Blackthorn Resources and Glencore International JV delivers enhanced business case at Perkoa

Wednesday, October 19, 2011 by John Phillips

This week's high grade silver assays received from drilling adjacent to the Perkoa zinc ore reserve, looks likely to enhance project economics for expanding the Perkoa mine and increasing production throughput to 1 million tonnes per annum.

Blackthorn Resources (ASX: BTR) and joint venture partner Glencore International Plc (LON: GLEN) have received another boost in the development potential at the Perkoa Project in Burkina Faso, after receiving the latest assays.

Highlights from the final five holes of a 14 hole campaign include:

- 21.8 metres at 191 grams per tonne (g/t) silver and 1.01% lead from 96.7 metres;
- 31.4 metres at 104g/t silver and 2.47% zinc from 79 metres;
- 35.5 metres at 95g/t silver and 0.81% lead from 159 metres; and
- 22.25 metres at 83g/t silver and 0.60% zinc from 58.75 metres.

Importantly, the presence of high-grade silver and base metal mineralisation is consistent with the assumptions used in the enhanced business case for expanding the Perkoa mine and increasing production throughput to 1 million tonnes annually.

The joint venture is a high grade, underground zinc mine that is currently under construction, which is being managed and operated by Glencore which has a 50.1% interest, with Blackthorn 39.9%.

The confirmation of high grade silver and lead mineralisation along strike and adjacent to the existing ore body adds significant upside to the project, supporting the proposal by Glencore to evaluate an investment case to expand the mine, increase production and extract silver/lead concentrate into the production stream.

Scott Lowe, managing director of Blackthorn, commented, “The final positive assay results from Perkoa are consistent with the assumptions used in the enhanced business case proposed by Glencore.

"The discovery of high-grade silver adjacent to the Perkoa zinc ore reserve provides further confidence that the business case for Perkoa can be improved to provide increased value to stakeholders.

"The company is now thoroughly reviewing the technical and financial details to consider these improvements going forward.”

Glencore test work

Glencore is currently testing 400 kilograms of core material to verify estimates of recoveries and metallurgical properties.

The processing circuit is also being reviewed by Glencore to include the extraction of a separate silver/lead concentrate product.

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