Xstrata Zinc to acquire JV partner's interest in Pallas Green property, Ireland
Toronto and Madrid, 13 July 2011
Xstrata 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 plc, 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 County in the Republic of Ireland.
Exploration efforts have identified significant zinc mineralisation at the Pallas Green property, which is at pre-feasibility study stage. As of December 31, 2010 the JORC compliant inferred resource estimate is 25.9 million tonnes with 7.51% zinc and 1.38% lead at a 4% cut off (8.89% Zn eq).
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.”