For many weeks I highlighted a commodity that was hitting 5 year highs and is still relatively unknown especially amongst the most important group of investors…US Retail. While gold and silver are still way below 2011 highs, zinc is breaking out into new 5 year highs. The last time it made a breakout like this pre credit crisis it went parabolic to $2. There is the possibility of that happening again. If it does a huge Zinc Deposit in Canada I highlighted to you a few weeks ago could soar as it has billions of pounds of zinc and they are about to publish a PEA any day now which will put numbers on the economics of this project and answer some questions about the metallurgy. It could silence a lot of the naysayers and competitors. The Chairman is a winner with a track record of building major mining companies from pennies. Some of the smartest mining investors such as Lundin and Mcewen financed this company. They just recently started marketing for the first time in the US in early February when it traded record volume but has since pulled back to its 50 DMA providing what could be a secondary buypoint. I expect a lot more attention for this company following the publication of its updated Preliminary Economic Assessment. See my interview with the Chairman of $DBL.
In addition, I have made my second zinc investment in a newly restructured company focused in one of the worlds best zinc domains Ireland with only around 33 million shares outstanding. Its led by a great bunch of explorers I have known for years who specialize in zinc exploration and mining. The CEO worked for one of the largest zinc producers for years in exploration. He knows what the majors look for. Management has the ability to raise a lot of money for exploration as some of the big funds have invested in some of there other major discoveries in Europe. Ireland is the largest producer of zinc in Europe and tenth in the world with over 200k tonnes of zinc mined in 2015. Management believes Ireland is one of the best places to explore for a zinc discovery using modern exploration techniques. There have been 222 holes drilled which indicate a large zinc mineralized zone with grades up to 10% zinc and 80 g/t silver. It remains open in all directions.
Hannan Metals released news that they are beginning exploration on what could be the most exciting zinc exploration target in Ireland. This target has a 1.5 km strike length with better drill intersections including DH46: 20.5m at 7.5% Zn, 9.9% Pb, 74.6g/t Ag; and DH06: 21.3m at 11.0% Zn, 4.8% Pb, 94.4g/t Ag. Its 100% owned and drilling will start in April on one of the best zinc discoveries made over the past decade. I believe this management team has the ability to expand this deposit and make additional discoveries.
In conclusion, zinc may be one of the best commodities to own right now as it is breaking out into new highs. Supply remains tight. Look for zinc developers with management who knows zinc with great track records.
Disclosure: I already own shares in these junior zinc miners and they are website sponsors. This should be considered an advertorial and I should be considered biased as I could benefit from a higher price by selling and have been paid for a website sponsorship. I may buy or sell at anytime with no notice. This contains forward looking statements which may not come to fruition. Buyer beware small cap mining stocks are very risky and you can lose all of your money!