Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Following its acquisition of the Salobro Zinc Project from Vale and IMS Engenharia Mineral, Emerita Resources (TSXV: EMO) has received the necessary permits to start a diamond drilling campaign at the 1,209.75-hectare site, located in the southeastern state of Minas Gerais.
In a press release, the Toronto-based firm said that it is targeting completion of the revised resource by the end of Q2/2018, since current estimates are historical and, in management’s view, should not be relied upon.
According to the preliminary assessment of the deposit, Salobro contains 8.3 million tonnes grading 7.12% zinc and lead. “Further work must be completed in order to demonstrate whether a reasonable expectation for commercial extraction exists,” the statement reads.
The company is planning to run an initial drilling program that contemplates 3,500 meters of diamond drilling whose main objective is to expand the resource.
The team advancing the program, the Canadian miner said, is the same that discovered Brazil’s largest and highest-grade potash deposit and expanded Belo Sun Mining’s Volta Grande project from 2 million ounces to 6 million ounces of gold.
