What the Analysts Say
WHAT THE ANALYSTS SAY: Interesting news and views from across the Resource Analyst universe.
Website: www.breakawayresearch.com
Company: Rumble Resources Limited (ASX: RTR)
Rumble Resources (ASX: RTR) is an Australian junior mineral exploration company whose main focus is on nickel-copper exploration in the highly prospective Fraser Range Nickel Province of Western Australia.
The company has a large 3,260 square kilometre landholding in this underexplored region, one of the largest of any explorer in the area.
Work to date has included comprehensive geophysical surveys and an initial drilling program, which has returned very encouraging results.
Rumble Resources has made substantial progress on its key Fraser Range properties since October 2014.
Work completed subsequent to October has included:
Mud rotary/diamond drilling at the Big Red Project (4 holes for 1,504m), testing a 2km long ground EM conductor;
Downhole EM surveying on three of the holes;
Petrological studies of drill core;
Ground gravity survey over the entire Zanthus Project area; and
Granting of approvals for drilling at the Zanthus eye feature.
The work has returned very encouraging results, with drilling now imminent on targets at Zanthus, and future drill targets defined at Big Red.
On the corporate side the company has had two oversubscribed capital raisings – a $1.15 million placement in November last year, and a $1.68 million placement in late April, leaving the company with over $2 million in the tin.
There are also around 44 million eight cent listed options due for expiry at the end of June, and given that we have recently seen prices above the conversion price we see potential for some of these to be exercised, providing additional cash.
Nathan Tinkler has been appointed as a strategic corporate advisor concentrating on the lucrative Asian markets, followed by the appointment of New York based EAS Advisors LLC (“EAS”) to target the large North American market.
Website: www.beerandco.com.au
Company: Pilbara minerals (ASX: PLS)
Tabba Tabba works approval expected in May
PLS stated that the works approval is expected in May.
Beer & Co expects first product in about six weeks from the date of works approval.
In our view, PLS’s share price has languished as first product has been delayed.
The delays will soon be over.
More, thick, high-grade intercepts from drilling at Pilgangoora
In April, PLS announced further, high-grade intercepts at Pilgangoora, with grades slightly higher than around resource grade for tantalum oxide and about 50 per cent higher for lithium oxide.
The drilling appeared to intercept three mineralised shoots, so the average waste to ore ratio across these four holes is less than half of the strip ratio assumed in our modelling.
This suggests significant further upside potential to Pilgangoora due to lower mining costs from the reduced strip ratio.
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.