Hi All:

Our share price is a tad depressed, perhaps because Zinc prices are having bad press lately. I know, I know, we are still far from production and we also have great deal of silver as well in the ground, but Zinc is part of our name and therefore is part of the general perception.

Below is an excerpt from MINEWEB:

Zinc's Uncertain Outlook

Zinc should remain under pressure and range-bound "until there are convincing signs that steel production, especially China is on an upswing," Melek advised. "BMO Research does not expect this to happen until the end of the summer."

Melek said the longer-term zinc price outlook looks better "as there are virtually no zinc mining projects in the pipeline while demand is expected to be stable."

However, warehouse inventories still remain high as the LME stocks stabilized at 600kt, representing downside risk.

BMO Research expects a large physical zinc surplus of 767kt this year and a 311kt surplus in 2011, before the market eventually moves into a deficit situation.

The BMO zinc price forecast has been dropped from $1.08 per pound to 92-cents per pound for 2010 and from $1.10/lb to 90-cents/lb in 2011.

http://www.mineweb.com/mineweb/view/mineweb/en/page67?oid=108466&sn=Detail&pid=102055

Cheers,

durban1