One of the best looking charts in the junior resource sector right now belongs to a company named Fireweed Zinc (TSX-V:FWZ, OTC:FWEDF):
Since bottoming at C$.67 in November FWZ shares have rallied nearly 200% to a recent high of C$1.95/share. The strong performance can be explained by two primary driving factors:
- Strong zinc sector with zinc prices rising to multi-year highs at US$1.64/lb
- Strong drill results (including 8.73% Zinc, 7.62% Lead and 129 g/t Silver over 38 meters) and an impressive updated mineral resource estimate at its Macmillan Pass Project (11.2 million tonnes at 9.6% zinc-equivalent indicated plus 39.5 million tonnes at 10.0% zinc-equivalent inferred)
The updated resource estimate for Macmillan Pass (consisting of the Tom and Jason claims) makes the project one of the largest zinc deposits in the world held by a junior:
Fireweed has excellent management (including Chairman John Robins and CEO Brandon Macdonald) and a tight share structure (17.8 million shares issued & outstanding, 27 million shares fully-diluted). As FWZ proceeds to upgrade some of its inferred resource to measured & indicated FWZ shares could see a continued upward revaluation that better reflects the rarity of the resource (large size, excellent grades, and top-tier jurisdiction).
2018 objectives for Fireweed are…
- Preliminary Economic Assessment (PEA) released in Q2 2018
- Summer 2018: Commence large scale drilling program with three goals (upgrade priority zones to M&I for pre-feasibility, expand known zones through step-outs, drill new targets and prove up entirely new deposits)
- Summer 2018: Extensive regional exploration including geochemistry, geophysics, etc.
- Summer 2018: Expand baseline environmental to kick off permitting process
The Macmillan Pass Project has the potential to be a world class project and to potentially become an attractive acquisition target for a large mining company. We will continue to follow the FWZ story closely throughout 2018 and keep readers apprised of important updates. From a technical chart perspective FWZ shares have important support at C$1.50, while a breakout above the C$1.95 all-time high would target C$2.50+.
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