Mining News: China miners secure future zinc reserves through investments in Canada

Chinese firms are securing potential future base metal sources. In two separate deals, China metal companies are moving ahead with investments in zinc projects in northwest Canada.

In July 2008 two China mining companies – Jinduicheng Molybdenum Group Ltd. and Northwest Nonferrous International Investment Company Ltd. – acquired Yukon Zinc Corp.

By buying up all of Yukon Zinc’s outstanding shares for C 22 cents per share, the two Shaanxi Province-based companies became owners of the rich polymetallic Wolverine project in southeast Yukon Territory.

Wolverine has measured and indicated resources of 4.46 million metric tons grading 12.14 percent zinc, 354.8 grams per metric ton silver, 1.16 percent copper, 1.69 g/t gold and 1.58 percent lead (at US$80 cut-off). Inferred resources are 1.69 million metric tons containing 12.16 percent zinc, 385.4 g/t silver, 1.23 percent copper, 1.71 g/t gold and 1.74 percent lead (at the same cut-off).

Construction is already well underway at the fully permitted, volcanic massive sulfide project. Yukon Zinc is anticipating production from the 1,700-metric-ton-per-day underground mine by mid-2010. Their corporate headquarters is in Vancouver, B.C., with ownership from China.

Tongling Nonferrous Metals Group Holdings Co. Ltd., another China mining company, is in the process of buying a 13 percent stake in Canada Zinc Metals. The C$4.9 million deal will provide funds for additional exploration of the Cardiac Creek SEDEX zinc-lead deposit, which is part of the 6,400-hectare, or 15,424-acre, Akie claim block in northeast British Colombia.

A NI 43-101 report filed in 2008 estimates an inferred resource at Cardiac Creek of 23.6 million metric tons grading 7.60 percent zinc, 1.50 percent lead and 13 g/t silver with a 5 percent cutoff.

Canada Zinc also owns the Kechika Trough regional exploration property, which covers a total of 78,526 hectares, or 185,189 acres, extending northwest from the Akie property for a distance of 125 kilometers, or 75 miles. 

—Shane Lasley