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In another universe far far away Rokmaster Resources had a gold/copper project in Peru. The market blew up, they blew up but they came back to life in November of 2016 when they did a deal on the Duncan Lake zinc property in southeast BC.
My article was pretty accurate but it described a successful management team picking up a nice project in Peru. And other than me getting a bottom call dead wrong, it talked about a company that has totally changed in 3.5 years.
Rokmaster is probably correct to go after zinc. It’s been no secret for years that a lot of capacity for zinc has disappeared either through mines running out of ore and closing or mining capacity being shut down. Zinc is in shortage – will go into more shortage. It’s a good time to advance a zinc project as zinc is projected to be as high as $1.50 US a pound by 2020.
A predecessor of Teck, Cominco, worked the Duncan Lake project from 1989 to 1997 and did 8,300 meters of drilling in a dozen holes. Drilling revealed a high-grade lead/zinc mineralization extending some 2.3 km from the old Duncan Mine northward. Excellent results included 1.2 meters of combined 8.21% lead/zinc in hole C89-5 and 14/7 meters of 8.20% combined lead/zinc in hole C97-12.
Lead and zinc prices declined, Cominco was taken over by Teck and the property was abandoned. Local prospectors picked up the project and optioned it to Rokmaster. The deal closed in January of 2017. Terms of the agreement are interesting, Rokmaster is paying a lot for the project but only in shares based on certain milestones. Rokmaster paid 12 million shares for a 100% interest in the Duncan Lake property subject to a 2.5% NSR.
An additional 48 million special warrants were issued with 12 million warrants converting into shares with a mineral resource of 3 million tonnes of 6% combined lead/zinc, an additional 12 million special warrants turning into shares with a resource of 6 million tonnes of 6% combined lead/zinc and a final 12 million special warrants converting when the project begins commercial production.
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