Arkle Resources Plc (LON:ARK) highlighted a positive outlook for zinc ahead of its fully funded future drilling activity in Ireland.
It noted that zinc is widely used in key industries, including electronics and pharma, and supported by the emerging economies is growing at around 4% up from 2% a year. Prices above US$2,000 per tonne are generally considered to make Irish zinc operations profitable, and, currently, the metal trades at around US$2,075.
The company’s flagship asset is Stonepark, a joint venture with Canadian firm Group Eleven (which following recent stakebuilding is 26% owned by Glencore).
READ: Arkle raises £250,000 to move ahead with Irish zinc and gold
Arkle chairman John Teeling, in a results statement, noted that it remains committed to Irish zinc and, whilst it presently intends to maintain its stake in Stonepark, it may consider additional partnering possibilities and may look at opportunities in other territories.
“Stonepark is the bedrock asset for Arkle. It needs more drilling to expand the resource,” Teeling said.
“Under the joint venture we can agree to participate in or dilute, in any exploration programme. This gives us flexibility. There is ongoing interest from external parties in this deposit.
“The interest shown by neighbours Glencore is encouraging. We are hopeful of significant developments.”
Teeling noted that Arkle would like “fresh eyes” to look at Mine River assets, meanwhile, in Donegal its gold assets retain potential that needs to be prospected and explored – this potential opportunity will be enhanced by the third party development of the nearby Dalradian mine, he added.
“The Arkle team has extensive international experience and we see a flow of potential deals. None, to date, have offered better than what we have in Ireland. Many are cast-offs from other exploration companies, others are in jurisdictions with title issues,” Teeling said.
“We have identified one or two areas where we believe our skill set and experience can bring value. But the immediate future goal is to create value in our Irish zinc and gold interests.”
In terms of financial results, the pre-revenue exploration company reported a €313,860 loss for the year. It ended December with €39,631 of cash and recently, in May, raised £250,000 to fund exploration activities at the Stonepark project.