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Arkle kicks off formal review of Stonepark zinc project

“The board believes now is an excellent time to review that decision: zinc prices remain robust well above the $2,000 per tonne range, and there is interest in Stonepark”

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Global zinc stocks remain tight

Arkle Resources PLC (LON:ARK) is examining options for its 23.44% stake in the Stonepark zinc project after it attracted interest from “other industry participants”.

Last month, FTSE 100 giant Glencore PLC (LON:GLEN) invested C$1mln in Stonepark operator Group Eleven Resources Corp (CVE:ZNG).

READ: Glencore’s arrival on the Group Eleven share register is likely to be a game-changer

Arkle chief executive Patrick Cullen said: “There is significant interest in the Stonepark zinc project, we believe because of the high grade and relatively shallow position of the established Inferred Resource and its strategic location adjacent to the far larger Pallas Green zinc-lead deposit.

He pointed to the “significant upside potential for a major discovery” along the ‘Pallas Green Corridor’ in line with the model proposed by Group Eleven, with the southern part sparsely explored but recent drilling revealing the potential for further discovery.

“Newly reviewed airborne geophysical is assisting in refining the new targets as well as revealing newly prospective features in this area of the Stonepark block,” Cullen said.

As well as its share of ownership, Arkle holds offtake rights on 23.44% of any production from Stonepark.

“In the event of a sale by our partner we hold equivalent pre-emption rights,” Cullen said.

“In 2017, when the original partners Teck Ireland Ltd sold their majority stake, we elected to maintain our share and contribute accordingly. 

“The board believes now is an excellent time to review that decision: zinc prices remain robust well above the $2,000 per tonne range, and there is interest in Stonepark.”

Quick facts: Arkle Resources PLC

Price: 0.875 GBX

AIM:ARK
Market: AIM
Market Cap: £1.89 m
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Arkle Resources welcomes closer relationship with Glencore following partner...

Arkle Resources PLC's (LON:ARK) Patrick Cullen speaks to Proactive London's Andrew Scott after the news that FTSE 100-listed mining giant Glencore PLC (LON:GLEN) invested in Group Eleven Resources, the group's Canadian partner in Stonepark. He says the investment and confirmation of further...

on 18/5/20

2 min read