Massive Zinc Discovery Highlights Exploration Success in British Columbia

Source: Streetwise Reports 11/21/2024

Core Assets Corp. (CC:CSE; CCOOF:OTCMKT; 5RJ:FRA) has announced results from its 2024 diamond drilling campaign at the Silver Lime Project in British Columbias Atlin Mining District. Read why Core Assets President and CEO Nick Rodway calls these zinc intercepts “massive.”

Core Assets Corp. (CC:CSE; CCOOF:OTCMKT; 5RJ:FRA) has announced results from its 2024 diamond drilling campaign at the Silver Lime Project in British Columbia’s Atlin Mining District. The campaign yielded the project’s longest and highest-grade massive sulfide zinc intercept to date: 11.78 meters grading 10.6% zinc, 0.36% copper, and 16 g/t (grams per tonne) silver from surface. The drilling program, which spanned 3,602.35 meters over 11 holes, extended the footprint of mineralization across the project’s 2.7-kilometer trend, encompassing the Sulphide City Target and its associated skarn zones.

Highlights From The News Release:

Three (3) drill holes were completed from one (1) pad at the Whaleback Fe-Zn-Cu Skarn Target in 2024 for a combined total of 304.15m (Figures 1 and 2; Table 1). All holes were oriented north-northwest and targeted the high-grade Fe-Zn-Cu massive sulfide skarn mineralization that was channel sampled at surface in 2021:

• SLM24-060 returned 10.5m of 7.8% Zn (Zinc), 0.25% Cu (Copper), and 10g/t Ag (Gold) within 39.9m of 2.5% Zn, 0.13% Cu, and 5.1g/t Ag.

• SLM24-061 returned 11.78m of 10.6% Zn, 0.36% Cu, and 16g/t Ag from surface.

• Skarn mineralization at Whaleback forms a 250m long trend with high-grade Zn-Cu-Ag-Pb carbonate replacement mineralization exposed at surface at the Gally Target, where shallow drilling in 2023 intersected 8m of 139g/t Ag, 3.5% Pb+Zn (Lead+Zinc) and 0.18% Cu from surface, including 1.3m of 845g/t Ag, 31.3% Pb+Zn and 1.10% Cu. (Figure 2a).

Notably, the Whaleback Fe-Zn-Cu Skarn Target produced significant results, including 10.5 meters grading 7.8% zinc, 0.25% copper, and 10 g/t silver within a broader intercept of 39.9 meters at 2.5% zinc. Other highlights include multiple intersections at Sulphide City, such as 8.7 meters of 0.17% copper, 1.2% zinc, 0.9% lead, and 10.4 g/t silver from 136 meters depth, along with porphyry-style veining and molybdenum-copper-silver mineralization at depth.

Drilling also targeted the Pike Valley and Pete’s North areas. Early results from Pike Valley include 0.25 meters grading 82 g/t silver, 3.4% zinc, and 2.3% lead at 48.9 meters depth, indicating increasing grades westward. At Pete’s North, near-surface discoveries of sheeted sulfide veins were confirmed, with one intercept grading 55 g/t silver, 2.2% lead, and 1.5% zinc near the bottom of a 313.7-meter hole.

Core Assets’ President and CEO, Nick Rodway, stated in the news release, “Our longest and highest-grade massive sulfide zinc intercepts were obtained during the 2024 drilling season. We’ve also successfully tapped quartz-sericite-pyrite zones and potassically altered porphyritic intrusions carrying Mo-Cu-Ag signatures at depth at Sulphide City. This impressive system remains open at depth and in multiple directions for exploration and is primed for additional discoveries. We look forward to presenting our surficial assay data in the coming weeks, as well as new structural interpretations for the Silver Lime Project.”

Silver and Copper: Key Drivers in a Shifting Metals Market

On October 25, Reuters reported on disruptions in global zinc supply caused by sanctions on Russia’s Ozernoye mine. This is indicative of the broader supply chain challenges in the mining industry, with the delay affecting forecasts for global production. Supply uncertainties contributed to heightened prices and reflected the ongoing impact of geopolitical tensions on metal markets.

An October 28 USA Today article detailed copper prices at US$4.36 per pound, up 12.03% year-to-date. The article cited copper’s vital role in the electrification economy, including applications in electric vehicles, renewable energy systems, and infrastructure projects. The report noted that China’s significant consumption and economic policies directly influence global demand for copper, while mining disruptions and the transition to clean energy have bolstered prices.

Ahead of the Herd, on November 5, highlighted silver’s impressive 46% year-to-date gains, with prices reaching US$33.67 per ounce. UBS analysts noted, “Our expectation that the silver market will remain in deficit over the coming years implies continuous declines in above-ground inventories, which should help fundamentally underpin prices.” The Silver Institute reported industrial demand for silver hit a record 654.4 million ounces in 2023, driven by renewable energy applications like solar panels. A further deficit of 215.3 million ounces was projected for 2024. This would mark the fourth consecutive year of supply shortages.

The same Ahead of the Herd article also discussed copper’s role in the green energy transition, emphasizing its importance in renewable energy systems and electric vehicles. It cited the metal’s dual industrial and investment demand, which continues to drive price increases amid a constrained supply environment.

Core Assets Catalysts

Core Assets highlighted several key catalysts that support the Silver Lime Project’s potential for large-scale mineralization. According to the company’s October 2024 investor presentation, the Silver Lime Project demonstrates characteristics aligned with world-class porphyry-carbonate replacement deposit systems. The 2024 drilling program not only expanded known zones of mineralization but also identified significant new targets for further exploration.

The investor presentation emphasizes the project’s location in the underexplored Atlin Mining District, with district-scale landholding of over 1,140 square kilometers. Recent geophysical surveys have identified deep-seated porphyry targets that remain open for further drilling. Additionally, surficial assays and structural mapping have enhanced targeting precision, increasing confidence in the continuity and depth potential of high-grade mineralization. [OWNERSHIP_CHART-11100]

The presentation also highlights the project’s strategic location near key infrastructure, which may reduce exploration and development costs. Core Assets’ continued focus on defining the mineralization footprint and conducting systematic drilling positions the company for potential resource delineation in upcoming field seasons.

Ownership and Share Structure

According to Refinitiv, Core Assets Corp. has a total of 127.11 million shares outstanding and a market capitalization of CA$19.07 million.

Reuters notes that 9.91% of the company is held by management and insiders. CEO Nick Rodway is the largest shareholder in this category, holding 5.59 million shares, or 4.40%.

Strategic investor Zimtu Capital Corp. owns 8.09% of the company, equivalent to 10.29 million shares.

Institutional investors hold 18.25% of the company. Among them, Crescat Capital LLC is the largest, with 13.84% ownership, or 17.59 million shares. Sprott Asset Management LP holds 3.93%, or 5 million shares, and US Global Investors Inc. owns 0.47%, or 0.60 million shares.

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