Vendetta Mining Corp (CVE:VTT) (OTCMKTS:VDTAF) said a 10-hole drill program will kick off at the Pegmont lead-zinc project in Australia later in July in a bid to expand mineralization at Zone 5.
Late last year, a two hole program was carried out as part of a Queensland government collaborative exploration initiative, with one in that zone hitting 8.42 metres (m) at 7.07% lead, 5.98% zinc and 9 grams per ton (g/t) silver from 161.10 m downhole, outside the current resource, with an estimated true thickness of 7m.
The aim of the upcoming drilling is to expand the mineralisation centred around that intersection, testing a strike length of around 500m.
READ: Vendetta Mining poised for drilling at the Pegmont Deeps Zinc target after it wins A$200,000 state grant
"We are excited to be drilling in Zone 5 at Pegmont once more," said Michael Williams, CEO in a statement.
"This program will follow up on the Queensland Government funded exploration drilling program that successful tested the new Zone 5 interpretation. The thick, relatively shallow and high-grade intersection in PVRD196 highlights the potential to expand the zinc rich Zone 5, which is open along strike and down dip."
Vendetta's wholly-owned Pegmont lead-zinc project lies in the Mount Isa - McArthur Mineral Province, Australia which hosts one of the world's richest endowments of lead-zinc-silver mineralization, including several significant mines.
The asset currently boast an indicated resource estimate of 5.8 million tonnes at 6.5% lead, 2.6% zinc and 11 grams per ton (g/t) silver. The inferred category hosts 8.2 million tonnes at 5.1% lead, 2.8% zinc and 8 g/t silver.
In early 2019, the group released a preliminary economic assessment (PEA), which outlined a 10-year mine plan and robust economics.
It showed a pre-tax internal rate of return (IRR) of 32% (after-tax 24%) and net present value (NPV) of C$201 million (C$128 million after-tax) using long term consensus metal prices of US$0.91 per pound lead, US$1.09 per pound zinc and US$16.50 per ounce of silver and a US$:A$ exchange rate of US$0.75. Pre-production capex was put at C$170 million.
Contact the author at giles@proactiveinvestors.com