Brownfield Leverage and Blue-Sky Greenfield Zinc Exploration in British Columbia

Au Report

Source: The Critical Investor for Streetwise Reports 01/09/2018

As zinc continues to rise, The Critical Investor profiles an explorer consolidating claims in southeastern British Columbia.

Kootenay Arc; Jersey Emerald Project

1. Introduction

Every now and then certain junior mining companies succeed in consolidating a large group of claims or even multiple projects on very favorable terms, often creating very interesting continuous land packages with ongoing areas of exploration potential, greenfield and/or brownfield. This kind of transactions are usually out of the realm of larger, well-known parties, as prices shoot up the second their involvement becomes apparent.

One of these junior mining companies is Margaux Resources Ltd. (MRL:TSX.V), a relatively new player on the zinc front. The company consolidated a lot of land and historic mines in an area called the Kootenay Arc, and set out to look not only for zinc, but also for tungsten and gold. This year has already seen quite a bit of exploration activities on various projects, so it is time to discuss the current status of the company and its projects.

All presented tables are my own material, unless stated otherwise.
All pictures are company material, unless stated otherwise.
All currencies are in U.S. dollars, unless stated otherwise.

2. The Company

Margaux Resources is a mineral acquisition and exploration company focused on zinc, gold and tungsten resources in the richly mineralized Kootenay Arc region of southeastern British Columbia (B.C.), Canada. The company has quietly consolidated a portfolio of previously producing properties in the last three years with excellent exploration potential, five projects containing 24,635 hectares in total claims, that include the Jersey-Emerald mine, which at one point was the second largest historic zinc-lead mine in B.C. and the second largest tungsten mine in North America.

The projects are located in the richly mineralized zinc/lead/silver Kootenay Arc belt in the southern part of B.C. which extends over 300km, in hilly/moderately mountainous terrain. British Columbia is a very familiar mining jurisdiction, and has a solid ranking on the Policy Perception Index according to the last Fraser Survey of Mining Companies, coming in at #41 out of 104 jurisdictions worldwide.

Kootenay Arc; projects

The infrastructure is excellent as the area is a mining hotspot, with power dams nearby, and the company also identified a few nearby opportunities to eventually mill and process ore in the future. These are the Kettle River gold mill owned by Kinross in Washington, the Pend Oreille Mill belonging to Teck in the same state, and Teck’s Trial smelter complex in B.C., one of the world’s largest fully integrated zinc and lead smelting and refining complexes.

Margaux Resources has laid out a clear strategy from the get-go: it wanted to identify high-yield, past-producing and long-time inactive mines; it wants to apply modern geoscience and technology in order to research current potential at low cost, and identify economic potential previously discarded due to old mining/processing technology. It seems that they acquired …read more

Source:: The Gold Report