Zinc of Ireland NL - Quarterly Activities and Cashflow Report - June 2024
ZINC OF IRELAND NL (ZMI) Share Update July 2024 Wednesday 31st
Zinc of Ireland NL Reports Quarterly Activities and Cashflow for June 2024
Zinc of Ireland NL (ASX: ZMI) has released its Quarterly Activities and Cashflow report for the period ending 30 June 2024, detailing significant exploration activities and financial updates.
Instant Summary:
- Completed deep overburden geochemical sampling with 931 samples collected.
- Surrendered 22 Prospecting Licenses (PLs) to focus on more prospective areas.
- Engaged Sahara Operations for exploration services at Cascade Project.
- Completed 109 auger drill holes for 1074m at Cascade Project.
- Deferred field exploration at Superior LCT Project to 2025.
Rathdowney Trend, Ireland
During Q2 2024, Zinc of Ireland NL completed deep overburden (DOB) geochemical sampling at nine Prospecting Licenses (PLs) within its Littleton and Portarlington blocks, collecting a total of 931 samples. The company also surrendered four PLs at Littleton and eighteen at Portarlington as part of a strategic review to focus on more prospective areas.
The company plans to continue optimizing its tenure throughout 2024, focusing on identifying and surrendering less prospective PLs. Currently, ZMI holds 46 PLs, down from 73 at the end of 2023. A strategic technical review of the Cashel Block is underway, leveraging the company's GIS compilation dataset.
Cascade Project, Western Australia
ZMI entered into a binding tenement sale agreement with Syndicate Minerals Pty Ltd and Gneiss Results to acquire two exploration licenses covering 183km² near Esperance, WA. Sahara Operations was engaged to provide exploration services, completing 109 auger drill holes for 1074m during the quarter. The samples are being analyzed, with results expected in early Q3 2024.
Superior LCT Project, Manitoba, Canada
ZMI, through its subsidiary Avignon Resources Pty Ltd, continued assessing its LCT pegmatite exploration opportunities in Manitoba. The company holds eight Mineral Exploration Licenses (MELs) and seven Mining Claims, with two additional MELs pending. Field exploration is deferred to 2025 due to ongoing access discussions with First Nations partners and the Manitoban Provincial government.
Financial Summary
The company reported a cash balance of approximately $332k as of 30 June 2024. During the quarter, ZMI paid approximately $74k to related parties for director’s fees and consultancy services. The company continues to seek additional resource projects to complement its existing portfolio.
The strategic focus on more prospective areas and the ongoing optimization of PLs could enhance ZMI's exploration efficiency and potential for future discoveries. However, the deferred field exploration at the Superior LCT Project may delay potential findings and investor returns. The financial position indicates a need for careful cash management and potential future capital raises.
Investor Reaction:
Analysts may view the strategic focus on high-prospect areas positively, as it could lead to more significant discoveries. However, the deferred exploration in Canada and the current cash position might raise concerns among investors about the company's short-term financial stability and operational efficiency.
Conclusion:
Investors should monitor ZMI's progress in optimizing its exploration efforts and the results from the Cascade Project's sample analyses. The company's ability to secure additional funding and manage its cash flow will be crucial in maintaining investor confidence and achieving its exploration goals.