Irish minerals explorer Belmore Resources has released further upbeat drilling results from its Kilbricken zinc, lead and silver discovery in County Clare, Ireland. The company owns 11 prospecting licences in the country where joint venture partner, TSX-listed Lundin Mining, is operating a drilling programme.

The latest results from the project have shown that further mineralisation has been detected, with results from one drill holes revealing 10.23% zinc, 5.99% lead and 76.2 g/tonne of silver. Results from two other holes indicated an extension of the mineralising system, while a massive pyrite (iron sulphide) find was reported in another hole which could pass into high grade zinc and lead mineralisation. Results from four other holes presented mixed results, with only traces of metal resources detected in one area and a major fault zone detected in another. Optimistic signs were reported from the 09-3679-16 drill hole due to the presence of a thick mineralised zone while an intersection of the 09-3679-17 hole assayed 1.26% zinc, 5.4% lead and 14.2g/tonne of silver.

At a mid-price of 4.12p Belmore Resources is capitalised at just £1.6 million. The firm’s shares are down by over 50% on their all-time high of 9.375p reached in June 2009 despite positive newsflow. In October 2009 the company raised £300,000 through a placing and Lundin Mining Corporation continues to back the project with significant funds. Another positive point is the price of zinc, currently trading at a spot price of $2,307 a tonne on the London Metals Exchange, well ahead of the near $1,000 a tonne mark in January 2009. We expect a re-rating of the shares as Belmore continues to de-risk the project and view the shares as a speculative buy.

*Belmore Resources is a corporate client of Rivington Street Holdings, the ultimate owner of this website