Cantex Mine Development Corp V.CD

I was Just Thinking!

[givemeabreak1]

Seems to me a bunch of years ago I owned a high grade Zinc deposit that I traded in and out of.  So I looked them up and sure enough they still exist.  They are trading between 2 and 3 cents and as I recall they did at least one share consolidation.  Do not quote me on that do you own DD.  

So one might ask why am I bringing this company up.  No not to pump I do not own any of their shares but I seem to recall a number of people on this board looking for similar deposits to get a feel for costs.
So the Company is called NorZinc. The deposit is located in the North West Territories and they have a Measured and Indicated Resource of 9,755,000 tonnes at an average grade of 9.7%!  Another 6,403,000 tonnes inferred ounces at average grade of 12.9%.

So the important number is their break even cost from an operational stand point is 8% Zinc.  Needless to say, it follows they would need some 10% AIC just to break even.  At anyrate they are much farther ahead and have a PEA which might give you a better indication of what to look for.

Question if Cantex is worth $50 a share should not NorZinc that closed at 2.5 cents today be worth at least $40 lol!

[givemeabreak1]

For more clarity as to Zinc equivalents! Prairie Creek The Prairie Creek Project is located in traditional Dene territory in Canada’s Northwest Territories. The Prairie Creek Project consists of the Mine and surrounding land and access. The 2021 Mineral Resource Estimate for the Prairie Creek Project includes 9.8 M tonnes of total Measured & Indicated (“M&I”) Resources at 22.7%

[gartloneyrat]

Current Market Cap for CD = 26.107M CAD Current Market Cap for NorZinc = 18.933M CAD   So isn't it more a matter of number of outstanding shares/warrants etc.?   I'm honestly just asking, not trying to argue a point or anything, just trying to learn.

[givemeabreak1]

The point of the post was not to declare one better than the other the PPS was a jest of how stupid a $50 share valuation you see on this site is.  Needless to say their share price is what the market thinks they are worth not some brain dead massive thing. The main point was to show how expensive it is to mine narrow width underground Zinc deposits which is why really high grades are nice

[gartloneyrat]

Trying to figure out the costs seems to be half the battle here. Infrastructure - Road, Electricity, Water, Sewage Treatment.Obviously can vary greatly from project to project. If blasting is involved, these costs can skyrocket. Mining Costs - Mobilization and construction of the mine itself. I have no idea what these costs are. Operating Costs - Actual cost to get ore out of the ground on a

[givemeabreak1]

Gart I am not sure it is safe to say 9 million will cover the road cost. If I recall ATAC costed out their 60 km out at 11 million about 6 years ago. Needless to say that is likely closer to 15 million now.

[gartloneyrat]

I'd assume that they're expecting a significant amount of blasting to be involved in the road construction then. 

[carter2]

Metalex is an exploration company not a mining company.  Who ever buys or JV's will take care of the details like access. 

[carter2]

Ment to say Cantex but same goes for both companies 

[givemeabreak1]

True enough sometimes. However, the project has to be exceptional. Needless to say the more the project is de-risked the greater the value.

[Gillie88]

From my understanding of all the conversations I've had with the company their goal hasn't really changed. 20,000,000 tonnes at 20% zinc equivalent, JV, and their portion of the deal is worth between 300 and 500 million. I'm not holding my breath for anything before 2023 with the market as soft as it is now. And the more they prove out the better for them. 300 to 500 million only puts

[givemeabreak1]

Gillie you are drinking the koolaid without watching them make it. True enough some mills are shutting down. Here is where the theory falls apart. Zinc production is rising not falling and Zinc demand will be falling not rising. That does not bode well for Zinc price. Let me explain, I will start with the supply side arguement. Do you understand what cut off grade is? A mine might have a 20 tonne

[Gillie88]

Very interesting. Do you have links to any articles showing the decline in zinc use? Yes there is a decline in construction (maybe) but there is a large increase in agriculture and green energy uses. Also, it's not some mines closing... it's 7 of the 10 largest zinc mines in the world with only 3 of the 7 making it to 2030. The rest wont see 2027. Also how did you know I like koolaid???

[givemeabreak1]

Gillie the use of Zinc in green industries will double and maybe triple in the years to come but triple a very small amount is just a bigger small amount!  The primary use for zinc is corrosion protection by the galvanization process which is zinc coating.  So when you build a house everything in the house other than the steel beams is galvanized ie uses zinc.  Every nail you buy to

[givemeabreak1]

Now once you have read the 2 links look up current news for the housing market all over the world.  It is falling in just about every major country.  Now apply the China article to all countries!

[givemeabreak1]

Next Lesson! You can punch a hole just about anywhere and you will find nickel and zinc which is why the 2 of them have massive run-ups in price and then massive run downs.  Go back to my previous post where I discuss cut-off grades this is very important!  The novice investor buys into the idea that if there is a sudden shortage it will take 5 years to bring a new mill on stream. 

[givemeabreak1]

Gillie Here is the Canadian Statistical data!  There is more up to date but this covers a better spectrum. https://www.nrcan.gc.ca/our-natural-resources/minerals-mining/minerals-metals-facts/zinc-facts/20534

[MassiveisKing]

So GMAB 1,  Do I buy another million in CD shares, yes or no?

[carter2]

Yes you should buy a million worth of Cantex.  With the market depth how high would the share price go?

[MassiveisKing]

Carter, you rock! MassiveSulfide remains however the Exalted One. 

[givemeabreak1]

Massivesulfide doesn't even know how many pounds in a tonne lol!  

[givemeabreak1]

Gillie Remember you want to be ahead of the pack not behind the pack.  Like all those nonsense articles on how Silver will return to its traditional ratio to gold lol?  There is no such thing if it has not been their in 50 years how is that traditional.  Easy I guess just ignore the past 50 year.   Here you will note 75% of Zinc is used for coatings as I explained.