LONDON (Alliance News) - Minco PLC on Wednesday said it has entered into a collaboration agreement with Canadian Zinc Corp on a research project.
The research project will complete physical and metallurgical bench scale studies on seven volcanogenic massive sulphide in central Newfoundland, while data will be shared on their central Newfoundland copper-lead-zinc-silver deposits.
Buchans Minerals Corp, a subsidiary of Minco, will shoulder up to USD100,000 of the cost of the project, with Canadian Zinc to contribute an equal amount. The Research & Development Corporation of Newfoundland and Labrador is providing Canadian Zinc with USD535,000 for the research project.
"The intent and objective of the program is to determine the technical and economic viability of developing the companies' key deposits into producing operations by utilizing a central milling facility. The concept is based on the potential that collectively, the satellite deposits can be economically mined, pre-concentrated, trucked and then milled simultaneously or sequentially through a central mill," Minco said.
"Outcomes of the research project will provide key information on which to further evaluate the economic viability of developing the central Newfoundland deposits through a central milling facility. Positive results would lead to continued development work on the known deposits, renewed exploration interest leading to new discoveries, and ultimately, ongoing mining operations in central Newfoundland," Minco added.
Thibault & Associates Inc, an applied process chemical engineering firm, has been awarded the contract to complete bench scale physical/metallurgical studies and the process simulation and cost modelling.
Shares in Minco were up 11% at 0.640 pence on Wednesday.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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