Investing In Base Metals? Think Zinc
There has been a lot of chatter lately about the copper and zinc prices. The price of zinc isn't too far off from it's 5 year high. There is some talk about shortages in warehouse stocks of both zinc and copper also. So one would think that the rise in the commodity price will one day have an effect on the stock price of zinc miners.
Today we're going to take a look at a zinc miner that already has a mine and is continuing to drill out more resources. Canadian Zinc CZN is a zinc player that owns the Prairie Creek mine. This is a mine that was in the news because of it's location. It is located in the Nahanni Nation park. The thing to remember though is that the mine was there before the area became a park so the mine got sort of grandfathered in and the park boundaies were moved around the mine.
In 2006 and 2007, the Company carried out major drilling and development programs at Prairie Creek including driving a new 600 metre underground decline which enabled a significant underground exploration and infill drilling program to occur. This $18.7 million investment over the two year drilling program confirmed a Measured & Indicated resource classification for a minimum 10 year mine life with the significant possibility of extending the life of the mine. Surface diamond drilling campaigns were initiated in 2010 and continue through 2013 with the purpose of expanding the known resource and confirming a further 1.5 kilometre extension of the Mineralized Quartz Vein structure along with further property exploration.
In March 2015, Canadian Zinc began an exploration diamond drill program from underground drill stations located at the end of of the 930 mL decline. The planned program will be completed on four, 50-metre sections and will comprise approximately 6,000 metres of diamond drill coring over 21 holes. The purpose of this drill program is to convert some of the inferred resources into indicated resources that will subsequently be incorporated into a new mine plan to support a longer mine life.
A 2012 Technical Report indicates that the Prairie Creek Property host Measured and Indicated Resources of 5.43 million tonnes grading 10.8% Zn, 10.2% Pb, 160 g/t Ag and 0.31% Cu, which includes a reserve of 5.22 million tonnes averaging 9.4% Zn, 9.5% Pb, 151 g/t Ag. In addition, the Report confirms a large Inferred Resource of 6.24 million tonnes grading 14.5% Zn, 11.5% Pb, 229 g/t Ag and 0.57% Cu and additional exploration potential.
The company has also acquired a very large land position in central Newfoundland, with several high potential, exploration and development base metal projects. The company share base has just shy of 250 million shares O/S. some of the main shareholders are Zhongrun International Mining and Sprott Asset Management along with insiders.
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