The base metals’ complex started the week in negative territory- pushed lower over pessimism in the US markets. Zinc for delivery within three months slipped 0.7 percent to $2,214 per tonne on the LME.
By Leia Michele Toovey- Exclusive to Zinc Investing News
The base metals’ complex started the week in negative territory- pushed lower over pessimism in the US markets. Zinc for delivery within three months slipped 0.7 percent to $2,214 per tonne on the LME. The drawdown in inventories was 925 tonnes at 615,825 tonnes. The metal finds support at $2,192 and resistance at $2,253.
Zinc, along with the other metals, could expect a volatile Monday- with a slew of economic data due later in the day. Economic data releases lined up for Monday include factory orders for August, estimated at a negative 0.4 percent from the positive 0.1 percent seen in July. Pending-home sales for August on a month-to-month basis are forecast to rise 2.1 percent, as compared to the 5.2 percent rise in July. Dismal US factory orders could be overshadowed, however, if pending home sales data shows improvement. A boost could also come by way of bullish Asian equity markets, and an improvement in Eurozone sentiment.
Overseas, Zinc futures gained 0.51 percent to Rs 99.45 per kg on Monday, tracking a firming trend in other base metals. Analysts said a better trend in the physical markets on the back of a pick-up in demand from consuming industries also influenced prices. At the Multi Commodity Exchange counter, zinc for October contract delivery rose by 0.51 percent, to Rs 99.45 per kg, with a turnover of 659 lots. Analysts said a firming trend in base metals in global markets amid US dollar weakness mainly supported the upside in zinc futures here.
Japan’s refined zinc exports for August plummeted 51 percent to 6,330 tonnes, marking its eight-straight month of declines. Taiwan was the preferred destination with 34 percent of total export volumes, followed by China at 21 percent.
Firestone Ventures Inc. (TSXV:FV) is pleased to announce that a surface exploration program consisting of geological mapping and rock and soil sampling at the Company’s Antelope zinc-lead-silver project in Nevada has defined high-grade zinc mineralization over an area 700m by 250m within a larger 4 km long anomalous zinc-lead-silver north-trending corridor. The Antelope zinc-lead-silver property is 75 km southwest of Eureka, Nevada, and U.S.A. on the west side of the Monitor Range at the south end of Antelope Valley. Firestone Ventures Inc. is exploring for zinc-lead-silver resources in Guatemala, and Nevada.
Southern Silver Exploration Corp. (TSX:SSV) has signed a Letter of Intent with a private vendor to acquire a 100% interest in the Cerro Las Mintas project located 70 kilometers northeast of Durango, Durango State, Mexico. The property comprises 17 concessions totaling 10,980 hectares and lies within the Central Plateau of north-central Mexico, one of the most significant silver producing regions in the world. Small-scale mining, which has been active on the property since colonial times, has focused on silver-lead-zinc-rich skarn and replacement deposits localized along a mineralized contact. Drilling by previous operators has confirmed historic mined grades of +150g/t silver and +10% combined lead and zinc over sometimes +5 meter intervals. Southern Silver plans to conduct initial geophysical testing of the property. The company’s goal is to find and develop large precious and base-metal rich deposits similar to recent discoveries in central Mexico including Penasquito. Under the terms of the agreement, Southern can acquire a 100 percent interest in the project by making scheduled payments to a total of US $3,000,000 over a three year period. Initial consideration is a US$300,000 cash payment upon signing of the formal agreement with escalating payments every six months for the term of the option. Southern has secured an exclusive right to the property by issuing a $50,000 deposit while due diligence proceeds.
Zinccorp Resources Inc. (TSX:ZN) has completed its 2010 diamond drill program, on their 100 percent owned Michelle Project in north-central Yukon Territory. The focus of the 2010 drill program was to drill untested targets within two of the fifteen mineralized zones. Ten holes totaling 1034m were drilled at the Blender and Nanny zones. Assays are awaited. Exploration at the Michelle Property has revealed zinc, lead, silver and gallium mineralization in dominantly carbonate and oxide form (with minor lead sulphide) over an area measuring roughly 17 kilometers by 7 kilometers.