What the Analysts Say
WHAT THE ANALYSTS SAY: Interesting news and views from across the Resource Analyst universe.
Website: www.beerandco.com.au
Company: Pilbara Minerals (PLS.ASX)
Pilbara Minerals acquired a 50 per cent stake in the Tabba Tabba project in October 2013.
PLS published a feasibility study on Tabba Tabba in February 2014 and has since raised equity to bring it into production.
In May 2014, PLS announced the acquisition of 100 per cent of Pilgangoora, 55 kilometres from Tabba Tabba in the Pilbara region.
Tabba Tabba Resource upgrade
On 19 January 2015, PLS announced an upgraded resource, from 213,000 tonnes containing 572,200 pounds of tantalum, to 318,000 tonnes containing 666,200 pounds.
Of the 94,000 pound increase, 73,000 pounds was in the Measured category.
The increased volume of Resources is due to drilling in areas that need to be mined for access to the pit.
These areas were lower grades than Beer & Co’s earlier estimates.
Tabba Tabba works approval delayed
PLS has been required to do some more work to get approval to begin work on‐site.
These approvals are now expected in March. The plant is ready to be installed when the pads are prepared.
Greater upside at Pilgangoora
PLS had completed 4,812 metres of a 10,000 metre drilling program at Pilgangoora.
Drilling is expected to re‐start soon. The program is expected to result in an upgrade and extension of Resources.
Website: www.breakawayresearch.com
Company: Avalon Minerals Limited (ASX: AVI)
Avalon is an ASX-listed minerals developer with its key project being the Viscaria copper-iron project in the Kiruna mining district of northern Sweden.
The project has sufficient resources to subsequently upgrade this to a longer term, high throughput copper/iron operation with appreciable blue sky.
We see potential resource additions coming from expansions to the known mineralisation and the good chance for regional exploration success.
The company is working towards development of the project, with a DFS expected to be completed by late 2016, and first production, of between 10,000 tonnes per annum and 15,000 tonnes per annum of copper in 2018, potentially to coincide with forecast improvements in copper prices.
In addition to the core project, which is comprised of four mineralised zones, a number of district and regional exploration licences are held, with these having excellent prospectivity, as evidenced by historic drill results that have not been followed up.
In response to current market conditions and commodities prices, Avalon Minerals options for a staged development of its Viscaria project, as an alternative to the scenario presented in the 2014 Scoping Study.
The proposed operation includes a first stage, relatively low capex high-grade copper only operation, with a later expansion to a larger copper and magnetite operation.
Planned operations include both open cut and underground mines, with exploitation concessions now granted over all of the three start-up zones.
The company envisages an initial 5 year, approx. one million tonnes per annum operation, with capex in the order of US$100 million, expanded to a 2.5 million tonnes per annum to 3.5 million tonnes per annum operation from year six which will require an estimated extra US$130 million in capex, which includes the magnetic separation plant.
There is also potential for a copper oxide circuit to be included, to treat shallow high grade oxide ores.
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