thanks Tradem.------Union Resources By: Posted: '04-APR-06...

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Union Resources
By:
Posted: '04-APR-06 07:19' GMT © Mineweb 1997-2004

3 April 2006
Increased resource levels at Mehdiabad for Union Resources


Brisbane based Union Resources Limited has reported an increase in both the level of confidence and the size of the resource at the Mehdiabad Zinc Project in Iran, based on a JORC JORC: Joint Ore Reserves Committee is a joint committee of the Mining Council of Australia, the Australasian Institute of Mining and Metallurgy (AusIMM) and The Australian Institute of Geoscientists (AIG). Other organisations represented on JORC are the Australian Stock Exchange (ASX), the Mineral Industry Consultants Association (MICA) and the Securities Institute of Australia (SIA). Compliant resource estimate made for the Feasibility Study by independent geologists Hellman and Schofield.

The Managing Director of Union Resources, Mr Rob Murdoch, said that the in-ground metal estimates now comprise 16.4 million tonnes of zinc (originally 15.5 million tonnes), 6.2 million tonnes of lead (5 million tonnes) and 460 million ounces of silver (350 million tonnes)

Further he advised that more than 90% was now either Measured or Indicated and hence a much higher level of confidence could now be placed on the resource, than previously.

He said not all of the metal content could be recovered by the planned metallurgical processing route.

“Now that the resource estimate has been obtained, other aspects of the Feasibility Report on the Mehdiabad project can be finalised, and the information will be released as it becomes available,” Mr Murdoch said.

The “Recovered Metal” has been calculated by using recovery rate projections of 66% for oxide zinc; 72% for sulphide zinc/lead and 40% for sulphide silver. No recoverable lead or silver applies to the oxide mineralization.

The metallurgically recoverable metal within the resource is therefore estimated at 11.6 million tonnes zinc, 3.3 million tonnes lead and 134 million ounces of silver.

The zinc resource is made up of both oxide and sulphide mineralogy, that will be processed in one integrated processing plant.

The oxide resources for Measured, Indicated and Inferred are 36.4 million tones (mt), 47.7 mt and 8.7 mt, respectively, (above a 2% Zinc cut-off grade) with similar Zinc, Lead and Silver grades to those tabulated (total oxide resource 92.8 million tonnes). The remainder is the sulphide resource. Approximately 25 % of the resource is oxide and 75% sulphide.

A 2% cut off zinc grade has been selected based on economic studies.

In addition to the above resource, there is approximately a further 100 million tonnes of Measured and Indicated mineralization between 1% and 2% Zinc that falls within a preliminary optimum pit. Whilst it is presently uncertain whether this material will contribute to the project’s economics, it is likely to form a separate low grade stockpile for consideration for future processing.