Featured Company /
Zinc One Resources Inc.
The 80 percent run in zinc prices from late in 2016 through the first quarter of 2017 caught the eye of metal traders, with a bull thesis formed on forecasts for increased demand from the U.S. and China, the world’s two biggest economies. A possible shortfall has been hypothosized against the backdrop of Chinese mine closures and suspensions and production cuts in the U.S. and Australia, while U.S. President Donald Trump pledged massive spending on re-building the nation’s roads, bridges and other infrastructure. Zinc often moves in lockstep with steel prices since its largest use is for rust-proofing the metal that is used heavily in construction.
Although there are signs that new production will be able to fill some voids, that production remains off in the distance, leaving stockpiles at London and China sufficient for only less than two weeks of worldwide consumption.
Recognizing an opportunity, founders of Zinc One Resources Inc. (TSX-Venture:Z) (OTCPK:ZZZOF) started mobilizing last September under the directive to build shareholder value by acquiring advanced zinc projects in safe jurisdictions that can be brought to production in the next few years. Zinc One management believes achieving production within that time line will allow the company to capitalize on the positive zinc cycle.
The Vancouver-based company made its first major move in the space in June, completing the acquisition of Forrester Metals in an all-stock transaction. The merger resulted in Zinc One adding the Bongará Zinc-Oxide Project in Peru into its portfolio. The project, as it stands now, consists of the Bongará Zinc-Oxide Mine and the neighboring Charlotte Bongará Zinc-Oxide Project. The properties were previously held by separate owners, but brought together late in June subsequent to Zinc One exercising an option on both properties.
The vast majority of work that has been done on the project revolves around the 8,000-hectare Bongará Zinc-Oxide Mine, which was first discovered in 1974. Exploration by various companies across the years confirmed the property hosts high grade zinc. This was further validated by 17 months of mining the zinc oxides with grades higher than 20% during 2007-2008. This high of a grade is very rare, with only a handful of deposits globally having zinc grades at or above that level (the largest number of deposits are at or below 6%).
As with many other mines during the Great Recession, Bongará was shuttered due to declining demand and falling zinc prices. In 2011, Corianta S.A., the operator at Bongará estimated historical resources (non 43-101 compliant) at 1.01 million tonnes measured and indicated at 21.61% zinc (329,236 tonnes at 22.45% zinc measured, 678,560 tonnes indicated at 21.20% zinc). Another 209,018 tonnes grading 21.18% zinc were Inferred.
Further, the operations at the Bongará Mine means that all the necessary infrastructure is in place. There is access to skilled labor, roads, water, electric, etc.
The bulk of the mineralization in the estimate are concentrated to about a three kilometer north-westerly trending strike. Additional exploration outside the main exploration target, while limited, encountered additional high-grade zinc-oxide mineralization.
This includes the adjacent 3,115 hectare Charlotte project acquired by Zinc One a few kilometers to the northwest of the Bongará Mine. Across 2007-2011, more than 100 drill holes totaling over 8,300 meters have intersected high-grade zinc oxide mineralization, some of which was near-surface and others that graded up to 29.7% (across 11.5 meters) zinc.
A private placement completed in May provided $10.0 million in funding for Zinc One to move forward with restarting production at Bongará while consolidating and redeveloping the Bongará and Charlotte properties into one of the most promising zinc projects in South America. The first major milestone in achieving that goal was met on July 24 with a five-year surface access agreement with the Comunidad Campesina de Yambrasbamba to permit surface access for exploration and development work on the projects. The agreement means that Zinc One can work on updating requisite work to obtain drill permits, with drilling anticipated to begin this month.
With the restart at Bongará, Zinc One will have additional cash flow to meet longer-term goals, namely delineating the blue-sky opportunity across the combined projects.
The company is aiming to have an updated resource estimate by the end of this year showing 1.5 million – 2.0 million tonnes grading in excess of 20%. Following drilling more than 300 holes, management hopes to have a preliminary economic assessment done on the property by early in 2018, with operations permits submitted shortly thereafter to meet its ultimate goal of commercial production in 2020.
The exceptional high grade of mineralization, historic production, exploration and near-term revenue potential de-risk Zinc One’s properties about as much as any project can for an upstart mining company. Given the fact that they could be sitting on one of the highest-grade zinc mines in the world makes this company difficult to overlook and one likely that will catch the eye of Bay and Wall Streets across the years to come.
Corporate Snapshot:
Zinc One Resources Inc.
Stock Symbol:
CA
Stock Exchange:
TSX-Venture
Sector:
Basic Materials
52 Week High:
$0.9000
52 Week Low:
$0.1000
Alt Exchange/Ticker:
OTCPK:ZZZOF
Current Stock Quote / Chart / News: Click here
Information as of
August 17, 2017
The 80 percent run in zinc prices from late in 2016 through the first quarter of 2017 caught the eye of metal traders, with a bull thesis formed on forecasts for increased demand from the U.S. and China, the world’s two biggest economies. A possible shortfall has been hypothosized against the backdrop of Chinese mine closures and suspensions and production cuts in the U.S. and Australia, while U.S. President Donald Trump pledged massive spending on re-building the nation’s roads, bridges and other infrastructure. Zinc often moves in lockstep with steel prices since its largest use is for rust-proofing the metal that is used heavily in construction.
Although there are signs that new production will be able to fill some voids, that production remains off in the distance, leaving stockpiles at London and China sufficient for only less than two weeks of worldwide consumption.
Recognizing an opportunity, founders of Zinc One Resources Inc. (TSX-Venture:Z) (OTCPK:ZZZOF) started mobilizing last September under the directive to build shareholder value by acquiring advanced zinc projects in safe jurisdictions that can be brought to production in the next few years. Zinc One management believes achieving production within that time line will allow the company to capitalize on the positive zinc cycle.
The Vancouver-based company made its first major move in the space in June, completing the acquisition of Forrester Metals in an all-stock transaction. The merger resulted in Zinc One adding the Bongará Zinc-Oxide Project in Peru into its portfolio. The project, as it stands now, consists of the Bongará Zinc-Oxide Mine and the neighboring Charlotte Bongará Zinc-Oxide Project. The properties were previously held by separate owners, but brought together late in June subsequent to Zinc One exercising an option on both properties.
The vast majority of work that has been done on the project revolves around the 8,000-hectare Bongará Zinc-Oxide Mine, which was first discovered in 1974. Exploration by various companies across the years confirmed the property hosts high grade zinc. This was further validated by 17 months of mining the zinc oxides with grades higher than 20% during 2007-2008. This high of a grade is very rare, with only a handful of deposits globally having zinc grades at or above that level (the largest number of deposits are at or below 6%).
As with many other mines during the Great Recession, Bongará was shuttered due to declining demand and falling zinc prices. In 2011, Corianta S.A., the operator at Bongará estimated historical resources (non 43-101 compliant) at 1.01 million tonnes measured and indicated at 21.61% zinc (329,236 tonnes at 22.45% zinc measured, 678,560 tonnes indicated at 21.20% zinc). Another 209,018 tonnes grading 21.18% zinc were Inferred.
Further, the operations at the Bongará Mine means that all the necessary infrastructure is in place. There is access to skilled labor, roads, water, electric, etc.
The bulk of the mineralization in the estimate are concentrated to about a three kilometer north-westerly trending strike. Additional exploration outside the main exploration target, while limited, encountered additional high-grade zinc-oxide mineralization.
This includes the adjacent 3,115 hectare Charlotte project acquired by Zinc One a few kilometers to the northwest of the Bongará Mine. Across 2007-2011, more than 100 drill holes totaling over 8,300 meters have intersected high-grade zinc oxide mineralization, some of which was near-surface and others that graded up to 29.7% (across 11.5 meters) zinc.
A private placement completed in May provided $10.0 million in funding for Zinc One to move forward with restarting production at Bongará while consolidating and redeveloping the Bongará and Charlotte properties into one of the most promising zinc projects in South America. The first major milestone in achieving that goal was met on July 24 with a five-year surface access agreement with the Comunidad Campesina de Yambrasbamba to permit surface access for exploration and development work on the projects. The agreement means that Zinc One can work on updating requisite work to obtain drill permits, with drilling anticipated to begin this month.
With the restart at Bongará, Zinc One will have additional cash flow to meet longer-term goals, namely delineating the blue-sky opportunity across the combined projects.
The company is aiming to have an updated resource estimate by the end of this year showing 1.5 million – 2.0 million tonnes grading in excess of 20%. Following drilling more than 300 holes, management hopes to have a preliminary economic assessment done on the property by early in 2018, with operations permits submitted shortly thereafter to meet its ultimate goal of commercial production in 2020.
The exceptional high grade of mineralization, historic production, exploration and near-term revenue potential de-risk Zinc One’s properties about as much as any project can for an upstart mining company. Given the fact that they could be sitting on one of the highest-grade zinc mines in the world makes this company difficult to overlook and one likely that will catch the eye of Bay and Wall Streets across the years to come.
Forward Looking Statements
This report includes forward-looking statements that reflect current expectations about its future results, performance, prospects and opportunities. Zinc One Resources Inc. has tried to identify these forward-looking statements by using words and phrases such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates," "plan," "should," "typical," "preliminary," "we are confident" or similar expressions. These forward-looking statements are based on information currently available and are subject to a number of risks, uncertainties and other factors that could cause Zinc One Resources Inc.'s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, without limitation, the Company's growth expectations and ongoing funding requirements, and specifically, the Company's growth prospects with scalable customers, and those outlined above. Other risks include the Company's limited operating history, the Company's history of operating losses, consumers' acceptance, the Company's use of licensed technologies, risk of increased competition, the potential need for additional financing, the terms and conditions of any financing that is consummated, the limited trading market for the Company's securities, the possible volatility of the Company's stock price, the concentration of ownership, and the potential fluctuation in the Company's operating results.
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