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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:
http://www.zincoremetals.com/news/newsImages/gema_peru.gif
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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