Zinc prices — One of the best performers in 2016, up more than 50% from 2015 lows – by Christopher Ecclestone (InvestorIntel.com – September 6, 2016)


The Great Zinc Drought might be said to be broken, but those calling the end of this protracted dry spell going back to 2006 have been proven foolish before. However, this time around the degradation of the zinc mining space through mine closures, lack of a pipeline of new projects (or even old mines to reopen) and virtually zero exploration since 2011 means that the landscape is not only parched it is veritably scorched earth.

Zinc fell from about $0.90 per lb in the late ’80s to $0.40 per lb in 1993, then spent the rest of the decade constricted to a range between $0.40 and $0.55.

After the Tech Crash in 2000, it sunk below $0.40 per lb until 2003 when it began to regain traction. In 2004-5 it broke out above what appeared to be a multi-year $0.50/lb resistance and within two years quadrupled. In late 2006 it broke above $2 per lb. Now it is threatening to challenge the $1.10 per lb “ceiling” which has held it back in recent years. A breakthrough would be a significant event.

Already though the truffle-hounds of the mining markets are off sniffing about for Zinc plays and they find little to their taste. Nevada Zinc Corporation (TSXV: NZN) though is an up and coming story which is starting to appear on the radars and we have published a research note on the exciting developments at the company (including its Yukon gold plays) and here we shall relay the main findings.

Nevada Zinc’s 100% owned Lone Mountain project is located within close proximity to Eureka, Nevada with its 224 claims spread out over 20 square kilometres surrounding the historic Mountain View Zinc Mine.

The concessions that the company holds consist of territory it claimed itself, further territory optioned from Bravada Gold and a quite recent purchase of the old Mountain View Mine and surrounding ground.

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