www.connemaramining.com
Connemara Mining Company plc was established in 2006 by veterans of the Irish zinc industry to exploit zinc opportunities in Ireland and currently holds 38 prospecting licences in central and south-west Ireland. Connemara’s licences are for some or all of the base metals (Bm), barite (b), gold (g), silver (s), and platinum group elements (PGE). The Connemara exploration philosophy is trendology and closeology - follow the mineralised trends and obtain ground as close as possible to existing or former zinc/lead mines.
Connemara Mining shares boosted by “positive and significant” results from Limerick zinc discovery
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.
