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The Pine Point Zinc Project (“Pine Point”) is located 42 kilometers east of Hay River in Northwest Territories, Canada. Pine Point contain 46 known zinc-rich deposits over a strike length of approximately 62 kilometers, 10 of which were subjected to a NI 43-101 technical report in 2014 prepared for Tamerlane (“2014 Report”).

Location & Infrastructure

The Pine Point property consists of a semi-contiguous group of 47 mineral claims and mining leases in the Pine Point District, about 10 kilometres south of Great Slave Lake and accessible from Hay River by all-weather year-round highway which parallels the mining lease block. Hay River in turn can be reached by 825 km of paved road north from Edmonton, Alberta. Hay River has all major services including an airport with scheduled jet service from Edmonton and Yellowknife, a rail terminal and a port from which all barge traffic proceeds on the Mackenzie River. An airstrip suitable for small aircraft is also present 4 km SSE of the former Pine Point mill site and 2 km east of the former Pine Point town site. The property is subject to a 3% net smelter return royalty.

Geology

The Pine Point property belongs to the class of carbonate hosted lead-zinc sulphide deposits known as Mississippi Valley Type (“MVT”) deposits, and is probably the most famous and best known Canadian example of this type of deposit. Nanisivik, Polaris and the Grey River deposits are other Canadian examples of the same geological class. MVT deposits are among the most important sources of lead and zinc in the world, exhibiting moderate to high grades, non-complex metallurgy, and processing and beneficiation characteristics that yield high quality concentrates.

Historical Work

Cominco Ltd. began exploration at Pine Point in 1929, with test-pitting, drilling and shaft sinking. In 1948, Cominco began major exploration work, using the Mississippi-Valley-type model to guide exploration. About 90 deposits were discovered by Cominco. By 1964, several deposits had been identified. Cominco commenced large-scale mine production in 1964 with reported reserves of 21.5 million tonnes averaging 4% lead and 7.2% zinc (a historical figure reported by Giroux and McCartney, 2001). The “Pine Point mine” was actually an assemblage of 46 separate open pits and two underground deposits, lying along a 35-kilometers trend including the concentrator at the Pine Point town site. Some 64 million tonnes of ore at a grade of 7.0% zinc and 3.1% lead was mined between 1964 and 1987. Previous drilling on the property totals approximately 1.3 million metres in 18,422 holes by Pine Point Mines (Cominco), Westmin and Tamerlane.

The Pine Point property consists of 42 separate lead-zinc deposits of varying size and grade. The following, as per the 2014 Report, is the estimated historical reserves for 10 of these deposits:

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Future Exploration Upside

  • There are 34 geophysical anomalies on the property that require further work
  • There is potential for numerous targets on the South Trend
  • Due to distances from the original Pine Point concentrator, large portions of the western most leases remain under-explored providing potential for discoveries of additional deposits.