Shine Minerals Corp (CVE: SMR) has made significant progress on the development of its flagship Watt Lake Project, located northeast of La Ronge Saskatchewan. The mineral exploration and development company has so far hit mineralization in seven holes as part of a maiden drill program at the Zinc project.
Watt lake Project Exploration Progress
Results from the seven holes as part of the drill program has so far confirmed mineralization with mineralization intervals of up to 43m wide. The company drilled the seven holes from three drill pads targeting the southern part of the Borys Lake trend.
Assays from the sampled drilled holes returned up to 21.3% of Zinc and 57.6g/t of Ag. All the seven drilled holes intersected mineralization with mineralized intervals of 43m and 31.8m
“ The initial hole was collared to test beneath Trench 4, where recent assays from outcrop sampling returned up to 21.3% Zn and up to 56.7 g/t Ag, and also where historic drill holes W-1 (8.44m @ 4.69% Zn) and W-3 (6.1m @ 7.3% Zn) are assumed to be nearby. This is an exciting time. Drill core samples have been sent to the lab, and we will share the results as soon as we receive them,” explained COO Ross McElroy.
Watts Lake project is Shine Minerals flagship project covering 13,248 hectares in the established La Ronge Doman. Covering multiple conductive corridors, the project hosts the historic Bory’s Lake lead-zinc deposit. The project is also home to many other mineralized occurrences.
Claude Resources was the most recent company to explore and develop the property that shone to light in the early ’50s. Shine Minerals on its part has started compiling and verifying the considerable amount of historical work at the property.
The exploration and development company has already located drill collars at the Watt Lake property having also surveyed and sampled seven historic surface trenches. It is currently compiling drill holes and surface data into a modern geological database.
The compilation should make it easy to carry out 3-dimension spatial visualization that will go a long way in making it easy to assist in modeling the historic deposit. 3-Dimension visualization should make it easy for geologists to understand the geometry, control on mineralization of the Watts Project, as well as, help identify potential growth areas.
The Lake Watts project has the potential to be a key driver of Shine Minerals bottom line given the positive assay zinc results from the property. Zinc being the fourth most widely consumed metal in the world will always command strong demand something that the mining company can benefit from on commencing mining operations.
Demand for zinc is on the rise. Inventory levels have plummeted to 10-year lows of 100,000 tons per year from highs of 900,000 tons a year as of 2014 presenting a unique market opportunity. Supported by an award-winning management team, Shine Minerals remains well positioned to take advantage of the market opportunity. Its long-term goal is to generate significant shareholder value by focusing on the large and prospective Watts Lake Project.
Zinc Supply has been on the decline for the past four years, despite being one of the most widely consumed metals in the world. Escalating tensions between the U.S and China is the latest tailwind that threatens to influence the price of the industrial metal as demand continues to outweigh supply.
Shine Minerals Watts Lake Zinc Project
Zinc inventories are currently languishing at 10-year lows, after decreasing 900% from 900,000 tons a year to 100,000 tons a year. Prices are yet to reflect the slide. Shine Minerals Corp (CVE: SMR) is seeking to take advantage of the enormous market opportunity as demand continues to outpace supply in the market.
The company is currently engaged in aggressive exploration and mining operations at the large and highly prospective Watts Lake project. The company acquired a 100% interest in the Watts Lake project, currently covering 13,248 hectares, north-east of the town of La Ronge Saskatchewan.
The exploration and mining company has already hit mineralization in seven holes as part of a maiden drill program at the Watts Lake Zinc Project. According to the company’s COO and chief geologist, Ross McElroy initial results from drilling operations at the Watts Lake are very encouraging.
The results support historic drill holes in the area that indicated Zinc mineralization at depth 50 million below the surface.
“Our initial sampling program on the property, conducted in the fall of 2018, was very successful at confirming and exceeding historic high-grade trench results of zinc, lead, and silver mineralization. Our drill program will focus on specific areas of the Main Zone where surface sampling from Trench 4 returned particularly high zinc assays as well as strong silver and lead assays,” said Mr. McElroy.
The positive drilling results come at a time when Zinc prices are showing signs of edging higher after coming under pressure in recent months. Prices are currently languishing near six months lows as a trade dispute between the U.S and China continues to drag on.
With the trade war, showing no signs of slowing down, China has warned companies operating in the U.S of potential harassment. The biggest point of concern now is that a brutal trade war between the two economic powerhouses could dampen economic growth.
Slow economic growth could have a catastrophic impact on industrial metals as demand could slow, a move that could result in a further slide in prices. Zinc is one of the biggest industrial metals whose demand could take a hit consequently affect prices, should economic growth slowdown come into play.
Data released by Shanghai Future Exchange indicate that Zinc stocks inventories rose 5.4% to 59,351 tons as of the end of May. However, inventory levels are still down by 54% from 2019 highs of 124,038 tons registered in March. In recent weeks, Zinc prices have shown signs of edging high amidst growing concerns over dwindling inventories.