Darnley Bay Resources (DBL.V) is still drilling as a part of its C$5M exploration program at the Pine Point zinc project in the Northwest Territories. The company has now released the assay results from the second hole, and this hole which was drilled at the W85 zone and its core will be used in additional metallurgical test work.
The drill bit intersected 72 meters containing 5.64% zinc and 1.81% zinc, included in 36.5 meters of 6.44% zinc and 2.37% lead. What’s really interesting is the confirmation of the presence of Gallium and Germanium which both might have the potential to generate a by-product credit, reducing the ‘pure’ production cost of the zinc and lead concentrate.
Based on a Gallium price of $123/kg and a Germanium price of $1,100 per kilo, the 2.2 g/t Gallium and 5.6 g/t Germanium have a theoretical value of $0.27/t (negligible) and $6/t respectively. Interesting, but everything will obviously be a function of recovery rates and whether or not smelters are willing to pay for the Gallium and Germanium in the concentrate.
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The author has a long position in Darnley Bay Resources. Darnley Bay is a sponsor of the website. Please read the disclaimer
