The current zinc price of more than $2 000/t is "very profitable" for Irish zinc miners and it makes the Stonepark discovery, in Limerick, an “attractive asset”, says London-listed Arkle Mining chairperson John Teeling.

Arkle, formerly Connemara Mining, has a 23.44% participating interest in Stonepark, which is a joint venture (JV) with Toronto-based explorer Group Eleven and lies adjacent to the large Pallas Green zinc deposit.

Teeling says that some external interest has been shown in Stonepark and adds that he does not believe the value of the project is reflected in Arkle’s share price.

“We are in active discussions with our partner in Stonepark on how to proceed.  A number of exciting options exist,” he notes.

To date, more than 150 holes have been drilled at Stonepark, which has an inferred resource of 5.1-million tons.

“Group Eleven believes that there is a highly prospective geological structure running across the southern part of both the Stonepark and Pallas Green discoveries.  Drilling conducted during the year was inconclusive but one hole, at Kilteely, produced good results,” says Teeling.

Arkle also owns a 25% participating interest in the Oldcastle zinc project, in Meath. Canadian major Teck Resources is its JV partner on Oldcastle.

Teeling notes that Teck has spent sufficient amounts to earn a 75% stake in the Oldcastle blocks and that further spending will require Arkle to participate or dilute. Although results over the years, including recent drilling, have found trace zinc mineralisation, he describes these as “nothing exciting”.

On the gold front, where Arkle is involved in the Mine River project in Wicklow/Wexford and Inishowen, in Donegal, Teeling believes that the recent surge in the gold price to $1 500/oz should make gold exploration an attractive proposition.

“Development of the large gold deposit in Tyrone, owned by Dalradian, moves forward at a glacial pace.  A decision to begin development would be a major boost for the sector,” he said of the project that Dalradian, now owned by Orion Mine Finance, started ten years ago.

Teeling says that Arkle has sought to replicate the Tyrone gold discoveries on ground with similar geology to the Inishowen project. The company has found “very strong” commercial grade results in the Meeneragh area, but not elsewhere.  

“Using a fresh set of eyes, we have reviewed our database and completed fieldwork leading to the identification of a new target area between Meeneragh and the former silver/lead mine at Glentogher.  We will refine the analysis and do some more work before drilling.”

Arkle's stock traded nearly 18% higher at 1.09p a share on Friday.