BASE METALS RESEARCH #3
Pasinex Resources Ltd.
March 26, 2015
Pasinex makes Quantum Jump
By Stephan Bogner (Dipl. Kfm., FH)
Article #1 “Pasinex & Akmetal drill 39% Zinc over 17 m: The Right Stuff“ can be downloaded here.
Article #2 “The Metal with the Best Outlook and the Rare Ascent of an Explorer to a Profitable
Producer“ can be downloaded here.
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BASE METALS RESEARCH #3
March 26, 2015
Pasinex Resources Ltd.
Pasinex makes Quantum Jump
Yesterday on March 25, Pasinex Resources Ltd. disclosed the assay results of 8 drill holes from the
Pinargozu Project, which is a 50/50 joint venture
with the well-experienced mining company, Akmetal AS, a private company in Turkey.
Yesterday’s drill assays are the best results Pasinex
reported to date. One of the drills discovered aweinspiring 38% zinc over a remarkable length of 36
m. Such zinc grades are downright spectacular as
being around 4 times higher than the average of
existing zinc mines globally. The following graph
illustrates the extraordinary quantum jump that
Pasinex made since finding material with more
than 30% zinc on a regular basis and mining such
material profitable since 2014:
Red Dog Mine: Teck Resources Ltd.
Dairi Deposit: PT Dairi Prima Mineral (DPM)
Rampura Agucha Mine: Hindustan Zinc Ltd.
Dugald River Deposit: MMG Ltd.
Century Mine: MMG Century / China Minmetals
Cirque Deposit: Teck Resources Ltd. / Korea Zinc
Akie Deposit: Canada Zinc Metals Corp.
Halfmile Lake Deposit: Trevali Mining Corp.
Pine Point Deposit: Teck Resources Ltd.
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CSE: PSE Frankfurt: PNX
Most importantly, Pasinex has proven with
yesterday’s results that the drilling success of September 2014 was not a “one-hit wonder”. The drill
success of September was sufficient to start mining immediately.
As the newly discovered zone is located only 50 m
from the area, which is being mined as we speak
(currently some 70 miners are working here), one
can be optimistic that the new discovery will be
mined shortly as well. There still does not exist an
official resource as per NI43-101, however the size
of the new discovery indicates enough material
suitable for a multi-year mining operation.
The company must now define a first NI43-101 resource to answer the question of how many years
the mine can operate.
Gamsberg Deposit: Vedanta Resources Plc
Ozernoye Deposit: MBC Corp. of Russia / NFC
Citronen Deposit: Ironbark Zinc Ltd.
Selwyn Deposit: Selwyn Resources Ltd.
Tala Hamza Deposit: Western Mediterranean Zinc Spa / Terramin Australia Ltd. / ENOF / ORGM
Hacket River Deposit : Glencore Canada Corp.
Mehdiabad Deposit: Mehdi Abad Zinc Co. / UCL Resources Ltd.
Shalkiya Deposit: ShalkiyaZinc Group
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BASE METALS RESEARCH #3
March 26, 2015
Pasinex Resources Ltd.
The extremely high-grade zinc from Pinargozu represents a natural concentrate, a so-called DSO
(“Direct Shipping Ore”), which can be shipped/
sold directly after mining and crushing. Thanks to
this rare circumstance, Pasinex differentiates itself
from all known zinc explorer as no costly processing facility is needed. Fortunately, Pasinex does
not have to go through a time consuming and
costly Feasibility Study. This is a crucial advantage,
which I explained in more detail in the Initiating
Coverage and Update #1. Not to forget the Turkish
partner, who probably wants to make money as
fast as possible as well, and who does not see the
need for a time-robbing study thanks to their decade long experience in the region. Yet Akmetal
probably appreciates highly the input from Pasinex for a systematic mining plan.
The results of 8 drill holes totaling 710 m length
were released yesterday and are as follows:
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CSE: PSE Frankfurt: PNX
4 of the 8 drill holes discovered extremely highgrade material with more than 25% zinc, whereas
it strikes the eye that a very long intercept (36 m) is
enriched with 38% zinc; including 32 m @ 42% zinc
(hole PPS15-004). This intercept alone means that
enough material may have been found to justify
a multi-year mining operation. Most interestingly,
and as noted earlier, this intercept is just 50 m from
hole PSS14-008, which showed 31.4% zinc over
15 m (see news release February 19, 2015). Both
these high-grade zinc zones are located at same
elevation, thus mining with cost-effective underground methods may have become practicable.
The newsflow is anticipated to increase noticeable in the future as Pasinex is now exploring with
3 drill rigs at Pinargozu. Currently, more holes are
drilled to find out what lies in the 50 m between
those high-grade sections, both of which were discovered in 2015. A continuity of this high-grade
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BASE METALS RESEARCH #3
March 26, 2015
Pasinex Resources Ltd.
material is imaginable and would instantly give
Pinargozu an even larger resource. Already today,
Pinargozu has the potential to become a second
Horzum (the near-by Horzum Mine had an output
of around 4 million tonnes high-grade zinc ore).
Pasinex also announced yesterday that diamond
drilling started on its Akkaya Property (some 3 km
to the north of Pinargozu) on March 14. Approximately 14 holes for a total of 2000 m are planned
for this initial phase of drilling at Akkaya.
The Pinargozu and Akkaya zinc projects, in Adana
province, are managed within a joint venture with
Akmetal. The region is known for high-grade zinc
deposits. Akmetal’s past producing Horzum Mine
operated between 1974-1996 producing up to 4
million tonnes of oxide zinc ore grading from 20% to
30% according to Akmetal’s former mine manager.
CSE: PSE Frankfurt: PNX
In respect to yesterday’s news and the fact that
Pasinex is already producing zinc DSO for immediate sale, the mid- to long-term future appears
bright for Pasinex, and me as a shareholder.
Despite spectacular drill results and an already
commenced mining operation, Pasinex’s stock is
still rather unknown on a global scale – and for such
reason, short-term oriented investors should refrain from such a stock as it is still trading only sporadically; a circumstance that may change any time
since Pasinex is calling for attention with such formidable results and progress on an ongoing basis.
Pasinex has currently small-scale but high-grade
zinc mining (>30% Zn DSO) from the Pinargozu
project. In December 2014, a firm commitment
to sell was valued at over US$1 million. Another
5,000 tonnes of high-grade zinc material (~30%) is
in the process of being prepared for sale in Q2.
After the announcement of yesterday’s news,
Pasinex’s stock increased by 30% in Canada and is
currently trading at 0.13 CAD giving the company
a market valuation of 9 million CAD.
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BASE METALS RESEARCH #3
March 26, 2015
Pasinex Resources Ltd.
CSE: PSE Frankfurt: PNX
Disclaimer and Information on
Forward Looking Statements:
Disclosure of Interest and
Advisory Cautions:
All statements in this report, other than statements
of historical fact should be considered forward-looking statements. Much of this report is comprised of
statements of projection.
Nothing in this report should be construed as a solicitation to buy or sell any securities mentioned. Rockstone, its owners and the author of this report are
not registered broker-dealers or financial advisors.
Statements in this report that are forward looking
include that zinc prices are expected to rebound;
that Pasinex Resources Ltd. can and will start developing its projects into a mine; that historic or ongoing exploration has or will discover a mineable
deposit. These statements involve known and unknown risks, uncertainties and other factors that
may cause actual results or events to differ materially from those anticipated in these forward-looking
statements. Risks and uncertainties respecting mineral exploration companies are generally disclosed
in the annual financial or other filing documents
of Pasinex Resources Ltd. and similar companies as
filed with the relevant securities commissions, and
should be reviewed by any reader of this report.
Before investing in any securities, you should consult with your financial advisor and a registered broker-dealer. Never make an investment based solely
on what you read in an online or printed report, including Rockstone’s report, especially if the investment involves a small, thinly-traded company that
isn’t well known.
In addition, with respect to Pasinex Resources Ltd.,
a number of risks relate to any statement of projection or forward statements, including among other
risks: the receipt of all necessary financings, sales
revenues, approvals and licences; the ability to conclude a transaction, e.g. to sell mined material, build
or expand a mine or fund further exploration, development and mining; uncertainty of future production, capital expenditures and other costs; financing
and additional capital requirements for exploration,
development and construction of a mine; the receipt in a timely fashion of further permitting for
its projects; legislative, political, social or economic
developments in the jurisdictions in which Pasinex
Resources Ltd. carries on business; operating or
technical difficulties in connection with mining or development activities; the ability to keep key employees, joint venture partners and operations financed.
There can be no assurance that such statements will
prove to be accurate, as actual results and future
events could differ materially from those anticipated
in such statements. Accordingly, readers should not
place undue reliance on forward-looking information.
Rockstone and the author of this report do not undertake any obligation to update any statements
made in this report.
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The author of this report is paid by Zimtu Capital
Corp., a TSX Venture Exchange listed investment
company. Part of the author’s responsibilities at
Zimtu is to research and report on companies in
which Zimtu has an investment. So while the author of this report is not paid directly by Pasinex Resources Ltd., the author’s employer Zimtu will benefit from appreciation of Pasinex Resources Ltd.’s
stock price. In addition, the author, Stephan Bogner,
owns shares of Pasinex Resources Ltd. and would
also benefit from volume and price appreciation of
its stock. In some cases, the companies the author
features have one or more common directors with
Zimtu Capital Corp. Thus, conflicts of interests exist.
Rockstone’s and the author’s views and opinions regarding the companies they feature in their reports
are their own views and are based on information that
they have found, which they assumed to be reliable.
The author and Rockstone have not undertaken
independent due diligence of the information received. The information and analysis provided herein should not be construed as a “financial analysis”or
even “investment advice” but as an advertisement.
Rockstone and the author of this report do not guarantee the accuracy, completeness, or usefulness of
any content of this report, nor its fitness for any particular purpose.
Lastly, Rockstone and the author do not guarantee
that any of the companies mentioned in the reports
will perform as expected, and any comparisons that
were made to other companies may not be valid or
come into effect.
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BASE METALS RESEARCH #3
Pasinex Resources Ltd.
Underground drilling at Pinargozu
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March 26, 2015