(Disclosure: The following represents my opinions only. I am not receiving any compensation for writing this article, nor does Hydra Capital have any business relationship with companies mentioned in this post. I am long CZX.V)
After market close today, Canada Zinc Metals (CZX.V, last at C$0.32) released additional results from this summer's definition/metallurgical drill program at the Cardiac Creek deposit in British Columbia. To use the company's own description, hole A-17-137 intersected a "massive envelope of mineralization" measuring 57.8 metres of 11.8% zinc-plus-lead plus 19 g/t silver. Included within this interval was 15.4 metres grading 22.6% zinc-plus-lead and 36 g/t silver. You can read the full press release linked here. I had expected good results from this hole based on visual descriptions, but the true thickness of the intercept is impressive. To help illustrate the scale of a hole like this, it may be useful to picture a 20-storey building's worth of high grade lead-zinc mineralization... and that's just the thickness.
I've included figures below from the press release. Essentially, they show the 1.2 kilometre long surface projection of the deposit (left), the orientation of the mineralization (steeply dipping), and the nearly 800 metre down-dip extent of the mineralization (right):
With zinc prices at 10-year highs, it's hard to imagine a better time for CZX to finally shine. I suspect there would be cost synergies in developing CZX's Cardiac Creek alongside of the nearby Cirque deposit (owned by Teck and Korea Zinc), but I'll leave that speculation alone for now. What I will say is that if I'm a large company that's serious about expanding my zinc asset development pipeline, Cardiac Creek has to already be on my radar... today's drill holes just put an exclamation point on that.
With an updated resource estimate expected in Q2 2018, metallurgical test results in Q1 2018, and a (first-ever) PEA in Q2 2018, CZX holders have a busy calendar in front of them. Additional drill results are still pending over the next few/several weeks, but with results like those released today, I suspect a few heads will turn CZX's way. Investment bank analysts will no doubt start to sharpen their pencils on this little company with a deposit that is too big not to know about. In a market that is looking for ways to get leverage to a predicted looming zinc shortage CZX seems like a logical bet to me, but as always, time will tell.