The Gnome Zinc Project, owned 100% by AsiaBaseMetals Inc., located in the province of British Columbia, Canada, encompasses approximately 5,868 hectares (12 mineral claims) in the heart of the area that is home to Canada's Zinc deposits and Zinc exploration, within the southern most part (Kechika Trough) of the regionally extensive Paleozoic Selwyn Basin, one of the most prolific sedimentary basins in the world for the occurrence of SEDEX zinc-lead silver and stratiform barite deposits. The Gnome Property property is in the same geological belt, NE of Williston Lake, as the well-known Cirque Deposit, Cardiac Creek Deposit (Akie Property), Elf Deposit and other occurrences in the Kechika Trough geological belt discovered in the heyday of northern B.C., Canada, Pb-An-Ag exploration (late 1970's and early 1980's). The Gnome project is 35 km SE from the Cirque Deposit (Teck & Korea Zinc - Joint Venture) and 15 km SE of the Cardiac Creek Deposit - Akie Project (ZincX) on a NNW-SSE oriented geological trend, in the southern most part (Kechika Trough) of the regionally extensive Paleozoic Selwyn Basin.
Significant Zinc properties in the Gnome Property area:
- Cardiac Creek Deposit - Akie Prpoperty - Now held 100% by ZincX Resources Inc. Indicated resource estimate (at 5% Zinc cut-off grade) of 22.7 million tonnes grading 8.32% zinc (4,162M Lbs), 1.61% lead (804 M Lbs) and 14.1 g/t silver (10.3 M Ozs) and an inferred resource (at a 5% zinc cut-off grade) of 7.5 million tonnes grading 7.04% zinc (1,169 M Lbs) , 1.24% lead (205 M Lbs) and 12.0 g/t silver (2,9 M Ozs) . (Pursuant to a NI-43-101 technical report prepared by Canada Zinc Metals Corp. with an effective date of May 16, 2016). The deposit remains open along strike and at depth. (Source: website – ZincX Resources Corp.) Further, pursuant to a PEA (seeNote 1; below) announced on July 20, 2018 (filed on Sedar on August 2, 2018), ZincX reported the following:
- NPV - Pre-Tax (discounted cat 7%) $649 million ($401 million after tax);
- IRR - Pre-Tax (Internal Rate of Return) - 35% (27% after-tax);
- Payback Period - Pre-Tax - 2.6 years (3.2 years after-tax);
- Mine-Life - the PEA contemplates a 4,000 tonne-per-day underground mine & 3,000 tonne-per-day concentrator with an 18 year mine life;
- Total Mine Production of 25.8 million tonnes, of which 19.7 million tonnes are processed;
- Initial capex (excluding contingeny) estimated at $256.7 million, total of $302.3 million, including $45.7 million in contingency;
- Cardiac Deposit remains open at depth with potential to increase mine life;
- District Potential - Akie & Kechika regional combined offer district-scale potential for new discoveries;
- There is no certainity that the results concluded in the PEA will be realized.
- Cirque Deposit - Now held 100% between Teck Resources Limited ("Teck") and Korea Zinc ("KZ") through a joint ventue (T-KZ JV - 50% each); drilling delineated historical resource estimates for the North Cirque zone and the South Cirque zone. (Source: per historical data - The British Columbia Ministry of Energy and Mines MINFILE - Zinc in British Columbia; British Columbia Geological Survey - Information Circular 2015 - 12, Assessment report 34274, dated November 1, 2013).
- Pie, Cirque East and Yuen Properties - Now held 51% between Teck Resources Limited ("Teck") and Korea Zinc ("KZ") through a joint ventue (T-KZ JV - 50% each) and 49% by ZincX Resources Inc.
Note 1:There can be no assurance that the Company will obtain similar results on the Gnome Property. The PEA is considered preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral resources that are not mineral reserves have not yet demonstrated economic viability. Due to the uncertainty that may be attached to mineral resources, it cannot be assumed that all or any part of a mineral resource will be upgraded to mineral reserves. Therefore, there is no certainty that the results concluded in the PEA will be realized. Mineralization hosted on the Cirque and Cardiac Creek Properties is not indicative of the mineralization hosted on the Company’s Gnome Zinc Project at its current stage of exploration.
Exploration History - in the area:
In December 1992, Curragh Resources, which had previously acquired Cirque, was issued a Mine Development Certificate (approval for construction) by the BC Government for a mine/mill complex with a daily milling rate of 3,500 tonnes. The company estimated that the project would produce about 250,000 tonnes of zinc and lead sulphide concentrates yearly.
Historic drilling delineated historical estimates of the North Cirque zone and South Cirque zone. Development of Cirque did not proceed and the property was subsequently acquired by Teck Corporation (25%), Cominco Limited (25%) and Korea Zinc Company (50%) under a joint venture (Sources: Assessment report 34274, dated November 1, 2013; Ministry of Energy and Mines MINFILE Number: 094F 008; website - Canada Zinc Metals Corp.)
Note: "Qualified Person" information is provided, as required by regulatory authorities, in the "Disclaimer" section of this website under the heading "Technical Information".