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Surrounded by Proven Reserves, Junior Iron Explorer Shares Rise on Latest Drill Report
By: AllPennyStocks.com News
January 25, 2012
With China’s economy set to grow 8.4 percent this year, as compared to the 2.5 percent global growth rate, commodities are expected to hold their own again this year. China ranks amongst the top in the world in consumption of metals. While a lot of focus is placed upon gold, silver and copper, the iron ore industry should also remain in focus as it appears that demand is expanding again after a slide in the second part of 2011. In a report from Credit Suisse Group AG yesterday, the organization stated that steel production worldwide appears to be “stabilizing,” while other industry experts, such as Gavin Wendt, founder and senior resource analyst at Mine Life in Sydney, are calling for iron ore prices to “remain robust” in 2012.
Looking to capitalize on another potential rise in iron ore prices, Vancouver-based Zone Resources Inc. (TSX-Venture:ZNR), an iron exploration and development company with four major projects in the Labrador Trough of Quebec, Canada, looks to be sharpening its drills and expediting projects, according to a flurry of news in January 2012. This is not deciphered through the cracking of a code, the company reported nine days ago that it was evaluating a “range of possibilities” to accelerate exploration and development of its properties as drill results are proving promising.
Zone’s properties are located near Adriana Resources' (TSX-Venture:ADI) Lac Otelnuk Project (4.40 billion tonnes iron indicated; 0.49 billion tonnes inferred at an average grade of 29%) and New Millennium Iron Corp.’s (TSX:NML) KeMag and LabMag Projects. LabMag contains 3.5 billion tons of reserves at a grade of 29.6% iron plus one billion tons of measured and indicated resources at an average grade of 29.5% iron. KeMag contains 2.1 billion tons of reserves at an average grade of 31.3% iron, 0.3 billion tons of measured and indicated resources at an average grade of 31.3% iron.
Being surrounded by properties holding the type of documented reserves shown by their much higher-priced peers shines a light on the potential of Zone Resources’ four properties.
Zone Resources has released a steady batch of drill results in January, including today’s report from diamond drill hole ZR11-07 on its Moore-Ross Mountain property. A previous hole on the property, ZR11-05, intersected 29.98% iron over 85.20 metres, 1500 metres to the southeast of ZR11-07. Today’s reported cut from Moore-Ross Mountain showed an average of 32.54% iron over 167.10 metres. Both holes were collared in iron formation. Other drill reports from Zone have produced similar findings across their properties.
The mining investment community is rallying around ZNR today with shares up nearly 17 percent with over one million shares traded going into the close. Shares have been holding a balanced uptrend since lows of 7 cents were struck in October of 2011 and followed by a rise to 13.5 cents early this month. A retracement to 9 cents appears to be the next stair step in the chart making higher lows, which may be presenting itself as an opportunity before possibly rising to another higher level as exploration continues to prove the worth of their land. Proper due diligence is encouraged.
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