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Major Zinc-Lead-Silver-Copper Feeder Fault Zone Intersected
Chinook Zn-Pb-Ag-Mn-Cu Prospect
- The top of a large-scale sub-vertical feeder fault zone intersected in drill-hole EHRC136 has returned a broad zone of mineralisation (84m @ 1.84% Zn + Pb from 151m – mineralised section) with multiple intersections. Results are:
- 37m @ 3.25% Zn + Pb, 7.18 g/t Ag from 196m including
- 10m @ 6.57% Zn + Pb, 16.24 g/t Ag from 200m
- Includes 1m @ 17.1% Zn + Pb, 20.9 g/t Ag from 202m
- 16m @ 2.54% Zn + Pb, 4.80 g/t Ag from 214m
- and 1m @ 5.08% Zn + Pb, 10.4 g/t Ag at end of hole (234-235m)
- 10m @ 6.57% Zn + Pb, 16.24 g/t Ag from 200m
- 37m @ 3.25% Zn + Pb, 7.18 g/t Ag from 196m including
- Within this broad zone of Zn-Pb mineralisation, significant copper and silver returned:
- 4m @ 1.54% Cu with 6.10% Zn + Pb and 23.60 g/t Ag from 204m
- The discovery of significant copper and silver in a northwest trending 1.7km long feeder fault zone at Chinook supports the interpretation of metal zonation within the Earaheedy Project area, with copper reflecting the “hotter” portion of the system
- The potential for deeper large-scale Cu-Zn-Pb-Ag deposits below the extensive unconformity style mineralisation is high, underlining the Earaheedy Project’s world class base metal credentials
- Ongoing RC scoping drilling results at Chinook include:
- 8m @ 3.67% Zn + Pb, 4.10 g/t Ag from 74m (EHRC297)
- 8m @ 3.65% Zn + Pb, 8.03 g/t Ag from 128m (EHRC197)
- 17m @ 2.91% Zn + Pb, 2.29 g/t Ag from 110m (EHRC206)
- 5m @ 4.54% Zn + Pb, 4.24 g/t Ag from 110m (EHRC113)
- 6m @ 3.48% Zn + Pb, 37.00 g/t Ag from 59m (EHRC159)
- 5m @ 5.53% Zn + Pb, 3.56 g/t Ag from 79m (EHRC159)
- Chinook’s mineralised footprint is 4.1km along strike and 1.9km down dip and remains open in all directions
Navajoh Zn-Pb-Ag Prospect
- Located 4km southeast of the recent Tonka Discovery, first pass drill scoping on a single traverse intersected significant flat lying, northeast dipping unconformity related Zn-Pb-Ag sulphide mineralisation similar to the Chinook and Tonka Prospects. The first round of RC drilling results include:
- 5m @ 6.38% Zn + Pb, 6.3 g/t Ag from 123m (EHRC280)
- 3m @ 6.15% Zn + Pb, 10.63 g/t Ag from 132m (EHRC281A)
- 4m @ 4.18% Zn + Pb, 3.57 g/t Ag from 106m (EHRC291)
- 9m @ 2.75% Zn + Pb, 2.71 g/t Ag from 157m (EHRC285)
Earaheedy Project - Potential World Class Base Metal System
- Since the Chinook discovery in April 2021, scoping drilling has significantly increased the overall metal budget and delineated multiple styles of mineralisation within the small portion of the Earaheedy Project that has been tested. The recent discoveries of Tonka and the Major Feeder Fault Zone at Chinook, encouraging first pass results at the Navajoh Prospect, have once again highlighted the world class potential of this Zn-Pb-Ag-Mn-Cu epigenetic base metal system
Rumble Resources’ Technical Director Mr Brett Keillor said:
“The discovery of significant copper (>1%) with silver mineralisation at the top of a major feeder fault system along with high grade zinc and lead (up to 17.1% Zn + Pb (EHRC136)) at Chinook highlights the potential for a very large- scale zoned base metal system. The copper mineralisation supports the evolving geology and ore deposition model (see image 8) with respect to feeder fault zones reflecting higher depositional temperatures.
“Ultimately, the flat lying regionally extensive unconformity related zinc-lead-silver (manganese) mineralisation that RumblehasdelineatedattheChinook,TonkaandnowNavajohProspectspotentiallyrepresentsthelargeoutermetal halo zone(s) of a world class base metal system that lies within the Earaheedy Project and underlying geological formations.”
Click here for the full ASX Release
This article includes content from Rumble Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Zinc Price Forecast: Top Trends for Zinc in 2025
Zinc saw strong performance in 2024, but was based on speculation rather than supply and demand fundamentals.
Zinc is predominantly used to make galvanized steel, which is destined for the construction and manufacturing sectors. The past several years have seen these industries largely depressed due to high inflation and high interest rates.
What helped the base metal over the past year is that weak demand was met with weak mining supply.
What could a new administration in the White House or new economic stimulus measures in China mean for zinc markets? Which factors should investors be considering in 2025?
How will Trump's return impact the zinc market?
One of the big stories of 2025 is US President-elect Donald Trump’s return to the White House. This event could have a broad impact across several industries and significant implications for the resource sector.
Trump ran on a platform with conflicting outcomes. On one hand, he promised improved permitting timelines for projects costing above US$1 billion, which could make the US more attractive to companies seeking new base metal projects.
One such project that may be supported by improved permitting is South32’s (OTC Pink:SHTLF,ASX:S32) Hermosa project near Tucson, Arizona. The project has already seen improved permitting timelines through the US Federal Permitting Improvement Steering Council, and at over US$2 billion in cost, it would also qualify under the proposed change in permitting from the incoming administration.
Additionally, his promise to free up federal lands for new housing could be a boon for zinc producers as it would mean greater demand for galvanized steel products. The question is how much and how fast would new housing starts be available?
On the other hand, his platform also heavily favored imposing new tariffs, which could add fresh inflationary pressures to the economy.
While it’s still uncertain if there will be any carve-outs for certain industries, higher costs for materials destined for homebuilders could significantly weaken demand for new homes regardless of the federal support the administration makes available.
In an interview with the Investing News Network, Daniel Smith, head of research at Amalgamated Metal Trading (AMT), said China will be the biggest problem with imposing new tariffs.
“What’s happened (in 2024) is that China’s had very weak domestic demand for a lot of base metals, but it’s been saved by the export side, so they’ll come under threat more next year with the tariff barriers going up,” he said.
Smith also suggested that there may not be much concern over the proposed tariffs, saying, “Trump’s bark is worse than his bite, so I don’t think it’s going to be particularly bad.” However, Smith noted that China would be exposed regardless if the administration ultimately chooses to raise tariffs.
This was backed up by AMT Insight research shared by Smith on January 9. The group pointed out that the president has limited power to drive markets, and there may be a disconnect between his rhetoric and the policy he can implement as president. Bigger factors for setting prices are likely to be global in nature.
Even so, Smith implied that China is already working to mitigate its risk of incoming tariffs by expanding manufacturing in places like Mexico and Vietnam. This would allow it to avoid the higher prices that will be imposed on goods produced directly in China.
For many base metals, though, he points out that, given how large a segment of the sector they control, it's very hard to avoid materials coming from China, which has led to some concern about increasing domestic supply.
“It’s very difficult to build new smelters. So, China normally produces a lot of metal but also manufactured goods. The typical route is manufactured goods end up in the US, so there’s been some attempts to build out new capacity in the US, but it's really very slow,” Smith said.
What is the supply and demand situation expected to be like?
Tom Rutland, a senior analyst with CRU London, shared Smith and AMT’s viewpoints. In an email to INN, he said tariffs were unlikely to significantly affect zinc markets.
“By far, the biggest implications of the tariffs will be on US premia and the potential knock-on impact they will have on US zinc demand. For now, we do not expect it to impact zinc supply in any way,” Rutland said.
Zinc supply and demand in 2025
The prediction for 2025 is that supply and demand will remain relatively the same as last year.
CRU expects mining supply to grow moderately, at 1.9 percent year over year, with a slight increase in refined output of 0.3 percent. Meanwhile, the group expects demand to grow at 0.3 percent.
Some of this increase may come from Russia as the Overnoye mine in eastern Siberia is expected to start production in 2025.
The mine was originally slated to begin ramping up production in late 2023 but stalled after a fire destroyed critical equipment. Production was reported to have started in November 2024, but Rutland is skeptical.
“Replacing the damaged equipment was complicated by the sanctions imposed on Russia, meaning the mine had to replace the equipment with domestic technology, which we believe is unlikely to have been possible to have achieved to a high standard over such a short time frame,” he said.
Rutland also doesn’t see it making a substantial contribution to zinc supply in 2025 either.
Once the mine is fully operational, it will add an additional 600,000 metric tons of zinc concentrates per year, accounting for 4.5 percent of total zinc production.
Another mine that may begin to ramp up in 2025, is the Xinjiang Huoshaoyun lead-zinc mine in China. The project has also faced significant delays due to terrain and weather.
“It’s a very large mine in Xinjiang province, which is an extremely difficult place to do mining. It’s very high and subject to extreme weather conditions like sand storms, so it’s been quite a challenge to ramp that mine up as well,” said Smith.
The mine has reserves of over 21 million metric tons and, once in operation, will be the sixth-largest lead-zinc mine in the world.
Investor takeaway
Even though zinc performed well in 2024, its gains weren’t based on supply and demand fundamentals. The market saw weak supply met by weak demand. Barring any rebound in the Chinese or European construction and manufacturing sectors, conditions in 2025 are expected to continue.
For his predictions, Rutland sees the price of zinc remaining flat in the new year and expects it to average US$2,850 per metric ton, with concentrates and refined markets in balance.
Smith shared a similar sentiment with the supply and demand in 2025 but was more optimistic, suggesting the price for zinc could push up to the US$3,300 per metric ton range.
Don’t forget to follow us @INN_Resource for real-time news updates.
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Group Eleven Resources is a client of the Investing News Network. This article is not paid-for content.
The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Zinc Stocks: 4 Biggest Canadian Companies in 2025
Zinc prices gained more than 16 percent in 2024. While the metal's value has trended down in the first week of the new year in 2025, experts agree zinc's long-term fundamentals are healthy.
Many base metals have been hit by weakened demand in recent years due to sticky inflation and higher interest rates, and zinc is no exception. Zinc supply has also faced pressure from higher mining and refining costs, causing some major zinc mines and smelters to suspend operations, with more possible if the current economic situation continues. Once demand rebounds along with the economy, stunted demand may once again push zinc prices higher.
For investors interested in zinc, the Investing News Network has gathered the biggest TSX- and TSXV-listed zinc mining companies by market cap. The list below includes zinc miners and explorers, as well as companies pursuing zinc as a secondary metal.
Data was gathered on January 10, 2025, using TradingView’s stock screener, and only zinc stocks with market caps greater than C$50 million at that time were considered. Read on to learn more about their operations and plans.
1. Teck Resources (TSX:TECK.A,TSX:TECK.B)
Market cap: C$31.79 billion
Share price: C$60.87
Teck Resources is a major global polymetallic mining company, as well as one of the top zinc producers in the world. It produced 644,000 metric tons (MT) of zinc in concentrate in 2023, with 539,800 MT coming from its Red Dog zinc mine in Alaska. The remaining 104,200 MT came from Teck's 22.5 percent share of zinc production from the Antamina copper-zinc mine in Peru.
Total production guidance for 2024 is set in a range of 565,000 MT to 630,000 MT. As of September 30, 2024, Teck's zinc production for the year totaled 551,000 MT.
The company also owns the Trail operations, which it describes as "one of the world’s largest fully integrated zinc and lead smelting and refining complexes." Located in BC, Canada, the Trail operations produced 266,600 MT of refined zinc in 2023, with 240,000 to 250,000 MT of the material expected in 2024.
The Trail operations was the first standalone zinc-processing site to receive the Zinc Mark verification. "To achieve the Zinc Mark, Teck’s Trail Operations was assessed and independently verified against 32 responsible production criteria including greenhouse gas emissions, community health and safety, respect for Indigenous rights and business integrity," the company explained in a press release in 2023. In February 2024, the Red Dog mine also earned the Zinc Mark for environmentally and socially responsible production practices.
Teck pays a quarterly dividend to its shareholders. On December 31, the company paid out a dividend of C$0.125 per share.
2. Emerita Resources (TSXV:EMO)
Market cap: C$287.97 million
Share price: C$1.14
Emerita Resources has a portfolio of high-grade, large-scale polymetallic projects covering more than 26,000 combined hectares in Spain’s Iberian Pyrite Belt. The company’s flagship asset is the Iberian Belt West project, which hosts three massive sulfide deposits: La Infanta, La Romanera and El Cura.
Emerita released a mineral resource estimate for Iberian Belt West in May 2023. It finished environmental baseline studies the following month, and completed the required supporting documentation for its mining license application in December.
As for its work in 2024, the company released Phase 2 metallurgical testing results for the La Romanera and La Infanta deposits in October. The results demonstrate that commercial-grade copper, lead and zinc concentrates can be obtained from both deposits.
Drilling is underway at the El Cura deposit to establish a mineral resource estimate with test work to follow. In July, the Andalusian government granted Iberian Belt West a declaration of strategic interest, which will streamline the process of moving the project through development. Results released in early December showed that drilling at La Cura intersected 13.15 meters in massive sulfides grading 3.3 percent zinc, 1.1 percent copper and 1.1 percent lead.
3. Fireweed Metals (TSXV:FWZ)
Market cap: C$263.32 million
Share price: C$1.44
Fireweed Metals is a critical metals company whose flagship Macmillan Pass zinc project is located in Canada's Yukon. In 2023, the company acquired the Gayna River zinc project in the Northwest Territories and the Mactung tungsten project, which is adjacent to Macmillan Pass and straddles the border between Yukon and the Northwest Territories. According to the company's website, Mactung "hosts the world's largest high-grade tungsten deposit."
Even with these new assets, the company still has a strong focus on Macmillan Pass. In fact, in November 2023, the Fireweed team, led by Dr. Jack Milton, the firm's vice president of geology, received the 2023 Association for Mineral Exploration H.H. “Spud” Huestis Award for its work at the Macmillan Pass property.
Fireweed's best drill intersection to date from Macmillan Pass' Boundary zone includes 143.95 meters true width at 14.45 percent zinc, including 28.71 meters at 25.52 percent zinc. In June 2024, the company launched a 14,000 meter summer drill program, billed as the largest regional exploration campaign ever at Macmillan Pass. Subsequently, in September it released an updated mineral resource estimate for the Tom and Jason deposits, as well as the inaugural resource estimates for the Boundary Zone and End Zone deposits at the project.
4. Trilogy Metals (TSX:TMQ)
Market cap: C$246.18 million
Share price: C$1.57
Trilogy Metals is focused primarily on copper, zinc and cobalt at its Alaskan Upper Kobuk projects, which are held by Ambler Metals, a joint venture operating company owned equally by Trilogy and South32 (ASX:S32,OTC Pink:SHTLF).
Its most advanced zinc project is the Arctic copper-zinc-lead-gold-silver volcanogenic massive sulfide project, which is in the feasibility stage and has proven and probable reserves of 43.44 million MT grading 3.12 percent zinc.
In addition, early-stage field work at the company's wholly owned Helpmejack project in Alaska's Ambler Schist Belt outlined two target areas prospective for volcanogenic massive sulfide and shale-hosted zinc deposits.
Trilogy had been focusing on improving access to the region with its Amber Access project, but it was rejected by the US Bureau of Land Management in June 2024 due to the impact the proposed road would have on the environment and communities in the region, which has seen little development.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Zinc Price 2024 Year-End Review
Zinc was among the best-performing base metals in 2024.
It experienced a 13 percent gain, rising from US$2,621 per metric ton (MT) to US$2,979 by the end of the year.
Like copper, zinc faced concentrate shortages in 2024. This situation has led to curtailments at Chinese refiners, which have been forced to compete for limited raw material. Large purchases from exchange warehouses have exacerbated the situation, reducing the amount of refined zinc available to the broader market.
What other factors impacted the zinc market last year? Read on to find out.
How did zinc prices perform in 2024?
In the first half of 2024, the zinc market reacted to fallout from Q4 2023 production cuts.
An oversupply situation that drove prices down at the end of 2023 forced operators to curtail output, as high costs made production unsustainable. However, these cuts had little effect, and by the end of the first quarter, aboveground supplies at London Metal Exchange (LME) warehouses had surged to over 270,000 MT.
That supply/demand backdrop provided opportunities for some companies — in early April, Canada's Teck Resources (TSX:TECK.A,TECK.B,NYSE:TECK) was able to strike a deal with Korea Zinc (KRX:010130) that will see Teck pay US$165 per MT for treatment charges — that's the lowest amount since 2021 and a 40 percent discount over 2023.
In Q2, a price run failed to maintain momentum, as the market lacked the fundamentals to sustain its rise.
“Risk-on investor buying led to a sharp rally in zinc prices in April and May, as bullish sentiment on future copper demand related to the energy transition and AI data centres boosted the LME basket of metals,” Helen O’Cleary, zinc market specialist with CRU Group, wrote to the Investing News Network at the time.
Higher zinc prices came alongside speculation of a US Federal Reserve interest rate cut and renewed hope that rule changes for the Chinese housing markets would boost zinc’s fortunes.
However, by the end of Q2, the Chinese housing market had failed to improve — in fact, the slowdown in the sector had accelerated, with the value of new home sales in July slipping 19.7 percent from the same period one year earlier.
A Fed rate cut also didn’t materialize, with the expectation of when it would happen pushed back to July and then September, when the central bank ultimately made a jumbo-sized 50 basis point cut.
Zinc price, H2 2024.
Chart via Trading Economics.
As H2 began, the price of zinc was US$2,928.50, slightly off its first-half high of US$3,139.50 set on May 21. The metal continued to decline as July wore, falling to its H2 low of US$2,581.50 on August 7.
The next two months saw zinc experience significant volatility. It reached a peak of US$2,943 on August 27, slipped back to US$2,712 on September 10 and then rebounded to a yearly high of US$3,198 on October 2.
Zinc remained rangebound above US$3,000 for much of Q4. It fell below that mark on November 8, but by November 25 it was once again trading above that level. Zinc ended the year at US$2,978.50 on December 31.
What factors impacted the zinc market in 2024?
The most significant contributor to zinc's price rise in H2 was the lack of concentrate available to Chinese refiners, which are responsible for more than half the global supply of refined zinc. This resulted in increased competition, with some smelting operations reducing their treatment charges to under US$0 per MT.
Ultimately, 14 processors agreed to curtailments that would reduce their 2024 ore demand by nearly 1 million MT.
Despite the cuts, Reuters columnist Andy Home wrote at the end of August that the global refined zinc market was in surplus by 228,000 MT during H1, with much of that material finding its way to LME warehouses.
Also important in H2 were several large purchases of refined zinc from LME warehouses. Gains were fueled after 106,775 MT were removed from the LME network, leaving just 154,125 MT available, the lowest since November 2023.
At least some of the metal seemed destined for Trafigura, a leading trader and refiner of the metal, but the company declined to comment on the purchase. The move is reminiscent of Citi's (NYSE:C) zinc purchases from LME stockpiles during the second half of 2023 — the firm requested delivery of 40,000 MT of zinc at the time.
For now, the market remains weak on the demand side. More than half of refined zinc is used in the production of galvanized steel destined for the construction sector, which has been weak in China and Europe.
A raft of new stimulus measures in China have yet to affect the broader economy, and the country’s real estate sector is still reeling from the collapse of top construction firms.
Meanwhile, in Europe, the construction sector has been affected by the dual impact of high inflation and high interest rates. With the post-pandemic outlook coming into better balance, the industry is expected to rebound in 2025.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Kipushi Zinc Mine Reopens in DRC After 31 Year Production Hiatus
Ivanhoe Mines (TSX:IVN,OTCQX:IVPAF) and the Democratic Republic of Congo (DRC) marked a major milestone with the reopening of the Kipushi mine after a 31 year operational hiatus.
An 800,000 metric ton (MT) per year concentrator facility was completed at Kipushi in May, with first concentrate produced in June. The mine’s projected output for the year is between 50,000 and 70,000 MT of zinc in concentrate.
Over the next five years, Ivanhoe expects annual production at Kipushi to average 278,000 MT, driven by a targeted recovery rate target of 96 percent and an average concentrate grade of 55 percent contained zinc.
The reopening of the site is seen bringing economic optimism to the region. The concentrator facility's construction and operational setup provided jobs and investment, boosting the local economy.
Situated in Haut-Katanga province, Kipushi hosts high-grade zinc, copper, lead and germanium deposits. The restart coincides with the centenary of its initial operations in 1924, adding to the event’s historical importance.
Speaking at the mine reopening, Ivanhoe Mines President Marna Cloete emphasized Kipushi's dual role in advancing sustainable resource development and fostering community empowerment.
“Today, we are breathing new life into one of the world’s richest deposits, together proving that responsible mining can drive shared prosperity,” she said in a press release published on November 21.
Gécamines Chairman Guy-Robert Lukama Nkunzi also underscored the project’s significance for the area. He described the mine as the community's "beating heart," with its reopening symbolizing economic opportunity.
Ivanhoe notes that output from Kipushi is poised to contribute to global zinc supply amid increasing demand for the metal, which is vital for construction, galvanization and renewable energy infrastructure.
The mine's copper, lead and germanium production will further enhance its profile as a key resource hub.
Kipushi complements Ivanhoe's flagship Kamoa-Kakula copper project in the DRC. The company is also in the construction phase at its Platreef palladium-nickel-platinum-rhodium-copper-gold project in South Africa.
Ivanhoe shares responded positively to the reopening, reflecting market confidence in the mine’s prospects.
The reopening ceremony was attended by national and local dignitaries, as well as President Félix Tshisekedi. He highlighted the partnership between Ivanhoe Mines and state-owned Gécamines, which jointly operate the site.
Don't forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
A Comprehensive Guide to Zinc Investing
As investors increasingly evaluate new and emerging opportunities in the critical minerals space, one versatile metal stands out as an attractive option driven by its vast industrial applications and growing importance in emerging technologies.
A comprehensive guide to zinc investing will provide prospective investors with a deeper understanding of the metal’s unique properties, market dynamics, industrial applications and compelling investment opportunities.
Market landscape for zinc
Zinc is the 24th most abundant element in the Earth's crust and has been used by humans for millennia. Its unique properties, including its low melting point, malleability and resistance to corrosion, make it invaluable in various industrial applications. In nature, zinc is found primarily as zinc sulfide in mineral deposits.
It often occurs alongside other base metals like lead and copper. The metal's ability to form alloys and its electrochemical properties contribute to its significance in both traditional and emerging industries.
Estimated at 13.58 million metric tons in 2024, the global zinc market size is projected to reach 14.68 million metric tons by 2029, growing at a CAGR of greater than 1.5 percent between 2024 and 2029. A September 2024 report by the International Lead and Zinc Study Group is painting a similar picture, forecasting global demand for refined zinc to rise by 1.6 percent to 14.04 million metric tons in 2025.
The same report from the ILZSG anticipates a 1.4 percent decline in zinc production to 12.05 million metric tons in 2024, but expects supply to bounce back with a 6.6 percent jump in production to 12.86 million metric tons in 2025, “mainly influenced by a robust growth of 8.9 percent in the world, (except) China.” A 3.9 percent reduction in China’s refined zinc output is expected in 2024, amid weak demand and a dramatic plunge in processing fees.
Major zinc-producing countries include China, Australia, Peru and Canada. These nations play a crucial role in shaping the global supply landscape. The demand for zinc is closely tied to industrial activities, particularly in construction, automotive and infrastructure sectors.
With supply of refined zinc anticipated to slightly exceed demand in the near term, this delicate equilibrium can create opportunities for savvy investors who understand market dynamics and potential disruptions.
Traditional and emerging industrial applications
Zinc's traditional applications form the backbone of the mineral’s global demand. These include:
- Galvanization: The process of coating iron or steel with zinc to prevent rusting. This is the largest use of zinc, accounting for about half of the global zinc consumption.
- Alloys: Zinc is a key component in many alloys, including brass (copper and zinc) and nickel silver.
- Die casting: Zinc alloys are widely used in the automotive, electrical and hardware industries for producing complex shapes with high dimensional accuracy.
- Chemical compounds: Zinc oxide and zinc sulfate find applications in rubber manufacturing, agriculture and pharmaceuticals.
These established uses provide a stable foundation for zinc demand, making it a relatively resilient investment option.
While traditional uses remain strong, emerging applications for zinc are opening new avenues for zinc utilization and investment potential:
- Zinc-air batteries: These batteries offer high energy density and are being developed for both stationary energy storage and electric vehicles. Their potential to revolutionize energy storage could significantly boost zinc demand.
- 3D printing: Zinc alloys are finding applications in additive manufacturing, offering new possibilities in prototyping and small-scale production.
- Renewable energy: Zinc's corrosion-resistant properties make it valuable in offshore wind turbines and solar panel frameworks.
- Nanotechnology: Zinc oxide nanoparticles are being explored for use in sunscreens, electronics, and antimicrobial coatings.
These innovative applications could drive future demand and potentially influence zinc prices, creating new investment opportunities.
Zinc production and exploration
The zinc mining sector offers various investment options, from established producers to exploration companies with promising projects. One noteworthy player in the exploration space is Group Eleven Resources (TSXV:ZNG,OTC Pink:GRLVF).
Group Eleven focuses on advanced-stage zinc exploration in Ireland, a country with a rich mining history. The company's recent drilling efforts at the Ballywire discovery have revealed high-grade zinc-lead-silver mineralization spanning over 2.5 km, with notable grades of up to 40.8 percent zinc and 1,440 grams per ton silver. Such findings highlight the potential for significant zinc deposits in their exploration areas.
The company’s strategic relationship with mining giant Glencore (LSE:GLEN,OTC Pink:GLCNF) , which holds a 17.1 percent stake, serves as a validation worthy of investor attention.
In addition to Group Eleven and Glencore, other major players in the zinc space worth considering include: Teck Resources (TSX:TECK.A,TSX:TECK.B,NYSE:TECK), Vedanta (NSE:VEDL,BSE:500295), Hecla Mining Company (NYSE:HL) and Nexa Resources (NYSE:NEXA).
Investors should conduct thorough due diligence, considering factors such as resource estimates, production costs, and geopolitical risks when evaluating zinc mining stocks.
Why now is the best time to invest in zinc
Several factors make zinc an attractive investment proposition in the current market:
- Market growth: The global zinc market size was valued at US$20.02 billion in 2023, and is projected to grow from US$23.36 billion in 2024 to US$30.40 billion by 2032, showing a CAGR of 5.58 percent from 2024 to 2032. This robust growth outlook suggests long-term potential for zinc investments.
- Supply constraints: Disruptions in mine production and geopolitical factors affecting supply chains can create price volatility, offering opportunities for strategic investments.
- Technological advances: Emerging technologies, particularly in the battery sector, are expanding zinc applications, potentially creating new demand streams.
- Green energy transition: Zinc's role in renewable energy infrastructure and energy storage solutions aligns with global trends towards sustainability.
- Economic recovery: As global economies recover from recent challenges, increased industrial activity could drive zinc demand.
However, investors should remain aware of potential risks, including market cyclicality, environmental regulations affecting mining operations, and the impact of global economic shifts on commodity prices.
Key takeaway
Investing in zinc offers a unique opportunity to capitalize on both established industrial demand and emerging technological applications. The metal's critical role across diverse sectors, coupled with promising market growth projections, makes it an intriguing prospect for investors seeking exposure to the commodities market.
Zinc exploration and development companies, like Group Eleven Resources, with strategic assets in stable jurisdictions present a compelling investment option.
This INNSpired article is sponsored by Group Eleven Resources (TSXV:ZNG,OTC Pink:GRLVF). This INNSpired article provides information which was sourced by the Investing News Network (INN) and approved by Group Eleven Resourcesin order to help investors learn more about the company. Group Eleven Resources is a client of INN. The company’s campaign fees pay for INN to create and update this INNSpired article.
This INNSpired article was written according to INN editorial standards to educate investors.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Group Eleven Resources and seek advice from a qualified investment advisor.
Group Eleven Resources: High-grade Zinc-Lead-Silver, Germanium Discovery in Ireland
With Glencore and Michael Gentile as the two largest shareholders, Group Eleven Resources (TSXV:ZNG) offers lucrative investment opportunities through zinc exploration in Ireland. The company's project portfolio encompasses the PG West and Stonepark projects. PG West and Stonepark are contiguous, forming the largest exploration position in the Limerick region, renowned for its zinc potential. Group Evelen's Ballywire discovery, a significant new finding in 2022, has demonstrated the presence of a high-grade mineralized system making it a potentially transformative asset for the company.
The close alignment with Glencore provides Group Eleven with both industry expertise and a collaborative advantage, further enhanced by Glencore's presence on Group Eleven’s board. This strategic partnership reflects confidence in Group Eleven’s potential within Ireland’s prolific zinc landscape.
The PG West and Stonepark projects together span an extensive ground area, creating a formidable position in the Limerick region. This strategic region features the Limerick Volcanic Complex, hosting the second largest zinc deposit discovered to date in Ireland, Glencore’s Pallas Green deposit.
Company Highlights
- Group Eleven Resources is a mineral exploration company focused on advanced stage zinc exploration projects in Ireland.
- The company’s Ballywire discovery has revealed high-grade zinc-lead-silver mineralization spanning over 2.5 km, with notable grades of up to 40.8 percent zinc and 1,440 g/t silver (and local copper kicks up to 5.9 percent).
- Group Eleven’s strategic relationship with Glencore, which holds a 17.1 percent stake, includes Glencore’s representation on the board, enhancing industry collaboration.
- The PG West and Stonepark projects form Group Eleven’s core exploration focus, situated near Glencore’s Pallas Green deposit in a highly mineralized region.
- Carrickittle West, a high-potential target within Stonepark, is a Pallas Green ‘lookalike’ target, showing many geological similarities.
- Ireland ranks well on the Fraser Institute Annual Mining Survey and is No. 1 in the world for zinc found per square kilometer, reflecting numerous discoveries to date.
This Group Eleven Resources profile is part of a paid investor education campaign.
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