by Greg Klein | October 16, 2015
A joint venture that’s both mining and drilling towards its first resource estimate completed the third lot sale of high-grade zinc material from its southeastern Turkey operation. On October 16 Pasinex Resources CSE:PSE reported the 1,215-tonne wet weight sale, grading approximately 30% for about 700,000 pounds of contained zinc. Three such sales since December now total about 12,428 tonnes containing about 7.7 million pounds.
The Pinargozu mine in Turkey’s Adana province is held by Horzum AS, a 50/50 JV of Pasinex and chrome producer Akmetal AS. Operating in parallel with resource drilling, small-scale mechanized mining employs about 60 people. Output is trucked about 100 kilometres to a warehouse where it’s crushed, screened and stored while awaiting sale.
“While Horzum AS expects to sell more material this year and beyond, currently the expected cash will not yet be sufficient to capitalize Pasinex fully,” the company stated. “Therefore, Pasinex management is in the process of raising further equity to cover G&A for the time being. Pasinex’s dependency on further capital injections ought to change during 2016 provided the Pinargozu mine continues to run at similar production rates as in the past 10 months.” A private placement offered last June for up to $500,000 didn’t close.
In August Pasinex announced the JV’s provisional acquisition of eight new zinc-lead prospects through staking, all “relatively close” to Pinargozu and the JV’s Akkaya project, as well as Akmetal’s past-producing Horzum zinc mine.
Expressing optimism about zinc prices, Pasinex CEO Steve Williams commented, “Last week Glencore, the world’s largest zinc producer, announced mine closures and reduced production totalling 500,000 tonnes zinc. We are very heartened by this because it led to an immediate spike up in the zinc price and provides a positive market environment.”