Zonia Property: History

Early 1900’s Miners cabin located in French Gulch, directly east of the Zonia Main open pit. Looking easterly.

The Zonia deposit was discovered in the 1880's and numerous companies carried out exploration and development work prior to the 1960s.

• Early 1900s - Shannon Copper Company
• 1916-20 – syndicate including Anaconda Copper Mines and Inspiration Consolidated Copper Company
• 1927 - Hammon Copper Company
• 1942 - U.S. Bureau of Mines and Gold Fields American Development Co.
• 1955-57 - Miami Copper Company

In 1964, McAlester Fuel Company McAlester) obtained the Zonia property and carried out exploration work and an extensive program of short drill holes. After delineation of the Zonia copper deposit and favourable results of pilot leaching studies, open pit mining and heap-leaching began in 1966. Some 7.1 million tons was placed on three asphalt lined leach pads and leached with dilute sulphuric acid. From 1966 to March 1975, McAlester produced 33.3 million pounds of cement copper for a recovered grade of 0.23%. The copper recovery achieved is uncertain because the grade of material placed on the heaps is uncertain, in Scott Wilson RPA's opinion.

In addition to the heap leaching operation, two areas containing about 7.7 million tons of broken material were leached in situ by McAlester for recovery of 2.7 million pounds of copper by 1975.

After the Zonia mine production period, a number of other companies optioned or held the property and carried out exploration and evaluation work.

• 1971 - Homestake Mining Company
• 1977 - Phelps Dodge Corporation
• 1980 - American Selco Ltd.
• 1981 - Nerco Minerals Company
• 1982 - Queenstake Resources Ltd.
• 1983 - Antioch Resources Ltd.
• 1988 - Zonia Company
• 1993-96 - Arimetco, Inc.

In 1996 Equatorial Mining North America, Inc. (Equatorial) optioned the property from the bankruptcy court and in 2000 to 2001 completed 18,243 ft. of reverse circulation drilling on the Zonia property. Mintec, Inc. estimated mineral resources and reserves based on the Equatorial drilling combined in a digital database with results of previous drilling, mainly 85,000 ft. of rotary drilling by McAlester.

In 2004, SGV purchased the property from the court.