Most people know that zinc is a metal with numerous industrial applications. Most of us know that it’s used to galvanize steel, that is, immersing said steel in molten hot zinc – liquid hot magma if you will – to produce a coating which resists corrosion… rust n such.
What some people may or may not know is that zinc is essential for our overall health. We can’t survive without it. Zinc is the second most abundant metal in the body, after iron. The mineral is critical for tip-top immune function, white blood cell formation, egg fertilization, cell division, and… sex drive.
For you over stimulated bivalve fiends, you ever wonder why you can’t stop tossing back freshly shucked oysters? Cuz they’re jam-packed with zinc, of course.
With all of its many uses and applications, it’s no wonder zinc supplies, as measured by warehouse stock levels at the LME (London Metal Exchange) are once again being depleted at a rapid rate. Above ground stocks have been driven down to fewer than twenty-days worth of supply.
A zinc company we really like around these parts…
A couple of weeks ago, Zinc One (Z.V) updated us on progress at their Bongara Project in the mining friendly jurisdiction of north-central Peru.
Quick refresher: Bongara is classified as a Mississippi Valley-type deposit – a deposit type which can yield concentrated levels of zinc and lead hosted in soft sedimentary rock such as limestone and dolostone. The name is derived from historic deposits discovered along the Mississippi River in the United States.
Results from that previous round of news included the following intercepts from their Mina Grande Sur zone…
- MGS18077 – 18.0 metres of 36.0% zinc, from 21.0 metres drill depth.
(true vertical thickness of 15.6 metres from true vertical depth of 18.2 metres).
- MCH18079 – 12.0 metres of 22.7% zinc, from surface.
(true vertical thickness of 9.2 metres).
- MGS18080 – 11.5 metres of 32.0% zinc, from 43.5 metres drill depth.
(true vertical thickness of 8.8 metres from true vertical depth of 33.3 metres)
It’s important to note that while the above intercepts sport exceptional grades, Bongara can go even higher. A few select highlights from weeks past include the following drill hole assays:
- MGS18004 – 9.1 metres of 43.6% zinc, starting at surface.
- MGS18017 – 8.2 metres of 42.7% zinc, from 7.5 metres drill depth.
- MCH18014 – 49.5 metres of 38.7% zinc, from 7.3 metres drill depth.
- MCH18013 – 19.8 metres of 46.8% zinc, from 1.9 metres drill depth.
Just to name a few…
As you can see on the map below, the Bongará Project boasts a number of mineralized zones: Mina Grande (Sur, Centro, Norte), Mina Chica, Bongarita, Campo Cielo and Crista.
For a more detailed look at the company, and a succession of high-grade assays over the past six months, the following articles should help fill in the gaps:
September 6th news…
Another news release, another set of high-grade assays.
This release updated us on 29 of the 64 holes drilled into the Mina Grande Centro zone, holes which tested an area of 125 metres by 50 metres along the northeastern edge of a zone mined by a previous operator.
These holes clearly demonstrate that the near-surface zinc mineralization is open to the northeast, as was indicated by historic drilling and exploration pits.
Highlights from this latest round of news included the following:
- MGC18012 – 31.8 metres of 28.2% zinc, from 18.0 metres drill depth
(true vertical thickness of 22.5 metres from true vertical depth of 12.7 metres).
- MGC18008 – 15.0 metres of 28.9% zinc, from surface
(true vertical thickness of 15.0 metres).
- MGC18023 – 18.0 metres of 26.2% zinc, from 13.5 metres drill depth
(true vertical thickness of 12.7 metres from true vertical depth of 9.5 metres).
- Mineralization at Mina Grande Centro includes zinc oxides, carbonates and silicates hosted by soils, highly-weathered carbonates, and fine- to coarse-grained dolomites, most of which are brecciated.
Commenting on the news, Jim Walchuck, President and CEO of Zinc One, stated:
The Mina Grande Centro drill program successfully confirmed the near-surface zinc mineralization that was left behind by previous mining activity and clearly showed that additional high-grade mineralization has yet to be delineated to the northeast. Along with the zinc-oxide deposits at Mina Chica and Mina Grande Sur, we expect Mina Grande Centro to contribute to the overall resource estimate for the project anticipated to be completed during Q4 2018.
This September 6th news release also goes on to state…
Mina Grande Centro is a part of the Mina Grande zone, one of the three zones of high-grade, near-surface zinc-oxide mineralization along a 1.4-kilometre mineralized trend that was tested by this drill program consisting of 264 holes for 7,930 metres. Drill results at Mina Grande Norte and the remaining drill holes at Mina Grande Centro will be released in the coming weeks.
7,930 meters is a fairly decent sized program by any measure. But at Bongará, where much of the mineralization begins right at or near surface, that 7,930 meters goes a long LONG way.
Drill hole assays from the Mina Grande Norte and Mina Grande Centro zones are on deck.
A highly anticipated resource estimate which will include all 264 holes from this current program is due for release in Q4 of this year. A Preliminary Economic Assessment (PEA) is also scheduled for release within the same timeframe.
As stated in the past, Zinc One management and directors are proven mine builders. If all goes according to plan, mine construction could begin in less than two years.
With approximately 116 million shares outstanding and a $0.15 ticker, the company’s current market-cap of $17.4 M appears dirt cheap.
~ ~ Dirk Diggler
FULL DISCLOSURE: Zinc One is an Equity Guru client. We own the stock.Disclaimer: ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.
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