Group Eleven Resources (TSX-V: ZNG; OTC: GRLVF; FRA: 3GE) is well-positioned for growth with its focus on identifying high-quality zinc exploration opportunities in Ireland, home to some of the world's largest zinc deposits.
Group Eleven Resources (TSX-V: ZNG; OTC: GRLVF; FRA: 3GE) is a mineral exploration company based in Canada, specializing in identifying high-quality zinc exploration opportunities in Ireland. The company holds the largest license package in SW Ireland and has two key projects: PG West and Stonepark. In 2019, Glencore Canada Corp. became the largest shareholder of the company, subsequently upping their stake to 22.9% and providing Group Eleven with an avenue to Glencore's extensive resources and expertise. Michael Gentile, a professional money manager with a successful track record in junior mining, owns the second largest shareholding in Group Eleven.
Group Eleven recently made a significant discovery at the Ballywire prospect, located in southwest Ireland. This discovery is a game-changer for the company as it strengthens its position in the Irish zinc district. The discovery is situated at the intersection of two mineralized trends: the Pallas Green and the Rathdowney Trend, about 20km southeast of Glencore's Pallas Green zinc deposit. As of April 17, Group Eleven Resources' stock is trading at around $0.10 per share and has a market cap of approximately $15.8 million.
Zinc is an essential base metal for several industries, primarily used for galvanizing steel to prevent rusting. Demand for zinc batteries is also increasing due to the shift towards renewable energy sources, which is expected to keep zinc prices buoyant in the coming years. The global zinc-air battery market size is anticipated to hit USD 196.7 million by 2028 and exhibit a CAGR of 7.7% during the forecast period. Furthermore, zinc's emerging role in offshore wind, solar farms, as well as fertilizers supports positive demand prospects, particularly in China.
Ireland is one of the largest zinc miners in Europe and is home to some of the world's largest zinc deposits. The country ranks first globally in terms of zinc found per square kilometer and has a low economic threshold, making it an ideal location for mining activities. Ireland consistently ranks highly in the Fraser Institute's annual mining survey, with a top ranking for its Policy Perception Index and a respectable position for its Investment Attractiveness. With the global energy transition driving demand for base metals, zinc is expected to play a crucial role in infrastructure development.
Group Eleven's discovery at the Ballywire prospect, located at the PG West Project, is a significant milestone for the company. The proximity of Group Eleven's projects to Glencore's existing Pallas Green zinc deposit provides an advantage in terms of future logistics and infrastructure, which should lead to significant cost savings and other synergies. The company is progressing well with its ongoing drilling program at Ballywire, consisting of 2-4 holes. Results are expected to be reported in the near term. The Ballywire discovery area remains open for 3km to the ENE, 1.5km to the W, and at least 500m to the NNW, indicating promising exploration potential. This discovery is a significant boost for the company and may benefit Glencore, its largest shareholder.
Group Eleven has also reported encouraging results from regional drilling at its Stonepark and PG West Projects in Ireland. With Glencore's investment in the company and the recent Ballywire discovery, the company is well-positioned to be a potential takeover target. Glencore's Pallas Green deposit, one of the world's largest undeveloped zinc deposits, is adjacent to the PG West Project, while the Stonepark deposit, located 1-3 kilometres away, also holds excellent synergy potential.
In 2023, Group Eleven Resources has identified two key value drivers to propel the company's growth. Firstly, the company is currently conducting follow-up drilling at the Ballywire discovery located within the PG West project. This follow-up drilling program will involve 2-4 holes, totalling up to 1,200m, and further drilling is planned along the 4-5km strike.
Secondly, the company plans to conduct a drill test of the Carrickittle West 'Deep Target', a Pallas Green lookalike target located only 5-7km on-trend from Pallas Green, on the company’s Stonepark project. The hole will have a target depth of 700m to 1,100m and is slated to commence later this year, subject to receipt of necessary permits and progress at Ballywire. These upcoming catalysts are expected to contribute significantly to Group Eleven Resources' growth trajectory, consolidating its position in the Irish zinc district.
In conclusion, Group Eleven Resources (TSX-V: ZNG; OTC: GRLVF; FRA: 3GE) is well-positioned for growth with its focus on identifying high-quality zinc exploration opportunities in Ireland, home to some of the world's largest zinc deposits. With Glencore Canada Corp as its largest shareholder, Group Eleven has an avenue to extensive resources and expertise, an advantage in terms of logistics and infrastructure and potentially significant cost savings and other synergies. The recent discovery at the Ballywire prospect is a game-changer which strengthens the company's position in the Irish zinc district, while other promising exploration prospects indicate further growth potential.
Disclaimer: Please be aware that this is not financial advice and that you should conduct due diligence before investing. Group Eleven Resources Corp. is a paid marketing client of Machai Capital (thegoldstocks.com).
Written By: Thegoldstocks.com
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