Irelands zinc mines may boom again as Xstrata buys remaining stake in

first_imgXstrata Zinc Canada has agreed to purchase the remaining 23.6% interest in the Pallas Green property in Ireland belonging to its current joint venture partner in the project, Minco, for $19.4 million. Under the agreement, which is subject to Minco shareholder approval, Xstrata Zinc will become the sole owner of the project at Cahernconlish, Limerick in the Republic of Ireland.Exploration efforts have identified significant zinc mineralisation at the Pallas Green property, which is at the pre-feasibility study stage. As of December 31, 2010 the JORC compliant inferred resource estimate is 25.9 Mt with 7.51% zinc and 1.38% lead at a 4% cut off. Xstrata Zinc Chief Executive Officer Santiago Zaldumbide said: “This acquisition is consistent with Xstrata Zinc’s stated growth strategy and demonstrates our commitment to the Pallas Green project and our belief in its longer-term potential as a zinc operation. If developed, Pallas Green would be well positioned to supply our European smelters based in Spain and Germany. We look forward to working with the Irish authorities and stakeholders to develop these properties.” Other companies with projects in the area may benefit from the move by Xstrata in terms of the momentum behind activity in the region. Connemara Mining is exploring zinc prospective permits at Stonepark, right next door to Pallas Green, in partnership with Teck of Canada.last_img