The Conversation (0)
Initial results from the Phase III reverse-circulation drill program at the company’s Lone Mountain project in Nevada continues to expand the mineralized zone down dip as well as towards surface. Here geologist Wayne Hewgill weighs in.
Drill Tracker Weekly is not exclusive to Resource Investing News and is published with permission from Mackie Research Capital Corporation. It highlights drilling results in context with our database of over 10,000 drilling and trenching results. The purpose of this report is to highlight drilling and trenching results that stand out from the pack and compare them to their peer group. This report does not constitute initiation of coverage or a recommendation.
Nevada Zinc (TSXV:NZN)
Price: $0.26
Market cap: $13 million
Cash estimate: $1 million
Project: Lone Mountain
Country: Nevada, US
Ownership: 100 percent
Resources: N/A
Project status: Exploration
- Initial results from the Phase III reverse circulation (RC) drilling program on the Company’s (formerly Goldspike) 100% owned Lone Mountain project in Eureka County Nevada continues to expand the mineralized zone down-dip as well as towards surface.
- The project was initially drilled in 2007 by Aurogin Resources but due to the non-sulphide mineralization, the significance of zinc mineralization was not identified during the drilling program. Subsequent resampling returned 4.6 metres grading 41% Zn but by this time the company was undergoing a re-organization and the work commitments to the underlying vendor were not met. The project subsequently went dormant. Goldspike acquired the project in July 2014.
- The first Goldspike RC drilling results were announced in November 2014 when LM-14-01 intersected 89.92 metres grading 6.22% Zn and 1.34% Pb starting at a depth of 114 metres. Highlights from the current drilling include 118 metres grading 9.58% Zn and 0.74% Pb. The true thickness remains to be determined but based on the current drilling, the Company estimates the zone to average 40 metres in thickness along a 150 metre strike with a 250 metre vertical extent.
- The Company is conducting preliminary petrological work to better understand the carbonate mineralogy of the deposit prior to conducting more detailed metallurgical studies. Non-sulphide zinc projects often present significant metallurgical challenges as many projects have poor recoveries due to the inability to float the complex array of oxide and carbonate minerals as well as zinc rich clays. Successful carbonate zinc projects include the Scorpion deposit in Namibia which utilized a modified SX/EW process similar to those commonly used in copper oxide projects. However, in a hydro metallurgical leach process, the carbonate hosted zinc projects often have high acid consumption due to the carbonate rocks.
Historical discovery hole (2007): 4.6 metres @ 43% Zn
New discovery (November 2014): 89.92 metres @ 6.2% Zn, 1.34% Pb
Current drilling: 118 metres @ 9.58% Zn, 0.74% Pb
Risks Analysis
Data contained in DRILL TRACKER WEEKLY is based on early stage exploration activity. The results are obtained at the very early stages of exploration and therefore, individual results may not be reproducible with additional trenching or drilling, nor may the results ultimately lead to the discovery of an economic deposit. Delineation of a resource body requires an extensive data gathering exercise according to guidelines set out in National Instrument 43-101 before investors can be reliably assured of a competent body of mineralization that may be of economic interest. DRILL TRACKER WEEKLY is designed to highlight individual trench or drill results, which stand out as being materially anomalous and are particularly worth of note – a type of early warning flag for a particular property that warrants further attention. Hence, DRILL TRACKER WEEKLY does not provide a recommendation to buy, sell or hold a specific equity – it is an information reference source to help quantify the meaning and relevance of early stage exploration results.
Relevant Disclosures Applicable to: Drill Tracker Weekly
- The research analyst or a member of the research analyst’s household owns and/or has options to acquire shares of the subject issuer. At the date of this release the author, Wayne Hewgill, owns shares in the following companies: Fission Uranium Corp. (TSX.FCU), Balmoral Resources Ltd. (TSX.BAR)
- Balmoral Resources Ltd. is currently covered at Mackie Research Capital Corp. by analyst Peter Campbell
Analyst Certification
I, Wayne Hewgill certify that the information in this report is sourced through public documents that are believed to be reliable but accuracy and completeness as represented in this report cannot be guaranteed. The author has not received payment from any of the companies covered in this report. This report makes no recommendations to buy, sell or hold. Each analyst of Mackie Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.