Horse Spring Zinc Project - Western Australia

Previous exploration drilling at the Horse Spring Zinc Project located in the in the Kimberley District Western Australia returned significant zinc and lead sulphide mineralisation from depths generally less than 100 metres, hosted by limestone in and adjacent to the Linder Hill Fault Zone including:

• HPD1 4m @ 7.65% Zn + 0.42% Pb

• HPD2 26m @ 1.5% Zn + Pb

• HPD3 10m @ 3.0% Zn + Pb

• HD7 4m @ 1.2% Zn + Pb and 4m @ 1.2% Zn + Pb

• HD16 4m @ 1.4% Zn and 2% Pb

Mineralisation at Horse Spring is of the Mississippi-Valley-Type and similar to that currently being mined at the Falconbridge - Teck Cominco Blendevale Deposit (20Mt @ 8.3%Zn and 2.5% Pb) and previously mined at the Cadjebut Deposit (3.2Mt @ 14% Zn and 4.8% Pb) located 35km south-west and 55km south respectively.

Previous exploration by Billiton (Shell Minerals) at Horse Spring was focused on a target of sub-horizontal stratform zinc mineralisation hosted by Upper Devonian platform and marginal-slope carbonate rocks. All significant drilling results from the project have been returned from holes testing for zinc mineralisation hosted within the steep westerly dipping Linder Hill Fault zone. Holes that effectively test the fault zone cover only 525 metres of strike, yet the fault has been mapped over a further 6 kilometres. IP surveying has identified strong to moderate chargeability anomalies coincident with mineralisation these anomalies extend a further 1km south and 400 metres north of previous drilling as well as identifying new targets in the north of the tenement area.

The project requires additional drilling to test for zinc deposits hosted within carbonate rocks cut by the Linder Hill Fault Zone. The target is well defined and warrants significant further exploration effort.

 

Figure 1: Project Location and Geology

 

PacMag Metals Limited has sold to Zinc Co Australia Limited (ZCA) all data and information pertaining to the Horse Spring Zinc Project in the Kimberley District Western Australia.

Subject to its successful listing on ASX of ZCA, 300,000 ordinary shares in ZCA shall be allotted to PMH. ZCA is expected to list on the ASX in May/June 2007.