Tags: Full Speed Ahead | Zinc One | Financing | Deal

'Full Speed Ahead' For Zinc One After Financing Deal

'Full Speed Ahead' For Zinc One After Financing Deal

By    |   Tuesday, 06 June 2017 12:14 PM

The Best Investments have LOTS of Blue-Sky Upside…where the market and investors’ imaginations can see huge growth.

I’ve found the Blue-Metal Stock with huge Blue-Sky Upside…in fact, I think it has a great shot at being the next high-grade zinc producer.  You’ll see why in a sec.

That is something I’m convinced the Market will pay up for—in A Big Way.

The stock is Zinc One Resources - TSX’-V:Z, OTC:ZZZOF, FSE: RH33.  Just recently, Zinc One completed the Forrester Metals Acquisition and appointed Dr. Bill Williams as Chief Operating Officer and Director. Together with the acquisition, a private placement financing of $10,000,000 has been closed.

This story is HOT off the press. I see this as a massive “ground floor” opportunity and here’s the reason why.

This is a pure play junior that has a well-defined path to reviving a high-grade zinc mine. "Anyone who wants to participate in an exploration company that's focused solely on zinc – brownfield zinc – needs to look at Zinc One -  what we're really trying to do is get into production as soon as we can," said president and CEO Jim Walchuck, on the phone with MINING.com. "It's an extremely high-grade deposit, we have yet to find one that's better, sitting on surface.

Where exactly is the property located?  This past producing mine is located in northern Peru close to Ecuador.  It was discovered in 1974 and since then various companies have completed exploration programs. The mineralization is concentrated along approximately four kilometers.

The Bongará Mine Project was mined in 2007 and 2008 through open-pit methods. The material was semi-dried at the site, and then shipped 540 kilometers to the coast where it was processed through a Waelz kiln, a processing technology typically applied to flue dust from steel mills to recover zinc. A greater than 60% Zn calcine was made and sold to refineries in Peru and the United States.

Here’s Why We’re Excited (Source)

Resource and Grade

Historical measured and indicated resource totaling 1,007,796 tonnes at 21.61% Zinc and historical inferred resource of 209, 018 at 21.18% Zinc as set out below.

Mining History

Previous operator mined at an average rate of 358 tonnes per day for a total of roughly 148,000 tonnes (55.1 million pounds) of Zinc in 2007 and 2008.

Exploration Upside

On the adjacent Charlotte Bongara project there has been over 8,000 meters of drilling including results of 29.5% Zn across 15.5 meters, 26.1% Zn across 12.5 meters, and 29.7% Zn across 11.5 meter.

Metallurgy

Past production demonstrated the Bongara Mine Project is amenable to straightforward processing techniques with known recoveries greater than 90%.

Location

Peru is a mining friendly jurisdiction with an extensive history of production and well established mining laws and regulations.

Access/Infrastructure

Good road access, new hydro dam under construction.

Strong Indicators

Zinc has been one of the best performing commodities with LME prices hovering around $2,600 per tonne. Zinc prices have soared over 78% since 2016 on the back of shrinking supply and increasingly strong demand from the global automotive sector.

Donald Lindsay CEO of Teck Resources, told investors at an industry gathering in Barcelona, Spain that among the diversified miner's portfolio, it is most bullish about zinc's short term prospects. Teck’s the world’s number three producer of zinc.  They showed a slide at the Bank of America Merrill Lynch Global Metals & Mining Conference that sums up the tight supply demand environment for zinc at the moment.

Scarcity of zinc concentrate has the Chinese forcing to reduce capacity utilization and with the country’s refined output falling to the lowest level in two years in April a step up in imports of refined zinc is expected.  LME data on May 19th showed ‘on-warrant’ or available zinc warehouse stocks falling to 170,200 tonnes, their lowest since October 2008.

CEO Jim Walchuck and COO Bill Williams don’t seem to have any issues raising capital after this $10,000,000 financing.  According to the company’s press release on May 24, 2017, Zinc One intends to commence a drilling program of up to 300 shallow drill holes, subject to obtaining permits under application with the Ministry. This is exciting news! The drilling program is intended to be completed by year end as the drill holes are expected to average around 30 meters. The Company plans to issue an updated resource estimate that they feel can be increased from the existing report with tighter and deeper drilling. If the results are positive, this stock will be one to own.

So to get the best exposure to fast rising demand for zinc, we want to find:

  • ideally a near term producer
  • with a really high grade
  • in a mining friendly jurisdiction
  • that has demonstrated upside potential

And include all my regular “must-have” factors

  • Great management team
  • Ability to raise capital

The opportunity here is potentially massive. Jim Walchuck and his team are going to work as quickly as possible to get this mine back into production and the sky’s the limit!  It’s a ground floor opportunity and it could likely become the world’s next zinc producer.

For an Enterprise Value of just $25 million institutions and retail investors get a cashed up pure play on zinc with a couple of great properties with blue sky potential, you’ve got a near term exploration play that could create a ton of value for years to come.

By the way, we’re long on Zinc One with an investment of over 200,000 shares.

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This piece is an advertorial and has been paid for by Native Ads Inc. One of the Native Ads Inc. owners does own shares in Zinc One. Zinc One has hired Native Ads Inc. to create informational content and this advertorial.  This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this Report should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. We make no guarantee, representation or warranty and accept no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of newsmax.com only and are subject to change without notice. Newsmax.com assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this Report.

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SPONSOR: The Best Investments have LOTS of Blue-Sky Upside…where the market and investors' imaginations can see huge growth.I've found the Blue-Metal Stock with huge Blue-Sky Upside…in fact, I think it has a great shot at being the next high-grade zinc producer. ...
Full Speed Ahead, Zinc One, Financing, Deal
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2017-14-06
Tuesday, 06 June 2017 12:14 PM
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