After some kind of hibernation, Overland Resources (ASX:OVR) has decided it’s returning to Canada’s Yukon Territory to advance its Yukon Base Metals project. This decision follows the approval of a new five year mining land use permit, issued by the Territory. The company has already completed a resource estimate on three different zones of the project, but the company thinks it will be able to identify new zones along strike of the currently known zinc-lead deposits.

As a reminder, the total resources at the Yukon Base Metals project stands at 12.5 million tonnes at an average grade of 5.3% zinc and 0.9% lead (for a total of almost 1.5 billion pounds of zinc and approximately 250 million pounds of lead). This wouldn’t have been very viable at a zinc price of $0.80/lbs but at a zinc price of $1.05/lbs, the rock value increases to over $140/t. Should additional mineralization be found, the project could benefit from economies of scale which would make it a viable zinc project at the current spot price.

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Disclosure: The author holds no position in Overland Resources. Please see our disclaimer for current positions.

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