Estimate: Lik among world's largest

Zazu Metals Corp. May 28 reported completion of a current NI 43-101 resource estimate for the Lik zinc-lead-silver project in Northwest Alaska that confirms it as being one of the largest undeveloped zinc deposits in the Western Hemisphere.

The deposit is located 22 kilometers, or about 14 miles, from the Red Dog mine, the world's largest zinc producer. Teck Resources Ltd. owns and operates Red Dog and is a 50 percent joint venture partner in the Lik Project. Zazu owns the remaining 50 percent and has the exclusive right to obtain another 30 percent interest in the property (for a total of 80 percent) by meeting certain spending commitments by 2018.

Scott Wilson Roscoe Postle Associates Inc. calculated the mineral resource estimate for Lik by constructing a wireframe block model at various cutoff grades for the Lik South deposit, and its offset extension Lik North.

The resource estimate includes more than 3.3 billion pounds of zinc, more than 1 billion pounds of lead and more than 31 million troy ounces of silver in the indicated category for Lik South. It also tallied nearly 1.3 billion pounds of zinc, almost 500 million pounds of lead and nearly 10 million troy ounces of silver in the inferred resource category for Lik North and Lik South.

Lik South is a shallow dipping, near-surface, stratiform deposit that Zazu believes is amenable to open pit mining methods and associated low operating costs. Lik North, however, is deeper, and Zazu plans to mine it underground with access from the bottom of the Lik South pit.

The size, continuity, and near-surface location of the Lik South deposit make it especially attractive for development. As a result, Zazu immediately initiated a preliminary assessment (scoping) study and retained Scott Wilson RPA to perform this work.

The resource estimate was based on results of 204 diamond drill holes, totaling 34,460 meters. The drilling covered 200-foot sections in the Lik South area, with holes mainly spaced 100 feet apart along section lines. The block model was estimated using 50-foot-by-50-foot-by-10-foot blocks, with grade interpolation through ordinary kriging.

Kriging is a geo-statistical method of evaluating mine reserves based on a mathematical function known as a semivariogram.)

Though Zazu said it has a limited number of shares outstanding, no debt, and a strong treasury, the company does not plan exploration drilling this summer.

"The camp will be open, but it's unlikely we will do any exploration drilling this summer," said Matt Ford, Zazu's vice president of corporate development.

Instead, the company will focus on development by continuing ongoing environmental studies as part of future mine permitting through Travis Peterson Environmental; obtaining an analysis by PND Engineers Inc. of the DeLong Mountains port facility to determine modifications required to ship ore from the Lik deposit; and getting an analysis from Lounsbury Engineers of the approximate costs and requirements of corridor routes.

Zazu will then have Scott Wilson RPA incorporate the data into the scoping study.

The junior also plans to convert the contiguous group of 296 unpatented federal mining claims that comprise the Lik property to state claims. The property covers 2,225 hectares, or about 5,362 acres.