What the Analysts Say
WHAT THE ANALYSTS SAY: This week our team of experts run the ruler over Aurora Minerals and Kibaran Resources.
Website: www.breakawayresearch.com
Aurora Minerals Limited (ASX: ARM)
Aurora Minerals Limited (ASX: ARM) is a Perth based ASX-listed junior exploration company with a strategy of growth through direct investments in other ASX-listed junior exploration companies.
As part of the strategy Aurora also facilitates funding via loans to associates.
Investments to date include Predictive Discovery (ASX: PDI, 43.9%), Golden Rim Resources (ASX: GMR, 13.4%) and Peninsula Mines (ASX: PSM, 37.5%).
Between them, Predictive and Golden Rim control most of the Samira Hill Greenstone Belt in eastern Burkina Faso.
Predictive has an 184,000 ounce, 2.58 grams per tonne Indicated and Inferred Resource at its Bongou prospect within the 95 to 100 per cent-held Bonsiega project.
Within 10 kilometres of the Bongou resource Predictive has recently reported an Exploration Target of 460,000 to 563,000 ounces at between 1.5 and 1.7g/t gold.
Golden Rim has reported an Exploration Target of 500,000 to 611,000 ounces at between 1.8 and 2.2g/t gold within its 90 per cent-held Korongou permit, some 40 kilometres from Bongou.
The third investment is a 37.5 per cent controlling stake in Peninsula, which has two projects in South Korea.
The main focus to date has been on the 100 per cent-owned, historically mined Daewha molybdenum/tungsten project, with drilling intersecting narrow high-grade molybdenum and tungsten veins.
Sampling of polymetallic veins at the second project, Osu, has returned high-grade assay values, with a conceptual blind porphyry target also being defined.
Website: www.breakawayresearch.com
Kibaran Resources (ASX: KNL)
Kibaran is an ASX-listed graphite explorer and developer, concentrating efforts in Tanzania.
The key project is the Epanko graphite project, located in southern Tanzania.
With the completion of a BFS, and offtake agreements in place, the company is now looking towards financing and development.
The second project, Merelani-Arusha, is located adjacent to the previously operated Merelani graphite mine.
This is viewed as a potential second mine, with the company now to commence a Pre-Feasibility Study (PFS).
Kibaran is also actively investigating the opportunity for value add operations in Dar es Salaam, including the production of spherical and expanded graphite to supply the expected increased demand for these products, and to provide an alternative source to the current largely Chinese production.
A recently completed BFS for the Epanko graphite project returned positive results, with a pre-tax NPV of US$197 million, with an expected capital outlay of US$77 million.
A key to the project is the quality of the graphite concentrate – test work indicates the production of a low contaminant, dominantly large flake concentrate suitable for most applications, including production of the value added expanded and spherical forms.
The quality is superior to that of most other ASX-listed graphite hopefuls, and this has been backed up by the signing of key offtake agreements with European parties for 75 per cent of the planned initial 40,000 tonnes per annum production.
The Merelani-Arusha graphite project in Northern Tanzania is also a potential company-maker in its own right, with metallurgical testwork returning excellent results that are comparable to Epanko and a JORC-complaint resource with considerable upside.
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.