Zincore Metals Inc.

Zincore Metals Inc.

June 10, 2010 12:37 ET

Zincore Signs Agreement to Add to Accha Zinc Oxide District Area Prospects

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 10, 2010) - Zincore Metals Inc. (TSX:ZNC)(BVLAC:ZNC) ("Zincore" or the "Company") reports that it has entered into an option agreement with a subsidiary of Hochschild Mining plc ("Hochschild") to earn a 100% interest in the Gema Properties, which are located near the Yanque Project at Zincore's Accha Zinc Oxide District in southern Peru.

Zincore President and CEO, Jorge Benavides, commented, "We are pleased to add to the potential of the Accha Zinc Oxide District. The initial evidence, and this is forward looking information, indicates that Gema may host good quality zinc and lead assets. Given that we are pursuing a district strategy with a single processing facility fed by multiple deposits, any incremental resource additions would be accretive to the District's economics."

Under the terms of the agreement, Zincore can acquire a 100% interest in Gema within eight years under the following conditions:

  • Preparing a Scoping Study within four years, a Pre-Feasibility Study within six years and a Feasibility Study within eight years
  • Making total investments of C$850,000 in the property within the first four years

Upon completion of earning its 100% interest in the Gema Properties, Zincore will grant Hochschild a 1.5% net smelter return royalty on the production of base metals. In the event that the Scoping Study determines that precious metals found on the property exceed 65% of the total value of the deposit, Hochschild will have the right to exercise a one-time option to "back in" to the project for a 60% interest (at which point Zincore would vest a 40% interest), by paying Zincore three times the costs of the expenditures incurred to produce the Scoping Study and assuming the obligations to produce a Pre-Feasibility and Feasibility study within the same periods that had applied to Zincore. Should Hochschild decide not to exercise this option, Zincore will vest a 60% interest following completion of the Scoping Study and continue to fulfill the criteria for the 100% interest.

The Gema Properties are located adjacent to Zincore's Yanque Project with the main Gema prospect located nine kilometres northwest of Yanque. As previously reported in a news release on March 3, 2008, Yanque is a near surface zinc oxide deposit at the south end of Zincore's 100%-owned, Accha Zinc Oxide District. At a 4.5% combined (zinc plus lead) cut-off grade, Inferred Mineral Resources total 10.3 million tonnes grading 5.3% zinc and 5.3% lead for 1.2 billion pounds of contained zinc and an additional 1.2 billion pounds of contained lead. Gema is hosted in the same sedimentary units of oxidized limestones as Yanque, with mineralized gossans that outcrop sporadically. There is no evidence of previous exploration other than small pits by artisanal miners. Zincore's 2010 exploration program will consist of detailed mapping and trenching to better define the continuity and grades of the mineralized gossans. To view a map showing the location of the Gema Properties in relation to the Accha Zinc Oxide District, please visit the following URL:

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 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 12, 2010 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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