As usual TAS has no idea what he is talking about. Soft rock?
The admiral bay zinc deposit, which Kagara bought for a steal, is classified as a Mississippi Valley-type Zn–Pb mineralization.
The Geological Survey of Western Australia conducted by the Department of Industry and Resources in 2006 confirmed the rock source quality of the ABFZ (Admiral Bay Fault Zone) as being of a very good to mostly excellent quality.
These ore bodies tend to be compact, fairly uniform plug-like or pipe-like replacements of their host carbonate sequences and as such can be extremely profitable mines.
This classification of ore deposits is also known as Mississippi Valley Type or MVT ore deposits, after a number of such deposits along the Mississippi River in the United States
Admiral Bay becomes economic when zinc hits $2400-2600 per tonne. Until then it's a real estate investment although Kagara spent $300,000 last quarter on suring up it's exploration data.
Kagara need to focus on getting King Volume into production next year and put all other exploration efforts on hold. They will have sufficient cash and cash flow to do this and can re-employ the exploration plan when zinc prices recover later this year.
KZL Price at posting:
19.0¢ Sentiment: Buy Disclosure: Held
