http://www.proactiveinvestors.co.uk Proactiveinvestors RSS feed en Mon, 18 Jun 2018 10:29:45 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Connemara Mining now has a major zinc resource under its belt, and is looking to build further inventory ]]> http://www.proactiveinvestors.co.uk/companies/news/195662/connemara-mining-now-has-a-major-zinc-resource-under-its-belt-and-is-looking-to-build-further-inventory-195662.html The market was relatively nonplussed at the announcement from Connemara Mining PLC (LON:CON) and its joint venture partner Group Eleven that the zinc resource at the Stonepark project in Ireland now amounts to more than five million tonnes of resources.

On the day, Connemara shares ticked up a fraction, and rose again in the following day’s trade to their current price of 3.68p.

READ: Connemara Mining now has a major zinc resource under its belt, and is looking to build further inventory

So not a negative response by any means, but nothing like the sort of reaction that similar news would have been greeted with during the last commodities boom.

Back then, the delivery of such a solid platform for growth would have had investors piling in in droves, not least from the Irish contingent of retailers who were particularly active in those days.

Times have changed though, and while it’s true that sentiment towards miners and commodities has recovered over the past 12 months, that recovery has been no more than patchy when it comes to the junior companies.

But Connemara chief executive Patrick Cullen is only too aware of this.

He took on his role at Connemara at the end of last year, following a - quiet period for the company.

His charge was to get things moving again, and that he’s certainly done. If it takes the market a little while to cotton on, then all that really means is that when it does, the upward trajectory in the share price will be all the more steep.

To be sure, it’s generally accepted that it takes more than five million tonnes of ore to make a mine in Ireland. But the likelihood is that there is more than five million tonnes at Stonepark. This resource was put together by Group Eleven using only data inherited from Connemara’s previous joint venture partner Teck Resources. The last drilling was conducted in 2012.

READ: Connemara Mining buoyed by mineral resource estimate at the Stonepark zinc project

Teck, as one of the largest mining companies in the world, was after something truly colossal. So, when that possibility appeared to become remote, interest waned. But be that as it may, Group Eleven has established the resource remains open and that there’s likely to be a significant amount of further ore to be delineated.

What’s more, across the tenement line, one of the world’s biggest producers of zinc, Glencore, continues to drill on the Pallas Green property that once upon a time was held by Minco. And if Glencore reaches a point where it’s looking at pressing development buttons then the outlook for Stonepark as a satellite would be assured, never mind the continuing prospect that it could still one day be developed as a standalone mine.

With all that in mind, Patrick Cullen describes the recent resource update as “good progress.” He points out that drilling by Group Eleven is ongoing, and there may be further step-out work depending on the results. Regional targets up to 10 kilometres away will also be investigated.

“Glencore have been drilling at Pallas Green and have recently updated the resource, and now Connemara and Group Eleven are drilling at Stonepark next door, so all’s right with the world as far as drilling is concerned,” says Cullen.

A recent fundraising allows Connemara to continue to support its position at Stonepark, so further upside will continue to accrue, according to the joint venture split: 77% to Group Eleven and 23% to Connemara.

Meanwhile, Connemara continues to drill on its 100%-owned gold targets in Wicklow-Wexford. Two targets are being investigated, one of which has already yielded mineralisation grading at over 16 grams per tonne from one drill hole.

“The upside for everybody should be that we make a very significant discovery,” says Cullen.

Pace of exploration stepping up

“We have some very prospective ground and have had early success. The plan is to expand the discoveries we have made and hopefully build on that, develop resources; there’s a clear path ahead as long as we enjoy the support we have had we can succeed further. We’re going to have good newsflow. And, it’s good to be diversified and we’re not tied to one target.”

There’s also some very promising-looking ground in Donegal in the company’s portfolio that will also be receiving attention but, in the meantime though, newsflow from Stonepark on zinc, and Wicklow-Wexford on gold will keep coming in. In a depressed market for exploration companies, this may initially fall on deaf ears.

But the rapid progress at Stonepark tells its own story: the pace of exploration work is stepping up in Ireland, and it’s only a matter of time before some investors wake up and start taking notice.

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Tue, 24 Apr 2018 06:34:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/195662/connemara-mining-now-has-a-major-zinc-resource-under-its-belt-and-is-looking-to-build-further-inventory-195662.html
<![CDATA[News - Connemara Mining now has a major zinc resource under its belt, and is looking to build further inventory ]]> http://www.proactiveinvestors.co.uk/companies/news/195558/connemara-mining-now-has-a-major-zinc-resource-under-its-belt-and-is-looking-to-build-further-inventory-195558.html The market was relatively nonplussed at the announcement from Connemara Mining PLC (LON:CON and its joint venture partner Group Eleven that the zinc resource at the Stonepark project in Ireland now amounts to more than five million tonnes.

Connemara shares ticked up a fraction after the news and rose again in the following day’s trade to their current price of 3.68p.

So not a negative response by any means, but nothing like the sort of reaction that similar news would have been greeted with during the last commodities boom.

Back then, the delivery of such a solid platform for growth would have attracted droves of investors, not least from the Irish contingent of retailers who were particularly active in those days.

Times have changed though, and while it’s true that sentiment towards miners and commodities has recovered over the past 12 months, that recovery has been no more than patchy when it comes to the junior companies.

But Connemara chief executive Patrick Cullen is only too aware of this.

He took on his role at Connemara at the end of last year, following a quiet period for the company.

His charge was to get things moving again, and that he’s certainly done. If it takes the market a little while to cotton on, then all that really means is that when it does the upward trajectory in the share price will be all the more steep.

To be sure, it’s generally accepted that it takes more than five million tonnes of ore to make a mine in Ireland. But the likelihood is that there is more than five million tonnes at Stonepark. This resource was put together by Group Eleven using only data inherited from Connemara’s previous joint venture partner Teck Resources. The last drilling conducted was 2012.

Teck, as one of the largest mining companies in the world, was after something truly colossal. So, when that possibility appeared to become remote, interest waned. But be that as it may, Group Eleven has established the resource remains open and that there’s likely to be a significant amount of further ore to be delineated.

What’s more, across the tenement line, one of the world’s biggest producers of zinc, Glencore, continues to drill on the Pallas Green property that once upon a time was held by Minco. And if Glencore reaches a point where it’s looking at pressing development buttons then the outlook for Stonepark as a satellite would be assured, never mind the continuing prospect that it could still one day be developed as a standalone mine.

With all that in mind, Patrick Cullen describes the recent resource update as “good progress.” He points out that drilling by Group Eleven is ongoing, and there may be further step-out work depending on the results. Regional targets up to 10 kilometres away will also be investigated.

“Glencore have been drilling at Pallas Green and have recently updated the resource, and now Connemara and Group Eleven are drilling at Stonepark next door, so all’s right with the world as far as drilling is concerned,” says Cullen.

A recent fundraising allows Connemara to continue to support its position at Stonepark, so further upside will continue to accrue according to the joint venture split: 77% to Group Eleven and 23% to Connemara.

Meanwhile, Connemara continues to drill on its 100%-owned gold targets in Wicklow-Wexford. Two targets are being investigated, one of which has already yielded mineralisation grading at over 16 grams per tonne from one drill hole.

“The upside for everybody should be that we make a very significant discovery,” says Cullen.

“We have some very prospective ground and have had early success. The plan is to expand the discoveries we have made and hopefully build on that, develop resources; there’s a clear path ahead as long as we enjoy the support we have had we can succeed further. We’re going to have good newsflow. And, it’s good to be diversified and we’re not tied to one target.”

There’s also some very promising looking ground in Donegal in the company’s portfolio that will also be receiving attention but, in the meantime though, newsflow from Stonepark on zinc, and Wicklow-Wexford on gold will keep coming in. In a depressed market for exploration companies, this may initially fall on deaf ears.

But the rapid progress at Stonepark tells its own story: the pace of exploration work is stepping up in Ireland, and it’s only a matter of time before some investors wake up and start taking notice.

 

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Mon, 23 Apr 2018 07:22:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/195558/connemara-mining-now-has-a-major-zinc-resource-under-its-belt-and-is-looking-to-build-further-inventory-195558.html
<![CDATA[Media files - Connemara Mining hails Stonepark resource; back drilling at Mine River ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/9120/connemara-mining-hails-stonepark-resource-back-drilling-at-mine-river-9120.html Fri, 20 Apr 2018 13:41:00 +0100 http://www.proactiveinvestors.co.uk/companies/stocktube/9120/connemara-mining-hails-stonepark-resource-back-drilling-at-mine-river-9120.html <![CDATA[News - Connemara Mining buoyed by mineral resource estimate at the Stonepark zinc project ]]> http://www.proactiveinvestors.co.uk/companies/news/195182/connemara-mining-buoyed-by-mineral-resource-estimate-at-the-stonepark-zinc-project-195182.html Connemara Mining Company PLC (LON:CON) has announced a maiden inferred resource estimate at its Stonepark zinc project located in Limerick, Ireland.

The headline mineral resource estimate is 5.3mln tonnes grading 11.15% zinc + lead combined. The zinc (Zn) grade was 8.55% and the lead (Pb) grade was 2.60%.

Resource category

Tonnes (thousands)

Grades

Metal content (pounds)

Zn %

Pb %

Zn + Pb (%)

Zn (thousands)

Pb (thousands)

Zn + Pb (thousands)

Inferred

5,300

8.55

2.60

11.15

990,000

301,300

1,291,300


The deposit is relatively shallow, Connemara noted, occurring at depths ranging from 190 metres to 395 metres.

The deposit consists of flat-lying, stratiform lenses of mineralisation.

WATCH: Connemara Mining hails Stonepark resource; back drilling at Mine River

"This is a very exciting and important milestone for Connemara and for joint venture partner, Group Eleven. The work underlies Stonepark's status as an advanced project and as a key asset to the company. This maiden mineral resource demonstrates attractive grades but is also significant in terms of tonnage,” said Patrick Cullen, the chief executive officer of Connemara.

The Stonepark deposit was first discovered in 2007 by Connemara and Teck and activity has been low in recent years. Following the acquisition of Teck's stake by Group Eleven Resources Corp (CVE:ZNG), drilling at Stonepark has recently re-commenced to improve the understanding of the structural controls on mineralisation. Subsequent drilling will be based on results from initial drilling and regional fieldwork.

“It has been very encouraging to see the work recommence in earnest with Group Eleven's acquisition of Teck's share. Connemara continue to support the joint venture and look forward to results from the drilling currently underway at Stonepark North," Cullen said.

Connemara holds 23.44% of the project.

Shares in Connemara rose 2.9% to 3.5p on the news.

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Tue, 17 Apr 2018 15:56:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/195182/connemara-mining-buoyed-by-mineral-resource-estimate-at-the-stonepark-zinc-project-195182.html
<![CDATA[News - Connemara Mining re-commences drilling at its Mine River Gold project in Ireland ]]> http://www.proactiveinvestors.co.uk/companies/news/193939/connemara-mining-re-commences-drilling-at-its-mine-river-gold-project-in-ireland-193939.html Connemara Mining Company PLC (LON:CON) has re-commenced drilling at its 100%-owned Mine River Gold project at Wicklow/Wexford in Ireland, boring 10 drill holes totalling 1,000 metres.

The AIM-listed Irish gold and zinc exploration firm said that it has prioritised two targets, the first at Tombreen, where the company recently reported drilling results of 16.1 grammes per tonnes (g/t) of gold in Hole 17-TB-01 over 2 metres from 78 metres depth.

READ: Connemara strategic update shows a company with multiple opportunities and plenty of appetite for more

The other target is 2.5km to the southwest at Knocknalour.

Connemara Mining said in a statement that both locations lie along a target trend identified through airborne geophysics, soil and rock geochemical surveys, and historic drilling.

Patrick Cullen, chief executive officer of Connemara, said: “We had very encouraging results at the Tombreen Prospect and are looking to build on that.”

He added: “Tombreen and Knocknalour lie along the significant 15km target trend we have identified at Mine River. With this drilling we want to confirm high-grade gold mineralisation while expanding strike-length.”

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Wed, 28 Mar 2018 07:46:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/193939/connemara-mining-re-commences-drilling-at-its-mine-river-gold-project-in-ireland-193939.html
<![CDATA[News - Connemara strategic update shows a company with multiple opportunities and plenty of appetite for more ]]> http://www.proactiveinvestors.co.uk/companies/news/193771/connemara-strategic-update-shows-a-company-with-multiple-opportunities-and-plenty-of-appetite-for-more-193771.html A strategic update from Connemara Mining Company PLC (LON: CON) has outlined the company’s key goals for the future, arguing that its portfolio is likely to attract major interest from investors, given current positive sentiment towards Ireland.

Connemara has interests in 41 exploration licences in Ireland and is specifically focused on gold and zinc opportunities. 

READ: Connemara Mining excited to see drilling started at Stonepark Zinc project

The company currently has two key joint venture partners within its zinc portfolio: Group Eleven Resources Corp and Teck, Canada's largest diversified mining company. 

Drilling is currently being undertaken at Stonepark North, part of the company's 23.44% owned zinc joint venture with Group Eleven Resources (CVE:ZNG). Given the results to date, and its proximity to Glencore's 44mln tonne zinc and lead deposit at Pallas Green it is Connemara's intention to fully participate and maintain its 23.44% stake.

Meanwhile, Connemara’s own exploration activities will also continue. There are three prongs to the exploration. The first is ongoing work on the Inishowen gold project in the Dalradian rocks of Donegal. The second is the Mine River gold project in the counties of Wicklow and Wexford, located in the region of the 1795 gold rush. The third is zinc exploration across multiple projects in central and southern Ireland.

Work to date on these exploration opportunities has identified numerous high profile targets and further information will be communicated in this regard as reviews progress.

Ground exploration due to commence shortly

In the meantime, the next phase of ground exploration, due to commence shortly, will focus on a drill programme targeting high-grade gold intersections and expanding prospect strike-length at the company's 100% owned Mine River Gold Project located in counties Wicklow and Wexford.

In addition, Connemara is actively reviewing a range of other opportunities.

"We are pleased to present this review and to follow up on our recent fundraising with an update on activity on the ground,” said chief executive Patrick Cullen. 

“We are excited to be moving forward on our Irish gold assets. We believe Ireland will emerge as a gold producing province and expect to see a lot of activity in the coming months, with both progress on mine developments, as well as new entrants to follow Connemara in the exploration space. We've had early success at both our gold projects and now we have funds to continue to build on that.”

Well-positioned with extensive land package

In a note to clients, analysts at ‘house’ broker Northland Capital commented: “As interest in Irish exploration increases, Connemara Mining Company is well positioned with an extensive land package to take advantage of the renewed interest.

“The Company has a wealth of experience in Irish exploration and a skilled exploration team. It is shortly going to restart exploration at the 100%-owned Mine River Gold Project.

“While at the 23%-owned Stonepark Zinc Project further updates on the drill programme being undertaken by joint venture partner Group 11 Resources will be provided in due course.”

In late afternoon trading, Connemara Mining shares were changing hands at 3.75p each, down 0.7% on Friday’s close.

 -- Adds broker comment, share price --

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Mon, 26 Mar 2018 08:25:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/193771/connemara-strategic-update-shows-a-company-with-multiple-opportunities-and-plenty-of-appetite-for-more-193771.html
<![CDATA[News - Connemara Mining excited to see drilling started at Stonepark Zinc project ]]> http://www.proactiveinvestors.co.uk/companies/news/192905/connemara-mining-excited-to-see-drilling-started-at-stonepark-zinc-project-192905.html Connemara Mining PLC (LON:CON) is pleased that joint venture partner Group Eleven Resources Corp (CVE:ZNG) is to restart drilling at a key asset, the Stonepark Zinc project in Limerick, Ireland, in the next few weeks.

Group Eleven has a 76.56% interest, while Connemara has 23.44%. The former aims to determine if exploration success at the adjacent Pallas Green project, which is owned by major Glencore plc (LON:GLEN) can be replicated.

WATCH: Connemara Mining raises £900k to accelerate gold and zinc operations

Pallas Green hosts a JORC 2012-compliant inferred resource of 44mln tonnes grading at 8.0% zinc and lead as at 31 December 2016.

Group Eleven aims to expand all three established mineralised zones (Stonepark, Stonepark North, and Stonepark West; drilled by Teck Resources Ltd between 2007 and 2011), test five existing regional prospects and re-examine the entire Limerick Basin (which underlies Stonepark and Group Eleven's contiguous PG West Property) to ascertain potential for carbonate replacement deposit type mineralisation, as well as, seek large regional feeder structures and corridors.

"We are excited to see work is underway at Stonepark.  We are especially pleased to confirm commencement of expansion and confirmatory drilling," said  Patrick Cullen, chief executive.

"Stonepark is an advanced project and a key asset.  We plan to maintain Connemara's share in the project going forward and are allocating £250,000 from our recent fundraising to cover expenditure commitments in the coming 12 months."

Group Eleven recently started regional fieldwork at Stonepark, consisting mostly of a detailed ground gravity survey and soil sampling.

It is also participating in an upcoming airborne geophysical survey, conducted as part of the Geological Survey of Ireland's Tellus programme, which will cover the Stonepark site.

The survey is scheduled to begin in May this year.

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Fri, 09 Mar 2018 07:50:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/192905/connemara-mining-excited-to-see-drilling-started-at-stonepark-zinc-project-192905.html
<![CDATA[Media files - Connemara Mining raises £900k to accelerate gold and zinc operations ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/8820/connemara-mining-raises-900k-to-accelerate-gold-and-zinc-operations-8820.html Wed, 28 Feb 2018 08:16:00 +0000 http://www.proactiveinvestors.co.uk/companies/stocktube/8820/connemara-mining-raises-900k-to-accelerate-gold-and-zinc-operations-8820.html <![CDATA[News - Connemara Mining raises £900,000, reshuffles board, strategic update to follow ]]> http://www.proactiveinvestors.co.uk/companies/news/192163/connemara-mining-raises-900000-reshuffles-board-strategic-update-to-follow-192163.html Connemara Mining PLC (LON:CON) is raising £900,000 through the issue of 21,686,747 shares at 4.15p, with Metal Tiger PLC (LON:MTR) to subscribe for £200,000.

Meanwhile, long-standing directors John Teeling and Jim Finn will convert historic salaries totalling £199,500 into company equity at the placing price of 4.15p through the issue of 4,807,228 shares.

WATCH: Connemara Mining raises £900k to accelerate gold and zinc operations

And in conjunction with the fundraising, new board member Patrick Cullen becomes full-time chief executive, with what Teeling describes as “full executive authority.”

Teeling himself becomes non-executive chairman, while Michael McNeilly, the chief executive of Metal Tiger is also joining the board. A director from First Equity has also been appointed.

Non-executive directors Vivion Byrne, Danesh Varma and Gavin Berkenheger will step down.

The new money will allow Connemara to accelerate operations across its gold and zinc portfolio in Ireland

 “The developments announced today are very significant for the growth of the Company,” said John Teeling.

“It is now time to accelerate our operational story and fully investigate the potential of our strategic gold and zinc interests which the board consider, on the basis of work completed to date, and where relevant the work of our close neighbours, to have excellent potential.  We are planning a detailed operational programme at present and a full Strategic Update will be provided to the market shortly which will outline our planned ground operations and specifically how we intend to deploy the additional working capital secured in this financing.”

 

 

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Mon, 26 Feb 2018 08:09:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/192163/connemara-mining-raises-900000-reshuffles-board-strategic-update-to-follow-192163.html
<![CDATA[Media files - Connemara Mine River Grades Good as Gold ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/8606/connemara-mine-river-grades-good-as-gold-8606.html Thu, 11 Jan 2018 16:22:00 +0000 http://www.proactiveinvestors.co.uk/companies/stocktube/8606/connemara-mine-river-grades-good-as-gold-8606.html <![CDATA[News - Connemara Mining reports strong gold grade at Mine River in Ireland ]]> http://www.proactiveinvestors.co.uk/companies/news/189865/connemara-mining-reports-strong-gold-grade-at-mine-river-in-ireland-189865.html Connemara Mining Company PLC (LON:CON) saw its shares gain 4% today as it reported high gold grades from one of three holes drilled recently at its Mine River prospect in Wicklow and Wexford in Ireland. 

Assay results from the hole at the Tombreen target indicated an 8m section grading 4.53 g/t gold, which included 2m at 16.1 g/t. 

READ: Connemara Mining says Mine River gold project on track

Mineralisation ranging from 0.17 g/t to 0.25g/t over several intersections was also confirmed in a hole at nearby Gibbet Hill, while surface samples from the surrounding area contained grades as high as 5.08 g/t.

 

John Teeling, chairman, said it was a very strong result from the Tombreen hole.  

“An 8 metre intersection at 4.5 g/t gold would be very satisfactory but 2 metres of 16.1 g/t gold within that is truly exciting.  

“Tombreen is a known gold area but this is better than anything previously reported.”  

WATCH: Connemara Mining highlights reinvigoration of Irish mining scene

The results at Gibbet Hill, 5km to the south were also encouraging he added.  

“We knew the vein system extends through the ground, the good rock samples demonstrate the presence of gold, as does the low gold grades discovered in hole 1.  It suggests more drilling to find the veins.”

In late afternoon trading, Connemara Mining shares were up 4%, or 0.18p at 4.55p.

 -- Adds share price --  

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Thu, 11 Jan 2018 08:41:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/189865/connemara-mining-reports-strong-gold-grade-at-mine-river-in-ireland-189865.html
<![CDATA[News - Connemara Mining says Mine River gold project on track ]]> http://www.proactiveinvestors.co.uk/companies/news/189147/connemara-mining-says-mine-river-gold-project-on-track-189147.html Connemara Mining PLC (LON:CON) said it has achieved its key objectives at its Mine River gold project in Wicklow and Wexford, Ireland.

The company has drilled two holes at Gibbet Hill at 193 metres and another at Tom Breen at 97 metres. Elsewhere in the project area, it has completed sampling and mapping.

WATCH: Connemara Mining boss looking forward to busy 2018 after 'excellent' four months as CEO

Drill and field samples will be delivered to the assay laboratory on Friday and results are expected in January.

Chairman Johan Teeling said the geological mapping and field sampling has already yielded information and the company will have new drill targets for the New Year.

“Our geologists and drill contractors have been busy for the past month on our Mine River project in Wicklow and Wexford,” said chairman Johan Teeling.

“There have been challenging weather conditions as expected but we are satisfied with progress.” 

WATCH: Connemara Mining advancing exciting Zinc and Gold projects in Ireland

Historic drilling at the project has proven gold mineralisation in bedrock along the trend.

The focus of the project is a 15 kilometre long target that has been identified by geochemical surveys, indicating significant strata-bound gold mineralisation associated with the contacts between Ordovician volcanic rocks and metasedimentary rocks

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Thu, 21 Dec 2017 07:57:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/189147/connemara-mining-says-mine-river-gold-project-on-track-189147.html
<![CDATA[Media files - Connemara Mining boss looking forward to busy 2018 after 'excellent' four months as CEO ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/8551/connemara-mining-boss-looking-forward-to-busy-2018-after-excellent-four-months-as-ceo-8551.html Mon, 18 Dec 2017 08:09:00 +0000 http://www.proactiveinvestors.co.uk/companies/stocktube/8551/connemara-mining-boss-looking-forward-to-busy-2018-after-excellent-four-months-as-ceo-8551.html <![CDATA[Media files - Connemara Mining highlights reinvigoration of Irish mining scene ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/8352/connemara-mining-highlights-reinvigoration-of-irish-mining-scene-8352.html Fri, 10 Nov 2017 11:28:00 +0000 http://www.proactiveinvestors.co.uk/companies/stocktube/8352/connemara-mining-highlights-reinvigoration-of-irish-mining-scene-8352.html <![CDATA[News - I’m here to get things moving, says new Connemara chief Patrick Cullen ]]> http://www.proactiveinvestors.co.uk/companies/news/187007/im-here-to-get-things-moving-says-new-connemara-chief-patrick-cullen-187007.html It’s early days for Patrick Cullen at Connemara Mining PLC (LON:CON). But less than two months into the job, he’s already brimming with enthusiasm for the company’s potential.

This in itself tells a story, as he’s not been attracted to the company by any form of significant salary.

WATCH: Connemara Mining advancing exciting Zinc and Gold projects in Ireland

Rather, it’s the Irish gold and zinc assets themselves, and what he believes he can do with them at this stage of the cycle.

Cullen’s relatively new on the Irish junior mining scene, but he fits right in.

An Irishman himself, with a geoscience background at Schlumberger, many years of experience in 3D seismics and mining at AngloGold (including a major re-design of two levels at Western Deeps) and subsequent experience with junior explorers in Africa, this is a man who arrives with a perfect feel for what he’s doing.

And when he decided to move his family to Ireland, he cast his eye around for likely-looking opportunity.

“I found John Teeling and these very good assets and I thought we could definitely do something,” he says.

And his idea of doing something is entirely operational. He’s not on the board and his main remuneration is option-based. If he can make things happen on the ground, he’ll be rewarded.

"Much to be getting on with" ....

“My role is to get things moving,” he says.

There’s much to be getting on with.

Founded as one of the stable of John Teeling companies that also includes Botswana Diamonds (LON:BOD) and Clontarf Energy (LON:CLON), Connemara has over the years amassed a suite of zinc and gold assets in Ireland and made plenty of progress on both.

Things have slowed down a bit in recent years though, as joint venture partner Teck proved less than steady in the level of its commitment at a key asset, Stonepark, and eventually sold out to Group Eleven, a private vehicle backed by MAG Silver (TSE:MAG) that’s due to list shortly in Toronto.

Connemara holds a 23.44% working interest in Stonepark, so it will not be making the running there, but even so that stake could still turn out to be very valuable. Next door, on the Pallas Green license, owned once upon-a-time by Minco, the word is that Glencore has six drill rigs at work and thats an already significant resource that could get bigger.

What that will ultimately mean for Stonepark isn’t clear, but Cullen expects Group Eleven to go to work on the project in a fairly serious way, and for Connemara’s end to come in at around £500,000 over the next two years.

That’s money Cullen reckons he can raise fairly easily, with the help of outstanding warrants, but it would be easier of course if he could get the share price moving.

Inishowen gold project push

In part, that’s why Connemara is now stepping up the work programme at its Inishowen gold project, which isn’t so far away from the Curraghinalt project that made Dalradian Resources (LON:DALR) a £200mln company.

Inishowen’s a long way from that at the moment, but the early work has been good.

“The second lot of drilling that the company did last summer hit 5 grams per tonne gold over 4.8 metres,” says Cullen.

“We’ve just done five more holes and further results will be back in a couple of weeks.”

But if there’s an idea that this will put a little zest into the share price with this drilling, the long game is far more interesting.

Cullen wants to put maybe 70 holes into three or four targets right across the licence and to work it up as a regional trend. And he wants to keep hold of it all while he does it. They also have near-term plans for drilling at their other gold project in the south-east of Ireland.

“I’m not giving up any of this ground and I’m not doing any deals,” he says. “We’ve got to drill more holes. We don’t want to miss another Curraghinalt.”

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Thu, 09 Nov 2017 11:07:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/187007/im-here-to-get-things-moving-says-new-connemara-chief-patrick-cullen-187007.html
<![CDATA[Media files - Connemara Mining advancing exciting Zinc and Gold projects in Ireland ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/8306/connemara-mining-advancing-exciting-zinc-and-gold-projects-in-ireland-8306.html Mon, 30 Oct 2017 15:54:00 +0000 http://www.proactiveinvestors.co.uk/companies/stocktube/8306/connemara-mining-advancing-exciting-zinc-and-gold-projects-in-ireland-8306.html <![CDATA[News - Connemara Mining impresses with latest assays from Inishowen ]]> http://www.proactiveinvestors.co.uk/companies/news/124801/connemara-mining-impresses-with-latest-assays-from-inishowen-124801.html Having previously released the results of gold assays from its Inishowen drilling campaign, Connemara Mining Company PLC (LON:CON) had more good news on Thursday.

The shares rose 14% to 2.39p, bringing the gain year-to-date up to 66%, as it published the silver, lead, zinc  assay results from the short hole drilling programme conducted earlier this year.

In hole 01, a 0.30 metre interval returned 9.3 grams per tonne (g/t) silver, 0.34% lead and 1.32% zinc.

Hole 02 intersected 0.48 metres with 29.2 g/t silver, 1.31% lead and 0.55% zinc.

Hole 03 returned 0.39 metres at 9.7 g/t silver, 0.43% lead and 0.86% zinc.

The results at depth are supported by surface sampling results where galena and pyrite bearing quartz boulders in the vicinity of the drill hole locations have returned values up to 70 g/t and 46.8g/t silver, the Ireland-focused exploration company said.

A 10cm quartz galena vein in outcrop a few kilometres to the north returned 572 g/t silver and 19% lead, it added.

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Thu, 14 Apr 2016 10:14:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/124801/connemara-mining-impresses-with-latest-assays-from-inishowen-124801.html
<![CDATA[News - Connemara shares surge as it tells investors it's well poised for future ]]> http://www.proactiveinvestors.co.uk/companies/news/107659/connemara-shares-surge-as-it-tells-investors-it-s-well-poised-for-future-107659.html Connemara Mining (LON:CON) shares surged over 15% on Wednesday as the firm, which holds interests in 35 exploration licences in Ireland, posted final results.

The gold, lead and zinc firm, which has joint ventures with Canadian Teck and Hendricks, said it was financially secure, having raised funds last year.

Shares surged 30% last month as it posted encouraging initial results from its Inishowen gold licences in Donegal.

Chairman John Teeling said: "The business environment is looking better. 

"Zinc in particular has sound fundamentals with a supply shortages expected for the next few years.  Mines are not found in offices so on the ground exploration is needed.  We hope that Teck will either work the ground they have or pass it to another who will."

Connemara ended 2014 with £384,848 in cash (2013:£64,912) and the pre-tax loss was £308,292 (2013: Loss of £348,199).
Shares added 15.38% to stand at 1.875p.

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Wed, 03 Jun 2015 10:25:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/107659/connemara-shares-surge-as-it-tells-investors-it-s-well-poised-for-future-107659.html
<![CDATA[News - Connemara extends Irish portfolio with latest licence ]]> http://www.proactiveinvestors.co.uk/companies/news/61087/connemara-extends-irish-portfolio-with-latest-licence-71534.html Connemara Mining (LON:CON) has added to its exploration portfolio after being awarded a 50sq km licence in Ireland which is prospective for zinc.

Prospecting licence 3313  is in county Kilkenny to the north east of Vedanta's Lisheen mine  and Lundin's now closed Galmoy mine and to the south of the Rapla mineralised zone explored by Arcon and Lundin, the company said.

Connemara chairman John Teeling said: "This part of Ireland, which contains the giant Lisheen zinc mine and closed Galmoy mine, has always been rich in zinc.  

"Our previous drilling has been focused on the north west of the block and we have potential targets to the south east.

"We are excited that the zinc industry is finally coming back to life with a supply deficit, which is likely to continue for some years.  

"This licence adds to the high quality portfolio of licences across Ireland held by Connemara."

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Fri, 22 Aug 2014 08:04:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/61087/connemara-extends-irish-portfolio-with-latest-licence-71534.html
<![CDATA[News - Connemara Mining says gold occurrences found on two licences ]]> http://www.proactiveinvestors.co.uk/companies/news/43083/connemara-mining-says-gold-occurrences-found-on-two-licences-51414.html  

Ireland-focused Connemara Mining (LON:CON) revealed that gold has been found on two of its licences.

The previously unknown occurrences were found following a soil sampling programme, it said.

The firm has five prospective licences in the Wicklow/Wexford area and Canadian explorer Hendrick Resources, which carried out the work, is spending €1 million to earn a 75% interest in the licences.

The sampling was targeted in areas after re-modelling of the local geology using high quality airborne geophysical data acquired by Hendrick in the spring of this year.

In total, 800 samples were collected resulting in the discovery of zones with significant gold enrichment.

"These are located in previously untested areas and close to known occurrences - notably Tombreen  and Knocknalour. These results appear to extend the Tombreen  and Knocknalour occurrences," the company said.

Chairman John Teeling said: "The second phase of exploration by Hendrick Resources continues to yield positive results.

"I am very pleased with the discovery of previously unknown gold occurrences on two of the Connemara licences. Follow up close spaced soil sampling will be conducted early in 2013 to refine drill targets. The full programme is being carried by Hendrick at no cash cost to Connemara."

 

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Tue, 11 Dec 2012 08:16:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/43083/connemara-mining-says-gold-occurrences-found-on-two-licences-51414.html
<![CDATA[News - Connemara Mining says it may have uncovered previously unknown potential gold targets ]]> http://www.proactiveinvestors.co.uk/companies/news/35870/connemara-mining-says-it-may-have-uncovered-previously-unknown-potential-gold-targets-42878.html

Connemara Mining (LON:CON) said this morning it had completed an airborne survey over a block of five licences in the Wicklow and Wexford areas of Ireland which may have uncovered previously unknown potential gold targets.

The work is part of a joint venture between Connemara and Hendrick Resources of Canada under which the latter will earn a 75 per cent interest in the licences by spending €1 million.

The magnetic, very low frequency and radiometric survey is being processed by Terraquest in Canada. 

Initial analysis carried out on the raw data by Hendrick in Canada indicates the presence of previously undetected blind targets.  Final results are due within six weeks.

Connemara chairman John Teeling: "Gold in the Wicklow hills has been known for over 200 years but finding commercially viable deposits is a far more complicated issue.  

“Dale Hendrick, an acknowledged expert in evaluating airborne survey results has done some work on the raw data from the survey.  

“He believes that he has identified previously unknown 'potential' targets for gold deposits.  

“These are targets that could not be identified from conventional ground based exploration.  

“Final results from Terraquest are due within six weeks following which the next stage of exploration will be decided."


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Wed, 16 May 2012 07:48:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/35870/connemara-mining-says-it-may-have-uncovered-previously-unknown-potential-gold-targets-42878.html
<![CDATA[News - COMPANY Q&A: Connemara Mining to take fresh look at Ireland's gold potential ]]> http://www.proactiveinvestors.co.uk/companies/news/35834/company-qa-connemara-mining-to-take-fresh-look-at-irelands-gold-potential-42825.html Connemara Mining is an Irish based exploration company, manily focused on zinc, lead and gold exploration. An airborne survey has been undertaken on the five licence blocks of its Mine River licences held in the Wicklow/Wexford area to take a fresh look at the  gold potential. The firm is in joint venture over these licences with private Canadian company Hendrick Resources (HRI). Below, in a Q&A, Connemara outlines its current activities and plans. 

Q: Why gold and why Ireland?

Connemara Mining: We have always been involved in gold exploration. Previously, the group had a number of gold exploration companies, including African Gold, which has since successfully fully listed as Mwana Gold, and, more recently, Swala which has listed on the Toronto Exchange as Concordia. 

Gold exploration is in our blood. Ireland has always been known for its potential prospectivity and high gold prices in the 1980s resulted in a significant increase in exploration resulting in up to 130 gold occurrences being identified. The fall in prices in the 1990s led to an exit for many exploration companies. However, recent market dynamics have brought Irish gold into play. 

Q: Why specifically the Wicklow/Wexford area?

Connemara: Since the 1790s the Mines River area has been synonymous with gold. A number of finds of alluvial gold in rivers and streams in the area resulted in a ‘Gold Rush’ in the early 1800s.

Significant amounts were extracted over approximately 40 years. In all, an estimated 7-9,000 ounces were recovered. We have always been big believers in ‘closology’, ie, that the best place to find gold is where gold has already been discovered.   

Q: Is this a new strategic focus for Connemara Mining?

Connemara: No, as already noted, Connemara Mining’s interests are in zinc/lead and gold exploration. A mixture of market fundamentals and finding the right strategic partner has transpired to make this the ideal time to look at the gold potential of our licences. 

Q: A recent agreement has been signed with a Canadian firm. What will this new partnership bring and what are the terms?

Connemara: We are very excited at the new joint venture with Hendricks Resources, which is an extremely well respected player in the industry. This partnership will allow for fresh eyes and new technology to be applied to the ground as the source of the gold has remained a mystery. 

The initial terms will see Hendricks Resources invest $500,000 for a 50 per cent stake with a possible increase of 25 per cent to 75 per cent for a further $500,000 investment on four of the licences.   

Q: Who are Hendricks Resources?

Dale Hendricks is a legendary figure in the exploration industry. Hendricks has been a director of and administrator of many public companies listed on the Toronto Stock Exchange. His career is marked by successes in resource industry development and corporate finance. He is of the opinion that a world class gold deposit remains to be found in south-east Ireland.  

Q: What is the plan going forward for this partnership? 

Connemara: The plan going forward is for an initial airborne survey as well as ground geophysics and geochemistry which should be completed around the middle of the year. Depending on these results there will likely be a move to drilling followed by the initial results. 

Q: Will this have an effect on Connemara Mining's other licences?  

Connemara: No, the agreement is for four of the licences in the Mine River Block. It will not affect our ongoing zinc operations on our blocks and with other partners. We continue to progress in proving up our Stonepark zinc discovery with our partners Teck as well as developing our other blocks.The investment on these gold licences is good news for investors as we push to add value for our shareholders.

Q: What news flow can investors expect from the company in the coming year?

2012 is building up to be an exciting year for Connemara Mining. Our joint venture agreement on the gold will see news flow later in the year. We are continuing drilling on our Stonepark licenses with Teck proving up our zinc discoveries. We are also negotiating joint ventures on some of our other prospective blocks -  Oldcastle, Nenagh and Thurles - which will see further work on these blocks. 

The fundamental dynamics in both the zinc and gold market remain strong which is good news for our investors. 

Connemara at a glance

The company holds 33 Irish licences covering an area of around 1,250 sq km and has some of the most prospective ground in Ireland. A significant zinc discovery was made in 2007 on the Connemara licences at Stonepark in Limerick. 

This is a joint venture with Teck, the second biggest zinc producer in the world. The discovery is growing each year. 

Connemara has further licences close to the Lisheen zinc mine in Thurles and in Oldcastle with similar geology to Tara Mines 20 kms away. Gold potential exists on five licences in Wicklow/Wexford. Connemara is listed on AIM.

 

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Tue, 15 May 2012 12:08:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/35834/company-qa-connemara-mining-to-take-fresh-look-at-irelands-gold-potential-42825.html
<![CDATA[News - Connemara Mining starts airborne seismic survey over Mine River licence in Ireland ]]> http://www.proactiveinvestors.co.uk/companies/news/34410/connemara-mining-starts-airborne-seismic-survey-over-mine-river-licence-in-ireland-41015.html Connemara Mining Company (LON:CON) said an airborne magnetic and electromagnetic survey has started over the 5 license blocks of its Mine River licences held in the Wicklow/Wexford area of Ireland.

The company has a joint venture over these licences with private Canadian company Hendrick Resources (HRI).  The Canadian contractor Terraquest Geophysics will also survey HRI’s adjacent block of 11 licences.

The partners are seeking to identify magnetic anomalies which can frequently be associated with gold mineralisation.
 
Chairman John Teeling commented: "Taking a fresh look at the gold potential in Wicklow/Wexford is long overdue.  Adding the results from this sophisticated technology and fresh processing to the extensive gold data base held by Connemara offers exciting new prospects in an area long known for gold."

Mine River includes a group of four contiguous prospecting licences covering an area of around 130 square kilometres.

Abundant mineralised float samples with gold results up to 52.18 grammes per tonne (g/t) have been found on the licence block, particularly around the Tombreen and Knocknalour area.

Previous exploration has discovered significant gold occurrences in rocks and rivers in the area of the Mine River licence block.

Under the terms of the agreement, Hendrick will spend €500,000 to earn a 50 per cent interest in the licences and has the option to spend a further €500,000 to increase its stake to 75 per cent of the joint venture.

The Canadian company can withdraw from the joint venture at any time with its interest reverting to Connemara.

Connemara is a diversified exploration company, with principal assets in base metal zinc/lead exploration licenses as well as shear hosted gold targeting licenses in Ireland.  The company holds interests in 33 licenses covering an area of approximately 1,250 square kilometres.

One of its main projects is the Stonepark zinc project in County Limerick, Ireland, being developed in a 25/75 joint venture with Teck Resources .

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Mon, 02 Apr 2012 09:55:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/34410/connemara-mining-starts-airborne-seismic-survey-over-mine-river-licence-in-ireland-41015.html
<![CDATA[News - Zinc set to go sky high as supplies deplete in medium term ]]> http://www.proactiveinvestors.co.uk/companies/news/33599/zinc-set-to-go-sky-high-as-supplies-deplete-in-medium-term-40040.html Zinc's price is expected to rocket in the medium term, with several mining analysts going bullish on the metal as the market is expected to switch from surplus to deficit sometime in 2014.

The main factor that comes into play here is mine supply, with some of the biggest zinc mines in the world set to close over the coming years - the Century mine in Australia owned by China's Minmetals, which produces 500,000 tonnes a year, is due to close in early 2016, while Xstrata's (LON:XTA) Brunswick mine in Canada, which provides 220,000 tonnes a year, is due to shut in early 2013.

The loss from these plus other closures and contractions in Kazakhstan, Canada and Ireland, among others, will be almost 1.5 million tonnes.

Zinc's uses range from coatings to protect iron and steel through galvanization, to sheets for building and a range of chemical applications. The metal is used in the automotive and building and construction industries, with galvanized steel growth being the main driver of zinc demand.  The total world zinc consumption was estimated to be 12.45 million tonnes in 2011.

Despite recent lowered demand forecasts from Europe, the US, and even China on the back of the country's efforts to rein in inflation and deflate its property market bubble last year, Graham Deller from CRU International still believes that the zinc market will switch from surplus to deficit at some point in 2014 as overall global demand is still expected to be on an accelerating track in the next few years with China anticipated to show healthy growth to 2016. 

At some point in 2012 or 2013, Japan is also expected to get a boost in zinc demand from reconstruction in the area, after the country was hit by last year’s Tsunami.

"The price of zinc will get bid up, but no one knows by how much. It will either go up very quickly to a level that cannot be sustained, or more steadily," said Deller, the head of research for zinc, lead and precious metals at CRU International.

Since 2007, the zinc market has been in surplus, with stocks building year-on-year at a rate no one would have thought possible prior to 2007. After peaking at almost 900,000 tonnes in 2010, CRU estimates that the global zinc metal surplus fell to 350,000 tonnes last year. But Deller anticipates rapidly growing shortages after the market switches to deficit in 2014.

In a quarterly zinc January 2012 report from CRU, the research firm said: "Although we have reduced our forecast of consumption to 2016, we have trimmed our outlook for production by almost as much, with lower prices of late having already delayed the development of the new mines that are needed to replace those nearing exhaustion."

The firm forecasts a record global metal deficit of almost 800,000 tonnes in 2016, leading to an expected surge in prices as consumers will be forced to bid metal away from Chinese speculators.

Though the addition of projects such as the expected 2015 start-up of Ozernoye in Russia is expected to help moderate the fall in supply, more mines and financing for development will be needed to prevent the zinc market from developing a shortfall, which will be large enough to "rapidly deplete the stocks built in 2008-13”, the report stated. Junior miners face restricted access to capital to develop their mines, as well as rapidly increasing capital and operating costs, leading to potential further consolidation in the industry.

In August 2011, Wood Mackenzie forecast a loss of 1.7 million tonnes by 2015. In addition to short supply, falling zinc and lead mine grades are also expected to add to the problem of meeting zinc demand.

These forecasts have led to increased interest in zinc for traders. Open interest in London Metal Exchange zinc futures gained by 12,193 contracts to 417,146 lots in the week that ended February 23, according to exchange figures. Each contract represents 25 metric tons of the metal used to rustproof steel.

Zinc for three-month delivery, the benchmark, climbed 3.5 per cent during the period.

This could mean big benefit for zinc producers like Xstrata, which plans to merge with Glencore (LON:GLEN) in a US$90 billion deal, along with Teck Resources (NYSE:TCK, TSE:TCK.B) and Nyrstar (EBR:NYR), which has made a string of acquisitions in recent years, and is now the largest zinc producer in the world.

Meanwhile, zinc-focused exploration plays are also set to be in focus, with their stock bound to be considered cheap when compared to a few years from now.

 

Connemara Mining

Among the London-listed plays in the sector is Connemara Mining (LON:CON), which is developing the Stonepark zinc and lead property in County Limerick, Ireland, in a Teck Resources led joint venture. 


The property lies right next to Pallas Green, a world-class zinc and lead deposit developed by industry giant Xstrata.  Xstrata bought out the project’s minority shareholder Minco (LON:MIO) last year – a group previously led by industry veteran John Teeling, who is now chairman of Connemara.

Connemara holds 25 per cent of Stonepark, where the partners have so far identified 3 mineralised zones.   Analysts following the story believe that Stonepark may be geologically linked to its neighbour Pallas Green, which has a resource of around 26 million tonnes at 9 per cent zinc.

The company also holds more than 30 zinc prospecting licences in central and south-west Ireland.

 

Alba Mineral Resources

Another partner of Teck Resources in Limerick is micro-cap explorer Alba Mineral Resources (LON:ALBA). 

The two sealed an exploration joint venture in December last year which gives Teck an option to acquire a 75 per cent stake in Alba’s zinc and lead exploration assets in the Limerick basin.

Ireland already hosts Europe’s largest zinc mine, the Tara mine which is operated by Swedish firm Boliden.  Approximately 2.6 million tonnes of zinc and lead concentrate is produced at the Tara mine each year.

 

Anglesey Mining 

Leaving Ireland, Anglesey Mining (LON:AYM) has 100 per cent of the Parys Mountain zinc-copper-lead deposit in North Wales, with a total historical resource in excess of 7 million tonnes at over 9 per cent combined copper, lead and zinc as well as excellent exploration potential.

The project has planning permission and the group estimates two years to production from arranging financing.

The firm’s 33 per cent stake in Toronto listed Labrador Iron Mines (TSE:LIM) has taken precedence of late for investors as the Schefferville mines project in Canada moved into the staged production phase.

However, drilling at Parys Mountain has been underway since January this year, and the results are planned to help Anglesey reassess the project. The findings will contribute to a review of the mining and production options available for the White Rock and Engine Zone parts of the project. 

Anglesey is aiming to complete this review in the second quarter of this year.

 

Rathdowney Resources

Rathdowney Resources (TSE:RTH), with just under C$23 million of cash in the bank, is a Canadian exploration and development company that has a focus on developing zinc and lead deposits in Poland and Ireland, within mining districts ranked among the world’s richest Mississippi Valley Type resources. 

In Poland, the company's interest is the Upper Silesian Mining District, in which it has been granted two prospecting concessions, and applied for a third, encompassing an area of 150 square kilometres.

A multi-phase campaign of resource verification and exploration drilling began in June 2011 at the concessions with six drill rigs, with 25,000 metres planned in first phase drilling at Zawiercie, and 16,000 metres planned at Rokitno.  Second phase drilling is anticipated to total roughly 28,000 metres, or around 200 holes. 

The Polish assets, which are linked by rail to a nearby state-owned mine and zinc smelter, contain substantial historical resources, including 34.5 million tonnes at Zawiercie 1 at an average grade of 7% zinc and lead in the C2 category.

In December, Rathdowney reported positive drill results from its Olza zinc-lead project northwest of Krakow, confirming mineralization over 650 metres in one area of the property. Significant results from the program included four metres grading 9.74 percent zinc, 0.19 percent lead, and 49.0 grams per tonne (g/t) silver, in hole OLZ-025. This project is also supported by 180,000 metres of Polish State drilling. 

In Ireland, Rathdowney has assembled a land portfolio comprising some 1,600 square kilometres in six project areas. Early stage exploration over the past two years established a number of drill-ready zinc-lead targets, with initial drill testing starting last April.

 

Selywn Resources

Turning to Canada, Selwyn Resources (CVE:SWN) is a prominent zinc and lead-focused company, with its main project in the Yukon. The company is advancing this project together with its 50 percent joint venture partner, Yunnan Chihong Zinc & Germanium Co, a mining and smelting company based in southern China that is spending $100 million on exploration and development.

The Selwyn project is believed to host the largest undeveloped zinc-lead deposit in the world, with initial mine development to focus on 16.06 million tonnes of indicated mineral resources grading 10.06% zinc and 4.23% lead, and 26.7 million tonnes grading 8.81% zinc and 2.81% lead. 

Initial mine production is forecast at 255,000 tonnes per year of zinc and 65,000 tonnes per year of lead in concentrate, starting early 2015, coinciding with forecast shortfalls in mine supply.

Last November, Selwyn said that the initial proposed work for the feasibility study is nearing completion, but the joint venture decided to expand the scope of the study, with a range of additional programs now being considered, including the confirmation of potentially significant new mineral resources at the Don deposit.

Refinements to the feasibility study will focus on the reduction of operating costs in the mill, impacts on the mine plan and optimization of the mining sequence, with the finalization of the feasibility study now expected late 2012.

Selwyn also purchased the former-producing ScoZinc Mine in Nova Scotia last year, which it plans to re-start to attain cash flow and fund development at its project in the Yukon. ScoZinc has a measured and indicated resource of 2.8 million tonnes grading 4.2 percent zinc and 1.9 percent lead.

The latest drilling results were from the Gays River deposit on the property, and included hole MNZ-009, which intersected 7.60 metres grading 8.22 percent lead and 0.79 percent zinc, including 2.60 metres grading 20.32 percent lead and 1.94 percent zinc.

 

Silver Bull Resources

Silver Bull Resources (TSE:SVB)(AMEX:SVBL), meanwhile, is a silver and zinc-focused explorer, whose flagship project is Sierra Mojada in Mexico. The property is located 150 kilometres north of the city of Torreon in Coahuila, Mexico and is highly prospective for silver and zinc. The explorer said that the third in a series of NI 43-101 resource updates is anticipated in the second quarter of 2012.

Given the drilling results to date for Silver Bull, it is anticipated that the next report for the property will show a substantial increase in the silver resource at Sierra Mojada, as well as including a resource for the significant zinc mineralization seen on the project. 

Overall, Silver Bull has acquired or has options to acquire mineral concessions totaling 15,833 hectares in the Sierra Mojada Mining District. The company has been working on the Sierra Mojada property since 1997 and has completed over 80,000 metres of drilling.

The Vancouver-headquartered miner also owns three mineral exploration licences in Gabon, Africa, two of which are currently under joint venture with AngloGold Ashanti (NYSE:AU).

 

Solitario Exploration & Royalty

Solitario Exploration & Royalty Corp. (TSE:SLR) is a company that holds mineral properties in Peru, Brazil, Mexico and Nevada, with advanced projects in platinum, palladium, zinc and lead. 

In early January, the company reported what it called "outstanding" zinc and lead drill results from its 2011 drill program on the Bongara joint venture in Peru. 

Significant drill results included underground drill hole V-240, recovering zinc plus lead grading 13.45 percent over 26.85 metres, and 11.4 percent zinc plus lead over 32.1 metres in hole V-244.

Votorantim Metais can earn a 70 percent stake in the Bongara project by committing to place the property into production based on a positive feasibility study.

 

ZincOx Resources

ZincOx Resources (LON:ZOX) is a rather unique play among London listed zinc companies as it doesn’t mine the metal but produces it through recycling.

ZincOx takes waste dust from steel furnaces and treats it using what's called a rotary hearth furnace (RHF) to produce a fine white zinc powder, which is much higher quality than powder from conventional recycling, and an iron bearing product that can be sold back to the mills that give ZincOx their feed dust in the first place.

The group is on the brink of first production from its Korean recycling plant KRP1, the first plant of the two phase project aimed at producing 92,000 tonnes of zinc powder per year.  KRP1 is currently in the commissioning phase, and ZincOx believes it may be producing at the end of March.

Financing for the second part of the project, to cost US$100 million, will involve a combination of offtake agreements and bank debt and the company has already held negotiations with banks.

The firm already has a 10 year offtake agreement with Korea Zinc - the second biggest zinc producer in the world - for the product from KRP1.

 

Trevali Mining 

Lastly, Trevali Mining Corp (TSE:TV) is also a company of which to take note, with global commodities trader Glencore International (LON:GLEN) taking a near eight percent stake in the miner earlier this week through an $18 million private placement financing.

Trevali has two advanced-stage polymetallic (zinc-lead-silver-copper) deposits in Canada and Peru -- the Halfmile and Santander mine projects. respectively. In Canada, Trevali owns the Halfmile Mine and Stratmat polymetallic deposit in the Bathurst Mining Camp of northern New Brunswick, and the past-producing Ruttan copper-zinc mine in northern Manitoba.

Production from the Halfmile Mine started in early 2012 and will ramp up to a planned production rate of 2,000-tonnes-per-day.

In Peru, the company has the Santander zinc-lead-silver mine project and the former-producing Huampar silver mine, both located in the Central Peruvian Polymetallic Belt. Mine commissioning is anticipated to start at the Santander operation in the middle of this year, with ramp up to a full 2,000-tonne-per-day production to follow.

Other zinc juniors that investors may want to consider include Overland Resources (ASX:OVR), Donner Metals (CVE:DON), Zincore Metals (TSE:ZNC), Zazu Metals (TSE:ZAZ), Meridian Minerals (ASX:MII), Canadian Zinc (TSE:CZN) and Ironbark Zinc (ASX:IBG).

 

Zinc Price Forecast

Indeed, these junior companies are bound to be in focus over the medium term, with zinc prices expected to take off in 2016. CRU International forecasts that the real three-month price of zinc, defined as the nominal price/US consumer price index, will go from US$2,125 in 2012, to US$2,455 in 2015, and US$3,305 in 2016.

The nominal three-month price per pound is expected to go up to 161 cents in 2016 from 96.4 cents per pound in 2012.

 

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Fri, 09 Mar 2012 13:07:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/33599/zinc-set-to-go-sky-high-as-supplies-deplete-in-medium-term-40040.html
<![CDATA[News - Connemara Mining continues to expand Stonepark zinc discovery ]]> http://www.proactiveinvestors.co.uk/companies/news/33062/connemara-mining-continues-to-expand-stonepark-zinc-discovery-39379.html

Connemara Mining (LON:CON) this morning told investors it continues to expand the Stonepark zinc project in County Limerick, Ireland.

Today it revealed results from drilling on the Stonepark West zone, where the Teck Resources led venture is expanding the known zinc-lead mineralisation to the south and northeast.

The highlight result was an intersection of 3.85 metres grading 5.35 per cent zinc and 1.58 per cent lead. That was taken from a depth of 264 metres and it also contained 1.2 metres grading 12.41 per cent zinc and 4.66 per cent lead.

"The continued expansion of the Stonepark West discovery in Limerick highlights the extensive nature of the mineralizing system,” said chairman John Teeling.

“These results follow on from the Company's announcement of 20 December 2011 and further expand the targeted upper mineralized zone. 

“The ongoing 2012 drilling programme will test the extent of the current zone as well as targeting new areas."

Connemara owns a 25 per cent stake in Stonepark. While project operator Teck Resources has the remaining 75 per cent.

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Fri, 24 Feb 2012 08:00:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/33062/connemara-mining-continues-to-expand-stonepark-zinc-discovery-39379.html
<![CDATA[News - Connemara Mining: Mine River joint venture adds new dimension, says broker ]]> http://www.proactiveinvestors.co.uk/companies/news/32339/connemara-mining-mine-river-joint-venture-adds-new-dimension-says-broker-38509.html Connemara Mining’s (LON:CON) joint venture at Mine River in Ireland adds a new dimension to a story seen previously as a zinc/lead play, according to Optiva Securities.

Connemara shares jumped 17 per cent after it secured Canadian group Hendrick Resources as a partner to explore the Mine River project.

“The discovery of over 1 million ounces of gold by Conroy Gold and Natural Resources further to the north shows what can be achieved,” said Optiva.

“We continue to believe a market cap of £2.4 mln is simply too low for a situation that provides investors with exposure to the Stonepark zinc discoveries that lie adjacent to Xstrata’s Pallas Green deposit containing 25 mln tonnes of 9 per cent combined zinc/lead,” Optiva added.

“Along with newsflow from ongoing exploration work at Stonepark in the Teck JV, we can now look forward to exploration results from the Hendrick JV gold project at Mine River in the near future.”

The broker added that Connemara could also conclude similar joint ventures on 100 per cent owned blocks at Oldcastle, Thurles and Nenagh.

Using partners will minimise expenditure and maintain cash resources, it said.

Optiva maintained its 50 pence price target, which it said could soon be revised upwards once more data comes out of Mine River in the coming months.

Mine River includes four contiguous prospecting licences covering an area of around 130 square kilometres (sq km) on the Wicklow, Wexford border.

Mineralised float samples have shown gold grades of up to 52.18 grammes per tonne (g/t), particularly around the Tombreen and Knocknalour area.

Previous exploration has discovered significant gold occurrences in rocks and rivers in the area of the Mine River licence block.

Under the terms of the agreement, Hendrick will spend €500,000 to earn a 50 percent interest in the licences and has the option to spend a further €500,000 to increase its stake to 75 per cent of the joint venture.

The Canadian company can withdraw from the joint venture at any time with its interest reverting to Connemara.

The partners will start exploration work immediately, including airborne and ground geophysics, geochemistry and subsequent drill testing.

“We are delighted with this joint venture,” said Connemara Mining’s chairman John Teeling.

“Dale Hendrick, founder of Hendrick, is a highly experienced successful figure in Canadian exploration. He is of the opinion that a commercial gold deposit remains to be found in south-east Ireland.  This is a view long held by the founders of Connemara.”

“A fresh experienced eye and the application of new and improved exploration techniques, combined with our extensive database offers exciting prospects.”

Connemara traded at 11 pence this morning, up 17 percent from Wednesday’s close.

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Thu, 02 Feb 2012 10:27:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/32339/connemara-mining-mine-river-joint-venture-adds-new-dimension-says-broker-38509.html
<![CDATA[News - Connemara Mining finds JV partner for Mine River gold project ]]> http://www.proactiveinvestors.co.uk/companies/news/32327/connemara-mining-finds-jv-partner-for-mine-river-gold-project-38495.html Connemara Mining (LON:CON) jumped 17 per cent in early deals after securing a partner for the Mine River block in Ireland, which is prospective for both base metals and gold.

The company has entered a joint venture agreement with Canadian group Hendrick Resources to explore the Mine River project, which includes a group of four contiguous prospecting licences covering an area of around 130 square kilometres (sq km).

Abundant mineralised float samples with gold results up to 52.18 grammes per tonne (g/t) have been found on the licence block, particularly around the Tombreen and Knocknalour area.

Previous exploration has discovered significant gold occurrences in rocks and rivers in the area of the Mine River licence block.

Under the terms of the agreeement, Hendrick will spend €500,000 to earn a 50 percent interest in the licences and has the option to spend a further €500,000 to increase its stake to 75 percent of the joint venture.

The Canadian company can withdraw from the joint venture at any time with its interest reverting to Connemara.

The partners will start exploration work immediately, including airborne and ground geophysics, geochemistry and subsequent drill testing.

“We are delighted with this joint venture,” said chairman of Connemara Mining John Teeling.

“Dale Hendrick founder of Hendrick is a highly experienced successful figure in Canadian exploration. He is of the opinion that a commercial gold deposit remains to be found in south-east Ireland.  This is a view long held by the founders of Connemara.

“A fresh experienced eye and the application of new and improved exploration techniques, combined with our extensive database offers exciting prospects.”

Connemara traded at 11 pence this morning, up 17 percent from Wednesday’s close. The company currently has a market cap of £2.85 million.

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Thu, 02 Feb 2012 08:43:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/32327/connemara-mining-finds-jv-partner-for-mine-river-gold-project-38495.html
<![CDATA[News - Connemara Mining unveils exciting drill results from Stonepark West ]]> http://www.proactiveinvestors.co.uk/companies/news/31068/connemara-mining-unveils-exciting-drill-results-from-stonepark-west-37151.html Connemara Mining (LON:CON) this morning unveiled what it described as “exciting” drilling results from the western portion of the Stonepark project in Limerick, Ireland.

The highlights included a 2 metre section with 11.62 per cent zinc and 0.49 per cent lead, a 7.2 metre section at 6.37 per cent zine and 2.17 per cent lead and a 2.4 metre section at 4.47 per cent zinc. The mineralisation was found at depths between 245 metres and 381 metres.

Chairman, John Teeling said: "These are exciting results, which enhance the potential of the Stonepark discovery.” 

Three zones now exist in a triangle between 1.7 kilometres and 2 kilometres apart, which demonstrates the possible size of the system.  

This newly discovered Stonepark West zone is still open and the potential exists to expand the extent of the known mineralisation, said Teeling.  

This supports a developing view that the zinc rich area in Limerick trends southwest from the Xstrata discoveries at Pallas Green south-westwards through and beyond Stonepark, he added.  

Connemara and mining giant Teck, which have a joint venture to develop the area, hold the licences to the southwest.  

Pallas Green is a world-class zinc and lead deposit developed by a former Teeling company Minco (LON:MIO) and industry giant Xstrata (LON:XTA).

The latter has paid US$19.6 million to take full control of the project. Stonepark is a couple of years behind Pallas Green.

And rather than having 25.9 million tonnes at 7.5 per cent zinc, Stonepark has around seven. But there’s bags of potential to expand the project.

Teeling explained: “Recent developments on the Pallas Green discovery, directly adjacent to Stonepark, are positive for Connemara.  

“Xstrata has bought out the minority partner in Pallas Green and announced that they hope to have a major zinc mine, 6,000 tonnes per day, operational by 2017."

Connemara is funded to meet its drilling commitments out to 2013, which may or may not be the point at which it too takes a long hard look at its continued participation. 

The original Stonepark discovery was made in 2007, followed in 2009 by Stonepark North. 

In September the group revealed it intercepted another potential ore-body – sitting at a depth of 200 metres – about 1.7 kilometres south-west of Stonepark.

Irish zinc is usually found in pear-shaped deposits called lobes. And there is every chance it is another lobe. 

Combined these lobes often make up big zinc deposits, and some world’s largest – properties such as Navan, Tynagh and Lisheen - are found in Ireland. 

However there could be an alternative explanation. This is that Stonepark North and West, which sit at the same depth, are connected. 

As Teeling points out this is unlikely. But if it did turn out to be the case then it would indicate a huge deposit of global significance.

It is worth considering also that Xstrata plans go into production without ever finding the sweet spot for Pallas Green.

It is thought the higher grade zinc and lead is found close to the border edge with Stonepark, which suggests again that Connemara and Teck are onto something.

There are a number of ways this could play out with Xstrata and Teck in the mix. But Connemara has a strong hand if Teeling and the team play their cards right. 

Key to this is the right to 25 per cent off all concentrates that come out of Stonepark if it goes into production – which is something which would attract smelters from India and China.

How this would all play out is pure speculation as we stand here today, but this and a right of first refusal to buy out the JV, gives Connemara a lot of leverage for a small company when push finally comes to shove.

 

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Tue, 20 Dec 2011 07:47:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/31068/connemara-mining-unveils-exciting-drill-results-from-stonepark-west-37151.html
<![CDATA[News - Connemara Mining's potential being overlooked by the market ]]> http://www.proactiveinvestors.co.uk/companies/news/30900/connemara-minings-potential-being-overlooked-by-the-market-36950.html The Connemara Mining (LON:CON) share price suggests the market just isn’t recognising the company’s potential.

This may be because it has been caught in the market-wide sell-off that has hit the small-cap sector hardest.

Or perhaps it’s as chairman John Teeling suggests – that this tightly held stock has been under-promoted, and therefore overlooked.

Whatever the explanation, the current valuation of £2.5 million doesn’t really seem in step with progress and potential of the Irish zinc explorer.

Yet you don’t have to look too far to realise what the company might be worth.

Sitting right over the border from the Stonepark property, part of Connemara’s Limerick joint venture with Teck Resources, is Pallas Green.

Pallas Green is a world-class zinc and lead deposit developed by a former Teeling company Minco (LON:MIO) and industry giant Xstrata (LON:XTA).

The latter has paid US$19.6 million to take full control of the project. Stonepark is “a couple of years behind” Pallas Green, says Teeling.

And rather than having 25.9 million tonnes at 7.5 per cent zinc, Stonepark has around seven. But there’s bags of potential to expand the project, Teeling reckons.

Connemara is funded to meet its drilling commitments out to 2013, which may or may not be the point at which it too takes a long hard look at its continued participation. Teeling doesn’t say.

What we do know is that recent drilling results have been encouraging. The original Stonepark discovery was made in 2007, followed in 2009 by Stonepark North.

In September the group revealed it intercepted another potential ore-body – sitting at a depth of 200 metres – about 1.7 kilometres south-west of Stonepark.

Irish zinc is usually found in pear-shaped deposits called lobes. And there is every chance it is another lobe.

Combined these lobes often make up big zinc deposits, and some world’s largest – properties such as Navan, Tynagh and Lisheen - are found in Ireland.

However there could be an alternative explanation. This is that Stonepark North and West, which sit at the same depth, are connected.

As Teeling points out this is unlikely. But if it did turn out to be the case then it would indicate a huge deposit of global significance.

It is worth considering also that Xstrata plans to have a 6,000 ton-a-day zinc mine up and running by 2017. Yet it is pressing ahead with the project without ever finding the sweet spot for Pallas Green.

It is thought the higher grade zinc and lead is found close to the border edge with Stonepark, which suggests again that Connemara and Teck are onto something.

There are a number of ways this could play out with Xstrata and Teck in the mix. But Connemara has a strong hand if Teeling and the team play their cards right.

Key to this is the right to 25 per cent off all concentrates that come out of Stonepark if it goes into production – which is something which would attract smelters from India and China.

How this would all play out is pure speculation as we stand here today, but this and a right of first refusal to buy out the JV, gives Connemara a lot of leverage for a small company when push finally comes to shove.

Another announcement that barely registered on the City’s radar screen concerned the highly promising Oldcastle Block in counties Cavan and Meath that are prospective for zinc.

Here an exploration agreement with Boliden, which would have given the Swedish group 65 per cent of the block, was terminated.

Now this might be considered bad news until Teeling reveals he has agreed a far better deal with a new partner.

He will reveal all in the coming weeks. The Connemara chairman describes Oldcastle as “Navan lookalike” that is “very, very blue-sky”.

He is of course referring to the nearby Tara Mine, Europe’s largest zinc mine, which is located just outside the town of Navan.  

Making up the remainder of the company’s zinc assets in Ireland are Newcastlewest, which is also part of the Teck JV, Thurles, and Nenagh, near the Silvermines zinc-lead deposit, and where the company may sink “three to five speccy holes”.

Teeling says he may ask Teck to give up part of the land package, while he is looking to bring in a partner too for Thurles.

Interest has also been shown in the company’s Mine River block of five licences covering 130 square kilometre area in the south-east of Ireland prospective for gold.  

“I am at the stage of asking what they will spend for what per cent,” Teeling says of conversations with a potential partner.

Gold results of up to 52 grams per tonne have been found on the licence block, particularly around the Tombreen and Knocknalour area.

However, the geology of the area is not straightforward. The veins are narrow and fragmented, and the Mine River area has so far thwarted a succession of explorers looking for source the source of the precious metal.

However as Teeling points out, the block starts to look “very interesting at $1,800 gold”.

“I think we have been desperately remiss not pushing it (Mine River),” the Connemara chairman adds.

They say the best things in life come in small packages.

The adage certainly seems to ring true for Connemara with its micro-market cap and huge potential.

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Wed, 14 Dec 2011 09:09:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/30900/connemara-minings-potential-being-overlooked-by-the-market-36950.html
<![CDATA[News - Connemara Mining sets up joint venture with Boliden AB to explore Oldcastle zinc-lead project ]]> http://www.proactiveinvestors.co.uk/companies/news/28901/connemara-mining-sets-up-joint-venture-with-boliden-ab-to-explore-oldcastle-zinc-lead-project-34542.html Shares in Irish zinc explorer Connemara Mining (LON:CON) surged this morning after the company announced a joint venture with Swedish metal company Boliden AB over its Oldcastle block of licences in Cavan and Meath.

Under the terms of the JV agreement, Boliden’s subsidiary Boliden Tara Mines can earn a 65 percent stake in the project.

Early stage exploration under the JV will include extensions of current soil coverage, sampling and shallow drilling.

The terms of the agreement have been agreed by the two companies and the joint venture is now subject to government approvals.

The block is located over 25 kilometres northwest of the giant Navan zinc-lead mine, currently operated by New Boliden. The mine has a resource of over 100 million tonnes grading 10/1 percent zinc, 2.6 percent lead and 11 grammes per tonne (g/t) silver.

Connemara says that the structural setting of the Oldcastle region is similar to that of the Navan area.

The primary target horizon for zinc/lead mineralisation is the Navan Beds succession, which can be up to 140 metre thick in this area.

The best and most extensive mineralisation discovered in this area to date is in the region around Drumlerry. Work carried out in 2007 and 2008 was focused on the greater Drumlerry target with three holes intersecting significant grades and thicknesses of zinc and lead mineralisation, hosted within the Top Micrite formation of the Navan Beds.

During the last year an extensive regional IP programme was completed, targeting down-dip extensions and structural mapping to the south west of the licence block.

The results from this dataset are being analysed and will complement the detailed exploration database.

Investors cheered the news as shares in Connemara rallied 7 percent to 11.5 pence in early deals, valuing the company at £2.96 million.

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Wed, 19 Oct 2011 09:12:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/28901/connemara-mining-sets-up-joint-venture-with-boliden-ab-to-explore-oldcastle-zinc-lead-project-34542.html
<![CDATA[News - Connemara Mining “set fair” operationally, says chairman ]]> http://www.proactiveinvestors.co.uk/companies/news/27997/connemara-mining-set-fair-operationally-says-chairman-33455.html  

Irish zinc miner Connemara Mining Company (LON:CON) said this morning it has all the funding it needs for the drilling programme at its zinc-lead discovery at Stonepark in Limerick in 2012.

Teck Ireland, the firm’s 75-per cent partner in Stonepark and operator of the venture, will continue to drill with multiple rigs through 2012 and “operationally Connemara is set fair”, according to its chairman John Teeling.

Earlier this month, Connemara revealed that the Stonepark partners had found a new zone of high-grade mineralisation intersected at Stonepark West, some 1.7 kilometres south west of the Stonepark North zone.

Its drill hole there, dubbed Hole 86, intersected high-grade zinc and lead mineralisation of 2.5 metres at 4.16 per cent zinc and 4.37 per cent lead, beginning at a depth of 382.5 metres.

In addition, Hole 64, which is located 580 metres east of the new discovery between Stonepark North and Stonepark West, intersected 3.1 metres of 1.92 per cent zinc and 0.56 per cent lead at a depth of 273 metres, with further zinc-lead mineralisation discovered at 288 metres. Drilling 1.5 kilometres to the west of the new discovery also intersected hydrothermal breccias similar to those at Stonepark West.

Connemara said that the nature of the Stonepark discoveries, like those found by Minco/Xstrata, are “typical of Irish zinc discoveries”. They can be large and rich but are often in separate zones, so they need a significant number of drill holes to reach a measured estimate of volume.

“We believe that the Limerick discoveries have the potential to produce at least one world class zinc mine. It is worth noting that the current discoveries are all on one of the 16 Limerick licences in the Connemara/Teck joint venture,” said Teeling.

Connemara’s interim results today showed that the firm made a operating loss of €198,000 during the six months to June 30, compared with a loss of €165,000 in H1 2010. Its net loss was €194,000 (H1 2010: €164,000).

At the end of June, the firm had cash and cash equivalents of €1 million (June 30 2010: €20,000).

Commenting on the investment climate, Teeling said that although Connemara is fully funded until the end of 2012 and its geological results are “outstanding”, the share price is a cause for concern, with a market capitalisation of just above £3 million.

“A series of events have combined to damage our share price. The general economic malaise is bad for speculative shares and the AIM market has been badly hit as retail investors try to exit illiquid positions.

This is further exacerbated by the many Irish investors who have seen their net worth decimated by the virtual collapse of the Irish economy and so are forced to sell their Connemara shares.

However, Teeling said that those investors not forced to sell should look to a number of fundamental facts. He pointed out that zinc demand continues to grow at rates of four per cent due entirely to Chinese, Indian, Brazilian and other emerging markets, and that these emerging markets are expected to grow far faster than declining Western economies.

Meanwhile, he added, zinc supply is sluggish with few new mines coming on stream and zinc prices above US$2,000 per tonne are profitable for producers.

 

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Thu, 22 Sep 2011 07:47:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/27997/connemara-mining-set-fair-operationally-says-chairman-33455.html
<![CDATA[News - Connemara Mining shares boosted by “positive and significant” results from Limerick zinc discovery ]]> http://www.proactiveinvestors.co.uk/companies/news/27537/connemara-mining-shares-boosted-by-positive-and-significant-results-from-limerick-zinc-discovery--32887.html  

Shares in Connemara Mining (LON:CON) were up by more than 10 per cent this morning after the firm reported “very positive and significant” results from its zinc discovery at Stonepark in Limerick, Ireland.

Connemara, which has a 25 per cent stake in the discovery, said it had found a new zone of high-grade mineralisation intersected at Stonepark West, some 1.7 kilometres south west of the Stonepark North zone. Its drill hole here, dubbed Hole 86, intersected high-grade zinc and lead mineralisation of 2.5 metres at 4.16 per cent zinc and 4.37 per cent lead, beginning at a depth of 382.5 metres.

Optiva Securities commented that it was encouraged by the new zinc-lead zone find which “provides further evidence to the view that Connemara’s discoveries and those adjacent at Pallas Green on the Minco-Xstrata blocks are of world class potential”.

Connemara said it is calling this new discovery “Stonepark West”.

In addition, Hole 64, which is located 580 metres east of the new discovery between Stonepark North and Stonepark West, has intersected 3.1 metres of 1.92 per cent zinc and 0.56 per cent lead at a depth of 273 metres, with further zinc-lead mineralisation discovered at 288 metres. Drilling 1.5 kilometres to the west of the new discovery has also intersected hydrothermal breccias similar to those at Stonepark West.

Connemara added that the Stonepark West discovery is significant because it is likely to be a totally new zone of zinc-lead to add to that at Stonepark and Stonepark North.

“These are very positive and significant results,” said John Teeling, Connemara’s John Teeling. “The discovery at Stonepark West appears to be a new zone, typical of Irish zinc orebodies. That in itself is significant, but the results in other holes to the east (Hole 64), between Stonepark North and Stonepark West, and 1.5 kilometres to the west also contain mineralisation. There is now evidence to indicate that more zones of zinc-lead will be discovered in what is becoming a large area of zinc-lead mineralisation. Step out drilling continues.”

Optiva added that it believed that Connemara’s market cap of around £3 million did not take the firm’s “world class potential” assets into account.

“The shares in Connemara have drifted over the last month to 11 pence partly in response to the low take-out value conditionally agreed by Minco with Xstrata in July and due to recent weak markets,” it said. “We believe the shares are now ripe for correction. We continue to rate the stock as a ‘buy’ with a 50 pence price target and look forward to further possible discoveries being made in the coming months during the remaining 25,000 metre drill campaign.”

Connemara’s shares were trading up 10.7 per cent by 3.06pm today.

 

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Thu, 08 Sep 2011 15:57:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/27537/connemara-mining-shares-boosted-by-positive-and-significant-results-from-limerick-zinc-discovery--32887.html
<![CDATA[News - Connemara Mining’s shares up after “positive and significant” results from Limerick zinc discovery ]]> http://www.proactiveinvestors.co.uk/companies/news/27515/connemara-minings-shares-up-after-positive-and-significant-results-from-limerick-zinc-discovery--32863.html  

Shares in Connemara Mining (LON:CON) opened higher by more than nine per cent this morning after it reported “very positive and significant” results from its zinc discovery at Stonepark in Limerick, Ireland.

Connemara, which has a 25 per cent stake in the discovery, said it had found a new zone of high-grade mineralisation intersected at Stonepark West, some 1.7 kilometres south west of the Stonepark North zone. Its drill hole here, dubbed Hole 86, intersected high-grade zinc and lead mineralisation of 2.5 metres at 4.16 per cent zinc and 4.37 per cent lead, beginning at a depth of 382.5 metres.

Connemara said it is calling this new discovery “Stonepark West”.

In addition, Hole 64, which is located 580 metres east of the new discovery between Stonepark North and Stonepark West, has intersected 3.1 metres of 1.92 per cent zinc and 0.56 per cent lead at a depth of 273 metres, with further zinc-lead mineralisation discovered at 288 metres. Drilling 1.5 kilometres to the west of the new discovery has also intersected hydrothermal breccias similar to those at Stonepark West.

Connemara added that the Stonepark West discovery is significant because it is likely to be a totally new zone of zinc-lead to add to that at Stonepark and Stonepark North.

“These are very positive and significant results,” said chairman John Teeling. “The discovery at Stonepark West appears to be a new zone, typical of Irish zinc orebodies. That in itself is significant, but the results in other holes to the east (Hole 64), between Stonepark North and Stonepark West, and 1.5 kilometres to the west also contain mineralisation. There is now evidence to indicate that more zones of zinc-lead will be discovered in what is becoming a large area of zinc-lead mineralisation. Step out drilling continues.”

At 08:02am Connemara’s shares were up 9.1 per cent at 12 pence each.

 

 

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Thu, 08 Sep 2011 08:07:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/27515/connemara-minings-shares-up-after-positive-and-significant-results-from-limerick-zinc-discovery--32863.html
<![CDATA[News - Connemara Mining set to benefit from Minco-Xtrata zinc deal ]]> http://www.proactiveinvestors.co.uk/companies/news/25676/connemara-mining-set-to-benefit-from-minco-xtrata-zinc-deal-30640.html Connemara Mining (LON:CON) looks set to benefit from yesterday’s news that Minco (LON:MIO) has conditionally agreed to sell its stake in the Pallas Green zinc project in Ireland to joint venture partner Xstrata (LON:XTA) for $19.4m in cash.  Broker Optiva Securities reckons it will have a positive impact on Connemara’s own zinc prospect, adjacent to Pallas.

Optiva analyst Jason Robertson says the value of the Minco-Xtrata transaction is “much lower” than anticipated and has occurred earlier than expected, being some six years away from the potential mine start‐up point.

In explaining why the deal value has undershot expectations Robertson says: “Essentially Minco has been out‐spent by Xstrata in proving up its resource and decided to exit now, retaining some cash rather than have its Pallas Green interest diluted any further.

By contrast, Connemara Mining, which is exploring zinc prospective permits at Stonepark, right next door to Pallas Green, in partnership with Teck of Canada, “is in a more favourable position to Minco on several levels”.

For instance, Connemara is funded to at least the end of 2012 to meet joint venture commitments and as a result is unlikely to find itself in a position where it is forced to sell at a low price.

Robertson adds: “Although Stonepark is an earlier stage project than Pallas Green, from the results we have learnt so far from exploration work, it would seem that Connemara’s licence area contains a higher zinc grade and is at a shallower depth.

“Indeed given Stonepark’s location to the south of Pallas Green, it was interesting to find out from yesterday’s RNS on the Pallas deal that Minco believes the higher grade zones lie 500 to 800 metres to the south of current drilling at Tobermalug and Knockroe.”

Robertson also reminds investors that Connemara has zinc prospects elsewhere in Ireland, beyond the Limerick Stonepark permits, that are 100% owned.

As for Xtrata,  Robertson notes that its expanded drilling campaign for this year and move to gain 100% control over Pallas Green shows that the major is taking the project “very seriously” with an eye on future development.

Previous studies have indicated Xstrata/Minco ground holds a 24 million ton reserve grading 10% combined zinc and lead.

The analyst says that despite the disappointment of the low sale price for Pallas, in the long run the deal is good news for the eventual development of Pallas Green/Stonepark into a world class mine.

To this end Optiva continues to rate Connemara Mining as a ‘buy’ with a 50p price target.

Last month Connemara revealed that its full year losses grow slightly as it continued to progress its exploration work in the Limerick area.

Full year pre-tax losses for the year to December 2010 came in at £299,600 versus £269,900, with operating losses rising to £301,750 from £283,270.

John Teeling, chairman of Connemara, assured in the statement that good results are continuing to flow from drilling in the Stonepark area in particular.

Over its current 2011 year, Connemara and Teck will drill 65 holes to better define significant zinc discovery in the Stonepark area.

The drill programme for Stonepark has two objectives: close in drilling to better define Stonepark/Stonepark North; and distant drilling from 1 kilometre to 10 kilometres away to try to get an understanding of the geology and the potential size of an orebody.

Connemara holds 16 licences in the Limerick area.

Teeling said: "The Limerick discovery remains a work in progress. Results are very good but not yet definitive. It remains an exploration play. The current intensive drilling will provide a clearer picture by the end of 2011."

He added that not only is Connemara is fully financed for current exploration plans but that the company overall is funded through 2011 and 2012 on current expenditure proposals.

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Thu, 14 Jul 2011 11:06:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/25676/connemara-mining-set-to-benefit-from-minco-xtrata-zinc-deal-30640.html
<![CDATA[News - Connemara Mining continues to progress Limerick zinc exploration ]]> http://www.proactiveinvestors.co.uk/companies/news/24833/connemara-mining-continues-to-progress-limerick-zinc-exploration-29667.html Connemara Mining (LON:CON), the Irish zinc explorer saw full year losses grow slightly as it continued to progress its exploration work in the Connemara area of Limerick, Ireland.

Full year pre-tax losses for the year to December 2010 came in at £299,600 versus £269,900, with operating losses rising to £301,750 from £283,270.

John Teeling, chairman of Connemara, assured that good results are continuing to flow from drilling in the Stonepark region of Connemara in particular. In total the company has six drill rigs are working on the Connemara ground.

Over its 2011 year, its joint venture with Teck of Canada will drill 65 holes to better define significant zinc discovery in the Stonepark area.

Adjacent to Stonepark, Xstrata/Minco have a very large and growing zinc discovery. Currently a prefeasibility study is ongoing on the Xstrata/Minco ground where a 24million ton reserve grading 10% combined zinc and lead has been reported. It is now almost certain that the next world class zinc mine will be developed in Limerick. Connemara holds 16 licences in the Limerick area.

The current drill programme for Stonepark has two objectives - close in drilling to better define Stonepark/Stonepark North and distant drilling from 1 kilometre to 10 kilometres away to try to get an understanding of the geology and the potential size of an orebody. Encouraging results have come from an area 1 kilometre to the southwest of Stonepark North.

Teeling said: "The Limerick discovery remains a work in progress. Results are very good but not yet definitive. It remains an exploration play. The current intensive drilling will provide a clearer picture by the end of 2011."

He said that not only is Connemara is fully financed for current exploration plans but that the company overall is funded through 2011 and 2012 on current expenditure proposals.

Elsewhere, the company is also in advanced stage negotiations ongoing to joint venture the Lough Sheelin block of licences.

Teeling added: Turning these discoveries into commercial mining operations needs well-funded strong partnerships with major companies who can access world markets. The Limerick discoveries have the potential to be very big and rich, but they must be proven. The only true lie detector in mining is a drill hole.

“Although a drilling programme can be costly and time consuming our experienced technical team can provide the Company with cost effective results. I have every confidence that patience will be well rewarded.”

Connemara shares opened this morning on 16p.

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Wed, 22 Jun 2011 07:47:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/24833/connemara-mining-continues-to-progress-limerick-zinc-exploration-29667.html
<![CDATA[News - Connemara's Stonepark may be world class deposit in the making - broker ]]> http://www.proactiveinvestors.co.uk/companies/news/23976/connemaras-stonepark-may-be-world-class-deposit-in-the-making-broker--28625.html Broker Optiva Securities says Connemara's (LON:CON) Stonepark property may be a "world class deposit in the making" after the firm released further results from the site in Limerick today.

Analyst Jason Robertson from Optiva, which is joint broker for the firm, said he was looking forward to further news from the company and continued to rate the stock a "buy" with a target price of 50 pence (current share  price 20p).

Stonepark is one of the firm's licences on the Monaster block in County Limerick in Ireland.

This block is found in a highly prospective block for base metal mineralisation and is just 5km from the Tobermalug and Caherconlish zinc discoveries at Pallas Green.

Pallas Green is currently being evaluated by Xstrata (LON:XTA) and Minco (LON: MIO). It is  a more advanced project and there are currently 25.9 million tonnes at 8.89 percent zinc equivalent in total JORC resources.

An extensive drill campaign is planned this year. Connemara revealed some impressive results today from drilling at the Stonepark zinc property and a highlight was one intersection which showed 17.41 percent zinc and 3.98 percent lead.

The result extended the Stonepark North zone to the northeast, said the firm, but also added that its step-out drilling 1km southwest of this zone had encountered low grade zinc-lead mineralisation.

Six rigs are at work in county Limerick. Connemara controls 25 percent of Stonepark while Canada’s Teck Resources (TSE:TCK, NYSE:TCK)  has 75 percent.

The company said this morning that it planned to drill 25 kilometres on the Limerick licences this year.

It told investors how borehole 74 had intersected an 8.65m zone grading 7.72 percent zinc and 2.19 percent lead at 220 metres depth, including 2.85 metres at 17.41 percent zinc and 3.98 percent lead from 224.45m.

This hole was drilled to the northeast of hole 45 (which intersected 7.45 metres of 19.2 percent zinc and and 8.5 percent lead) and extends Stonepark North zone by around 120 metres to the northeast.

Drilling to-date at Stonepark North has defined a flat-lying zone of zinc-lead mineralization at 200 to 250 metres depth, with a strike length of at least 800m in a north-south direction and around 100-150 metres wide. The zone is still open, said Connemara.

"Results from Stonepark continue to be encouraging and further elude to the potential for a much larger mineralised system that may (we believe it is 80 percent likely) connect to Minco’s more advanced Pallas Green JV deposit, at just over 4km at the closest point," said Robertson.

"With six rigs on site drilling 25,000 metres at Stonepark this year we look forward to further newsflow updates from the company that will help us gain a greater understanding of what may prove to be a world class deposit in the making."

Chairman John Teeling was equally upbeat.

"The Connemara/Teck joint venture in Limerick continues to excite.The Stonepark North discovery is extended by another high grade result 120 metres to the northwest including 2.85 metres of over 20 percent combined zinc and lead.

He added: "Interesting results have been found 1km away from Stonepark offering the possibility of a much bigger mineralised system. Six kilometers to the southwest, drilling has discovered low grade mineralisation but more importantly has identified a previously unknown fault."

The company added that encouraging results have come from an area 6km to the southwest of Stonepark North where drilling has intersected hydrothermal black matrix breccia with trace zinc mineralisation.

"Drilling indicates that this mineralisation is adjacent to a large and previously unrecognised fault. Further step-out drilling is planned, said the firm.

Teeling added that Connemara was using a range of modern sophisticated techniques to better target drill holes.

As at noon today, Connemara's share price was up 5.26 percent, changing hands at 20 pence.

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Wed, 25 May 2011 12:14:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/23976/connemaras-stonepark-may-be-world-class-deposit-in-the-making-broker--28625.html
<![CDATA[News - Connemara reveals high grade drill result from Stonepark zinc property, Ireland ]]> http://www.proactiveinvestors.co.uk/companies/news/23956/connemara-reveals-high-grade-drill-result-from-stonepark-zinc-property-ireland-28591.html Connemara Mining Co (LON:CON) has revealed impressive results from drilling at the Stonepark zinc property in Ireland, including 2.85m at 17.41% zinc and 3.98% lead.

The result extends the Stonepark North zone to the northeast, said the firm, which also announced that step-out drilling 1km southwest of Stonepark North zone had encountered low grade zinc-lead mineralisation.

Six rigs are at work on the site in county Limerick.

Connemara controls 25 percent of Stonepark while Canada’s Teck Resources (TSE:TCK, NYSE:TCK)  has 75 percent and Connemara plans to drill 25 kilometres on the Limerick licences this year.

Chairman John Teeling said today: "The Connemara/Teck joint venture in Limerick continues to excite.The Stonepark North discovery is extended by another high grade result 120 metres to the northwest including 2.85 metres of over 20 percent combined zinc and lead.

"Interesting results have been found 1km away from Stonepark offering the possibility of a much bigger mineralised system. Six kilometers to the southwest, drilling has discovered low grade mineralisation but more importantly has identified a previously unknown fault."

The company said hole 74 intersected an 8.65m zone grading 7.72 percent zinc and 2.19 percent lead at 220 metres depth, including 2.85 metres at 17.41 percent zinc and 3.98 percent lead from 224.45m.

This hole was drilled to the northeast of hole 45 (which intersected 7.45 metres of 19.2 percent zinc and and 8.5 percent lead) and extends Stonepark North zone by around 120 metres to the northeast.

Drilling to-date at Stonepark North has defined a flat-lying zone of zinc-lead mineralization at 200 to 250 metres depth, with a strike length of at least 800m in a north-south direction and around 100-150 metres wide. The zone is still open, said Connemara.

The company added that encouraging results have come from an area 6km to the southwest of Stonepark North where drilling has intersected hydrothermal black matrix breccia with trace zinc mineralisation.

"Drilling indicates that this mineralisation is adjacent to a large and previously unrecognised fault. Further step-out drilling is planned, said the firm.

Teeling added that Connemara was using a range of modern sophisticated techniques to better target drill holes.

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Wed, 25 May 2011 07:44:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/23956/connemara-reveals-high-grade-drill-result-from-stonepark-zinc-property-ireland-28591.html
<![CDATA[News - Connemara Mining reports encouraging results from step-out drilling at Stonepark zinc project ]]> http://www.proactiveinvestors.co.uk/companies/news/22059/connemara-mining-reports-encouraging-results-from-step-out-drilling-at-stonepark-zinc-project-26322.html Connemara Mining Co PLC (LON:CON) said step-out drilling at the Stonepark zinc property in County Limerick, Ireland, has found promising mineralisation up to 2 kilometres southwest of the Stonepark North Zone discovery.

Drilling is ongoing on the Stonepark project with six rigs now on site.  Approximately 25,000 metres of diamond drilling is planned for 2011.

Connemara controls 25 percent of Stonepark while Canada’s Teck Resources (TSE:TCK, NYSE:TCK)  has 75 percent.

Results from the first few holes of 2011 are encouraging and have significantly increased the known size of the Stonepark hydrothermal system. Drill hole TC-2638-064, located 1km southwest of the Stonepark North zone, intersected low-grade zinc-lead mineralisation hosted in well-developed hydrothermal black matrix breccia. Drill holes TC-2638-065, 067 and 070, located 1km west, 1km southwest and 2km southwest respectively of the Stonepark North discovery hole (TC-2638-026), also intersected trace mineralisation in well-developed black matrix breccia.  

Chairman John Teeling said:  "The 2011 exploration programme on Stonepark is now in full swing.  Six rigs are drilling what will be a total of 25 kilometres.  The recent airborne gravity survey will guide future drilling while the imminent seismic survey will help in the search for thicker mineralisation.  Results from wide spaced holes up to 2km away from Stonepark are very positive, discovering well  developed black matrix breccias,  - the target horizon containing low grade zinc mineralisation."

Drill hole TC-2638-064, located 1km southwest of the Stonepark North zone, intersected low-grade zinc-lead mineralisation hosted in well-developed hydrothermal black matrix breccia. Drill holes TC-2638-065, 067 and 070, located 1km west, 1km southwest and 2km southwest respectively of the Stonepark North discovery hole (TC-2638-026), also intersected trace mineralisation in well-developed black matrix breccia.

 An airborne gravity survey over the Monaster licence block was carried out by Bell Geospace in late January-early February. Data from the survey is currently being processed with results expected in early March. This survey will be used to guide step-out drilling in the coming months, Connemara said.

The partners have contracted Tesla-IMC International to complete a 25 line kilometers 2D seismic survey on the Monaster block. The survey is scheduled to begin in early April and will identify ore-controlling faults within the Stonepark-Stonepark North area.  The aim of the survey is to find ore-controlling faults that may host thicker mineralisation.

A soil geochemical survey is also underway on the Monaster licence block. An orientation survey carried out last year showed that soil geochemistry could effectively detect the known mineralisation at Stonepark North.  Soil geochemistry results, combined with data from airborne gravity and seismic surveys, will be used in combination to guide drilling along a prospective trend southwest of Stonepark.

The Stonepark property is near the existing Lisheen zinc mine, operated by Vedanta Resources (LON:VED).  Lisheen is one one of the largest producers of Zinc concentrates in Europe.

Minco PLC (LON:MIO) and Xstrata (LON:XTA) are currently developing the Pallas Green zinc project which is adjacent to Stonepark.

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Mon, 14 Mar 2011 07:28:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/22059/connemara-mining-reports-encouraging-results-from-step-out-drilling-at-stonepark-zinc-project-26322.html
<![CDATA[News - Connemara Mining : Heads or Tails on an important new zinc system ]]> http://www.proactiveinvestors.co.uk/companies/news/21946/connemara-mining-heads-or-tails-on-an-important-new-zinc-system-26172.html An important new zinc system is being unearthed in the Republic of Ireland, with two very similar joint ventures practically working in tandem to set up new mines in Limerick.

Here two JVs - each comprising a junior and a major mining group - are rapidly uncovering positive drill results on the Pallas Green and Stone Park projects. Analysts believe that these projects may be at each end of the same mineralised system.

At the more advanced Pallas Green project, which is being developed by Xstrata (LON:XTA) and Minco (LON:MIO), there are currently 25.9 million tonnes at 8.89 percent zinc equivalent in total JORC resources, and an extensive drilling programme is planned for 2011.

Jason Robertson at Optiva Securities reckons there’s an 80 percent chance that the earlier stage Stonepark project, a joint venture between Teck Resources (TSE:TCK, NYSE:TCK) and Connemara Mining’s (LON:CON), is connected to Pallas Green.

Robertson, who thinks Connemara could double in price in the next 12 months, said that it is possible that Stonepark could even host the ‘head’ of the deposit, meaning it could be larger than Pallas Green. 

The analyst described the parallel projects as ‘a potential world class ore-body in the making’. Over the past few weeks both Teck and Xstrata have increased their exploration budgets on their respective projects, and Robertson believes that this will boost investor interest in the unfolding exploration story.

Crucially Robertson points to the fact that the Xstrata-led exploration programme at Pallas Green - with an US$18 million budget, potentially spanning 100,000 metres of drilling - is a major commitment which shows that the JV is moving nearer to a mine decision.

“For Connemara this opens up the potential to monetise its project should either Teck or Xstrata decide to gain full 100 percent control over what could be a single giant mineralisation system of world class status,” Robertson said.

He adds: “We anticipate a steady stream of news-flow during 2011, with five rigs active at Stonepark drilling 65 holes, along with exploration news next door from Minco at Pallas Green.”

The analyst rates Connemara as a ‘buy’ with a 12 month price target set at 50 pence (current price 22.5 pence). He also reckons Connemara’s valuation is lagging that of Minco.

Robertson said: “(Since July) the valuation gap between Connemara and Minco has widened, despite an improving investment case for both explorers and stronger underlying zinc prices. The shares in Minco have risen by 78 percent during this period, whilst Connemara has moved ahead by only 29 percent. 

“We believe it is time for this valuation gap to narrow.”

He adds: “Deriving a value for Connemara Mining is difficult given the early stage nature of exploration and absence of any compliant resource figures. 

“However as Connemara’s main project at Stonepark lies next to Pallas Green upon which a JORC figure has been estimated and both deposits may be part of the same mineralised system, it is possible to determine a projected exploration value.” 

As I said earlier, the analyst thinks there is an 80 percent chance that Stonepark and Pallas Green are part of the same system, based on his geological understanding of the area. Following through this assumption Robertson takes a prudent view that the entire deposit is split 75:25 between Pallas Green and Stonepark.

 “Further exploration at Stonepark may prove the reverse is true, with the head of the deposit located within Connemara’s ground instead of the tail,” Robertson adds. 

He also assumes that that the grades will be the same at both project - although he notes that drilling to date ‘alludes to the potential that higher grades may be present’ at Stonepark.

The analyst’s model gives a risked current project value for Stonepark of US$18.4 million, which in turn gives Robertson’s 50 pence target - including 6 pence a share in cash. He adds: “If Stonepark proves to be as large as Pallas Green then the exploration value to Connemara will be higher.” 

None of Connemara’s other assets are considered in Robertson’s valuation, due to their early stage nature. In all Connemara has 33 prospecting licences in Ireland - included the promising Thurles licence which is understood to have similar characteristics to the nearby Lisheen mine which is operated by Vedanta (LON:VED).

Connemara is the fourth largest ‘ground holder’ in Ireland with more than 1,000 square kilometres across it portfolio.

Ireland itself has great pedigree as far as zinc mining is concerned in fact it has more zinc discoveries per square kilometre than anywhere else in the world. The Navan zinc mine, operated by Swedish firm Boliden (STO:BOL), is the largest in Europe and a whole host of major mining group’s are believed to be on the look-out for new exploration JV’s in the country.

At Stonepark, which is just 4.5 kilometres away from Pallas Green, five rigs are already at work and last month Connemara raised just over £1.05 million to support Teck’s expanded drilling plans, as well as other exploration projects in Ireland.

 

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Tue, 08 Mar 2011 12:40:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/21946/connemara-mining-heads-or-tails-on-an-important-new-zinc-system-26172.html
<![CDATA[News - Connemara Mining and Minco: at the forefront of developing a new Irish zinc mining province ]]> http://www.proactiveinvestors.co.uk/companies/news/21728/connemara-mining-and-minco-at-the-forefront-of-developing-a-new-irish-zinc-mining-province--25912.html Today saw more news from two AIM companies who are involved in developing very promising assets in the emerging world class zinc province of Limerick in the Republic of Ireland.

Connemara Mining (LON:CON) has raised £1.05 million for an expanded drill programme on its zinc assets in Ireland. The programme will be focused on the Stonepark zinc discovery and the Thurles area near the existing Lisheen zinc mine, operated by Vedanta Resources (LON:VED).  Lisheen is one one of the largest producers of Zinc concentrates in Europe.

Also today, Minco PLC (LON:MIO) said its joint venture partner for the Pallas Green zinc project, Xstrata (LON:XTA) has completed a preliminary assessment of the project, and considers it to be economic at its current stage. 

What’s more, Xstrata has increased the inferred resource there substantially. The new resource of 17.6 million tonnes at a 6 percent zinc cut-off is 56 percent greater in tonnage than the previously published JORC compliant resource published in August 2009.

Five rigs are already at work on the Stonepark zinc property in Limerick, where a total of 65 holes are planned for this year. Drilling has also started in the Thurles area to follow up targets identified in earlier prospecting.

At Pallas Green, Xstrata Zinc is proposing a €13 million exploration and development programme for 2011. The proposed budget comprises continued definition and exploration drilling for €10 million coupled with an initial pre-feasibility study which is estimated to cost €3 million. The will be two-thirds infill definition work and one third exploration, for a total 100,000 metres in 230 holes.

What makes the recent developments at Stonepark and Pallas Green even more interesting is the fact that they are literally next to each other and that Minco and Connemara are in joint ventures with large and respectable partners in the industry: Connemara controls 25 percent of Stonepark while Canada’s Teck Resources (TSX:TCK, NYSE:TCK)  has 75 percent, and Minco holds a 23.6 percent participating interest in Pallas Green, with Xstrata’s zinc business holding the remainder.

Zinc could be a commodity to watch. Commentators and analysts have recently been pointing out that over the next few years demand may exceed supply, as demand for galvanized steel is expected to soar in the wake of increasing migration from the countryside to cities particularly in China and India. 

China currently accounts for around 30 percent of the global zinc demand, and its construction industry is growing more than 10 percent every year. Car production is also growing.

Credit Suisse expects a zinc supply shortfall in 2016, while RBC Capital Markets would not be surprised if it occurred as early as 2014.

Considering that the partners in the Stonepark and Pallas Green projects are already very upbeat on their respective prospects, a hike in zinc prices while they are being developed hast the potential to massively  improve their economics.  Both mines are currently planned to start production in 2017.

Irish broker Davy commented on the news regarding new zinc mines in the the country, with a particular focus on the Minco story.  It noted that Ireland has a long history of zinc and lead mining with a major new project discovered nearly every decade over the last 40 years.
 
“There are very good indications that the Pallas Green project will join this list with a proposed mine start-up date of 2017. While confirmed economic with substantial grades of zinc and lead, there is still some way to go to establish the ultimate size and economic footprint.”

Davy views the positive aspect of the work in the wider Pallas Green area as being that the presence of widespread and ubiquitous mineralisation points to ongoing future additions to resources.

“In fact, management at Minco believes that the higher-grade core of the deposit still remains to be established. This refers to the possibility that deeper drilling will locate mineralisation adjacent to a feeder fault line, a defining characteristic of the Irish zinc ore fields, and one that has delivered really good grades and tonnes in other Irish zinc projects,” it added.

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Fri, 25 Feb 2011 15:10:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/21728/connemara-mining-and-minco-at-the-forefront-of-developing-a-new-irish-zinc-mining-province--25912.html
<![CDATA[News - Connemara Mining raises £1.05 mln for expanded drilling on Irish zinc projects ]]> http://www.proactiveinvestors.co.uk/companies/news/21710/connemara-mining-raises-105-mln-for-expanded-drilling-on-irish-zinc-projects-25895.html Connemara Mining (LON:CON) has raised £1.05 million for an expanded drill programme on its zinc assets in Ireland.

It is issuing 5.25 million new shares - about 20 percent of the enlarged company - to institutional investors at 20 pence a share. One warrant - exercisable at 35 pence a share - has also been issued for every placing share.

The new capital will be used for an expanded exploration programme in Ireland, focused on the Stonepark zinc discovery and the Thurles area near the Lisheen zinc mine.

John Teeling, Connemara chairman, emphasised that worldwide demand for zinc continues to grow, prices are rising.  

“We have excellent ground in Ireland in Limerick, where our partner Teck has an expanded exploration programme as well as at locations near the Lisheen mine and the old Silvermines mine, both in Tipperary.  

“These funds will expand our exciting 2011 drilling programme."

Five rigs are already at work on the Stonepark zinc property in Limerick, where a total of 65 holes are planned for this year. Drilling has also started in the Thurles area to follow up targets identified in earlier prospecting.  

Connemara also said that work is underway on the Mallow licences, adjacent to the old Silvermines lead mine and it is examining options on the Lough Sheelin block.

The placing was arranged by Optiva Securities. The new shares are expected to start trading on the AIM market on or around the 3 March 2011.

 

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Fri, 25 Feb 2011 07:52:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/21710/connemara-mining-raises-105-mln-for-expanded-drilling-on-irish-zinc-projects-25895.html
<![CDATA[News - Connemara begins drilling Thurles block in Tipperary ]]> http://www.proactiveinvestors.co.uk/companies/news/21675/connemara-begins-drilling-thurles-block-in-tipperary-25837.html AIM-listed Irish zinc explorer Connemara Mining (LON:CON) said this morning it had begun drilling on its three-licence Thurles block near the Lisheen mine in Tipperary.

The initial programme is for three 300 metre holes, the locations of which have been selected after regional and detailed geophysics followed by geological modeling.

The holes will be drilled on the northern hanging wall of faults along the floors of the Littleton Inlier.  The target is a Lisheen type zinc and lead discovery.

The Lisheen mine, next to the Thurles block, is owned by Vedanta Resources (LON:VED). Now in its second decade of operation, it is currently one of the largest producers of zinc concentrates in Europe.

The company’s chairman John Teeling said: "Zinc in Ireland is a good story.  Our discovery at Stonepark, that of Xstrata and Minco beside us and reported extensions at the Navan and Lisheen zinc mines combine well with strong demand and prices to produce an industry in good health.  

“Our ground in the Thurles area is prospective sharing many of the characteristics of the nearby Lisheen mine.  

“We have reviewed all existing data on the licences and conducted detailed geophysics.  As a result we have identified three targets.  This is high risk early stage exploration but the potential is good."

Connemara was established in 2006 and also owns the Stonepark zinc-lead project near Limerick along with more than 30 other prospecting licences in Ireland. 


 

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Thu, 24 Feb 2011 08:01:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/21675/connemara-begins-drilling-thurles-block-in-tipperary-25837.html
<![CDATA[News - Company Q&A: Teeling ends 2010 on high, but is braced for an even busier year ]]> http://www.proactiveinvestors.co.uk/companies/news/20340/company-qa-teeling-ends-2010-on-high-but-is-braced-for-an-even-busier-year-24265.html A serial entrepreneur whose business interests span diamonds, gold and oil, John Teeling is probably best known in his native Ireland as the founder of the Cooley Whiskey Distillery.   

However on London’s junior market he is widely renowned for his excellent track record as a company builder in the natural resources exploration sector.

He has been involved in more than ten AIM start-ups, which have generally gone on to realise significant returns for investors.

It has been a busy year for Teeling as three of his companies - Pan Andean Resources, West African Diamonds and African Diamonds – have been sold or merged.

He is still actively involved with Petrel Resources (LON:PET) and Connemara Diamonds (LON:CON) as well as three soon-to-be-listed exploration companies - Botswana Diamonds, Clontarf Energy and Swala Resources.

So, 2011 promises to be as frenetic as the 12 months just gone. Here in his own words are Teeling’s highlights and thoughts on the year to come. 

Proactive Investors: John, sum up 2010 for us. 

Teeling: It was a year of significant change for our group. Pan Andean was sold for cash to Petrolminerales of Canada, West African Diamonds was taken over by Stellar Diamonds in a reverse, while in December African Diamonds was acquired by Lucara of Canada. Phoenix-like, two new companies are emerging from the deals: Botswana Diamonds and Clontarf Energy, both listing on AIM in early 2011.  

Proactive: Which of your companies has progressed the most over the last year?

Teeling: African Diamonds made the best progress in 2010.  The AK6 diamond discovery in Botswana is being developed and will come on stream in the fourth quarter of 2011.  We are very proud of the fact that we participated in the discovery of a world class diamond mine.

Proactive: In your opinion what was the standout project or event?

Teeling: From an exploration viewpoint, it was the discovery by Connemara and Teck of high grade zinc ore at Stonepark North in Limerick.  This just might be the sweet spot in what is turning out to be a massive zinc discovery.  The discovery is shared between Connemara, Teck and Minco/Xstrata.

Proactive: What were the big external themes and influences on your businesses in 2010?

Teeling: Rising commodity prices, fuelled by demand from the BRICs were the principal influences.  Gold at $1,400, oil at $90, zinc at $2,300 and all-time high diamond prices are powerful motivators for junior exploration companies.

Proactive: What are you looking forward to most in 2011? 

Teeling: Next year will be frantic for our group.  Botswana Diamond’s listing on AIM in January has late stage projects in Botswana and hopes to acquire ground in Marange, Zimbabwe.  Marange has the potential to become the largest diamond field in the world.  Diamond values are low, $20-$40 a carat, but grades are up to 100 times richer than existing mines.  We are also chasing ground in a new find in the Cameroon.  It will be an exciting journey for shareholders. 

Matching the potential of Botswana Diamonds is that of Clontarf Energy, listing in February.  Clontarf has a high potential portfolio of oil and gas exploration ventures in Ghana, Peru and Bolivia.  We should also have gas production from the Gulf of Mexico and Bolivia. Clontarf Energy is the result of a merger of our own AIM listed Persian Gold and the invested assets spun off to the existing shareholders from the sale of Pan Andean.  Since the deal was announced, two new blocks have been acquired in Peru.

Proactive: What are your ambitions and targets for 2011?

Teeling: Exploration is very uncertain, so targets are written in marshmallow, not stone, but we do have targets. For Petrel we hope to see confirmation of our title to Block Six in the western desert.  I suspect that some other projects will be added to the portfolio.

Connemara will drill 65 holes in the Stonepark area.  It would be a big bonus to see the existing discoveries stretch to the southeast. 

For Botswana Diamonds: Producing Diamonds – it’s that simple, either in Botswana or Zimbabwe. 

For Clontarf Energy:  Ratification of the title to the Tanoza block in Ghana, a farm out on one or more of our Peruvian blocks and viable production in Bolivia.  

Our private gold explorer, Swala, will list in Toronto in mid 2011.

Proactive:  Are you at all worried about the rather uncertain economic outlook?

Teeling: The world economy overall had a good year in 2010. High growth rates in BRICs are very positive and should continue.  I do have concerns.  The Euro is suspect.  It cannot survive in its present form but how and when it will collapse is uncertain.   China has a massive property bubble which will burst with horrible consequences but this will only be a glitch on China’s march to world economic supremacy.

Proactive: Aside from the companies you're involved with, who should we be looking out for in 2011?

Teeling: Look for gold exploration start ups.

Our thanks to John Teeling for taking the time to talk to us. We wish him a successful and prosperous 2011. 

 

 

 

 

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Tue, 28 Dec 2010 07:36:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/20340/company-qa-teeling-ends-2010-on-high-but-is-braced-for-an-even-busier-year-24265.html
<![CDATA[News - Connemara Mining discovers zinc-lead mineralisaiton in lower zone of Stonepark North ]]> http://www.proactiveinvestors.co.uk/companies/news/20123/connemara-mining-discovers-zinc-lead-mineralisaiton-in-lower-zone-of-stonepark-north-24017.html Connemara Mining (LON:CON) updated investors on drilling in the Limerick Region, where extended zinc-lead mineralisation was discovered in the lower zone of Stonepark North.

Investors cheered the news, sending shares in Connemara up 11 percent in early deals.

Drilling has defined upper and lower zones of zinc-lead mineralisation at approximately 210 meters and 310 meters depth respectively.

The majority of high-grade mineralisation discovered to date is in the upper zone. Recent drilling tested the lower zone.

Hole TC-2638-60, which was drilled 200 metres northwest of earlier holes, intersected intervals of 22.45 metres grading 1.24 percent zinc and 0.07percent lead and 1.4 metres grading 8.05 percent zinc and 0.17 percent lead.

Ten kilometres to the southeast of Stonepark, hole TC-450-009, intersected a 30 meters breccia zone containing 2.9 metres of 0.95 percent zinc and 0.02 percent lead. Visual inspection suggests this zone is very similar to the zones peripheral to Stonepark.

The company said that the extension of zinc-lead mineralisation broadens the scope of the zone.

“The Limerick area continues to grow in significance as a potential zinc province.

“The size, shape and grade of the Stonepark discovery is not yet known so it is important to maintain all of our licences in good standing to allow for an expansion of existing and / or new finds.

“One of the holes drilled 10 kilometres from Stonepark discovered low grade zinc and lead in a similar setting to the areas surrounding Stonepark. This opens up a whole new area,” said chairman of Connemara Mining John Teeling.

Step out drilling is ongoing with nine holes drilled on blocks up to 40 kilometres away from Stonepark in the Newcastlewest area with no significant mineralisation found to date.

Connemara plans to have 4 or 5 rigs drilling up to 50 holes in the Stonepark area in 2011.

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Wed, 15 Dec 2010 08:41:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/20123/connemara-mining-discovers-zinc-lead-mineralisaiton-in-lower-zone-of-stonepark-north-24017.html
<![CDATA[News - Connemara Mining Audio Interview Transcript, with Chairman John Teeling ]]> http://www.proactiveinvestors.co.uk/companies/news/19110/connemara-mining-audio-interview-transcript-with-chairman-john-teeling-22838.html Harry Norman:    Hello, this is Harry Norman for Proactive Investors and welcome to another Proactive audio interview. Today is Wednesday 27th October 2010 and I’m talking with John Teeling, chairman of Connemara Mining, listed on the AIM market mining sector. Stock ticker, CON. Share price, 19p. Market cap, 3.89 million pounds sterling. Web address, www.connemaramc.com. John, thank you very much for joining us for this interview.


John Teeling:    My pleasure.


Why zinc, why Ireland, why now?


Well the zinc story is very easy to answer. India and China. Their economies are growing fast, they need cars, housing, appliances and electronics and that’s what zinc goes into. And that’s going to continue. World Growth rates for zinc have grown from 2% p.a. to 4% p.a. and that’s going to continue.

Why Ireland? It’s the best place in the world to find zinc. Over the last 40 years there’s been a higher rate of zinc discovery in Ireland than anywhere else in the world. We’ve had 18 big discoveries and we have built some of the largest zinc mines in the world; Tara, Silvermines and Lisheen to name three. And that’s likely to continue given where we are with new discoveries.

Why now? It’s because the demand is there and the supply is, at best, stable, and probably falling. This is reflected in the fact that zinc is $2,500 a tonne.  This is a very good price so most zinc miners will be doing very well at the moment. Now is the time for zinc.

Connemara Mining has recently had some encouraging drill results at Stonepark North, which is adjacent to your Stonepark discovery, both of which are joint ventures with Teck Resources. And part of this new discovery was at relatively shallow depths. Would you talk us through how Stonepark North is shaping up, John?


It’s shaping up fairly well. By the end of 2011 we will put 60 holes in the Stonepark area, mainly in Stonepark North. We will have a very good idea of the geology the grade and what the likely size is.

To put this into context, the Limerick area has been very positive for zinc prospecting in recent years.  On the fifth hole of an exploration programme with Teck in 2007 Connemara had a very good discovery at Stonepark.  Over the last two and a half years, that discovery has been extended to Stonepark North, which is 1.7km away. We had hoped that these two would be connected, and there’s still the possibility that they are, at a deeper level of maybe 300m to 350m.

Stonepark North is, a very a flat lying discovery at 200m. So it is very easy to mine. Apart from being easy to mine, it is very high grade by world standards, including one hole that we announced in March of this year which has 45% of combined lead and zinc.

To put that in context, at $2,500 a tonne of zinc that means that each tonne of rock in the ground is worth about $1,200.  Given that it costs significantly less than a $100 to mine this is a phenomenal target. So this is very, very prospective, and very exciting.

What’s going to happen now is we have to drill Stonepark North to see how big is it, how long is it, how wide is it and how rich it is. It is currently 650m long, and it’s about 150m wide. That, by itself, is a substantial block of ore, maybe 5 million tonnes, maybe more. The drilling will extend this North, South, East and West.


What is the situation at Stonepark in Limerick, and what are your plans for exploration in the Stonepark area, John?


The plan calls for 60 to 80 holes between now and the end of 2011. Most of those holes will go into Stonepark North to extend that particular zone. But the other very exciting prospect will be to see if we can join up Stonepark North and Stonepark itself, probably, at a lower depth, maybe at 350m.  This will mean two strata. A few holes will be scouting holes in adjacent blocks, but the main focus (over the next 15 months) will be simply to prove up grade and quantity in that particular area.


What is the ‘Limerick trend’ and why do you say that it is now almost certain that the next world class zinc mine brought into production will be in the Limerick area, and that there is a growing possibility of there being two or more zinc mines brought into production in Limerick?


In the last six or seven years there have been world class discoveries in the Limerick area.  This is now being looked on as a special trend which is typical of the Irish zinc industry, that is limestone based, extending Northeast to Southwest.

Limerick already has the Stonepark and Stonepark North discoveries, which are ours.  Across a boundary, not more than three quarters of a mile away, you have the Xstrata/Minco discoveries, which has been worked on for about six or seven years.

The Xstrata/Minco discoveries are very large and very extensive. Most of the grades are not as good as Stonepark North, but they are still very good. You also have discoveries by Lundin, further to the northwest, and further to the southwest, by Boliden.

Some commentators and brokers feel that you can budget for 40 to 60 million tonnes of zinc ore in the Limerick region, particularly in the Connemara and Minco areas.

If this is so, and there’s increasing probability that it is, you could build one very large world class zinc mine.  You could easily build a 10,000 tonne a day zinc mine in Limerick, and have it supplied for 30 or 40 years. Tara Mines in Navan Ireland is 10,000 tonnes a day of production, and that’s the fifth biggest zinc mine in the world.
     
The other possibility is, given that the two owners each want new zinc mines, is to build two mines, probably 6,000 tonnes a day each.  This would suit our two multinational partners Teck and Xstrata.

Each of those mines then would be in the top 12 in the world. The ore body has the potential to supply both two mines.


The Thurles Block in Co. Tipperary is about 5km south of the Lisheen mine. What have you got that’s of interest on the Thurles block, and what are your plans there?


It is a very exciting development for Connemara. The Lisheen mine is owned by Anglo American. They have sold it to Vedanta, which is the largest zinc producer in the world.  Vedanta is an Indian company.

The Lisheen mine runs out of ore in 2013. There is a possibility of finding ore in the vicinity and supplying it to the Lisheen mine. On the Thurles block, where we have four licences, which we have prospected with geophysical and geochemical techniques, we have identified three high class targets.

We will drill each target and hope to find a certain level of zinc. The plan would be to supply the existing facility at Lisheen. All we would have to do to quarry so lower grades of zinc, maybe 4% would be viable.  You could be in production in 18 months or less, and you don’t require any extensive planning problems. There’s no tailings, there’s no waste water, and there’s very little Capex.

We think that our targets on the Thurles block are very good.


What is happening with the rest of Connemara’s extensive zinc prospect portfolio in Ireland, John?


We have two other main blocks. One of them is Lough Sheelin block is 20km northwest of the Tara mine at Navan. We also have the Nenagh Block which is around the old Silvermines mine in Tipperary.

Our strategy has always been to try and go for blocks where there is known mineralisation, and where they are adjacent to other existing or former mines, on the basis that the best place to find a mine is where there is a mine, or was a mine.

We have had an initial approach from a company who would like to joint venture the Lough Sheelin block. This is a block of 5 licences where we have 11 drill holes most with zinc.  It needs a lot more drill holes.  We could not take on another very large drilling programme while we’re still growing in Limerick.

The Nenagh block is at an earlier stage, but the initial indications are good.  There has been some prior drilling on the block , which is positive.  We will do some work ourselves between now, and the middle of next year. And if this prospectivity holds, we would seek to joint venture the block.


Connemara mining raised about £1 million last July. Where does this leave the company’s financial situation going forward, John?


Fully funded to the end of 2011 for a drilling programme with Teck Resources of up to 60 holes on Stonepark; for a few preliminary holes on the Thurles block, and some geophysical and geochemical work on the Nenagh block.


What can investors expect from Connemara mining over the next 12 to 18 months, John?


A continuous flow of results from the Stonepark North discovery. We’ve been fairly dormant with news in the last few months because we were drilling the surrounding licences to meet work commitments. These are very good licences, adjacent to our Limerick block. We want to make sure we have them in good standing with the Irish Government. We have one rig now back on site at Stonepark and there’s another rig joining by the end of October.

We will have a flow of results coming right through 2011. If we expand to five rigs, our news flow will be even bigger. Not every hole will hit, but we’ll be hopeful of some very good results.

You could also expect some corporate news, on Lough Sheelin and/or Thurles.


What do the Connemara mining team bring to the exploration and development of zinc projects in Ireland?


Unrivalled knowledge of Irish zinc. Two of us, myself and Viv Byrne have been involved in zinc since the late ‘60s in Ireland. The two technical directors have less experience, only about 30 years each!!. We know Irish zinc.  I don’t think you can find a better team.  That’s why our focus will continue to be on zinc in Ireland.

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Tue, 09 Nov 2010 09:13:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/19110/connemara-mining-audio-interview-transcript-with-chairman-john-teeling-22838.html
<![CDATA[Media files - John Teeling, Chairman of Connemara Mining, talks about the best country in the world to find zinc ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/700/john-teeling-chairman-of-connemara-mining-talks-about-the-best-country-in-the-world-to-find-zinc-576.html Wed, 03 Nov 2010 10:46:00 +0000 http://www.proactiveinvestors.co.uk/companies/stocktube/700/john-teeling-chairman-of-connemara-mining-talks-about-the-best-country-in-the-world-to-find-zinc-576.html <![CDATA[News - Connemara Mining Sees Opportunities From Lisheen Zinc Mine ]]> http://www.proactiveinvestors.co.uk/companies/news/18054/connemara-mining-sees-opportunities-from-lisheen-zinc-mine-21613.html Chairman of Connemara Mining (LON:CON) John Teeling said Vedanta Resources' (LON:VED) takeover of Ireland’s Lisheen mine could “offer opportunities” for Connemara Mining.

Vedanta bought the Tipperary zinc operation along with other bigger mines in South Africa and Namibia from previous owners Anglo American as part of a US$1.8 billion deal, which estimated Lisheen’s value at US$308m.

Teeling's firm has ground next to the existing mine and the chairman said: “The impending takeover of the Lisheen mine by Vedanta of India may offer opportunity.  

“Lisheen will be exhausted in the next few years.  Connemara holds prospective ground adjacent to Lisheen.  This ground also needs to be explored. 

“On a wider front it may prove to be feasible to supply the Lisheen processing complex with ore from the Limerick area.”

His comments were contained in the company’s interim results statement, in which the focus was very much on Connemara’s Stonepark operation, in Limerick, where it is partnered with Teck Resources (TSX:TCK, NYSE: TCK).

Nine drill holes remain to be completed this year and a further 80 are planned for 2011.

“It is possible that an ongoing technical review may increase the proposed 2011 drilling programme,” Teeling said.

“It is a good time to be in zinc.  Zinc is used in cars, housing, appliances and electronics, all uses growing rapidly due to demand in India, China, Brazil and other emerging economies,” he added.  

“Supply is currently flat with a significant production deficit anticipated over the next decade.  Fifty mines will close within the next 6 years.  There are few new projects scheduled to come on stream, which should result in a growing supply/demand gap.  Zinc price forecasts are positive.”

The company raised £1 million in July, which will fund its drill programme next year.

The company posted a pre-tax loss of €164,000 euros in the six months to June 30 compared with €111,000 a year earlier.

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Thu, 30 Sep 2010 13:30:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/18054/connemara-mining-sees-opportunities-from-lisheen-zinc-mine-21613.html
<![CDATA[News - Optiva Securities: Connemara Mining may sit on world-class zinc find ]]> http://www.proactiveinvestors.co.uk/companies/news/16234/optiva-securities-connemara-mining-may-sit-on-world-class-zinc-find-19565.html Connemara Mining’s (LON:CON) latest drilling update on the Stonepark project in Limerick reveals it may be part of a ‘world-class’ zinc find, according to research carried out by Optiva Securities.

Last week the company, which has partnered with Canada’s Teck Resources (TSX, NYSE: TCK), said the work had defined a zone of zinc-lead mineralisation with a strike length of at least 650 metres.

Optiva believes Stonepark may actually be a continuation of the neighbouring Pallas Green deposit being developed by Xstrata (LON:XTA) and Minco PLC (LON: MIO).

"From what is known so far it would seem that both Stonepark and Pallas Green could form part of the same ore-body and be of world class resource status," the broker said in a note to clients.

The ramifications of this analysis are not lost on Optiva, which says it throws open a number of interesting ‘corporate options’ to monetise its key project.

This might involve either Teck or Xstrata taking control of the two areas, though there is an alternative.  "Further interest in the region comes from Vedanta LON:VED), who recently acquired Anglo-American’s (LON:AAL) Lisheen zinc mine for US$308m, which lies just 60 kilometres from Stonepark," the broker added.

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Mon, 02 Aug 2010 10:54:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/16234/optiva-securities-connemara-mining-may-sit-on-world-class-zinc-find-19565.html
<![CDATA[News - Connemara Mining continues to uncover encouraging drill results at Stonepark zinc project ]]> http://www.proactiveinvestors.co.uk/companies/news/15769/connemara-mining-continues-to-uncover-encouraging-drill-results-at-stonepark-zinc-project-19042.html Connemara Mining’s (LON:CON) ongoing drilling at the Stonepark North zone in County Limerick, Ireland, has extended the high-grade zinc-lead mineralisation and defined a flat-lying zone of zinc-lead mineralization with a strike length of at least 650m.

"Big high grade Irish style deposits are what we are looking for in Limerick. To date the results are encouraging ... the Stonepark North discovery continues to grow in size and importance”, Connemara Mining chairman John Teeling commented.

The company, alongside its joint venture partner Teck Resources (TSX, NYSE: TCK), reported the latest results from the ongoing 10,000m diamond drilling program. From Hole 55, the partners intersected a 4.9m zone of massive sulphides grading 10.57% zinc and 3.05 % lead, from a depth of 195m, including a 2.75m zone at 16.47% zinc and 5.26% lead.  Hole 55 is approximately 150m northwest of hole 45, which previously intersected 7.5m at 19.2% zinc and 8.5% lead from 209m.

“Hole 55 has significant commercial grade zinc and lead over good widths at a relatively shallow depth,” John Teeling added.

“[Stonepark North is] already at least 650 metres in length and at least 100 metres wide, the zone is open to the north and south. This reasonably shallow zone is flat lying with excellent grades of zinc and lead. These results enhance the potential of the Limerick properties.”

The Stonepark North zone is located approximately 2km away from the original Stonepark discovery, and the company said it appears to represent the shallower, up-dip portion of a larger mineralizing system. The zone remains open to the north and south.

The Stonepark drilling is being co-funded by the partners, with Teck contributing 75% and Connemara paying the remaining 25% - in proportion with the terms of the Teck farm-in which will see it gain 75% of the project by the end of 2010.

Earlier this month, Connemara conditionally raised £1.06m through a placing of 5.2m new shares at a price of 20p each.

“The recent placing ensures that Connemara is now fully funded for the 2010/2011 Stonepark work programme. We will also drill the prospective 100% owned licences in Thurles - adjacent to the large Vedanta owned Lisheen zinc mine," Teeling added.

According to a note by Beaufort International in June, the company’s exceptional recent drilling results and much anticipated resource estimates are likely to have just scratched the surface of prospects which are still over 60% unexplored.

The research note also highlighted that Connemara Mining’s portfolio of 37 licence blocks are ideally located on identified trends that spread right across Ireland’s Midland Orefield. According to Beaufort, the region boasts the largest number of zinc discoveries per square kilometre worldwide, “an unparalleled opportunity”.

“Given that Ireland’s south western deposits tend to occur as a ‘string of pearls’ separated by perhaps 2 to 5km and that the larger part of both prospects remain unexplored, it is just possible that the two companies are working on the same giant mineralised system ... Which one would have the head and which one the tail of this particular ‘elephant’, however, remains to be seen,” Beaufort stated.

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Tue, 20 Jul 2010 10:54:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/15769/connemara-mining-continues-to-uncover-encouraging-drill-results-at-stonepark-zinc-project-19042.html
<![CDATA[News - Connemara Mining raises £1.06m to fund zinc drilling in Ireland ]]> http://www.proactiveinvestors.co.uk/companies/news/15411/connemara-mining-raises-106m-to-fund-zinc-drilling-in-ireland-18646.html Connemara Mining (LON:CON) has conditionally raised £1.06m through a placing of 5.2 million new shares at a price of 20p each. The proceeds will finance drilling activities at the company’s zinc interests in the Republic of Ireland, at the Stonepark JV with Teck Resources (TSX, NYSE: TCK) in Limerick, and on licences adjacent to Vedanta’s (LON:VED) Lisheen zinc mine in Tipperary.

The new shares were placed by Smith & Williamson Corporate Finance Ltd and Optiva Securities Ltd, with a number of new and existing investors. The placing shares equate to 25.8% of the company’s enlarged issued share capital.

Trading of the new shares is expected to become effective on London’s AIM market on or around 26 July 2010.

In June’s full-year results for the year ended 31 December 2009, Connemara reported its operational progress made during the year at Stonepark, which continues to grow in size and importance, with recent results showing an extension of a high grade mineralisation.

Also in June, the company said it intersected high-grade zinc-lead mineralisation 400 metres to the southwest of the Stonepark North discovery, which it said suggested either an extension to the discovery or a new zone.

According to a note by an independent merchant bank, Beaufort International, the exceptional recent drilling results and much anticipated resource estimates are likely to have just scratched the surface of prospects which are still over 60% unexplored.

The research note also highlighted that Connemara Mining’s portfolio of 37 licence blocks are ideally located on identified trends that spread right across Ireland’s Midland Orefield. According to Beaufort, the region boasts the largest number of zinc discoveries per square kilometre worldwide, “an unparalleled opportunity”.

According to the merchant bank, the new JORC release from Minco will provide a resource estimate approaching that of the soon to be commercially-exhausted Lisheen mine of Vedanta Resources (LON:VED).

“Given that Ireland’s south western deposits tend to occur as a ‘string of pearls’ separated by perhaps 2 to 5km and that the larger part of both prospects remain unexplored, it is just possible that the two companies are working on the same giant mineralised system ... Which one would have the head and which one the tail of this particular ‘elephant’, however, remains to be seen,” Beaufort stated.

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Fri, 09 Jul 2010 13:28:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/15411/connemara-mining-raises-106m-to-fund-zinc-drilling-in-ireland-18646.html