Alta Zinc identifies the significant potential upside within its flagship Gorno Zinc Project following the completion of Technical as well as Exploration study. The company stated that its advanced technical study had demonstrated Gorno’s technical viability which confirms that significant value can be added by increasing the size and grade of Gorno’s Mineral Resource.
Based on the technical study outcome, Alta Zinc conducted the extensive evaluation and assessment of the Gorno’s exploration potential over the past 12 months. The Exploration Study has reportedly identified five majority targets across three areas that have the potential to significantly add to the current Zorzone Mineral Resource within the Gorno Project Area. These three areas include Pian Bracca/Arera Thrust, Zorzone Extensions, and Fontanone.
Alta Zinc Limited (ASX: AZI) thus revealed its development strategy for the brownfield Gorno Zinc Project, in northern Italy. The company intends to commence a new five-stage exploration plan which is focused on updated GPA’s Exploration Target of 9-21Mt at 6-7% Zn+Pb while its existing Mineral resource stands at 3.3Mt @ 6.2% Zn+Pb.
Executive Chairman and CEO of Alta Zinc, Mr. Alexander Burns stated, “The Technical Study underscores the technical viability of the project development plan, utilizing the existing infrastructure and Mineral Resource. More interestingly, it highlights that substantial value can be added provided Alta be able to increase the size and grade of Gorno’s overall Mineral Resource- which is the company’s number one priority for 2019 having recently categorized and prioritized five near resource target areas.”
However, the company explained that the potential grade and quantity of the updated Exploration Target are conceptual in nature and there has not been sufficient exploration to estimate a Mineral Resource. Alta, therefore, stated that it is uncertain if further exploration will result in the estimation of a Mineral Resource.
The exploration work will reportedly test the eastern extensions of the Zorzone Resource including Pian Bracca/Arera Thrust through the Gorno’s existing underground infrastructure. Alta believes that test targets are potential to host a thicker zone of sulphide mineralization compared to the previous geological work outcome.
Alta’s recently completed technical study was carried out by independent consultants Lycopodium Minerals Pty Limited and AMC Consultants Pty Limited focused on exploiting only the accessible sulphide zones within the existing Zorzone Mineral Resource. The study included mining geotechnical, mining and mining costs components, processing, the metallurgy, surface infrastructure, and associated costs components.
Mr. Burns added, “The conclusion of these two important studies has also facilitated talks with offtake partners and financial institutions, not just to satisfy Alta’s short-term cash requirements to commence the Exploration Plan, but also potentially through to first zinc concentrate production.”
Currently, the company aims to thoroughly understand the geology of exploration potential across the broader GPA before finalizing its exploration strategy. Alta further explains its strategy is to add value to Gorno through scale enhancement going forward this year. Its principal point of focus is the resource definition drilling program which aims to boost the Indicated Mineral Resource available within the project footprint area.
AZI last traded at $0.006 with a market capitalization of $8.21 million. Over the past three months, the stock has witnessed a positive price change of 20%. However, it has been down by 45.45% over the past 12 months.
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