Mitsui Mining & Smelting, Itochu to Join Zn, Pb Project in Canada

Mitsui Mining & Smelting and Itochu Corporation announced on Thursday they reached formal agreement with Selkirk Metals, which is wholly owned subsidiary of Canadian miner, Imperial Metals Corporation, for joint zinc and lead exploration in British Columbia, Canada. Mitsui Mining & Smelting and Itochu Corporation get 50% interest in Ruddock Creek project for up to C$ 20 million through March 2013.

The exploration area is located in around 500 kilometers northeast of Vancouver. Ruddock Creek identified more than 3 million tonnes of resource in the area. The joint venture of the 3 companies accelerates the exploration to increase the resource to feasible level.

They expect the joint venture could produce daily 2,000 tonnes or annual 700,000 tonnes of ore with 7.2% zinc and 1.5% lead for more than 13 years based on more than 9 million tonnes of resource.

They try to finish the exploration by 2012 to secure sufficient resource shifting to feasibility study. They expect the venture could start the C$ 100-120 million development project as early as in 2014 starting the operation in 2015. They utilize subsidy from Japan Oil, Gas and Metals National Corporation (JOGMEC) for the exploration.