The Morgan Report senior equity analyst discovered the fact that major zinc mines were being depleted a few years ago. TMR produced a white paper on the Zinc market fundamentals and urged our members to buy an up and coming zinc producer with very significant silver credits. Approximately eighteen months after our white paper, the first bank analysts came forward with the fundamental supply/demand dynamics for zinc. The very favorable market conditions for the zinc market remain unknown to the vast majority of resource investors. We know there is always room for a good natural resource stock that has a high degree of profitability and we want all our subscribers to know our view is rather bearish on most of the base metals with the exception of zinc. With that in mind please note the opportunity below. ---David Morgan

David Morgan

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Three of the world's leading mining experts believe a treasure of great riches could be hiding just 18 miles from one of the biggest mines in history

By Lior Gantz,
President, Wealth Research Group

I'm writing today to bring you news about what may well be the greatest treasure hunt of our time.

The treasure I'm referring to isn't pirate's gold. It's a mineral deposit of staggering size that could have a major impact on the world's supply of a very crucial industrial metal, zinc!

Geologists have long suspected that the huge zinc deposit at the famed Sullivan Mine outside Kimberley, British Columbia, Canada is just part of a much larger mega-deposit waiting to be found.

That's because the ore deposit that provided feedstock for the historic Sullivan Mine for almost 100 years (eight times longer than the 12 years a typical zinc mine operates) is a so-called sedimentary-exhalative (SEDEX) deposit, and these deposits are ordinarily found in groups. ^{8, 14}

The first part of the treasure is found

In 1892, using technology that's crude by today's standards, four prospectors discovered what many believe is just the first part of one of the world's most valuable mineral treasures.⁸

Searching east of present day Kimberley, Pat Sullivan and three colleagues found one of the world's largest, richest zinc deposits.^{8, 13} For almost a century this massive deposit served as feedstock for what became known as the Sullivan Mine.

Until its closing in 2001, the Sullivan Mine produced more than 8 million tons of zinc, 8 million tons of lead, and 300 million ounces of silver having a combined value in excess of $40 billion at today's prices.^8, 14

Within the mining community, Paul Ransom is widely considered the world's leading expert on massive, Sullivan-sized SEDEX deposits. For more than 30 years, he worked for Cominco (now Teck Resources Ltd.), which operated the Sullivan Mine.

According to Paul's research, a large concentration of Sullivan Time rocks is located just over 18 miles (30 kilometers) from the Sullivan Mine at what is known as the Sully Project, operated by Kootenay Zinc Corp. And while 18 miles might seem like a significant distance if you're out for a Sunday stroll, it's right next door in geological terms.

Enter Kootenay Zinc and its geological dream team

Kootenay Zinc Corp. [OTCQB: KTNNF/ CSE: ZNK] has assembled a three-man "dream team" of geologists to pinpoint the precise location of what's looking more and more like the rest of the Sullivan mineral treasure.

In addition to Paul Ransom, the company has tapped the expertise of:

Dr. David Broughton, one of the world's most renowned experts on sediment-hosted mineral deposits. Dr. Broughton, who has a PhD in geology, received the prestigious Thayer Lindsley Award for his discovery of the largest copper ore deposit in the world.

Brian Jones, who was instrumental in finding one of Canada's most famous mineral discoveries, Voisey's Bay, is one of the world's top experts in the use of gravity surveys.⁶

This treasure-hunting triumvirate has a combined 100+ years of experience locating some of the most valuable mineral deposits on the planet:

• Voisey's Bay nickel project was sold for $4.3 billion.
• Ivanhoe Mines has a market capitalization of over $3 billion and it contains one of the world's largest copper deposits, a massive platinum deposit and a world class zinc deposit. Dr. Broughton was instrumental in some of these discoveries and received awards as a result.

And what they've found at Kootenay Zinc's Sully Project, a scant 18 miles from the famed Sullivan Mine, has the potential to make history...

Treasure maps reveal all

Using technology known as gravity mapping, Paul and his colleagues have created a series of maps that reveal what lies below the surface of what's been dubbed the Sully Project.

But how likely is it that two huge SEDEX deposits would form side by side? And how likely is it that they would exist 18 miles from the Sullivan Mine?

Highly likely, because the hydrothermal vents responsible for the creation of SEDEX deposits rarely occur in isolation. Typically, they're found in clusters, what geologists refer to as vent fields.^{1, 2}

Preliminary drilling at Sully suggests this could be a SEDEX deposit of historic proportions. And the timing couldn't be better...

Surging demand, dwindling supply^{4, 5, 10, 16}

Demand for zinc is soaring even as supplies are dwindling, pushing prices relentlessly higher (and making every ton of zinc ore sitting in the ground worth more and more with each passing day).

Consider these facts:

• FACT: Zinc is the fourth most-used metal in industry, behind iron, aluminum, and copper.
   
• FACT: Zinc is indispensable for many important industrial applications. It's used to galvanize steel or iron to prevent rusting, and to manufacture specialized batteries. It's also a crucial component of important alloys like brass.
   
• FACT: Major zinc mines have been shutting down. China recently shut down 26 lead and zinc mines for environmental reasons. Ireland's Lisheen Mine and Australia's Century Mine have also shut down, reducing annual production by 630,000 tons.
   
• FACT: China's demand for zinc is growing even as it's reducing supplies. In 2015, China consumed 47% of the world's zinc as it continued building mega-cities, bridges, airports, and seaports at a frenetic pace.
   
• FACT: Belgium-based Nyrstar, the world's #1 zinc producer, has explored shutting down mining operations in an effort to deal with a burdensome debt load. If that were to happen, it would reduce supply even more.
   
• FACT: Zinc prices are skyrocketing. This vitally important industrial metal began 2016 at $0.70 per pound, and ended the year at $1.04 per pound ? a 48.5% increase in a single year. As 2017 began, zinc continued to move higher and is consistently above $1.20 per pound.

Soaring demand, combined with tight supply, means higher prices for zinc in the years ahead. Kootenay Zinc [OTCQB: KTNNF/ CSE: ZNK] could be sitting on a mineral treasure of unimaginable value.

The Importance of Timing
& How to Play the Coming BOOM in Zinc

Last year, lithium stocks were the big money makers. For example, Lithium-X, which I recommended on March 11, 2016, jumped +127% in just over a month. Now, zinc miners are poised to soar next. And Kootenay Zinc is shaping up to be one of our biggest winners.

You might find it hard to believe returns like these are possible. But let me assure you that fast, triple-digit returns are actually the norm, not the exception, when a junior mining company announces a major discovery.

Zinc is now in what we call the "Aggressive Takeover" stage. Small-cap companies that own promising deposits are being merged for a thick premium into large-cap mining behemoths.

I have personally examined 109 zinc projects in 2016-2017, and today, I want to make sure you get the full scope of what your biggest winner could be in 2017.

I encourage you to do your own due diligence on Kootenay Zinc [OTCQB: KTNNF/ CSE: ZNK] and if your research confirms what I've written here (as I am confident it will), consider investment exposure to this red-hot zinc market. If the company is able to confirm finding the rest of the historic Sullivan deposit, those shares could become one of the best investments you'll ever make.

Lior Gantz, President & Editor Wealth Research Group

REFERENCES

1. Baker, Edward T. and German, Christopher R.; On the Global Distribution of Hydrothermal Vent Fields; 2004; U.S. DEPT. OF COMMERCE, NOAA; retrieved electronically at http://www.pmel.noaa.gov/pubs/outstand/bake2544/bake2544.shtml
2. Carbonate-hosted lead-zinc ore deposits; retrieved electronically from https://en.wikipedia.org/wiki/Carbonate-hosted_lead-zinc_ore_deposits
3. Crane, Lisa; A deeper look at the Sully; CANADIAN MINING & ENERGY; retrieved electronically from http://www.miningandenergy.ca/britishcolumbia/article/a_deeper_look_at_the_sully/
4. Danforth, G.W.; An Elementary Outline Of Mechanical Processes; Chapter 17; Forgotten Books; 2012
5. Desjardins, Jeff; 11 Things Every Metal Investor Needs to Know About Zinc; VISUAL CAPITALIST; October, 19, 2016; retrieved electronically from http://www.businessinsider.com/11-things-investors-need-to-know-about-zinc
6. Desjardins, Jeff; The Story of Voisey's Bay; VISUAL CAPITALIST; October, 28, 2015; retrieved electronically from http://www.visualcapitalist.com/the-story-of-voiseys-bay-the-discovery-1-of-3/
7. Emsbo, Poul; Geologic criteria for the assessment of sedimentary exhalative (sedex) Zn-Pb-Ag deposits: U.S. GEOLOGICAL SURVEY OPEN-FILE REPORT 2009 1209; retrieved electronically from https://pubs.usgs.gov/of/2009/1209/pdf/OF09-1209.pdf
8. Horswill, Douglas; The Teck-Cominco Sullivan Mine Legacy in Kimberley, British Columbia; NORTHERN MINER; June, 2010; retrieved electronically from http://www.republicofmining.com/2010/06/16/the-teck-cominco-sullivan-mine-legacy-in-kimberly-british-columbia-by-douglas-horswill/
9. Jackson, Andrew; SEDEX Sedimentary Exhalative Ore Deposits, 911 METALLURGIST, retrieved electronically from https://www.911metallurgist.com/blog/sedex-sedimentary-exhalative-ore-deposits.
10. Jamasmie, Cecilia; World's biggest zinc producer exploring total exit from mining; MINING.COM; retrieved electronically from http://www.mining.com/worlds-biggest-zinc-producer-exploring-total-exit-from-mining/
11. Lyatsky, Henry; Magnetic and Gravity Mapping in Mineral Exploration: the Value of Well-Rounded Geophysical Skills; RECORDER (Official publication of the Canadian Society of Exploration Geophysicists); Oct. 2010; Vol. 35, No. 8.
12. McWilliams, Bill; Orebody or Anomaly? Stikine Gold's quest for glory; April, 2005; retrieved electronically from http://www.safehaven.com/print/2969/orebody-or-anomaly-stikine-golds-quest-for-glory
13. Mitchell, Dianne; Sullivan - Another of BC's Great Mines; BRITANNIA MINE MUSEUM; March, 2014; retrieved electronically from http://www.britanniaminemuseum.ca/Blog/sullivan-another-of-bcs-great-mines
14. Positive Impact; MINING DECISIONS; retrieved electronically from http://www.miningdecisions.com/home/positive-impact/
15. Williams, Kylie; SEDEX: The Biggest Lead and Zinc Deposits in the World; GEOLOGY FOR INVESTORS; retrieved electronically from http://www.geologyforinvestors.com/sedex-biggest-lead-zinc-deposits-world/
16. Zinc; retrieved electronically from https://en.m.wikipedia.org/wiki/Zinc
17. Updated Gravity Modeling and Drill Target Definition, Kootenay Zinc Corp. news release; January 31, 2017.
18. Goldman Singles Out Zinc as ?Bullish Exception' Among Metals; May 19, 2016; BLOOMBERG NEWS; retrieved electronically from http://www.bloomberg.com