What the Analysts Say
WHAT THE ANALYSTS SAY: This week our team of experts run the ruler over Elysium Resources (ASX: EYM) and Atherton Resources (ASX: ATE).
Website: www.breakawayresearch.com
Elysium Resources (ASX: EYM)
Elysium Resources continues to make progress on its 100 per cent-owned Burraga copper project in the Central West of New South Wales.
Key advancements include progress on the permitting and EIS, and completion of a resource upgrade, with 80 per cent of resources now in the Measured and Indicated categories.
Work to date has also highlighted the exploration and resource expansion potential of the project.
The company will be testing a number of targets as part of a planned resource expansion drilling program, which if successful should significantly add to current resources and increase project life past the current estimated plus-four year life and hence enhance the economics.
Successful project implementation should allow Elysium to self-fund exploration activities over all of its prospective properties, and any exploration success should significantly drive the company’s value.
Elysium is currently focussing activities on its Burraga copper project, located south-east of Bathurst in the Central West of NSW, and centred over the historic Lloyds Mine, which produced some 470,000 tonnes of ore at over 4 per cent copper.
The strategy involves developing a low capex, 300,000 tonnes per annum operation to initially treat historic tails and slag, and then develop an open pit to mine and treat approximately one million tonnes of in-situ copper mineralisation.
Free cash flow from the envisaged plus-four year operation will be used to fund ongoing exploration activities on the company’s exploration assets, including a number of high quality gold and copper targets in the Burraga tenements.
Other exploration tenements include Malang in the highly prospective Sunda Arc of Indonesia, which has returned promising early stage exploration results.
Website: www.beerandco.com.au
Atherton Resources (ASX: ATE)
Beer & Co completed a research note on Mungana Goldmines (MUX) just as the company was about to change its name to Atherton Resources.
MUX’s operations are on the Atherton Tableland in Far North Queensland, inland from
Cairns.
MUX to be producing zinc in about 18 months
MUX’s assets include 6.8 million tonnes in JORC 2012 Resources, containing copper and zinc‐lead, further base metals plus copper‐gold mineralisation, a near complete polymetallic processing plant, which has been previously nominated to be able to process up to 600,000 tonnes per year and site accommodation for 44 persons.
King Vol is the start
MUX has published the results of a scoping study on King Vol, based on a mining inventory of 1.3 million tonnes, at an annual average rate of 320,000 tonnes per year.
The full feasibility study is expected by March 2016 with first product early in 2017.
Significant upside from further Resources and other mineralisation
MUX has total Resources at King Vol of 3 million tonnes, with further Resources at depth, below 410m.
MUX has a further 3.8 million tonnes in Resources nearby, plus 5.2 million tonnes in mineralisation nearby as well some recent high-grade intercepts.
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