SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Ride the Tiger with CD
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: TrueScouse who wrote (66541)11/20/2006 1:14:04 PM
From: zoo york  Read Replies (1) of 313017
 
Hi Howy!

While I was at the New Orleans conference last week, one of the discussion topics that came up with the analysts was the outlook for zinc. I was hanging out in the hotel bar late on Thursday night having drinks with some management of juniors, and Eric Coffin. They all agreed that zinc is going to surprise a lot of people, and Coffin thinks that zinc will surpass copper in price per pound next year. That just about rocked me off my chair, but he just said the supply is in deficit and there are not enough new projects coming on stream to fill the rising demand.

So if these guys are right, then we may see a mini boom for all of the polymetallic juniors that have zinc production. I would say that SPM could be a beneficiary of that considering that we have so many zones with more than 5-7% zinc. The big question of course will come down to the metallurgy and the anticipated recovery rates. If SPM can even achieve 75% recovery efficiency, then its game on. They plan to be running 2000 tonnes per day through that mill by the end of the year, and that would add up very quickly if they are running a zinc rich ore. For comparison, just think how much the junior copper producers are making running copper with grades of 1-2%...

The other junior on my radar right now is DIB.V - Diabras. They are currently mining about 300 tonnes per day, but they have many zones from drill data where the zinc percentage runs to double digits.

cheers!

COACH247
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News