Thor Mining pushes forward on strong tungsten intercepts at Bonya (THR)

Thor Mining (LSE:THR) rose 7.7pc to hit its highest level this month on Monday morning after announcing a series of strong tungsten grades from the White Violet deposit at its Bonya project. A second drilling round at the asset, which is adjacent to Thor’s flagship Molyhil project in Australia’s Northern Territory, intersected 20m at 0.24pc tungsten trioxide from 2m, including 8m at 0.38pc copper from 3m. Other highlights included 8m at 0.24pc tungsten trioxide, 14m at 0.23pc tungsten trioxide, and 2pc at 0.71pc tungsten trioxide from 11m.

The work, which was managed and 40pc funded by Thor alongside 60pc project owner Arafura Resources, has extended tungsten-bearing mineralisation at White Violet by 40m to both the east and the west. Total strike length now comes in at 120m, while vertical depth now hits 110m. Mick Billing, executive chairman of Thor, which was trading at 0.28p as at writing, said it was ‘very exciting’ to confirm both consistencies of mineralisation and extensions to strike at White Violet, adding:

‘Tungsten grades continue to be positive, and it is also pleasing to see further evidence of copper mineralisation. The key Thor driver for drilling at Bonya is to add to the Molyhil area mining inventory with an objective of a minimum of ten years total open pit mining and processing.  These results, subject to assay and follow up resource work, should, we expect, go quite some way towards meeting that objective.

The rig used to drill the holes has now moved on to another Bonya deposit called Samarkand for the second part of the Thor/Arafura JV’s current drilling programme. This work aims to test the extent of the two deposits to help create create reportable mineral resource estimates.

Bonya hosts 13 outcropping tungsten deposits that currently carry an exploration target of 3-4.9MMts at 0.3-05pc tungsten trioxide. The area also hosts an inferred copper resources of 230,000ts for 4,600ts of copper.  Thor plans to extract and process this copper at Molyhil for a ‘minimal additional cost’. Despite the licence area being part of a known tungsten province, no tungsten drilling had taken place since the 1970s. Until now.

Thor and Arafura completed an initial 2,500m reverse circulation drilling programme across Bonya earlier this year. The work confirmed strong tungsten and copper mineralisation across several deposits, with particularly strong results coming from two areas called White Violet and Samarkand. Highlights from White Violet included 27m at 0.29pc tungsten trioxide from 35m, 12m at 0.67pc tungsten trioxide from 46m and 29m at 0.7pc tungsten trioxide from 81m, including 13m at 1.13pc tungsten trioxide.   Meanwhile, top copper intersections at Samarkand included 5m at 0.36pc copper, 12m at 0.77pc copper, and 7m at 1.23pc copper.

Thor hopes that Bonya could add ‘considerably’ to Molyhil’s life, scale, and economic outcomes. To recap, Molyhil is a tungsten and molybdenum asset located around 320km east of Alice Springs. The project is formed from two adjacent magnetite skarn bodies that contain economic amounts of scheelite, molybdenite and magnetite mineralisation.

Before Thor’s involvement, little work had taken place at Molyhil bar a brief period of mining at its southern ore body during the late 1970s and early 1980s. Thor has built upon these efforts considerably, completing resource extension drilling and metallurgical test work. It has also made a great deal of permitting progress, carrying out technical, environmental and social studies as well as securing environmental approvals and land agreements with traditional owners.

Thanks to Thor’s work, Molyhil is now one of the higher-grade open-pit tungsten in the western world. A mineral resource estimate in 2014 gave it a complete resource of 4.71Mt for 13,100ts of tungsten trioxide and 6,220ts of molybdenum. To build on this potential, the firm completed a feasibility study in August last year. The work gave Molyhil a post-tax NPV of $101m, an IRR of 59pc, and a seven-year open pit mine life delivering annual production of 120,000mtu tungsten trioxide and 450t of molybdenum – both in concentrate.  Meanwhile, opex came in at just $90/mtu.

Thor also believes that Molyhil could deliver a great deal of upside, through both operational enhancements and the opportunity to pursue satellite resources and underground production. Indeed, the firm has demonstrated that high molybdenum and tungsten trioxide continue below the pit floor. To read more about Molyhil and Bonya, including details on ongoing funding talks, please see our recent project update here.

Author: Daniel Flynn

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

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

MiningMaven 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 MiningMaven 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.

Global Energy Metals highlights electrification of vehicles as a ‘once in a generation investment opportunity’

Canadian cobalt developer Global Energy Metals (TSX.V:GEMC) issued a corporate update on Wednesday that saw it highlight the rise of electric vehicles (EVs) as ‘a once in a generation investment opportunity’.

The business, which has built a portfolio of cobalt projects in stable jurisdictions, said the transportation and energy storage industries are set to undergo a ‘profound transformation’ over the coming decades. An ongoing shift from fossil-fuelled to electric-powered vehicles is being accelerated by considerable amounts of investment from businesses and consumers alike. According to Global Energy, cobalt is critical to the continuation of this trend, with demand expected to increase substantially due to its heavy use in lithium-ion batteries.

However, the firm does not believe that supply will be able to keep up with this demand. This is because much of the world’s cobalt is sourced from the DRC- a nation known for its conflict, artisanal mining, and human rights violations. Likewise, cobalt is often mined as a byproduct, meaning supply is very much tied to conditions in the market for other metals such as nickel and copper.

As such, Global Energy’s president and CEO Mitchell Smith said the raw materials and companies powering the shift towards the electrification of vehicles present ‘a once in a generation investment opportunity’, adding:

‘Lithium-ion batteries are at the heart of the current and future energy transition. Batteries that are powered by cobalt are critical to the future of the eMobility revolution. To get exposure to the battery and energy storage opportunity, maybe the biggest investment growth opportunity there is at the moment, one needs to look at the companies securing the metals critical to the space. Global Energy offers that exposure at a basement level entry cost.’

Global Energy also provided a recap of its operations over the last six months. The period notably saw the firm take 100pc ownership of its flagship Millennium cobalt project in the Mount Isa region of Queensland, Australia. As part of the deal, the firm also took on two exploration assets called Mt. Dorothy and Cobalt Ridge, increasing its land position in Queensland considerably.

Following the deal, which was completed with ASX-listed business Hammer Metals, Global Energy filed a technical report for Millennium highlights its upside opportunity and resource expansion potential. It also formed a partnership with industry peer Cobalt Blue Holdings to investigate the site’s cobalt, copper, and gold recovery potential in full. The results of this work are pending.

Elsewhere, Global Energy has also taken significant steps forward at its Nevada-based cobalt, nickel, and copper properties Lovelock and Treasure Box. In early summer, the firm began an exploration program including airborne surveying, digital modelling, underground sampling and mapping, and fieldwork at the assets – which are located near Tesla’s Gigafactory.

It also acquired the right to use technology owned by TSX-listed Canada Cobalt Works called RE-20X at the properties. This skips the normal smelting process to provide high recovery rates for cobalt, nickel, and copper to ultimately create battery-grade cobalt sulphate.

Finally, the six-month period saw Global Energy attend several key industry events around the world in a bid to spread its message. These included the 2019 China Mining Summit and CRU Ryan’s Ferroalloys Conference.

Author: Daniel Flynn

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

MiningMaven Ltd, does not own a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, has been paid for the production of this piece by the company or companies mentioned above.

MiningMaven Ltd is not responsible for its content or accuracy and does 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

REPORT: Horizonte Minerals- Accelerating plans to bring the Araguaia ferronickel project into production (HZM)

Against a backdrop of surging nickel prices (up over 50% year-to-date), Horizonte Minerals (LSE:HZM) has made great progress at its wholly-owned Araguaia nickel project in Brazil over the course of 2019.

Araguaia is a tier one mining asset with a high-grade, scalable resource that Horizonte plans to develop as Brazil’s next major source of production for ferronickel – an alloy that contains c.30pc nickel and c.70pc iron.

With first production scheduled for 2022, MiningMaven has taken a deep dive into Araguaia, its background, and Horizonte’s two stage expansion plans as well as looking at why the project’s economics are so appealing.

Please click here to read our report in full.

 

 

 

Armadale Capital: Advancing one of the world’s highest-grading, large-flake graphite resources (ACP)

Armadale Capital’s (LSE:ACP) primary interest is its 100pc-owned Mahenge Liandu project in Tanzania– one of the world’s highest-grading, large-flake graphite resources.

Throughout summer 2019, the company’s share price has soared as work completed as part of an ongoing feasibility study (FS) has continued to demonstrate the asset’s market-leading grades and flake size.

All the while, Armadale’s efforts to secure offtake financing arrangements for its project have continued against a backdrop of improving demand for graphite - a key element in the production of electric vehicle batteries.

With several of Armadale’s peers securing highly attractive terms for the offtake of graphite produced at their projects, the economic fundamentals used to date at Mahenge Liandu are looking increasingly conservative.

In the report below, we have analysed the opportunity for shareholder value creation at the organisation in detail.

Please click here to download and read the report in full.