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Kavango Resources (KAV): KSZ Hukuntsi – Drilling to commence in June

KSZ Hukuntsi -Drilling to commence in June

Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce drilling will commence on two “proof of concept” geological holes in the northern (Hukuntsi) section of the Kalahari Suture Zone (“KSZ”) in June.

Kavango’s primary objective is to become the first company ever to retrieve drill core from the bottom of the “keels” of the Karoo-age gabbros in the KSZ. The Company anticipates that drill-core from these holes will provide firm physical evidence of the KSZ’s potential to host ‘Norilsk-style’ metal sulphide deposits.

To this end, Kavango has awarded a contract to Mindea Exploration and Drilling Services (Pty) (“Mindea”), a company operated under the Botswana Citizen Economic Empowerment Policy, to design, engineer and drill a minimum of two 500m boreholes (the “Drill Contract”). Drilling is planned to commence by no later than 30 June 2021.

Mindea has agreed to accept payment for the Drill Contract half in cash and half in Kavango stock (at an issue price of 4.53p per share).

Highlights

  • Drill contract key terms:
    • Mindea to drill a minimum of two 500m “geological” diamond holes at Hukuntsi
    • Cost per metre calculated on possible depth per hole of 800m
    • Mindea to design and engineer all bore holes
    • All bore-holes to be cased from surface into the gabbro intrusive to allow for extensive testing and geophysical surveying
    • Bore-holes will be oriented -80° from the horizontal
    • Core samples (HQ and NQ size) to be recovered for geological logging, whole rock geochemistry and assaying.
    • Key safety protocols and COVID-security processes agreed
    • Mindea to accept over half its fee in equity in Kavango, to be paid through the issue of shares in the Company at an agreed price of 4.53p per share
  • Drill targets:
    • Final drill collar locations to be confirmed later this month
    • A minimum of one hole to be drilled into Target A2 (announced on 20 April 2020)
    • Analysis of other potential drill targets ongoing, with results expected shortly
  • Planned testing programme on all boreholes:
    • Downhole electromagnetic (“EM”) surveys to be performed by Spectral Geophysics, with an anticipated search radius of 300m-400m from the drill string
    • XRF testing of sand cores to be completed by Kavango’s exploration team.
    • Core for assay and petrological work will be split by Kavango staff in Hukuntsi
    • Whole rock geochemistry and assay testing of core samples to be completed at the SGS laboratory in South Africa
    • Additional analysis of geochemistry and petrological/mineralogical studies to be performed in the UK by academic consultants.
  • Site preparation:
    • Site visits completed, camp location agreed and two water sources identified
    • The Company has engaged with the local community to secure its support
    • Drill rig mobilisation expected within the next week
  • Ongoing discussions with Equity Drilling Ltd (a 49% shareholder in Mindea) concerning a future potential strategic partnership
  • Budget in place for more extensive drilling campaign later in 2021

Michael Foster, Chief Executive Officer of Kavango Resources, commented:

“The Kalahari Suture Zone was first identified 45 years ago. The technical challenges of pursuing exploration under 70m of Kalahari sands and sediments proved too much for previous companies that attempted to unlock this region’s significant potential.

Through the deployment of modern remote sensing technologies, sophisticated data analysis and persistent hard work, Kavango now aims to become the first company to retrieve drill core samples from the bottom of the “keels” of the Karoo-age gabbros here.

If we are successful this will be a major achievement for the Company. 

We believe core samples from the bottom of the gabbroic “keels” could provide us with the definitive proof we have been looking for that the KSZ could host one or more major deposits of nickel, copper and platinum group metals.

I am particularly delighted to be working with Mindea Exploration and Drilling Services on such an important project. Mindea is a well-established national drilling contractor in Botswana, having worked for Debswana and DeBeers. Equity Drilling, one of Mindea’s largest shareholders, also operates a highly regarded drill school in Gaborone, the first of its kind in Africa.

Kavango is committed to investing heavily in Botswana. Working with such reliable local partners as Mindea and Equity Drilling is integral to our ambitious growth strategy.

The fact that Mindea has agreed to receive over half of its fees in equity suggests considerable faith in the potential of the KSZ to host metal sulphide ore bodies and a great endorsement of Kavango’s exploration approach. For a minimal cash outlay, we can make significant advances with the KSZ Project, while keeping a budget in reserve for a more extensive drill campaign later this year.”

Background

Over the last three years, Kavango has conducted extensive geophysical surveys over Karoo-age gabbros at Hukuntsi using airborne and ground-based based technology. In 2019 Kavango completed a successful orientation drill programme, data from which helped augment the Company’s extensive 3D Magnetic Model of the region’s subsurface geology (announced 8 September 2020).

On 30 November 2020 Kavango released results from its analysis of the 3D Magnetic Model, which revealed close similarities between the gabbroic rock formations in the KSZ and those at the Norilsk mining centre, in northern Russia.

In December that year, the Company initiated the first ground-based Time Domain Electromagnetic (TDEM) survey of the KSZ. This was the first time this powerful remote sensing technology had been used on the KSZ.

On 20 April 2021 and 5 May 2021, Kavango released details of the results from the second TDEM survey, which defined Target A2.

Links to the relevant announcements are provided below:

Ø 08 September 2020 – https://www.investegate.co.uk/kavango-resources–kav-/rns/3d-model-confirms-ksz-norilsk-rock-formations/202009080700072794Y/

Ø 30 November 2020 – https://www.investegate.co.uk/kavango-resources–kav-/rns/4-norilsk-style-target-areas-selected-in-the-ksz/202011300700068179G/

Ø 20 April 2021 – https://www.investegate.co.uk/kavango-resources–kav-/rns/ksz-hukuntsi—tdem-conductor-identified/202104200700039575V/

Ø 05 May 2021 – https://www.investegate.co.uk/kavango-resources–kav-/rns/ksz-tdem-update-and-warrant-exercise/202105051000016206X/

The Company now proposes to drill at least one 500m borehole into Target A2, with a second hole also planned in the area. Final confirmation of specific drill collar locations will be confirmed in the coming weeks.

About Mindea

Mindea Exploration and Drilling Services (Pty) LTD was formed in September 2019 by Equity Drilling Limited and Maureen Mokgaotsane (Geologist), Sebanka Lobatlamang (Geologist) and Eddie Babuseng (Attorney at Law) to provide complete exploration solutions to its clients in Botswana.

Mindea is currently operated under the Botswana Citizen Economic Empowerment Policy and is owned 51% by local shareholders and 49% by Equity Drilling. Over the coming years it is expected that Botswana nationals will wholly own Mindea, with Equity Drilling continuing to provide strategic and technical support.

Mindea operates to strict international safety standards and deploys the latest equipment to its projects. Mindea is rigorous in its planning and site preparation.

Reflecting the quality of its operations, Mindea has recently been awarded a 3-year contract by Debswana to drill various national projects in Botswana. In addition to this, Mindea is a regular drill contractor for DeBeers.

About Equity Drilling

The owners of Equity Drilling are extremely experienced drill operators, with extensive experience of successfully working on technically challenging projects across Africa.

Equity Drilling established Africa’s first Drilling School in Botswana, the Africa Mining and Drilling Institute (“AMDI “)

AMDI is Botswana Qualifications Authority (BQA) certified, which offers internationally recognised certification to all students wishing to be taught exploration drilling. AMDI has an exclusive working relationship agreement in place with the Australian Drilling Industry Association (the “ADIA”) and offer the ADIA’s DICAT curriculum with a strong emphasis on safety in the workplace.

AMDI also offers funds the delivery of pre-industry courses to students from local communities, who have had no previous work experience. This course prepares students for the work place and making them eligible for placement into the industry on graduation. Mindea’s own labour resources have been drawn from these pre-industry course graduates

About Target A2

Kavango estimates Target A2’s properties are:

–    1km length, which is open along strike

–    Extends between 250m to 700m below surface and is gently dipping

–    Decay constant of approximately 340msec and conductance of approximately 3000 Siemens, readings   which Kavango management considers are consistent with nickel sulphide deposits elsewhere in the world

–    Located in the right geological setting, at the bottom of a “keel” in the gabbroic intrusion, according to the Company’s Magnetic 3D-Model (8 September 2020)

————————————————————————————————————

Further information in respect of the Company and its business interests is provided on the Company’s website at www.kavangoresources.com and on Twitter at #KAV.

For additional information please contact:

Kavango Resources plc

Ben Turney

bturney@kavangoresources.com

First Equity (Joint Broker)

+44 207 374 2212

Jason Robertson             

SI Capital Limited (Joint Broker)

+44 1483 413500

Nick Emerson

Kavango Resources Plc (KAV) – Kalahari Copper Belt update: Copper and Silver targets identified on LVR JV

KCB update: Cu/Ag targets identified on the LVR JV

Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce that extensive copper/silver targets (the “Targets”) have been identified on Prospecting Licences (PLs) 082/2018 and 083/2018 in the Kalahari Copper Belt (KCB). The two PLs are held in a Joint Venture farm-in with LVR GeoExplorers Ltd (the “LVR Project”).

The Targets were detected as a result of the recent Airborne EM (AEM) surveys flown over the LVR Project.  Strong soil geochemical anomalies occur at surface above the Targets.

Highlights

  • 1,216km of Airborne Electromagnetic (AEM) surveys flown over the LVR Project in March
    • Stage 1 of the LVR farm-in now complete, taking Kavango’s stake in the LVR Project to 25%
  • PL 082/2018
    • Identification of a series of conductors over a 3.5km wide deformation zone
    • The conductors lie along strike of the Plutus deposit and the Boseto Mine to the north east
    • The primary target is a large EM conductor, extending to at least 400m from the surface
    • Strong coincidental copper (25ppm to >56ppm) and zinc (50ppm to >100ppm) in soils anomaly on surface
    • Fault controlled soil geochemistry anomalies striking over 5km
    • Distinct similarities with Cupric Canyon’s Banana Zone South Limb (mirror image) on the south side of the Ghanzi Ridge
  • PL 083/2018,
    • >10km of AEM conductors in the south-east of the PL, across two main targets (6km and 4km wide)
    • Both targets have coincidental copper in soils anomaly over three lines (500m spacing) and the anomaly remains open
    • The conductors are underlain by a linear magnetic anomaly extending for over 2km beneath the soil anomaly
  • The structural position of the Targets is prospective for the discovery of copper/silver mineralisation
    • PL 082/2018 is drill ready
    • PL 083/2018 requires further field exploration to delineate drill targets
  • Drilling expected in Q3, on award of Environmental Management Plan.

Michael Foster, Chief Executive Officer of Kavango Resources, commented:

“The Airborne EM surveys have produced compelling justification for Kavango’s strategy in the Kalahari Copper Belt. We are confident we have identified copper mineralised systems, which we now have to test through drilling.

The Company’s integrated exploration approach, combining soil geochemistry, stratigraphical and structural mapping together with geophysical surveying is proving to be highly effective. A program of trenching on PL082/2018 and additional soil geochemistry on PL083/2018 is planned prior to a drill program later in the year.”

Background

SkyTEM Ltd conducted the AEM surveys in February 2021, flying a total of 1,216 line/kms over the LVR Project.

The AEM surveys, flown together with airborne magnetic surveying, were carried out on lines 200m apart, on an approximately north-south orientation.

The survey blocks were selected by Kavango’s geophysical team, based upon analysis of magnetic data and soil geochemistry results obtained at the end of 2020 combined with the remote mapping of geological structures from the analysis of Landsat imagery.

The LVR JV

The LVR JV Agreement between Kavango and LVR GeoExplorers Ltd comprise two PLs totalling 1,091km2. Kavango has the right to acquire a 90% interest in the PLs through staged exploration expenditure commitments.

With completion of Stage 1 of the JV, Kavango has earned its first 25% interest in the two licences.

The plots of the AEM surveys and their interpretation will be posted on the Company’s website.

PL 082/2018

PL 082/2018 is 126km2 and lies along strike of the Plutus deposit and the Boseto Mine, owned by Cupric Canyon. This PL is characterised by steeply dipping repetitions of D’Kar and Ngwako Pan formations sitting above and either side of a basement dome.

The AEM survey has identified a series of EM conductors over 3.5km, which are coincident with a significant geochemical anomaly. Kavango has completed extensive soil sampling over this target area, including fifteen 4km sample lines that have returned copper readings in the range of 25ppm to >56ppm and zinc readings of 50ppm to >100ppm. Fault controlled soil geochemistry anomalies strike over 5km and merit immediate further investigation.

The conductors appear to be centred on an area of deformation and thrusting marked by a number of NNE trending faults commonly associated with economic mineralisation on the KCB.

The geological interpretation suggests an almost mirror image of the Banana Zone deposit (15km to the SE) that has been drilled out by Cupric Canyon on the southern side of the adjacent Ghanzi Ridge.

The main conductor lies just 1km from the main tarred road to Maun and a few hundred meters from a major power line. It is close to surface and extends to 400m depth. It represents an attractive drill target.

LVR PL 083/2018,

PL 083/2018 covers 965km2 and lies in the western part of the KCB in Botswana.

The AEM survey over this PL shows a series of thin formational conductors (possible redox boundaries) proceeding west for over 20km but, as they approach the eastern boundary of the PL, these conductors are intercepted by NNE faults and “blossom” into a large conductive body 6km wide (Target A), with another conductive body (Target B) 4km wide further to the north.

Kalahari sand cover is approximately 10m thick in this area, but soil geochemistry anomalies remain strong.

A well-defined copper in soil anomaly (>40ppm Cu), sitting above Target A, is defined over three sample lines 500m apart. The soil anomaly remains open.

A 2km magnetic anomaly is also coincident with both the AEM survey results and the soil anomalies.

Further exploration work is required on these two anomalies to identify their stratigraphical associations and depth. However, initial data suggests both have good potential for metal mineralisation.

Further information in respect of the Company and its business interests is provided on the Company’s website at www.kavangoresources.com and on Twitter at #KAV.

For further information please contact:

Kavango Resources plc

Ben Turney

bturney@kavangoresources.com

First Equity (Joint Broker)

+44 207 374 2212

Jason Robertson             

SI Capital Limited (Joint Broker)

+44 1483 413500

Nick Emerson

Tertiary Minerals #TYM – Formation of Zambian Subsidiary

Formation of Zambian Subsidiary – Luangwa Minerals Limited

 

Tertiary Minerals plc is pleased to announce that the Company is forming a Zambian subsidiary, Luangwa Minerals Limited (“Luangwa”), targeting copper exploration and development opportunities in Zambia.

The Company has retained geologist Marcel Nally who, it is expected, will be appointed Luangwa’s exploration manager in due course. Mr. Nally was previously a director of private Zambian copper producer, Moxico Resources plc, and was responsible for the identification and acquisition of its principal mining projects. The Company has also retained Mr. Shangwa Chime as Luangwa’s Government Liaison Officer.

Tertiary will hold 96% of Luangwa, with 3% being held by Mr. Nally and 1% held by Mr. Chime.

 

Commenting today, Executive Chairman Patrick Cheetham said:

“Given that the Board has many years of experience with Zambian mining projects, we are excited to take this next step in the development of Tertiary’s mineral business. Copper is increasingly a focus for the Company and with Zambia one of the world’s top 10 copper producing countries, producing nearly 900,000 tonnes of copper in 2020, we expect Luangwa to be a valuable addition to the Tertiary asset portfolio.”

 

For more information please contact:

Tertiary Minerals plc:

Patrick Cheetham, Executive Chairman

+44 (0) 1625 838 679 

SP Angel Corporate Finance LLP – Nominated Adviser and Broker

Richard Morrison

+44 (0) 203 470 0470

Caroline Rowe

Peterhouse Capital Limited – Joint Broker

Lucy Williams

+ 44 (0) 207 469 0930

Duncan Vasey

Alan Green talks to Power Metal Resources #POW CEO Paul Johnson – Building a Mid-Tier Business

Power Metal Resources #POW CEO Paul Johnson and Alan Green discuss the strategic aims of POW before looking at progress across key projects during Q1 and upcoming development milestones for Q2.

Paul updates on the Red Rock #RRR Australasia RRAL JV in Victoria, plus Paterson Province options in Australia, the Botswana KCB and Ditau joint ventures with Kavango Resources #KAV and the drilling results from the Molopo Farms project. The Haneti Nickel JV with Katoro Gold #KAT in Tanzania is covered, before we move to Canada and discuss the new Hemlo Gold belt projects and progress at Silver Peak. Paul covers the three separate project spinoffs and potential IPOs (RRAL, Kanye and Silver Peak), and explains how this will help POW to build working capital and ultimately lead to shareholder distributions.

Paul discusses the strong funding position enjoyed by Power Metal, and explains how being a major shareholder in the company is his key motivation.

Power Metal Resources #POW CEO Paul Johnson provides a quickfire three question update

Power Metal Resources #POW CEO Paul Johnson provides a quickfire three question update about the company ahead of the main interview released later today

Tertiary Minerals #TYM reports encouraging analytical results from the Lucky Copper Project

Tertiary Minerals plc is pleased to announce encouraging analytical results from its maiden drill hole at the Lucky Copper Project in Nevada, USA.

Highlights:

  • Hole 21TLRC001 was drilled to a depth of 108.24m.
  • Two magnetic gossan zones intersected containing low-grade copper (+/-gold) mineralisation:
    • 57m grading 0.12% copper and 0.12 g/t gold from 15.24m down hole.
    • 05m grading 0.40% copper from 33.53m down hole.
  • Highly anomalous copper (average 325ppm copper) over 24.38m from 83.82m to the base of hole.
  • Geological evaluation of drill samples ongoing.
  • Follow up magnetic survey planned.

Commenting today, Executive Chairman Patrick Cheetham said:

“This maiden drill hole has confirmed the occurrence of copper mineralisation in magnetic gossan zones at shallow depth. The geological setting of the mineralisation is not yet defined but trace element geochemistry suggests the gossans are developed from skarn-style mineralisation,  a class of deposit containing a number of large economic copper deposits in Nevada and the adjoining States. Detailed evaluation of the drill samples is underway to define the host rock stratigraphy and a magnetic survey is planned to define additional drill targets.”

For more information please contact:

Tertiary Minerals plc:
Patrick Cheetham, Executive Chairman +44 (0) 1625 838 679
SP Angel Corporate Finance LLP

Nominated Adviser and Broker

Richard Morrison +44 (0) 203 470 0470
Caroline Rowe
Peterhouse Capital Limited

Joint Broker

Lucy Williams + 44 (0) 207 469 0930
Duncan Vasey

 

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement. 

Detailed information

The Lucky Copper Project was staked by the Company in 2020 and is located on the east side of the old Aurum mining centre, 96km northeast of the major porphyry copper mining town of Ely in north-east Nevada.

The project is targeting disseminated copper mineralisation first identified during exploration carried out in the 1950s.

The Company’s drill hole 21TLRC001 was drilled vertically using the reverse circulation percussion method and samples were collected at 5ft (1.52m) intervals down hole.

The holes passed through 6.1m of overburden and a mixed sequence of sedimentary rocks down to the end of the hole at 108.20m.

Two zones of gossan were intersected at 15.24m and 33.53m down hole as shown in the table below. In addition, a wide zone of anomalous copper was intersected from 83.82m to the base of hole at 108.20m. Extensive faulting was encountered from 38m down to the bottom of the hole. The strike and dip of the mineralisation intersected is not yet known.

Table 1 Drilling results: Hole 21TLRC001

Down Hole From to      
interval From to Copper Gold Silver
m m m % g/t g/t
4.57 15.24 19.81 0.12 0.12 3.23
3.05 33.53 36.58 0.40 0.00 8.75
24.38 83.82 108.20 0.03 0.00 0.91

 

Gossans are typically produced by surface and near surface weathering of metallic deposits and any contained copper sulphide minerals originally contained in such deposits are oxidised and the contained copper can be either leached out or enriched. Consequently, the grade of the mineralisation in gossans is not necessarily a reliable indicator of the grade of the mineralisation from which it is derived.

A nearby percussion hole drilled in 1951 was reported to have intersected a 20.4m cumulative thickness of mineralisation which assayed 0.65% copper to the bottom of the hole at 77.7m depth. That hole also ended in mineralisation .

These early drill results are considered to be encouraging. The gossan zones contain magnetic material which may be remnant magnetic sulphides such a pyrrhotite, or magnetic oxide minerals such as  magnetite or maghemite, and it is likely that the original mineralisation will be magnetic and responsive to magnetic surveying. A drone magnetic survey is therefore planned to define additional drill targets.

A programme of petrological work is also planned to better define the host rock lithologies and the geological setting of this mineralisation and assist further exploration targeting.

Notes:

  1. All drill samples were submitted to Paragon Geochemical, Reno for sample preparation and analysis. Analysis was performed using method 34MA OES, a 34 element multi-acid ICP/OES and aqua regia ICP/MS package (Hg), and Au AA30, 30g fire assay with aqua regia digest and AAS finish. Quality control samples were inserted into the sample run by the Company and standards and blanks were run by the analytical laboratory for internal QA/QC purposes
  1. The information in this release has been compiled and reviewed by Mr. Patrick Cheetham (MIMMM, MAusIMM) who is a qualified person for the purposes of the AIM Note for Mining and Oil & Gas Companies. Mr. Cheetham is a Member of the Institute of Materials, Minerals & Mining and also a member of the Australasian Institute of Mining & Metallurgy. 
  1. This news release may contain certain statements and expressions of belief, expectation or opinion which are forward looking statements, and which relate, inter alia, to the Company’s proposed strategy, plans and objectives or to the expectations or intentions of the Company’s directors. Such forward-looking statements involve known and unknown risks, uncertainties, and other important factors beyond the control of the Company that could cause the actual performance or achievements of the Company to be materially different from such forward-looking statements. Accordingly, you should not rely on any forward-looking statements and save as required by the AIM Rules for Companies or by law, the Company does not accept any obligation to disseminate any updates or revisions to such forward-looking statements.

Note to Editors: 

Tertiary Minerals plc (ticker symbol ‘TYM’) is an AIM-traded mineral exploration and development company building a multi-commodity project portfolio.

Cadence Minerals and the next Commodity Supercycle

There is little doubt that historians will conclude that the global impact of COVID-19 represents the worst crisis since the Great Depression. The pandemic is leaving deep and enduring scars on the global economy, taxing health and medical services to the limit, depriving children of education, while decimating sectors of commerce and industry and in particular leisure and travel.

But history has shown on numerous occasions that the indomitable human spirit has a remarkable capacity for survival and evolution amidst existential crises. As areas such as traditional High St retail and seem to be drawing to a close, sectors such as commodities and mining are booming thanks to a near perfect storm created in part by the COVID crisis.

In October 2020, the IMF stated that the total bill for the global pandemic would reach some $28tn (£21.5tn) in lost output. The rapid intervention by global Governments with rate cuts, looser monetary policies and fiscal stimulus have certainly avoided a financial catastrophe, but at the same time these actions have effectively weakened fiat currencies and increased demand for commodities.

Historically the consequences of such events invariably see a strong recovery in commodity markets. This factor was clearly in evidence as 2020 progressed, and as the COVID noose tightened, prices of commodities such as Iron Ore, Copper and Nickel, along with precious metals including Gold and Silver, all increased in value.

As a consequence, as 2020 progressed prices of commodities such as Iron Ore, Copper and Nickel, along with precious metals including Gold and Silver, all increased in value.

In the wake of the sharp economic contractions in 2020, the IMF forecast that only China was expected to emerge with any economic growth during the year. 2021 is set to be a different story however, and with the vaccine rollout accelerating globally, there are expectations for sharp recoveries across most of the leading economies. Added to this, the new $1.9tn stimulus package in the US from the Biden administration will see heavy investment into ageing US infrastructure. These factors should ensure sustained demand and pricing for iron ore and base metals.

There is also the revolution taking place within the automotive industry to consider. The move towards EV’s is accelerating rapidly, with a plethora of commitments from key automotive manufacturers such as Ford, Volvo, BMW and Jaguar to switch to electric only production in the next few years. This move of course sounds the death knell for the internal combustion engine, but at the same time is driving the cost of battery metals and component commodities such as lithium, nickel, cobalt and graphite

The net effect is that mining, specific commodities and minerals, along with the sector’s nebulous support service industries are undergoing a significant global resurgence. Projects considered uneconomical to develop, and that have remained dormant for years are returning to life, newly financed and fast tracked thanks to the array of modern desktop technologies, data and modelling tools.

Iron Ore

In a note published last December, Goldman Sachs outlined their expectations for another substantial deficit next year (27Mt, GSe), supported by a combination of gradually decelerating China steel demand growth, sharply re-accelerating demand for Western steel and tepid supply growth. GS added that the weighting of the 2021 deficit to the front half of the year points to fundamental support for a sustained price path higher over Q1 and Q2, revising near-term targets for the benchmark 62% iron ore price to 3M $140/t and 6M $150/t.

These numbers of course imply material upside longer term, and GS have also upgraded full year forecasts for 2021 to $120/t ($90/t previously) and for 2022 to $95/t ($75/t previously).

GS sees four core drivers supporting this bullish view:

  1. Chinese steel production has remained strong & production in 2021 remains supported by a healthy infrastructure and property project pipeline, alongside a resurgence in China’s manufacturing capex cycle and steel exports.
  2. With construction and heavy industry remaining relatively less affected by second-wave lockdowns, Western steel demand is also recovering ahead of expectations. Significant regional price strength in the US and Europe is likely to spur further blast furnace restarts (and hence iron demand) after an aggressive suspensions phase in 2020 contributed to the current steel supply shortfalls as demand recovers.
  3. Iron ore supply growth is likely to stagnate in 2021. The limited growth that exists next year is concentrated with Vale Brazil operations, which is why their recent substantive downgrade to production guidance has had such an outsized positive impact on price.
  4. Chinese mill iron ore inventories remain low, raising the prospect of restocking bursts through the year.

For Cadence Minerals, this bullish outlook for iron ore puts two very firm ticks in the box, firstly for what is widely regarded as the company’s flagship Amapa Iron Ore project in Brazil, and secondly the investment in ASX and TSX listed Macarthur Minerals, with whom Amapa shares numerous infrastructural and evolutionary similarities.

Amapa Project

Bringing a project the size and scale of Amapa back to life has as expected proved to be a complex and challenging process. Nonetheless, DEV Mineração, Cadence and Indo Sino Pty Ltd are reaching a legal settlement with the project creditors, and with the ruling in February by the Commercial Court of São Paulo that port operations and the shipment of iron ore stockpiles can begin, the company is set to take the first practical step towards bringing the project back to life, which will in turn bring benefits to the Amapa region in terms of employment, health and education.

Once the creditor settlement agreement has been signed, an initial $2.5m investment will be released from escrow, meaning that the Pedra Branca Alliance (Cadence & Indo Sino JV co) will own 99.9% of DEV, the owner of the entire Amapa mining and processing assets,. At this point Cadence will proportionately own 20% of Amapa. The next step will involve a further $3.5m investment following the granting of the necessary environmental licenses required to operate the mine, which will see Cadence move to a 27% stake, with an option to increase to 49% once project financing has been raised to complete recommissioning and commence production.

Last November Cadence completed an updated Mineral Resource Estimate for Amapa, which increased the 2012 Anglo American MRE estimate by 21% to 176.7 million tonnes (“Mt”) grading 39.7% Fe in the Indicated category. With a production capacity of 5.3Mt per annum, the survey also noted there was significant potential to increase the resource base after the completion of metallurgical and optimisation studies.

Lake Giles Iron Project

Cadence also has a stake (c1%) in ASX and TSX listed Macarthur Minerals, owner of the Lake Giles Iron Project near Kalgoorlie in Western Australia. The Lake Giles project consists of the Moonshine magnetite deposit and the Ularring hematite deposit, which together have an indicated Mineral Resource Estimate of 218Mt grading 27.5% Fe in the Indicated category.

Lake Giles and Amapa share many similarities in regard to facilities and production routes, and with the Feasibility Study already underway, Lake Giles has a 3.4 Mt per annum production target with potential to scale-up operations.

Lithium

A recent paper published by commodities expert Fastmarkets FB noted that global lithium supply was developing at accelerating pace due to strong and continually growing demand. In particular the demand for compounds used in lithium-ion (li-ion) batteries such as lithium carbonate and lithium hydroxide has prompted lithium producers to expand total production while diversifying their investments in different lithium operations to ramp up production and diminish asset risk.

Despite an effective over supply in 2018-2019 that saw a price moratorium and a 50% fall in the price of battery-grade lithium carbonate in China, the subsequent seismic shift to bring forward EV production and commitments from major automotive manufacturers around the world saw the price of Lithium in China surge to an 18 month high of $9450 per tonne in January 2021.

The Fastmarkets’ research team expects global lithium demand to grow to at least 1.1 million tonnes per year of lithium-carbonate equivalent (LCE) by 2025 from an expected 300,000 tonnes of LCE in 2019, with Global lithium producers set to boost output year on year to maintain pace with growing demand. Despite this, as can be seen from the table above the numbers still don’t add up, with massive shortfalls projected by Benchmark Intelligence in lithium and other key constituent metals by 2030.

Over 2018, China emerged as the world’s leading lithium-processing hub with the rapid growth of companies like Ganfeng Lithium, which specialise in converting lithium concentrate from hard rock.

Cinovec – European Metals Holdings

The Cinovec project is the largest hard rock lithium resource in Europe and 4th largest non-brine resource in the world. Perfectly located to become the central lithium supply hub for the European EV industry, Cadence owns a 12% stake in AIM listed European Metals Holdings (EMH), which in turn owns 49% of the Cinovec project, (51% owned by utilities giant CEZ Group).

Cinovec is a potential low-cost producer at the bottom of the cost curve, and will sustainably supply 25,267 tpa lithium hydroxide or 22,500 tpa lithium carbonate into the European battery market.

Sonora Lithium Project

Cadence is a 30% joint venture partner with Bacanora Lithium (BCN) on the Fleur Lease (Mexalit & Megalit) at the Sonora Lithium Project in Mexico. A completed feasibility study values Sonora Mexico at US$1.25bn NPV, with some of the lowest production costs at $4,000/t in the industry.

AIM listed Bacanora is focused on building a 35,000 tpa lithium carbonate operation at Sonora with 50% owner and take off partner Ganfeng Lithium.

Australia Hard Rock Lithium Projects

Cadence owns three dormant hard rock lithium assets in Australia. These are Picasso (Western Australia – WA), Litchfield (Northern Territories – NT) and Alcoota (NT) all of which are in regions with proven lithium mineralisation and supportive mining infrastructure.

The Litchfield project, located near Darwin (NT), has an exploration license granted and is contiguous to Core Lithium’s (ASX: CXO) territory. Core has a JORC compliant mineral resource of 8.55Mt @ 1.33% Li2O for its Finnis project (for all six deposits).

Yangibana Rare Earths Project

Operated by ASX listed Hastings Technology Metals, Yangibana is a substantial Rare Earths deposit near Gascoyne in Western Australia. Drilling and sampling have revealed high concentrations of Neodymium and Praseodymium (NdPr), essential components in permanent magnets used in electric vehicles.

Cadence is a 30% joint venture partner with Hastings on part of the Yangibana Rare Earth Element Project. Probable Ore Reserves within the tenements held by Cadence are just over 2m tonnes with TREO of 1.66%.

The current mine plan anticipates production to start from the joint venture areas (Yangibana) in year 6.

A Key Role?

Around the world today there are countless mining exploration companies, commodity investors and mine operators with projects offering scope for development and potential for investment. The challenge with any project of this nature is matching the opportunity with the macro backdrop, projected demand for the commodity alongside capex vs. return, production routes, shipping and completion of cycle to bring the product to the customer.

Rarely if ever has the industry been presented with so compelling a backdrop for the commodity market as a whole. The significant global resurgence seen in the mining sector at present given is entirely sustainable given the level of asset purchases and spending by Governments to rejuvenate damaged economies and the inevitable resulting erosion in fiat currency value.

As economies emerge from the havoc wrought by the COVID virus and restrictions on spending are lifted, it is clear that in many cases demand will outstrip availability. This will apply almost without exception across the commodity spectrum – iron ore for steel to fund reconstruction – lithium, nickel, cobalt, graphite and rare earths to address the burgeoning demand for lithium-ion battery production.

There is no doubt that the recovering global economy is embarking on the next great Commodity Supercycle. Many mining groups and commodity project investors will benefit from this phenomenon by owning the right projects, at the right stage of evolution at the right time. On the evidence available today, Cadence Minerals is certainly one of them.

Tertiary Minerals #TYM – Lucky Copper Project Drilling

Tertiary Minerals plc is pleased to advise that drilling is scheduled to start today on the Company’s Lucky Copper Project in Nevada, USA.

The target is a disseminated sediment hosted, intrusion-related copper deposit and details of the project and the planned drill hole can be found in the Company’s announcements of 29 May 2020 and 11 January 2021.

Results of the drilling will be advised once analytical results become available.

Commenting today, Executive Chairman Patrick Cheetham said:

“We have decided to drill at an early stage on this project as historical exploration results present an immediate target with reported copper mineralisation that needs to be confirmed and put into a better geological context.   We look forward to reporting results as they become available.” 

For more information please contact:

Tertiary Minerals plc:
Patrick Cheetham, Executive Chairman +44 (0) 1625 838 679
SP Angel Corporate Finance LLP

Nominated Adviser and Broker

Richard Morrison +44 (0) 203 470 0470
Caroline Rowe
Peterhouse Capital Limited

Joint Broker

Lucy Williams + 44 (0) 207 469 0930
Duncan Vasey

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

Note: 

The news release may contain certain statements and expressions of belief, expectation or opinion which are forward looking statements, and which relate, inter alia, to the Company’s proposed strategy, plans and objectives or to the expectations or intentions of the Company’s directors. Such forward-looking statements involve known and unknown risks, uncertainties, and other important factors beyond the control of the Company that could cause the actual performance or achievements of the Company to be materially different from such forward-looking statements. Accordingly, you should not rely on any forward-looking statements and save as required by the AIM Rules for Companies or by law, the Company does not accept any obligation to disseminate any updates or revisions to such forward-looking statements.

Note to Editors:

Tertiary Minerals plc (ticker symbol ‘TYM’) is an AIM-traded mineral exploration and development company building a multi-commodity project portfolio.

Power Metal Resources #POW – Discovering Large Scale Metal Deposits Around The World

Brand CEO Alan Green talks to Power Metal Resources #POW CEO Paul Johnson. Paul lays out the medium and long term strategy. for the company, before running through each project, including the Red Rock #RRR Australasia RRAL JV, Paterson Province Australia, the Botswana KCB and Ditau joint ventures with Kavango Resources #KAV, & Molopo Farms project, the Cameroon Cobalt project, the Canada Silver Peak and new Hemlo Gold belt projects, the DRC Kisinka Copper project, the Haneti Nickel JV with Katoro Gold #KAT in Tanzania and the Alamo Gold project in the USA. Paul discusses the strong funding position enjoyed by Power Metal, and explains how being a major shareholder in the company is his key motivation. We end with some key takeaway points for investors to consider.

Cadence Minerals Plc – Auroch Minerals (ASX: AOU) Identifies Potential Targets at Torrens East Copper Project.

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the update published today by Auroch Minerals (ASX:AOU) ‘Auroch’ on its recently-acquired Torrens East Copper Project (Torrens East). Exploration Licence Applications ELA00159 and ELA00163 comprise 1,622km2, and are considered by Auroch to be highly prospective for IOCG (iron oxide – copper – gold) mineralisation.

An initial review of the South Australian Government’s Mineral Resources aeromagnetic and gravity data, together with available geological and drilling data over the Torrens East licence area has identified a likely eastern extension of the Torrens JV gravity anomaly, which continues into Auroch’s application licence.

Highlights:

  • Auroch has completed a review of historical geophysical, geological and drilling data for its Torrens East Copper Project (Torrens East), identifying potential target areas for follow-up exploration.
  • The review identified on Auroch’s exploration tenure a likely eastern extension of the large Torrens JV (70% Aeris Resources Ltd; 30% Argonaut Resources NL) gravity anomaly.
  • Torrens East has the right geological address with peer exploration encountering IOCG pathfinder minerals, copper sulphides and alteration halos. Recent exploration in the Eastern Gawler Craton includes:
    • Torrens JV commenced a $20m drilling programme 6-10km to the west of Torrens East.
    • BHP Group’s (BHP) Oak Dam West prospect returned best drilling intercepts: 425.7m @ 3.04% Cu and 0.59g/t Au, including 180m @ 6.07% Cu and 0.92g/t Au.
    • Cohiba Minerals announced plans for a drilling programme at its “Horse Well” project 2km from BHP’s Oak Dam West prospect.
  • Auroch will continue to advance the Torrens East Project and will provide updates in the coming months

The Torrens East project is located along the eastern margin of the Gawler Craton in South Australia, in a similar regional setting to the Olympic Dam and Carrapateena deposits around the Torrens Hinge Zone, a continent-scale zone of crustal weakness with the potential to act as a conduit to release mineralising fluids from the Earth’s mantle. The Torrens East Copper Project is 1,622km2 of ground considered highly prospective for Iron Oxide Copper–Gold (IOCG) mineralisation. The large exploration licence applications (ELAs) are situated adjacent to the Torrens JV (70% Aeris Resources Ltd; 30% Argonaut Resources NL) approximately 50km from BHP’s recently-announced drilling in the Olympic Dam copper-gold province, host to the world-class Olympic Dam (BHP Group Ltd) and Carrapateena (Oz Minerals Ltd) IOCG deposits.

Cadence currently owns 6.6% of the equity in Auroch Minerals, which is an exploration company targeting principally zinc, cobalt and lithium.

The full release can be found at: https://www.investi.com.au/api/announcements/aou/8adebe01-e6f.pdf

Cadence Minerals CEO Kiran Morzaria commented: “Aidan Platel and his team continue to build the Auroch investment case. As stated in the announcement, recent peer exploration in the region has provided a blueprint for Auroch’s exploration plans, which all contribute towards refining possible future drill targets at Torrens East. We look forward to further developments”

– Ends –

For further information:

Cadence Minerals plc +44 (0) 207 440 0647
Andrew Suckling  
Kiran Morzaria  
   
WH Ireland Limited (NOMAD & Broker) +44 (0) 207 220 1666
James Joyce  
James Sinclair-Ford  
   
Hannam & Partners LLP (Joint Broker) +44 (0) 207 907 8500
Neil Passmore  
Giles Fitzpatrick  
   
Novum Securities Limited (Joint Broker) +44 (0) 207 399 9400
Jon Belliss

 

Qualified Person

Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.

 

Forward-Looking Statements:

Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identified by their use of terms and phrases such as ”believe” ”could” “should” ”envisage” ”estimate” ”intend” ”may” ”plan” ”will” or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors’ current expectations and assumptions regarding the Company’s future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-looking statements reflect the Directors’ current beliefs and assumptions and are based on information currently available to the Directors.  Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward-looking statements.

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