Base Metals: Odin hits high grade zinc as prices break 2 month record

Zinc explorers have clocked in some noteworthy results as zinc prices hit a two-month high on concerns that the shutdown of a production facility in Namibia would impact supply.

Last week, London-based Vedanta Resources announced that its Skorpion zinc operations in Namibia would be shut from early November to the end of February 2020 due to “technical issues”.

London Metals Exchange (LME) zinc is up 9 per cent in the past two months to $US2440 ($3590) a tonne.

This pricing action is great for Odin Metals (ASX:ODM), whose maiden drilling program at the Sturgeon Lake zinc-copper project in Ontario, Canada, is off to a rousing start.

Its first hole returned results of up to 3m at 26.9 per cent zinc and 257 grams per tonne silver, at the top of a broader intersection of 8.5m at 12 per cent zinc and 99g/t silver from 485.5m.

The results are in line with historic drilling results from 2011 to 2013, and extend the high-grade ‘core’ at the Abitibi Zone to the east.

Odin has completed a further three holes at Abitibi and is currently drilling a more speculative target. The company also plans to drill two further holes targeting the high-grade core.

Over in Italy, Alta Zinc (ASX:AZI) unearthed high-grade results of up to 47.8 per cent zinc and 10.5 per cent lead. These were from channel samples, collected from underground drives at its Gorno project that were partially mined before the mine was closed.

The results indicate that the Pian Bracca mineralised zone is thicker than sampled and supports its decision to carry out underground drilling to define additional zones of high-grade mineralisation. Site preparation works have started and the 30 hole drilling program is expected to begin in November.

In other ASX base metals news today:

Apollo Consolidated (ASX:AOP) will partner with major miner Independence Group (ASX:IGO) to explore its Louisa nickel-copper project in WA’s Kimberley region. Independence will spend at least $350,000 on the project within 2 years and can then elect to spend a further $3m within four years to earn a 75 per cent interest in the project.

Castillo Copper (ASX:CCZ) has completed a review of historical data that verified the existence of two historical deposits at its Mt Oxide project in Queensland’s Mt Isa copper belt. The Boomerang and Big One prospects complement the existing Arya prospect and the company is expanding its exploration plans to assess their potential.