Perth-based Myanmar Metals has increased the indicated resource at the Bawdwin joint venture project by 50 per cent with the release of a project update.
This revision confirms the project in eastern Myanmar as the world’s largest primary lead resource, as well as the ninth largest silver resource.
The news comes at a time when lead prices are expected to increase as China, the world’s primary consumer of the metal, continues to shut down smelters across the country due to environmental policy.
A Reuters report released last week stated that lead inventories stored in warehouses were now running very low due to a global deficit.
The London Metals Exchange (LME) showed a large decline in lead prices last year, going from $US2632 ($3715) a tonne on January 31, 2018 to $US1974 by January 2, 2019.
However, the price has started to show slow signs of recovery this year, sitting at $US2030 as of February 12, a 2.8 per cent gain since the start of January. The price has also declined from a recent peak on January 28 of $US2107, a 3.6 per cent fall.
The Bawdwin project is 51 per cent-owned by Myanmar Metals in a joint venture (JV) with local companies Win Myint Mo Industries (WMM) and the East Asia Power (EAP) Company, which each hold a 24.5 per cent interest.
CSA Global updated the project’s indicated mineral resource in line with JORC rules to 37.2 million tonnes at 4.3 per cent lead, 114 grams of silver a tonne, 2.4 per cent zinc and 0.2 per cent copper.
Myanmar Metals chairman and chief executive officer John Lamb commented that the company could now confidently move towards producing its pre-feasibility study (PFS), which is expected to be announced in early April.
“The increase of almost 15 in total resource tonnes, and 50 per cent in indicated resource tonnes, means that not only is the deposit larger, the level of certainty is much higher,” said Lamb.