Shine Minerals Corp (CVE: SMR) Focused on Watts Lake Project As Global Zinc production Increases
Zinc production is showing signs of edging high after years of cuts around the world. Data by analytics firm GlobalDatasuggest that production could increase by as much as 3.8% between 2019 and 2022. Amidst the expected growth inventory, levels are still at a 10-year low after a 900% decrease to 100,000 tons a year. Shine Minerals Corp (CVE: SMR) is one of the companies looking to take advantage of the enormous market deficit.
Zinc Production Increase
Zinc production is on the rise thanks to new mines coming into operation in various parts of the world. New zinc mines coming online in China, India, Mexico, and Canada supports a possible reduction in the Zinc supply deficit.
“After declining substantially in 2016, global zinc mine production increased in both 2017 and 2018, reaching 13.2Mt and 13.4Mt respectively. However, the market has remained in a severe deficit, impacted by several mine closures and production cuts over price concerns,” explained mining analyst at GlobalData
Global zinc production was up in 2018, as Australia experienced a 9.9% increase. Zinc production in Peru was up 8.5% as India registered a 5.9% increase. Amidst the rise, production levels are yet to reach a level that will be able to address growing market demand. Zinc demand in China, Germany, U.S, and Belgium has been on the rise.
Shine Minerals Watts Lake Project
A surge in demand does not come as a surprise. Zinc is the most widely consumed metal, as it is used in alloys such as brass, nickel, silver, and aluminum solder. Sensing a window of opportunity with the ever-growing demand, Shine minerals have ramped up operations at it is prospective Watts Lake Project.
The exploration and mining company has already hit mineralization in seven holes as part of a drill program at the Watt Lake Zinc project. All the seven holes intersected mineralization with holes WL19-006 (line 050W) and WL19-005 (line 050W) crossing at intervals of 43m and 31.8m. The company is currently exploring the possibility of a winter drill campaign that will seek to test for additional mineralization.
The drilling comes hot on the heels of a successful sampling program that targeted historic trenches and uncovered multiple areas of high-grade zinc-silver and lead mineralization. High-grade silver mineralization associated with zinc and lead affirms the potential of the Watts Lake Project.
Watts Lake Project is Shine minerals flagship zinc project sitting on a contiguous land package covering 13, 248 hectares. Located in the deposit endowed La Range Domain on Saskatchewan, the land package includes multiple parallel basement conductive corridors. A number of companies led by Claude Resources in the 1990s have carried out exploration works at the property.
Development of the Watt Project is Shine minerals top priority in the wake of actual mineralization data from the seven drilled holes. While demand for zinc is on the rise, the company must move with speed as up to 100 zinc projects could commence operations between now and 2022. Up to 24 zinc projects are currently construction and the remaining ones under various stages of development.