The junior explorer reported an indicated mineral resource of 2.7 million tonnes grading 8.8 percent zinc equivalent (ZnEq), including 1.4 millions tonnes at 10.8 percent ZnEq. The inferred mineral resource sits at 1.7 million tonnes at 8.2 percent ZnEq, including 0.6 million tonnes at 10.4 percent ZnEq.
“[The maiden resource] demonstrates the high-grade potential of the deposit and immediately ranks Kilbricken as one of the top ten base metal deposits discovered to date in Ireland,” Michael Hudson, Hannan’s chairman and CEO, said.
Kilbricken lies within the Clare zinc-silver-lead-copper property, which consists of nine prospecting licenses covering a total of 32,223 hectares. According to the company, the initial resource estimate is expandable at all scales, from near resource to prospect scale.
“While this resource is substantial, it is also lies open in all directions with excellent potential for expansion. We currently have one drill rig operating a resource expansion program and we will soon be mobilizing additional drill rigs,” Hudson added.
Kilbricken is located in County Clare, Ireland, which has ranked first in the world in terms of zinc discovered per square kilometer since the 1950s.
In 2015, the country was the world’s 10th-largest zinc-producing nation with 230,000 tonnes produced; it didn’t make it into the top 10 in 2016 as important mines in the country shut down due to low prices.
Zinc prices have rebounded since then. In fact, they’ve been on the rise since last November, supported by mine supply worries and declining global inventories.
Most analysts agree that zinc’s prospects for the rest of the year seem bright. In a recent interview with the Investing News Network, Mercenary Geologist Mickey Fulp said he believes the zinc market will prosper in the short to mid-term.
“I think in the short to mid term the zinc market’s going to prosper. We have a zinc concentrate supply deficit, production was down 6 percent last year, so you kind of do the math,” Fulp said.
He currently owns shares in Hannan Metals and referred to Kilbricken as a project with “immense exploration potential in a really big land position.” Click here to watch the full interview.
As of Monday (July 10) at 2:30 p.m. EST, Hannan was trading at $0.40 on the TSXV. The company’s share price has gained 81.82 percent year-to-date.
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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Hannan Metals is a client of the Investing News Network. This article is not paid-for content.