Underground Zinc: Southern Turkey

Abridged from our latest to TCR Network:
— Eurasian Minerals owns about 2 million shares of A TURKEY ZINC PRODUCER that is seeing its market value “up-rated” this week.
— The underground zinc mine, started three or so years ago, is now “paying for itself” after three years. Direct-shipping ore is packaged onto trucks and sent to a nearby port, then to Belgium, and to newly sanction-free Iran entirely by truck.
Commodities brokers are often the buyers. “We have surplus cash,” metallurgist and Pasinex president Steve Williams says from Toronto — packing bags for his monthly trip to Turkey.

Spoiler: the company is Pasinex Resources. It is small, just barely profitable and in the making for three years. Five or six other zinc-linked securities also are moving to higher ground in Canada, USA, London and Australia markets as zinc’s price rises.

— Grades are probably the factor that make this 50-50 mine with a private Turkey miner, family-owned Akmetal, work well enough to avoid on-site and possibly messy (for permitting purposes) processing. Average grade for sulphides (47% grades approx) and oxides (31% approx) come in at about 40%.
Maybe two-third of all zinc on Earth is used in the process of galvanizing. (There are some — Ivanhoe Mines comes to mind — who believe zinc will become an active fertilizer in food crops.)
— Mr. Williams, a 61-year-old metallurgist from western Australia, runs the numbers from Toronto. The company president has a graduate business degree from Tulane University in New Orleans. He spends a lot of time at the mine, in the southern Turkey hills. Altitude of the mine is 600 meters to 800 meters.

— The mine itself, Pinargozu, is carbonate replacement and within an easy drive of Adana, a city of 1.8 million in a country of 78 million. Another property, Golchuk, is in a different part of Turkey and came from early work that Eurasian Minerals did there several years ago.


Screen Shot 2017-01-30 at 9.36.58 AM
Internal Grades From Turkey ZInc Mine
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Big landscape look at Turkey












For those looking in on our TCR Network, here are some other points (all delivered Sunday of this week of January 28, 2017):

— Pasinex at $29 million CAD market worth might be fair value or it might be below fair value. That depends on: the silver and lead that the Pasinex miners, more than 200 of them, are extracting for shipment these days; the rising (for now) prices of zinc, lead and possibly silver; further underground mine development of promising shoots; perceptions about Islam and political terrorism and regional conflicts in Turkey.

— Pasinex has no regulatory-agency compliant and filed resource statement or economic study; the estimates are all internal right now. Mr. Williams, a 20-year metallurgist for SGS Labs in Canada, zigged to quick production instead of spending $2 million or more on zagging paperwork and engineering blueprints. See table above for a general idea of grades.

— Pasinex and Akmetal “share” operation of the mine. Akmetal does the digging and hauling and the mine developing to identify other areas; Pasinex does the books, the technical, the geology that identifies further mining based on 12,000 meters of drilling a year; the “bootstrapping,” as they call it. Pasinex rents most of the mining gear and equipment from Akmetal when it needs it.

— I bought shares as I indicated I would a day ago, 8,000 shares at a USD price of 0.1578 cents via the PSXRF OTC ticker in the USA. The Canada shares trade on the cheaper and less visible CSE exchange in Canada. The original shell for the company that trades publicly was called Triple Dragon.

“This area is known as a zinc province maybe since the 1970s but not explored at all … artisan miners — (my note: essentially hard-working thieves) — here and there. The permitting was pretty straight forward because it is underground with a small footprint and direct shipping so no processing plant,” STEVE WILLIAMS says.

The property itself did NOT have a mine when Pasinex purchased the claims and land. That other Golchuk property in the northern part of Turkey is a copper target — the one from Eurasian Minerals (whose EMX stock we believe, and have believed since July 2016,  is “in play,” possibly insistent purchases of EMX shares from another royalty-c0, even today).

The Canada unit of Pasinex in Toronto spends about a half-million CAD yearly, the company says. A strong USD and weak CAD tend to boost the financials. Steve Williams lives in rural Ontario with his wife, family and a beagle named Mimi. He has lived in Canada since 1987.

There is more for our TCR Network. Our folks in TCR already have that “more.”

In the meanwhile, here is a January slide deck from Pasinex. http://pasinex.com/wp-content/uploads/2013/07/Pasinex-Corporate-Presentation-January-2017.pdf

The zinc in our TCR Network research and in the portfolio at home comes largely from Ivanhoe Mines, whose shares have outpaced most billion-dollar mine builders in terms of price appreciation this month of January 2017. IVN in Canada and IVPAF ticker in USA

Several zinc producers and explorers, including Trevali Mining and much smaller names — Thunderstruck Resources (an early-stage Fiji Islands developer) for one — are benefiting from rising zinc prices (and other base metals) this early 2017. I own Thunderstruck shares and have for some time now, and I spent time with execs and possible partners a week ago.

A fresh partnership for tiny Thunderstruck’s developing zinc (and copper) assets in Fiji will double the share price. AWE in Canada ticker and THURF in USA


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Tiburon CA USA