In 2012, NorZinc Ltd. (“NorZinc”) acquired Paragon Minerals Corporation (“Paragon”) which was focused on base metal exploration in central Newfoundland. Paragon’s main asset was the South Tally Pond project which hosts the Lemarchant volcanogenic massive sulphide (“VMS”) deposit along with a number of other highly prospective, underexplored base and precious metal targets. Subsequent to the Paragon acquisition and to further consolidate the prospective base metal properties and deposits in central Newfoundland, NorZinc acquired Messina Minerals Inc and their Tulks South and Long Lake projects in 2013.
NorZinc now controls several high-grade base and precious metal VMS deposits, including three projects with a National Instrument 43-101 compliant deposits with excellent potential for expansion that total 4.2 million tonnes of indicated and 1.3 million tonnes of inferred resources. In addition NorZinc’s projects host several historic deposits and untested exploration targets. The VMS properties and deposits include:
- South Tally Pond (Lemarchant Cu-Pb-Zn-Ag-Au Deposit)
- Tulks South (Boomerang-Domino Cu-Pb-Zn-Ag-Au Deposit)
- Long Lake (Long Lake Cu-Pb-Zn-Ag-Au Deposit)
- Tulks East (Tulks East Cu-Pb-Zn-Ag-Au Deposit)
- Victoria Mine and Lake Douglas
Compared with other VMS districts in Canada, central Newfoundland has not received nearly the same amount of exploration effort. This is despite hosting the world class Buchan’s deposits and the recently closed (June 2015) Duck Pond Cu-Zn Mine. The potential for additional VMS deposit discoveries in the volcanic belts of central Newfoundland remains high.
NorZinc Newfoundland Deposits with NI-43-101 Resource Estimates:
Central Milling Concept
In 2016 NorZinc and Buchans Minerals Corporation (“Buchans”) undertook a research program investigating the technical and economic viability of developing their respective central Newfoundland Zn-Pb-Cu-Ag-Au deposits through a central milling facility. The central milling concept is based on the potential that collectively, the central Newfoundland deposits can be economically mined, pre-concentrated, trucked and then milled, simultaneously or sequentially, through a central mill. As part of the collaboration agreement, both companies undertook bench scale dense media separation ("DMS") and metallurgical studies on the deposits.
The collaboration agreement between NorZinc and Buchans focused on five VMS deposits including two deposits held by NorZinc (Lemarchant and Boomerang-Domino), and three deposits held by Buchans (Bobby’s Pond, Daniels Pond and Lundberg). The program was largely funded by Research & Development Corporation of Newfoundland and Labrador.
Other nearby deposits owned by Buchans * with NI-43-101 Resource Estimates:
NI 43-101 Category
* All deposits listed are 100% owned by Buchans, except Tulks Hill which is 49% owned
Highlights of the Metallurgical Research Program
- Pre-concentration of the samples by bench scale DMS testing (prior to flotation) was determined to be technically viable for the Lundberg deposit, Bobbys Pond deposit and the Lemarchant FootwallMetallurgical test results support the development of a sequential flotation flowsheet for the processing of all five deposits using a centralized processing facility.
- Bench scale flotation test programs indicated improved grade and recovery relationship for the production of copper, lead and zinc concentrates using a common sequential flotation flowsheet rather than a bulk flotation flowsheet.
- Test results and METSIMTM metallurgical simulations confirmed that selective zinc, lead and copper concentrates at marketable grades can be produced using a sequential flotation flowsheet.
- The process simulation and cost assessment results (conceptual economic modelling) provided key information on which to base future studies and development plans, including the ongoing exploration programs that are critical to expanding the deposits and advancing the viability of developing the central Newfoundland deposits through a centralized milling facility.
The metallurgical research study demonstrated that ore from the Company’s Lemarchant and Boomerang-Domino deposits could be successfully processed in a central mill using a sequential flotation flowsheet, and that selective zinc, lead and copper concentrates at marketable grades could be produced from these deposits.