Eastern Metals Ltd (ASX:EMS) has welcomed the recommendation of the New South Wales mining regulator for its EL6321 tenement licence covering the Browns Reef polymetallic base metal sulphide deposit to be renewed in full, without the need to relinquish any ground.
EL6321 has been recommended for renewal for another six years and will now expire on October 19, 2028.
The company is exploring at Evergreen and Pineview prospects within the Browns Reef large load of zinc-dominated mineralisation.
Browns Reef showing Evergreen (red dot at the centre of the tenement) and Pineview (two red dots to the south of Evergreen).
Diamond drilling
Eastern Metals intends to drill a further six diamond holes at Evergreen next year after delivering strong zinc and lead values from the six holes drilled in 2022.
The results of this drilling, along with two holes drilled by a previous explorer, are expected to be used for the publication of a JORC 2012-compliant resource estimate for this zone.
At Pineview zone, the company intends to drill two diamond holes in 2023.
In addition, it expects to drill some 450 shallow aircore holes to test geochemical anomalies and other targets elsewhere on the Browns Reef tenement next year.
Not a sunset industry
Eastern Metals notes a Goldman Sachs (NYSE:GS) report published in the Australian Financial Review on December 15, 2022, that suggests mine supply constraints will lead to significant price rises in 2023.
In the report, Goldman had forecast a supportive backdrop for zinc, as another market deficit “will cause” prices to average US$3,738 a tonne in 2023, the company noted.
Given its water-based chemistry, zinc’s traditional role has been its ability to prevent corrosion in steel structures through the application of a thin coating of zinc to produce galvanised steel.
For that reason, it is a preferred material for use by electric vehicle and solar panel manufacturers. It is also increasingly being used in zinc-ion batteries as it is deemed safer than lithium-ion batteries.