NEW BRUNSWICK — Toronto’s Kria Resources has entered into talks with Xstrata Zinc to examine using Xstrata’s Brunswick mill to process ore from Kria’s Halfmile Lake property 40 km away. Taking advantage of unused capacity at the Brunswick mill would allow Kria to fast track production and phase in future development at Halfmile.
The Halfmile preliminary economic assessment (PEA), envisions construction of an underground mine and a stand-alone processing facility. Indicated resources are 6.26 million tonnes at 8.13% Zn, 2.58% Pb, 0.22% Cu and 30.78 g/t Ag. The inferred resources are 6.08 million tonnes at 6.69% Zn, 1.83% Pb, 0.14% Cu and 20.51 g/t Ag.
Kria said the ability to phase in the project would allow for the underground mine to be developed first for production in the Upper zone area, along with giving access to an underground exploration platform for the Lower and Deep zones. The ability to generate cash flow earlier will assist the company in financing the remainder of the project development.
Xstrata is the 24%-owner of Kria. Resources at the No.12 mine will be depleted near the end of 2010.
Details of the Halfmile project is posted at www.KriaResources.com.