Zinc of Ireland drilling exploration will test the high priority Rapla zinc-lead target, bearing remarkable geological similarities to the adjacent $12 billion Lisheen mine near Kilkenny in Ireland.
The target – acquired by a winning ballot – is typical of ‘Irish type deposits’, noted for their premium grades and depth into the feeder fault.
It is fair to say the company hit the jackpot with the win amid zinc futures skyrocketing beyond US$4,500 a tonne in April –just 100 dollars shy of its record peak hit in November 2006.
Exchange and trade inventory has been falling dramatically, with LME’s European warehouses virtually empty while those in the US have declined to 120,825 tonnes, their lowest since June 2020.
Smelters are halting or reducing zinc output as high energy prices exuberated by the war in Ukraine, making the production unprofitable.
The company said it had consolidated an extensive and quality land package with standout drill-ready targets.
“All at a time with zinc trading at all-time highs on the London Metals Exchange, any success in our drilling could have serious implications,” non-executive director Thomas Corr said.
Drilling is due to start next week while the company progress on large step out targets at its Kildare project outside of its existing 11.3mt JORC resource.
ZMI’s Australian Stock Exchange-listed share price has risen 7.84 per cent today, selling at 5.5c (7.49 am UTC+ 8 hours).