Xstrata Zinc completes acquisition of Canadian zinc prospects

Xstrata Zinc has closed its acquisition of the Hackett River and Wishbone exploration properties, located in the Western Kitikmeot region of Nunavut, Canada, from Sabina Gold and Silver Corp. (“Sabina”) for a cash consideration of C$50 million.

Under the terms of the agreement, Xstrata will commit a further C$50 million towards exploration on the properties within four years of the transaction’s completion and Xstrata will pay Sabina a royalty on silver produced from the properties. The Hackett River property comprises nine mineral leases totaling 12,250 hectares. The Wishbone area comprises 132 mineral claims covering 107,227 hectares. Exploration drilling in Hackett River has confirmed an NI 43-101 compliant resource of circa 60 million tonnes of ore containing zinc, silver, copper, lead and gold, with approximately 5.2 million tonnes of zinc equivalent, housed within four proximal near surface deposits amenable to open pit mining. Both properties contain significant additional exploration potential. Xstrata Zinc Canada Chief Operating Officer Manuel Alvarez commented: “The closing of this transaction marks an important milestone in our strategy to grow our business in Canada. We look forward to working with local stakeholders in Nunavut in the coming years as this project moves forward.”