What the Analysts Say
WHAT THE ANALYSTS SAY: Interesting news and views from across the Resource Analyst universe.
Website: www.breakawayresearch.com
Company: Thunderlarra limited (ASX: THX)
Recent drilling and geophysics by Thundelarra has reinforced the prospectivity of its key Doolgunna and Allamber projects.
Drilling at the Red Bore area within Doolgunna has supported the Company’s exploration model, and confirmed the depth extension of the known pipes. Geophysical surveying has delineated new targets, as well as supported the exploration model for the underexplored Curara Well tenement.
Recent drilling at Allamber tested a number of geochemical and geological targets, with encouraging results from some, and downgrading others.
Thundelarra has a portfolio of advanced exploration properties, with the flagship being the Doolgunna project, located adjacent to Sandfire Resources’ (ASX: SFR) DeGrussa volcanic-hosted massive sulphide copper-gold operation, which has a current resource of 13.4 million tonnes at 4.7 per cent copper and 1.9 grams per tonne gold.
Recent work by the company has been concentrated at Doolgunna, and in particular the Gossan prospect, with high-grade copper being intersected in structurally controlled mineralised pipes down to 94m depth (and still open), which are interpreted as being offshoots from a larger body at depth; the main exploration target.
The company is also actively exploring its Allamber project, with this area, located over the Pine Creek Orogen in the Northern Territory, being prospective for a range of skarn-hosted base and precious metals, as well as uranium, for which a resource of 1.4 million tonnes at 304ppm uranium has been defined, and which is still open.
Lower priority, but still highly prospective holdings include the uranium prospective Ngalia Basin project and a number of tenements in the East Kimberley region of Western Australia.
Substantial Progress
Thundelarra has made substantial progress on its key Doolgunna (Red Bore and Curara Well) and Allamber (Pine Creek) projects since November 2014.
Work completed subsequent to November has included:
Reverse circulation (RC) drilling at Red Bore (11 holes for 1,432m), testing the Gossan, Impaler and other targets;
Detailed airborne magnetics survey over the Red Bore and Curara Well areas;
Audio magneto-telluric (AMT) surveying over Red Bore and Curara Well;
Downhole electro-magnetic (EM) geophysical surveying on selected Red Bore holes;
3,482m of RC drilling in 21 RC holes at Allamber, testing a number of targets; and
Downhole EM surveying on selected Allamber drillholes.
This work has returned very encouraging results, with further exploration programs now in the planning stage, with drilling expected to commence at Doolgunna in late April/early May, and Allamber later in the year.
Website: www.beerandco.com.au
Company: Syndicated Metals (ASX: SMD)
Syndicated Metals has over 5.9 million tonnes of Resources containing 83,000 tonnes copper, 27,000 ounces gold and over 400,000 ounces silver in its 2,469 square kilometre tenement package N‐W of Cloncurry.
SMD has a JV with CopperChem to supply ore to its recently closed mill.
In January 2015, SMD announced the JV had decided to expand the feasibility study, to increase the volume of mining inventory so the plant could be shifted to near the mine, saving US32 cents per pound in cash costs for minimal capital to SMD.
However first product is delayed by 12 months from the original projection.
First sales delayed
The original plan, when the JV agreement was first announced in September 2013, was for ore from Barbara to be processed through CopperChem’s mill near Cloncurry from 2014 Q4.
That was later revised to completing a feasibility study by end 2014.
Exploration Success
However, the mill closed earlier than originally expected and as SMD found more high‐grade mineralisation, the economics of shifting the processing plant to the mine site became more attractive as mine life increased.
In addition to the exploration target of 2.5 million tonnes to 4 million tonnes below the planned open cut at Barbara, SMD has 225,000 tonnes in Resources at nearby Lillymay, plus a further exploration target of 400,000 tonnes to 800,000 tonnes, and 177,000 tonnes in Resources at the company’s 100 per cent-owned Blue Star project.
SMD is presently undertaking an under‐written rights issue to raise $2 million.
Disclaimer: The above is intended as a guide only. The Roadhouse accepts no responsibility for investments made from this advice, successful or otherwise.
The views, opinions or recommendations of this article do not in any way reflect the views, opinions, recommendations, of The Resources Roadhouse.
The Roadhouse makes no representation or warranty with respect to the accuracy, completeness or currency of the content. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian financial services licensee before making investment decisions.