Less than 1% iron in the zinc concentrate is pretty bloody pure. Something around 10% is more typical in zinc concentrates. So we have a MVT deposit that is very easy (read: lower cost) to mine, we'll be producing relatively pure zinc concentrates that are easier (read: lower cost) to smelt, we'll be getting silver credits (read: offset costs = lower treatment charges), we have a large/growing high-grade deposit that is easier (read: lower cost) to mine/mill and all the infrastructure (except the mine itself) is already built and available for use. No wonder Pomorzany is making money on low grade ores even with Zinc at depressed prices.

The Zinc supply/demand paradigm was looking like it might get pushed out further than expected given that some of these big mines slated to close in 2013-2014 are managing to eke out another year of production and China increasing output of Zinc by 20% in 2012 was definitely a surprise.... but if this is a relatively easy to mine/mill/smelt operation with a long mine life (after resource expansion) it adds tremendous value.

If these preliminiary metallurgical tests hold, then this is the type of deposit that is foundational for profitable, long-term operations and majors will be interested. Looking at what the gold majors did over the past few years - buy anything and everything to boost production regardless of OPEX or cost it's clear that it failed and the tide has turned. Now only quality deposits are being developed.

It appears (so far) that we have a high-quality deposit here and Zinc in over-supply for another two years would actually benefit Rathdowney - lower quality zinc projects might get delayed or go un-developed so when the supply crunch hits, it'll hit that much harder and provide greater value to the shareholders of this company.

I hate sounding like a cheer leader but it's hard to find problems here - and that's usually a pretty easy thing with junior resource investments.