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Zinc One Resources Inc.: THE INVESTMENT CASE

Zinc One Resources continues to be impressed at Bongara as it travels towards maiden resource

The company has been moving towards a maiden resource at its Peru project for some time
Zinc One Resources continues to be impressed at Bongara as it travels towards maiden resource
Zinc prices have been on an upward roll recently

Zinc One Resources Inc (CVE:Z) has been nothing if not determined in its pursuit of a first NI43-101 resource at its flagship Bongara mine project in north-central Peru.

And recent encouraging drill results have added to that cause.

Key among these have been from the Mina Chica zone at the property. This is a high-grade area is around 200 metres long in a NW-SE direction and 120 metres wide and is open to the west.

WATCH: Zinc One Resources' looking to grow its Bongará asset, a 'spectacular gem of a project'

"Results from the drill programme at the Mina Chica zone surpassed our expectations and included a new high-grade zinc discovery," said Jim Walchuck, the president and chief executive, who is targeting the release of the maiden resource in the third quarter this year.

"This is a spectacular exploration success and an excellent addition to the Zinc One story."

So what is the Bongara project?

Zinc One got its hands on the asset when it bought Forrester Metals last year in a one-for-5.5 all-share acquisition.

The Bongara zinc mine and the associated Charlotte Bongara zinc project are home to zinc oxide mineralisation occurring over a 2.5 km trend, and much of the area has been subject to sampling from pits and trenches, as well as by shallow drilling.

Historical exploration threw up a resource of up to 1.2 mln tonnes of oxides grading around 21% zinc, although this is not a number that is compliant with modern NI-43-101 legislation.

Bongara was previously a mine in production (between 2007 and 2008) exploiting high grades at surface (150,000 tonnes mined at over 20%) but was shut down due to the zinc price decline and the global financial meltdown.

The historical measured and indicated resource is around 1.007mln tonnes at 21.61% zinc.

Potential of Mina Chica..

In April this year, the firm began to make noises about the potential of the Mina Chica area when it released assays from six holes, which showed as much as  16.5 metres of true vertical thickness with 36.5% zinc in one hole.

Other zones that have been drilled are the Bongarita zone and the Mina Grande Sur. The drillbits at the Mina Grande Centro have now started turning.

Peru a global leader in the mining sector

Peru is the third largest producer of zinc globally and is mining friendly, with legal and tax regimes deigned and supporting the industry. The economy is steadily growing there.

Leveraging the zinc market

The base metal is riding a wave at the moment and is currently at ten year highs of US$1.60 per pound.

It’s the second big price spike since 2000 following record high prices of more than US$2 per pound in late 2006.

The World Bank predicts a more stable picture by 2030, when prices are expected to hover around US$1.09 per pound, giving zinc a strong economic forecast and boosting confidence for junior like Zinc One.

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Zinc One Resources Inc. Timeline

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