Zinco Mining Corporation
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VMS Project Location and Access



Property Location, Definition and Access


Seven mining concessions that define the Cuale VMS Project or "Property" are 100% owned by Zinco's wholly-owned subsidiary, Minera Croesus S.A. de C.V. In an Agreement dated 5 September 2011, the Company purchased 100% of both "San Antonio 2 Fracc. I" and "San Antonio Fraccion II" from Antoñio Briseño Guerra for 250 000 common shares of Zinco Mining Corporation and $100 000.00 US dollars. The remaining concessions that define the property were acquired by staking in the name of Minera Croesus S.A. de C.V. between 1998 and 2011. All of the concessions remain valid for 50 years from the date of title as long as bi-annual mining duties are paid in July and January of every year and minimum annual investment requirements are met. For Zinco's Property, these obligations total about $130 000 USD per year. After 50 years, the concession owner may apply for a second 50 year term. Investments made in excess of the annual minimum may be carried forward into the following year. Expenditures that meet the investment requirements are (Ley Minera, 1992):
  1. Direct mining works, such as ditches, wells, slashes, tunnels and all others that contribute to geological knowledge of the mining claim or the mining reserves;
  2. Drilling;
  3. Topographic, photogrammetric and geodesic surveys;
  4. Geological, geophysical and geochemical surveys;
  5. Physical-chemical analysis;
  6. Metallurgical experimentation tests;
  7. Development and rehabilitation of mining works;
  8. Acquisition, lease and maintenance of drilling equipment and development of mining works;
  9. Acquisition, lease and maintenance of equipment for physical-chemical laboratories and metallurgical research;
  10. Acquisition, lease and maintenance of work vehicles and for personnel transportation;
  11. Works and equipment used for job safety and the prevention of pollution or restoration of the environment;
  12. Facilities for warehouses, offices, workshops, camp sites, dwellings and services to workers;
  13. Acquisition, lease, construction and maintenance of works and equipment related to access roads, generation and conduction of electric energy, extraction, conduction and storage of water and infrastructure in general;
  14. Acquisition, lease and maintenance of equipment for mining, hauling and general services in the mine, and
  15. Acquisition, lease, installation and maintenance of equipment for beneficiation operations and tailings dams.
Non-payment of mining duties or not investing in a mining concession are both causes for cancellation of the concession. However, the obligation to invest can be temporarily suspended for up to three consecutive years in a 10 year period for technical, economic, labor or judicial reasons or a force majeure event (Ley Minera, 1992). To suspend the obligation to invest, it is required to file supporting documentary evidence in lieu of the normal annual investment report.

List of concessions owned by Minera Croesus S.A. de C.V., a wholly-owned subsidiary of Zinco Mining Corporation.
Concession Reason File Number TITLE Title Issue Date Title Expiry Date Surface area in Ha.
EL MAPLE Naricero, San Nicolas, Jesus Marķa E. 3/2/00119 224199 22-apr-05 21-apr-55 1193.4457
EL MAPLE FRACC. 1 San Rafael E. 3/1/00704 224410 04-may-05 03-may-55 5.932
LA DIANA San Juan, San Rafael E. 045/16215 227928 15-sep-06 14-sep-56 272.7251
SAN ANTONIO 2 FRACC. I Grandeza E. 3/1/618 219744 08-apr-03 07-apr-53 22.94
SAN ANTONIO FRACCION II El Rosario, Carmen E. 3/1/617 219743 08-apr-03 07-apr-53 45.66
PEREGRINA FRACC. 1 Down-dip of Jesus Maria E. 45/17487 241308 22-nov-12 21-nov-62 193.3711
PEREGRINA FRACC. 2 San Antonio, Peregrina E. 45/17487 241309 22-nov-12 21-nov-62 38.2426
TOTAL 1772.3165

There are several access roads onto the Property. A country road from Puerto Vallarta to the village of Cuale provides access to the northern part of the Cuale VMS District. Alternatively, Cuale may be accessed from the municipal capital of Talpa de Allende, or from the mine road 34 kilometers south of Puerto Vallarta. Provisions and some supplies can be obtained from Puerto Vallarta or Talpa de Allende. Cattle ranching, logging, and coffee farming (around 1500 metres elevation) are the main economic activities in the region. There is a sawmill operating in the village of Cuale.

The Project area is in the Sierra Madre del Sur. The topography is steep, and elevations range from 2400 metres at the top of Cerro El Canton to about 800 metres in the Arroyo Corazon. Vegetation on the Property is characterized as "bosque de pino-encino". Plants typical of the higher areas are pino, encino, arbutus, zarzamora, palmilla, jarilla, juniper and otatillo. Animals in the Project area include squirrels, rabbits, coyotes, skunks, rats, foxes, deer, wildcats, bats, tejónes, tlacuaches and chichimocos. Larger species such as bears and wolves are now extinct. Important birds are auras, zopilotes, cuervos, urracas and zanates.

The rainy season is from June to October, with intermittent winter rains. In Talpa de Allende, the average annual rainfall is 988 mm. Temperatures range from freezing at higher elevations in the winter to more than 40°C in the valleys in summer. The driest months are March and April. The Property is accessible year-round, but some areas can be cut-off temporarily by rivers in the rainy season.  
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