Connemara Mining, an Irish exploration group that is searching for zinc in several parts of the country, wants to grow by signing contracts outside of Ireland. Claire Shoesmithreports.
Speaking after the group's agm in Dublin yesterday, chairman John Teeling said that, at £6 million (€8.8 million), the company's market capitalisation was too small. As a result, the board was considering opportunities to search for zinc in the Middle East and North Africa.
He also said there was a possibility that Connemara may apply for licences to search for other metals in Ireland or consider a tie-up with a larger player.
It currently has 22 zinc licences in Ireland and one for gold.
Addressing shareholders yesterday, Mr Teeling said Connemara was seeking to take advantage of what is a very attractive zinc market.
He said rising demand for the metal, which is used in the construction and automotive industries as well as for galvanising, has pushed prices up significantly from $1,200 (€88) a tonne in 2003, to almost $4,000 a tonne at the start of this year. It is currently trading at around $3,300 a tonne.
Connemara's main focus is on six licences in the Monaster block, adjacent to an already existing zinc discovery at Pallas Green in Limerick. Two holes have been drilled at the site by Connemara's joint venture partner Teck Cominco, and results are expected within the next month or so.
Connemara is also hoping to start its own drilling at Lough Sheelin, a separate site that lies to the northwest of the Tara mine at Navan in October. Results of this should be known by the end of November.
The £1 million raised in last month's AIM listing will pay for the Lough Sheelin drilling, with the Monaster activities coming under the joint venture.
