Welcome To The Strategic Resource Acquisition Corporation HUB On AGORACOM
With this transaction, SRA has effectively provided for the sale of the majority of its Ge/Ga rich leachate into 2010
Indicated resources are sufficient for 5 years under 7,500 tpd production schedule
• Inferred resources likely to be converted to mineable category; thus 10 year mine plan; should significantly extend minelife, as per past history of the mine
• Resources were consistently replaced since 1975 – historical resources at closure were 29.9mm tons grading 3.43% Zn (Pasminco Report)
• 2007 confirmation drilling has added 586,600 t @ 3.0% Zn (internal estimate, not NI 43-101 compliant)
• Presently re-evaluating resource with 1.5% zinc cut off grade. Identified 3.1 million tons @ 2.1% Zn (3 holes)
Mississippi Valley type zinc deposits in the middle Tennessee mining district contain primary sphalerite mineralization with economic grade mineralization residing in stratabound collapse breccias and dissolution cavities in Mascot Dolomite. The mineralized breccias can range from 100 to 250 feet thick and 50 to 600 feet wide. The nature of the MTM mineralization – large breccias amenable to mining by room and pillar, shrinkage stoping and multipass benching methods on a large scale - along with favourable ground conditions from highly competent host rock, minimizes the extent of rock bolting and keeps overall mining costs fairly low.
Throughout its production history, the MTM complex mined ore that was fairly consistent in grade and composition. The last estimate completed by the former operator, Pasminco, in 2003 used a 2% Zn cut-off grade, a 12-ft minimum thickness to define a mineable zone, a tonnage factor of 12 and a grade capped at 4.5% Zn for all polygons included in the resource. These parameters were based on years of mining experience and a much lower zinc price (less than $0.40 per lb). WGM was retained by SRA to conduct an independent technical review and resource estimate audit, maintaining these parameters. The new resource estimation therefore takes into account only mineralization ranging between 2% and 4.5% Zn. Significant resources are known to exist between 1.5% to 2.0% not factored into the resource estimate. In addition, the capped grade of 4.5% Zn does not allow certain identified high grade areas to be recognized at their true value. Historically the operations mined and delivered up to 20% more ore than could be verified and stated in proven/probable blocks
The proximity of past and current mining operations to the Beach Grove Lineament, a SW-NE trending structure interpreted by satellite imagery as a reflection of basement faulting, is a prime target for further resource given the favourable strata located near and along the lineament. There were many such areas that previous operators had identified from both surface and underground as having potential, but due to low zinc prices and mining other higher priority areas, significant exploration was not undertaken. SRA has initiated a minimum 30,000 ft per month underground percussion drilling program to upgrade resources to reserves sufficient for two years ahead of mining and expects to initiate a 24-hole, 36,000 ft surface diamond drilling program to identify additional resources. Historically, exploration for additional reserves had significantly lagged production with never more than 1.5 years of historical reserves ahead of mining.