Caspin Resources in Agreement with ASM to Evaluate Mt Squires REE Potential

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THE BOURSE WHISPERER: Caspin Resources (ASX: CPN) has struck a deal with Australian Strategic Materials (ASX:ASM) to enter a Joint Venture of the rare earth element (REE) rights on Caspin’s Mount Squires project in Western Australia.

Under the terms of the agreement Caspin is to retain a 25 per cent free carried interest in the Mount Squires REE potential and receive milestone payments of up to $1.5 million.

Caspin explained the deal will enable it to maintain focus on nickel, copper and gold at Mount Squires whilst retaining a ‘free carried’ interest (to decision to mine) in the project’s REE potential.

Australian Strategic Materials is lined up to carry out REE metallurgical test work and drilling at Mount Squires over the next 3-9 months, with minimum expenditure commitments to be met by ASM thereafter to progressively earn up to 75 per cent interest in the REE rights.

“We’re excited to be collaborating with ASM on the rare earth opportunity at Mount Squires, a reputable and specialist REE company,” Caspin Resources managing director Greg Miles said in the company’s ASX announcement.

“Caspin will retain exposure to the REE potential without any funding obligation and potentially receive milestone payments.

“This will allow Caspin to maintain its focus on the nickel, copper and gold potential at Mount Squires and other acquisition opportunities.

“We believe that the high proportion of high-value, heavy rare earths, close to surface in an area with no previous exploration for rare earths, sets the Mount Squires REE project apart from its peers.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Wildcat Resources Claims New Tabba Tabba Lithium Discovery

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THE DRILL SERGEANT: Wildcat Resources (ASX: WC8) claimed another lithium discovery at the company’s Tabba Tabba lithium project, near Port Hedland, in the Pilbara region of Western Australia.

Wildcat Resources reported discovery of the Luke pegmatite as well as further results achieved at the Leia pegmatite from ongoing drilling at Tabba Tabba.

The company made the Luke pegmatite discovery, described as “a thick lithium mineralised repetition” while conducting exploration drilling beneath the Leia deposit.

Intercepts include:

TARC111D
41 metres at 1 per cent lithium oxide (Li2O) from 267m (downhole width), including 24m at 1.3 per cent Li2O from 276m within 80.3m at 0.8 per cent Li2O from 232.7m.

Diamond drilling at Leia continued to return impressive results including:

TADD015
68m at 1.4 per cent Li2O from 337m (est. true width), including 50m at 1.5 per cent Li2O from 338m; and

TADD011
58.7m at 1.3 per cent Li2O from 333.1m (est. true width), including 11.8m at 2.3 per cent Li2O from 362.2m.

Wildcat said the discovery of Luke had delivered much encouragement for the company to continue its aggressive exploration campaign across the Tabba Tabba tenements.

“The blind discovery of another thick mineralised pegmatite at Luke confirms the ongoing exploration potential at Tabba Tabba,” Wildcat Resources geology manager Torrin Rowe said in the company’s ASX announcement.

“It is pleasing to see our exploration team’s efforts in developing and testing geological theories being rewarded.

“We look forward to delineating the scale of the exciting Luke pegmatite and continuing to test the developing exploration model with the aim of making further discoveries.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Gold Companies on the Bill at Roadhouse Roadshow

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THE CONFERENCE CALLER: The Resources Roadhouse will be on the road again in a couple of weeks. This time we will be in Melbourne presenting our inaugural Resources Roadhouse Roadshow. Here’s a quick bite of two of the companies that will be presenting.

Adelong Gold (ASX: ADG) has declared itself as being on track to becoming a mineral producer at the company’s Adelong Goldfield project in New South Wales.

Adelong Gold acquired the project in May 2020 that currently hosts a JORC 2012-compliant Resource of 188,000 ounces.

The most recent news to filter out of the project was completion of a soil sampling program to the north of the Currajong deposit that had been designed to test an area to the north-west of the Adelong Mill and resulted in defining several new drill targets.

The soil sampling program was carried out to the north of the Currajong deposit, with 191 samples taken on 10 lines covering a one kilometre strike length.

Results included five samples of greater than one gram per tonne gold with a peak result of 1.75g/t gold whilst highlighting potential for multiple lines of mineralisation striking NNW similar to the adjacent deposits in the immediate area of Challenger, Currajong and Caledonian.

“We are very encouraged with the results of this soil sampling program, which highlight the potential for extension of mineralisation to the north of the Currajong deposit within close proximity of the Adelong Mill,” Adelong Gold managing director Ian Holland said at the time.

“The Scoping Study demonstrates an attractive commercial operation to be developed at Adelong, and so the discovery of further shallow mineralisation nearby augurs well for this project to grow further.”

Adelong Gold has further drilling planned within the key deposits mentioned above (Challenger, Currajong and Caledonian) that comprise the Scoping Study currently underway with a view to potentially upgrading and extending these sources.

This will underpin works to upgrade the current study to allow for a range of funding options to be considered for the development of the Adelong gold project.

Alto Metals (ASX: AME) also is also keeping drillers busy with a regional aircore (AC) drilling program having got underway at the company’s 100 per cent-owned Sandstone gold project in Western Australia.

Alto Metals has an initial approx. 4,000 metres program planned to test shallow gold targets that were identified via a recent infill soils sampling program at the Sandstone North prospect.

The infill program returned gold results that delineated a coherent gold anomaly over 1km strike, including values of up to 100ppb gold.

The location of the gold anomaly also correlates with a major north-south trending interpreted shear zone along a regional fold axis, in a similar position and approximately 1.5kms along strike, from historical workings and high-grade drilling results.

“We are pleased to have a rig back on site drilling at our Sandstone gold project,” Alto Metals managing director Matthew Bowles said in the company’s ASX announcement.

“Given the structural setting and high-grade gold results reported in historical drilling at Sandstone North, we are excited to be testing these compelling regional gold targets.

“We continue to focus on advancing our Sandstone gold project and Sandstone North demonstrates the quality of our regional project pipeline.

“We look forward to providing shareholders with updates on the results of the drilling when they are received.”

Alto Metals currently has a shallow, open pit gold resource of 17.6 million tonnes at 1.5 grams per tonne gold for 832,000 ounces optimised and pit-constrained within $2,500/oz pit-shells.

Of note, the mineral resources are shallow with over 90 per cent within 150m from surface.

The optimised and pit-constrained MRE captures over 80 per cent of the total unconstrained MRE of 23.5 million tonnes at 1.4g/t gold for 1.05 million ounces.

The Roadhouse Roadshow will be at The Kelvin Club in Melbourne of Wednesday April 24.

Melbourne readers are welcome and encouraged to attend. To save your place follow this link to register:

https://vert.eventsair.com/resources-roadhouse-roadshow-april-2024/registration

Global Lithium Resources in Pole Position for Market Turnaround

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THE CONFERENCE CALLER: Global Lithium Resources (ASX: GL1) managing director Ron Mitchell says the company’s Manna project is ideally placed to capitalise on the looming improvement in the lithium market. By Kristie Batten

Spodumene prices dipped below US$1000 per tonne earlier this year after trading as high as US$6000/t in late 2022.

In recent weeks, producers Pilbara Minerals, Albemarle Corporation and Mineral Resources have reportedly sold spodumene cargoes at above spot prices.

“The floor is probably now 4-5 weeks behind us,” Mitchell told the Tribeca Future Facing Commodities Conference in Singapore last week.

“We’re seeing now sustained improvement and consistency in pricing and I’d expect that to continue to improve through the third quarter and leading into the back end [of the year].”

Global Lithium is working on a definitive feasibility study at Manna, 100 kilometres east of Kalgoorlie.
The DFS is advanced and is expected to be completed this year.

“We’re one of only a handful of companies on the planet in lithium at the DFS stage,” Mitchell said.

“This is a ripping project.”

Global Lithium is working with SRK Consulting and GR Engineering Services to review the key inputs to the DFS.

“When we do deliver this project to market it will be bullet-proof and competitive,” Mitchell said.

Manna has a resource of 36 million tonnes at 1.13 per cent lithium oxide, based on just one year of drilling.

A resource update, incorporating 60,000 metres of drilling, is due in the current quarter.

Most of the drilling has been infill.

“What we’ve found is the grade is lifting and we’re getting great continuity, and the resource is still open,” Mitchell said.

“The under cover part of the orebody to the south is showing great potential.”

The 2024 drilling program will begin this quarter alongside the DFS and permitting work.

Mitchell said the company is hoping to receive the “holy grail”, a mining lease, in the September quarter.

“It positions us perfectly for when we do see sustained improvement,” he said.

Mitchell said the company’s three main advantages was that it owned 100 per cent of its projects, had no royalties over the projects, and still had 70 per cent of its offtake uncommitted.

“We’re in no rush to do offtake – it’s a weapon for us,” he said.

Global Lithium also has strategic partnerships with Australian producer Mineral Resources and China’s Canmax, the latter which it has an offtake deal with.

“The reality is in this market, in the next 2-3 years, if you want to make money in the lithium industry, you have to have a toe in China,” Mitchell said.

Global Lithium has A$36 million in cash.

“We’re fully funded all the way through to the final investment decision in the next 24 months,” Mitchell said.

 

 

Argonaut Funds Management Names Top Mining Stock Picks

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THE CONFERENCE CALLER: David Franklyn from Argonaut Funds Management outlined his top themes and stock picks in the current economic climate. By Kristie Batten

The Argonaut Natural Resources Fund has gained 188 per cent since inception and Franklyn gave Day Three delegates at the Tribeca Future Facing Commodities Conference in Singapore an overview of what he’s seeing in the mining space.

Battery minerals including lithium performed strongly in 2022 as the energy transition gathered pace.
“In the past 6-9 months that story has changed,” Franklyn said.

Franklyn said China was exerting its power in certain commodities, including rare earths and graphite.

Another key theme is the reconfiguration of supply chains.

“We’re seeing almost a duplication of supply chains so we can get security of supply,” Franklyn said.

Franklyn also noted that a surge in global defence spending would also be good for metals.

Looking at lithium, Franklyn said Pilbara Minerals’ December half 2023 financial results could be a good snapshot of how the sector could look in the future.

Pilbara produced 320,153 tonnes of spodumene in the period, achieving an average price of US$1645 per tonne.

Revenue was A$760 million and EBITDA was A$415 million for a margin of 55 per cent, which Franklyn said could be an indicator of margins going forward.

Argonaut’s top pick in lithium is Patriot Battery Metals, which owns the Corvette lithium discovery in Canada.

“We’re looking for more tier one development assets,” Franklyn said.

Corvette has a resource estimate of 109.2 million tonnes at 1.42 per cent lithium oxide.

Earlier in the conference, Patriot chief operating officer Blair Way said the company was aiming to report a resource update in the September 2024 quarter.

“It’s likely to grow to 150 million tonnes or more,” Franklyn said.

Former Pilbara managing director Ken Brinsden was chairman of Patriot but recently became MD and relocated to Canada.

“We think that’s pretty exciting,” said Franklyn.

Argonaut is also excited by uranium, which recently hit a 16-year high of more than US$106 per pound.

There are 62 nuclear reactors under construction around the world.

“Uranium is undoubtedly going to grow its market share,” Franklyn said.

“There’s really one company I think is a standout in the sector and that’s NexGen Energy.”

Franklyn cited NexGen’s large, high-grade Rook I project in Saskatchewan and provincial approval (with federal approval expected to follow later this year) as the reasons why the company was a standout.

In copper, newly listed Metals Acquisition is Franklyn’s top pick.

Argonaut head of research Hayden Bairstow has a buy rating on Metals Acquisition and a A$22.80 price target.

“It’s very high-grade, it’s got a very good management team,” Franklyn said.

“We think it will emerge as a key pick in the Australian copper space.”

Franklyn said interest in gold was still lacking from generalist investors despite its recent record price levels.

“We think we’ll see improving demand in that area,” he said.

Argonaut’s checklist for gold stocks is long mine life, production growth, low operating and capital costs, tier one location and strong management team.

Based on that criteria, Argonaut’s top picks in the gold space are Capricorn Metals and Genesis Minerals.

 

Platina Resources Confirms Extension of Xanadu Oxide Gold Mineralisation

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THE DRILL SERGEANT: Platina Resources (ASX: PGM) has confirmed a large extension of oxide gold mineralisation at the company’s Xanadu project in Western Australia.

Platina Resources extended the mineralisation via a 15 hole reverse circulation (RC) drilling campaign drilled in Xanadu’s western tenements to test a previously-defined 8km-long gold mineralised corridor.

The company reported oxide gold mineralisation intersected in three out of five holes drilled at the Amphitheatre West prospect, that returned results including:

XARC016
48 metres at 0.53 grams per tonne gold from 76m, including 2m at 1.93g/t gold from 76m and 1m at1.01g/t gold from 83m and 12m at 1.35g/t gold from 89m;

XARC018
11m at 1.04g/t gold from 144m, including 2m at 3.92g/t gold from 144m; and

XARC019
15m at 0.69g/t gold from 150m, including 5m at 1.64g/t gold from 156m.

Platina explained the Amphitheatre West holes were drilled on a 200m spacing, following up on earlier encouraging results achieved from its 2022 RC drilling at the prospect.

“The ‘extremely encouraging’ intercepts confirmed oxide mineralisation extended a further 500 metres west of the historical Amphitheatre pit and was still open down dip and along strike to the west,” Platina Resources managing director Corey Nolan said in the company’s ASX announcement.

“Drilling has confirmed Xanadu West’s potential to host a large zone of oxide mineralisation.

“Our priority now is to test deeper airborne electromagnetic (AEM) and induced polarisation (IP) targets with up to four holes as soon as a diamond rig becomes available to try and unlock the deeper sulphide potential of the system.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Torque Metals Commences New Paris Gold Project Drill Campaign

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THE DRILL SERGEANT: Torque Metals (ASX: TOR) has commenced follow-up drilling at the company’s wholly-owned Paris Gold project outside Kalgoorlie in Western Australia.

Torque Metals indicated the reverse circulation (RC) and diamond drilling campaign will focus on the Observation-Paris-HHH-Eva gold discoveries within the Paris project.

The drilling hopes to extend high-grade gold structures at Paris, Observation, HHH and Eva prospects where the company has previously encountered strong gold intercepts.

“A 6,500-metres reverse circulation (RC) and diamond drilling campaign is poised to commence this week at the Paris gold project potentially host to multiple deposits within a larger mineralised system, spanning approximately 2.5km by 1km remaining open in all directions,” Torque Metals managing director Cristian Moreno said in the company’s ASX announcement.

“Torque believes that Paris possesses the attributes indicative of a tier 1 gold project, largely due to the presence of parallel structures and splays controlled by the Boulder Lefroy System.

“This conviction finds support in robust gold intercepts, exemplified by drill holes such as 23PRCDD076, yielding 35m at 14.12g/t gold from 157.85m, including intervals such as 1.2m at 185g/t gold from 174.7m, alongside other notable intersections across various drill holes.

“Metallurgical testing outcomes significantly bolster the project’s viability, with gravity and cyanide leaching recoveries achieving very strong results.

“Gravity concentration yields approximately 40% gold recovery for both Paris and Observation.

“Impressively, cyanide leach testing demonstrated Paris achieved a recovery rate of 96.79%, while Observation attained an even higher recovery rate of 99.7% with minimal cyanide consumption required.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

 

Vital Metals Increases Tardiff MRE Tonnage

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THE DRILL SERGEANT: Vital Metals (ASX: VML) reported an updated Mineral Resource Estimate (MRE) for the Tardiff Upper Zone deposit, part of the company’s Nechalacho rare earths project in Canada.

Vital Metals said the updated MRE for Tardiff demonstrates a notable lift in the contained Neodymium and praseodymium (NdPr) in the total resource in comparison to an estimate the company had released in February 2023.

The updated MRE features a total resource tonnage (across all categories) of 212.7 million tonnes at 1.17 per cent total rare earth oxide (TREO) containing 2.48 million tonnes TREO, including more than 623,000 tonnes of NdPr.

“Deposit size and grade matters and Nechalacho’s world-class character is reinforced with our latest MRE for the Tardiff deposit, which shows its sector impact potential, particularly within a North American perspective, and is highlighted by the substantial increase in contained neodymium-praseodymium oxide, or NdPr, to more than 623,000 tonnes,” Vital Metals managing director and CEO Geordie Mark said in the company’s ASX announcement.

“We believe that Tardiff is an outstanding asset, given that it represents a shallow deposit hosted within a single pit-constrained resource with a high NdPr:TREO ratio (~25%), and a size that affords potential for project size and scalability of production over a protracted period.

“We will continue to deliver a range of catalysts over the course of the year, with more Tardiff drill results expected over the next few months, where high-grade mineralization remains open in several directions out from the 2023 drill grid perimeter.

“These data and updated geological interpretations will form the basis of targeted metallurgical work to inform a Scoping Study to be completed in late 2024.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Corazon Mining Defines New Mt Gilmore Porphyry Copper-Gold Target

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THE DRILL SERGEANT: Corazon Mining (ASX: CZN) has defined a new, large-scale, high-priority porphyry copper-gold target at the company’s Mt Gilmore project in New South Wales.

Corazon Mining explained the new target, known as the May Queen target lies adjacent to the historically identified May Queen copper-magnetite skarn deposit.

The company described it as being a feature of approximately two kilometres in strike, located in the northern extent of the Mt Gilmore Trend, which Corazon has defined as a copper-cobalt gold trend over 20 kilometres in length, considered prospective for intrusion-related copper-gold deposits.

Corazon is of the opinion that large, regional-scale and complex geochemical anomalies like Mt Gilmore are well suited to mineral chemistry targeting programs, rather than conventional geophysics and blind drilling.

To this end the company had a geochemical program undertaken at Mt Gilmore by the Centre for Ore Deposit and Earth Sciences (CODES) at the University of Tasmania (UTAS) to define higher confidence drill targets.

The program found the May Queen target displays favourable hydrothermal alteration, along with coincident surface copper-in-soil and geophysical anomalism.

Corazon has commenced planning for a maiden drill program at May Queen, which will include access requirements and all drilling approvals.

“The results of our body of work with CODES at UTAS has been a great success for the company, and our exploration of the Mt Gilmore project,” Corazon Mining managing director Brett Smith said in the company’s ASX announcement.

“The geochemical targeting work undertaken by CODES has helped to define strong drill targets in a complex geochemical environment.

“Porphyry copper-gold systems typically have large footprints and it can take a significant amount of drilling to identify the best areas to focus on.

“We’re hoping the targeting process completed has mitigated the need to do this.

“Mt Gilmore displays many characteristics typical of large porphyry copper systems, and the outcomes of the work by CODES has helped define what is interpreted as a high-priority drill target at the May Queen prospect.

“Drilling of the May Queen will now be a high-order priority for the company.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

 

Carnaby Resources and Hammer Metals Ink Mt Hope Mining Lease Deal

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THE BOURSE WHISPERER: Carnaby Resources (ASX: CNB) has struck a deal with Hammer Metals (ASX: HMX) that will result in Carnaby expanding its footprint adjacent to and surrounding the company’s 100 per cent-owned Mount Hope Mining Lease in Queensland.

Carnaby Resources explained the acquisition of three Sub-Blocks surrounding its Mount Hope mining lease ML90240 will allow it to optimise the Mount Hope Central and Mount Hope North open pits to their full extents, unrestricted by the current mining lease boundary.

The Mount Hope mining lease ML90240 currently contains a Mineral Resource of 10.3 million tonnes at 1.7 per cent copper equivalent (CuEq) for 173,000 tonnes CuEq.

Carnaby considers the benefits of being able to mine these larger open pits will be important to the Mount Hope development in respect to scheduling, capital expenditure and life of mine cashflow.

“This is a great transaction for both companies and their shareholders,” Carnaby Resources non-executive chairman Peter Bowler said in the company’s ASX announcement.

“For Carnaby it ensures we now have the unfettered ability to develop the Mount Hope Central and Mount Hope North deposits in the most optimal and unconstrained manner.

“We look forward to advancing the Mount Hope development and the broader Greater Duchess Scoping Study which is expected to highlight the significant value our projects can deliver to Carnaby shareholders.

“We are also highly encouraged by the exploration potential along the Mount Hope corridor both in the near mine environment for direct extensions of the lodes into the area acquired and for mineable satellite deposits like South Hope and The Stubby where significant historical drill results have been recorded.”

Hammer Metals does alright from the deal as well with total consideration payable by Carnaby Resources being up to $20 million.

Hammer will retain 30 per cent equity and to be free-carried by Carnaby to production from the three Sub-Blocks.

The initial tranche of payments comprises $4 million in cash and $5 million in Carnaby shares.

Hammer indicated this will provide funding for exploration drilling with a view to increasing its Mount Isa regional copper resource inventory.

A further $5 million in cash will be payable to Hammer upon a Mount Hope open pit decision to mine.

A final payment of $6 million in cash will be made upon a final investment decision for any separate new development on the Sub-Blocks (which could include prospects such as South Hope, Mount Hope U/G Extensions and The Stubby).

“We are extremely pleased to have realised this strong valuation outcome of up to $20 million for the three Sub-Blocks as part of this landmark transaction with our neighbour, Carnaby Resources,” Hammer Metals managing director Daniel Thomas said in his company’s ASX announcement.

“We see this as a good example of the emerging mining sector working collaboratively to deliver value to shareholders through a pragmatic and commercial approach to the advancement of copper-gold assets.

“With a material equity position in these Sub-Blocks, Carnaby will be well placed to progress the Scoping Study for the Greater Duchess project, without the previous constraint of the lease boundary at Carnaby’s key Mount Hope Central tenement.

“Importantly, Hammer shareholders maintain upside exposure to the future development of the three Sub-Blocks through the equity we will retain as well as the potential to receive future cash payments linked to a decision by Carnaby to mine at the Mount Hope Central and Mount Hope North deposits (part of Carnaby’s Greater Duchess project) and a decision to progress open cut or underground operations from within the Sub-Blocks themselves.

“Hammer will now use its enhanced cash position to intensify our exploration efforts both at Kalman as well as at our other exciting copper prospects such as Hardway, Bullrush and Mascotte, as we look to add to our existing copper inventory strategically located in the Mt Isa district of North Queensland.”

 

TO READ THE FULL CARNABY RESOURCES ANNOUNCEMENT: CLICK HERE

 

TO READ THE FULL HAMMER METALS ANNOUNCEMENT: CLICK HERE