Yukon Zinc AR 05 - Yukon Zinc Corporation

Wolverine Project Development
The Finlayson District is Canada's newest volcanogenic
massive sulphide (VMS) district and is centrally located in
southern Yukon. The District has the potential to become a
major new mining camp supplying base and precious metals.
Initial exploration in the mid 1990's resulted in discovery of
three significant zinc-lead-copper-silver-gold deposits.
The predecessors to Yukon Zinc acquired a large claim
holding in the Finlayson District following the discovery by
Cominco Ltd. in 1994 of the Kudz Ze Kayah deposit.
Following the discovered of the exceptionally silver-rich
Wolverine deposit in the fall of 1995 the Wolverine Joint
Venture acquired a very large claim holding in the District.
Exploration by Expatriate led to discovery of the Ice copper
deposit in 1996 and Cominco discovered the GP4F deposit in
1997.
Expatriate acquired a 60% joint venture interest in the
Wolverine deposit from Boliden Westmin (Canada) Limited in
the spring of 1999 and acquired Atna's joint venture interest in
2004 giving Yukon Zinc a 100% interest in the Wolverine Joint
Venture lands. Yukon Zinc now owns a 100% interest in 178
square kilometers of the former Wolverine Joint Venture
claims and an additional 517 square kilometres in the
surrounding lands covering much of the favourable
stratigraphy in the Finlayson District.
Exploration continued at low levels in 2005 as the focus shifted
to development activities. Resumption of exploration is
planned for 2007.
WOLVERINE BELT
The discovery of Wolverine in fall of 1995 spawned the
Yukon's largest ever staking rush and the initial exploration
fever resulted in discovery of several new areas of
mineralization that remain largely untested.
The mid-Paleozoic volcanic and sedimentary rocks hold the
promise of hosting large tonnages of high-grade massive
sulphides. Similar volcanogenic massive sulphide districts
have been very productive in Canada and abroad and have
enjoyed long histories of discovery and development.
The Wolverine deposit is a classic volcanogenic massive
sulphide (VMS) deposit hosted in felsic volcanic and
argillaceous sedimentary rocks of probable mid-Paleozoic
age. The favourable strata are exposed over a strike length of
more than 20 kilometers on the Wolverine property with
multiple occurrences of mineralization. Stratigraphic drilling
has defined several target areas warranting additional drilling.
WOLVERINE DEPOSIT
The Wolverine deposit consists of massive sulphides that
occur in two tabular semi-continuous lenses. Drilling from
1995 to 1997 defined a resource in all categories (Westmin
Resources Ltd., 1998) of 6,237,000 tonnes grading 12.66%
zinc, 1.55% lead, 1.33% copper, 371 g/t silver and 1.76 g/t
gold. In early 2006, a new resource estimate was prepared
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YUKON ZINC 2005 ANNUAL REPORT