Value Microcaps Junior Miners

[Lone Clone]

I'll post this even though it looks like for the 37th year in a row zinc is failing to follow through on bullish predictions...

OK, I exaggerated a bit; there were one or two good years among those 37.)

Trevali Mining, a top pick for zinc market: Dundee Capital
Tue 9:46 am by Deborah Bacal

http://www.proactiveinvestors.com/companies/news/60188/trevali-mining-a-top-pick-for-zinc-market-dundee-capital-60188.html

Trevali Mining Corporation (TV.TO)

Trevali Mining (TSE:TV) is the best vehicle for zinc leverage on the Toronto Stock Exchange in the eyes of Dundee Capital Markets, which updated its coverage on the company following more high grade results from Trevali's Stratmat property and a $5 million flow through financing.

The Vancouver-based zinc miner announced results from its 2014 drilling program at Stratmat, which wrapped up in late December, with about 30,000 metres drilled last year.

Dundee said multiple high grade massive sulphides were intersected at the New Brunswick property that remain open for further expansion.

"The recently received assay results from the S-1 zone and S-5 lens are very positive and add upside to the current Stratmat resource of 5.5M tonnes grading 6.1% Zn, 2.6% Pb, 0.4% Cu, 54 g/t Ag and 0.6g/t Au," wrote Dundee Capital analyst Joseph Gallucci in a research note released to clients late Monday.

"A new mineral resource estimate for the Stratmat Deposit is underway, expected to be completed during Q2/15."

Dundee also noted that the company closed a non-brokered flow-through financing for total proceeds of $5.1 million, made up of 4.4 million common shares at $1.15 apiece. The new funds will be used to advance the Stratmat deposit and Halfmile mine towards production, including the possibility of a second milling facility, the broker said.

Meanwhile, Trevali's Caribou mine in New Brunswick remains on track for a second quarter start-up, Trevali announced, suggesting that everything is going according to plan, with a more detailed update to be provided in the near future.

Dundee reiterated its buy and top pick rating on Trevali, with a $2.00 per share price target, after decreasing its net asset value estimate slightly due to the financing. No other valuation metrics were changed, Dundee said.

"With Santander performing very well and Caribou progressing through development in New Brunswick, Trevali should have two operating zinc mines on line by the time positive zinc S&D fundamentals take hold which we estimate to occur around in the second half of 2015," Gallucci concluded.

Trevali, which also owns the Santander zinc mine in Peru, saw its shares close up at C$1.21 on Monday, up more than 13 percent year-to-date.