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Cerro Condorin
In February 2007 Zincore signed a definitive agreement with Brett Resources Inc. (“Brett”) under which Zincore is earning up to an 80% interest in Brett’s Cerro Condorini property in southern Peru. The agreement fits Zincore’s strategy of gaining high potential zinc opportunities in Peru. The evidence of mining activities on the property combined with promising surface exploration results is encouraging. Zincore’s exploration team is pursuing these targets to rapidly determine their potential.
The Condorini properties host several historic mining areas. Early stage exploration work by Brett and Zincore identified numerous areas with widespread zinc oxide mineralization within the 3,600-hectare property. Surface exposures within these areas are limited, with selective sampling returning high-grade zinc, including 9.0 metres at 9.3% zinc and 4.2% lead, 6.0 metres at 4.5% zinc and 2.4% lead and 2.4 metres of 13.4% zinc. Several other prospects were identified containing high-grade silver (100 to 600 grams per tonne) associated with copper and lead in historic workings.
Initial work will include mapping and trenching to define the geometry and tenor of identified mineralized zones, further general reconnaissance exploration to identify additional mineralized areas and a drilling program to test priority targets. Zincore will manage the exploration program.
Under the terms of the agreement, Zincore can earn a 60% interest in the property by spending a total of US$1.5 million on exploration on the properties over three years and making payments to Brett totaling US$75,000. Of these amounts, US$200,000 of expenditures and US$25,000 in payments are committed. Zincore has rights to earn an additional 20% in two equal tranches, for a total interest in the properties of 80%, by spending US$2.5 million over a further two years and US$4.0 million over a subsequent four years, respectively, on exploration and development of the properties. Zincore has been appointed operator of the project.