This company is in a consolidation pattern - nobody wants it - apart from Chinese giant Tongling, another Chinese investor and Lundin Mining, which is still sniffing around this deposit. Will it be in the end the same "nobody wants time" as we had with other juniors this August? We do not know, but we like the things, which insiders or industry leaders or both are buying. We had a very exciting run after summer napping time in Almaden Minerals, Copper Fox Metals, Goldstone Resources, Sunridge Gold, Avino Silver, Alkane Resources, NGeX Resources, Revett Minerals - to name a few among other companies.
Canada Zinc Metals and TNR Gold are still lagging the performance and they are late to the QE party, but whether it is still a buying opportunity will be decided by the Mr Market in the end, as usual.
What is the common sense in the so different investment situations: when Erick Sprott buys into Avino Silver, Silver Wheaton buys into Revett Minerals, Lukas Lundin buys into NGeX Resources and invest more to keep its stake in Sunridge Gold, Panasonic buys into Tesla, Tongling buys into Canada Zinc Metals and Nova Gold sells 50% of 1 mil NON 43-101 historical resource of gold at Shotgun for shares of TNR Gold and significantly increase its position in that company? All these situations are common only in one, but very powerful in investment world thing: industry and/or company insiders are buying in. Can they be mistaken - yes, by all means - but we like to follow the "smart" money.
Tongling, apparently, has spent some time and money with one of the leading consultants in the industry on DD before making a decision to increase its stake to over 30% in Canada Zinc Metals. Time will tell you and us, as usual - who is making mistake us or the market in pricing of this M&A situation in Canada with Chinese deep pockets. Catalyst will be:
1. Closing of Tongling financing.
2. Higher zinc and lead prices (QE multiplied by Zinc shortage, according to some reports).
4. New discoveries at the North Lead anomaly.
5. Lukas Lundin involvement.
Email from the Company:
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Email from the Company:
Please find below, for your information, an excerpt from the November 3, 2010 “Metals Morning Note” issued by Salman Partners of Vancouver, British Columbia, Canada.
Regards,
Canada Zinc Metals Corp.
TSX.V: CZX; Frankfurt : A0F7E1
Regards,
Canada Zinc Metals Corp.
TSX.V: CZX; Frankfurt : A0F7E1
“Zinc
The world is exhausting its mines”
“Teck Resources Inc…. also gave a bullish outlook for zinc in its investor day presentation, pointing out – as we have – that a series of mine closures beginning in 2012 is likely to lead to a growing global shortage of mined zinc.”
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About Canada Zinc Metals Corp.
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 a world class mineral belt called the Kechika Trough which hosts in excess of 80 million tonnes of base metal resources. Canada Zinc Metals owns a total of 78,526 hectares in 233 claims which extend northwestward from the Akie property for a distance of 125 km.
The Company has filed a NI 43-101 report supporting the estimated inferred resource of 23.6 million tonnes grading 7.6% Zn, 1.5% Pb and 13.0 g/t Ag (at a 5% Zn cut off grade) at its flagship Akie property. Using this estimate, the deposit contains 3.95 billion pounds of zinc, 780 million pounds of lead and 8.95 million ounces of silver. The deposit remains open in all directions.
Tongling Nonferrous Metals Group and Lundin Mining are significant shareholders of the Company.
Please visit us at www.canadazincmetals.com
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