Gaalen: Welcome to equities.com here at the Vancouver Resource Investment Conference. My name is Gaalen Engen. I’m sitting here with the president of Pasinex Resources, Steve Williams. And we’re going to talk about zinc.
Steve Williams: Yeah indeed. I’m looking forward to it.
Gaalen: Well, good. Now let…tell me about what the primary focus now for Pasinex Resources is?
Steve Williams: Well, we’re focused on zinc. We’ve got a zinc project, which is a joint venture with the Turkish mining company, “AK Metal.” It’s in the south of Turkey in the province of Adana in the southeast of Turkey. And we’re now starting to mine. We’re mining small tonnage but high grade direct shipping on.
Gaalen: Perfect. Can you tell us then how it is to do business in Turkey? I’m sure everyone is interested in knowing.
Steve Williams: Yeah, yes everybody is interested in that. Now it’s great, you know, the macro situation is Turkey is the 16th largest economy in the world. It’s been growing. It’s been one of the sort of success stories in the world. It’s been growing at around 5% per year GDP, that slowed in the last 12 months to about 3%. But really being growing spectacularly in the last 10 years. Young population, the average age 29, well educated, you know, it’s a classic emerging economy. People, you know, want to, you know, build their future, build their wealth. And, you know, the government is pro-business, pro-money and they see mining as an important part of their growth strategy. So, you know, it just like a really good place to do business.
Gaalen: All that aside, let’s talk about the price of zinc. Because we’ve seen some, you know, pretty bleak news in recent times of commodity prices, easiness as it were. Zinc itself has had over the last 12 months experienced a bit of a drop. But then if you look at the graph over the last 25 years, zinc has maintained itself and possibly even a bit of an up curve, where do you see the price of zinc heading in the next like two years?
Steve Williams: I know the price of zinc is going up. There’s no question, I mean, you know, zinc has been hanging in the five months at around a dollar a pound U.S. It dropped last week, it went down sort of to 91 cents. They closed the week at 93 cents. But that’s very much short-term pessimism, you know, with the price of copper going down, price of oil going down. The macro situation is that there is gonna be significant supply side shortage on zinc. Brunswick Mining in Bathurst, New Brunswick closed year and a half ago. Lisheen is about to close. Century, which is a big zinc mine in Australia is closing in two years. So, you know, in the next two to three years, there’s going to be a lot of shortfall in zinc supply. So, I think, you know, the zinc price is going, you know, well over a $1.50 probably.
So, you know, at the moment, we’re just seeing some short-term movement, pessimistic movement, you know, really a general malaise with the sort of markets. But I think if you look at the fundamentals of zinc, price is going up.
Gaalen: That sounds great. Now that in mind, you guys have two zinc projects. You want to discuss those, let me know what they are?
Steve Williams: Yeah. So, as I said, it’s a joint venture with a Turkish mining company, maybe just a brief comment about that. When we went into Turkey, we went into Turkey in 2012, we knew that if you go into, you know, want to build a mine in a country like Turkey and not just Turkey, it applies to a number of countries, you should have a local partner. So, we went and got a local partner, who they already have three mines in Turkey. So, they are an experienced mining company. They’re well connected politically. They’re well connected in terms of community and all very important things. So, it’s a joint venture with them, 50:50. We’re in a zinc district in the south of Turkey, so it’s actually a whole region of zinc, Grossly under explored. So, there’s a lot of upside zinc potential and we’ve taken these two properties, north of an old zinc mine, on strike of that old zinc mine. And these two properties are called Pinargozu and Akkaya. They’re back to back…they’re just properties back to back. And we’re starting…while exploring on both, but we’re starting to mine as well on the Pinargozu property now.
Gaalen: Yeah and from what I understand, you guys have a successfully major first direct shipping, like that you want to describe about what’s included in that?
Steve Williams: Yeah, we started mining in May-June of last year 2014, and we mined a bit over 5000 tons last year 2014. So as of December, we sold our first lot, which was a 5000-ton lot. The 5000 tons is a sort of typical shipping lot. So, we sold 5000-ton lot which we mine from Pinargozu and it was a high-grade zinc. It was about 32% zinc, which is very high grade. Anything above around about 25% zinc, you can sell direct. You don’t have to process. The smelting processes can buy direct. So, we sold it as direct shipping. So basically, we mine it, we crush it and we sell it. And the sale was well over a million dollars U.S. So that’s a nice starter for a junior that’s getting going. And we’re using that cash to pay for some of the [inaudible 00:05:36[ costs. And then our plan this year is to sell several more lots.
Gaalen: It’s exciting news, especially on a growing front of zinc.
Steve Williams: Yeah.
Gaalen: It’s been a pleasure talking with you, Steve. We really appreciate you coming to spend time with us. I’ll let you go to enjoy the rest of the conference, but thanks very much for coming out.
Steve Williams: Thanks Gaalen. Nice to meet you.
Gaalen: Any time. Nice to meet you too.