Zone Resources has entered into a diamond drilling contract to conduct drilling at its Nunavik district, Northern Quebec-based Labrador Trough iron properties.
The property is located northwest of the Lac Otelnuk project of Adriana Resources, for which $120 M was paid by Wuhan Iron and Steel for a 60% interest, and Kemag and Labmag projects of New Millennium, that had signed an optional contract with Tata Steel for a $4.9 B development project including the 750 km slurry pipeline construction.
The Quebec government has recently granted the drilling permit and the company has signed a drilling agreement with Discovery Diamond Drilling, which has wide drilling experience under Arctic type of climate. The company conducted winter drilling program at the present Zone properties during 1950 and confirmed that the drilling can be executed throughout the year. Zone is expecting to begin the diamond drilling program in the month of August this year.
The company is scheduling for an aggressive summer exploration campaign to assess significant iron-ore zones at the properties and to additionally explore new targets that are being identified by geophysical surveys.