Connemara Mining’s (LON:CON) latest drilling update on the Stonepark project in Limerick reveals it may be part of a ‘world-class’ zinc find, according to research carried out by Optiva Securities.
Last week the company, which has partnered with Canada’s Teck Resources (TSX, NYSE: TCK), said the work had defined a zone of zinc-lead mineralisation with a strike length of at least 650 metres.
Optiva believes Stonepark may actually be a continuation of the neighbouring Pallas Green deposit being developed by Xstrata (LON:XTA) and Minco PLC (LON: MIO).
"From what is known so far it would seem that both Stonepark and Pallas Green could form part of the same ore-body and be of world class resource status," the broker said in a note to clients.
The ramifications of this analysis are not lost on Optiva, which says it throws open a number of interesting ‘corporate options’ to monetise its key project.
This might involve either Teck or Xstrata taking control of the two areas, though there is an alternative. "Further interest in the region comes from Vedanta LON:VED), who recently acquired Anglo-American’s (LON:AAL) Lisheen zinc mine for US$308m, which lies just 60 kilometres from Stonepark," the broker added.
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