Guest article from https://valuethemarkets.com

Originally Published 22 May 2019

Today’s guest on the ValueTheMarkets podcast is Paul Johnson, Director of African Battery Metals. Since refinancing and Paul joining the board earlier this year, the explorer has been very busy reviewing and recommencing work at a number of projects. The company’s historic focus has been on projects in the Democratic Republic of Congo (DRC), Cameroon, and the Ivory Coast.  In the interview, Paul discusses the company’s review of its assets, the termite mound sampling programme at Kisinka in the DRC, and the recommencement of exploration at the firm’s Copper-nickel asset in Cameroon.

African Battery has also recently announced positive results from soil samples taken at their Haneti project in Tanzania.  Paul gives further details on this, going on to explain the option the company exercised with Katoro Gold to take a 25pc interest and the further earn-in options remaining available to African Battery. Finally, Paul discusses the recent move into Botswana, with an acquisition and earn-in agreement with Kalahari Key.

Author: Stuart Langelaan

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

The Author was paid to produce this piece.

Catalyst Information Services Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Services Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and Catalyst Information Services Ltd are not responsible for its content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance.

All opinions expressed are those of ValueTheMarkets and the respective guests unless otherwise stated and should not be construed as investment advice or a recommendation to buy shares in any featured Company. Listeners are advised to do their own extensive research before buying shares which, as with all small-cap exploration stocks, should be viewed as high risk. Investors should also seek the advice of a qualified investment adviser or stockbroker as they deem appropriate.

On Thursday, Rockfire Resources (LSE:ROCK) announced it has exercised its option to acquire the Copper Dome Porphyry Copper Deposit in central Queensland from Symbolic Resources. The deposit is just 50km to the southwest of another of the firm’s interests, Copperhead, and the plan is to develop both projects simultaneously.

The acquisition follows by Rockfire earlier this year. The explorer carried out a programme of soil sampling, rock sampling and structural and geological mapping. On Tuesday, Rockfire said that soil sampling at Copper Dome had returned strongly anomalous results of up to 0.1pc copper. The copper anomaly has been extended south from the previous Rockfire survey by 500m and the anomaly remains open towards the east and west. The firm found copper-in-soil is strongest at the margins of the mapped porphyries. Summing up the exploration, David Price, Chief Executive Officer of Rockfire said:

This exploration has returned very high-grade copper-in-rock samples, medium level copper-in-soil values and low-level gold-in-soil assays. Importantly, this work has resulted in the delineation of clear geochemical targets."

The plan now is to develop the Copper Dome and Copperhead projects ‘with the aim of outlining very large tonnage copper resources." Price adds.

Copperhead, located close to the central Queensland coast, lies within a belt of porphyry copper deposits. Five diamond drill holes, drilled by previous explorer Carpentaria revealed chalcopyrite and pyrite throughout each hole, two of which were 300m deep indicating a potentially large target.

In consideration for Copper Dome, Rockfire will pay Symbolic A$30k in cash and issue 3,720,454 shares with an equivalent value of A$50k.

David Price, commented; 

"Our management team is encouraged by the confirmatory work done by the Rockfire exploration team as part of our technical due diligence on Copper Dome. With coherent copper occurring around the rim of a mapped porphyry, as well as gold occupying the boundaries of two close-spaced porphyries, the geological setting shows excellent signs for gold and copper mineralisation."

"Now that Rockfire owns Copper Dome, your company is in a unique position of controlling two potentially large-scale porphyry copper projects in its portfolio, both of which are considered worthy of inclusion in the Porphyry Copper Assessment published by the US Geological Survey. The Company's intention is to expand our exploration into geophysics, including ground magnetics and gradient array IP. These two geophysical techniques are expected to identify clear targets in and around the geochemical anomalies, which will lead towards drilling." 

Author: Stuart Langelaan

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

The Author has not been paid to produce this piece by the company or companies mentioned above

Catalyst Information Services Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and Catalyst Information Services Ltd are not responsible for its content or accuracy and do not share the views of the author.  News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance



 

Greatland Gold (LSE:GGP) rose 1.5pc to 1.7p on Wednesday following a bumper morning that saw it announce two major drilling updates across its Australian assets.

In its first release, the business said major miner Newcrest has begun drilling at its Havieron gold-copper project in the Paterson region of Western Australia. The initial drill programme comprises around 10,000m of drilling to define the extent of mineralisation along strike and at depth within the project. Newcrest will fund all of this work, with Greatland expecting regular updates as the programme progresses.

Wednesday’s news comes after Greatland and Newcrest signed a farm-in agreement to explore and develop Havieron in March. The deal – which prompted a transformative rise in Greatland’s share price – gives Newcrest the right to acquire up to a 70pc interest in a 12-block area within licence E45/4701 covering the Havieron target. In exchange for this, the major must spend up to $65m.

Greatland’s chief executive Gervaise Heddle called Monday’s update an ‘exciting moment’ for the firm, adding that the programme would be the most extensive at Havieron to date.

‘We anticipate that Newcrest's technical expertise and understanding of the local geology will build upon our highly successful 2018 programme,’ he said. ‘We look forward to keeping shareholders updated with drill results and all other material exploration information as it is received.’

In a second update, Greatland said it expects to begin a detailed, low-level aeromagnetic survey over its Paterson Range East licence in early June. The 100pc-owned permit lies c.25km north of Havieron and covers 224km2 of Proterozoic basement rock prospective for Havieron-style gold-copper mineralisation.

Greatland said the survey will increase the resolution of around 20 magnetic targets previously identified across the licence significantly. This will assist in their geological and structural interpretation. The data thrown up by the programme will then be used with other geophysical and geochemical data sets to prioritise targets within the Paterson Range East licence.

Following this, high priority targets will undergo additional geophysical and geochemical work as well as further detailed modelling and drill testing. Heddle said the programme is part of an ‘important and ongoing process’ to prioritise the multiple geophysical targets across the company’s Paterson licences.

‘We look forward to providing investors with more detail on the high priority targets at Paterson Range East over the next few months as we apply the knowledge gained at Havieron to our exploration efforts across the region,’ he added.

Author: Daniel Flynn

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

The Author has not been paid to produce this piece by the company or companies mentioned above

Catalyst Information Services Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and Catalyst Information Services Ltd are not responsible for its content or accuracy and do not share the views of the author.  News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

Katoro Gold (LSE:KAT) and African Battery (LSE:ABM) both enjoyed a strong start this week after a soil sampling programme confirmed the exploration prospectivity of their Haneti nickel project in Tanzania. Shares in Katoro shot up by more than a quarter to 0.98p on Tuesday when it revealed that 1,500 samples had reconfirmed and extended the strike length of numerous high-priority ultramafic exploration targets at the site.

What’s more, the work, which forms part of an ongoing exploration programme at the project, identified an additional ultramafic target that had previously been unknown to the business. Katoro said the results confirm Haneti’s exploration potential and will be used to inform its further work this year.

Haneti comprises tenements that cover around 5,000km2 and are prospective for nickel, platinum group elements, cobalt, copper, gold, and lithium. Around $1.5m worth of work has been carried out at the project to date, identifying grades of up to 13.6pc nickel. Katoro, which owns a 75pc stake in Haneti, believes that the work could host a chonolith type nickel sulphide deposit and is principally targeting a prospect called Mihanza Hill.

The news comes just one week after African Battery exercised an option to take a 25pc stake in Haneti. As part of this option, the business invested a further £75,000 to acquire 7.5m new shares in Katoro at 1p each with 1.25p, three-year warrants attached.

African Battery – which rose 5.6pc on Monday following the Haneti update - purchased the option in March when it invested £25,000 in Katoro in exchange for 2.5m of its shares with warrants attached. Under the terms of its option with Katoro, African Battery has the right to buy a further 10pc interest in Haneti for another £25,000 payment to Katoro within 12 months. The two businesses are now working together to establish a written JV agreement and associated shareholder agreement.

The deal also gives African Battery exposure to Katoro other assets, which include the Imweru and Lubando gold projects in Tanzania. Together, these host a JORC-compliant gold resource 754,980oz gold.

Going forward, African Battery will be required to fund its 25pc share of Haneti’s project costs, or its interest will be diluted under standard industry fund or dilute provisions. On this front, Katoro - which is required to allocate all the money it receives from African Battery to Haneti - added on Monday that it is now fully funded to undertake all initial exploration activities at the asset.

Louis Coetzee, executive chairman at Katoro, said Monday’s results had increased the organisation’s confidence in Haneti.

‘Particularly positive, is the identification of a new, previously unknown, target as well as the increase in strike length of known priority targets,’ he added. ‘We believe that Haneti has the potential to provide significant value to Katoro and its shareholders, and I look forward to providing updates as we continue to deliver our planned exploration programme.’

Meanwhile, African Battery’s executive director Paul Johnson was similarly bullish:

‘I am delighted to be working with the team at Katoro and congratulate them on an exceptionally good start to the 2019 exploration programme at Haneti. In particular it is notable that the work undertaken has reconfirmed and extended high-profile target areas and also identified a further previously unknown ultramafic target. This triple positive outcome is exciting for ABM as Joint Venture partners with Katoro at Haneti and also for ABM as significant shareholders in Katoro Gold plc itself.’

Author: Daniel Flynn

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Services Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Services Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and Catalyst Information Services Ltd are not responsible for its content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance.

 

African Battery Metals (LSE:ABM) advanced 5.6pc to 4.8p on Monday afternoon after announcing that it has begun exploration activities at its copper-nickel project in Cameroon. The £1.7m business, which was trading at 0.47p on Tuesday morning, will carry out a pit excavation programme at the asset to a maximum depth of 15m per individual pit.

This work, which is due to start immediately so it can complete before the onset of heavy rains, will include mapping and sampling of each excavated pit. These samples will be tested in South Africa following completion of fieldwork and used to produce a database of prospect information complementing historical work carried out on site.

African Battery is testing for cobalt and nickel mineralisation at depth to reflect work conducted by Geovic Mining at its nearby licences. This demonstrated that mineralised horizons were below 6m. Specifically, African Battery wishes to test the theory that its licence interests show geological similarity to the nearby Nkamouna deposit. Here, Geovic published a NO 43-101-compliant total measured, indicated, and inferred mineral resource of 323Mt at 0.21pc cobalt, 0.61pc nickel, and 1.26pc manganese.

African Battery’s developments in Cameroon come around a month since it recommenced exploration at its 70pc-owned Kisinka copper-cobalt project in the DRC. Last week, the firm revealed that it had completed a field programme at the asset, collecting a total of 663 termite mound samples. The organisation is now carrying out sample preparation, which is scheduled to end shortly. After this, it will carry out X-ray fluorescence spectrometry analysis to identify anomalous levels of copper and cobalt.

In Monday’s update, African Battery’s executive director Paul Johnson said the firm’s approach to Cameroon would be similar to its work in the DRC.

‘As with Kisinka, we have opted to focus our initial exploration spend in a highly targeted manner, answering a simple exploration question and namely, do the identified target areas have geological similarity to the nearby Nkamouna deposit,’ he said. ‘If the answer is positive, the impact on the value of the project to the Company could be dramatic and certainly disproportionately beneficial against the underlying modest cost of conducting the planned pitting and sampling programme.’

Elsewhere, this month saw African Battery unveil a significant acquisition and earn-in agreement in Botswana. The business has acquired an 18.26pc stake in an exploration and geological consultancy company called Kalahari Key Mineral Exploration for $194,821.

Kalahari Key, established by Roger Key, Andy Moore, Simon Bate, and Rick Bonner in November 2014, is the 100pc owner of Molopo Farms Complex (MFC) project in south-west Botswana. Furthermore, African Battery has also secured the right to earn-in to a 40pc direct interest in MFC by spending $500,000 on the project by 31 December next year. This money would go towards ground exploration at the project, expected to include the drilling of high priority targets.

MFC is made up of three exploration licences covering 2,725km2 that are thought to be prospective for nickel, PGM, and copper mineralisation. As well as acquiring all of the project’s historical exploration data, Kalahari Key has undertaken a high-resolution, helicopter-borne electromagnetic and magnetic survey on the area. This work identified 17 key zones of conductive rocks now being used to construct a priority list of targets for follow-up ground exploration.

To read MiningMaven’s recent interview with Johnson on his plans for African Battery moving forward, please click here.

Author: Daniel Flynn

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Services Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Services Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and Catalyst Information Services Ltd are not responsible for its content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance.

Forum Energy Metals (TSX-V:FMC) surprised the Canadian markets earlier this month when it revealed that it had secured $30m deal with Rio Tinto Exploration over its Janice Lake sedimentary copper project in Canada. With the support of a major mining player, Forum has been granted the fire power needed to realise the true potential of its asset, which it believes to mirror the giant Udokan Deposits of the Lake Baikal region in Siberia. Here, CEO Rick Mazur and VP exploration Ken Wheatley talk through their decision to enter the copper sector, the value presenting itself at Janice Lake, and progress across the rest of Forum’s portfolio.

Broader focus

Forum was established in 2004 as a uranium exploration firm. However, following an extended bear-run in the uranium market in the wake of the 2012 Fukushima nuclear disaster, the company decided to extend its focus into the wider energy metals market last year. After changing its name from ‘Forum Uranium’, the business selected the copper market as its first foray into previously uncharted territory.

Forum’s decision to get exposure to the red metal is favoured by the general outlook of the commodity analyst community. Many experts expect copper prices to experience a sharp swing upwards over the coming years following a recent, well-publicised downturn across most commodity markets in the face of weak global growth and US/China trade tensions.

On the demand side, this shift is expected to come down primarily to two factors. First-of-all, China’s acceleration into a phase of infrastructure development is expected to require an unprecedented amount of copper. A good example is the country’s ‘belt and road’ initiative, which aims to create the world’s largest platform for economic cooperation covering policy coordination, trade, financing, and social partnerships. Most notably, the initiative is expected to include a continuous network of highways, railways, ocean routes and ports, with plans to expand over 68 countries and several continents at a cost of $4trn to $8trm.

The second demand driver is expected to be an increased uptake of electric vehicles (EVs) over the coming decades. On average, EVs contain 183lbs of copper compared to just 18-49lbs in conventional cars. With the number of EVs on the road expect to hit 125m by 2030 - compared to c.3.1m in 2017 - Citigroup expects prices of the metal to pass $9,000 by 2028. In comparison, the metal current sits below $6,500/t.

Meanwhile, on the supply side, many analysts believe that a sustained downturn has created an environment where too few copper projects are coming on stream to meet the predicted explosion in demand for the metal. Likewise, China’s plans to ban all scrap copper imports by 2020 as part of broader environmental reform is expected to provide international producers and processors with a significant opportunity.

Copper is the mother of all base metals,’ adds Mazur. ‘When economies are growing, huge amounts of copper are required for areas like construction and power. These are the biggest drivers for the market. The EV sector is also crucial because it presents a huge amount of incremental growth that has caught suppliers completely off guard. Overall, the fundamentals for the copper market are very, very strong, so it seemed a great space for us to enter.’

Janice Lake

Forum’s copper exposure comes from a sedimentary copper project called Janice Lake found 55km from Cameco’s Key Lake processing facility in Saskatchewan, Canada’s number-one rated mining jurisdiction. The organisation optioned a 100pc interest in the asset last February from Transition Metals in exchange for 8m of its shares and $250,000 worth of staged cash payments over four years. Transition will also retain a 2pc net smelter royalty on metal produced from the site.

Map showing location of Janice Lake project

The deal covered 17,600 hectares of staked claims in an area called ‘the most significantconcentration of sediment-hosted copper showings yet known in the Wollaston Domain’ by the Saskatchewan Geological Survey. Limited drilling in the area before Forum’s entry appears to support this claim, with operators encountering mineralisation for 6km on the Janice trend.

Specifically, Noranda drilled 0.77pc copper over 33m including 1.6pc copper over 6m, within 35m of the surface back in 1993 while Phelps Dodge discovered a new zone in 2003 including 0.72pc copper over 26m. Likewise, grab samples collected by Transition have returned values ranging from 0.34 to 9.35pc copper and 0.7 to 61.7 g/t silver.

According to Mazur, these results highlight the potential for the discovery of multiple near-surface, sediment-hosted copper deposits. Sediment-hosted deposits are estimated to account for around a quarter of worldwide copper production and frequently contain higher concentrations of the metal, alongside accessory base and precious metals, than porphyry deposits.

Specifically, Mazur says the age and depositional environment at Janice Lake are similar to the giant Udokan Deposits of the Lake Baikal region in Siberia and the Revette deposits of Montana, USA. With Udokan boasting JORC compliant measured and indicated resources of 1.822 billion tonnes grading 1.01pc copper and14.3 g/t silver, these parallels could be highly significant. As such, Mazur says Forum immediately was keen to take advantage of Janice Lake’s lack of development in spite of its early-stage prospectivity.

Likewise, to take advantage of the broader potential for sediment-hosted copper deposits on offer in the more expansive Janice area, Forum has increased its presence significantly since last February’s deal. Firstly, the firm staked an additional 15,331 hectares of claims covering over 30km in the region alongside transition last year.

Then, earlier this month, the business announced that it had staked a further 19,312 hectares to the southwest, doubling the size of the property to 38,250 hectares.

‘The attraction of this project when we acquired was that over a 6km trend there were only 40 drill holes ever drilled. Firms were hitting copper everywhere, but operators were never really able to put it together,’ says Mazur. ‘We think there is potential for a huge copper deposit in this sedimentary basin. The drilling that was done previously showed excellent economic grades and persistent copper over 6km, so that’s why we staked the 24km trend.’ 

Initial drilling

To make the most of its first-mover advantage, Forum completed a drilling programme of its own at Janice Lake several months after entering the area. This comprised four holes targeting the JS-2 area of historical drilling completed by Phelps Dodge to extend Janice Lake’s known strike of copper mineralisation.

The programme was an immediate success, with all four holes encountering copper mineralisation within 80m of the surface. Highlights included a 19m intersection grading 1pc copper including 5.7m of 2.18pc copper within a 50.5m interval grading 0.45pc copper. Forum also encountered a 15m zone of mineralisation containing 1.09pc lead and 0.62pc zinc within a 5m intersection grading 0.39pc copper and 4.3 g/t silver. Wheatley says the results suggest mineralisation at Janice Lake is hosted by mafic-rich stratigraphy within more felsic units. In Layman’s terms, this opens up the possibility for multiple layers of copper mineralisation:

‘I think we have multiple horizons of copper mineralisation that were not necessarily recognised by previous operators. They drilled along strike, but I do not think they realised that that was just one of the layers of copper. We see a series of layers of mineralisation. So, the whole area is mineralised. If we can find some sweet spot areas, then it will help to understand the area better,’ he says. ‘The trick now is going to be getting some grade holes to show that it is economical. The next stage will be hundreds of thousands of metres of drilling to prove up an orebody. That is what it takes to get to pre-feasibility. We think the potential here is to develop an open pit mining resource and mine a lot of tonnes of copper.

Major interest

This drilling success did not go unnoticed, with both Forum and Janice Lake taking a major step forward earlier this month when Rio Tinto Exploration Canada entered into an option on the project. The mining major has entered a joint venture agreement with Forum that will see it commit to $3m in exploration at Janice Lake over the next year-and-a-half.

Alongside this, Rio Tinto has also been granted two options. The first of these gives its four years to acquire a 51pc stake in Janice Lake by spending $10m on exploration, making $490,000 in cash payments.As a bonus, the business must also service Forum’s remaining $200,000 worth of underlying cash payments to Transition for acquiring Janice Lake in the first place.In other words, Forum has negotiated a multi-year deal with a world-leading mining company on a project that it is yet to acquire itself fully. The second option gives Rio Tinto the right to earn a further 29pc stake in Janice Lake by spending another $20m in exploration over three years while making additional cash payments of $150,000.

Encouragingly, Rio Tinto is already planning a high-resolution airborne magnetometer survey over the entire extent of Janice Lake alongside c.7,000m of drilling in 25-30 holes to meet its 2019 exploration commitments. Mazur says this sort of support from a business like Rio Tinto is transformational for Forum because it will allow it to realise Janice Lake’s true potential: 

 ‘The Rio Tinto deal is exceptional at this stage of the project. The company obviously sees what we see- Janice Lake’s potential to become a mine. We are pleased to have the team on board- Rio Tinto is obviously one of the biggest copper producers in the world, so the technical team it can bring to this is tremendous. We are really excited to have the company come in to the project and build a mine for us.’

Wider interests

Forum also offers exposure to several additional assets beyond Janice Lake, which MiningMaven will cover in great detail in a future report.  One of the most significant of these is its 100pc-owned Quartz Gulch cobalt exploration project in America’s Idaho copper belt. Quartz Gulch is based around 5kms to the south-east of the past-producing Blackbird cobalt mine and the eCobalt Solutions Idaho cobalt project - currently, the only permitted cobalt mine under development in North America.

Although Janice Lake remains Forum’s primary focus at present, Mazur says he believes that the business could benefit from having a significant strategic foothold in Idaho as conditions in the cobalt market develop: ‘We are locked-in at the best cobalt area in North America, adjacent to former production and a developing mine,’ he says. ‘Cobalt is a vital element in the cathode of Li-ion batteries and will be for years to come. The primary source of cobalt is currently the DRC, which is very unstable. I think battery suppliers are increasingly seeking out a secure source of cobalt, so that is why we are getting into the metal in the US.’

Forum also has a majority interest in seven drill-ready uranium exploration properties in Canada’s Athabasca Basin, where some of the richest deposits for the metal are found globally. The projects are under the direction of Wheatley, a professional geologist who boasts an exploration discovery record of eight uranium deposits. Four of these became producing mines.

Mazur tells us the company will return to the projects when conditions in the uranium market begin to recover: ‘Although the market went soft on us, we believe things will come back into balance. The demand for uranium in China is huge and growing – the country is building nuclear power plants as part of its 20-year plans to replace all of its coal-fired power generation.’


Map showing location of Athabasca Basin prospects

Growing awareness

The parallels being drawn between Janice Lake and hugely successful sedimentary copper projects alongside the asset’s ability to attract a major mining player at such an early stage are very encouraging. With guidance from Forum’s highly experienced management and technical team and financial firepower from Rio Tinto, the project really has been granted the best possible shot at realising its potential.

Beyond Janice Lake, the assets present across the remainder of Forum’s portfolio both ensure diversification and give investors additional exposure to powerful global trends like increasing nuclear power and EV usage. Although positive, market reaction to the Rio Tinto deal was somewhat muted. With a work programme coming up and investors growing privy to Janice Lake’s prospectivity, it will be interesting to see where Forum’s shares go from here.

Author: Daniel Flynn

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

The Author has been paid to produce this piece by the company or companies mentioned above.

Catalyst Information Services Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Services Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and Catalyst Information Services Ltd are not responsible for its content or accuracy. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance.

West Africa-focused exploration firm Oriole Resources (LSE:ORR) rose 4.1pc on Thursday after revealing developments across its portfolio and highlighting its belief that is being undervalued heavily by the market.

Speaking at Oriole’s AGM, non-executive chairman John McGloin said the company’s partner IAMGOLD has now met its year one commitment at the Dalafin project in Senegal and has now begun its year two programme. This will involve 13,000m of drilling to extend its 2018 programme at a prospect called Madina Bafé northwards. The major will also step 2km northwest to test another candidate called Saroudia. Results from these programmes are anticipated late Q2 or Q3 this year.

IAMGOLD, with whom Oriole struck a deal on Dalafin last year, is focusing on these two prospects first because they are closest to its 2.49MMoz Boto gold project. Given that the sites are within trucking distance to Boto, the business hopes to use them as feed for its planned mine.

In Thursday’s update, McGloin said Oriole believes that IAMGOLD will extend its exploration programmes to test other targets within Dalafin including one called Faré. With this in mind, McGloin said Dalafin alone ‘more than underpins’ the £2.49m organisation’s current share price and provides a ‘stark example of how undervalued [Oriole] is in the current market.

Elsewhere, McGloin said systematic exploration has continued at its Bibemi and Wapouzé projects in Cameroon. Phase two infill programmes are nearing completion, with further results expected later this quarter. McGloin added that Oriole sees Cameroon as a ‘key growth centre’ moving forward and plans to expand its footprint in the country during 2019. This expansion will include additional licences under its existing JV – established last year – and new licence applications under a subsidiary business.

Cameroon is a 'new frontier' with respect to modern gold exploration, offering huge potential in what is a geologically highly-prospective terrane,’ said McGloin. ‘We anticipate that companies will continue to follow our lead and expect the pace of investment in exploration to increase once results from the first phase of the World Bank-funded 'PRECASEM' geological targeting programme - led by the French and Finnish geological surveys - are released later this year. The Cameroonian government is highly supportive of foreign investment into the mining sector, having revised its mining code in 2016, and we are pleased to be leading the way.’

Finally, McGloin said Oriole’s cash balance stood at £1m as at the end of April, having been boosted by a £522,000 tax refund from HMRC and £40,000 worth of R&D tax relief. He added that the company’s cash has been bolstered further in May by value realisation across its various investments and royalties.

‘In Turkey, this has included offsetting our costs by sub-contracting our geological team to local partners, as well as the receipt of staged payments relating to a US$500,000 success-based fee at the Karaağac gold project,’ said McGloin. ‘As we enter the rainy reason in Cameroon, our operational spend will be significantly reduced, and we continue to monitor our positions across our investment and royalty portfolio and to review monetisation opportunities.’

Author: Daniel Flynn

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

The Author has not been paid to produce this piece by the company or companies mentioned above

Catalyst Information Services Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and Catalyst Information Services Ltd are not responsible for its content or accuracy and do not share the views of the author.  News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

This week saw Canadian cobalt developer Global Energy Metals (TSX-V:GEMC) announce that initial results for its environmentally friendly metal recovery process at its assets in Nevada have exceeded expectations.

As announced last week, the firm has signed a deal that will see cobalt, nickel, and copper-bearing mineralised material from its Lovelock and Treasure Box sites undergo a process called Re-2OX. Owned by Canada Cobalt Works, Re-2OX is a proprietary and environmentally green hydrometallurgical process that recovers cobalt, precious metals, and base metals without using a traditional smelter.  Canada Cobalt has said that the operation can create battery-grade cobalt sulphate, adding that nickel-manganese-cobalt battery-grade formulations are also in the pipeline.

Global Energy believes the deal will allow it to confirm efficient battery metal extraction at Lovelock and Treasure Box, and create a potential battery-grade test product.  This will form part of a broader exploration work program at the sites beginning this month that is expected to allow for the reinterpretation of historical data.  The company hopes this work will provide it with a better understanding of its ability to unlock the cobalt, nickel and copper potential of its Nevada acreage.

On Thursday, Global Energy said that – alongside Canada Cobalt – it has already begun on-site work related to Re-2OX at Lovelock and Treasure Box. The business said initial fieldwork is demonstrating the potential to identify high-grade cobalt, nickel, and copper mineralisation over broader areas than original believed at both sites. More details on its planned reconnaissance programme will be provided shortly. Elsewhere, the company said it has terminated the 7.5pc financing announced as part of the Canada Cobalt deal due to Policy 5.3 for Tier-2 Venture Issuers under Section 7.1.

Under the terms of this month’s deal, Canada Cobalt will supervise the reconnaissance programme, protecting intellectual property as results flow to Global Energy.  The business will also be paid a $200,000 upfront first-stage fee for the use of Re-2OX, exclusive of sampling and lab costs that will be funded by Global Energy to a maximum of $100,000.  The two organisations will also look at broadening their relationship in the future.

Lovelock and Treasure Box are based around 150km east of Tesla’s major battery factory in Sparks. Lovelock covers around 1,400 acres and is said to have produced 500ts of cobalt and nickel mineralisation between 1883 and 1890 when it was last in operation. Global Energy believes exploration work and modern drilling techniques could unlock a large amount of potential value at the site.

Treasure Box, meanwhile, is adjacent to Lovelock and hosts mine workings from limited copper production, which occurred until early into the 20th century. A historical diamond drill hole at the asset reportedly intersected 1.52pc copper over 85ft, with mineralisation beginning at the surface.

Earlier this month, Global Energy revealed that it had paid a bond that would allow it to begin its staged exploration programme in Nevada. This came just days after the business raised $813,500 in an oversubscribed placing at $0.05 a share to support the funding of the programme.

Global Energy focuses on offering security of supply of cobalt, which is a critical material in the rapidly growing rechargeable battery market. It is building a diversified global portfolio of assets in the sector, including project stakes, projects and other supply sources.

The business’s flagship asset is the Millennium Project in the world-renowned Mt. Isa region of Queensland, Australia. It executed the final agreements to take a 100pc interest in the project in November. Millennium is a multi-zone, near-surface cobalt-copper sulphide system with several kilometres of potential strike length. It is located near established mining, transport, and processing infrastructure and offers easy access to a very skilled workforce.

The growth-stage site contains a defined zone of cobalt-copper mineralisation. Here, a 2016 JORC Resource estimate identified 3.1MMts of inferred resources containing 0.14pc cobalt and 0.34pc copper with gold credits. Global Energy is now looking at ways to increase the size of its deposit. Results from a first phase exploration campaign at two zones called Millennium North and Millennium South exceeded grade and thickness expectations. The firm will now carry out a second phase of drilling to examine both areas further.

Alongside Millennium, Global Energy has acquired two further discovery sites called Mt. Dorothy and Cobalt Ridge. These are collectively known as the ‘Mt. Isa projects’. The areas expand Global Energy’s Australian land position by nearly twenty times but have yet to be exploited. Exploration to date has returned high-grade cobalt intercepts at both, allowing Global Energy to line up numerous targets for further investigation and test work to define a resource.

Finally, the business currently owns 70pc of the Werner Lake cobalt mine in Ontario Canada. Its joint venture partner Marquee Resources is enjoying much success in its ongoing exploration campaign at the asset.

Author: Daniel Flynn

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Services Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or

financial instrument(s) mentioned in the piece.

Catalyst Information Services Ltd, the owner of MiningMaven.com, has been paid for the production of this

piece by the company or companies mentioned above.

MiningMaven.com and Catalyst Information Services Ltd are not responsible for its content or accuracy and do

not share the views of the author. News and research are not recommendations to deal, and investments may

fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future

performance

African Battery Metals (LSE:ABM) outlined the next steps to be taken at its Kisinka Copper-Cobalt project in an update on Friday. Exploration recommenced at the project in April now following the firm successfully refinancing earlier in the year. The company reports current field activities were completed last week with a total of 663 termite mound samples being collected across the whole license area. X-ray fluorescence spectrometry (XRF) will now be carried out on the samples to identify copper and cobalt mineralisation.

In order to protect and preserve the company's working capital, African Battery has adopted a staged approach with initial wide area exploration focussed on identifying areas of anomalous copper and cobalt mineralisation, to be followed by follow up drilling if appropriate drill targets present themselves.

Kisinka is a 53 sq km exploration licence located in an established world class producing cobalt district in the Democratic Republic of Congo (DRC).

The License has 8km of strike along the Roan group of rocks, which host the majority of the DRC’s copper and cobalt mines.  There are a number of large cobalt-copper mines in the area, both on strike and in the same rock structure to the west. African Battery is due to pay a second tranche of $100,000 which will secure a 70pc interest in the license.

Paul Johnson, Executive Director of African Battery Metals commented:

"Our team coped well with difficult on-site logistics as grass levels remained high after late rains, and we recruited additional casual support staff to ensure timely completion of the field phase of activities.

This initial programme has been carried out with speed and efficiency and bodes well for our ability to operate effectively in the DRC.  We look forward to reporting results as these become available."

Author: Stuart Langelaan

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

The article expresses the views of the Author solely and does not necessarily express the views of MiningMaven.com and Catalyst Information Services Ltd or their connected parties who are not responsible for its content or accuracy.

News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance. Readers are recommended to seek the advice of appropriate professionals when considering investments in small capital.

 

 

Kavango Resources (LSE:KAV) sat at an all-time high of 4p on Thursday after revealing additional ‘extremely encouraging’ drilling results at its Ditau prospect in Botswana. The £6m firm, which was trading up 8.1pc as at writing after leaping 16.4pc on Wednesday, said its second hole at the site had intersected over 320m of intensely altered Karoo sediments above a gabbroic intrusive.

Ditau is part of Kavango’s KSZ project in south-west Botswana, where it is exploring for copper, nickel, and platinum group elements (PGEs) rich sulphide orebodies along a 450km-long magnetic anomaly. According to the firm, the area covered by its KSZ licences displays a geological setting with distinct similarities to that hosting the world-class for copper, nickel, and PGEs orebodies in Siberia.

In Thursday’s update, Kavango said its second hole at Ditau, called DitDDH2, was finally stopped at a depth of 557.34m, offering good core recoveries and minimum deviation. Kalahari sands and sediments extended to 40m, while Karoo sediments continued for a further 438m until an intrusive was encountered at 478.55m.

The business added that geological logging and preliminary geochemical analysis has shown that the 320m zone of intensely altered rock was intersected before hitting the intrusive. Half core from this zone has been cut and sampled at 1m intervals and sent to Australia for assay.

Although Kavango cannot yet determine indicative values for gold, silver, and PGEs, it said initial results suggest elevated values for cobalt, zinc, nickel, and copper. Meanwhile, it added that the core also appeared to contain high levels of rare earth elements. The organisation will assess further drilling plans once it has received and interpreted assay values.

Kavango added that Thursday’s zone of intensely altered rock was similar to that encountered at its first hole – DitDDH1 – back in March. This met a 200m zone of intensely altered rock above the conductive drill target.  It also showed significant sulphide alteration together with indicative cobalt values of up to 0.9pc and a weighted average of 0.2pc cobalt over 70m as well as elevated copper, zinc, lead and nickel values.

On Thursday, Kavango’s chief executive Michael Foster said: ‘We are extremely encouraged that the geophysics, geochemistry and the initial drilling which we have now completed at Ditau have been very successful in predicting a prospective hydrothermal system under complete cover.’

He added that the extensive system displays essential ingredients for one or more mineral deposit. These include intrusives for heat and metal source, receptive overlying sediments with accompanying alteration, and anomalous metal values.

‘Assays are eagerly awaited and will be announced to the market as soon as they become available. The Company will then be in a position to compile a 3-D model, with the extensive information we now have, to understand fully the potential of Ditau,’ he added.

Kavango’s co-founder Mike Moles recently authored a piece for MiningMaven on how these copper, nickel, and platinum group element-rich sulphide orebodies occur and why the firm is keen to locate them.  To read it, please click here.

Author: Daniel Flynn

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

The Author has not been paid to produce this piece by the company or companies mentioned above.

Catalyst Information Services Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and Catalyst Information Services Ltd are not responsible for its content or accuracy and do not share the views of the author.  News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

  1. Armadale Capital highlights strong graphite market conditions as Mahenge Liandue progress continues (ACP)
  2. Jangada Mines mired in the AIM vortex, can it break free? (JAN)
  3. African Battery to enter Botswana with ‘transformative’ acquisition and earn-in agreement (ABM)
  4. Forum Energy powers forward following $30m option agreement with Rio Tinto Exploration (FMC)
  5. SolGold discovers large copper/gold system at Chical in busy week for newsflow (SOLG)
  6. Thor Mining continues drilling hot streak with further tungsten and copper intersections at Bonya (THR)
  7. US senator lays out plans to boost domestic battery metal miners with streamlined regulation
  8. African Battery announces exploration progress in the DRC (ABM)
  9. Complex “alternative” financing for Sirius Minerals unsettles market (SXX)
  10. Emmerson announces initial Khemisset gas deal with leading local supplier (EML)
  11. MetalNRG to acquire up to 75pc of Mkango Resources’ Thambani uranium licence (MNRG, MKA)
  12. Armadale Capital rises as Mahenge Liandu DFS progresses (ACP)
  13. Global Energy Metals pays bond to begin exploration work in Nevada (GEMC)
  14. Sirius Minerals rises after landing crucial European fertiliser distribution deal (SXX)
  15. Armadale Capital on its plans to take the EV sector by storm with market-leading graphite grades in Tanzania (ACP)
  16. Metals Exploration set back by funding constraints at Philippines gold project (MTL)
  17. An introduction to magmatic sulphide orebodies with Kavango Resources co-founder Mike Moles
  18. Hummingbird Resources maintains production guidance but costs rise due to problems at pits (HUM)
  19. MiningMaven Podcast 102 with Matt Bull Technical Director at Armadale Capital (ACP)
  20. Thor aims to add further potential to Molyhil with drilling at Bonya now underway (THR)

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