Zinc One Resources, Inc. (TSXV: Z) (OTC: ZZZOF) is a Vancouver, Canada-based company focused on the acquisition, exploration and development of prospective and advanced zinc projects in mining friendly jurisdictions. Zinc One’s key assets are the Bongará Zinc Mine and Charlotte-Bongará Zinc-Oxide Project in north-central Peru. Historical production of the Bongará Mine, which was mined from 2007-2008 until a fall in zinc prices shut it down, revealed greater than 20 percent zinc grades and recoveries over 90 percent, all from surface mining. Bongará’s high grade zinc mineralization is considered a rare situation and one that Zinc One management is poised to explore further. The neighboring Charlotte-Bongará Zinc-Oxide Project has multiple at-surface, high-grade drill intercepts providing numerous drill targets.
Zinc One controls both zinc-oxide mine projects, making it the first time a single operator has been in control of the two locations, giving the company a unique opportunity to delineate a substantial high-grade, zinc-oxide resource along a 4 kilometres-long trend. A previous operator produced 55.1 million pounds of zinc, running at 358 tonnes a day. Zinc One has access to all data and technical work dating back to the 1990s and controls a third zinc prospect located in central Peru as part of its portfolio.
The company has also received approval from Peru’s Ministry of Energy and Mines to suspend the mine closure at the Bongará location, which allows Zinc One to utilize the current Environmental Impact Assessment attached to the project for current and future permitting. This critical approval allows the company to take another important step forward in its plans to reopen production at the Bongará zinc-oxide project. Zinc One’s project locations involve open pit/surface mining, requiring less infrastructure and a much better cost ratio than traditional underground mines.
Zinc One is managed by a proven team of exploration geologists and engineers with extensive experience in constructing and operating successful mining operations. The company’s business strategy includes restarting production at the Bongará Zinc-Oxide Mine with exploration of targets along a 6-kilometer strike as well as exploring the Charlotte Bongará Zinc-Oxide Project.
World stockpiles of zinc are at multiyear lows while demand continues to be strong. In 2016, zinc demand became greater than the available supply for the first time in a decade. Zinc is essential for rustproofing steel and is used in a variety of infrastructures. It’s also used to produce batteries, fertilizers, paints, plastics, cosmetics and multivitamins. The International Zinc Association estimates that zinc could save the world over $300 billion annually in direct corrosion costs and another $300 billion annually in indirect costs. Zinc is an invaluable base metal and a strategic priority for many industries.
- Zinc demand predicted to grow steadily in coming years
- Global stockpiles of zinc are at multiyear lows
- Zinc prices doubled since January 2016, soaring to above $3,000 per tonne