Replies to post #32517 on Value Microcaps Junior Miners

[dr_airtime]

TV.TO - Buying on breakout....

Analyst consensus is around $.90 target price at $1.00 long term zinc price and zinc price has already rocketed up there and this appears to more than a 'mean reversion' rally as if you look on 5 year chart Zinc's centre-of-gravity is $0.80. Zinc went from $0.97 to $0.995 yesterday and this is when Trevali closed above upper channel line in first chart below. Have been watching Trevali since $0.47 bounce off lower channel line. Zinc price has also been moving up in last month despite LME inventories rising. LME inventories also look like they are peaking short term last couple days. Who knows...

Trevali's centre-of-gravity on 5 year chart below is $0.80 for short term move. Hopefully a lot more than a double if zinc actuall peaks at $3850/tonne ($1.75/lb) in 2018 per my post linked a few back.

Bought at $0.70 this morning for myself and family. Their newly commissioned mine Caribou has LOM grades of 6.99% zinc which is double their Peruvian Santander mine around 3.5%. Timing looks great for Trevali now and I have benefit of never being involved in missed promised from last two years for them. From what I understand of Zinc market, offtakes are typically at global prices, even if they are all with Glencore. Pricing moving in favor of miners as their is a shortage of ore so smelter margins shrinking.

[dr_airtime]

2 more Zinc Miner Stories.

Heron and GPM Metals Ignore AZ.TO - too expensive and resource hella deep.

https://ceo.ca/@kipkeen/3-zinc-plays-with-nearterm-catalysts

HER.V/HRR.AX - AUD $28M in cash (Mar 31), CAD $58M MC.

Looked briefly per Lone Clone's suggestion.

Feasibility in place with AUD $163M in funding to production for underground mine with NPV of AUD 207M ($1.00 Zn, $3.00 Cu LT pricing).

Could probably finance 50:50 with debt equity but that would still require another AUD $50M in equity which at would dilute current equity owners down to a 58% interest at current share prices.

GPM.V

I've watched GPM.V become a two bagger the last couple months while knowing of the story. They are drilling now and blue-sky potential is that this is the next MacArthur River lead-zinc open pit. If you look at their presentation the Northern Territory Mineral board also mentions the Walker Gossan as analogous to MacArthur River. Did some sleuthing and MacArthur River was discovered from the high lead values in the outcropping Gossan (weathered oxides) - exactly what GPM.V has in it's surface sampling (see their presentation). Zinc at surface not necessarily an indication of zinc in the lower sulphides. Walker Gossan will not be another Century Mine (nearby and was world's largest Zinc mine but closed in 2014) as apparently mineralization there a bit different. Up 200%+ but still only $C 35M market cap and could be zinc exploration story of H2-2016. AZ.TO taylor deposit is 1500-2500 feet in depth - this does not justify a $C 403M MC.