i have been doing some research on why zfx entered a JV with TRF for their Wilcherry hill project. forgive me if i am covering old ground.
I hold both companies and i was keen to know why.
Have you noticed that Wilcheery Hill project is immediately South of Menninie Dam? MD is the largest zinc deposit in South Australia and in the announcement by TZN which is ZFX's JV partner in MD on the 20th Dec06 they stated .....
'Terramin Australia Limited (ASX: TZN) today announced that the Zinifex – Terramin joint venture has discovered a new zone of zinc-lead mineralisation at its Menninnie project, west of Port Augusta on South Australia’s Eyre Peninsula, Terramin Executive Chairman, Dr Kevin Moriarty, said a recently completed induced polarisation (IP) survey over the Menninnie zinc project had shown mineralised structures extend two kilometres to the south of the known Menninnie Central Zone.
“Terramin drilled six holes (4 diamond and 2 reverse
circulation) to test the IP anomalies and found zinc-lead
mineralisation in five of them that will now be assayed,” Dr Moriarty said.
Terramin and its joint venture partner Zinifex currently have more than 1000 samples awaiting assaying from the Menninnie Central drilling program, and from the latest drilling of the new Menninnie South mineralisation."
The key being here that the new high grade zone is 2 ks south of the current MD central zone. What is immediately south of MD? Yes its Wilcherry Hill (TRF/ZFX JV). Therefore i deduce that zfx are suitably impressed with the results from Menninie dam and believe the resource runs from MD into Wilcherry Hill.
http://www.montagu.com.au/research/trf3may06.pdf
this report shows a picture of the tennement at wilcheery hill and its proximity to MD. Not too sure on actual distances but i do have to assume that zfx are aware enough to make the call to JV with them.
cheers andrewe
PS Menninie is shaping up to be a monster and zfx dont even give it a mention hardly. they are playing it very close to their chest. and why wouldnt you?
ZFX
zinifex limited
