Endeavour Mining plc press release
Pistol Bay acquires new zinc project amidst smoking hot zinc prices
TSX - Toronto Stock Exchange · Gold · Silver · United Kingdom
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ZURICH, SWITZERLAND / ACCESSWIRE / September 1, 2016 /Today, Stephan Bogner from Rockstone Research published an update on Pistol Bay Mining Inc. (TSX.V: PST) as the company announced earlier today to acquire additional zinc-copper claims, the Dixie 3 Property in the prolific Red Lake Mining District of Ontario.
This marks a perfect fit for the company's existing Dixie 17, 18 and 19 Properties located 8 km away. As Pistol Bay has recently closed a financing, the start of an exploration program is expected shortly, which comes at a perfect time as the zinc price is poised to continue its exceptional surge that started in January 2016 (+62% YTD).
Although 2016 is the fifth consecutive year of the zinc market being a deficit, the price has started to react this year due to sharply dwindling inventories, a shortage of zinc concentrate following closures of depleted mines and cutbacks from Glencore. In last years, 6 major mines reduced its zinc output by 1 million tons (7% of global supply) while demand from China rose by 5%. Accordingly, investment funds have jumped on the bandwagon. Goldman Sachs recently noted that zinc has "by far the most bullish supply-side dynamic of all base metals", raising its forecasts for the next year on tightening supply and robust demand in China. Zinc is the most exposed base metal to China infrastructure. China's infrastructure spending rose 19% in the first 4 months of 2016, the biggest amount since its response to the global financial crisis. Now China, the world's top consumer and producer of zinc, added fuel to the fire by shutting down the power of 26 zinc and lead mines in the Hunan Province due to safety and environmental concerns.
Considering that Pistol Bay currently has a market capitalization of $2 million CAD, the upcoming exploration program offers great potential for significant upside, especially if geophysics and drilling can confirm historic grades and discover new zinc-rich zones.
The full report can be accessed with the following links:
English (PDF):
http://rockstone-research.com/images/PDF/PistolBay2en.pdf
English (web version):
http://rockstone-research.com/index.php/en/research-reports/1594-Pistol-Bay-acquires-new-zinc-project-amidst-smoking-hot-zinc-prices
German (PDF):
http://rockstone-research.com/images/PDF/PistolBay2de.pdf
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_Disclaimer: Please read the full disclaimer within the full research report as a PDF as fundamental risks and conflicts of interest exist._
SOURCE: Rockstone Research