Blue Moon, Blue Sky: $MOON.V $BMOOF

Just a quick note on this one, time to start following Blue Moon Zinc Corp (TSX.V: MOON) (OTCQB: BMOOF). No matter which way you cut it, zinc is doing very well and should continue on this trajectory. Blue Moon, with a $7.5 million dollar market cap, is focused on the advanced stage, 100% owned Blue Moon zinc project in the USA. The key here is upcoming catalysts (permit, PEA), the chance for further discovery (open at depth, along strike) and the opportunity to expand the high grade resource. And while the project’s grade, metallurgy, and jurisdiction all check out (don’t worry, they know the lay of the land in California and are contemplating an underground operation), the team also stands out as fully capable.

30 Day LME Zinc Warehouse Levels 5 Year Zinc Spot 60 Day Zinc Spot

Blue Moon’s NI 43-101 Resource Estimate

The project has a NI 43-101 Mineral Resource estimate with approximately 3.8 million tons grading 8.3% zinc equivalent for approximately 377 million pounds of zinc in the Indicated category; 4.1 million tons with a grade of 7.8% zinc equivalent for approximately 395 million pounds of zinc in the Inferred category, plus significant bi-products of copper, silver and gold. The resource is open at depth and along strike and has excellent metallurgy. A report detailing the resource will be available within 45 days of October 3, 2017. The Company plans to advance the project to feasibility and permitting, with the PEA expected in Q1 of next year.

Blue Moon Resource- Indicated Blue Moon Resource Inferred Parameters in Blue Moon 43-101 Resource

California’s Active Mining Scene

Cali MinesThe Blue Moon zinc project is located in east-central California within Mariposa County in the Foothills. The property is somewhat in the middle of no where, accessible by gravel roads off nearby paved highway. There are active mines in the region and this area was part of the original California gold rush.

Infrastructure is in place, including underground development, main transmission lines and a hydroelectric power generation facility both within one mile of the property. Sea ports, rail and trucking routes are all accessible. Remodelling of the deposit using the digitized data shows the deposit is open both to depth and to the south. The potential to expand the current resource is considered excellent.

Former Work on the Property

This project was mined by the Hecla Mining Company during the mid 40’s, producing 55,656 tons grading 12.3% zinc, 0.36% copper, 0.48% lead, 3.75 oz/ton silver and 0.062 oz/ton gold. The property was actively explored and advanced by Imperial Metals, Boliden and Lac Minerals (now Barrick) in the 1980s and 1990s.

Now it’s time for another go, with zinc prices at all time highs, and a confident, talented team led by CEO Patrick McGrath. Mr. McGrath is a CPA, CGA with over 15 years experience as a senior executive of junior resource companies including being a founder and former Vice President of Finance of Adriana Resources Inc. (now Sprott Resource Holdings Inc). Mr. McGrath has lead corporate reorganizations, mergers and acquisitions, capital raises and joint ventures. Two other team members built successful mines in California, where local knowledge and know how is key. Lutz Klingmann recently permitted and built the Soledad mine in southern California which went into commercial production in December 2016. Larry O’Connor restarted the Mesquite mine in southern California while he was VP Operations with Western Goldfields (now New Gold). This is the team you need to succeed.

The Blue Moon deposit could continue at depth as the deepest holes in the resource end in mineralization and several historical exploration holes drilled below the resource intersected significant zinc grades. Discovery might be waiting along strike as well, to drill another “Blue Moon” style deposit as these sorts of polymetallic massive sulphide deposits are often found in pods or clusters. IP and soil anomalies along strike indicate further polymetallic targets are likely to entice the tech team on the company’s land. Do you own due diligence please.

Blue Moon Zinc $MOON

DISCLAIMER

This is not in any way investment advice nor any sort of stock recommendation. Please do your own due diligence and talk to a qualified investment advisor.

The contents of this article are for informational purposes only.  Nothing in this article, in any way whatsoever, should be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy, hold or sell any security. Note the inherent risks when investing in microcap stocks. Prior to making any investment decision, we recommend that you seek outside advice from a qualified and registered investment advisor.

Blue Moon Zinc Corp is not a client nor an advertiser. One of the owners of the Stock Syndicate does own shares in Blue Moon Zinc Corp. 

Leave a Reply

Your email address will not be published. Required fields are marked *