China Nonferrous Metals Company has partnered with Metalicity, an Australian resource discovery, development and acquisition company, to develop the Admiral Bay zinc project near the town of Broome on the northwest coast of Australia.

The two have signed a non-binding memorandum of understanding. This could lead to a partnership regarding feasibility studies, development, financing and project construction.

Metalicity managing director Matt Gauci said the agreement with CNFC was an important step in securing a potential partner with the engineering, construction and financing capabilities to develop Admiral Bay.

CNFC president Liu Tongsheng described Admiral Bay as a very large, long-life and technically feasible project with substantial upside. “CNFC has demonstrated its feasibility, development, financing and construction expertise globally on other zinc-lead projects of this order of magnitude and we look forward to working with Metalicity to advance Admiral Bay,” he said.

Metalicity acquired the zinc project from the receivers last year, after the bankruptcy of mining company Kagara.

Metalicity added that it was also in separate discussions with other global resources players and finance providers regarding an investment either in Metalicity, the specific Admiral Bay project, or both.

“These discussions are at an advanced stage and the company will inform the market should these discussions progress to a binding investment proposal in the near term,” Metalicity said in a statement.

The company said it was working on a pre-feasibility study for Admiral Bay involving the refinement of preferred development pathways including the design and budgeting of drilling options as well as the compilation of a new mineral resource estimate for the high-grade zone, which is considered a potential starter for the mine’s development.

Photo courtesy of China Nonferrous Metal.