Vancouver – Tri Origin Exploration (TOE-V, TROIF-O) has put forth a resource estimate for its Woodlawn base metals project in New South Wales, Australia.
Held by its 51%-owned Australian subsidiary Tri Origin Minerals, Woodlawn contains a measured and indicated resource of 8.58 million tonnes averaging 10.3% zinc, 1.8% copper, 4% lead, 84 grams silver per tonne and 0.5 gram gold per tonne. Additional inferred resources tabled in the JORC-compliant estimate are 1.5 million tonnes grading 9.6% zinc, 1.7% copper, 4.1% lead, 87 grams silver and 0.6 gram gold.
Situated about 200 km southwest of Sidney, the past producer previously saw output of about 13.3 million tonnes of high-grade zinc-copper ore from both open pit and underground operations from 1978 until 1998. The company reports a significant portion of the resource is within close proximity to past underground workings.
Tri Origin’s prefeasibility studies underway at Woodlawn are evaluating redevelopment of underground operations to place the project back into production and capitalize on the robust zinc market, currently trading at an all-time high of US$1.86 per lb. spot price. It anticipates completion of the study in the first quarter of 2007 to be followed by a bankable feasibility study expected by early-2008.
The 200-metre deep Woodlawn pit currently hosts a bioreactor and waste management facility operated by Veolia Environmental Services that produces electricity generated from collected biogas. Tri Origin has agreements in place with Veolia allowing underground mine development plus an option to purchase land within the mining lease.
Shares of Tri Origin rallied more than 45% on TSX Venture board trading following the resource announcement, up 14 at 45 apiece on volume of over 700,000. With 40.4-million shares outstanding, the company posts an $18-million market capitalization.