Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors
Why invest in Z?
Zinc One Resources Inc: THE INVESTMENT CASE

Zinc One is aggressively expanding in the zinc space

Zinc One’s chief executive Jim Walchuk argues that the acquisition of Bongara and Charlotte takes the firm closer to production
Zinc One is aggressively expanding in the zinc space
INVESTMENT OVERVIEW: Z The Big Picture
Think zinc - Zinc One is a new name in the space

A zinc-focused exploration and development company

Zinc One (CVE:Z) is still a relatively new name to the markets, having emerged from the old Rockridge Capital with a new name and a new focus early in 2017.

The strategy is straightforward enough. The company now aspires to be “a zinc-focused exploration and development company”.

To that end, at the same time as it officially changed its name Zinc One also acquired the Scotia zinc property in British Columbia.

The Scotia project

The Scotia project consists of one mineral claim totalling 4,014 hectares, located in the Scotia River area of west central British Columbia, approximately 40 km southeast of Prince Rupert.

The deal requires a C$500,000 spend on the property from Zinc One before the second anniversary of the agreement, as well as the payment in aggregate of 900,000 shares and C$50,000 cash.

But that was just the start.

Acquisition of Peruvian zinc projects through purchase of Forrester Metals

The ink was scarcely dry on the Scotia deal before Zinc One moved on another, much larger deal. It was announced on 1 February 2017 that the company would acquire Forrester Metals, in a one-for-5.5 all-share acquisition, a deal that was approved by the TSX in mid-May. 

The Forrester key asset is the Bongara zinc mine and the associated Charlotte Bongara zinc project in Peru. Here, zinc oxide mineralisation occurs over a 2.5 kilometre trend, and much of the area has been subject to sampling from pits and trenches, as well as by shallow drilling. The zinc oxide mineralisation is open along strike and moves into another exploration area known as Campo Cielo, where pits and trenches have also exposed high grade.

Historical exploration work showed a resource of up to 1.2 mln tonnes of oxides grading around 21% zinc, although this is not a number that is compliant with modern NI-43-101 legislation.

Five drill holes at Charlotte Bongara delivered high grades in drilling conducted in 1994.

Drilling planned

Zinc One now plans a drilling programme of up to 300 shallow holes at Bongara in order to tighten drill spacing in the areas of known mineralisation and to test the periphery. A trenching and pit sampling programme will get underway simultaneously. The plan is to put together a NI 43-101 compliant resource update by the end of the year.

Well financed

The company raised C$10 mln in conjunction with the acquisition of Forrester Metals at a unit price of C$0.60 where each unit consists of one Zinc One share and one half of a share purchase warrant, with each whole warrant exercisable at C$0.90.

Bongara and Charlotte to be flagship assets, says chief executive

Zinc One’s chief executive Jim Walchuk argues that the acquisition of Bongara and Charlotte takes Zinc One closer to becoming a zinc producer.

“Although there are other quality assets in Forrester, it is the high-grade zinc Bongara and Charlotte Bongara properties which will become the flagship project of Zinc One,” he said. “This is an exciting opportunity for Zinc One and all its shareholders.”

View full Z profile View Profile

Zinc One Resources Inc Timeline

Related Articles

ZincBalls_5873cfdacec13.jpg
January 09 2017
Hannan’s flagship is the Kilbricken base metal project, located within the Clare prospecting licenses
Glencore-zinc-lead_opt.jpg
May 25 2017
Zinc One’s chief executive Jim Walchuk argues that the acquisition of Bongara and Charlotte takes the firm closer to production

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use