Zeehan Zinc

[jerpy]

Came across this company on another B.B but they look interesting on recent announcements of securing extra funding to bring forward production. The stated aim is to become a major Lead and Zinc producer in Tasmania.

 

Originally listing on Aim in March 2007, the shares underperformed and drifted down presumably on the lack of positive newsflow, though news may have leaked of production delays which were admitted in the October results. However, they comment these delays are now behind them and the share price seems to be holding steady on recent RNS announcements, which leads me to wonder if now is the right time to invest and a buying opportunity before the main action?

 

They have found new dicoveries announced earlier this month........Ralph Rossouw, CEO of Zeehan Zinc said:

 

"The Boss Lode is an exciting discovery of a new style of flat lying, stratabound mineralisation at Comstock. The lode is open to west, east and south and extends under the previously known vein lodes of the mine site. It is only 30m below our present pit floor at the Allison's Lode. Our team is currently evaluating the economics of this new deposit and we intend to accelerate our drilling program in order to prove-up its extent.

 

Combined with the increase in resources at the Watsons and Main Lodes, the new deposit represents an excellent follow on from the Company's drilling program during 2007 and demonstrates the significant potential of our assets."

 

The October results stated "the Company is focussed on achieving initial operations and revenues through the sale of lead concentrate and zinc pre-concentrate". Whilst the additional funding will also bring forward the development of the company's Lead mine at the Oceana site.

 

Check out the website for more details

 

http://www.zeehanzinc.com/

 

Would be interested in others comments as to whether it's too early to get excited? i've bought a small(very small) stake, but contemplating more.