RIU 2024 Sydney Resources Roundup DAY 3 Highlights

THE CONFERENCE CALLER: A big final stanza for Wally Graham and The Resources Roadhouse on Day Three to bring the 2024 hashtag RIU Sydney Resources Roundup to a close.

RIU Sydney Resources Roundup 2024 DAY 2 Highlights

THE CONFERENCE CALLER: Wally Graham of The Resources Roadhouse continues his tour of the 2024 RIU Sydney Resources Roundup.

RIU Sydney Resources Roundup Day 1 Highlights

THE CONFERENCE CALLER: Wally Graham of The Resources Roadhouse trawls the floor on Day One of the 2024 RIU Sydney Resources Roundup to catch up with a diverse range of exhibiting companies.

Antipa Minerals Encounters High-Grade Gold Intersections at Minyari Project GEO-01 Target

THE DRILL SERGEANT: Antipa Minerals (ASX: AZY) reported results from the first six holes of recent CY2024 Phase 1 drilling at the company’s 100 per cent-owned Minyari Dome gold-copper project in the Paterson Province of Western Australia.

Antipa Minerals has completed the initial 39 reverse circulation (RC) holes of the 71-hole drilling program, from which assay results for the first six RC holes drilled at the GEO-01 target returned thick zones of near surface, potentially open pittable, high-grade gold mineralisation.

High-grade intersections from the first six drill holes include:

66 metres at 1.4 grams per tonne gold and 0.04 per cent copper from 118m down hole in, including 6m at 1.9 g/t gold and 0.11 per cent copper from 118m down hole, and 17m at 4.4 g/t gold from 157m down hole, including 4m at 15.5 g/t gold from 168m;

26m at 1.3 g/t gold from 37m down hole, including 6m at 2.4 g/t gold from 37m down hole and 4m at 2.4 g/t gold from 59m down hole, and
20m at 2.4 g/t gold from 114m down hole, including 11m at 3.4 g/t gold from 122m down hole, including 3m at 4.8 g/t gold from 124m; and

39m at 1g/t gold from 71m down hole, including 5m at 2g/t gold from 71m down hole and 2m at 2.8g/t gold from 94m downhole.

“Our Phase 1 CY2024 drill program is off to a great start, with fantastic initial results returned from the first six holes of resource delineation drilling at GEO-01,” Antipa Minerals managing director Roger Mason said in the company’s ASX announcement.

“Grades of up to one metre at 28.9 grams per tonne gold have been returned, with multiple intersections of near surface high-grade mineralisation.

“Importantly, these results show an increase in the thickness of the main zone of mineralisation.

“With GEO-01 open in most directions, it continues to shape up as a substantial shallow, maiden resource opportunity.

“We look forward to receiving the next batch of GEO-01 results in the coming weeks.”




Meteoric Resources Increases Soberbo Mining Licence Mineral Resource

THE DRILL SERGEANT: Meteoric Resources (ASX: MEI) released an substantial Mineral Resources Estimate (MRE) update for the company’s Caldeira rare earth element (REE) project in Minas Gerais Brazil.

Meteoric Resources provided a 150 per cent increase in the Resource estimate at the project’s Soberbo Mining Licence that has increased the company’ Global Mineral Resources to 545 million tonnes at 2,561 parts per million (ppm) total rare earth oxides (TREO).

The Soberbo ML total Indicated and Inferred Resources have come in at 229 million tonnes at 2,601ppm TREO (1,000ppm cut-off) with 645ppm (24.8%) magnetic rare earth oxides (MREO), including 158 million tonnes at 3,058ppm TREO (2,000 ppm cut-off).

The estimate includes the first Indicated Resources for the Caldeira project of 86 million tonnes at 2,730 ppm TREO (1,000ppm cut-off) defined at the Soberbo ML.

Meteoric’s updated Global Resource Estimate for Caldeira REE project has now increased 33 per cent to 545 million tonnes at 2,561ppm TREO (1,000ppm cut off) with 24.1 per cent MREO.

“Congratulations to the Brazil Exploration team on an outstanding result,” Meteoric Resources executive chairman Dr Andrew Tunks said in the company’s ASX announcement.

“Using Meteoric’s in-house drilling capacity we have quickly and efficiently tested the true depth extent of the clay hosted mineralisation at Soberbo with spectacular growth in the total resource and our first Indicated Resource which will feed directly into our Scoping Study.

“The staggering size of the project has again been illustrated and when combined with best in class grades and recoveries speaks to the potential of the Caldeira project to become a significant long life supplier of rare earths crucial to global electrification.”




Ora Gold Intersects New High-Grade Gold at Crown Prince

THE DRILL SERGEANT: Ora Gold (ASX: OAU) reported RC drilling results from the Crown Prince prospect within the company’s Garden Gully gold project near Meekatharra in Western Australia.

Ora Gold has declared the advanced Crown Prince prospect to be a focus area for it to prove up development ready ounces.

Crown Prince comprises the Southeastern and Main Zones as mineralised zones that are close to each other and commence at shallow depths.

The latest RC results from the Southeastern Zone have delivered high-grade gold mineralisation at the eastern end of the ore body and well down dip from previously reported intersections, including:

6 metres at 28.8 grams per tonne gold from 163m, including 2m at 76.62g/t gold from 164m below a higher mineralised zone of 6m at 1.78g/t gold from 124m;

10m at 1.91g/ t gold from 208m; and

4m at 2.08g/t Au from 263m.

“Drilling from the Southeastern Zone continues to show the potential for new high-grade zones to be discovered,” Ora Gold CEO Alex Passmore said in the company’s ASX announcement.

“This area of the resource has previously been modelled as modest grade and width.

“We look forward to incorporating these results which show high grades down the profile with good continuity to depth into an updated Crown Prince MRE, which is expected to be finalised in a few months from now.”

Ora Gold has resource development continuing at Crown Prince with new mineralised zones being drilled out in sufficient detail to be included in an updated resource estimate the company anticipates being ready in the middle of the September quarter.

Preliminary project development work has commenced with key consultants appointed for the preparation of a mining proposal for Crown Prince.

Preliminary work on metallurgy, hydrogeology and geotechnical that the company has already completed is being used to expedite the proposal preparation timeline.




Magmatic and Fortescue Chasing Northparkes Lookalike

THE CONFERENCE CALLER: Magmatic Resources (ASX: MAG) is confident it can make the next major copper-gold discovery in Australia. By Kristie Batten

The company has three projects in New South Wales prospective Lachlan Fold Belt where many major miners are also active.

In March, Magmatic’s share price shot up after it welcomed Fortescue (ASX: FMG) as a 19.9 per cent shareholder and partner at its Myall project.

Fortescue can spend up to $14 million over six years to earn up to 75 per cent of Myall.

Speaking at the RIU Sydney Resources Round-up, Magmatic executive chairman David Richardson said Myall shared the same signatures as the Northparkes copper-gold mine, 60 kilometres away.

Northparkes was recently acquired by Evolution Mining for US$475 million.

Richardson said the Myall-Narromine Intrusive Complex was of a similar age, composition and dimensions to the Northparkes Intrusive Complex.

Northparkes has a resource of 628 million tonnes at 0.55 per cent copper and 0.21 grams per tonne gold across 22 porphyry deposits.

Myall has an initial inferred resource of 110 million tonnes at 0.33 per cent copper equivalent for 354,000 tonnes of copper equivalent (CuEq) across two deposits, Corvette and Kingswood.

“We think we can increase that by multiples with our drilling,” Richardson said.

Richardson said only 10 per cent of the Corvette/Kingswood target area had been drilled to date.

Recent drilling results included 875.2m at 0.24 per cent CuEq and 241m at 0.55 per cent CuEq.

The system remain open in all directions.

Fortescue will fund future drilling and the $3.7 million the company invested in Magmatic allows the company to advance its other projects.

Magmatic also holds the Wellington North project, which surrounds Alkane Resources’ 14.7 million ounce gold equivalent Boda deposit, and the Parkes orogenic gold project, 30km along strike from Alkane’s Tomingley gold operation.

Richardson pointed out that 70 per cent of global copper production came from porphyry deposits.

“We think we’re onto another one,” he said.


Meeka Metals Readying for Gold Development

THE CONFERENCE CALLER: Meeka Metals (ASX: MEK) is aiming to be ready to push the button on it’s the development of the company’s Murchison gold project in Western Australia by mid-year. By Kristie Batten

Murchison has a resource of 1.24 million ounces at 3 grams per tonne gold, with over half in the measured and indicated categories.

It comes after Meeka this week updated the resource for its Turnberry open pit deposit to 690,000 ounces at 2 grams per tonne gold.

A prefeasibility study released last year defined an initial 9.3-year operation to produce an average 66,000 ounces per annum of gold.

Using a gold price of $2750 an ounce, the project would generate pre-tax free cashflow of $363 million and has a net present value of $249 million.

At $3000 per ounce, free cashflow increases to $521 million and the NPV grows to $371 million.

“At [the current gold price of] $3500 per ounce, you can go ahead and add another $250 million-odd to that,” Meeka Metals managing director Tim Davidson told the RIU Sydney Resources Round-up.

Capital costs were forecast at $137 million in the PFS, based on the development of a one million tonne per annum mill at Turnberry.

However, the company is now looking at a refurbishment and restart of its existing 500,000 tonnes per annum Andy Well project with the potential to expand the mill.

“We’re looking at options to increase the throughput through the plant,” Davidson said.

A definitive feasibility study is due within a couple of weeks.

Davidson said start-up costs were estimated at $40-45 million.

Meeka is aiming to have final approvals in June and funding in place by July.

“We’re running a process now and we expect to have the funding in place for development in July,” he said.

Davidson said the market was only valuing Meeka’s gold inventory at about $30/oz, compared to recent transactions, which saw ounces changing hands at more than $200/oz.

“Which we feel gives us lots of room to move higher,” he said.


Stellar Resources Busy at Heemskirk Amid Tin Price Spike

THE CONFERENCE CALLER: Stellar Resources’ (ASX: SRZ) new management team is ready to take the Heemskirk project in Tasmania forward after tin recently entered a bull market. By Kristie Batten

Former Oklo Resources managing director Simon Taylor was recently appointed as executive chairman, with his former Oklo colleague, geophysicist Andrew Boyd, becoming executive director.

A scoping study was carried out at Heemskirk in 2019 but Taylor said little work had been done since then.

“We like this asset – it needs a lot more work as far as exploration, geophysics and studies,” Taylor told day two of the RIU Sydney Resources Roundup.

“We’re pretty excited to get the rigs rolling on this project.”

Heemskirk is Australia’s largest undeveloped tin project and the third largest in the world.

The project has an existing resource of 7.48 million tonnes at 1.04 per cent tin for 77,870 tonnes of contained tin.

In gold terms, Taylor said it would equate to 1.2 million ounces.

Almost half of the resource is in the indicated category.

The resource is largely contained across two main deposits, Queen Hill and Severn.

“We also believe there could be some blind bodies that have never been tested,” Taylor said.

The 2019 scoping study looked at a 350,000t per annum standalone operation over 10 years, with ore being trucked to the port of Burnie.

The study was based on a US$20,000 per tonne tin price and US70c exchange rate.

Tin is now trading above US$32,000/t and the exchange rate is US65c.

“We see a lot of upside on our scoping work,” Taylor said.

All-in sustaining costs in the study came in at US$13,100/t, while capital costs were $60 million.

“That’s probably $100-120 million now with escalation,” Taylor said.

Taylor said the company will look at a standalone operation or the potential for toll milling.

The nearby Avebury nickel plant was recently put on care and maintenance.

The updated scoping study is due out in the September quarter and will be a precursor to a prefeasibility study.

Stellar is well funded with $4.1 million cash.

The company recently welcomed Nero Resource Fund onto its register as a 19.5 per cent shareholder.

Taylor said the outlook for tin was strong and described it as the “glue in electronics”.

There are looming deficits in tin as demand grows and supply falls.

A lot of tin production comes from countries like China, Indonesia and Myanmar.

Taylor said as much as 34 per cent of 2024 tin production was in doubt.

“There’s a growing thesis for tin moving forward,” he said.


Rex Minerals Reaching the Pointy End of Hillside Financing

THE CONFERENCE CALLER: Rex Minerals is advancing the funding process for its Hillside copper-gold project on South Australia’s “Copper Coast”. By Kristie Batten

The fully permitted project hosts a substantial resource of 1.9 million tonnes of copper and 1.5 million ounces of gold.

An optimised feasibility study for the first stage of the project was released in December 2022, returning pre-production capital costs of $854 million, a post-tax net present value of $847 million and a post-tax real internal rate of return of 19 per cent.

Speaking at the RIU Sydney Resources Round-up, Rex Minerals executive general manager investor relations and business development Peter Bird pointed out that the study used a copper price of US$3.92 per pound and gold price of US$1610 an ounce.

The copper price is currently trading at US$4.44/lb, while gold is sitting at more than US$2300/oz.

“Clearly the 4.3-year payback period is not getting worse,” Bird said.

The stage one mine plan would produce about 42,000 tonnes of copper per annum and 30,000ozpa of gold over 11 years.

There is the potential for three additional stages which would result in a mine life in excess of 40 years.

“Resources remain open at depth,” Bird said.

“This is going to be around for a very long time.”

In a research note published last week, Euroz Hartleys analyst Mike Millikan described Hillside as “one of the most significant copper-gold developments in Australia”.

Rex raised $22.6 million in the March quarter, welcoming MACH Energy Australia as a cornerstone investor and leaving the company in a strong funding position as it advances project financing.

Rex has also signed a non-binding letter of intent with Nittetsu which would see the Japanese company take an initial 15 per cent stake in the project with the potential to move to 45 per cent.

“We’re in very good company,” Bird said.

Rex has a current enterprise value of $150 million, which Bird said equated to 3.5c/lb of Hillside’s contained copper.

“That’s pretty cheap for a project in South Australia that’s permitted and ready to go,” he said.

He also pointed out the projected rise in copper demand and the lack of quality development projects.

“There’s heaps of demand but not much new metal coming onto the bat.”

Millikan said the electrification thematic would continue to drive copper demand.

“Rex provides excellent leverage to copper price and is also expected to benefit from gold by-product credits for operating cost advantages,” he said.

Euroz calculates Rex’s net asset value at 62c per share, or $1.19 when using the current copper spot price.

The firm has a price target of 65c for Rex, almost triple Tuesday’s closing price of 22c.