Zinc One’s Mina Chica zone resource may be ten times larger than expected
Zinc is one of the most important metals in the world. It is the 4th most used metal, behind iron, aluminum and copper. Essential to everything we build, it is used in oil, gas and power-generation, military equipment, automotive and shipbuilding, as well as a million other things that we take for granted. Zinc is also a popular alloy and is even necessary to sustain life, with humans, animals and plants needing it for development and growth.
There will be a large demand for zinc in the future given current projects taking place in Asia. China is the world’s biggest user of zinc, spending more money on infrastructure than the U.S. and Europe combined. Zinc oxide is present in everything from sunscreen to solar cells and nuclear reactors. It’s also big in fertilizer and multivitamins.
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Approximately 50% of the 12 million tons of zinc produced each year go to galvanization of steel where it is processed and applied to coat iron and steel to prevent rust, (because you know rust never sleeps). According to the International Zinc Association, zinc could save the world over $300 billion annually in direct corrosion costs, and another $300 billion annually in indirect costs, as zinc is the cheapest way to prevent corrosion in steel.
Zinc One Resources Inc. (TSXV: Z) has a key (past producing) asset situated in the mining-friendly jurisdiction of Peru, the world’s 3rd largest producer of Zinc. Encompassing 8,000 hectares, the Bongará Zinc Mine is counted among the world’s highest grade zinc deposits, having produced zinc grades greater than 20 percent, from at or near surface, with recoveries over 90 percent. The mine was in production in 2007/08, then the GFC (no, not Georgia Fried Chicken) and decreasing zinc prices caused the mine to shut down. The previous operator had mined at an average rate of 358 tonnes per day for a total of approximately 25,000 tonnes (55.1 million pounds) of zinc metal in those years. Jim Walchuck, CEO stated: “We don’t know of any other deposit that is out there right now in the world that is mining with these kinds of grades. The Bongará deposit has extreme high zinc grades sitting right at surface. If “translated” to a gold deposit, they will be open pit mining the equivalent of Au 15 g/t. Those kind of grades are rare for underground mining operations and almost unheard of for open pit.”
Speaking on the Mina Chica zone at the Bongara Mine Zinc project, CEO Jim Walchuck also states: “We knew that the previous owners never drilled it and a lot of the channel sampling and pit sampling never penetrated below the ore zone, so we had some expectation that it would be bigger than the historical resource, but its ten times bigger. We have had some wonderful spectacular results coming out of there.” Its a gem of a project.
Zinc One Resources Inc. is a Vancouver, Canada based mineral exploration and development company focused on acquiring, exploring and developing zinc projects in the strong mining jurisdiction of Peru, and has a market cap of C$ 21.3 m.
Zinc One provides investors with the opportunity to obtain exposure in the zinc development and exploration sector of the market. This exposure is through the Company’s flagship Bongará Mine Project and the prospective Charlotte-Bongará exploration concessions. Both projects are located in Peru, one of the best mining jurisdictions in the world. With several near term catalysts on the horizon now would be the time to invest.
Matthew Bohlsen holds a Graduate Diploma in Applied Finance and Investment (similar to CFA), and a Graduate Diploma in Financial Planning. He has 30 years ... <Read more about Matthew Bohlsen>