Stellar Resources Busy at Heemskirk Amid Tin Price Spike

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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

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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.

 

Higher Incentive Prices Needed Ahead of Supercycle

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THE CONFERENCE CALLER: Euroz Hartleys senior analyst Michael Scantlebury says “sensationalist” headlines about the end of mining are grossly exaggerated. By Kristie Batten

Speaking on the opening day of the RIU Sydney Resources Round-up, Scantlebury said we are likely “in the foothills” of the energy transition supercycle.

While grim headlines about mining were the norm back in 2016 when large companies like Glencore were at its knees due to a heavy debt load and slumping commodity prices, Scantlebury pointed to a headline as recently as last month which stated Australia’s resources exports would plummet by more than $100 billion by the end of the decade.

The headline was based on the latest forecasts from the Australian government’s Office of the Chief Economist.

“You think from reading that the mining industry is all over but what does that actually assume in those numbers that they have the revenue falling by over A$100 billion?” Scantlebury said.

That forecast assumes an iron ore price of US$75 per tonne, down from its current price of US$110/t.

“If I had a dollar for every time I heard someone say that iron ore was going to be heading back to US$75 per tonne in the last 10 years, I’d be a very rich man,” Scantlebury said.

The government also forecasts gold to pull back to less than US$2000 an ounce from US$2300/oz and thermal and coking coal to each shed more than US$50/t to sub-US$100/t and sub-$200/t respectively.

“And we’ve got copper staying at US$9300 per tonne – just flat through to the end of the decade,” Scantlebury said.

“No incentive pricing, but don’t worry, we’ll just increase copper supply by 30 per cent.

“There’s truly crazy demand for copper, but there’s no forecast for incentive pricing to bring on that new supply.”

Scantlebury said it got him thinking about consensus pricing for commodities which he acknowledged sounded like a boring topic but was very important.

“And why does it matter? Because these price assumptions feed into analysts’ models,” he said.

“Pricing forecasts that will feed into the evaluations, earnings forecasts, and it can be a key driver of equities in the market.

“And if you think that that doesn’t really matter, you can look at Liontown, for example.”

In January, a consortium of lenders pulled a $760 million debt package to fund Liontown’s Kathleen Valley development due to lithium price forecasts by Wood Mackenzie.

In March, the company secured a smaller ($550 million), shorter-dated loan to complete the project.

Scantlebury pointed out that when the lithium price surged in 2021-22, analysts forecast “stronger for longer” pricing.

“What happened was the complete opposite – the price got absolutely crushed and now we’re on the back end of it and people are calling for lower prices for longer,” he said.

“Consensus forecasts are reactive and not proactive.”

Scantlebury turned his attention to copper, the price of which he said throughout the last decade was consistently overcalled amid overcapacity in the sector.

“We’re almost in the opposite scenario as we speak right now,” he said.

“You’ve got forecasts out there for how much money needs to be spent in the copper space to increase supply to feed into this energy transition.

“However, I don’t believe you just get this increased spending in capital without incentive pricing.”

Copper is currently trading at around US$9800/t after briefly eclipsing US$10,000/t last month.

Goldman Sachs has forecast an average copper price of US$15,000/t for 2025.

“That’s the kind of incentive pricing required to draw in fresh capital from outside the resource sector to expand supply,” Scantlebury said.

Last month, BHP made a $60 billion takeover offer for Anglo American with the focus being Anglo’s substantial copper portfolio.

Scantlebury said it was interesting that BHP was willing to pay a 19 per cent premium over Anglo’s median net asset value among analysts.

“Why are BHP paying a premium to what the analysts are saying it’s worth?” he posed.

“The only read-through on that would be they’re assuming a higher copper price assumption in their models.

“And I’m not one to one to give BHP credit but you’d hope the second largest copper producer on the planet would know a thing or two about the copper price going forward.”

 

Roadhouse Roadshow Brings Melbourne Punters Together

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CONFERENCE CALLER: The Resources Roadhouse presented its inaugural Roadhouse Roadshow this week.

The Roadhouse welcomed punters to the auspicious surrounds of the Kelvin Club in the Melbourne CBD to listen to presentations from four ASX-listed companies.

Encounter Resources (ASX: ENR) executive chairman Wil Robinson provided plenty of food for investment thought giving an insightful look at the company’s large portfolio of 100 per cent-owned projects in one of Australia’s exciting mineral provinces considered prospective for copper and critical minerals including the Aileron project in the West Arunta region of Western Australia.

Encounter Resources executive chairman Wil Robinson presenting to the Kelvin Club throng

Adelong Gold (ASX: ADG) managing director Ian Holland explained how his company is on track to becoming a mineral producer at the company’s Adelong Goldfield project in New South Wales as well as giving a brief look at its new lithium project in Brazil.

Bass Oil (ASX: BAS) managing director Tino Guglielmo steered the room on an oil & gas tack explaining the benefits the company is earning as an oil producer with majority interest in eight permits in the Cooper Basin of Australia that includes the 100 per cent-owned Worrior and Padulla oil fields.

Alto Metals (ASX: AME) managing director Matthew Bowles closed the day’s presentations by enlightening attendees on the company’s aspirations for the shallow, open pit gold resource of 17.6 million tonnes at 1.5 grams per tonne gold for 832,000 ounces across its Sandstone Gold Project in Western Australia.

Punters and presenters alike, left the day with a sense of either having learned something new to think about or having met a new set of prospective investors that showed much interest after the formal part of proceeding was complete.

There will be more Roadhouse Roadshows in the future. Keep an eye out for these as they arise.

Roadhouse Presenting Diverse Program to Melbourne Investment Community

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THE CONFERENCE CALLER: The Resources Roadhouse will be in Melbourne next week presenting our inaugural Resources Roadhouse Roadshow. Here’s a quick bite of two of the companies that will be presenting.

Encounter Resources (ASX: ENR) controls a large portfolio of 100 per cent-owned projects in one of Australia’s exciting mineral provinces considered prospective for copper and critical minerals including the Aileron project in the West Arunta region of Western Australia.

Encounter recently completed a $10.5 million placement, the funds from which have been earmarked to accelerate and expand the company’s upcoming drill program at Aileron project.

The drilling will pick up from results and modelling from the company’s 2023 exploration campaign that confirmed the presence of shallow, high-grade niobium-REE mineralised carbonatites at several prospects and the discovery of large-scale primary niobium-REE carbonatite-hosted mineralisation within a five kilometre corridor.

Elsewhere in the company portfolio, Encounter reported assays from two drill holes completed at the Zeta target at the Jessica copper project in the Northern Territory confirming the presence of copper sulphide bearing veins and alteration signatures associated with iron oxide copper gold (IOCG) style mineralisation.

“The NT has significant untapped copper potential which has been recognised by numerous major resources companies,” Encounter Resources managing director Will Robinson said.

“Located in a previously unexplored region of the NT, the first holes drilled at Zeta targeted large magnetic and gravity anomalies.

“Both holes intersected red-rock hematite alteration and copper associated with quartz–carbonate veining which is interpreted as a distal alteration signature to a potential IOCG style mineral system.”

The Jessica project is subject to a Joint Venture with South32, which has the right to earn a 60 per cent interest in the project via sole funding $15 million of exploration expenditure within 10 years.

 

Bass Oil (ASX: BAS) is an oil producer with majority interest in eight permits in the Cooper Basin of Australia that includes the 100 per cent-owned Worrior and Padulla oil fields.

The company is also in Indonesia where it holds a 55 per cent interest in the Tangai-Sukananti KSO, which it acquired in 2017 instantly transforming Bass Oil into a profitable oil producer in a prolific oil and gas region.

Bass Oil’s Tangai-Sukananti KSO 2P Reserves as at 31 December 2023 were assessed to be 0.741 million barrels of oil with production expected to continue until 2032.

In 2023 Bass secured a 10 year licence extension for the KSO which now expires in September 2035.

In October 2022 Bass completed the acquisition of its portfolio of Cooper Basin assets.

These included a 100 per cent interest in the producing Worrior and Padulla oil fields that, as of January 2024, are producing approx. 100 barrels of oil per day (bopd) at a gross profit margin of around $64 per barrel at a Brent oil price of around US$80.

The fields provide 2P reserves of almost 366,000 barrels of oil and 2C contingent resources of approximately 582,000 barrels of oil.

The portfolio also contains properties that host prospective appraisal and exploration opportunities.

Bass Oil owns a high equity stake (74%-100%) in fifteen Cooper Basin licences, representing one of the largest acreage holdings in the core of the Cooper Basin covering a cumulative area of approximately 1,900 square kilometres.

 

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.

 

AIC Mines Increases Jericho Ore Reserves

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THE DRILL SERGEANT: AIC Mines (ASX: A1M) reported an updated Ore Reserve estimate for the company’s 100 per cent-owned Jericho copper deposit in north Queensland.

The Jericho deposit is located just four kilometres south of the company’s Eloise copper mine.

AIC Mines explained the Jericho Ore Reserves increased thanks to the inclusion of results from a drilling program undertaken in 2023 and updated mine designs.

Jericho Ore Reserves now total 3.2 million tonnes at 1.9 per cent copper and 0.4 grams per tonne silver containing 61,100 tonnes of copper and 37,000 ounces of gold.

The update represents an 86 per cent increase in contained copper and an 86 per cent increase in contained gold.

AIC anticipates ongoing drilling to further increase Jericho Ore Reserves.

“We completed the acquisition of Jericho in January last year,” AIC Mines managing director Aaron Colleran said in the company’s ASX announcement.

“We’ve barely owned the deposit for 12 months and in this time we have significantly increased the Jericho Mineral Resource and Ore Reserve, completed mining studies, environmental studies, metallurgical testwork plus an Eloise expansion study.

“It has been an incredibly busy and incredibly successful period for AIC Mines.

“Why are we pushing so hard, moving so quickly? Simple, Jericho is a game changer for Eloise.

“It provides a pathway to expanding annual production at Eloise to over 20,000 tonnes of copper and 10,000 ounces of gold in concentrate.

“Mining at Jericho will be lower cost than Eloise as it is much shallower, commencing below only 50 metres of cover.

“Expansion of the Eloise processing plant will reduce operating costs through economies of scale and smarter equipment.

“Jericho de-risks production by increasing the number of available ore sources.

“The world needs more copper as we transition away from fossil fuels. We are focused on delivering into that demand.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

CGN Aiming to Make Next Major West Arunta Discovery

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THE CONFERENCE CALLER: Relative ASX newcomer CGN Resources is hoping to make a major discovery in the hot West Arunta region of Western Australia. By Kristie Batten

The company listed on the ASX in October 2023 after a A$10 million initial public offering but has been active in the West Arunta since 2010, making it one of the early movers.

“Now there is no ground left in the West Arunta,” CGN managing director Stan Wholley told the Tribeca Future Facing Commodities Conference in Singapore.

“It’s probably one of the hottest districts at the moment.”

That’s largely thanks to WA1 Resources’ Luni niobium discovery in the region, but IGO, Encounter Resources, Rio Tinto and Tali Resources are also active.

CGN stands for copper-gold-nickel but the company is also looking for critical minerals including rare earths.

Wholley said the West Arunta could be one of Australia’s last unexplored copper provinces and had known iron oxide-copper-gold mineralisation.

“To not have a big red blob [on the map] in this area is unusual and we hope to be the ones to find it,” he said.

CGN has identified six priority targets.

Snorky, Horton, Surus and Tantor are IOCG targets, Shep is a nickel target and Hathi is a rare earth target.

The company just completed induced polarisation surveys at Surus, Shep, Snorky and Horton, which confirmed the presence of gravity anomalies at all four prospects.

Drilling will begin at Surus next month, assisted by A$220,000 in Exploration Incentive Scheme funding from the WA government.

CGN has already spent A$7 million on geological data.

“Which gave us a really great pool of geoscience data,” Wholley said.

The company still has A$8.5 million in cash.

“That gives us enough money to deliver on our project pipeline,” Wholley said.

“We’ve got cash, we’ve got the time, let’s get it done.”

CGN shares hit an all-time high of 32 cents during ASX trading on Wednesday.