Tuesday, July 13, 2010

Canada Zinc Metals - Lawrence Roulston's Resource Opportunities CZX.v, TNR.v, LUN.to, BLS.to, CS.to, WRN.to, S.to, IMN.to, BWR.to, BHP, RTP, IVN.to

"This investment story is all about China and its growth. Warren Buffet mentioned along the lines, that in order to be the great investment story the business behind it should be really boring. Canada Zinc Metals with its Zinc deposit in Canada will pass this test at the first glance. What can be duller than Zinc in times of Twitter, Tesla and iPads? In order to get our idea you need to have a look at three things here: chart above with exponential growth in Car sales in China, Chart below with Zinc priced for a Double Dip and CZX.v corporate structure. Chinese Tongling holds now close to 20% in the company. Latest placement was with another Chinese investor at 0.6CAD with premium to the market of more than 30% (CZX.v now is at 0.45CAD). This investor controls now more than 10% of Canada Zinc Metals according to filing. With good odds for deposit to be expanding and blue sky potential of the new discoveries we think that the company is very close to more aggressive move by Tongling in order to secure the potential of this region play in Canada. For us it will be very interesting to see the destiny of investment stake by CZX.v in TNR Gold in this case, when Togling will become a partner with strategic opportunities in Lithium and REE investment and can be potentially involved in huge Argentinian Copper play at Los Azules."

Excerpts from the July 2010 issue of Lawrence Roulston’s Resource Opportunities newsletter.

Renowned mining industry expert Lawrence Roulston brings a wealth of mining investment insight in his mining investment newsletter. In fact, from 2004 to 2008, his average mining stock gains exceeded 330%.

With more than 25 years of hands-on experience in the mining industry as an analyst and mining company executive, Lawrence is uniquely positioned to provide sought after mining industry and mining stock insights ahead of others.

Canada Zinc Metals Corp.



“Canada Zinc is drilling on its Akie zinc lead deposit in northern British Columbia . The intent of the current program is to expand on an already sizable deposit. The company also holds a dominant land position along the favorable trend that hosts Akie and other large deposits.

Based on a resource estimate in 2008, the Cardiac Creek deposit, located on the Akie property, has a resource of 23.6 million tonnes of 7.6% zinc, 1.5% lead and 13 grams per tonne silver at a 5% zinc cut-off. The aim of the present drilling is to test target zones both north and south of the present deposit.

Surface work and limited drilling has shown those areas to have the right geological conditions to host mineralization like that at Cardiac Creek. Even modest success in that drilling would point to significant expansion potential for a deposit that is already approaching the economic threshold.

The Cirque deposit of Teck and Korea Zinc, located 20 kilometers northwest of Akie, hosts a non-compliant resource of about 50 million tonnes of 10% zinc plus lead. The major has done little on that deposit since its attention was diverted to its huge Red Dog deposit in Alaska , now one of the largest zinc mines in the world. After a couple of decades of production, theend of the mine life is in sight for the Red Dog mine. Teck retained the claims over the Cirque deposit area, but holds little else in the district.

Canada Zinc controls an extensive property position that covers most of the favorable trend for a total of 180km. Limited work by several previous operators has demonstrated the appropriate geological setting and the presence of zinc-lead mineralization. The deposit already outlined by Canada Zinc, the expansion potential and the dominant land position in an important metal district provides a strong basis for valuation. However, at this time, investors in North America have little interest in zinc explorers.

The outlook is very different in Asia . Canada Zinc has caught the attention of the Chinese mining industry. In May, Tongling Nonferrous Metal invested a further C$3.45 million in the company, bringing its stake to 17.65% of the equity of Canada Zinc. Another company, Jintuo, recently invested C$3 million at C$0.60, to bring its stake to 11%. Canada Zinc is trading well below the value of its assets. Results over the coming months could push that value substantially higher. At the same time, investor interest in base metal deposits is likely to grow, on both sides of the Pacific.”

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