At the time of writing, shares of Trek Metals Ltd [ASX:TKM] are up by 30%, to 1.3 cents per share. The share price jumped 80% to hit 1.8 cents earlier in the day.
Why did Trek Metals Ltd shares do this?
The company announced quality metallurgical results at its flagship Kroussou project in Gabon. The results confirmed the project is capable of producing high-grade lead and zinc concentrates.
What now for Trek Metals Ltd?
Trek Metals has been in a vicious downtrend from its high of 5.1 cents in November last year. Today’s jump was a refreshing break for investors. Punters are now wondering whether this is the start of something bigger or just a trade opportunity. TKM’s Managing Director Bradley Drabsch seems bullish and told the market today:
‘“A significant step has been achieved here with these results. We can now be confident that Dikaki will produce saleable, in fact desirable, zinc and lead concentrate products. These are first pass test results and they continue to demonstrate the clear potential of the Kroussou Project to deliver zinc and lead resources of both scale and exceptional quality.”’
The lead concentrate produced up to 79% grades ― some of the highest in the world. Across the board, the overall un-optimised lead concentrate graded more than 70% with over 90% recovery.
That’s a juicy result.
But, it got better…
The overall zinc concentrate, still requiring further work to refine, graded 53% at 65% recovery. Of the zinc reporting to the zinc rougher, 90% was recovered.
The bottom line: These are excellent early results. Yet, while encouraging, I don’t think you shouldn’t be taking them too seriously yet. There’s a lot more work ahead. That said, if the current results are anything to go by, Trek Metals could easily improve grade and recovery results in the future. Additional success should do well for the share price over the medium to long term.
Resources Analyst, Markets & Money
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