Chief Consolidated Mining (CFCM-Q), Akiko Gold Resources (AKI-V) and a U.S.
subsidiary of Korea Zinc have formed a joint venture to develop the New Burgin deposit in Utah.
The deal transfers a half interest in 9,000 acres in the Tintic district to Akiko and Korea Zinc. The joint venture also allows the companies to pursue other precious metals and polymetallic mineral targets on the property.
Korea Zinc, which recently completed the US$50-million acquisition of the Big River zinc smelter in Sauget, Ill., will fund the next US$2 million towards the development of the silver-lead-zinc deposit. And Akiko and Korea Zinc, combined, will fund the next US$4 million, enabling each to retain its 25%-interest.
Drilling at the New Burgin has focused on expanding the reserve base.
Reserves now stand at 1.5 million tons, with an average grade of 16.5 oz.
silver per ton, 21% lead and 6.7% zinc. Annual output, over a projected mine life of five years, will consist of about 4.5 million oz. silver, more than 100 million lb. lead and 20 million lb. zinc.
The joint venture will be managed by a newly formed company, Tintic Utah Metals, which will be headed up by Keith Droste, former vice-president of FMC Gold and a manager at Hecla’s Lucky Friday mine.
Tintic Utah Metals also holds an option to acquire the South Standard property, adjacent to the joint venture property, from Chief Consolidated.
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