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Iron Explorer Announces Strong Drill Results, Investors Take Notice
By: AllPennyStocks.com News
December 7, 2011
In 2009, the mining industry contributed $32 billion to Canada’s gross domestic product. The breakdown included $7.2 billion in mineral extraction, nearly $10 billion in production and $7 billion in manufacturing. It also resulted in more than $5 billion in taxes hitting government treasuries. There could be worse problems as sometimes having to pay exorbitant taxes is apparently just a product of a strong industry.
Looking to have add its fair share to the nation’s GDP, Zone Resources Inc. (TSX-Venture:ZNR) is a Vancouver, British Columbia-based iron exploration and development company with a focus in the Labrador Trough of Quebec, Canada. Total land controlled by Zone is 41,500 hectares. The company has amassed a collection of four major projects (Girard Lake, Moore-Ross, Bob Lake and Red Knob Hill) in the Trough which are near Adriana Resources’ (TSX-Venture:ADI) Lac Otelnuk Project and the Kemag and Labmag Projects of New Millennium Iron Corporation (TSX:NML). The potential of the other miners’ properties is reflected by Wuhan Iron and Steel Corp. paying $120 Million to Adrianna for a 60 percent interest and Tata Steel signing a $4.9 billion option agreement with New Millennium for development (including a 750 kilometer slurry pipeline).
Historical drilling on Zone’s Moore-Ross property includes a significant hole grading 42.9 percent iron over 197 feet. From a broader perspective, in 37 drill holes the primary iron mineral is hematite and iron grades ranged from 17.25 percent to 44.8 percent. Recent drill results from the Moore claim were released last week which showed that hole ZR11-05 intersected iron formation with an average of 29.98% Fe over 85.20 metres.
Drilling is ongoing for Zone across the claims. Today, news regarding two drill holes were publicized from exploration on the company’s Girard claim group. The Girard claim group covers more than 600 claims with a total land area of 28,238 hectares. An Electromagnetic Survey of the property shows a 75 kilometers strike that is more than two kilometers wide. Diamond drill hole ZR11-09 results were disclosed showing an intersection of an iron formation averaging a solid 35.64 percent iron over 137 meters with samples ranging up to 45.06 percent iron.
Shares of ZNR have been on a wild ride for the last 52 weeks, moving from 8.5 cents upward to highs of 28.5 cents in late April. Since those highs, large swings have been frequent with the value of a share dropping to a new low of 7 cents in October before ending right back where it started a year ago. Today’s news of strong iron findings gave an initial run to the price per share, sending it up to 11 cents at one point, but a slip back to 9 cents ensued. From a trader’s perspective, ZNR has appeal because of a decent amount of liquidity and some nice price swings. Long-term investors may be allured to Zone Resources as well due to its properties regularly producing strong iron resources and the prolific area of the company’s projects. Proper due diligence is encouraged.
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