Accessibility, Climate, Local Resources, Infrastructure and Physiography
Access to the LIK property is by air to an airstrip located on the property. The airstrip is capable of handling large, multi-engine planes. Charter flights may be arranged from a number of sites in northwestern Alaska. The town of Kotzebue, which is located about 145 km from the deposit, is a seaport and is serviced by a regular air service from Anchorage. Kotzebue is the centre for access to the nearby Red Dog mine operated by a subsidiary of Teck Cominco Limited.The nearest location for which climatic data is available is the town of Kotzebue.
The average annual temperature at Kotzebue is -5.8ºC, although this may not be entirely reliable as an indicator for conditions near the LIK property. Seasonal extremes probably range between 25ºC in summer to -50ºC in winter. There is an average of 22.8 cm of rain per year and a snowfall of 1.2 m per year. Snow falls are not extreme, but blowing snow may form significant drifts. Strong winds are common in most parts of Alaska. Currently, diamond drilling is possible at the LIK property between June 1 and October 1. The existing constraint is water, since the drills and the camp currently utilizes surface water.
There are no local resources adjacent to the LIK property. The Red Dog mine, operated by a subsidiary of Teck Cominco Limited, is located about 22 km southeast of the deposit. Potentially, concentrates might be moved along the access road from the Red Dog mine to the port on the Chukchi Sea. This road is owned by the State of Alaska and is available for use by industrial users. The port has a shipping season of about 100 days. The current concentrate storage at the port site is at capacity and further storage facilities would have to be constructed if the LIK property comes into production.
There is a camp located on the LIK property. The camp has been used periodically over the last ten years and Zazu refurbished and expanded the camp in 2007 and 2008. The supply of electric power and workforce accommodation will have to be developed, although generated power and existing facilities are sufficient to meet current program needs.
The exposures of the LIK property are located at about 245 m above sea level. West of the deposit, the land rises steeply to peaks about 700 m above sea level. To the southeast, the land slopes down to the Wulik River where the bottom of the valley is about 215 m above sea level. There is sufficient space for tailings and waste rock disposal, and sufficient water is expected to be available for any proposed processing. Locally, there is vegetation on the property consisting of tundra, grasses and low brush made up of willow, dwarf birch, and alder.
The Company intends to develop a haul road spur connecting the Lik Deposit to the Delong Mountain Transportation System (DMTS). The DMTS is a state owned, 52 mile haul road and port available for use by Zazu. The Company also plans to commence negotiations with NANA Regional Corporation, Inc. ("NANA"), an Alaskan native corporation, to secure land near the port facilities for concentrate storage.
