It is a prime time to be in the zinc mining business, and Kootenay Zinc Corp. (CSE: ZNK) (OTCQB: KTNNF) is poised to profit in the midst of a continuing global zinc shortage and simultaneously booming prices.
As recently reported (http://dtn.fm/7RcNS), the price of zinc rose to $1.17 per pound and $2,628 per metric ton as of May 2017, representing a 60 percent increase over the previous year’s prices. This exceeded already propitious predictions that a deeper worldwide shortage would send zinc prices soaring as high as $2,500 per metric ton over the course of 2017 (http://dtn.fm/Mgwq5).
The current imbalance in the global zinc market is partly attributed to the 2016 shutdown of a number of zinc mines in China — the world’s largest producer of zinc, as well as its biggest consumer. Major zinc mines in other parts of the world have been experiencing declining ore supplies, as well, which is further credited as contributing to the shortage.
Seeking to cash in on the current global zinc shortage and price hike and to help meet the growing demand, KTNNF recently reported that it is expanding its active search for zinc at its Sully Project, which is located in British Columbia, Canada, just 18 miles (30 kilometers) from the legendary Sullivan Mine. The company recently reported it has completed three exploration holes at the site and that its project team is extending its survey efforts to the property’s west anomaly, including conducting state-of-the-art gravity mapping.
The Sully Project boasts shared geologic features with the famed Sullivan Mine, and the sedimentary rocks that host the Sullivan Mine are present at Sully, representative of different environments of the same basin. So far, geologic data indicates that the Sully Project shares the same stratigraphic level at which the Sullivan Mine was deposited, and it appears to coincide with the East gravity anomaly at the Sully Project. A subtle lead-zinc soil anomaly could reflect leakage up faults and dispersion through thick till and alluvium from an entirely buried deposit. A Cominco airborne geophysical survey has shown two N-S trending magnetic anomalies underground that are up to almost two miles long (1.86), that are approximately 0.62 miles apart, and that are near-coincident with the gravity anomalies.
So far, drilling efforts at the Sully Project have been a very near miss, meaning a strike may not be far away. Initial surveying at the project indicated that drilling conducted in 2004 only narrowly missed a shallow mass there. Work performed since then indicated the target was deep. The target may have been missed by just 100 meters, according to downhole temperature and magnetic field readings taken in 2014. KTNNF has initiated a drilling program and is targeting this East mass, which has been confirmed and better defined by new gravity data.
For more information, visit the company’s website at www.KootenayZinc.com
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