Vancouver, October 20, 2020 - InZinc Mining Ltd. (TSXV: IZN) (the "Company") is pleased to provide an update on its activities over the past several months which have focused on strategies to advance its North American project portfolio while preserving working capital.
Summary
- Strategic discussions - corporate and asset level - no assurance of a positive outcome
- New strategies forming to improve economics at West Desert project, Utah - upside potential from resource expansion and improved resource classification - higher confidence in potential indium revenue
- Favorable amendments to option agreement at Indy project, British Columbia - shallow, high grades discovered in 2018 open for expansion - regional scale exploration
- Executive transition
- Continued low administrative and project-carrying costs
Strategic Discussions
The Company has received overtures from, and had discussions with, various parties regarding potential corporate and asset level transactions. COVID has influenced timing of some of the related activities. There are no assurances that anything will result from these discussions.
West Desert, Utah (100%)
The Company has been evaluating new strategies to improve the economics and advance this infrastructure-rich project. West Desert is the largest known zinc resource in the "lower 48" of the US not currently owned by a major base metal producer. The Project also contains the only known indium (defined as a Critical Mineral) resource in the US. Indium is a vital component of touchscreen technologies and is used in a variety of photovoltaic (solar) cell technologies.
West Desert is host to an expandable resource containing 691 million lbs zinc and 65 million lbs copper in Indicated Resources and 1,781 million lbs zinc and 224 million lbs copper in Inferred Resources. Important by-products include indium, silver, gold and iron. A 2014 PEA returned positive economics, concluding that additional high value (zinc and copper) resources would further enhance economics in the next stage of advancement. In 2018, a successful drill campaign discovered new shallow and high-grade (copper, zinc and indium) resource potential proximate to the existing resource. A preliminary estimate for a drill program to follow up these results is US$1.4 million.
The 2014 PEA also outlines the flexibility of the resource at West Desert, stating that an increase of up to 200% in Indicated Resources could be achieved by excluding indium from the current resource given the lower frequency of sampling for indium relative to other metals. If indium was excluded, the project would still capture the revenues from the indium contained in concentrate sales and would benefit from a reduction in the drilling required to upgrade the resource for production.
Recent preliminary discussions with concentrate marketing specialists support the estimated revenue for indium contained in the 2014 PEA. Future concentrates from West Desert remain uncommitted.
Production studies balancing higher value zinc-copper and iron resources may also offer improved efficiencies in revenue and enhanced project economics.
Indy Project, British Columbia (100% Option)
With a large claim position (25km strike), discoveries of shallow, high-grade mineralization and multiple untested targets exceeding 5km in aggregate length, the Indy project provides multiple opportunities and scale for discoveries of sedimentary hosted exhalative (Sedex) type deposit in an accessible and unexplored region of central British Columbia.
As previously announced April 2, 2020, the Company has an additional year to earn a 100% interest at Indy. As amended, the option agreement requires no property expenditures in 2020 and reduced expenditures in 2021. The aggregate property expenditures remain the same as those outlined in the original agreement. A preliminary estimate for a follow-up exploration program including airborne geophysics, additional soil sampling and drilling is $800,000.
Executive Transition
Wayne Hubert, the Company's CEO, has advised he will be stepping down as CEO due to new and existing commitments within the gold industry. To ensure a seamless transition, Wayne will continue as CEO for the next few months and will remain an active board member. The above-referenced strategic discussions may influence the timing and outcome of a CEO search process.
Low Administrative and Project Carrying Costs
Management has continued to keep administrative costs low while retaining the ability to respond to improving base metal markets as needed. Core property retention costs are comparatively low and supported by favorable tax incentives such as the METC in British Columbia.
About InZinc
InZinc is focused on growth in zinc through exploration and expansion of the advanced stage West Desert project (100%) in Utah and exploration of the early stage Indy project (100% option) in British Columbia. West Desert has a large underground resource open for expansion and has district scale exploration potential. A West Desert preliminary economic assessment completed in 2014 forecasted 1.6 billion pounds of zinc production over 15 years. Byproducts would include copper, magnetite and indium, the latter being identified by the United States in 2017 as a critical mineral. West Desert is well located with easy access and existing infrastructure. The Indy Sedex project comprises near surface discoveries, large untested exploration targets and regional discovery potential. Indy is readily accessible by road from Prince George, the major hub for transportation and heavy industry in central British Columbia and is located 85km south of the Canadian National Railway.
InZinc Mining Ltd.
Wayne Hubert
_____________________________
Chief Executive Officer
Phone: 604.687.7211
Website: www.inzincmining.com
For further information contact:
Joyce Musial
Vice President, Corporate Affairs
Phone: 604.317.2728
Email: joyce@inzincmining.com
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and US securities legislation. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding the Company's next shareholder meeting. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, plan, design, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results, performance, or actions and that actual results and actions may differ materially from those in forward-looking statements as a result of various factors, including, but not limited to, those risks and uncertainties disclosed in the Company's Management Discussion and Analysis for the year ended December 31, 2018 filed with certain securities commissions in Canada and other information released by the Company and filed with the appropriate regulatory agencies. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties.
The 2014 Preliminary Economic Assessment (PEA) was prepared by Mine Development Associates with contributions from International Metallurgical and Environmental Inc. in accordance with the definitions in Canadian National Instrument 43-101. All dollar amounts are US currency. The PEA is considered preliminary in nature. It includes Inferred mineral resources that are considered too speculative to have the economic considerations applied that would enable classification as mineral reserves. There is no certainty that the conclusions within the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Long-term metal prices used in the study included zinc at $1/lb, copper at $3/lb, iron ore at $105/t (62% Fe, CFR-Tianjin), gold at $1,300/oz and silver at $21/oz. The technical report is entitled "Technical Report on the West Desert Zinc-Copper-Indium-Magnetite Project - Preliminary Economic Assessment - Juab County, Utah" and is available both at www.sedar.com and the Company's website at www.inzincmining.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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