Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 : Dino's Bar & Grill -- Ignore unavailable to you. Want to Upgrade?

To: Goose94 who wrote (18859)	6/12/2016 9:00:20 AM
From: Goose94	Respond to of 203723

The Zinc Putsch is On There was a curious juxtaposition this week that we noted on the kitcometals.com price page. While a story thundered that the World Bank was trimming global growth projections the reality of prices was very different with all base metals up for the day and Zinc up a stunning 2.5% to 93 cents, the highest level in years. It was only a couple of weeks ago crossing the 80 cts threshold and it is now a long way from the 67 cts at which it bottomed in the second half of last year. It seems but a distant memory, but last October the obituaries were being written for Glencore, the world’s largest Zinc trade with over 60% of global traded volumes. Now those fears are well in the past and Glencore, like Zinc, has arisen from its grave. At this point in time we are looking at a nearly 50% uplift in the price in a period of a mere nine months. There is no other major metal, precious or base, that has managed such a rise in such a short amount of time in recent memory. If anything the pace has picked up in recent times. The rises are starting to look almost symmetrical with the diabolical fall from the middle of last year. As the chart above shows, zinc has found resistance in previous years around the $1.10 per lb level and has then retreated< However the supply situation has never been as bad in the last ten years as it is now. Heavy underinvestment has taken its toll on the pipeline of new projects, to the effect that there aren’t any to speak of. Therefore the International Lead and Zinc Study Group (the leading “thinkers” on this topic) have projected a shrinkage in supply for 2016, just as prices have started to surge. Here is their projection. It may not be a large decline but it’s the second negative year in a row and reflects declining production from existing mines rather than mothballing or production cuts as a response to weak prices. We are gearing up for the long awaited perfect storm in zinc, where a modicum of demand growth encounters a chasm in the production pipeline. Though maybe we should rephrase that as there is NO production pipeline to speak of. This is the major metal where least money has been spent since 2006 in new discoveries or development than any other metal. Zinc is of course linked inextricably with the fortunes of Lead, where prices have lagged and production has also been impacted by closures of mines (and repurposing of refineries). This trend is shown in the chart below: The year to contrast with is 2008, a bad year for every metal where the opening/closing was not even vaguely as unbalanced as now with an even greater accentuation of the closures in 2015. Then if things couldn’t get worse in 2016 we are seeing: ? Glencore has reduced zinc mine output by 500kt/yr in Australia, Kazakhstan and Peru ? Reduced output at HZL’s Rampura Agucha operation in India due to technical difficulties ? CBH Resources and Perilya to reduce production at Endeavour and Broken Hill mines in Australia ? Suspension of output at Al Masane in Saudi Arabia This trend is feeding through to LME warehouse levels as the chart below shows. Statistics (always rubbery out of China) suggest that Shanghai stocks are not what they were either with a considerable shrinkage. Conclusion Added to this is the estimate for the trade study group of a 3.5% rise in demand in 2016, we can see a supply crunch that is motoring the price along nicely. With such a tailwind, and end users scrambling to write contracts to guarantee supply, I would expect the price to breach $1 per lb in the very near future and then head steadily towards the previously impenetrable $1.10 barrier. As they said on old maps “Beyond here there be monsters”. What will happen is that no one in the mining industry shall stir from their behinds until prices breach $1.20 and even then they would rightly (on previous bad experience) want to see them hold there before getting over-excited about launching projects. This means an ever-worsening supply situation. For existing producers this will be a deeply profitable and long overdue development. The mood will fire up the hunt for juniors that have respectable projects. Many have been on the backburner so long they have melted onto the pot…. With an investor universe largely clueless on zinc’s dynamics this will very likely degenerate into a blind rush in the direction of the best promoted offerings.. Ever was it thus, but still zinc above $1.20 will be exciting territory and well worth positioning oneself for now. investorintel.com

To: Goose94 who wrote (18859)

6/28/2016 2:36:49 PM

From: Goose94

Read Replies (1) | Respond to of 203723

Arizona Mining (AZ-T) steps out to new zone at Taylor deposit - HDS-344 intersects 39 feet grading 7.5% zinc, 9.4% lead and 2.4 opt silver

June 28, '16 - NR

Arizona Mining is pleased to announce the results of two step-out exploration drill holes targeting the expansion of the Taylor Zn-Pb-Ag sulfide deposit located on its 100% owned Hermosa Project in Santa Cruz County, Arizona USA.

Both holes are significant expansions to the maiden resource announced on February 1, 2016 (39.4 M inferred tonnes grading 11% zinc equivalent) in addition to the recently announced HDS-338 step-out hole that intersected 101.5 feet (30.9 m) grading 18.7% Pb+Zn and 6.1 opt Ag and HDS-339 that intersected 108.0 feet (32.9 m) grading 31.3% Pb+Zn and 5.5 opt Ag (see May 5, 2016 press release).

HDS-344 represents a 1060 foot (323 m) step out from the northeastern extent of the previously reported resource area (HDS-336). This drill hole intersected seven zones of mineralization including 107 feet (32.6 m) grading 4.62% zinc, 5.45% lead, 0.04% copper and 2.55 opt Ag, which included an interval of 39 feet (11.9 m) grading 7.48% zinc, 9.41% lead, 0.03% copper, and 2.36 opt silver.

HDS-341 was a 350 foot step out down dip to HDS-338. The hole crossed a major fault and throughout much of the length of the drill hole younger intrusive dike(s) and alteration associated with the dike replaced much of the permissive carbonate section. However, the hole did encounter 33.5 feet (10.2 m) grading 1.98% zinc, 3.12% lead, 0.18% copper and 1.82 opt Ag within the remaining carbonate section.

CEO Jim Gowans commented, "HDS-344 is a major step out hole to the deposit and has intersected a significant section of mineralization in an area we weren't certain would be permissive. The success of this drill hole has really opened things up for additional expansion. Although we have expanded the area tested with these major step outs the deposit remains open in all directions, and to date we have drilled no blank or even weakly mineralized holes."

For a full listing of the drill results for HDS-341and HDS-344 see Table I below.

Table I. Assay summaries for HDS-341 and HDS-344



*DH_ID*		*From (feet)*	*To (feet)*	*Interval (in feet)*	*From (meters)*	*To (meters)*	Interval (meters)	*Ag opt*	*Pb%*	*Zn%*	*Cu%*	*Ore Zone*
HDS-341		3413.5	3447	33.5	1040.4	1050.6	10.2	1.82	3.12	1.98	0.18	CRD

HDS-344		960	995	35	292.6	303.3	10.7	3.60	1.25	1.86	0.16	CRD
HDS-344		1025	1065	40	312.4	324.6	12.2	0.66	0.52	1.39	0.02	CRD
HDS-344		1587.5	1594	6.5	483.8	485.8	2.0	4.17	3.65	4.91	0.22	CRD
HDS-344		1765	1800	35	537.9	548.6	10.7	1.44	1.50	1.80	0.04	CRD
HDS-344		3416.5	3436.5	20	1041.3	1047.4	6.1	16.74	3.09	2.90	0.84	CRD
HDS-344		3541.5	3648.5	107	1079.4	1112.0	32.6	2.55	5.45	4.62	0.40	CRD
HDS-344	Including	3606	3645	39	1099.1	1110.9	11.9	2.36	9.41	7.48	0.03	CRD
HDS-344		3685	3766.5	81.5	1123.1	1148.0	24.8	0.96	1.19	0.97	0.04	CRD

(Drill intersections with both Zinc>4.5% and Lead>4.5% highlighted. Drill intervals are down the hole drill width but are considered to be within 5% of true width)

Qualified Person

The results of the Arizona Mining Inc. drilling results have been reviewed, verified and compiled by Donald R. Taylor, MSc., PG, Chief Operating Officer for Arizona Mining Inc., a qualified person as defined by National Instrument 43-101 (NI 43-101). Mr. Taylor has more than 25 years of mineral exploration and mining experience, and is a Registered Professional Geologist through the SME (registered member #4029597).

Assays and Quality Assurance/Quality Control

To ensure reliable sample results, the Company has a rigorous QA/QC program in place that monitors the chain-of-custody of samples and includes the insertion of blanks, duplicates, and certified reference standards at statistically derived intervals within each batch of samples. Core is photographed and split in half with one-half retained in a secured facility for verification purposes.

Sample preparation (crushing and pulverizing) has been performed at ALS Minerals Laboratories, an ISO/IEC accredited lab located in Tucson, Arizona. ALS Minerals Laboratories prepares a pulp of all samples and sends the pulps to their analytical laboratory in Vancouver, B.C. Canada for analysis. ALS analyzes the pulp sample by ICP following a 4-acid digestion (ME-ICP61 for 33 elements) including Cu (copper), Pb (lead), and Zn (zinc). All samples in which Cu (copper), Pb (lead), or Zn (zinc) are greater than 10,000 ppm are rerun using four acid digestion with an ICP – AES finish (Cu-OG62;Pb-OG62; and Zn-OG62) with the elements reported in percentage (%). Silver values are determined by ICP ((ME-ICP61) with all samples with silver values greater than 100 ppm repeated using four acid digestion with an ICP-AES finish (Ag-OG62) calibrated for higher levels of silver contained. Any values over 1,500 ppm Ag triggers a fire assay with gravimetric finish analysis. Gold values are determined by a 30 gm fire assay with an ICP-AES finish (Au-ICP21).

About Arizona Mining
Arizona Mining Inc. is a Canadian mineral exploration and development company focused on the exploration and development of its 100% owned Hermosa Project located in Santa Cruz County, Arizona. The Taylor Deposit, a lead-zinc-silver carbonate replacement deposit, has a resource of 39.4 million tonnes in the Inferred Mineral Resource category grading 11% zinc equivalent ("ZnEq") utilizing a 6% ZnEq cutoff grade calculated in accordance with NI 43-101 guidelines. The Taylor Deposit remains open to the north, west and south over land controlled by the Company and will be aggressively drilled to test the limits of the resource. The Company recently completed metallurgical test work on drill core from the Taylor Deposit that projects overall recoveries of 92.9% Pb; 85.5% Zn and 91% Ag using industry standard froth flotation processing technology. The Company's other project on the Hermosa property is the Central Deposit, a silver-manganese manto oxide development project that has a prefeasibility study completed in December 2013.

SOURCE Arizona Mining Inc.

Image with caption: "Drill Location Map (CNW Group/Arizona Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20160628_C1051_PHOTO_EN_723927.jpg

Image with caption: "Arizona Mining Inc. (CNW Group/Arizona Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20160628_C1051_PHOTO_EN_723929.jpg

Donald Taylor, COO on
520 485 1300,
e-mail info@arizonamining.com