Vendetta Mining (VTT.V) continues to surprise us as the company has released more high-grade drill results from the open pit component of the Pegmont Lead-Zinc project in Queensland, Australia. It’s really difficult to not get excited by assay results of in excess of 10% PbZn over 5-7.5 meters true width as this represents a gross value of US$210/t (at $1.1 lead and $1.25 zinc) after taking recoveries and payability ratios into consideration. That’s the equivalent of in excess of 5.5 g/t gold before applying a 90% recovery rate.
As mentioned before, it will be really difficult to imagine how anyone could fail to build a profitable mine at Pegmont, and we are now really looking forward to the company’s updated resource estimate, which should be released in the first quarter of next year. Pegmont is becoming irresistible for South32 (ASX:S32, S32.L) or Chinova with every additional hole.