What the Analysts Say
WHAT THE ANALYSTS SAY: Company’s under the microscpoe this week include IronClad Mining and Energia Minerals.
Website: www.breakawayresearch.com
Company: IronClad Mining Limited (ASX: RTR)
Ironclad Mining is an ASX-listed junior exploration company concentrating on projects in the Gawler Craton of South Australia.
The company’s key focus is on the Jumbuck gold project, located around the operating Challenger gold mine of Kingsgate Consolidated (ASX: KCN).
Holdings also include the Wilcherry Hill project, originally primarily held for iron ore, but also prospective for a range of base and precious metals, including gold, lead, zinc, silver and tin.
With the Ironclad-Trafford merger now complete, Ironclad is recommencing exploration on its highly-prospective Jumbuck gold project, located over the under-explored Archaean Christie Domain of the Gawler Craton of South Australia.
The Christie Domain has similarities to the Fraser-Albany Orogen of Western Australia, host to Tropicana and Nova-Bollinger.
Previous regional sampling over the project area, which surrounds Kingsgate’s one million ounce Challenger gold mine, identified +300 gold-in-calcrete anomalies, of which +250 are yet to be followed up.
Follow-up work on around 50 anomalies has generated potentially economic gold grades in drilling at eight anomalies and one JORC-compliant resource; although further work is required on all of these prospects.
Work has also identified prospectivity for magmatic nickel/copper mineralisation, potentially similar to that at Sirius Resources’ (ASX: SIR) Nova-Bollinger deposit.
Should economic gold resources be delineated and dependent upon the operating status at Challenger at the time, there are potential ore treatment synergies with the Challenger mill, given that Ironclad is in an exploration JV with Kingsgate over part of the Jumbuck area.
Website: www.beerandco.com.au
Company: Energia Minerals (ASX: EMX)
Energia sold its Carley Bore uranium project to Paladin Energy (ASX: PDN) in June 2015 for 45 million PDN shares plus $1.6 million cash.
In 2014, EMX purchased Mining Leases at Gorno in northern Italy. Gorno has an Exploration Target of 6 million tonnes to 10 million tonnes at 7 per cent to 10 per cent zinc plus lead.
Gorno has been mined previously, and the mine is fully developed for a quick re‐start, subject to a processing plant being constructed.
EMX has applications over uranium at Val Vedello and Novazza, and over zinc at Perdil and Salafossa – all in northern Italy.
EMX sells its Carley Bore project to PDN for scrip plus cash
Carley Bore, an ISL uranium project in Western Australia, was Energia’s foundation project.
EMX announced the results of its scoping study in April 2014. To progress further, would have required extra cash, some $1.5 million, and production was expected only in 2019.
EMX is now able to raise cash by selling its PDN shares, hopefully at a better price than at present as PDN shares are expected to rise with the uranium price.
EMX gets more zinc
In June 2015, EMX announced that it had applied for exploration permits covering two zinc‐lead mines that were operating in northern Italy in the 1980s.
Predil (or Raibl) has a long production history and was closed in 1991 by ENI, having produced 30 million tonnes of ore grading 5 per cent zinc plus 1.2 per cent lead.
Salafossa was operated from 1964 to 1986, producing 10.95 million tonnes of ore grading 5 per cent zinc plus 1 per cent lead.
EMX will use some of the cash received from the sale of Carley Bore to drill these areas as soon as permits are granted.
EMX’s portfolio is now simpler and stronger, with a lower cash call in the near term, greater zinc exposure and still retaining exposure to expected higher uranium prices.
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.