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Increasing zinc and lead prices a bonus for CMX Gold & Silver Corp. (CSE:CXC) Clayton Silver Mine
Increasing zinc and lead prices a bonus for CMX Gold & Silver Corp. (CSE:CXC; OTC:CXXMF) Clayton Silver Mine
Since early 2016, zinc and lead prices have moved steadily higher. The outlook for zinc is especially bullish as several large mines around the world are reaching the end of their lives with no near-term replacements. This is expected to reduce supply over the next several years by as much as 20% in the view of some analysts, while at the same time demand remains strong. In fact, LME zinc inventories have been falling. Recent spot prices have been about USD $1.26/lb, which is more than an 80% increase from one year ago.
For lead, the continuing improvement in the world economy and declining stockpiles have caused prices to rise to a recent spot price of about USD $1.08/lb. This is roughly 50% above levels in late 2015.
Significance for Clayton Project
What is very significant is that previous drilling in hole 1501-A intersected a high grade zone of zinc, lead and silver several hundred feet below the deepest levels of the old mine. An interval of 22 feet of mineralization at the 1425 foot level had grades of silver 4.07 oz/t, lead 5.75% and zinc 5.37% (These results are not NI 43-101 compliant, but have been obtained from Idaho State sources the Company believes are reliable). These results confirm the potential for finding mineralization in the vicinity of the original South and North Ore Bodies with grades much higher than historical production. CMX’s strategy is to move forward with drilling existing mineralized targets and exploration of potential for new zones adjacent to the mine workings.
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