Blue Moon recently updated its NI 43-101 report to indicate mineral resources at the site that are 100 percent inferred. (Their previous NI 43-101 report, filed Nov. 13, designated resources as roughly half inferred and half indicated.)
There was no change in the tons, grade or contained metal between the current NI 43-101 report and the NI 43-101 report filed on Nov. 13, 2017.
The zinc deposit, also called Blue Moon, consists of 7.8 million tons in the inferred mineral resource category grading 8.07 percent zinc equivalent (ZnEq) at a four percent ZnEq cut-off grade. Blue Moon estimates there are 771 million pounds of zinc, 300,000 ounces of gold, and more than 10 million ounces of silver at their Blue Moon deposit.
These resources are “in the inferred mineral resource category at a conservative four percent zinc equivalent cut-off grade,” said Patrick McGrath, CEO. “[It] reinforces our belief that the Blue Moon project is a high-quality polymetallic deposit.”
McGrath said Blue Moon will be exploring the deposit in greater detail in an effort to identify potential new sulphide zones. He said these potential zones were recently identified through an internal review of the historical work done in the deposit area.
The company continues to move the Blue Moon forward with the hiring of a local community manager, performing topographical surveys, resurveying the historical drill collars, obtaining a three-year drilling permit and recently completing the company’s own drill program. The company will provide an initial update on its drilling program shortly as assays are still pending.
Blue Moon’s numbers were garnered from 1,540 assay results from 82 diamond drill holes, totalling 111,250 feet (33,900 metres) of drilling.
Zinc equivalent (ZnEq)
The deposit in Mariposa County has been noted in terms of zinc equivalent. The ZnEq formula, and the underlying parameters used in its formulation, are set out in the following chart.
The equation to calculate ZnEq is as follows: ZnEq equals (zinc percent times 24.70 plus copper percent times 55.80 plus lead percent times 19.00 plus silver (ounces per ton) times 11.05 plus gold (ounces per ton) times 875.00) divided by 24.70
The metal prices and the recoveries selected represent reasonable estimates of long-term metal prices and potential recoveries of metal in concentrate. The mineral resource estimate is summarized at a range of ZnEq cut-off grades.
The Blue Moon deposit was mined in World War II by the Hecla Mining Company. From 1943-1945, Hecla pulled 55,000 tons at 12.3 percent zinc out of the ground.
The Blue Moon deposit is wholly-owned by Blue Moon Zinc. The deposit is located on a gravel road a short distance away from a paved road in the east-central portion of California.
Blue Moon is planning on moving the project ahead “through to feasibility, permitting and, ultimately, production.”
Full disclosure: Blue Moon Zinc is an Equity Guru marketing client.