Zone Resources has reported that the Ontario-based Discovery Diamond Drilling has moved a drill rig to the Labrador Trough for commencing the diamond drill program at the Zone Land Package.
Zone holds an option for four iron properties, 41,500 ha in total, in the Labrador Trough, northern Quebec. The drilling program conducted in the 1950s had defined several iron mineralization zones. The properties are located to the northwest part of the Lac Otelnuk project of Adriana Resources, in which Wuhan Iron and Steel has given $120 million for a 60% interest, and Labmag and Kemag projects of New Millennium, which have entered into an option contract with Tata Steel for a development project budgeting $4.9 billion that includes a 750 km slurry pipeline construction.
The company is continuing the logistical planning to commence the diamond drilling program shortly. The winter drill program performed during the 1950s at the existing Zone properties, demonstrates that drilling can be conducted constantly.
Zone has commenced an aggressive exploration to estimate the significant iron mineralization at the properties and it will discover new targets through geophysical surveys, which includes an airborne magnetic survey that was completed recently.
The company and Inuit of Nunavik have an ongoing consultation method. Zone will service out the work activities of the Kuujjuaq community, where the company will attempt to increase the exploitation of the local employment and businesses.
Source: http://www.zone-resources.com/