Energia Minerals (ASX:EMX) has increased its total exploration target on the Gorno zinc project in Italy to 6-10 million tonnes at an average grade of 7-10% ZnPb as it has discovered a new prospect on the land package. Even though a grade of 7-10% ZnPb is very respectable, keep in mind this mine historically produced zinc and lead by processing a head grade of almost 15% ZnPb, and it’s not impossible the company will encounter new high-grade zones during its exploration programs. The company expects to convert 3-5Mt of its exploration target into a JORC-compliant resource estimate within the next 18 months.
Based on this updated exploration target, Energia Minerals now expects the Gorno zinc project to contain between 925 million and 2.2 billion pounds of zinc and lead, for an in situ value of $1-2.3B.
Disclosure: The author holds no position in Energia Minerals. Please see our disclaimer for current positions.