Zinc of Ireland NL (ASX: ZMI)
With zinc prices being driven higher by Chinese traders and market factors, it may prove to be a good time for canny explorers to re-enter what has been up until recently a dormant industry.
Last month, ZMI Mines of Ireland (ASX:ZMI) pulled the trigger on a high impact drilling programme at its flagship Kildare project in Ireland, one of the most prospective regions for zinc exploration.
In just under a month, ZMI has completed approximately 780m of a total 2000m at the Kildare Project, having drilled a total of three out of four holes.
Assay results are now due in October – only a month away.
Valued at around $15MN, ZMI is now aiming to reach the heights of its much larger neighbours.
Each of ZMI’s neighbours including Canada’s $12 billion capped Teck and London’s $1.4 billion capped Vedanta has seen double-digit, or triple-digit percentage returns over the past 6 months on the back of metals prices recoveries.
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ZMI is hoping for the same sort of projection.
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While Kildare is currently the most prospective of ZMI’s projects, it has six other projects on the go and has found a new zone of sulphide mineralisation, which is expected to give the project an even bigger boost.
On the back of given its location, infrastructure, positive cash position and its ability to hit targets and come in under budget, ZMI may be in a powerful position to head towards production and a potential bump-up in share price also attributable to the broad improvement in zinc prices.