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Arkle Resources boosted as Glencore funds Stonepark zinc project

Good neighbour: Glencore owns the nearby Pallas Green zinc deposit and it is now effectively a stakeholder in both Stonepark and Group Eleven's PG West project.

Arkle Resources PLC - Arkle Resources boosted as Glencore funds Stonepark zinc project
Stonepark is the Ireland's second largest zinc-lead deposit - Glencore's Pallas Green is the largest

Arkle Resources PLC’s (LON:ARK) Stonepark zinc project, near Limerick, has been boosted by an injection of funds from global mining major Glencore.

The big-cap miner has invested just over C$1mln into Group Eleven, Arkle’s partner in Stonepark, with a share subscription giving it around 11.58% of the company.

Irish metals explorer Arkle noted that the majority (about 70%) of the new Glencore funds earmarked for Stonepark and Group Eleven’s PG West licences.

READ: Current price very good for Irish zinc miners

Significantly, Glencore owns the Pallas Green deposit which is in the vicinity of Stonepark (which is adjacent) and PG West.

"As we have said in the recent interim report, there is significant interest in the Stonepark zinc project,” said Patrick Cullen, Arkle chief executive.

“The established resource is higher grade and lies at shallower depths than the adjacent Pallas Green deposit.”

Cullen added: “The recently drilled 'Kilteely hole' intersected the outer margin of potential new Irish-Type zinc system and there is a compelling case for further deep drilling in that area. 

“We look forward to further updates."

Arkle owns a 23.44% interest in Stonepark, while Group Eleven holds the other 75.56%.

Limerick zinc projects in detail

Arkle owns a 23.44% interest in Stonepark, while Group Eleven holds the other 75.56%.

Stonepark is host to an estimated 5.1mln tonnes of resources, with 11.3% zinc plus lead, as stated in the project’s maiden resource assessment.

At this point it is Ireland’s second largest zinc-lead deposit, behind Pallas Green, and, according to Arkle, other opportunities exist for significant new discoveries elsewhere in the vicinity.

Group Eleven is pursuing a campaign of work to establish a new exploration model, to the south of the known deposit.

For context, Pallas Green is host to some 44mln tonnes with 8% zinc-and-lead though it is believed that the deposit’s under-explored vicinity may be significantly larger.

PG West is, as the name suggests, located to the west of Pallas Green – connected and contiguous to Stonepark (which is located between Pallas Green and PG West). It is 100% owned by Group Eleven.

The 1,055 square kilometre licence area is earlier stage than both Stonepark and Pallas Green, and, has yet to be the subject of a resource estimate.

Quick facts: Arkle Resources PLC

Price: 1.25 GBX

AIM:ARK
Market: AIM
Market Cap: £1.65 m
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Glencore's investment into Group Eleven 'a mark of confidence in the future...

Mining Capital's Alastair Ford discusses the recent investment by global miner Glencore (LON:GLEN) into Group Eleven Resources Corp (CVE:ZNG) (OTCMKTS:GRLVF). They're backing the exploration company to the tune of C$1 million. Vancouver-based Group Eleven is advancing the Stonepark zinc...

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