Zincore Metals Inc.

Zincore Metals Inc.

December 06, 2007 18:50 ET

Zincore Reports Mineral Resource Estimates for Its Accha Deposit-Indicated Resources Total 5.1 Million Tonnes at 8.2% Zinc

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 6, 2007) - Zincore Metals Inc. (TSX:ZNC) ("Zincore" or "the Company") announces the results of an independent mineral resource estimate completed on the Accha deposit, a near surface zinc oxide deposit that forms part of Zincore's 100%-owned Accha-Yanque Project in southern Peru. At 2.0% zinc cut-off, indicated mineral resources total 5.1 million tonnes grading 8.15% zinc and 0.9% lead for 911 million pounds of contained zinc and 97 million pounds of contained lead. In addition, inferred mineral resources total 1.4 million tonnes grading 5.9% zinc and 0.7% lead for 186 million pounds of contained zinc and 21 million pounds of contained lead.

Timo Jauristo, President and CEO, commented: "This mineral resource estimate validates Accha as a significant high-grade, near-surface zinc deposit. In a short time Zincore has made two important advancements on Accha - we developed a successful concentration process to produce a shippable oxide concentrate and we have defined significant high-grade mineral resources. These provide the foundation for the pre-feasibility work on a standalone Accha project targeting production rates of 35,000 to 40,000 tonnes of zinc in concentrate annually."

This initial National Instrument 43-101 ("NI 43-101") compliant Accha mineral resource estimate was completed by Pincock Allen & Holt ("PAH") based on the results of 62 diamond holes drilled by Zincore, 60 historical drill holes and 7 trenches. The Accha deposit consists of zinc-lead oxide type mineralization hosted in laminated limestones. The deposit has been traced for 750 metres along strike and has been drilled from surface where it outcrops to a depth of approximately 450 metres at the western end of the resources. Zincore is currently conducting additional surface exploration work and mapping of the Accha deposit area in advance of determining the next phase of infill and exploration drilling that is anticipated to commence in early- to mid-2008. The deposit remains open at depth in certain areas and to the west. Exploration of the northern limb of the anticline was restricted by road and drill site development. Further drilling of the northern limb will also take place during the next drill campaign. In addition, the Titiminas west zone, which is 2.2 kilometres west of the main deposit, will be drill tested in 2008.

Zincore anticipates the development of Accha will include an open pit mining operation through the eastern and central portion of the deposit and an underground mining operation to the west and at depth. With the completion of this initial mineral resource estimate, PAH has commenced mine design for the pre-feasibility studies.

Mr. Jauristo stated, "Accha is an exciting stand-alone development opportunity, but significant additional opportunities exist in the rest of the belt. In parallel to our pre-feasibility work on Accha we will continue our strategy of defining and developing a multi-deposit zinc belt that runs from Accha through to Yanque feeding a zinc SXEW circuit."

In addition to its work at Accha, Zincore is exploring the Yanque deposit 30 kilometres south of Accha and has recently begun work on the 45,000 hectares of concessions the Company controls around the two deposits. A number of zinc and lead oxide showings have been identified on the concessions and work is being conducted to prioritize for exploration and drill testing.

A summary of the mineral resource estimates at various cut-off grades is tabulated below. An Accha deposit plan and sections are available on Zincore's website at www.zincoremetals.com.

Accha Deposit Mineral Resources at Various Cut-off Grades
Indicated Mineral Resources
Cut-off Zinc Lead Contained Contained
grade Tonnes (%) (%) Zinc (M lbs) Lead (M lbs)
1.0% 8,351,725 5.47 0.68 1,007 125
2.0% 5,067,986 8.15 0.87 911 97
3.0% 4,513,991 8.85 0.92 881 92
4.0% 3,634,550 10.14 1.02 812 82
5.0% 2,574,876 12.45 1.13 707 64
Inferred Mineral Resources
Cut-off Zinc Lead Contained Contained
grade Tonnes (%) (%) Zinc (M lbs) Lead (M lbs)
1.0% 2,579,428 3.81 0.52 217 30
2.0% 1,428,674 5.92 0.66 186 21
3.0% 1,265,099 6.33 0.71 177 20
4.0% 979,433 7.16 0.73 155 16
5.0% 561,003 9.09 0.84 112 10
1. All mineral resources have been calculated in accordance with the
standards of the CIM Definition Standards on Mineral Resources and
Mineral Reserves, as required by NI 43-101.
2. Mineral resources that are not mineral reserves do not have
demonstrated economic viability. The estimate of mineral resources may
be materially affected by environmental, permitting, legal, title,
taxation, sociopolitical or other relevant issues.
3. Inferred mineral resources are that part of a mineral resource for
which quantity and grade can be estimated on the basis of geological
evidence and limited sampling and reasonably assumed. It is uncertain
if further exploration will result in upgrading them to an indicated or
measured mineral resource.
4. Cut-off grades are based on zinc values only. Cut-off grades applicable
to the open pit and underground portions of the mineral resources will
be assessed during the pre-feasibility study.
5. Density utilized in the mineral resource estimates was 2.5 tonnes per
cubic metre (t/m3) of ore.
6. Contained zinc and lead represent estimated metal contained in the
ground and have not been adjusted for metallurgical or other recovery

The mineral resource estimate was prepared by PAH under the direction of Mr. Aaron McMahon, Geologist of PAH, a professional geologist and an independent Qualified Person as defined by National Instrument 43-101. A technical report detailing the mineral resource estimate will be filed on SEDAR at www.sedar.com within 45 days. Mr. McMahon has reviewed 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 ALS Peru Laboratories facility in Lima. All samples for the resource drill program are digested using a three acid digestion and analyzed by two packages. Zinc and lead are determined by Atomic Absorption and if the results exceed 30% they are re-assayed by volumetric methods. All samples are also assayed by ICP for 25 elements (also using the three acid digestion for complete dissolution).

The Company submits its own standards and blanks as a measure of the accuracy of the analysis. All pulps and coarse rejects are being recovered and stored. A number of samples used in the resource calculation have been re-assayed at a second laboratory using the same analytical techniques described above. Both a re-assay of the pulp and of a new pulp prepared from the coarse reject will be used.

About Zincore

Zincore's strategy is to become a leading, low-cost zinc producer with the immediate objective of advancing its 100%-owned Accha-Yanque property toward a development decision through a disciplined process of exploration, drilling and resource definition, and technical studies. Zincore holds a portfolio of other zinc exploration properties in southern Peru and intends to pursue additional zinc opportunities elsewhere in Latin America.

About the Accha-Yanque Project

The Accha-Yanque property consists of 56 concessions over a 30-kilometre distance in southern Peru. At the north end of the property is the Accha deposit and at the south end is the Yanque deposit. A number of zinc prospects with limited prior exploration occur between these two deposits. Zincore has completed 62 holes totaling 14,478 metres of diamond drilling at Accha and is currently completing an infill and exploration drilling program at Yanque. Pre-feasibility level engineering work is progressing on both deposits.

In 2006, based on the historical drilling, an NI 43-101 compliant inferred mineral resource was calculated at Yanque of approximately 6.6 million tonnes grading 5.3% zinc and 3.5% lead.

Forward-looking Statements

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 26, 2007 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.

Cautionary Note Regarding Yanque Mineral Resource Estimate

For details on the Yanque current mineral resource estimate, see Zincore's prospectus relating to its IPO dated October 26, 2006, which was filed with Canadian securities regulatory authorities and is available on SEDAR (www.sedar.com).

Information Concerning Mineral Resource Estimates

This news release uses the terms "indicated resources" and "inferred resources". Zincore advises investors that although these terms are required and recognized by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects), the U.S. Securities and Exchange Commission does not recognize them. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. In addition, "inferred resources" have a great amount of uncertainty as to their existence and economic feasibility. It cannot be assumed that any part of an inferred mineral resource will be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for preliminary assessments as defined under NI 43-101.

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