Finding some upside in the ASX-listed zinc stocks has become a big ask of late.
Pretty much all of them have had a mighty run on the back of zinc’s massive price recovery in response to the closure of same big-name mines after they were mined out, Glencore’s pulling of 500,000 tonnes of annual production from the market pending the return of higher price and China’s environmental crackdown on its domestic industry.
Zinc is now fetching $US1.46/lb. The 54% price gain on last (calendar) year’s average of US95c/lb puts the metal at 10-year highs.
Add in the prospect that rechargeable zinc-based battery technologies will throw out a challenge to lithium-ion batteries in the electric vehicle revolution at some point in the future, and it is little wonder that investors have been all over the zinc producers and explorers this year.
To a point anyway. Some have been over-looked for one reason or another. Venturex (VXR) is a case in point.
Having 3.37 billion bits of paper on issue hasn’t helped the company’s cause. It’s not a pure zinc play either. But there is nothing wrong with having high-grade copper as part of the mix at its Sulphur Springs zinc-copper project, 145km south-east of Port Hedland in the Pilbara.
Sulphur Springs ranks as an advanced development opportunity whose time has come. The surge in zinc prices, and copper’s climb back over $US3/lb, meant that was already the case.
But the real game-changer has been the thick and high-grade copper hits returned from a current infill drilling program of the inferred supergene resource sitting directly above the main volcanogenic massive sulphide lenses at Sulphur Springs.
Recent results included 38.2m at 3.5% copper from 97m downhole and 40.3m at 3.35% copper from 93.7m. In addition, visual inspection of the most recently completed hole (assays pending) indicated a potential thickening of the supergene zone to the west.
Results from the drilling campaign – drilling is also targeting the underlying VMS system – will be fed into an upgraded resource estimate early in the new year, with a decision expected to follow on moving Sulphur Springs into a definitive feasibility study.
The supergene drill results suggest that Sulphur Springs will shape up as a better project than the already good one outlined in a so-called value engineering study (VES) completed by Venturex in February.
Plus, strong drilling results for Zinc of Ireland worthy of more investor attention. Read more +
