Zinco Mining Corp. TSX-V:ZIM ǁ FRA: 61Z www.zincomining.com January, 2016
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Forward-Looking InformationZinco Mining Corporation has taken all reasonable precautions in preparing, producing and publishing information in this document. Information in this document contains “forward-looking information” and “forward-looking statements” within the meaning of applicable securities laws. This information address future activities, events, plans, developments and projections. All statements, other than statements of historical fact, constitute forward-looking statements or forward-lookinginformation. Such forward-looking information and statements are frequently identified by words such as "may," "will," "should," "anticipate," "plan," "expect," "believe," "estimate," "intend" and similar terminology, and reflect assumptions, estimates, opinions and analysis made by management of Zinco Mining Corporation in light of its experience, current conditions, expectations of future developments and other factors which it believes to be reasonable and relevant. Forward-looking information and statements involve known and unknown risks and uncertainties that may cause Zinco Mining Corporation's actual results, performance and achievements to differ materially from those expressed or implied by the forward-looking information and statements and accordingly, undue reliance should not be placed thereon. Risks and uncertainties that may cause actual results to vary include but are not limited to the speculative nature of mineral exploration and development, including the uncertainty of reserve and resource estimates; operational and technical difficulties; the availability of suitable financing alternatives; fluctuations in commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks; fluctuations in foreign exchange rates; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management's Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities. These areavailable at www.sedar.com. Zinco Mining Corporation disclaims any obligation to update or revise any forward-looking information or statements except as may be required by law. The technical content of this report has been reviewed by Michelle Robinson, MASc., P.Eng., a Qualified Person as defined by NI43-101.
Notice to U.S. PersonsThe securities of Zinco Mining Corporation have not been and will not be registered under the United States Securities act of 1933, as amended (the "U.S. Securities Act") or the securities laws of any state and may not be offered or sold in the UnitedStates or to U.S. persons (as defined in Regulation S to the U.S. Securities Act) unless an exemption from registration is available.
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Overview• Zinco owns the mineral rights to the historically productive
“Ore Horizon” a volcano-sedimentary rock formation 180 to 240 m thick that hosts 14 known volcanogenic massive sulfide (VMS) deposits at the Cuale VMS Camp, Jalisco, Mexico.
• Zinco has had previous success with exploratory drilling at Jesus Maria, one of its many named prospects on the Property. Specifically, drill hole ZIM46 returned values of up to 21.3% Zn, 11.4% Pb, 0.6% Cu, 72 g/t Ag and 0.34 g/t Au across 1 m within 31.5 m of 4.8% Zn, 1.1% Pb, 0.2% Cu, 14 g/t Ag and 0.1 g/t Au.
• Subsequent to drilling this hole, it acquired the mineral rights to the down-dip extension of this mineralization.
• This document presents highlights of a detailed plan to upgrade Zinco's discovery to a marketable resource estimate, and continue exploring the rest of its mining concessions in the Cuale VMS camp.
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Characteristics of VMS deposits• They are a major source of the world’s Zn, Cu, Pb, Ag and Au, and a
significant source of Co, Sn, Se, Mn, Cs, In, Bi, Te, Ga and Ge. 22% of the world’s zinc is from VMS deposits.
• Economic orebodies range from less than 200 000 tonnes to more than 150 million tonnes in size, and occur in clusters.
• Typical grades are on the order of 2 to 5% Zn, 1 to 2% Cu, 1 to 2% Pb, 30 to 60 g/t Ag and 1 to 2 g/t Au (Galley et al. 2007).
• Principal ore minerals are sphalerite, galena, tetrahedrite and chalcopyrite. These minerals are usually recoverable by sulphideflotation processes.
• Mineralization is stratiform or stratabound, and generally occurs at the contact zone between major geological rock formations.
• At Cuale, VMS deposits occur in the “Ore Horizon” a sedimentary rock formation 180 to 240 m thick that represents about 3 million years of geological time that occurs between two thick rhyolite flows. All past-producing VMS mines are in this geological formation.
• Past exploration at Cuale is limited to near surface outcrops of the Ore Horizon. Zinco’s program plans to test down-dip of known mineralization. The down-dip direction is known from Zinco’s previous drilling.
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Presenter
Presentation Notes
Galley, A.G., Hannington, M.D., and Jonasson, I.R., 2007, Volcanogenic massive sulfide deposits in Goodfellow, W.D. ed., Mineral Deposits of Canada: A Synthesis of Major Deposit Types, District Metallogeny, the Evolution of Geological Provinces and Exploration Methods: Geological Association of Canada, Mineral Deposits Division, Special Publication No. 5, p. 141-161.
Cuale VMS Project Location
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ZINCO MINING CORP.
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The Property is located in western Jalisco State, Mexico. It is between Puerto Vallarta and the municipal capital of Talpa de Allende. Guadalajara, the State capital of Jalisco, is 2 to 3 hours drive to the east.
Property• Zinco owns 100% of 7 contiguous concessions
located in the Cuale VMS District of western Jalisco State, Mexico.
• The Property hosts 10 past-producing VMS mines and 44 outcropping mineral occurrences in the Ore Horizon.
• Uneroded Ore Horizon occurs under about 510 Ha of Zinco’s Property east of Jesus Maria and San Juan.
• Only a fraction (say 10%) of the Ore Horizon needs to be mineralized with concentrations of more than 5% base metals to form a giant VMS deposit.
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The Upside!
Map of the Cuale VMS Property
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Map of the VMS Project mining concessions showing roads and historic mine workings (PICKS). ORANGE = Historic mineral dressing plant. GREY = NOT ZINCO.
Historical Mineral Production (1980’s)
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MINE TONNES Au g/t Ag g/t Pb % Zn % Cu %GRANDEZA 756,661 1.89 22 1.41 2.35 0.20LAS TALPAS 141,425 0.34 24 0.65 1.91 0.24EL CALDERO 13,004 0.90 140 0.09 0.20 0.01EL ROSARIO 473 1.25 84 0.19 0.15 0.06SAN RAFAEL 608 0.29 255 1.10 1.32 0.16NARICERO 782,544 0.34 157 1.05 2.85 0.06SAN NICOLAS 79,965 0.19 121 1.57 3.18 0.13JESUS MARIA 46,751 0.06 109 1.85 3.31 0.09PATROCINIO 2,453 0.08 129 1.30 2.80 0.08EL REFUGIO 34,569 0.14 156 0.89 1.95 0.10
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The Property was previously owned by Industrias Penoles, and is a past-producer.
Regional Stratigraphy
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206Pb/238U radiometric age dating of several formations in the Jalisco Block by Bissig et al., 2008 and Valencia et al., 2013 has clarified many stratigraphic and intrusive relationships in Western Jalisco State.
Regional Geology
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VMS deposits are localized in a sedimentary formation (grey-blue) between two thick rhyolite flows.
Geology of the Cuale VMS Project Area
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Zinco’s mineral prospects mainly occur in or close to black or cherty argillites of the Ore Horizon, shown in blue-grey on this map. BLUE SYMBOLS = Bedding. BLACK TRIANGLES = Mountain Peaks (e.g. Antena, Canton). PURPLE DOTS are historic drill hole intercepts, RED dots are Zinco’s intercepts.
Work Completed by Zinco• Pre 2007: Geological mapping• 2007: Airborne magnetic, radiometric, and electromagnetic
geophysical surveys, soil geochemistry• 2008: Compilation of 37587 meters of historic diamond
drilling in 557 holes from western Jalisco, 4754 m of RC drill prospecting of several targets at Cuale
• 2011: 1535 m of follow-up diamond drilling at San Juan and Jesus Maria
• Late 2011: Zinco negotiated ownership of key mining concessions that contain the past-producing Grandeza and Talpas mines, and acquired remaining ground overlapping the Ore Horizon via the application process.
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Jesus Maria is mainly a Zinc deposit
• Zinc-rich mineralization at Jesus Maria occurs below a rhyolite flow-dome characterized by complex flow banding and chaotic flow-breccias on the order of 300 meters thick.
• Below the flow-dome, there are about 40 meters of thinly laminated to medium bedded fine tuffs and cherts that host the zinc-rich massive sulfide. These grade downwards into coarser grained tuffs.
• ZIM46 cut 31.5 m of 4.7% Zn, 1.1% Pb, 0.2% Cu and 13 g/t Ag, and bottomed in mineralization.
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Typical of the contact zone between the black argillite of the Ore Horizon, and capped by a thick rhyolite flow.
Phase 1 Work Plan• Define a mineralized block down-dip of Jesus Maria with expected
dimensions of about 150 m wide, 20 m thick (true thickness) and 300 m down-dip. A block of rock that size weighs approximately 2.3 million tonnes using a specific gravity of about 2.5 estimated from core sample weights, and expected grades are better than 5% combined zinc, lead and copper, based on previous assay results.
• The potential quantity and grade is conceptual in nature, as there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resource.
• Planned work consists of 1725 m of drilling in 6 holes, with a 1000 m contingency to deepen selected holes if results from PDH 1 (p. 15) indicate the presence of additional mineralized layers below the known VMS horizon.
• Explore the Ore Horizon between Talpas, Peregrina, San Antoñio and San Rafael with 1235 m of drilling in 3 exploration holes.
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Plan View of Jesus Maria
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Plan view of Zinco drilling results at Jesus Maria. On surface, the mineral deposit is entirely covered by the rhyolite flow-dome (yellow). 6 holes are planned down-dip of known intercepts ZIM 45 and ZIM 46 for a minimum of 1725 m with a contingency of up to 1000 m to be deployed in holes PDH 2 to 6 depending on the results of PDH 1.
Cross-Section of Jesus Maria (looking NW)
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Cross-section through ZIM46, looking Northwest. ZIM46 intercepted 31.5 metres of 4.7% Zn, 1.1% Pb, 0.2% Cu, 23 g/t Ag and 0.12 g/t Au. The hole terminated in mineralization (drilling was stopped due to slow drilling in very hard rock with the light ManCORE rig). Mineralization occurs in fine-grained sediments (chert, argillite and fine tuff) that overlies rhyolitic lapilli tuff in the Ore Horizon (grey). The “basement” is spherulitic, rhyolite. The “Ore Horizon” sediments are capped by a chaotic, flow-banded and brecciated rhyolite dome. There are some precious metal rich zones in this dome as well. PDH 1 is planned to test the entire width or the Ore Horizon just down-dip of ZIM46. The depth of PDH 2 to 6 will be adjusted based on the results of PDH 1.
Diamond Drill Core from Jesus Maria
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Massive sulfide at Jesus Maria characterized by coarsely crystalline honey yellow sphalerite and galena. The angle of the mineralization to the core axis is quite low as the hole was probably drilled close to down-dip. The next stage of drilling is planned at a better angle.
Plan Map of Talpas, San Rafael, San Antoñioand Peregrina
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Map showing locations of Exploration Holes PDH 7, 8 and 9.
Talpas is a Zinc mine that Zinco purchased in 2011• At least 3000 m of underground development in seven levels
of workings between 1920 and 2020 meters elevation • Ground conditions (rock stability) below ground are good. • Underground recon samples yield the following results: Level 2020 (stockwork) sample 26285: 0.5% Zn, 0.1% Pb,
0.4% Cu, 11 g/t Ag, 0.33 g/t Au across 3 m Level 1990 (stope pillar) sample 25831: 34.7% Zn, 26% Pb,
0.4% Cu, 60 g/t Ag, 1.26 g/t Au across 1 m Level 1980 (stope pillar) sample 29954: 3.8% Zn, 2.2% Pb,
0.3% Cu, 25 g/t Ag, 0.23 g/t Au across 10 m Level 1940 (stope pillar) sample 25832: 12.6% Zn, 1.7% Pb,
0.6% Cu, 29 g/t Ag, 0.67 g/t Au across 2 m
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Cross-section through Talpas underground
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Zinc and copper-rich massive to semi massive sulfide occurs in siliceous, cherty sediments below a quartz-porphyritic rhyolite flow dome complex (same stratigraphic position as Jesus Maria?). RED=mined out open stopes. Drill hole 7 is planned to test the Ore Horizon (grey-blue) west of the underground workings. The hole could be angled a bit easterly if the collar location is stable (there is a lot of movement from Grandeza Mine in this area).
Talpas Underground.
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Caldero Tunnel (right): Sample 25828, cut across this gently dipping massive sulfide horizon, contains 16.4% zinc, 7.7% lead, 0.4% copper, 1.6 g/t gold and 42.5 g/t silver across 1.4 meters.
Talpas, 2000 m level (left) copper-rich stockwork zone.
Cross-section through San Antoñio-Peregrina
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Drill holes 8 and 9 are planned to test the Ore Horizon (grey-blue between underground workings at San Rafael, San Antonio and Peregrina.
Phase 2 Work Plan
• The Phase 1 drilling program at Jesus Maria is expected to define a moderately northeasterly dipping blanket of zinc-rich sulfide mineralization more than 20 m thick with more than 5% Zn+Pb+Cu at the geological contact between an overlying rhyolite flow and the underlying tuffs and black argillites down dip of Jesus Maria.
• If the zone is thicker, or richer, or there are additional continuous zones underneath, the program will have met or exceeded expectations, and Phase 2 drilling should proceed.
• If the expected grades, tonnages and geology are encountered in Phase 1, then Phase 2 will explore an additional block of the Ore Horizon further down-dip of the first phase with 4720 m in 10 holes. A 300 m metallurgical test hole is also planned.
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Geological plan view showing location of Jesus Maria, Phase 1 and 2, and Exploration
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Phase 2 is located down-dip to the northeast, and should only proceed as planned if Phase 1 meets or exceeds expectations
Cross-section showing both phases of planned drilling at Jesus Maria.
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Phase 1 Work Plan (2016)
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Leapfrog should be good enough for initial in-house estimates and models for Phase 1.
Phase 2 Work Plan (2017)
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The Public resource estimate should be prepared with the help of an independent consultant in 2017.
Investment Forecast
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The 2018 forecast is mainly undetermined as results from 2016 and 2017 are required for those estimates.
About Zinc• Zinc is the fourth most widely consumed metal in the world after
iron, aluminum, and copper. • About one-half of the zinc that is produced is used in zinc
galvanizing, a process of adding thin layers of zinc to iron or steel to prevent rusting.
• It is combined with other metals to form alloys (e.g. brass and bronze) that are used in automobiles, electrical components, and household fixtures.
• It is used in die-casting, the production of metal parts with the use of molds.
• Zinc compounds (mainly oxides and sulfates) are used in chemical products, paint, rubber, medicines and as antibacterial agents.
• Zinc is essential to human, plant and animal health. The adult human body contains between 2 and 3 grams of zinc--required for the body's enzymes and immune system to function properly. China has started adding zinc sulfate to some fertilizers.
• Zinc is used to make flexible batteries for wearable technology.
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Catalysts for Zinco
• New discovery• Resource estimate(s)• Involvement of a Major partner• Improved demand (price) for commodities --
Zn, Cu, Pb, Ag, Au.• New uses for commodities that lead to
improved demand (e.g. zinc sulfate in fertilizer)
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Management and Directors• Michelle Robinson, MASc., P. Eng., President, CEO & Director. Geological Engineer,
University of British Columbia. She has 25 years of exploration experience in Canada and Latin America. Prior to moving to Mexico, she authored technical papers on volcanogenic massive sulfide deposits and was the recipient of several awards in the mining industry.
• Bruce Downing, MSc., P. Geo., Hon FEC, Director. Over 40 years of experience as a senior geologist working for several corporations and as a consultant on surface and underground gold and base metal exploration and production projects in British Columbia and around the world. He has published over 18 papers concerning exploration, computing, history, environmental and technology topics.
• Peter Rook-Green, CMA, Director. Over 40 years experience as a financial executive (Newmont Mining Corp., City Resources, Royal Oak Mines and Falconbridge Nickel) in the resource industry.
• Sheryl Jones, CFO. More than fifteen years of accounting experience working primarily for publicly listed companies.
• Yvonne Avalos-Cazares, Legal Counsel, Mexico.
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Share Structure
• Symbol: WKN; A0MKFN; TSX-V:ZIM
• ISIN: CA98959L1085
• Shares issued: 38,878,736
• Options: 2,400,000
• Warrants: Nil
• Fully diluted: 41,278,736
• Year high/low: CAD 0.085/0.01
• Recent share price: CAD 0.05
• Market valuation (fully diluted): CAD 2,063,937
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Contact
Tel:52-1-669-918-7550Email: [email protected]
www.zincomining.com
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Thank you!
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View of Grandeza, looking North.
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