On May 23, 2018, we published revised versions of our Privacy Policy and User Agreements. Please read these updated terms and take some time to understand them. Your use of our services is subject to these revised terms.
Yes, I Agree.

Producers Aim to Address Growing Global Zinc Deficit amid Price Surge, Rising Demand

NetworkNewsWire Editorial Coverage: Zinc is used for various applications in many industries, including construction, oil & gas, power generation, automotive and shipbuilding. It is also used to produce zinc oxide, a constituent of many diverse products including nuclear reactors, solar cells, sunscreen, multivitamins and fertilizer. Fully 50 percent of the world’s zinc is used in galvanizing steel to prevent corrosion, which makes it highly prized by countries engaged in infrastructure development. Amid heightened demand, Mining.com (http://nnw.fm/9jaWx) reports that zinc prices have surged by 78 percent since 2016, have increased 286 percent in the last two years, and currently stand at over $3,200. This remarkable surge has created a deficit in the zinc market, with producers like Canadian-based Zinc One Resources, Inc. (OTC: ZZZOF) (Z.CA) (Zinc One Profile) poised to capitalize on the increased demand for the base metal. Other established zinc producers preparing to take up the slack include Hudbay Minerals, Inc. (NYSE: HBM) (TSX: HBM), Ivanhoe Mines Ltd. (OTCQX: IVPAF) (TSX: IVN), Lundin Mining Corp. (OTC: LUNMF) (TSX: LUN) and Trevali Mining Corp. (OTCQX: TREVF) (TSX: TV).

China is foremost in the drive for improved infrastructure, and zinc demand is likely to continue in line with the demand for structural steel for construction projects. Furthermore, the Trump Administration has announced its intention to spend $1 trillion on upgrading infrastructure in America. As such, industry projections are that China and the United States will contribute significantly to an annual growth in zinc demand of 2.4 percent over the next few years. This growth will follow a decade-long lag in demand, which triggered a corresponding drop in the zinc price. As a result, many companies cut back on production, resulting in the current market deficit.

Investing News reports a prediction from analysts at Bloomberg Markets that supply will continue to trail demand over the coming years (http://nnw.fm/7F1wa), enabling companies like  Vancouver-based Zinc One Resources (OTC: ZZZOF) (Z.CA) to capture their share of market opportunity. With a strong focus on the acquisition, exploration and development of advanced zinc assets, Zinc One’s primary projects are located in Peru, the country with the third-highest zinc reserves in the world. Peru has a mature and stable mining industry that provides half of the country’s GDP.

In June 2017, Zinc One acquired Forrester Metals, Inc., and through this the Bongara Mine zinc-oxide project and Charlotte-Bongara Projects. On par with broader industry trends, the Bongara Mine was in full production from 2007 through 2008, but was shut down when the zinc price collapsed in the wake of the global financial crisis. Historical resource data shows a measured indicated and inferred resource of over 1.2 million tons of high grade (20%+), near-surface zinc. With a history of mining on the concessions, Zinc One enjoys positive and productive community relations in the area, which is of significant value for any mining company.

The Bongara Mine’s high-grade zinc mineralization is a rare find, and Zinc One intends to leverage the zinc-rich soil to bring Bongara back into production.

Zinc One in August received approval from Peru’s Ministry of Energy and Mines to suspend the mine closure at the Bongara Mine location, which allows the company to utilize the current Environmental Impact Assessment attached to the project for current and future permitting (http://nnw.fm/mZa3r). This approval allows the company to take another vital step toward its plans to reopen production at the Bongara Mine.  Notably, at Bongara, open pit mining can be used to extract the zinc, which can reduce the costs associated with underground mining.

On November 1 the company announced another advancement, publishing positive results from an ongoing surface-sampling program at the Bongarita and Mina Chica areas. The company reported highest grades that include a surface channel sample (#38) with 47.73% zinc over 8.1 meters from a dolomite, a surface channel sample (#72) that yielded 25.65% zinc over 19.7 meters from a dolomite breccia, and 32.50% zinc over a 3.8-metre depth from a dolomite breccia in an exploration pit (#425).

“As expected, the high-grade zinc grades from this current sampling program are very encouraging and augments our opinion that the Bongarita and Mina Chica areas hold significant potential. In particular, these areas have not been drilled and that the base (footwall), outlining the depth extent of mineralization, is not well defined.  The upcoming drill program should help to better define the footwall of mineralization as well as better determine the magnitude of mineralization left behind by past mining in the Mina Grande area.  Overall, we anticipate that the drill program will better delineate and expand the known mineralization at the Bongara Zinc Mine Project,” Zinc One president and CEO Jim Walchuck stated in the press release announcing the results (http://nnw.fm/lY23V).

Zinc One’s neighboring Charlotte-Bongara Zinc-Oxide Project also shows potential, with multiple at-surface, high-grade drill intercepts providing numerous drill targets.

The Bongara Mine Project mineralization lies on surface with simple metallurgy and greater than 90 percent recovery, as demonstrated in past production. The Charlotte-Bongara Project will require exploration to determine the extent of the mineralization; near-surface drill intercepts conducted over a stretch of 8 kilometers (4.9 miles) at this location by Rio Cristal Zinc in 2008 showed extremely high-grades of 29.5 percent zinc at 15.5 meters, 26.1 percent at 12.5 meters, and 29.7 percent zinc at 11.5 meters.

As it stands, Zinc One is one of the few new zinc focused companies with near-term production potential, allowing the company to occupy a position alongside its large-cap, older peers like Hudbay Minerals (NYSE: HBM) (TSX: HBM). With interests principally in mining operations and exploration, Hudbay focuses on reserves of base and precious metals including copper, zinc, gold and silver. The company operates three mines in the Flin Flon Greenstone Belt in Manitoba, another in southern Peru and is busy with a development project in Arizona. The company has just released its third quarter results for 2017, which show operating cash flow of USD$154 million, an increase of 24 percent over the previous quarter. Copper production for the quarter was over 40,000 tons, with zinc production of almost 37,000 tons.

Ivanhoe Mines (OTCQX: IVPAF) (TSX: IVN) is a mining company that has been operating in sub-Saharan Africa for more than 24 years. Its Kipushi mine, located in the Democratic Republic of Congo (DRC), produces silver, germanium, copper and zinc. The company also has the Kamoa-Kakula copper mine located in Congo’s copper belt. A new exploration project in Kakula West returned Ivanhoe operates the Platreef mine in South Africa that produces both base and precious metals, including copper, nickel, gold and platinum group metals.

Another larger and older peer, Trevali Mining (OTCQX: TREVF) (TSX: TV) has mining interests in the Americas and Africa. Its presence in New Brunswick, Canada extends to the 100 percent owned Caribou Mine in the north of the province, while it also owns the Halfmile and Stratmat concessions of base metal deposits that are under review for potential development. The company also has controlling interests in three other mines; the wholly-owned Santander mine in Peru, a 90 percent share in the Perkoa mine in Burkina Faso and 80 percent ownership of the Rosh Pinah mine in Namibia.

Also enjoying uptrends in zinc is Lundin Mining (OTC: LUNMF) (TSX: LUN), a diversified Canadian-based metals mining company with operations in the United States, Chile, Portugal and Sweden. In addition to its production of zinc, copper and nickel, the company has a 24 percent stake in a cobalt refinery, Freeport Cobalt Coy, located in Kokkola, Finland. For 2019, Lundin provides outlook for zinc production between 152,000-162,000, its same forecast for 2017 (http://nnw.fm/ioaR1).

Zinc is an invaluable base metal and a strategic priority for many industries, and all indications are that the price of zinc will continue to increase over the next few years while producers scale-up their operations in an effort to meet market demands. The sudden surge in the demand for zinc has caught some producers unprepared, but with three c-level managers totaling 100 years of combined mining experience putting projects into production, Zinc One has the resources and expertise to meet demand.

For more information on Zinc One Resources, visit Zinc One Resources (OTC: ZZZOF) (Z.CA)

About NetworkNewsWire

NetworkNewsWire (NNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) NetworkNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, NNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. NNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, NNW brings its clients unparalleled visibility, recognition and brand awareness. NNW is where news, content and information converge.

NetworkNewsWire (NNW)
New York, New York
212.418.1217 Office

Please see full terms of use and disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or re-published: http://NNW.fm/Disclaimer

DISCLAIMER: NetworkNewsWire (NNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. The commentary, views and opinions expressed in this release by NNW are solely those of NNW. Readers of this Article and content agree that they cannot and will not seek to hold liable NNW for any investment decisions by their readers or subscribers. NNW is a news dissemination and financial marketing solutions provider and are NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, NNW, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.


This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements.  The forward-looking statements in this release are made as of the date hereof and NNW undertakes no obligation to update such statements.


Select A Month

NetworkNewsWire Currently Accepts



Bitcoin Cash

Bitcoin Cash

Doge Coin






USD Coin

USD Coin

Contact us: 212.418.1217