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Project Overview:
The Yukon Base Metal Project:
Sedimentary basins globally are richly endowed with large base metal deposits. The Selwyn Basin (Canada), host to the Andrew Zinc Deposit, is known to host 17 base metal deposits with 55 million tonnes of contained zinc and lead metal. This places the Selwyn Basin third globally in zinc and lead contained metal endowment behind the Mount Isa – McArthur Basin and Curnamona Craton hosting the enormous Broken Hill deposit in Australia.
Eight of the twelve largest Canadian SEDEX deposits occur within the Selwyn Basin. The Selwyn Basin remains highly prospective and poorly explored.
Zinc deposits of the Yukon showing the location
of the Andrew Zinc Deposit
(modified from Yukon Geological Survey)
Overland Resource’s Yukon Base Metal Project comprises 502 Mineral Claims covering approximately 100km2 surrounding the high grade Andrew Zinc Deposit. Overland Resources Limited owns a 90% interest in the project.
Since acquiring the Project the Company has completed two diamond drill programmes comprised 144 holes for approximately 26,000 metres. Up to four diamond drilling rigs have been operating on the project simultaneously.
A permitted winter access road exists to enable the cost effective mobilisation of heavy equipment and supplies to site.
Mobilisation along the 2008 winter access road
The Port of Skagway, Alaska provides a year round ice free deepwater port to service the Yukon and has existing concentrate loading facilities available for use.
Concentrate loading facilities, Skagway, Alaska
In 2008, Overland entered into a strategic agreement with a major metals trading house to allow them the rights to sale and market all concentrates produces from the Yukon Base Metal Project. This partnership provides the Company with access to the resources and knowledge of a major industry institution that has global mining, marketing, freight and smelting operations.
Economic Mining Study
An economic mining study completed in May 2009 indicated that the establishment of an open pit ad underground mining operation at the Yukon Base Metal Project would be economically feasible. The study highlighted the potential to establish a low capital cost (US$94 million) and low production cost ($0.43/lb zinc equivalent) mining operation at the Project.
The mining study indicated an undiscounted cash flow of US$210 million (before capital, depreciation, tax and royalties) could be generated. There is considerable potential to improve economies through optimization and further exploration success.
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