As the global demand for zinc continues to grow, inventories are declining and further compounded by recent mine closures that include Century Mine in Australia.
What has brought about the current situation and put zinc stocks on the radar for mining investors worldwide? Over the last decade, low zinc prices coupled with large inventories of zinc have seen older mines depleted quickly, with few new significant mining projects to fill the void. There has been a supply deficit for zinc since 2012, one which will only continue to grow until new mining projects are developed.
When looking for stocks with which to diversify your portfolio, the current market situation is a good indicator that the time is right for investing in zinc mining stocks. With a proven team and a portfolio of zinc deposits that are advanced staged and located in Canadian mining jurisdictions, the Callinex Mines zinc stock is one to watch.
Callinex Mines is focused on discovering and developing the next zinc mining operations that will help feed global demand, going forward. The company currently possesses zinc-rich VMS deposits in the Buchans District (Newfoundland), the Bathurst District (New Brunswick), and the Flin Flon District (Manitoba). With a pipeline of projects in various stages of development, Callinex is setting the pace for other explorers and zinc mining companies in the region.
The company is currently exploring in an area where more than half of the deposits found have been advanced to production. An established mining district that’s already seen 86 consecutive years of mining, many investors see exploration in Flin Flon as solid backing for the Callinex zinc stock. The infrastructure needed to develop new discoveries is already in place, it’s taken less than six years, on average, from the discovery to the development of mines in the area, and Callinex assets are in close proximity to Hudbay’s soon-to-close Flin Flon mining operations. This is one of the best known zinc mines in Canada, where a +20 Mt 777 deposit has yielded almost $2 billion in net profits since its opening.
Flin Flon Project
Pine Bay Project
Big Island Project
In 2016, Callinex acquired 3 properties in the Bathurst Mining District in New Brunswick, an area commonly known as one of the world’s largest massive sulphide belts, and home to 45 volcanic-hosted massive sulphide deposits. Within close proximity to the Brunswick No. 12 mine (230Mt), and established mining infrastructure that includes a processing facility, roads, water and power, Bathurst has already proven itself as a major mining district, with 130Mt of ore produced.
Following the release of the initial drill results from their 100% owned Nash Creek Project in the Bathurst District, company CEO, Max Porterfield, commented on the current market and how Callinex aims to leverage market shortages to enhance value for shareholders;
“The focus to grow the Company’s zinc-rich resource base within close proximity to infrastructure in the Bathurst Mining District comes during a major global supply shortage. Given that mine production is unable to meet demand and the market is relying on above ground inventories, prices are well positioned to increase in the near future” (News Release, July 13, 2017).
Nash Creek Project
In the spring of 2016, Callinex acquired the Point Leamington project in Newfoundland from Newmarket Gold. This advanced staged 14.1 Mt VMS project has high-grade mineralization with the resource starting at the surface and continuing to a depth of 350 m.