A zinc-focused exploration and development company
The strategy is straightforward enough. The company now aspires to be “a zinc-focused exploration and development company”.
To that end, at the same time as it officially changed its name Zinc One also acquired the Scotia zinc property in British Columbia.
The Scotia project
The Scotia project consists of one mineral claim totalling 4,014 hectares, located in the Scotia River area of west central British Columbia, approximately 40 km southeast of Prince Rupert.
The deal requires a C$500,000 spend on the property from Zinc One before the second anniversary of the agreement, as well as the payment in aggregate of 900,000 shares and C$50,000 cash.
But that was just the start.
Acquisition of Peruvian zinc projects through purchase of Forrester Metals
The ink was scarcely dry on the Scotia deal before Zinc One moved on another, much larger deal. It was announced on 1 February 2017 that the company would acquire Forrester Metals, in a one-for-5.5 all-share acquisition, a deal that was approved by the TSX in mid-May.
The Forrester key asset is the Bongara zinc mine and the associated Charlotte Bongara zinc project in Peru. Here, zinc oxide mineralisation occurs over a 2.5 kilometre trend, and much of the area has been subject to sampling from pits and trenches, as well as by shallow drilling. The zinc oxide mineralisation is open along strike and moves into another exploration area known as Campo Cielo, where pits and trenches have also exposed high grade.
Historical exploration work showed a resource of up to 1.2 mln tonnes of oxides grading around 21% zinc, although this is not a number that is compliant with modern NI-43-101 legislation.
Five drill holes at Charlotte Bongara delivered high grades in drilling conducted in 1994.
Zinc One now plans a drilling programme of up to 300 shallow holes at Bongara in order to tighten drill spacing in the areas of known mineralisation and to test the periphery. A trenching and pit sampling programme will get underway simultaneously. The plan is to put together a NI 43-101 compliant resource update by the end of the year.
The company raised C$10 mln in conjunction with the acquisition of Forrester Metals at a unit price of C$0.60 where each unit consists of one Zinc One share and one half of a share purchase warrant, with each whole warrant exercisable at C$0.90.
Bongara and Charlotte to be flagship assets, says chief executive
Zinc One’s chief executive Jim Walchuk argues that the acquisition of Bongara and Charlotte takes Zinc One closer to becoming a zinc producer.
“Although there are other quality assets in Forrester, it is the high-grade zinc Bongara and Charlotte Bongara properties which will become the flagship project of Zinc One,” he said. “This is an exciting opportunity for Zinc One and all its shareholders.”