Yukon Zinc AR 05 - Yukon Zinc Corporation

LOGAN DEPOSIT
In April 2003, Yukon Zinc entered into an agreement with
Energold Minerals Inc. to acquire a 60% interest in the Logan
deposit located in south central Yukon. Exploration in the late
1980's defined an Inferred resource of 12,300,000 tonnes
grading 6.17% zinc and 26 g/t silver in the Main zone of the
Logan deposit (Stammers, 1989).
The Logan deposit consists of fracture and vein hosted zincsilver
mineralization within a granitic intrusion. The
mineralization is up to 90 metres thick making it attractive for
open pit mining. A re-estimation of resources using a block
model method was completed by Hatch Associates Ltd. in July
SWIFT PROPERTY
The recently acquired Swift Property is situated approximately
55 kilometres southwest of Logan and covers a 20 kilometre
long belt of anomalous soil geochemistry. Numerous massive
sulphide occurrences and boulders have been identified in till.
2005. Hatch estimated an Inferred resource of 13,080,000
tonnes grading 5.1% zinc and 23.7 g/t silver in the Main Zone.
Previous exploration has also defined low grade zinc
mineralization in the East and West Zones that require more
drilling to better define resources. Drilling in the deeper parts of
the Main Zone includes intersections of up to 9 metres grading
10.07% zinc and 65.2 g/t silver that could be amenable to
underground mining. The deposit remains largely unexplored
at depth and along strike.
The Logan deposit provides an attractive base feed for a zinc
mine. Yukon Zinc is evaluating opportunities for discovering
additional higher grade mineralization to add to the resource
base at Logan.
Massive sulphide and oxide mineralization in the Window/Dan
showing occurs defines at least two distinct units within a
complex sequence of phyllite, schist, calc-silicate rocks, and
marble suggestive of stratabound mineralization. Drill results
from hole SR97-06 include 1.2 metres grading 14.6% zinc and
0.2% copper and 3.62% zinc over 3.6 metres. This second
interval includes 0.87 metre intercept grading 13.4% zinc and
0.1% copper.
These and other showings suggest that the mineralization is
characterisitic of a volcanogenic massive sulphide deposit
environment with has potential for higher grade mineralization
that could be developed in conjunction with the Logan deposit.
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YUKON ZINC 2005 ANNUAL REPORT