Despite general markets the past few days -- the fundamentals for zinc continue to look very strong / very bullish commentary.
Canada Zinc Metals Corp. (TSX.V : CZX) - Zinc Markets
Please find below, for your information, recent comments made about the zinc market.
Regards,
Canada Zinc Metals Corp.
TSX.V: CZX; Frankfurt: A0RAQJ
In a research report, Wood Mackenzie said the combination of scheduled mine closures, top producer Glencore's strategic cuts and the impact of environmental inspections in China has depleted global stocks of concentrate. Global zinc stockpiles fell by a third in 2017 to 1.8 M t, equivalent to 47 days of global usage and exchange stocks halved from 500kt to 250kt over the same period. By the end of Q218, there will be less than 40 days’ of stock available for consumers; "a critically low level" and should propel Zn prices to $4,000/t in Q318.
China’s refined zinc metal imports rose by 59.3% year on year in 2017, while zinc concentrates imports were up by 21.8% in the same comparison, according to the latest Chinese customs data. China imported 676,299 t of refined Zn last year, compared with 424,440 t in 2016 and concentrate imports were 2.4 M t. Supply of refined Zn and Zn concentrates in China’s domestic market were both tight in 2017 due to a slight decrease in domestic production and a pick-up in demand from downstream consumers, which drove market participants to step up their procurement of these materials from overseas sources
About Canada Zinc Metals Corp. (TSX.V : CZX ; Frankfurt: A0RAQJ )
Canada Zinc Metals is a mineral exploration company focused on unlocking the potential of a future long life mining district in British Columbia, Canada. The Company is the dominant land holder in the Kechika Trough, a world class mineral belt, which hosts in excess of 80 million tonnes of base metal resources.
Canada Zinc Metals owns a total of 79,780 hectares in 230 mineral claims which extend northwestward from the Akie property for a distance of 140 km.
The Company has outlined a NI 43-101 compliant mineral resource at its flagship Akie property, including an indicated resource of 22.7 million tonnes grading 8.3% zinc, 1.6% lead and 14.1 g/t silver (at a 5% zinc cut-off grade) and an inferred resource of 7.5 million tonnes grading 7.0% zinc, 1.2% lead and 12.0 g/t silver (at a 5% zinc cut-off grade). Using this estimate, the deposit contains 4.2 billion pounds of zinc, 804 million pounds of lead and 10.3 million ounces of silver in the indicated category, and 1.2 billion pounds of zinc, 205 million pounds of lead and 2.9 million ounces of silver in the inferred category (at 5% zinc cut-off). The deposit remains open along strike and at depth.
| 5% zinc cut-off grade | Contained metal: |
| Category | Tonnes
(million) | Zn (%) | Pb (%) | Ag (g/t) | Zn (B lbs) | Pb (B lbs) | Ag (M oz) |
| Indicated | 22.7 | 8.32 | 1.61 | 14.1 | 4.162 | 0.804 | 10.3 |
| Inferred | 7.5 | 7.04 | 1.24 | 12.0 | 1.169 | 0.205 | 2.9 |
Tongling Nonferrous Metals Group, Jintuo (Canada) Investment Co. Ltd, Teck Resources and Korea Zinc are significant shareholders of the Company.
Teck Resources and Korea Zinc have also entered into an option agreement with Canada Zinc Metals in relation to 3 of the Company's Kechika Regional Properties