High-grade zinc spurs ZMI to Phase 3 drilling
European base metals explorer, Zinc of Ireland (ASX: ZMI) this morning announced that a Phase 3 diamond drilling program is currently underway at its 100%-owned Kildare Zinc Project in Ireland.
The decision follows high-grade intercepts at the McGregor and Celtic Tiger prospects.
The company is aligning its zinc exploration pursuits with rising zinc prices, which it says are ‘heading north in a substantial and sustainable way’.
The reason for this optimism comes down to the fact that zinc is the world’s fourth most required industrial metal, yet stockpiles are at 12-year lows, while supplies continue to fall due to a shortage of large projects coming online.
In fact, current zinc supplies are similar to those in 2006, which led to a 300% zinc price breakout.
Yet commodity prices do fluctuate and caution should be applied to any investment decision here and not be based on spot prices alone. Seek professional financial advice before choosing to invest.
The first hole, 006, of the Phase 3 programme is underway at the McGregor Prospect where ZMI is seeking to extend mineralisation along strike and eastwards of the spectacular intercept in hole 003 that was announced in June.
More than 4,000 metres have been drilled at the project to date and so far the results have been spectacular, including:
- 3 metres at 13.5% Zn+Pb (McGregor Prospect, June ‘17)
- 65 metres at 11.17% Zn+Pb (Shamrock Prospect, October ‘16)
- 85 metres at 21.1% Zn+Pb (Celtic Tiger Prospect, new discovery July ‘17)
Hole 006, that is currently underway, is the first of several holes planned at McGregor as ZMI aims to extend the thick, high-grade Base of Reef mineralisation.
This Phase 3 drill programme will ramp up in early September when a second drilling rig arrives at the project. This drilling will target the newly discovered Celtic Tiger prospect, which is located just one kilometre west of McGregor.
In the past year ZMI has delivered a Resource, arguably the best zinc drilling intercept of 2017, and a nearby discovery at Celtic Tiger within 200 metres of the surface.
The current JORC Inferred Resource at the Kildare Project is 5.2Mt at 8.6% zinc and lead (7.2% Zn & 1.4% Pb), including 3.5Mt at 10.1% zinc and lead. The current drill programme has potential to lead to a Resource upgrade later this year.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.