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Zinc price going ballistic, great time to drill


Published 13-APR-2022 16:28 P.M.


1 min read

Our exploration investment, BPM Minerals (ASX:BPM), is getting mighty close to drilling its main project in the Earaheedy basin.

The zinc market is currently straining under the pressure of high prices:

BPM 13.04.22 Price.PNG

Drilling at the Hawkins project is scheduled to begin in “mid-April” and BPM is looking to find a lead-zinc deposit similar to Rumble’s Chinook discovery.

It’s been a long time coming, but as investors we are excited to see what BPM might turn up.

Importantly. BPM will be using a portable X-Ray Fluorescence (XRF) Analyser which will give them much needed optionality in their 7,500m AC/RC drill program.

If the XRF picks up anomalies in the drill cores, BPM will be able to respond immediately with infill and deeper RC drilling.

Should BPM produce good lead-zinc grades, we think that they will be well received by the market.

This particular Reuters article caught our attention recently:

BPM 13.04.22 Article.PNG

Key takeaways:

  • A raid on LME zinc stocks has seen available tonnage fall to two-year lows
  • The exchange's European warehouses hold just 500 tonnes and the US just 550 tonnes
  • Could replicate what happened with the nickel contract in March if upwards price pressure continues

Here is why we invested in BPM and what we expect them to achieve in 2022 - BPM Investment Memo.