CSE:PSE 0.025 CAD | FRA:PNX EUR | Zinc: $1.08/lb USD

Pinargozu Zinc Mine

November 22, 2021 Update

Press Release: Pasinex Provides an Update on Its Exploration and Development Activities at Pinargozu and Akkaya

Cautionary Note

The Company has not completed a current technical report that includes a mineral resource estimate as defined by the Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council, and procedures for classifying the reported Mineral Resources were undertaken within the context of the Canadian Securities Administrators National Instrument 43-101 (NI 43-101). The Company has no intention of completing a NI 43-101 compliant technical report. The Joint Venture has not followed accepted quality assurance and quality control procedures with respect to its current drilling program and has not used an independent third-party laboratory for its assay analysis. The Joint Venture uses field handheld X-ray fluorescence analyzers (“XRF”) for zinc assays and grade control in exploration and mining. In addition, assays are completed by an independent third-party laboratory for all of the Joint Venture’s sales.

Highlights

  • The Joint Venture has completed 566 metres of development of an adit at the 541-metre level (the “Fourth-Adit”). In addition, 267 metres of exploration adits, shaft and raise developments have been completed, which are offshoots from the Fourth-Adit. These will allow access for further exploration and development purposes;
  • a total of 2,453 metres of diamond drilling has been completed in 46 underground holes from within the Fourth-Adit;
  • of these completed exploratory drill holes, 12 holes have intersected zinc sulphide mineralization;
  • the Joint Venture applied for and has obtained explosives and mining permits to enable the mining of zinc sulphide product from the Fourth-Adit;
  • 1,424 tonnes of zinc sulphide product have been mined to date from the Fourth-Adit;
  • two sales of zinc sulphide product have been completed, which include some zinc sulphide product mined at the 625-metre level;
  • the first completed sale was for 603 tonnes of zinc sulphide product containing a grade of 48% zinc per tonne, which sold for US$1,048 per tonne;
  • the second completed sale was for 503 tonnes of zinc sulphide product containing a grade of 52% zinc per tonne, which sold for US$1,270 per tonne;
  • the Joint Venture expects it will be able to mine approximately 1,300 tonnes of zinc sulphide product per month for both November and December of 2021;
  • the joint venture is currently preparing a mine plan for 2022 but expects that material mined in 2022 will be predominately zinc sulphide product; and
  • the joint venture will continue to drill exploratory holes to further identify minable zinc sulphide product.


Pinargozu Mine 541 Adit Map View


Pinargozu Mine Long Cross Section NW-SE

Additional Images


Pinargozu Exploration Mine NW-SE Cross Section View


Commencement of the 4th adit


Heads of Mining, Geology, and Safety & Health Departments in Front of the 541 Adit


Development of 541 Adit


Sphalerite Ore in the 541 Adit


Extraordinarily High-Grade Zinc Sulfide Mineralization (50 % Zn)


Almost Pure Sphalerite Averaging Over 50% Zinc with Small Inclusions of Marble


Geology Team, Mine Manager at the Core Yard


Almost 7 meters of High Grade Sphalerite Mineralization (50 % Zn) from Drill Core

Horzum Joint Venture

In the province of Adana, south-central Turkey, there is a 80 kilometre-long corridor between the historical Horzum zinc mine in the south and the historical Ak cal/Belbasi zinc mines near Tufanbeyli in the north. This area is underlain by a northeast-southwest trending belt of carbonate-dominated rocks, the Horzum Zinc Trend (HZT), known to host Carbonate Replacement-type zinc-lead deposits. There are several known historical small high-grade oxide zinc deposits in these rocks but the HZT had never been systematically explored using modern, advanced exploration techniques and models. The potential is strong for discovery of new much larger oxide and sulphide zinc deposits.

Recognizing this potential, Pasinex began acquiring exploration properties in 2012. Late in 2012 Pasinex, through its wholly owned Turkish subsidiary, Pasinex Arama ve Madencilik AS, formed the 50/50 Horzum AS joint venture (JV) with Akmetal AS, a large Turkish mining company and historical operator of the Horzum Zinc Mine. The JV combined the technical expertise of the Pasinex team and the mining infrastructure capabilities of Akmetal AS. Pasinex transferred its exploration properties into the joint venture.

Horzum Joint Venture

The joint venture has a mandate to explore, develop and mine for zinc and lead mineralization in the provinces of Adana and Kayseri, Turkey. The key focus area is the JV properties concentrated along the HZT extending at least 20 kilometres to the north of Horzum Mine.

The Akmetal-owned Horzum Mine produced approximately 1.0 million tonnes of zinc oxide ore grading 20% to 30% Zn from 1974 – 2000. From 1985 to 1997 it produced approximately 420,000 tons of sulphide ore. Ore was shipped to the Kayseri zinc smelter for processing. The Horzum property is not part of the JV but Pasinex controls a 5% interest in the property in exchange for providing exploration, geological and metallurgical consulting services to Akmetal for this project.

The JV acquired the Pinargozu property in 2013 from a private Turkish party for the sum of US$250,000. The Pinargozu license lies immediately to the north and east of the Horzum Mine on the HZT. The property is easily accessible by a gravel road connecting to Highway 815. In 2015, the JV made it a priority focus to develop the Pinargozu Mine in order to use cash flow from the sale of mined ore for development of the mine and exploration.

In 2012 the JV acquired the Akkaya property, located 1.5 kilometre north of Pinargzou Mine along the HZT. In 2015 additional properties were acquired along the HZT.

Geology

Turkey’s geology is very complex and consists of several continental fragments (terranes) which were joined together into a single landmass in the late Tertiary. Turkey is geologically divided into three main tectonic units: the Pontides, the Anatolides-Taurides and the Arabian Platform. Several thousand meters of shallow marine carbonates were deposited over the Anatolide-Tauride terrane during the Mesozoic. The terrane was intensely deformed, partly metamorphosed and intruded by calc-alkaline magmatism during the Late Cretaceous Alpide orogeny.

Turkey Geology

The project area straddles both the Bozkir and Geyik Dagi Units of the Central Tauride Belt portion of the Tauride-Anatolian Terrane. Post-Devonian-age strata overlie these two units in places. All three rock packages are known to host zinc mineralization.

The joint venture properties lie within the 80 kilometre-long corridor between the historical Horzum zinc mine in the south and the historical Ak cal/Belbasi zinc mines near Tufanbeyli in the north. It is underlain by a northeast-southwest trending belt of carbonate-dominated rocks which range in age from Cambrian to Upper Cretaceous. These limestones host reef breccias (which control zinc deposition near Tufanbeyli) and are subject to faults and fractures, dissolution collapse breccias, and lithological transitions (which control zinc deposition at Horzum). These limestones are primary targets for Carbonate Replacement-type zinc-lead deposits.

Carbonate Replacement Deposits (CRD) are orebodies of metallic minerals formed by the replacement of sedimentary, usually carbonate, rock by hydrothermal metal-bearing solutions in the vicinity of igneous intrusions. The mineralogy changes with distance from the intrusive rock. Closest to the intrusion is the copper-gold zone; next is the lead-silver zone, then the zinc-manganese zone. Typically CRD deposits are much younger than their host carbonates. This is in contrast to Mississippi Valley Type (MVT) deposits typically occurring along passive tectonic margins where the ages of the mineralization and the host carbonate are very similar and the ore fluids are typically low temperature (100 °C-150 °C) and have the composition of basinal brines.

The shapes of CRD deposits are often strongly controlled by faults and fractures in the rocks through which the mineralizing fluids flowed resulting in deposit shapes including “chimneys” for deposits with vertical dispositions, and “mantos” for deposits with horizontal, blanket-like orientations. Chimney deposits are often formed closer to their igneous source while manto deposits often occur further away and are defined by a strict stratigraphic control on their distribution, generally within a porous formation within a structural trap site. The igneous link to manto deposit formation is usually not conclusively proven. CRD deposits are notoriously difficult to explore for as there is a sharp contact between high grade mineralization and barren host carbonate rock. Limestone just inches from the mineralization can appear fresh with no alteration or geochemical signature.
Geochemical characteristics of the Horzum and Pinargozu deposit strongly suggest that they are CRD deposits, rather than MVT. It is thought that Pinargozu is at the oxidized manto “top” of what they conjecture could be a larger CRD orebody at depth (see figure below).

Schematic of Carbonate Replacement Deposit

Skarn deposits are formed by direct reaction of intrusive rocks with carbonates and occur in contact with or within the igneous intrusions. No intrusive rocks have been mapped in the JV area to date. However the possibility exists for igneous bodies and skarn deposits at depth.