Zinco Mining Corporation (TSX-V: ZIM, FRA: 61Z) has dropped one concession and applied to reduce the size of five other concessions held in its VMS Jalisco Project in Mexico. This step has been taken to reduce its property holding costs while the company seeks additional financing. Land being abandoned at this time is peripheral to the Company’s core assets.
The Company’s flagship project is in the Cuale VMS camp. In 2011, the Company completed a diamond drill program on the San Juan and Jesus Maria VMS prospects, with encouraging results announced in previous news releases (see news releases dated October 10 and October 12, 2011). The Company believes that there are also a number of other promising target areas in the Cuale Camp in close proximity to San Juan and Jesus Maria. This belief is based on information from historic mines and preliminary exploration work carried out by Zinco.
The 2011 diamond drill program was carried out pursuant to a $1 million financing done in October 2010. Zinco completed a private placement in February of this year for $247,500. The Company has been unable to complete a financing since then due the very challenging capital markets for junior mineral exploration and development companies.
Zinco’s current cash balance is approximately twice the company’s current monthly burn rate for its public company administration costs and property taxes.
The Company will continue to seek private placement financing and to further reduce its ongoing property costs by entering into joint venture agreements or other strategic transactions with other parties with respect to some of the Company’s properties.
There can be no assurance that the Zinco will be successful in obtaining the required financing or in negotiating joint venture or other agreements on a timely basis. Failure to obtain adequate financing and/or enter into strategic agreements with others will result in the Company relinquishing some or all of its properties.
Further information about the Jalisco VMS Project can be reviewed on Zinco’s website www.zincomining.com
ON BEHALF OF THE BOARD,
Certain information regarding the Company including management’s assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve risks associated with mining exploration and development, volatility of prices, currency fluctuations, imprecision of resource estimates, environmental and permitting risks, access to labour and services, competition from other companies and ability to access sufficient capital. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.
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