Resource Update

 

TIDMZZL 
 
RNS Number : 6361P 
Zeehan Zinc Limited 
27 March 2009 
 

27 March 2009 
 
 
ZEEHAN ZINC LIMITED 
('Zeehan Zinc' or the 'Company') 
 
 
Resources Update 
 
 
 
 
Zeehan Zinc announces that it has received an updated Resource Report from 
Hellman & Schofield Pty Ltd for several deposits from the Comstock Zinc Project 
in West Tasmania that were initially reported in December 2007. 
 
 
The updated Resource Report was completed in November 2008, and details a new 
geological model for the Comstock mineralisation adopted as a result of a 
substantial rethink by Company geologists on the 2006-7 drilling results. This 
work identified a new suite of deposits with coherent resources, including the 
Boss Lower and Upper Sulphide bodies, Watson's Lode and Main Lode, which were 
initially announced on 7th December 2007. In addition another two new resources 
are also reported here, namely the Boss Oxide and the Main Lode Surface 
material. The estimates have been reported using the JORC Code and Guidelines 
and the author, Simon Tear, has the requisite experience to act as a Competent 
Person under the JORC Code. 
 
 
The Boss Lower, Boss Upper and Boss Oxide deposits are now recognised as 
strata-bound features, and account for the largest deposits at Comstock. This 
change in geological thinking has given rise to the recognition of a new 
geological concept and style of mineralisation for West Tasmania. 
 
 
 
 
New Inferred Resources, Comstock Deposit, West Tasmania 
 
 
The estimated resources are tabulated below using a set of mineralisation shapes 
with variable cut off grades and the Ordinary Kriging resource estimation 
method. The estimates exclude any likely oxide portion of the deposits except 
for the Boss Oxide Deposit. Zeehan Zinc proposes to mine the resources reported 
here via an open pit operation and the estimates have been classified according 
to this mining strategy. 
 
 
 
 
+--------------------+---------+-----------+------+------+--------+--------+--------+-----------+ 
|                    |         |           |        Grade         |      Contained Metal        | 
+--------------------+---------+-----------+----------------------+-----------------------------+ 
| Lode               | Cut Off |    Tonnes | Zinc | Lead | Silver |   Zinc |   Lead |    Silver | 
+--------------------+---------+-----------+------+------+--------+--------+--------+-----------+ 
|                    |         |           |    % |    % |    g/t |     Mt |     Mt |       Ozs | 
+--------------------+---------+-----------+------+------+--------+--------+--------+-----------+ 
| Boss Lower *       |   1% Zn | 1,266,343 | 2.95 | 3.48 |   73.6 | 37,357 | 44,069 | 2,998,098 | 
+--------------------+---------+-----------+------+------+--------+--------+--------+-----------+ 
| Boss Upper         |   1% Pb |   125,724 | 1.32 | 2.48 |   23.8 |  1,660 |  3,118 |    96,011 | 
| Sulphide *         |         |           |      |      |        |        |        |           | 
+--------------------+---------+-----------+------+------+--------+--------+--------+-----------+ 
| Boss Oxide         |  0.5%Pb | 1,585,186 | 0.23 | 0.99 |   25.7 |  3,646 | 15,693 | 1,309,945 | 
+--------------------+---------+-----------+------+------+--------+--------+--------+-----------+ 
| Watson's Lode *    |   1% Zn |    28,823 | 3.93 | 1.77 |   21.6 |  1,133 |    510 |    20,019 | 
+--------------------+---------+-----------+------+------+--------+--------+--------+-----------+ 
| Main Lode *        |   1% Zn |    36,210 | 4.05 | 2.02 |   42.9 | 1,467  |    731 |    49,937 | 
+--------------------+---------+-----------+------+------+--------+--------+--------+-----------+ 
| Main Lode Surface  |    None |    19,512 | 0.92 | 1.41 |   42.6 |    180 |    275 |    26,708 | 
+--------------------+---------+-----------+------+------+--------+--------+--------+-----------+ 
| Total              |         | 3,061,798 | 1.48 | 2.10 |   45.7 | 45,441 | 64,397 | 4,500,717 | 
+--------------------+---------+-----------+------+------+--------+--------+--------+-----------+ 
Source:    Hellman & Schofield Pty Ltd (2007, 2008) 
Note:* Previously reported in RNS 07/12/07 
Zeehan Zinc Limited owns 100% of the above resources and is the operator 
Minor rounding errors may occur; use of significant figures does not imply 
precision 
 
 
 
 
Remaining Resources Allison's Lode, West Tasmania 
 
 
An updated resource estimate has also been completed for the Allison's Lode 
based on additional drilling from 2006-2007, and using a more accurate resource 
estimation method. This drilling indicates lower grade material for narrower 
widths at the northern end of the resource and has thus slightly reduced the 
original size of the resource and caused a slight drop in zinc grade. The 2008 
mining of the Allison's Lode has left a remaining resource detailed below. 
 
 
+-----------+--------+--------+-------+-------+--------+----------+--------+--------+ 
|           |        |        |         Grade          |      Contained Metal       | 
|           |        |        |                        |                            | 
+-----------+--------+--------+------------------------+----------------------------+ 
| Category  | Volume | Tonnes |  Zinc |  Lead | Silver |    Zinc  |   Lead | Silver | 
|           |        |        |       |       |        |          |        |        | 
+-----------+--------+--------+-------+-------+--------+----------+--------+--------+ 
|           |   (m3) |        |     % |     % |    g/t |       Mt |     Mt |    Ozs | 
+-----------+--------+--------+-------+-------+--------+----------+--------+--------+ 
| Measured  |  4,500 | 14,850 |  5.37 |  1.10 |   21.0 |      797 |    163 | 10,027 | 
+-----------+--------+--------+-------+-------+--------+----------+--------+--------+ 
| Indicated |  6,250 | 20,625 |  4.21 |  1.24 |   34.7 |      868 |    255 | 23,012 | 
+-----------+--------+--------+-------+-------+--------+----------+--------+--------+ 
| Inferred  |  6,438 | 21,244 |  3.94 |  1.28 |   38.9 |      836 |    273 | 26,572 | 
+-----------+--------+--------+-------+-------+--------+----------+--------+--------+ 
| Total     | 17,188 | 56,719 |  4.41 |  1.22 |   32.7 |    2,501 |    690 | 59,612 | 
+-----------+--------+--------+-------+-------+--------+----------+--------+--------+ 
|           |        |        |       |       |        |          |        |        | 
+-----------+--------+--------+-------+-------+--------+----------+--------+--------+ 
Source:    Hellman & Schofield Pty Ltd (2008) 
Note Zn and Pb Metal content in tonnes; silver as ounces; 
Density of 3.3t/m3 was used; No top cut applied; Ordinary Kriging estimation 
method 
 
 
In line with the Board's focus on resource definition and exploration, all 
mining and processing at the Comstock property has ceased (RNS: 18/08/08).  The 
Board considers it non-commercial to continue with mining and processing until a 
tailored plan can be implemented at the conclusion of additional resource 
definition and exploration work. 
 
 
Balstrup Fault Mineralisation 
 
 
The AIM Admission Document for Zeehan Zinc included a 4.6Mt Inferred Resource 
estimate for the Balstrup Fault Mineralisation.The 2006-7 drilling undertaken by 
Zeehan Zinc has resulted in a substantial rethink of the geology of Comstock. 
 Hellman & Schofield Pty Ltd has the opinion that the Balstrup Fault 
Mineralisation, previously included as part of the Company's Mineral Resources 
at the date of Admission to AIM, should be downgraded to Exploration Potential. 
 
 
Development Properties 
 
 
Oceana 
There has been no development activity in the 6 months to 31 December 2008. The 
Oceana DPEMP Development Proposal and Environmental Management Plan has been put 
on hold in-line with the Board's current focus, and falling metal prices in 
2008. 
 
 
The Oceana mine lease ML 2M/2005 was renewed for 12 months with the intention of 
applying for a retention licence over the area in 2009. 
 
 
Mariposa 
There has been no development activity in the 6 months to 31 December 
2008. Retention Licence application RL1/2008 documents have been received during 
January 2009 for signing, and the licence process is near completion. 
 
 
Updated Resource Statement 
 
 
An updated summary of the Mineral Resources contained within the tenements held 
by the Company is set out below: 
 
 
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+ 
|                   |           |          Grade           |        Contained Metal          | 
+-------------------+-----------+--------------------------+---------------------------------+ 
| Category          |    Tonnes |   Zinc |  Lead |  Silver |      Zinc |    Lead |    Silver | 
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+ 
|                   |           |      % |     % |     g/t |        Mt |      Mt |       Ozs | 
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+ 
| MEASURED          |           |        |       |         |           |         |           | 
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+ 
| Allison's Lode2   |    14,850 |   5.37 |  1.10 |    21.0 |       797 |     163 |    10,027 | 
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+ 
|                   |           |        |       |         |           |         |           | 
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+ 
| INDICATED         |           |        |       |         |           |         |           | 
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+ 
| Oceana1           |   610,444 |   1.24 |  5.30 |    49.5 |     7,549 |  32,367 |   971,365 | 
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+ 
| Allison's Lode2   |    20,625 |   4.21 |  1.24 |    34.7 |       868 |     256 |    23,012 | 
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+ 
|                   |           |        |       |         |           |         |           | 
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+ 
| INFERRED          |           |        |       |         |           |         |           | 
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+ 
| Boss Lower2       | 1,266,343 |   2.95 |  3.48 |    73.6 |    37,357 |  44,069 | 2,996,876 | 
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+ 
| Boss Upper        |   125,724 |   1.32 |  2.48 |    23.8 |     1,660 |   3,118 |    96,213 | 
| Sulphide2         |           |        |       |         |           |         |           | 
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+ 
| Boss Oxide2       | 1,585,186 |   0.23 |  0.99 |    25.7 |     3,646 |  15,693 | 1,309,945 | 
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+ 
| Watson's Lode2    |    28,823 |   3.93 |  1.77 |    21.6 |     1,133 |     510 |    20,019 | 
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+ 
| Main Lode2        |    36,210 |   4.05 |  2.02 |    42.9 |     1,467 |     731 |    49,949 | 
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+ 
| Main Lode         |    19,512 |   0.92 |  1.41 |    42.6 |       180 |     275 |    26,727 | 
| Surface2          |           |        |       |         |           |         |           | 
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+ 
| Allison's Lode2   |    21,244 |   3.94 |  1.28 |    38.9 |       837 |     272 |    26,572 | 
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+ 
| Oceana1           | 1,534,595 |   1.78 |  5.20 |    45.2 |    27,330 |  79,795 | 2,231,522 | 
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+ 
| Mariposa3         |   574,000 |   1.90 |  5.10 |    60.0 |    10,906 |  29,274 | 1,107,395 | 
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+ 
|                   |           |        |       |         |           |         |           | 
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+ 
| TOTAL             | 5,837,556 |   1.61 |  3.54 |   47.25 |    93,729 | 206,524 | 8,869,622 | 
+-------------------+-----------+--------+-------+---------+-----------+---------+-----------+ 
Source: 1Hellman & Schofield Pty Ltd 2007, 2Hellman & Schofield Pty Ltd 2008, 
3SMG Consultants 2006 
 
 
 
 
Exploration 
 
 
Exploration licences EL20/2002 and EL30/2002 were scheduled for renewal in early 
2009 by the government regulatory authority.Significant time and resources were 
put into establishing a solid case to support the application for extensions of 
EL20/2002 and EL30/2002. As part of the application procedure, an exploration 
strategy and expenditure commitment acceptable to Mineral Resources Tasmania 
("MRT") had to be formulated. Following meetings with MRT representatives, and a 
formal application being submitted, the company was informed in December 2008 
that 12-month extensions of EL20/2002 and EL30/2002 would be recommended to the 
Minister. Licence documents have been received by the Company for signing in 
January 2009. 
 
 
Exploration field activities for the period were centred on the Melba Flats 
region of EL20/2002, to the west of Mount Razorback. Five gridlines were cut and 
the lines have been soil sampled and traversed using a ground magnetometer. 
 
 
This field work is being followed up in 2009 with an airborne geophysics program 
over The Company's tenements. 
Ground geophysics, soil geochemistry and 
geological mapping activities are planned over any areas of interest which may 
arise following the results of the airborne geophysics survey. 
 
 
 
 
A comprehensive resource definition and exploration program was adopted by the 
board and commenced in or around July 2008.  The commencement of this plan is 
consistent with the board's newly developed focus on substantiating and 
clarifying its resource position in order to subsequently develop and implement 
a tailored mining and processing plan. The exploration plan and estimated budget 
have been discussed with MRT as part of the Company's commitment to the 
Government in applying for extensions of the exploration licences. 
 
 
Qualified Person's Declaration 
 
 
The information in this announcement that relates to Mineral Resources for the 
Comstock, Oceana & Mariposa deposits is based on information compiled by Mr 
Simon Tear, a full-time employee of Hellman & Schofield Pty Ltd, who is a Member 
of The Australasian Institute of Mining and Metallurgy (MAusIMM) and a geologist 
with over 16 years of experience in the exploration and definition of base metal 
Mineral Resources and has sufficient experience that is relevant to the style of 
mineralisation and type of deposit under consideration and to the type of 
activity which he is undertaking to qualify as a Qualified Person as defined in 
the March 2006 Edition of the AIM Guidance Note for Mining, Oil and Gas 
Companies. Simon Tear consents to the inclusion in this report of the matters 
based on his information in the form and context that the information appears. 
 
 
For further information please visit www.zeehanzinc.com or enquire to: 
 
 
Zeehan Zinc plcc/o Bankside 
Tad BallantyneTel: [phone] 
 
 
Libertas CapitalTel: [phone] 
Aamir Quraishi, Anthony Rowland 
 
 
Bankside ConsultantsTel: [phone] 
Simon Rothschild, Oliver Winters 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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