Zinc - a metal with good performance
Zinc is approaching the US$3,000 mark again. With rising vaccination figures against Covid-19, hopes for a revival of the economy are also rising. The industry is also being boosted by the end of the Chinese New Year. This is because China is decisive for demand and supply. Along with iron, aluminum and copper, zinc is the metal most used in industry. The bluish-white metal is mostly used to protect other metals against corrosion.
Declining inventories could also be driving prices up at present. Last year, production interruptions at some mines caused a drop in output of around four percent. Demand is expected to increase in the current year.
Zinc mines exist all over the world, with China having a predominant position. Most zinc comes from China, Australia, Canada, the USA and Peru. There are many exploration projects around the globe. However, it is important to note the timeframe of approximately five to ten years for a new project from the exploration phase to production. Thus, experts expect a deficit on the zinc market in the short to medium term.
In China, Griffin Mining - https://www.youtube.com/watch?v=hd_vbsI41VQ - is probably the largest zinc producer. This is ensured by the Caijiaying zinc-gold mine (also silver and lead). Mineralization at this mine is related to a Jurassic age magmatic event. The resource models for the different zones of mineralization are continuously updated. Griffin Mining expects to increase production by about 80 percent in the next few years.
In Canada, Osisko Metals - https://www.youtube.com/watch?v=OSUoSOiBszY - has two zinc projects. The Pine Point project in the Northwest Territories is suitable for open pit and shallow underground mining and has an encouraging pre-feasibility study. The Bathurst Mining Camp projects are located in New Brunswick.
Current corporate information and press releases from Griffin Mining (https://www.resource-capital.ch/en/companies/griffin-mining-ltd/) and Osisko Metals (https://www.resource-capital.ch/en/companies/osisko-metals-inc/).
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