Stock Snapshot: Fireweed Zinc
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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This article contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). Certain information contained herein constitutes “forward-looking information” under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “expects”, “believes”, “aims to”, “plans to” or “intends to” or variations of such words and phrases or statements that certain actions, events or results “will” occur. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed by such forward-looking statements or forward-looking information, standard transaction risks; impact of the transaction on the parties; and risks relating to financings; regulatory approvals; foreign country operations and volatile share prices. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Actual results may differ materially from those currently anticipated in such statements. The views expressed in this publication and on the EnergyandGold website do not necessarily reflect the views of Energy and Gold Publishing LTD, publisher of EnergyandGold.com. Accordingly, readers should not place undue reliance on forward-looking statements and forward looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on www.SEDAR.com for important risk disclosures. It’s your money and your responsibility.