phase 3 drilling rerating due

Highlights

·Phase 3 Drilling Underway at Kildare, following up high-grade intercepts at McGregor, and Celtic Tiger Discovery

·100%-owned Kildare Zinc Project.

·First hole to test continuity of thick high-grade mineralisation in Hole 003.

·Ramp-up with 2nd rig due early September to follow up high grade discovery at Celtic

·The Phase 3 program will ramp up further when a second drilling rig arrives in early September to target the newly discovered Celtic Tiger prospect, ~1km west of McGregor.


Company Summary


·Establishing a strong foothold in Ireland, ZMI owns 100% interest in 7 zinc projects located around Ireland – Kildare, Ballinasloe, Navan, Silgo, Monaghan, Cork and Galway

·Large Landholding of 700km2 – Due to strategic locations around majors ZMI is a serious T/O target upon further exploration success. Kildare held by one company (ZMI) for first time ever

·Large maiden high grade resource of 5.2mt @ 8.6% Zn+Pb @ flagship project at Kildare (combination of McGregor and Shamrock)

·The Kildare Project comprises of 5 prospects in the project area and significant drill intersections at the McGregor prospect including 48m @12.2% Zn + Pb from 14m and 61m @ 10.3% Zn + Pb from 6m – exploration on the area has stagnated since the 1990’s but the area was previously explored by Newmont and Anglo in the 1960’s

·The Navan Project is located 15km south-east of the world class Navan Tara mine (70mt @ 10.1% Zn & 2.6% Pb) and is located near processing infrastructure of the Tara mine which has the capacity to process several million tonnes of ore per year – the project is relatively unexplored terrane due to tightly held tenure by large explorers

·Resource and exploration upside at Kildare during ZMI’s first year.

·New geological model has produced immediate success: Thick high-grade zinc, McGregor ‘growth fault’, Celtic Tiger discovery.

·Zinc supply at 2006 inflection point, price breakout anticipated.

·Significant value being placed on zinc projects with short to medium term potential.

·Ireland is the largest producer or zinc in Western Europe producing 25% of the regions zinc – it is host to the largest zinc deposit in Europe (Boliden Tara mine)

·The country has extensive high quality existing infrastructure including sealed roads, heavy rail, underutilised processing plants and a very capable domestic labour force

·Option over the 650,000tpa Galmoy processing plant (currently located at Darwin port)

·Strong Cash Position to advance Kildare and other projects


Zinc


·Supply squeeze up us, huge price uplift anticipated.

·Demand growing »4% with supply shortening for the 4th most commonly used metal.

·Western world galvanise @ 30%, China, Indonesia, India @ 5% - huge shift coming

·Mine closures taking 11% of supply out of the market and minimal supply coming online

·LME depleting. Shanghai also showing severe signs of declining stock, contrary to previous predictions.

·New uses would send demand out of control, recent hypothesis;

·Zinc bromide batteries, fire safe/walls & off grid energy

·Ag use: replenish the Phos in over used farming land. - huge market





Ireland


·Most Prospective country in world per Km2 for Zinc

·6th largest mine in the world, largest in Europe – Navan, Boliden Tara (»110mt @ 10% Zn+Pb)

·High grade low cost operations.

·Existing high quality infrastructure

·Stable Government and low mining tax rate.

·Recent rush of majors and mid tiers to Ireland looking for Zn –ZMI ahead of the curve.





Upcoming Plan


·Target high grade mineralisation via 2-3 holes into the area likely to have thickened as it gets closer to the mineralised feeder fault at McGregor, this being 50m from the existing known resource – immediate tonnage upside. This theory is likely to be true as the lead (Pb) component is much higher at the feeder fault as Pb doesn’t travel away from the source as far as zinc would. Drilling has commenced

·First Initial step out drilling has found a mineralised fault within the targeted geology at and around Celtic Tiger to test Base of W.Reef – could be another cluster of high grade pods huge amount of strike over WR targets. Follow up with drilling 5/6 holes. Could be significant tonnage to add. Huge leverage to be company maker

·Identify more base of reef (AB-WR-ABL or WR-ABL) drill targets around faults and other favourable geo settings etc. at Mcg, Shamrock, West Kildare Graben, Harzand and Derrymullen. Several high quality targets still to be tested

·Study on Galmoy as we continue to add tonnes and remodel in order to work out the best way forward

·Results will reveal all but the company is extremely undervalued with a $3.5m EV in a hot zinc space