore Metals Inc.

July 05, 2011 08:45 ET

Zincore Progresses on Pre-Feasibility with More Good Assays from Yanque Definition Drilling

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 5, 2011) - Zincore Metals Inc. (TSX:ZNC)(BVLAC:ZNC) ("Zincore" or the "Company") announces the results from ten diamond drill holes of definition drilling at its Yanque deposit, at the Company's 100%-owned, Accha Zinc Oxide District Project in southern Peru.

Zincore CEO and President, Jorge Benavides, commented, "With each new set of drill results we are making good progress towards Pre-Feasibility for our Accha Zinc Oxide District Project. We are particularly encouraged by the 19.98% Zn Eq* over 9.0 metres in hole YA-86 as it is located near holes YA-4, 12, and 80 where we also intersected very high grades of zinc mineralization. This is critical information as one of our main goals for this program is to define the higher grade zones which we may selectively extract in the early years of a mine plan to improve project economics. We also continue to be encouraged that such a high percentage of mineralization occurs at or near surface indicating that Yanque may be amenable to development as an open pit operation. In addition, three out of four sets of Yanque drill results have now intersected good grades of silver over mineable widths and silver credits could have a definite impact on the economics of the Accha Zinc Oxide District Project."**

Mr. Benavides concluded, "All of this information will be used in the Pre-Feasibility Study (PFS) we are currently undertaking. As some investors are aware,and as evidenced by the recent C$663 million takeover offer by Nyrstar NV for Breakwater Resources, many market participants see the potential for a significant shortage of available zinc supply versus global demand within the next few years. 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 of constrained zinc supply, this could have tremendous ramifications for the value of our Company."

Table 1 – Yanque Project Definition Drilling
Drill Hole
Drill Hole Intersection (metres) (1) Zinc
Zn Eq
YA-81 57.7 78.7 21.0 3.54 1.71 5.25 ***
including 58.7 66.7 8.0 5.58 1.55 7.13 ***
YA-82(2) 17.0 51.3 34.3 2.16 3.30 5.46 ***
Including(2) 24.0 36.3 12.3 3.36 5.47 8.83 ***
and 41.3 51.3 10.0 1.84 3.25 5.09 ***
YA-83 17.0 28.0 11.0 0.55 3.01 3.56 ***
and 32.0 38.0 6.0 1.85 1.90 3.75 ***
YA-84 32.4 40.4 8.0 0.20 1.78 1.98 ***
and(3) 58.4 69.1 10.7 1.41 2.03 3.44 ***
and 72.1 93.1 21.0 3.10 2.79 5.89 ***
YA-85 0.0 8.0 8.0 1.37 1.07 2.44 ***
and 26.0 37.5 11.5 0.56 3.64 4.20 19.87
YA-86 51.2 60.2 9.0 13.63 6.35 19.98 10.73
YA-87 10.0 20.0 10.0 1.55 1.66 3.21 ***
and 26.0 33.5 7.5 3.96 5.00 8.96 ***
YA-88 45.2 57.2 12.0 2.24 0.91 3.15 ***
YA-89 12.8 44.8 32.0 2.15 1.90 4.05 ***
and 49.8 60.8 11.0 1.89 4.55 4.55 ***
YA-90 ***
1. Core Widths
2. Lost drill core between 30.9 and 32.3 metres
3. Lost drill core between 64.0 and 64.6 metres
(*) Figures are expressed as zinc equivalents using a ratio of 1:1 lead to zinc and do not include any potential silver credits. Metallurgical recoveries and net refinery returns are assumed to be 100%.
(***) No significant values

These 10 holes represent 1,354 metres of drilling. The Company has now completed 5,107 metres of a planned 10,000 metre drill program intended to upgrade known Inferred Resources to Indicated. It is expected that the drilling will better define the high grade portions of the Yanque ore body. Given that a number of holes have intersected good grades and widths of zinc and lead mineralization at the edges of the known resource, it is clear that the Yanque deposit is open in a number of directions and the resource is expected to grow in size.**

After the drill program is completed, Zincore will generate a new model of the deposit and issue a new 43-101 Technical Report. The Company had good success with a similar in-fill drilling program at its Accha deposit, located 30 kilometres to the north. Zincore hopes to gain similar information about Yanque and use this intelligence to help develop a mine plan where a single facility could process zinc ores from both Yanque and Accha, as well as nine other 100% owned District prospects yet to be tested. Being able to selectively mine the higher grades of ore in the early years of a mine plan would significantly enhance the economics of the Accha Zinc Oxide District deposits.

(*) Figures are expressed as zinc equivalents using a ratio of 1:1 lead to zinc and do not include any potential silver credits. Metallurgical recoveries and net refinery returns are assumed to be 100%.

(**) Please see our news releases dated March 23, May 19 and June 21, 2011.

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.

Quality Control

Zincore has implemented a quality control program to ensure best practice in litho geochemical sampling and analysis of rock chips, trench, tunnel and drill core samples.

All drill core samples (approximately one metre, half-core composites) are shipped in security sealed bags via a private trucking company directly to the Acme Laboratories facility in Lima. All samples for the resource drill program are analyzed using two techniques: zinc and lead grades are determined by a four acid digestion and AAS finish, and if the results exceed 10% they are re-assayed by volumetric methods. In addition, all samples are assayed by ICP-ES for 36 elements including silver and if values exceed 200 ppm of silver, samples are re-assayed by an ore grade method with AAS finish.

The Company submits its own standards and blanks as a measure of the accuracy of the analysis. All pulps and coarse rejects are recovered and stored. Prior to a new resource estimate, 10% of all samples used in the resource calculation will be re-assayed at a second laboratory using the same analytical techniques described above. This includes re-assaying of pulps from the coarse rejects.

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.

Forward-looking Statements: Statements in this release that are forward-looking, in particular, regarding the mine potential of the Yanque deposit, 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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