Projects
West Desert
Location and Access
Regional Geology
Property Geology and Mineralization
Resource Estimate
Preliminary Economic Assessment





Resource Estimate


The resource base at the West Desert project was re-estimated by Mine Development Associates (MDA) to include iron in March 2014. MDA constructed a highly detailed, three dimensional block model on the basis of both InZinc's and historical drilling. Zinc, iron, copper and indium grades were assigned to each block using inverse distance interpolation. The percentage of iron occurring as magnetite throughout the resource was modelled on the basis of Davis Tube assays from drilling carried out both historically and by InZinc in 2007-2008. Gross metal values (GMV) used for cutoff reporting were based on a zinc price of US$1/lb, a copper price of US$3/lb, an iron ore price of $105/tonne and an indium price of US$600/kg to determine the relative value of each metal. The magnetite price of $115/t ultimately used in the GMV calculation includes the expected $10/t premium to the benchmark iron ore price.

A GMV cutoff value of $50/tonne was used to define resources that would be potentially mineable in an underground operation. A GMV cutoff value of $15/tonne was used to define oxide resources that would be potentially mineable in an open pit operation. All mineralization was diluted to minimum dimensions of 2m by 2m by 3m.

Project wide underground resources are summarized in the table below:

Cut-off
($GMV)
Category
Million
Tonnes
ZnEq
(%)
Zn
(%)
Zn
(Mlbs)
Cu
(%)
Cu
(Mlbs)
In
(g/t)
In
(t)
Magnetite
(%)
Magnetite
(Mt)
50
Indicated
13.0
6.22
2.16
691.3
0.23
65.1
33
433
48
6.2
100
Indicated
8.0
7.96
3.18
561.1
0.29
50.9
42
340
53
4.2
150
Indicated
3.9
10.50
5.28
456.1
0.34
29.2
54
211
53
2.1
50
Inferred
46.0
5.57
1.76
1,781.0
0.22
224.6
24
1,102
48
22.0
100
Inferred
23.8
7.59
3.02
1,583.9
0.32
167.2
32
762
53
12.5
150
Inferred
9.8
10.70
5.88
1,266.5
0.43
92.4
38
375
48
4.7

Note: base case in bold; US$; ZnEq based on 100% recovery and Zn=$1/lb, Cu=$3/lb, Magnetite=$115/t, and In=$600/kg

Project wide near surface oxide resources are summarized in the table below:


Cut-off
($ GMV)
Category
Million
Tonnes
ZnEq
(%)
Zn
(%)
Zn
(Mlbs)
Cu
(%)
Cu
(Mlbs)
In
(g/t)
In
(T)
Magnetite
(%)
Magnetite
(Mt)
15
Indicated
1.4
4.76
3.44
106.2
0.20
6.2
8
11
9
0.1
15
Inferred
6.2
4.40
2.95
404.8
0.14
19.8
9
58
15
0.9

Note: US$; ZnEq based on100% recovery and Zn=$1/lb, Cu=$3/lb, Magnetite=$115/t, and In=$600/kg

Mineralization is open for expansion in three directions and there is very good potential for the discovery of additional mineralized zones away from existing resources.