Zinc deficit looms, prices up, but output restarts unlikely
Zinc deficit looms, prices up, but output restarts unlikely
Pramita Desai – reuters.com
http://www.reuters.com/article/us-metals-zinc-glencore-idUSKCN10R1VO
Zinc’s sharp rally and looming market deficit has fed speculation that major producers such as Glencore may reverse output cuts, but analysts caution that is unlikely to happen soon.
Only when stocks of concentrate and metal sink to levels where higher prices can be sustained will large producers look at restarting capacity, they say.
Benchmark zinc on the London Metal Exchange has climbed nearly 60 percent from January’s multi-year lows to around $2,300 a tonne, its highest since May 2015.
Many zinc mines have been shut or mothballed over the past couple of years, but prices did not really take off until this year when deficit expectations intensified with the closure of the Century mine in Australia and Lisheen in Ireland.
Glencore’s decision last year to slash 500,000 tonnes of annual zinc production set the ball rolling. Its zinc output in the first half of this year fell 31 percent to 506,500 tonnes from the same period last year.
“We don’t think Glencore will reactivate in response to prices,” said Graham Deller, analyst at CRU. “They will wait until the concentrate market runs out of spare material.”
John Meyer, analyst at SP Angel agrees: “Glencore will allow the market to keep rising until stocks fall and it can restart zinc production at sustainably higher prices”.
Glencore declined to comment.
Analysts estimate about 750,000 tonnes of annual zinc output outside China has been mothballed over the last two years. Of the 600,000 which could be restarted, about 400,000 belongs to Glencore, they say.
Of the remaining 200,000, analysts say the largest chunk is owned by Nyrstar, which has its mining business up for sale, and while higher zinc prices might make that process easier, the chances of restarts are low.
Nyrstar declined to comment on the possibility of restarts.
Chinese output and idled capacity is difficult to estimate, analysts say.
“Higher-cost Chinese zinc mines often restarted capacity when prices moved towards $2,300/t in the past,” Bank of America Merrill Lynch analyst Michael Widmer said in a note, adding that “zinc’s rally was driven by a confluence of factors.”
Factors include steady global demand, estimated at around 14.5 million tonnes this year, for the metal used to galvanize steel and forecasts for market deficits, which a recent Reuters poll estimated at 221,000 tonnes this year.
Falling stocks in LME approved warehouses, which at 457,900 tonnes are down 25 percent since September, are another reason.
Key to market psychology has been the concentrate market, which has tightened to the extent that treatment charges, fees paid by miners to smelters to process raw material into metal have tumbled towards $100 a tonne from above $200 in April 2015.
“(Lower treatment charges provide) imminent headwinds for those smelters, many of which are Chinese, that purchase ore on the spot market and not through contracts,” Widmer said.
Shortages of ore have meant top consumer China has had to source more metal overseas. Its imports rose more than 47.8 percent to 291,892 tonnes in the six months to June from a year ago.
View Original: http://www.reuters.com/article/us-metals-zinc-glencore-idUSKCN10R1VO
Puma (PUM.V) Samples 29.5 Zn at Ann’s Creek Property in New Brunswick
Puma (PUM.V) Samples 29.5{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Zn at Ann’s Creek Property in New Brunswick
– Momentum Public Relations –
Press Release: August 11, 2016
Puma Exploration (TSX VENTURE:PUM)(SSE:PUMA) reports results of the summer exploration sampling program at Ann’s Creek property in New Brunswick, Canada. Puma’s geologists have compiled and selected the highest potential within the less explored mineralized zones along the Rocky-Brook trend showing the highest zinc, silver and gold grades in order to evaluate and expand on their size.
The mineralized zones explored during the program, namely, PineTree, Half Mile, Bradly Gold and Great Northern, are spread over a distance of six kilometres and have received very little advanced exploration work to date. About 100 samples have been collected during the program showing very high grade precious and base metals up-to 29{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Zn, 14{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Pb, 491 g/t Ag and 8.8 g/t Au.
Table 1 : Selected grab samples results from the Ann’s Creek Property
Samples | UTM_X | UTM_Y | Zones | Au (g/t) |
Ag (g/t) |
Pb ({92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}) |
Zn ({92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}) |
P193546 | 283693 | 5284570 | Pine Tree | 3.07 | 26 | 1.0 | 0.3 |
P193553 | 283782 | 5284569 | Pine Tree | 3.43 | 89 | 3.6 | 0.2 |
P193554 | 283779 | 5284585 | Pine Tree | 0.98 | 107 | 5.3 | 0.6 |
P193577 | 283054 | 5284489 | Pine Tree | 0.39 | 3 | 0.0 | 1.3 |
P193578 | 283052 | 5284490 | Pine Tree | 2.02 | 9 | 0.1 | 1.7 |
P193624 | 283788 | 5284588 | Pine Tree | 0.63 | 153 | 7.2 | 6.0 |
P193625 | 283830 | 5284588 | Pine Tree | 0.10 | 96 | 4.2 | 1.9 |
P193629 | 283848 | 5284593 | Pine Tree | 0.25 | 149 | 5.3 | 4.7 |
P193633 | 283670 | 5284555 | Pine Tree | 0.85 | 132 | 3.6 | 29.5 |
P193634 | 283674 | 5284547 | Pine Tree | 4.41 | 70 | 2.9 | 1.9 |
P193642 | 283410 | 5284516 | Half Mile | 0.97 | 105 | 4.8 | 7.6 |
P193644 | 283314 | 5284474 | Half Mile | 0.53 | 41 | 1.3 | 2.2 |
P193645 | 283314 | 5284476 | Half Mile | 3.75 | 25 | 1.4 | 7.6 |
P193646 | 283283 | 5284472 | Half Mile | 3.05 | 6 | 0.1 | 0.2 |
P193647 | 283238 | 5284483 | Half Mile | 0.95 | 175 | 11.1 | 5.3 |
P193585 | 277594 | 5282522 | Great Northern | 0.50 | 491 | 14.2 | 1.0 |
P193557 | 279326 | 5283839 | Bradly Gold | 1.78 | 1 | 0.0 | 0.0 |
P193558 | 279326 | 5283840 | Bradly Gold | 6.16 | 1 | 0.0 | 0.0 |
P193559 | 279311 | 5283836 | Bradly Gold | 1.49 | 1 | 0.0 | 0.2 |
P193560 | 279311 | 5283829 | Bradly Gold | 0.66 | 177 | 7.1 | 0.1 |
P193561 | 279309 | 5283831 | Bradly Gold | 1.72 | 33 | 2.2 | 0.4 |
P193595 | 279178 | 5283768 | Bradly Gold | 0.08 | 2 | 0.0 | 1.7 |
P193606 | 279347 | 5283873 | Bradly Gold | 8.81 | 208 | 3.6 | 4.1 |
P193607 | 279347 | 5283872 | Bradly Gold | 6.86 | 113 | 0.9 | 6.4 |
P193608 | 279367 | 5283861 | Bradly Gold | 0.54 | 147 | 1.1 | 2.3 |
P193614 | 281876 | 5284152 | Bradly Gold | 0.26 | 9 | 0.3 | 1.7 |
P193617 | 282643 | 5284368 | Bradly Gold | 0.69 | 8 | 0.1 | 1.3 |
The Ann’s Creek Property consists of a 15 km long by 1.5 km wide Rocky Brook mineralized corridor adjacent and spatially related with the large 4 km diameter Nicholas-Denys porphyry intrusion. The Rocky Brook Corridor is a major mineralized structure which contains the main silver-gold-lead-zinc lenses centered on the Rocky-Brook-Millstream fault which is interpreted to have played a major role in the enrichment of the mineralized lenses. Surface trenching and stripping programs will be conducted in the vicinity of these zones in order to increase their size and extent.
Three-dimensional modeling focusing on the high-grade portions of the Haché and Shaft lenses containing at least 300 grams per tonne (g/t) Ag (10 ounces per ton) has been completed. Puma is currently evaluating different scenario’s to monetize the high grade Ag-Zn-Au- Pb at Hache and Shaft lenses.
About Puma Exploration
Puma Exploration is a Canadian mineral exploration company with advanced precious and base metals projects in Canada. The Company’s major assets are the Turgeon Zinc-Copper Project and the Nicholas-Denys Project in New Brunswick and their equity interest in BWR as related to the Little Stull Lake Gold Project in Manitoba. Puma is focusing its exploration efforts in New Brunswick, Canada.
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Learn more by clicking here: www.pumaexploration.com
To view the map associated with this press release, please visit the following link: http://media3.marketwire.com/docs/AnnsCreekDeposit.pdf
- Published in Mining, News Home, Puma Exploration
Supply Shortage is Driving Zinc Prices
Supply Shortage: Zinc Prices on the Rise – Mining Opportunities Created
– Momentum Public Relations –
The recent events surrounding the Brexit have been challenging for some base metals on the London Metal exchange. The three-month copper contract for example was down 3.2{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}.
On the other hand, all base metals have not been affected the same way. Zinc is proving to be an outlier among other base metals. Since the beginning of the year, the price for this base metal gained more than 30{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}. The metal mainly used for galvanizing steel and iron has steadily increased its value since early this year and its price even reached its highest level since July 15 2015.
Unlike copper and aluminum, zinc doesn’t suffer from an oversupply. According to the International Lead and Zinc Study Group, global demand for zinc was around 14 million tonnes in April, while total world stocks were around 1.5 million tonnes. It is important to note that these prices have been driven by investors buying in lieu of any change in the fundamentals. According to Robin Bhar, Head of Metals Research at Societe Generale,
“We can expect some further gradual gains admittedly some of the gains have come too quickly because of being based on some buying speculative activity jumping on the bandwagon. So we should expect maybe prices to maybe level off. I think in the fourth quarter when we should see physical demand picking up after the slow summer period, we could see some further gains particularly in zinc and nickel because of an ongoing supply constraints. We are seeing some closures of zinc mines and in nickel we have the threat of mine closures in the Philippines to add to the already existing export ban by Indonesia. So, we would expect further modular gain certainly in the last quarter of this year.”
Canada’s zinc output has been on the decline for the last few years. This decline can be explained by the closure of the Brunswick #12 mine in 2013. This mine was the largest deposit in the Bathurst area and was one of the largest underground zinc mines in the world up until its resources were depleted. The success of Brunswick #12 pushed several mining companies to explore the region in order to take advantage of high level of resources available. One extremely interesting company in the region is Puma exploration Inc. (TSX.V). The company is exploring and developing multiple properties (in red) in New Brunswick, only a couple kilometers north of Brunswick #12 Mine. With demand on the rise and Trevali starting commercial production at its Caribou mine, Puma Exploration is a great opportunity for investors who want to take advantage of an improving zinc market.
For more information on Puma Exploration (PUM:tsxv) visit their website at www.explorationpuma.com/
You can also read the following update released by Puma on July 19th, 2016.
- Published in Blog, Mining, Puma Exploration
Puma Exploration Reports on New Brunswick Operations
Puma Exploration Reports on New Brunswick Operations
– Momentum Public Relations –
Press Release: July 19, 2016
Puma Exploration (TSX VENTURE:PUM)(SSE:PUMA) (“Puma”) is pleased to report progress on its New Brunswick operations. Puma will maintain its focus in the prolific Bathurst Mining Camp of New Brunswick, while it is currently in the process to sell the Little Stull Lake Gold project in Manitoba, the only project outside New Brunswick.
The Bathurst Mining Camp, famous for its Giant Brunswick 12# Mine, host significant resources that are near surface and within close proximity to all infrastructure’s needed for mine development within the established Canadian mining jurisdiction. Puma’s main active Projects are the Turgeon VMS (Cu-Zn), the Red Brook Skarn (Zn-Cu-Au), the Ann’s Creek Polymetallic Deposits (Ag-Au-Zn-Pb) and the Beresford Copper Porphyry (Mo-Cu). In fact, Puma’s projects in New Brunswick offer a wide range of commodities to investors which are mainly oriented toward base metals (Zinc – Copper) but also give significant exposure to precious metals (Gold – Silver) and to strategic metals (Molybdenum).
With the recent acquisition of the Red Brook, high grade zinc property, Puma is strengthening his high quality base metal projects in its portfolio. Both, Turgeon (Zn-Cu) and Red Brook (Zn) properties will get most of the field exploration during the summer and fall seasons.
Turgeon VMS (Zn-Cu)
Puma’s initiated a drilling program (2,000 meters) is designed to test the first priority targets defined from the recent ground geophysical survey (IP) carried out on the Turgeon VMS (Cu-Zn) project. The survey revealed five (5) first priority untested target anomalies along the favourable horizon and also on new zones never tested. One of those represents a potential major VMS anomaly of a size of 350 meters by 350 meters, open at depth and along strike, located on the extension of the main Dragon hydrothermal alteration zone. The program is still underway and the results will be released when they will come available.
Red Brook Skarn (Zn-Cu-Au)
Red Brook was acquired from a local prospector’s following his recent discovery of high grade Zinc Massive Sulphide outcrop grading up to 13{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Zn, 0.23{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Cu and 2.5g/t Ag. The initial excavation, 40 meters by 15 meters area, also contains a Gold and Copper zone grading up-to 1.3 g/t Au and 0.53{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Cu (see News 19/01/2016). The mineralization is open in all directions. Currently, Puma’s crew is prospecting and exploring the area in preparation for major stripping program over the main Zinc showing.
Ann’s Creek Polymetallic Lenses (Ag-Au-Zn-Pb)
The mineralized lenses, namely Haché, Shaft, Henry, Henry East, Half Mile and Pine Tree of the Ann’s Creek Property are spread over a distance of 6 kilometers and have received very little advanced exploration work with the exception of the Haché Lens. 3D modelling focusing on the high grade portions of the Haché lens containing at least 300 g/t Ag (10 oz/t) is done and Puma is currently evaluating different scenario’s to develop and benefit from this outcropping high grade Ag-Au-Zn-Pb Haché lens. Also, geologists have prospected and mapped over the other existing lenses and in new areas to define other high grade base and precious metals potential. Results from this work will be released shortly.
Beresford Copper Porphyry (Cu-Mo)
The Beresford Copper Project consists mainly of the large 4 km diameter Nicholas-Denys porphyry intrusion. In 2014, continuous molybdenum, copper and silver mineralization and alteration were intersected over 486.4 meters representing the first discovery of a significant Mo-Cu Porphyry system in New Brunswick. Ten (10) first priority IP targets remain to be drilled. Holes FND14-01 and FND14-02 are located on the northwestern boundary of the 4km diameter ND granodiorite intrusion at the terminus of a NW-SE trending 1km wide by 5 km long fairway defined by drillholes, mineralized trenches and prominent Induced Polarization (“IP”) and magnetic anomalies. Puma is currently seeking a strategic partner to explore and develop the Nicholas-Denys Porphyry system.
Puma also announces the closing of private placement offering with qualified investors, employees, executive officers, directors and consultant in the amount of $545,980. With this placement, Puma Exploration issued 9,099,665 common shares at the price of $0.06 per share and 9,099,665 warrants. Each full warrant gives its holder the right to purchase one common share at a price of $0.10 per share until July 19th, 2018. In connection with this Private Placement, the Company has paid cash finder’s fees in an amount of only $2,558 and issued only 42,640 finder’s warrants will entitle holder to acquire one additional common share of Puma at a price of $0.06 for 24 months.
All securities issued to purchasers and finders under the Offering are subject to a four-month hold period from the date of issuance of the securities, pursuant to applicable securities legislation and the policies of the TSX Venture Exchange. These placements have received the conditional approval of the TSX Venture Exchange. The proceeds of the Offerings will be used for the exploration and development of Puma’s properties in New Brunswick and for general purposes of the company. Further to the placement, Puma will hold 131,965,598 shares issued and outstanding common shares.
About Puma Exploration
Puma Exploration is a Canadian mineral exploration company with advanced precious and base metals projects in Canada. The Company’s major assets are the Turgeon Zinc-Copper Project and the Nicholas-Denys Project in New Brunswick and their equity interest in BWR as related to the Little Stull Lake Gold Project in Manitoba. Puma is focusing its exploration efforts in New Brunswick, Canada.
Learn more by clicking here: www.pumaexploration.com
- Published in Mining, News Home, Puma Exploration
Puma Signs LOI to Develop Little Stull Lake Gold Project in Manitoba
Puma Signs LOI to Develop Little Stull Lake Gold Project in Manitoba
– Momentum Public Relations –
Press Release: July 12, 2016
Puma Exploration (TSX VENTURE:PUM)(SSE:PUMA) (“Puma”) has signed a LOI (letter of intent) with Black Widow Resources Inc. (TSX VENTURE:BWR) (“BWR”) to sell 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of its interest in the Little Stull Lake Gold project in northern Manitoba. The gold project is composed of the adjoining Little Stull Lake claims (20 claims totaling 2,900ha) and the Kistigan (14,715 ha) and Edmund Lake (20,310 ha) Mineral Exploration Licenses (MEL).
Following its corporate development plan, Puma is concentrating its efforts on the Famous Bathurst Mining Camp of New Brunswick, where a drilling program is underway at the Turgeon Zinc-Copper Project. Puma will continue to benefit from the exploration and development of the Little Stull Lake Gold project by having a significant (approximate 20{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}) equity interest in BWR.
The main elements of the LOI with BWR include a cash payment of $150,000, from which the first $50,000 was a deposit due upon signing the LOI as well as two other milestone payments of $50,000 each, payable when Edmund Lake and Kistigan Mineral Exploration Licenses are transferred to BWR. Also, Puma will receive up to 10,000,000 BWR shares that on a pro forma basis may represent a significant (approximately 20{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}) equity in BWR. The first 5,000,000 shares will be received at the signature of the final definitive agreement. The remaining 5,000,000 shares to be received upon certain exploration and development milestones being met by BWR over the next years. In addition, Puma will have the first right of refusal to maintain its pro rata interest in BWR by investing in future financings of BWR. If commercial production is attained at the Little Stull Lake Project, Puma retains a non-buyable 1{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the NSR. Puma will also nominate one director to the BWR board of Directors.
The most recent corporate activity in the Project area is the Yamana Gold (TSX:YRI) takeover of Mega Precious Metals (TSX VENTURE:MGP). Yamana now holds the Monument Bay Gold Deposit (see MGP news release 2015-06-22) located 15km southwest of the Little Stull Lake Gold Deposit
“Now, with what we think is the beginning of a new bull market for significant Gold Projects, we are very pleased to sign the LOI with Black Widow Resources Inc. From the different opportunities and propositions evaluated over the last few months, Mr. Novak and his management team at Black Widow were preferred because of their proven discovery track record and their demonstrable ability to develop effective and respectful working relationships with First Nation Communities.” notes Marcel Robillard, President of Puma Exploration.
The Little Stull Lake gold zones lie in a similar geological environment to that of the nearby Monument Bay deposit being developed by Yamana Gold. Monument Bay is reported to contain 3.1 million ounces of gold (MGP news release 2014-11-21). The historical drilling carried out on Little Stull Lake property resulted in the discovery of high-grade gold mineralization in an Archean greenstone belt. The gold mineralization is mainly confined to quartz veins in brecciated basalt 25 to 50 metres thick. This unit has so far been traced on surface (diamond drilling and surface trenches) at Little Stull Lake for more than 5 km and coincides with a major regional fault striking more than 60 km in length that is currently protected by the Mineral Exploration Licenses.
Puma completed ten (10) drill holes totalling 1,500 metres in the Little Stull Lake gold property’s 11W Zone in 2007. This zone carries the highest gold grades intersected in drilling of the basalt during previous work, with 330 g/t Au, 202 g/t Au, and 125 g/t Au over one metre of core, which are included in longer intercepts of 7.4 g/t Au over 47.0m and 4.5 g/t Au over 45.2m. All of Puma’s holes intersected the mineralized basalt, which contains an average of three core intersections one metre in length with gold values ranging from 1 to 46 g/t Au. Moreover, the drilling intersected some high-grade layers one metre long containing 46.0 g/t Au, 15.6 g/t Au, 8.4 g/t Au, and 7.2 g/t Au (PUM news release 2008-09-01).
About Puma Exploration
Puma Exploration is a Canadian mineral exploration company with advanced precious and base metals projects in Canada. The Company’s major assets are the Turgeon Zinc-Copper Project and the Nicholas-Denys Project in New Brunswick and their equity interest in BWR as related to the Little Stull Lake Gold Project in Manitoba. Puma is focusing its exploration efforts in New Brunswick, Canada.
Learn more by clicking here: www.pumaexploration.com
- Published in Mining, News Home, Puma Exploration