TurkPower Corporation Announces Zinco do Brasil Mineracao Ltda. Project Update
NEW YORK, Sept. 27, 2012 /PRNewswire/ -- TurkPower Corporation (TRKP) (the "Company") informed today about its projects acquired in its purchase of Zinco do Brasil Mineracao Ltda. As announced on August 14, 2012, the Company recently acquired 99.9% of Zinco do Brasil Mineracao Ltda. ("ZBM"). ZBM owns 30 mineral rights for a total of 44,665 hectares in the Brazilian state of Minas Gerais. The mineral rights are split between two projects: "Salobro", which consists of 2 mining rights for an area of 1,685 hectares; and "Gorutuba" with 28 mining rights for an area of 42,980 hectares.
Salobro: The mining rights for the Salobro project were purchased from Vale SA, for which Vale SA conducted exploration work including 34 drill holes for a total of 13,159 meters of diamond drilling up to 400 meters deep. The assumptions by Vale and an independent mining consultant estimate for indicated and inferred resources (in situ) of 5.4 million tons and grades of 6.24% Zinc and 1.19% Lead for only 1,000 hectares of the 1,685 hectares total area of Salobro. The Company expects the Salobro reserves to increase by 30 – 50% during the exploration drillings scheduled for Q1 and Q2 of 2013 to prove up reserves to 43-101 standard. The Salobro project is expected to go into production in Q1 of 2016 and to produce in excess of 30,000 metric tons of Zinc and 5,000 metric tons of Lead per year during the mine-life of 10+ years, with an IRR greater than 24% and a payback of 3.5 years from commencement of operation.
Gorutuba: The Gorutuba project consists of 28 mining rights containing an area of 42,980 hectares in total. Geophysical interpretation of the area was developed based on data gained from airborne geophysical survey conducted by the State of Minas Gerais. The study revealed that the geophysical characteristics of the Salobro deposit is highly correlated with seven targets within the Gorutuba project area, showing similar anomalies like Salobro. The extent of the seven selected targets is 17 km and a drill program is scheduled to start during 2013 to confirm each deposit. Initial geochemical studies indicated other anomalies of Copper and Gold within the Gorutuba projects/targets.
About TurkPower Corporation / Zinco do Brasil, Inc.
TurkPower Corporation is a publicly listed company (Ticker: TRKP) in the process of changing its name to Zinco do Brasil, Inc. The Company recently acquired 99.9% of Zinco do Brasil Mineracao Ltda., which owns 30 mineral rights for a total of 44,665 hectares in the Brazilian state of Minas Gerais. The mineral rights are split between two projects: "Salobro", which consists of 2 mining rights for an area of 1,685 hectares; and "Gorutuba" with 28 mining rights for an area of 42,980 hectares.
TurkPower has mining interests in Russia as well as a minority interest in the Kuluncak mine, an iron ore mine in Turkey formerly owned by Exxaro. TurkPower is currently in the process of evaluating its options and defining its strategy regarding its asset in Russia and Turkey.
Certain statements in this news release are forward-looking statements. Words such as "expects", "intends", "plans", "proposes", "may", "could", "should", "anticipates", "estimates", "likely", "possible", "potential", "believes" and words of similar import may identify forward-looking statements. Such statements are based on management's and the Company's independent mining consultant's current expectations, estimates and projections about the companies' businesses, are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict. Actual results could vary materially from the description contained herein due to many factors beyond the control of either of the companies, including, but not limited to, the successful completion of the merger; the combined company's ability to raise the required additional capital to develop its mining assets and to identify other acquisition and/or joint venture opportunities in the mining sector, and to establish the technical and managerial infrastructure necessary to take advantage of, and successfully participate in, such opportunities; future economic conditions; demand for manganese and other minerals the company may seek to extract; political stability; and changes in governmental regulations, and financial capabilities of the Company. Additional information on risks and other factors that may affect the business and financial results of TurkPower and the combined company can be found in filings of TurkPower with the U.S. Securities and Exchange Commission. The Company encourages any current or potential shareholder to read all the public filings before making a decision to invest in the shares of any public company.
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SOURCE TurkPower Corporation