ECR Minerals’ Victoria programmes “fully funded” thanks to placing (ECR)

ECR Minerals (LON: ECR) announced a placing on Thursday that is set to boost drilling and exploration at its gold projects in Victoria, Australia.

Funds from the £2.0 million raise will be used for the company’s two wholly-owned projects in Victoria, Bailieston and Creswick.

The placing has a price per share of 2.2p, with investors receiving one warrant for every two placing shares. These warrants allow the holder to subscribe for shares at 3.75p for a 24-month period. If all warrants are exercised, ECR will receive around £1.7 million in proceeds.

Right now, ECR’s own diamond drill rig is continuing in the HR3 area of Bailieston, having drilled five holes so far. A sixth hole is currently being drilled, with the firm planning to report assay results from initial results later in April.

Already, visible gold has been noted in the first hole drilled at HR3’s Byron prospect, as reported in February.

Bailieston is targeting gold mineralisation of the Melbourne Zone, the same zone where Kirkland Lake Gold’s (NYSE: KL | TSE: KL | ASX: KLA) “world-class” Fosterville mine is located.

According to ECR, Bailieston is “at the epicentre of the current gold exploration boom in Victoria”, since it is close to Fosterville and has seen the recent arrival of Newmont Exploration to the district. Newmont has applied for ground immediately to the north of ECR’s Black Cat high-priority prospect.

Bailieston is around 150 kilometres north of Melbourne, Victoria’s state capital, and has “good road access”. Previous reverse circulation drilling at Bailieston’s Blue Moon prospect in 2019 intersected 2 metres at 17.87 grams per ton (g/t) of gold from 57 metres down hole and 3 metres at 3.88 g/t gold from 170 metres down hole.

Creswick, ECR’s other 100%-owned Victoria project, “is considered highly prospective for gold mineralisation”. Reverse circulation drilling there in 2019 completes 17 holes, total. Results from nine of these holes ranged from 0.6g/t gold to 44.63 g/t gold.

As well as funding efforts at the two prospects, the £2.0 million will also be put towards working capital purposes.

Chief executive Craig Brown said net proceeds of the placing will boost the firm’s cash position to more than £5.8 million.

Brown added that, as well as “funding a modest expansion of our operational capabilities at our Bendigo HQ in Central Victoria” the money raised will also let ECR drive hard towards establishing a maiden JORC compliant Bailieston gold resource alongside further drilling at Creswick.

Not only that, but the funds will also give the firm enough “financial flexibility” to evaluate possible “new opportunities” that may arise.

“We are now fully funded for these programmes and don’t envisage requiring additional equity financing for quite some time,” Brown concluded.

Author: Anna Farley

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

MiningMaven 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 MiningMaven Ltd are not responsible for the article's 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 commences Wollaston gravity survey amid excellent uranium outlook

Forum Energy Metals (CVE: FMC | OTCMKTS: FDCFF) has begun a gravity survey on its Wollaston uranium project, it revealed Wednesday, with a very promising outlook for this important element.

The project is located in Saskatchewan, Canada and is excellently situated. Wollaston is just 10 kilometres (“km”) from Cameco’s (NYSE: CCJ | TSE: CCO | FRA: CJ6) Rabbit Lake uranium mill. The project is also immediately east of an all-weather road to the McClean Lake uranium processing plant owned by Orano Canada.

Forum staked its claims on Wollaston less than a year ago and is already seeing great things. So far historic drilling, geophysics, and prospecting have outlined more than 30km of prospective conductive trends. These efforts have also found a number of “unexplained uranium boulder trains on surface” plus various drill targets, which have yet to be tested.

Ken Wheatley, the company’s vice president of exploration, explained that the gravity survey has been “designed to detect areas of alteration within north-south bends along a number of electromagnetic (“EM”) conductors on the project.”

Wheatley said alteration halos can be formed when uranium deposits are created along EM conductors. He added that, as Wollaston is just outside the Athabasca sandstone basin, “alteration halos will be limited to the basement lithologies”. The result of this will be “a much tighter target for drilling”.

The Athabasca basin itself is the globe’s most valuable uranium real estate, containing all the world’s highest grade and richest uranium mines. Saskatchewan itself supplies more than 20% of total yearly uranium mine production.

The company intends to take around 2,000 readings at 100 metre by 100 metre spacings on two priority grids. The target mineralisation at Wollaston is “shallow, basement-hosted uranium” like the Rabbit Lake site’s Eagle Point deposit.

The Rabbit Lake mine site is located 25km from Wollaston, with its Eagle Point deposit containing 140 million pounds of uranium.

Uranium prices are set to climb, with Morgan Stanley having forecast a rise to $48 per pound by 2024, from $28.50. The pandemic hurt supply more than demand and, as inventories shrink, the price is set to increase.

In 2020, global nuclear power capacity shrank by 2.7 gigawatts (“GW”), but Morgan Stanley expects a net gain of 8GW in 20201 thanks to new plants coming online.

China, especially, is aiming to ramp up its nuclear energy capacity to 70 GW in 2025 from 2020’s 48GW.

Moreover, an expert panel has recommended that the EU class nuclear power as a green investment, an excellent sign for the element’s future – and a great sign for Forum too.

With the future of nuclear looking bright, and Forum’s Wollaston so full of promise, the company looks to be on the path to success.

Author: Anna Farley

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

MiningMaven 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 MiningMaven Ltd are not responsible for the article's 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 enters emerging European battery hub with Rana investment (GEMC, GBLEF, 5GE1)

Global Energy Metals (TSXV:GEMC | OTC:GBLEF | FSE:5GE1) has now signed a definitive agreement to make a strategic investment in Norway’s Råna nickel-copper-cobalt project, securing its place in a country at the forefront of the green revolution.

Råna contains Bruvann, a past-producing nickel mine, with 9.15 million tonnes of remaining resources. The mine is located within northern Norway’s Råna mafic-ultramafic intrusion and was operated between 1989 and 2002 when the average nickel price was less than $4 per pound.

For comparison, the daily metal spot price for Nickel at the start of April was more than $7 per pound. Moreover, nickel is a cornerstone metalfor many battery types, with most new battery types making use of the element.

Along with its other elements like cobalt and copper, Råna is clearly a future source of material that can be used for rechargeable batteries.

As part of the deal, GEMC is to acquire a 1% royalty, from royalty holder Chincherinchee Nominee, on net smelter returns. A letter of intent for the deal was announced in February.

In exchange for a 10% interest and 1% net smelter returns, GEMC has agreed to issue 3.3 million shares. It is not responsible for project costs until vendor Scandinavian Resource Holdings incurs more than C$1.5 million in project expenditure.

Either Chincherinchee or Scandinavian Resource have the right to buy half the net smelter returns for C$1.0 million before commercial production begins.

The definitive agreement is subject to receiving all necessary approvals and third-party consents.

Given that there are only “a limited number of quality nickel sulphide projects available worldwide”. Råna appears particularly enticing – a drill-ready class-1 nickel opportunities with low capital expenditure plus considerable “mining potential and exploration upside”.

As a battery minerals investor, Norway is a great entry point for GEMC into Europe. The country has, for example, vowed to ban the sale of fossil fuel-powered cars by 2025 – ahead of Britain’s 2030 target – with around 60% of Norway’s monthly vehicle sales already fully electric.

Chief executive Mitchell Smith said Råna “is located in one of the world’s most opportune nickel districts”.

The project licence area is 25 square kilometres, with Råna located close to facilities currently being developed by environmentally friendly lithium-ion battery company FREYR.

Not only that, but Smith highlighted Råna’s highly advantageous position being both close to, and a possible future supply source for, “an emerging European battery manufacturing hub” located in Norway and the Scandinavian Peninsula as a whole.

This is a fantastic entry to Europe for GEMC, which already has a number of investments elsewhere. These include a 100% interest in the Millennium cobalt project plus two nearby cobalt assets in Queensland, Australia as well as projects in North America.

Among these are an 85% interest in the Lovelock Mine and Treasure Box project in Nevada and 70% ownership of the Werner Lake cobalt project in Ontario, Canada.

In March, GEMC signed a letter of intent to acquire a 50% interest in three battery metals projects from DG Resource Management. Of these, two – Chance Lake and Amiral – are in Quebec, and the other is Monument Peak in Idaho.

According to Smith, the definitive agreement marks a “major milestone” for GEMC and represents “an active step” forward in its journey towards “serving the green energy value chain”.

Author: Anna Farley

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

MiningMaven 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 MiningMaven Ltd are not responsible for the article's 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

 

Power Metal unveils plan for deep diamond drilling at Haneti project (POW)

Power Metal Resources (LON:POW) revealed Wednesday that, on the back of a maiden rotary air blast drill programme at Haneti, the project will move to the next step of deep diamond drilling.

The company has 35% ownership interest in Haneti, a platinum group metals (“PGM”) project in Tanzania, while Katoro Gold (LON:KAT) holds the other 65%.

The now complete 1,965 metre, 50-hole, shallow rotary air blast (“RAB”) programme took place at the Mihanza Hill and Mwaka Hill targets. Results have now been received from SGS Laboratories.

On the basis of this, Power Metal and Katoro have opted for a maiden diamond drilling programme testing for nickel and PGM sulphide mineralisation at depth. This, too, will take place at the Mihanza Hill and Mwaka Hill targets.

Nickel is used in lithium-ion batteries, with demand set to grow along with the electronic vehicle (“EV”) market. It is also used to make stainless steel. PGMs could also end up in the EV space, while the PGM outlook overall is one of limited supply amid growing demand.

The goal of the RAB drilling was to determine the extent of “ultramafic intrusive geology” found beneath the “nickel enriched laterite and regolith cover” for two transects of around 1 kilometre in length at the targets. The transects are orientated across time-domain electromagnetic ("TDEM") geophysics anomalies already identified.

Because the shallow RAB drilling took place on deeply weathered rocks, it was not able to delineate “fresh un-altered rock or primary nickel sulphide mineralisation” but did assist in further constraining the target area for diamond drilling.

Notably, the surface mapping that took place at the time found “small scale nickel-copper-magnetite gossanous veins” located within a new Mihanza Hill outcrop. According to the geological team, this is evidence of potential primary nickel rich sulphide mineralisation in the underlying ultramafic body.

The diamond drilling is intended to reach a depth of 400 metres, at minimum, so as to intersect the TDEM and magnetic geophysics anomalies as well as testing for primary sulphide mineralisation. This drilling will also be used to gather fresh unaltered rock samples to be analysed.

As chief executive Paul Johnson explained, the additional geological information from the shallow drilling, as well as the “discovery of new gossanous nickel-copper-magnetite veining at Mihanza Hill”, made a clear case for deep diamond drilling at Haneti.

Johnson noted that this drilling will help determine the possibility of “economic nickel sulphide mineralisation” at the project.

Power Metal said more details of the programme, including a start date, will follow soon.

Author: Anna Farley

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 not been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article's 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

Red Rock boss Bell says firm in better position than ever to increase liquidity (RRR)

Red Rock Resources (LON: RRR) chair Andrew Bell said Tuesday the company was in a better position than ever to improve liquidity, paving the way for evolution to a mid-tier exploration and production firm.

 

In its half-year ended December 31, Red Rock’s total equity climbed a highly encouraging 20% to £16.7 million, after rising 54% over the previous six months. 

Not only that, but there was a £2.3 million increase in current and non-current assets over the half-year while liabilities dropped by £530,000. Red Rock has, since December, paid out £1.4 million to Kansai Mining.

“If we want to advance to become a mid-tier mineral exploration and production company, we need from here to give increasing importance to building and maintaining a high level of liquidity. We are in a better position to do so than we have ever been,” said Bell.

The value of Red Rock’s marketable securities and cash now approaches £4 million. This has been higher of late and is expected to rise by its year end in June thanks to dividends from Jupiter Mines, as well as Juno Minerals’ in specie share distribution and floatation.

The company’s value is also set to rise thanks to “the dynamism of Power Metal Resources”. Red Rock owns 25.0 million shares in Power Metal (LON: POW), as well as another 25.0 million warrants. The two are partners in the Red Rock Australasia joint venture (“JV”), which holds a major position in Australia’s highly lucrative Victoria goldfields.

Victoria is where Kirkland Lake Gold’s (NYSE:KL) astonishing Fosterville mine is located, the highest grade and lowest cost gold mine in the world.

Red Rock and Power Metal are planning an IPO for Red Rock Australasia. Bell expects this will crystallise the value of Red Rock’s holding in the JV to result in “a valuation uplift significant in relation to our market value”. The JV is split almost evenly, with Red Rock holding the slightly higher 50.1% stake.

Earlier this month, the JV obtained another two licences, bringing the total to five, with more expected soon. All licences so far are located in Red Rock Australasia’s high priority areas, where the JV is already developing its early drill targets. The 11 other JV licences are in the final processing stage.

Juno and Red Rock Australasia are not even the only upcoming IPOs in Red Rock’s portfolio, with Elephant Oil also poised for a market listing. Bell pointed out that if results from Juno’s passive seismic two years ago in onshore Benin are fulfilled “to any degree” then Juno could become one of Red Rock’s significant assets.

The company’s liquidity is improving already in its second half, with the company aiming to hit a £20 million cash and liquid investments target in the medium term.

Author: Anna Farley

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 not been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article's 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

Loss for the six months amounted to £430,000, swinging from a £337,000 profit the prior year. This results from higher administration costs, including employment costs, as a partial result of Red Rock Australasia’s elevated activity level amid increasing land holdings plus preparations for exploration and listing.

Lower dividends from Jupiter Mining also played into the interim loss.

Big things ahead

Red Rock has a variety of exciting plans lined up. For example, the firm is preparing to drill short reverse circulation holes at its Luanshimba copper-cobalt prospect, located in the DRC, once geophysics is done and ground conditions allow.

Elsewhere, in Kenya, the company is finalising its drill programme to follow up a recently announced JORC resource while in Australia it has started active exploration with the first targets set for drilling later this year.

“We live in volatile times” said Bell, noting the need to prepare “for sieges as well as marches”. While there appear to be promising opportunities in all directions for Red Rock, there are also grounds for caution.

Bell explained that while this could be the time for “move up by an order of magnitude to a new level” thanks to exciting project and a strong market, it is important for Red Rock to keep its footing and not put “the hard won gains of the last year” at risk.