- Price of zinc rising amid demand for steel-galvanizing metal
- Blue Moon’s California mine was productive during World War II
- Site sits on 525 acres in Sierra Nevada Mountains
Blue Moon Zinc Corp. (TSX.V: MOON) (OTC: BMOOF) believes it can take advantage of a rare opportunity to enter the resource-hungry zinc metal market by reopening a once-productive zinc mine in California’s gold country.
The company considers it likely that the advanced-stage, 100 percent-owned Blue Moon zinc project on 525 acres, in the Foothills Massive Sulphide Belt of the Sierra Nevada Mountains, will yield a significant ore deposit at the depths of the exploration, where small-scale mining took place during World War II. Soil anomalies near the mine foster hope that there are additional deposits to be found along strike of the zone.
The possibility is an attractive one, given the market factors that drove the London zinc exchange to a decade-high price of more than $3,000 per metric ton in October and a nine-and-a-half-year high on the Shanghai Futures Exchange of more than $4,000 per metric ton.
The principal factors causing a price jump is the low level of the mineral stockpile — the lowest in nearly a decade. For decades the low price of zinc led to the shuttering of projects like Blue Moon’s, but demand has spiraled upward during the past decade, led largely by consumers in China.
A large driver for zinc demand is the metal’s use in galvanizing steel and iron (http://nnw.fm/4Zo3H). An analysis by the International Lead and Zinc Study Group found that demand for zinc grew by 1.14 percent during the first five months of 2017, with mine output rising 6.3 percent and refined metal output up 0.4 percent, according to a report in Mining Weekly (http://nnw.fm/dRM9e). Usage of the refined metal in the United States fell in 2016 but then rebounded with a 19 percent climb, according to the report.
The Blue Moon project will be mined underground. The company has a resource of some 3.7 million indicated tons of ore graded at 8.33 percent zinc equivalent, which could yield about 377 million pounds of the metal at that level and more than 4 million inferred tons more with a grade of 7.84 percent zinc equivalence.
The Blue Moon project also boasts silver, gold, and copper as byproducts. Blue Moon has contracted a preliminary economic assessment of the project that should be completed during the first quarter of 2018.
For more information, visit the company’s website at www.BlueMoonMining.com
More from 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.
For more information please visit https://www.NetworkNewsWire.com