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The rise and fall – or should we say, fall and rise – of the gold market in 2021

by Hannah Howes

Gold investment demand fell early this year, largely attributed to outflows in gold-backed ETFs as growing expectations of higher interest rates influenced investor attitude, according to the most recent World Gold Council (WGC) report (Gold outlook for 2021 positive, despite uncertainty – World Gold Council (miningweekly.com). When analysing this trend more closely, it has been noted that investment demand actually saw positive growth in the retail market with ETF outflows negatively impacting the overall picture. The WGC market intelligence manager Krishan Gopaul notes that the “The overall picture of investment falling in the quarter really hides two different stories – we see the ETF outflows but there is still the more positive growth story on the bar and coin side”.There has also been an increase in consumer demand which has been further enhanced by low gold prices, one of the major buyers of such commodities being China and other emerging markets. The catalysed global economic recovery, bolstered by swift vaccination efforts, has also boosted consumer confidence in the technology sector raising demand by 11% year on year.

The cyclical elements of gold demand have been heightened by the 10% decrease in gold price in the first quarter, in combination with the global economic recovery in response to positive Covid-19 outlooks. Senior Market Analyst Louise Street at WGC has observed that “having seen investors take shelter in gold from the initial impacts of Covid-19, the first quarter saw a sell-off in the gold price as confidence in economic recovery grew and US interest rates rose sharply,”adding that, notwithstanding this, gold holds a strong position in the most well-balanced portfolios. This is particularly so given the repeatedly reported fears of inflation. In previous years where records show inflation rates of over 3%, the price of gold increased 15% on average (https://www.gold.org/goldhub/research/outlook-2021). When looking ahead to the next few less-tumultuous years, Louise sees “reasons to be optimistic about the gold market”due to the resilience of the markets main drivers, low interest rates and increasing yields.

History ready to repeat itself?

The only certain thing to come from the past year is uncertainty in abundance. That said, when it comes to gold mining, we can remain confident in the fact that the Victoria goldfields, southern Australia, continues to stand as a reputable and reliable source of precious metals. This follows decades of mining in the region, in the wake of a glimmering spotlight launched by the 19thcentury gold rush. Testament to this fact is the nugget of gold rested assertively on my mantel, panned by myself during a trip to the Sovereign Hill attraction at the Ballarat Gold Mine.

AIM listed ECR Minerals (AIM: ECR) is a company on the brink of a gold fest from current drilling in the territory, focused on delivering the next multi-million ounce gold resource. ECR outright owns the Bailieston and Creswick projects located in Central Victoria, Australia, and with an operational HQ at Bendigo, is able to process and fast track core samples and assay results.

As well as holding financial interests in the Avoca, Moormbool and Timor projects, following the sale of those licenses to TSX-V listed Fosterville South Exploration Ltd for up to £1.3 million. Further retaining a 25% interest in the Danglay epithermal gold project located in Northern Philippines and a net smelter royalty agreement from the sale of the SLM gold project in Argentina.

Creswick

The Dimocks Main Shale, a geological feature believed to be have great gold potential, is home to Creswick and extends some 15km from the aforementioned mining centre of Ballarat.

Drill sites for the current programme are 2.2km south from those used in the previous drill programme in 2019, individual samples of which returned assays as high as 80.97 g/t gold over one metre. A study by pre-eminent consulting geochemist Dr Dennis Arne, whose experience includes extensive consultancy at the exceedingly successful Fosterville gold mine in Central Victoria, emphasized the significant gold exploration potential at Creswick, and ‘nuggety gold mineralisation’.

Bailieston

Also located in the sought-after central Victoria region, Bailieston is not far from the renowned Fosterville mine owned by Kirkland Lake Gold. Bailieston is base to ongoing drilling in the HR3 area, undertaken using ECR’s own diamond drill rig, with prospects also including Cherry Tree, Red Moon and Yellow Moon. Assay results have been announced for four holes in the HR3 area, with a further four holes awaiting final geological interpretation. What has been reported is that BH3DD005 holes 6 and 7 indicate the hypothesized central anticline does exist and represents a favourable target for gold mineralisation. Quality samples have been recorded from drilling by ECR at the Blue Moon prospect in 2019, including a 17.8g/t sample from a 2 metre interval. Making Blue Moon a noteworthy new discovery.

Through previously selling three Victoria licences (Avoca, Moormbool and Timor gold exploration projects) for cash and royalties to TSX-V listed Fosterville South Exploration Ltd, and a number of warrant exercises, the company is fully funded to continue drilling at its 100% owned Creswick and Bailieston projects through to into 2022. This strong cash position has given the company desirable footing moving forward, enabling them to push for the launch of further drilling programmes across existing property and acquire new opportunities.

In the recent Proactive Investors interview, ECR Minerals CEO Craig Brown spoke to Andrew Scott, highlighting the recent news of application for three new licenses in north-east Queensland, Australia. These permits are to cover a total of 900sq km of highly prospective ground within the Lolworth Range. Historical mining in the region totals 24.4mil ounces, equivalent to $48 billion worth of gold. Despite this, the area is relatively unexplored, offering “huge potential” according to Craig. As well as emphasising that he expects the gold price to only gain strength, with the precious metal being the hedge against inflation concerns.

Despite the recent retreat in share price, dropping from 4.25p in January, to 1.89p in May 2021, ECR’s strong cash position attributed to the aforementioned license sales and warrant exercises puts the company in an enviable industry spot. This, in combination with the fact the company owns a diamond drilling rig, currently operational at Bailieston while a contractor’s rig is active at Creswick, means ECR Minerals is set for a prosperous 2021/22 as demand for gold remains bullish. Making the current share price a bargain investment.

Tertiary Minerals #TYM – Wide Silver Zone Discovered at Pyramid Gold-Silver Project

Further to its announcement on 10 March 2021, Tertiary Minerals plc is pleased to report that assay results from a recent trenching programme show a thick zone of open-ended silver mineralisation in Trench No.1 at the North Ruth soil anomaly on the Pyramid Gold-Silver Project in Nevada, USA.

Highlights:

  • 6 trenches completed for a combined length of 360m of trenching.
  • Trench No.1 through northern portion of the North Ruth soil anomaly cut 45.72m grading 61g/t silver (1.78 ounces/ton)
    • Includes 14m grading 146g/t silver (4.26 ounces/ton).
  • Silver mineralisation continuing to end of Trench No. 1 – open ended.
  • Trench No.2, 460m along strike, includes 3m grading 260g/t Silver (7.58 ounces/ton)
  • Narrower zones of lower grade mineralisation found in 3 other trenches on the Western Line soil anomaly.
  • Infill soil sample results awaited for southern part of the project

Commenting today, Executive Chairman Patrick Cheetham said: “This is a very exciting discovery, with the results today culminating from our systematic exploration undertaken over the past 12 months. It is now clear that the North Ruth soil anomaly reflects a significant width of silver mineralisation in situ and at surface that includes both a high-grade zone and a bulk tonnage target. The mineralisation in Trench No.1 is not closed off,and while the true width of this zone remains to be determined,we will move as quickly as possible to carry out further definition and drill-testing. Ilook forward to reporting back to you with the results of the additional soil-sampling on the public lands section of the property.”

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

Pyramid Gold-Silver Project

Background

The Pyramid Gold-Silver Project is located in north-central Nevada, USA and is targeting epithermal gold-silver mineralisation in the prolific past producing Walker Lane Mineral Belt.

On 11 January 2021, the Company announced results from a soil sampling programme carried out to confirm and determine the extent of an open-ended gold and multi-element soil anomaly originally defined in the 1980s by Battle Mountain Gold Company. A number of significant new gold and silver-in-soil anomalies were identified and named the North Ruth, Western Line and Western Splay anomalies.

In late January 2021, follow up rock chip sampling highlighted the potential for in situ mineralisation and in particular at the 800m long North Ruth soil anomaly where grab sampling identified areas of silicified and brecciated Tertiary-age volcanics within the anomaly with one sample of spoil from an old shaft containing 314 g/t silver (9.16 ounces/ton) amongst eight samples averaging 91 g/t silver (2.67 ounces/ton) and 0.26 g/t gold.

Trenching Programme

Follow-up trenching has so far been restricted to the North Ruth and Western Line soil anomalies where  they fall within the private land portion of the Pyramid Property under lease to the Company. Six trenches were dug in April 2021 to expose bedrock over continuous sections of these two anomalies .

Two trenches, Nos. I and 2, were located over the north and south ends of the North Ruth anomaly respectively. Assay results from Trench No.1 revealed a 45.7m continuous width of mineralisation grading 61ppm silver (1.78 ounces/ton) and 0.09ppm gold starting 42.67m from the east end of the trench and continuing up to the western end where it ended in mineralisation.

This 45m section contained two separate higher-grade zones of 9.14m grading 146 g/t silver (4.27 ounces/ton) and 0.10g/t gold and 3.05m grading 99 g/t silver (2.88 ounces/ton) and 0.15 g/t gold. The silver bearing zone is flanked on the eastern side by a 9.15m wide zone with higher gold values averaging 0.54 g/t gold and 11 g./t silver.

The next nearest trench, Trench No.2, some 460m along strike, cut 3.05 m grading 260g/t silver (7.58 ounces/ton) and 0.27g/t gold. ,

A summary of significant results is shown in the table below.

Four other trenches were cut at spacings of between 95m to 250m over a 470m strike length of the Western Line soil anomaly and cut through a number of narrow zones of low-grade gold and silver mineralisation as shown in the table below. Further work on the Western Line soil anomaly, at least within the private land portions of the property, is not currently a priority.

The silver mineralisation in Trench No.1 occurs within a quart latite tuff showing varying levels of epithermal argillic alteration and silicification. Additional infill soils sampling has been completed on the south end of the Project Area, on public lands secured by mining claims, and results are awaited.

The Company will move to drill test the North Ruth silver mineralisation as soon as possible and will consider additional trenching once the additional soil sample results become available.

Table of significant1trench result.

   Thickness Silver Gold From To
  (m) (g/t) (oz/ton) (g/t) (m) (m)
Trench No.1 9.15 11 0.32 0.54 33.53 42.67
and 45.75 61 1.78 0.09 42.67 88.39
inlcudes 3.05 99 2.88 0.15 50.60 53.64
inlcudes 9.15 146 4.27 0.10 56.69 65.84
Trench No.2 3.05 260 7.58 0.27 15.24 18.29
and 3.05 49 1.44 0.06 36.58 39.62
Trench No.3 7.01 3 0.09 0.26 15.54 22.56
Trench No.4 9.14 9 0.27 0.28 24.38 33.53
Trench No.5 4.88 2 0.07 0.26 8.84 13.72

 

A map illustrating the features described in this news release will be available on the Company website at: https://www.tertiaryminerals.com/pyramid-gold-project-nevada-usa 

Notes:

  1. Significant is defined as a minimum 2m width grading a minimum of 15g/t silver or 0.25g/t gold. Narrower and/or lower grade material may be included where they are internal to the reported intervals. Reported widths are widths along a trench and may not represent true widths of mineralisation if the mineralisation is dipping and/or the ground surface is not horizontal.
  1. Units:

Rock samples reported in g/t = grammes/tonne

1 g/t = 0.029167 ounce/ton (i.e. troy ounces/US ton)

1ppm = 1 g/tonne

1 (Troy) ounce =31.105g 

  1. Trench samples were collected by consulting Geologist Ivan Johnson as continuous chip samples over a maximum of 10 feet per sample. Samples were transported under chain of custody to Paragon Geochemical facilities in Reno, Nevada for sample preparation. Samples were crushed to 85% passing 200mesh using method PREP-RMB. Gold was analysed by method Au-AA30 which comprises 30g fire assay with aqua regia digest/AAS finish. Multielement analysis (including Ag) was performed using method 33‑MA-OES which comprised a 4-acid digest with ICP/OES finish. Ag overrange analysis was performed using method Ag-Gr50, a 30g fire assay with gravimetric finish. Paragon carries out duplicate and standard materials analysis as part of its internal QA/QC procedures. Grades reported above are weighted average grades of samples taken over varying widths from within the reported intervals.
  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. 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 Mineralsplc (ticker symbol ‘TYM’) is an AIM-traded mineral exploration and development company building a multi-commodity project portfolio

Power Metal Resources #POW: Agreement – Golconda Gold Property Nevada USA

Agreement – Golconda Gold Property Nevada USA

Company has Signed an Assignment and Assumption Agreement Allowing it to Earn a 100% Interest in the Golconda Summit Gold Property Located in Nevada, USA

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce the execution of an Assignment and Assumption Agreement (the “Agreement”) between its wholly-owned subsidiary Golden Metal Resources Ltd. (“Golden Metal”) and GR Silver Mining Ltd. (“GR Silver”).

The Agreement gives Golden Metal an option to earn-in to 100% of the Golconda Summit Gold Property (“Golconda Summit” or the “Property”) located in central Nevada, USA.

Paul Johnson, Chief Executive Officer of Power Metal Resources, commented:

“We recently formed Golden Metal to act as a holding company for new acquisitions of precious and base metal projects located in North America and I am pleased to announce this first transaction within the mining friendly state of  Nevada.

The option agreement on the Golconda Summit Gold Property gives the Company exposure to an exciting carlin-type gold project located in the highly gold endowed Great Basin district at the confluence of the prolific Battle Mountain-Eureka and Getchell gold trends.                                                                           

I look forward to updating the market with further information on the Property  in the coming weeks.”

Vendor and Property Information

GR Silver Mining Ltd is a Vancouver based publicly traded (TSX-V:GRSL) junior mining company focused on advanced stage silver-gold assets in Mexico.

GR Silver has held an option agreement since 11 August 2017, to earn-in to 100% of the Golconda Summit Gold Property from the underlying vendor Eureka Resources Conversion LLC (“Eureka Resources”), a private Nevada based company.

Golconda Summit is an early-stage gold exploration project comprising 44 current Bureau of Land Management (“BLM”) Lode Claims held in the name of Eureka Resources.

The Property is located approximately 15km east of to the town of Winnemucca, at the confluence of the prolific Battle Mountain-Eureka Trend and Getchell Trends and within Nevada’s Great Basin metallogenic province which is one of only six global gold belts hosting gold endowments of +200Moz. The Property is approximately:

  • 35km southwest of the Nevada Gold Mines LLC (“Nevada Gold” a Barrick Gold Corporation/Newmont Corporation joint venture) Turquoise Ridge Complex underground and open-pit mines which have Total 43-101 compliant Resources (Measured & Indicated) of 130Mt @ 4.30g/t Au (for 18Moz Au) inclusive of Total Reserves (Proven & Probable) of 83Mt @ 5.02g/t Au (for 13Moz Au) 1;
  • 20km northwest of Nevada Gold’s Phoenix Operation Lone Tree open-pit mine which reportedly produced 4.2Moz Au at an average grade of 2.06g/t Au up until its closure in 2006 2; and
  • 25km northwest of SSR Mining Inc.’s Marigold open-pit mine with current Total 43-101 compliant Resources (Measured & Indicated) of 5.11Moz Au  (341Mt @ 0.47g/t Au) 3.

Previous exploration work on the Property by Nerco Mineral Company in 1989 encountered significant gold mineralisation located within upper plate Havallah Sequence rocks including trench assay results of 7.6m @ 24.0g/t Au and 15.2m @ 8.6g/t Au, as well as shallow drilling results of 10.7m @ 3.9g/t Au.4

The Property is considered prospective for the identification of additional near-surface gold mineralisation within Havallah Sequence rocks as well as for Carlin-type replacement style gold mineralisation within lower plate Edna Mountain Formation and Antler Peak Limestone units located below the Golconda thrust fault.

Assignment and Assumption Agreement

  • The Agreement signed with GR Silver allows Golden Metal to earn a 100% interest in the Golconda Summit Gold Property located in Humboldt County, Nevada, USA.
  • The Agreement signing fee is to be satisfied through a cash payment of US$60,000 (circa £42,495) to GR Silver, to be paid by Power Metal from exisiting cash resources.
  • Golden Metal will be assigned the underlying option agreement (“Underlying Option”) signed on 11 August 2017, between GR Silver and the underlying vendor Eureka Resources Conversion LLC.

Underlying Option Agreement

  • The Underlying Option agreement allowed GR Silver to earn a 100% undivided interest in the Golconda Summit Gold Property upon satisfying either the Staged Payments Option or the Accelerated Payment Option, both outlined below  (Golden Metal will assume the terms of this agreement unchanged):

Staged Payments Option

–      Ten thousand (US$10,000) dollars due and payable on the execution of the Underlying Option (Paid previously by GR Silver);

–      A further fifteen thousand (US$15,000) dollars due and payable on or before the second (2nd) anniversary of the effective date (Paid previously by GR Silver);

–      A further fifteen thousand (US$15,000) dollars due and payable on or before the third (3rd) anniversary of the effective date (Paid previously by GR Silver);

–      A further twenty thousand (US$20,000) dollars due and payable on or before the fourth (4th) anniversary of the effective date (by 11 August 2021);

–      A further twenty-five thousand (US$25,000) dollars due and payable on or before the fifth (5th) anniversary of the effective date (by 11 August 2022);

–      A further fifty thousand (US$50,000) dollars due and payable on or before each of the sixth (6th), seventh (7th), eight (8th), ninth (9th) and tenth (10th) anniversaries of the effective date, for a combined total of $335,000.

Accelerated Payment Option

–      GR Silver may accelerate the exercise of the Underlying Option at any time by paying the owner a lump sum cash payment equal to one million (US$1,000,000) dollars less any annual Undelying Option payment paid to the owner prior to the date thereof.

 

Upon completion of the earn-in agreement, Eureka Resources will be granted a 1% net smelter return royalty which can be bought back at any time within one (1) year after commencement of production of any minerals from the Property for a price of one million dollars (US$1,000,000).

Golconda property maps are available on the Company’s website through the following link:

Golconda Property Maps | Power Metal Resources plc

The maps include:

Figure 1: Regional scale Golconda Summit Property Map

Figure 2: Property scale Golconda Summit Property Map

 

COMPETENT PERSON STATEMENT

The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr O’Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.

References:

Source 1: Nevada Gold Mines Technical Report on the Turquoise Ridge Complex, State of Nevada, USA; NI 43-101 Report dated 25 March 2020. https://s25.q4cdn.com/322814910/files/doc_downloads/operations/Turquoise-Ridge-Technical-Report-March2020.pdf 

Source 2: Magmatic-Hydrothermal Gold Mineralization at the Lone Tree Mine, Battle Mountain District, Nevada; 1 August 2019. https://doi.org/10.5382/econgeo.4665 

Source 3: SSR Mining Inc Mineral Reserves and Resources Statement, announced 30 March 2021  https://www.ssrmining.com/_resources/2021-03-30-Reserves-and-Resources-Final.pdf   

Source 4: Summary Report for the Golconda Summit Property Iron Point Mining District, Humboldt County, Nevada; unpublished report prepared for Carlin Gold Corporation and Toquima Minerals US Inc. by K. Brook, dated 4 April 2006. 

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.

For further information please visit https://www.powermetalresources.com/ or contact:

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

Power Metal #POW – Option Agreement for Botswana Gold-Nickel Project

Option Agreement – Botswana Gold-Nickel Properties

Company has Signed an Option Agreement to Acquire a 100% Interest in Two Gold – Nickel Prospecting Licences in the Tati Greenstone Belt, Botswana, with a down payment on drilling.

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce it has secured an option (the “Option”) to acquire two prospecting licences (“PLs”) prospective for gold and nickel and located upon the Tati Greenstone Belt, Botswana.

The Option allows for a 60 business day due diligence period, and should Power Metal exercise the Option, it will undertake the licence acquisitions through its newly formed 100% owned subsidiary Power Metal Resources Botswana (Pty) Limited (“Power Metal Botswana”).

 

Paul Johnson, Chief Executive Officer of Power Metal Resources, commented:

“We recently formed Power Metal Botswana to provide a holding company for new acquisitions in Botswana and I am pleased to announce this first transaction.  Subject to due diligence, this acquisition would give the Company exposure to a new strategic project in the heart of the Tati Greenstone Belt, an under explored area which we believe holds considerable potential for new gold and nickel discoveries.

This announcement further confirms the Company’s commitment to expanding our operational interests in Botswana, which is a first class destination for responsible exploration companies.  Uniquely, the transaction incorporates an Option fee that is convertible into a down payment against project drilling in Botswana.

I look forward to providing further information as our due diligence work progresses.”

Vendor and Prospecting Licence Information

Vital Commodities Pty Ltd, a company registered and Incorporated in Botswana (“VC”) VC is a private Botswana company that owns two prospecting licences in Botswana, (the “Vendors”). VC is 100% owned by Equity Drilling Limited, a company registered and incorporated in Guernsey.

 

The PLs owned by the Vendors and the subject of this transaction are as follows:

PL127/2019

PL127/2019 is located near the southern extent of the north-northwest striking Tati Greenstone Belt, roughly 40km southwest of Francistown, Botswana, and less than 7km from the Mupane underground gold mine.

PL127/2019 covers a total area of 89km2 and is prospective for orogenic gold and intrusive magmatic nickel mineralisation.

Several untested kilometre-scale Arsenic (‘As’)- and Gold (‘Au’)-in-soil anomalies extend onto PL127/2019 from the northeast and southeast.

The licence is also believed to cover the southern extent of prolific gabbroic-troctolitic intrusions which host the Phoenix, Selkirk and Tekwane Ni-Cu-PGE rich deposits located along the periphery of the Tati Greenstone Belt less than 7km from the licence. The magmatic Ni-Cu-PGE potential the licence possesses has been generally overlooked by previous operators.

PL126/2019

PL126/2019 is located near the northern extent of the Tati Greenstone Belt, less than 10km southeast of Francistown and is adjacent to the Golden Eagle deposit (Shashe Mining Licence).

PL126/2019 covers a total area of 35km2 and is prospective for orogenic gold mineralisation. The licence hosts several untested arsenic and gold in-soil anomalies as well as a large historic mine dump which has received little known follow up or modern exploration.

Tati-Greenstone Belt Information

The Tati Greenstone Belt (“TGB”) is located in the vicinity of Francistown, adjacent to the Zimbabwe border, in north-eastern Botswana. With a total strike length of 65km and up to 20km in width the TGB hosts a large number of orogenic style gold deposits and several economically significant intrusive magmatic Nickel-Copper-Platinum Group Elements (“Ni-Cu-PGE”) rich sulphide deposits.

A gold rush started at Tati in 1867 leading to the establishment of Francistown and over 70 reported small scale gold mining operations.

The TGB is Botswana’s only gold producing region with the Mupane gold mine (held by Galane Gold Ltd) being the country’s only major gold producer. Mupane was formerly an open-pit operation and is now an underground mine. It is located in the southern part of the TGB.

The known nickel deposits on the greenstone belt consist almost entirely of disseminated to semi massive sulphide bodies hosted by a series of late stage gabbroic-troctolitic intrusive bodies. Significant nickel operations which operated until 2016, included the former Tati Nickel Mining’s Selkirk underground mine which commenced production in 1989 and the Phoenix open pit which started in in 1995. Both deposits are located in the south-central portion of the TGB.

Geologically the TGB is part of the Francistown Arc Complex within the southern margin of the Archean age Zimbabwe Craton in the northern contact zone of the Limpopo Belt. The principal lithologies of the TGB are lower greenschist to lower amphibolite facies volcanic and sedimentary rocks, constrained by three fault-bounded volcano-plutonic sequences which are intruded by granitoids.

Whilst there is a long history of small scale gold mining on the TGB, the Company believe it to be  underexplored by modern standards and systematic exploration focussing on areas with sand cover and geophysics targeting greater depths, are likely to yield further gold and nickel discoveries.

Option Agreement Information

The Option:

  • Power Metal has signed an option agreement to acquire a 100% interest in PL 126/2019 and PL 127/2019, being two granted prospecting licences in Botswana within the Tati Greenstone Belt and held by the Vendors.
  • The Option provides a 60 business-day period, during which Power Metal may undertake due diligence and notify the Vendors of Option exercise to acquire 100% of P L 126/2019 and PL 127/2019 from the owner of the said prospecting licences.
  • The Option fee is to be satisfied through a cash payment of £50,000 to the Vendors.  The full amount of £50,000 paid may be credited and offset from the cost of the drilling u ndertaken by Equity Drilling Limited (100% owner of VC) at the two PLs which are the subject of this Option or at other Power Metal interests in Botswana. The payment will be made using existing Power Metal cash resources.

Upon Option Exercise:

  • VC will subject, to local authority approvals, arrange immediate transfer PL 126/2019 and PL 127/2019 into Power Metal Botswana.
  • The consideration items outlined below, following Option exercise, will not become due and payable until the necessary local authority approvals for the transfer to Power Metal Botswana have been received and the transfer completed.
  • Should Power Metal at its sole volition exercise the Option for the acquisition of PL 126/2019 and PL 127/2019, the Company will pay an initial consideration of £25,000, payable through the issue to the Vendors of 833,333 new ordinary Shares of 0.1p each in the Company (“New Ordinary Shares”) at an issue price of 3.0 pence per New Ordinary Share (“Initial Exercise Shares”).
  • Thereafter should Power Metal elect to proceed with the year 3 exploration spend programme (for the year ending 30 September 2022) it will pay a further consideration of £50,000, payable to the Vendors through the issue of 833,333 New Ordinary Shares at an issue price of 3.0p each for each licence where such spending is confirmed, thereby if both confirmed then 1,666,666 New Ordinary Shares would be issued (the “Further Exercise Shares”).
  • In addition, Power Metal will pay a single further consideration payment of £100,000 through the issue the Vendors of 3,333,333 New Ordinary Shares at an issue price of 3.0p (“Final Exercise Shares”) if either of the two following conditions are met:

– (1) Confirmation of a 250,000 oz JORC (2012) compliant gold Mineral Resource across the two prospecting licences

– (2) Confirmation of a 5,000,000 tonne economic nickel deposit at a grade of >1.5% nickel.

  •  Additionally, the Company shall issue to VC 5,833,332 warrants (the “Vendor Warrants”) in two separate tranches of 2,916,666 warrants each:
    • 2,916,666 Vendor Warrants shall be issued to acquire New Ordinary Shares at an exercise price of 5p per share, exercisable over a 2-year period from today’s date and which are only exercisable on completion of drilling against which the £50,000 offset payment has been made and successful transfer of PLs 126/2019 and 127/2019 to Power Metal Botswana (the “5p Vendor Warrants”). The 5p Vendor Warrants shall be subject to a 5-day VWAP accelerator, by which should Power Metal shares trade above 10p for 5 trading days then the Company shall have the right to serve notice on VC that it must exercise and pay for the exercised 5p Vendor Warrants within 14 calendar days or the 5p Vendor Warrants shall be cancelled.
    • 2,916,666 Vendor Warrants shall be issued to acquire New Ordinary Shares at an exercise price of 7.5p per share, exercisable over a 2-year period from today’s date and which are only exercisable on completion of drilling against which the £50,000 offset payment has been made and successful transfer of PLs 126/2019 and 127/2019 to Power Metal Botswana (the “7.5p Vendor Warrants”). The 7.5p Vendor Warrants shall be subject to a 5-day VWAP accelerator, by which should Power Metal shares trade above 15p for 5 trading days then the Company shall have the right to serve notice on VC that it must exercise and pay for the exercised 7.5p Vendor Warrants within 14 calendar days or the 7.5p Vendor Warrants shall be cancelled.
  • Up to 30 September 2022 Power Metal will engage VC to quote for all drilling activities undertaken on PL 126/2019 and PL 127/2019.
  • The Vendors and their professional licensing and geological teams will continue to work with Power Metal following Option exercise to manage licences and third party relationships, undertake ground exploration and to help where appropriate to further build the licence footprint in Botswana. Reasonable commercial terms will be agreed for any additional work undertaken.

Glossary:

Orogenic Gold (Deposits) – Gold deposits found within metamorphic belts which form as a result of major crustal deformation events.

Intrusive Magmatic Nickel (Deposits) – Nickel deposits found at the base of large mafic and ultramafic intrusive bodies. 

Arsenic-in-soil anomaly – Geochemical anomaly defined by increased arsenic levels over background.

Gold-in-soil anomaly – Geochemical anomaly defined by increased gold levels over background.

PGE – Platinum group elements (ruthenium, rhodium, palladium, osmium, iridium, and platinum)

Gabbroic-troctolitic intrusives – Coarse grained, dark coloured, intrusive rocks composed mainly of pyroxene, plagioclase and minor amounts of amphibole and olivine.

Lower greenschist to amphibolite facies – Metamorphic rocks with increased chlorite, serpentine, and epidote (greenschist), or amphibole and plagioclase (amphibolite) which are indicative of a high degree of metamorphism caused my intense heat and pressure in the subsurface.

Granitoids – Coarse grained igneous rock composed mostly of quartz, alkali-feldspar and plagioclase.

 

COMPETENT PERSON STATEMENT

The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr O’Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.

For further information please visit https://www.powermetalresources.com/ or contact:

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

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 – Pyramid Gold-Silver Project – Exploration Results

Further to its announcement on 11 January 2021,  Tertiary Minerals plc is pleased to provide the results of follow-up sampling carried out on its Pyramid Gold-Silver Project in Nevada, USA.

Highlights:

  • Thirty-one rock chip samples taken from exposed mineralisation in field checking of the North Ruth, Western Line and Western Splay silver-gold soil anomalies.
  • Eight rock chip samples from the North Ruth anomaly assayed up to 314 g/t silver (9.16 ounces/ton) and 0.45 g/t gold (in separate samples) and averaged 91 g/t silver (2.67 ounces/ton) and 0.26 g/t gold..
  • Highest value individual sample from the field work contained 6.29 g/t gold and 158 g/t silver (4.61 ounces/ton from the Western Line Anomaly where seven samples averaged 1.49 g/t gold and 99 g/t silver (2.89 ounces/ton)..
  • Field evidence suggests the Western Line Anomaly may extend along strike to the southeast over a total of 1,700m – infill soil sampling planned.
  • Follow up trenching now planned to better expose the mineralisation in the North Ruth and Western Line anomalies.

Commenting today, Executive Chairman Patrick Cheetham said: “I am pleased to be reporting solid progress at the Pyramid Project with widespread gold and silver mineralisation now being confirmed at surface within a number of long and persistent soil anomalies. Where exposed and sampled to date, the mineralisation comprises narrow veins within broader zones of volcanic breccia suggesting potential for both high grade vein and lower grade bulk tonnage targets. Follow-up work is planned to start later this month.”

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

Pyramid Gold-Silver Project

The Pyramid Gold-Silver Project is located in north-central Nevada, USA and is targeting epithermal gold-silver mineralisation in the prolific past producing Walker Lane Mineral Belt.

On 11 January 2021, the Company announced results from a soil sampling programme carried out to confirm and determine the extent of an open-ended gold and multi-element soil anomaly originally defined in the 1980s by Battle Mountain Gold Company. A number of significant gold and silver-in-soil anomalies were identified and named the North Ruth, Western Line and Western Splay anomalies.

In late January 2021, the project consulting geologist, Ivan Johnson, was contracted to field check the anomalies and conduct a follow-up rock chip sampling programme. During this field programme, thirty-one rock chip samples were collected from areas of outcropping mineralisation and comprised chip samples over narrow outcrops of mineralisation (up to 1.5m width), select grab samples from outcrops and prospector scale shallow excavations. All samples were submitted to Paragon Geochemical, Reno, Nevada, for precious metal and multi-element geochemical analysis.

Analytical results have now been received and are detailed below.

North Ruth Soil Anomaly

The North Ruth soil anomaly has a strike length of 800m and with a maximum soil value of  207 grammes/ton (g/t) silver (6.04 ounces/ton) and 1.63 g/t gold in the same sample.

Follow up prospecting has identified areas of silicified and brecciated Tertiary-age volcanics within the anomaly with one sample of spoil from an old shaft containing 314 g/t silver (9.16 ounces/ton) amongst eight samples averaging 91 g/t silver (2.67 ounces/ton) and 0.26 g/t gold.

Western Line Soil Anomaly

The Western Line Soil Anomaly is an expansion of a soil anomaly defined in a more limited soil sampling programme carried out in 1980s by Battle Mountain Gold Company. This was tested by their drill holes PYR-9 (which contained visible gold and intersected 1.52m grading 17.8 g/t gold from 94.5m down hole) and PYR-10 (no significant intersections) and by Tertiary’s 2020 drill hole TPYR1 which sought to twin PYR-9, and which intersected 0.55m grading 2.01 g/t Au from 82.6m down hole.  

Seven rock chip samples were taken from within the open ended 900m length of the Western Line soil anomaly, at the northwest and southeast ends, due to limited outcrop in between.  The samples averaged 1.49 g/t gold and 99 g/t silver (2.89 ounces/ton) with a maximum value of 6.29 g/t gold and 158 g/t silver (4.61 ounces/ton) from a select rock chip sample of a narrow vein exposed at the collar of an old shaft 80m northwest along strike from the collar of drill hole TPYR1.

Five of the samples were taken at the southeast end of the anomaly over an anomaly width of approximately 60m. These samples averaged 0.77 g/t gold and 104.11 g/t silver, with the best sample returning 1.43 g/t gold and 327 g/t silver from a 0.30m outcrop channel sample.

An additional 2 samples located approximately 900m further southeast were taken in what is interpreted to be a potential extension to the Western Line. Both samples contained anomalous Au/Ag with Sample PR‑29 returning 0.49 g/t Au and 51 g/t Ag. Numerous prospector pits follow the strike of the anomaly suggesting a total length of up 1,700m. Only very wide spaced (360m line spacing) soil sampling is present in this area, so infill soil sampling is now planned for later this month.

Western Splay Soil Anomaly.

This anomaly is a splay off the Western Line gold-silver soil anomaly.

Several samples were collected along and around the Western Splay anomaly and whilst all contained anomalous silver and gold, the maximum values were 0.35 g/t and 15 g/t, respectively and no further work is currently planned for this area.

In conclusion, the initial field follow-up of the Pyramid soil anomalies announced on 11 January 2021 has identified narrow veins containing high-grade silver and gold mineralisation within broader zones of altered andesitic volcanic breccias which present targets for bulk minable low-grade mineralisation in the North Ruth and Western Line areas.

A programme of mapping and trenching is now being planned to better expose and sample the outcropping silver and gold mineralisation.

Notes:

  1. Units:

Rock samples reported in g/t = grammes/tonne

1 g/t = 0.029167 ounce/ton (i.e. troy ounces/US ton)

1ppm = 1 g/tonne

1 (Troy) ounce =31.105g

  1. Rock chip samples were collected by consulting Geologist Ivan Johnson and transported under chain of custody to Paragon Geochemical facilities in Reno, Nevada for sample preparation. Samples were crushed to 85% passing 200mesh using PREP-RMB. Gold was analysed by method Au-AA30 which comprises 30g fire assay with aqua regia digest/AAS finish. Multielement analysis (including Ag) was performed using method 33‑MA-OES which comprised a 4-acid digest with ICP/OES finish. 33-MA-OES Ag overrange analysis OLMA-OES again with 4-acid digest and ICP/OES finish. Paragon carries out duplicate and standard materials analysis as part of its internal QA/QC procedures.
  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. 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.

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.

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.

HotStockRockets – ECR Minerals #ECR – a speculative buy?

Shares in gold-focused ECR Minerals (ECR) have recently risen strongly to a current 1.7p offer price but that follows not having previously joined in with the gold surge – they having commenced this year at 0.725p and the market cap is still comfortably below £10 million…

Recently-announced results for the company’s half-year ended 31st March 2020 showed administrative expenses of £0.37 million on nil revenue, with both cash and current assets over total liabilities of £0.17 million. However, “post the period end, the group’s cash position benefited from a £500,000 equity financing completed by the company and the receipt of AUD$500,000 from the sale of licences”. The latter also includes; “A further payment of A$1 for every ounce of gold or gold equivalent of measured resource, indicated resource or inferred resource estimated within the area of one or more of the Licences in any combination or aggregation of the foregoing, up to a maximum of A$1,000,000 in aggregate; A further payment of A$1 for every ounce of gold or gold equivalent produced from within the area of one or more of the Licences, up to a maximum of A$1,000,000 in aggregate.” In February the company also completed the sale of interests in Argentina – retaining a NSR royalty of up to 2% to a maximum of $2.7 million in respect of future production from the SLM gold project – to focus on gold exploration activities in Australia.

The above is with results from exploration activities in Victoria, Australia having recently included positive findings of an alteration study on RC drill cuttings from the Creswick project (in March), and confirmation of very high grade gold mineralisation at Creswick by the completion of ‘full bag’ testing (November 2019). It emphasises its “tenement position at Creswick covers approximately 7 kilometres of the DMS trend, and the 2019 drilling only tested approximately 300 metres of this. ECR therefore believes there is significant potential upside in the project”. There is also particularly Bailieston, where “ECR is considering a number of potential exploration programmes… including further drilling at the Blue Moon prospect, where 2019 reverse circulation drilling… returned an intercept of 2 metres at 17.87 g/t gold within a zone of 15 metres at 3.81 g/t gold from 51 metres in BBM007, and soil and stream sediment sampling in the Cherry Tree South and Ponting’s areas”.

This is still early-stage stuff but is in one of the ‘hottest’ geographic areas of interest currently – and the results statement noted “Victoria, Australia continues to enjoy a gold exploration boom and interest from third parties in ECR’s projects in Victoria is strong, with several discussions taking place in respect of potential commercial transactions over our Bailieston and Creswick projects”. There are COVID 19-related international travel restrictions but the team on the ground continues work and we expect the restrictions to relatively soon be eased, potentially facilitating the “potential commercial transactions”.

Therefore, at 1.7p and up to 1.8p, targeting 2.7p+ (a £15 million market cap) on continuing Victoria, Australia gold and deal excitement, Buy.

Link here to the full HotStockRockets article on ShareProphets

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