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Zinc One updates on current exploration programs for Bongará and Charlotte-Bongará zinc projects

It noted that reconnaissance mapping confirmed the presence of zinc sulphide mineralized subcrop and boulder float in the Cristal area

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Zinc One also announced that it has terminated its previously announced joint venture term sheet with InCoR Holdings

Zinc One Resources Inc. (CVE:Z) (OTCMKTS:ZZZOF) has provided an update on its current exploration programs on the Bongará Zinc Mine Project and the Charlotte-Bongará Zinc Project in Peru.

In a statement, the Vancouver-based group said reconnaissance mapping was conducted on the zinc sulphide mineralization at Cristal, which is located on the Charlotte-Bongará Zinc Project and is approximately 6 kilometres to the northwest of the main deposit at the Bongará Zinc Mine Project.

It noted that the reconnaissance mapping confirmed the presence of zinc sulphide mineralized subcrop and boulder float in the Cristal area.

READ: Zinc One Resources updates on financing to advance Bongara project in Peru

The company pointed out that several areas of strong dolomite alteration were identified and require follow-up mapping and geochemical sampling. Historic drill core was reviewed, re-logged and select intervals were resampled, the company added.

Zinc One noted that mineralization at Cristal is hosted in a lower limestone sequence than the oxide mineralization at Bongarita, Mina Chica and Mina Grande, and is more analogous with the style of mineralization at the nearby Florida Canyon Deposit.

The group pointed out that it is currently re-modelling historic Cristal drill data, in order to better understand key controls on sulphide mineralization for drill targeting.

The company noted that current exploration work on the Bongará Zinc Mine Project was to conduct reconnaissance exploration and mapping of potential strike extensions of mineralization between Mina Chica and Bongarita, south of Mina Chica, and around Mina Grande Centro and Sur.

The group said this work identified extensive scattered outcrop and sub-crop of zinc oxide mineralization, confirming the upside potential of these areas.

Zinc One pointed out that it is currently remodeling this data to plan an infill drilling campaign. It said, as well, that it is exploring alternative uses for zinc-oxide material from the deposit that would ideally minimize operation costs on the project.

Unable to settle InCor agreement terms

The company also announced that it has terminated its previously announced joint venture term sheet dated May 24, 2019 with InCoR Holdings Limited and InCoR Zinc Ltd. as they were unable to settle the terms of the definitive agreement by August 31, 2019.

Under the terms of the arrangement with the natural resources venture capital firm, announced on May 28,  InCoR was to provide Zinc One with up to US$3.75 million in funding in exchange for earning up to an 80% interest in the joint venture.

READ: Zinc One Resources forms joint venture with InCoR Holdings to advance Bongara project

Zinc One had said InCoR would provide significant metallurgical expertise, technical assessment and project development insight to advance Bongará, which has an indicated mineral resource of 822,000 tons averaging around 19% zinc and containing 342 million pound of zinc at a 10% cutoff grade.

At that time, InCoR owned nearly 5.5 million Zinc One shares, representing 4.5% of the issued and outstanding shares.

On August 12, Zinc One Resources Inc. closed a rights offering, also first announced on May 28, that saw a total of 69,846,582 common shares issued to holders at a subscription price of $0.02 per share which raised gross proceeds of $1,396,932.

The group said the net proceeds of the offering would be used to repay corporate indebtedness, reduce trade payables, incurring US $200,000 for geological, resource modelling and technical studies on the Bongará Project and general working capital.

Quick facts: Zinc One Resources Inc.

Price: 0.02 CAD

TSX-V:Z
Market: TSX-V
Market Cap: $2.72 m
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