What the Analysts Say
WHAT THE BROKERS SAY: Interesting news and views from across the Resource Analyst universe.
Website: beerandco.com.au
Company: PLD Corporation (PLD.ASX)
PLD Corporation is focused in the Fraser Range district in the south of Western Australia.
It has an option to purchase a tenement package of 1,200 square kilometres, the fifth largest in the Albany-Fraser Belt.
Drilling Program Underway at Rocky Gully Central
RC drilling and deep EM Survey is now underway at the M20 nickel target which was defined by systematic geological, geochemical and geophysical program.
Results are due in October.
Multiple Bedrock EM Conductors at Rocky Gully North
PLD has identified 18 potential bedrock EM conductors and eight have been prioritised for sampling, EM and drill testing.
These are prospective for massive sulphide and graphite deposits.
Drilling of a number of nickel-copper targets is being organised.
Significant VMS Copper‐Zinc Mineralisation at Rocky Gully North
The C1 copper-zinc target exceeds 3.5 kilometres in strike length.
It covers a magnetic sequence, an EM conductor and extensive copper and zinc mineralisation identified from shallow drilling.
Mineralisation is open along strike and at depth.
Significant High-Grade Graphite Mineralisation at Rocky Gully West
PLD has completed the historical review of the F1 graphite deposit.
Up to 50 per cent carbon rich in graphite of 15.2 per cent and 13.2 per cent flake has been identified.
Desktop and field work to identify drill targets continues.
Conclusions
PLD has a large tenement area, large number of identified targets, significant potential value and an experienced Board to make it happen, combined with a low market capitalisation giving it significant leverage.
Website: www.breakawayresearch.com
Company: Avalon Minerals Ltd (ASX: AVI)
A change in Board and Management has brought a fresh set of eyes to the Viscaria copper-iron project in northern Sweden.
The project, located next door to LKAB’s Kiruna fines and pellet operations, is ideally served by infrastructure, a vital factor in any bulk commodities project.
Transport facilities include rail to the Port of Narvik, 170km away, which currently handles over 20 million tonnes of iron ore products per year.
Mineralisation in the four orebodies defined thus far is simple and easily treated, and should produce readily marketable products – a clean chalcopyrite copper concentrate, and a high-grade, low contaminant magnetite concentrate.
Our base case modelling indicates an NPV of approx. $US280m, and the potential to produce an annual free cash flow of around $US110 million, with upside through gold production and additional mine life.
The company has a clear well considered strategy in place for advancing the project, with feasible timelines in place.
The company is working towards development of the Viscaria copper-iron project, with an expected timeframe to project approval of two to three years.
Following recent Board and Management changes, an updated Scoping Study has been recently completed, with the Company now progressing to a Pre-Feasibility Study.
Since their appointment, the new personnel have put in place a clear and well considered strategy to advance Viscaria towards development.
Steps completed to date have included a review and upgrading of mineral resources, and an upgrade of the Scoping Study and mineral resource estimates.
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.