What the Brokers Say
WHAT THE BROKERS SAY: Interesting news and views from across the Resource Analyst universe.
Auroch Minerals (ASX: AOU)
Auroch Minerals’ (ASX: AOU) Manica gold project hosts a significant JORC Resource of 48.9 million tonnes at 1.79 grams per tonne gold for 2.82 million ounces.
The company now has put in place a clear three stage strategy which envisages mining the non-refractory component of the ore body first, providing the framework and cash flow necessary to advance the larger and potentially more lucrative refractory project.
A DFS is underway with the company targeting first production as early as Q4 2015.
The Manica project, located in Mozambique, hosts its current JORC Resource at four nearby deposits.
Approximately 90 per cent of the resource is hosted within sulphide ore zones (refractory) while the remaining (approx.) 10 per cent of the resource (approx. 258,000 ounces) is hosted within free milling, transitional or oxide (non-refractory) ore zones.
It is these non-refractory ore zones which provide a near term path to production.
Auroch recently updated the 2013 Scoping Study to reflect a new 3 Stage strategy which envisages initial mining and processing of the non-refractory ore zones at various satellite deposits, followed by an expansion to process the larger and potentially more lucrative refractory ore zones.
Manica is located on a 25 year mining lease and already well serviced by local infrastructure such as telecommunications, local airport, roads, rail, power and water, minimising the upfront capital costs and time line to production.
Auroch is well advanced with metallurgical test work and infill drill campaigns required for the DFS, which is being supported by a ZAR 8M (approx. A$870,000) grant from the Department of Trade and Industry of South Africa.
Importantly, this grant now opens up the potential to receive further funding on a project level from other South African based financiers.
Website: www.breakawayresearch.com
PLD Corporation (ASX: PLD)
PLD Corporation is an early stage nickel-copper exploration company with exposure to a highly prospective project located in the Albany-Fraser belt of Western Australia.
Shallow RAB drilling at two targets (of 36 identified) demonstrate a geological setting considered directly analogous to the Nova-Bollinger discovery, also located within the Albany-Fraser Belt.
Upcoming drilling provides opportunity for positive news flow and a substantial valuation re-rating.
PLD Corporation (ASX: PLD) has entered into binding option agreements for an exclusive 12 month period to acquire a 90 per cent interest in the Rocky Gully nickel-copper project (comprising 3 tenements), located in the southern corner of the Albany-Fraser Belt from ASX-listed Heron Resources.
A further option agreement was signed with a private group for a 100 per cent interest in a contiguous Exploration Licence Application (with both option agreements now covering four licences).
PLD has already made non-refundable payments totalling $80,000 to secure the option agreements and, should the company elect to exercise, it will pay a further $280,000 (or 28.75 million PLD shares issued at 0.8 cents) to Heron and 5 million shares to the private group (at 1 cent).
Heron will retain a 10 per cent interest in 3 licences and a Net Smelter Royalty (NSR) of 1.5 per cent.
The Rocky Gully project hosts 10 ‘priority’ nickel-copper targets, however, the two of most significance are the ‘M19’ and ‘M20’ prospects.
Historical shallow RAB drilling intersected strongly anomalous nickel-copper zones within lateritic horizons in a setting that is considered directly analogous to that of Sirius’s Nova-Bollinger discovery.
An upcoming RC drill campaign has been designed to test these highly prospective nickel-copper targets, with first results expected before the end of June 2014.
PLD has a management team with extensive experience in exploration, development and mining, providing confidence of stringent exploration.
With an EV of $1.9 million, PLD is highly leveraged to any positive news flow.
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.