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ASX Capital Raise Roundup: Fighting inflation the Dalio way – with some retail therapy

When the going gets tough, the tough go shopping… for coffee outlets and service stations. … Read More
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This article was originally published by Stockhead

ASX Capital Raise Roundup is a fortnightly look at ASX capital raisings.

Inflation. It’s been dead for the past 20 years – only to arrive with vengeance!

What’s more, there are two generations of investors who have never dealt with this type of phenomenon. The traditional playbook calls for buying commodities, property, and other hard assets.

However, our trading sense tells us it will not be quite that simple. In an effort to gauge how other investors are shifting their portfolios, star hedge fund manager Ray Dalio of Bridgewater Associates is buying various retailer companies – likely based upon these businesses’ abilities to raise prices and increase gross margins.

We are also seeing renewed interest in banking companies which also should have the pricing power to increase their net interest margins.

Anecdotally, these portfolio moves make sense to us as we are now regularly paying $5.00 for cafe lattes, $1.75+ per litre of fuel, and mortgage rates are creeping higher.

These are still early days if there is indeed a full paradigm shift, and we will certainly be on board this new trend.

 

Placements this week

Company Name ASX Code Market Cap Issue Price Attaching options Price as of Midday Friday % Change from issue price to current price Stock halted? Sector Industry
PHARMAXIS LTD (XASX:PXS) PXS $50M $ 0.105 $ 0.110 4.76% Health Technology Pharmaceuticals: Major
PLAYSIDE STUDIOS LIMITED (XASX:PLY) PLY $102.2M $ 0.750 $ 0.975 30.00% Technology Services Packaged Software
AUMAKE LIMITED (XASX:AUK) AUK $10.65M $ 0.017 1:2 attaching option exercisable 4.5c expiry 3 years $ 0.020 17.65% Retail Trade Internet Retail
NEXION Group Ltd (XASX:NNG) NNG $10.83M $ 0.160 $ 0.180 12.50% Technology Services Information Technology Services
WEST WITS MINING LIMITED (XASX:WWI) WWI $50.3M $ 0.030 $ 0.033 10.00% Non-Energy Minerals Precious Metals
LION ENERGY LIMITED (XASX:LIO) LIO $25.6M $ 0.080 1:2 listed option, exercisable 12c, expiry 2024 $ 0.080 0.00% Energy Minerals Oil & Gas Production
WILDCAT RESOURCES LIMITED (XASX:WC8) WC8 $26.4M $ 0.044 $ 0.051 15.91% Process Industries Agricultural Commodities/Milling
AUKING MINING LIMITED (XASX:AKN) AKN $10.14M $ 0.165 $ 0.185 12.12% Non-Energy Minerals Other Metals/Minerals
ACTIVEX LIMITED (XASX:AIV) AIV $26.6M $ 0.080 1:2 attaching option exercisable 12c, expiry 2 years $ 0.150 87.50% Non-Energy Minerals Precious Metals
TURACO GOLD LIMITED (XASX:TCG) TCG $47.5M $ 0.120 $ 0.140 16.67% Non-Energy Minerals Precious Metals
TINYBEANS GROUP LTD (XASX:TNY) TNY $29.6M $ 0.600 $ 0.620 3.33% Technology Services Packaged Software
KINGSTON RESOURCES LIMITED (XASX:KSN) KSN $57.2M $ 0.200 $ 0.200 0.00% Non-Energy Minerals Other Metals/Minerals
Black Dragon Gold Corp. (XASX:BDG) BDG $8.31M $ 0.056 $ 0.068 21.43% Non-Energy Minerals Precious Metals
BCI MINERALS LIMITED (XASX:BCI) BCI $288M $ 0.430 $ 0.460 6.98% Non-Energy Minerals Steel
EMETALS LIMITED (XASX:EMT) EMT $6.22M $ 0.0125 1:1 free attaching unlisted option exercisable 3c expiry Sept 2025 $ 0.022 76.00% Non-Energy Minerals Steel
WILUNA MINING CORPORATION LIMITED (XASX:WMC) WMC $182.1M Still in Halt Energy Minerals Coal
ICANDY INTERACTIVE LIMITED (XASX:ICI) ICI $79.4M $ 0.115 $ 0.150 30.43% Technology Services Packaged Software
TIETTO MINERALS LIMITED (XASX:TIE) TIE $206.4M $ 0.390 Still in Halt Non-Energy Minerals Precious Metals
ADVANCED HUMAN IMAGING LTD (XASX:AHI) AHI $164.3M Still in Halt Technology Services Packaged Software
TAMBORAN RESOURCES LIMITED (XASX:TBN) TBN $162.6M Still in Halt Energy Minerals Integrated Oil
SCHROLE GROUP LTD (XASX:SCL) SCL $16M $ 0.010 Still in Halt Commercial Services Personnel Services
EMYRIA LIMITED (XASX:EMD) EMD $50M Still in Halt Technology Services Packaged Software
BEAM COMMUNICATIONS HOLDINGS LIMITED (XASX:BCC) BCC $39M Still in Halt Communications Specialty Telecommunications

 

PlaySide Studios Limited (ASX:PLY) has raised $25m through a placement and is aiming to raise a further $3m through a SPP. The funds will be used to support their investments in Original IP Titles, new licence opportunities and to further scale the companies work-for-hire-business.

The price of the raise was 75c per share representing a 14% discount to the close prior to the raise.

PlaySide CEO Gerry Sakkas said: “We see an opportunity to accelerate the implementation of our growth strategy, solidifying our position as Australia’s leading independent gaming developer. The recent agreement with 2K Games has recognised our capabilities and highlighted the opportunities to grow within our target market.

“We are in a position to capitalise on this momentum to further expand our original IP titles, new licenses, work-for-hire as well as scale our operations and team to cater for these planned investments.”

West Wits Mining Limited (ASX:WWI) has completed a small placement and will conduct an underwritten rights issue to raise a total of $9.3m. The 1:6 non-renounceable rights issue has been underwritten by our good friends at Evolution Capital.

West Wits is primarily a gold explorer and developer with mining tenements positioned in South Africa and Western Australia. Its main project is in the Witswatersand Basin which is located in Johannesburg, South Africa.

Funds from the raise will be applied toward a new early mining initiative, mine development and exploration activities. Funds will also be applied to a Stage 2/3 feasibility study for WBP, future exploration at WBP and Mt Cacelia Projects and General Working Capital.

ActivEX Limited (ASX:AIV) has raised $2.1m through a heavily oversubscribed placement at 8c per share. Every 2 shares subscribed came with 1 free option with an exercise price of 12c.

180 Markets had a huge amount of interest in the raise, and we thank the Lead Managers, Cadmon Advisory and Panthea Capital for our early participation.

Prior to the raise the company announced potential lithium bearing structures on its existing tenements that it proposes to explore using capital from the placement. The company had been reviewing its North Queensland projects with a view to explore it for metals such as lithium, tantalum, niobium, tin, tungsten and rare earths which are expected to have high demand going forward in the new zero carbon industries.

Given the lack of liquidity in the stock prior to the raise it will be interesting to see how the stock performs following the trading halt.

ICandy Interactive Limited (ASX:ICI) has raised $40m through a funding round cornered by Animoca Brands and other top-tier institutional investors. The two-tranche placement was priced at 11.5c per share which represented an 11% premium to the 15-day VWAP prior to the raise.

Animoca Brands, which used to be listed on the ASX, recently raised funds at a $2.2b valuation which is almost 10x higher than the valuation it was trading at on the ASX before de-listing.

Shaun Factor, co-founder of 180 Markets said: “It’s great to see ICandy attracting investors of such calibre as Animoca Brands. Anytime you see a placement being done at a strong premium is an extremely positive sign. Well done to the gents at Evolution Capital for organising this raise.”

Nexion Group Ltd (ASX:NNG) has raised $2.75m through a share placement managed by Cadmon Advisory at 16c per share. Nexion is a leading provider of enterprise ICT solutions including public, private and hybrid cloud.

Nexion has recently experienced a significant increase in sales and is expecting this to continue, requiring replenishment of the companies working capital following the acquisition of Blue Sky Telecom of $2m.

NEXION founder and CEO, Paul Glass commented: “In August 2021, NEXION completed the highly accretive acquisition of Blue Sky Telecom for a relatively modest cost of $2.0 million. Blue Sky Telecom Pty Ltd added $3.4 million in annual recurring revenue to the group and provided the additional technicians needed to deliver the growing pipeline of work we had sold in the past three quarters. This represented an extremely attractive acquisition for NEXION but required us to use a material portion of the Company’s cash balance raised at the IPO earlier this year.

“NEXION’s growth has been outstanding, posting record quarterly revenue in Q1 of FY22 and increasing the recurring revenue base by almost 300% in just three quarters since IPO.”

Lion Energy Limited (ASX:LIO) raised $9.6m through a capital raise priced at 8c per share. Funds from the raise will be applied towards working capital and exploring other opportunities.

Existing shareholders and directors will also participate via way of Convertible Note that will require approval post the meeting at the end of the year. The shares are currently trading disappointingly below the issue price of the placement, despite allotment not occurring yet, which is obviously extremely upsetting for everyone that participated in the capital raise.

TinyBeans Group Ltd (ASX:TNY) has raised $8m through a two-tranche capital raise from existing and new institutional and sophisticated investors. The raise was priced at 60c per share and was managed by Bell Potter Securities.

The company will also conduct a SPP to allow existing shareholders to participate. The SPP will intend to raise another $500,000 for TinyBeans.

Tinybeans continues to see material growth in its underlying business with proceeds from the placement to assist in additional product development, marketing, general working capital purposes, and acceleration of Beanstalk, the company’s new subscription product; and as part of the capital raise, CEO, Eddie Geller, plans to convert his director loan of US$300k (plus interest accrued up to the completion date of tranche 1 of the placement) to shares at the same issue price paid by investors under the placement. To be approved at the upcoming AGM.

 

Thinking about taking the IPO leap?

Hitting the bourse this week

It was a mixed week on the IPO front. There were six new companies that hit the bourse in volatile fashion. Strong performers were Evolution Energy Minerals (ASX:EV1) which is currently trading at 50c compared to its 20c IPO price.

Another solidly strong performer was Lycaon Resources (ASX:LYN) which was lead managed by Canaccord Securities. The 20c IPO tripled on day one of trading and is holding onto its gains extremely well.

By far the worst IPO we have seen in a while was Tissue Repair Ltd (ASX:TRP) which raised money at $1.15 per share and is currently trading at just 70c per share. This is almost a 40% loss on just its second day of trade.

Unfortunately, investors are going to need a lot of those tissues if this performance continues (please note, we are not being dirty).

We are eagerly awaiting the debut of Ventia Services Group Limited (ASX:VNT) today. Here at 180 Markets, we received a huge amount of interest in VNT. Cooper Metals Limited (ASX:CPM) is also expected to list today, finally after a long and delayed process.

Company Name ASX Code Listing Date Issue Price Price as of Midday Friday Change from issue price to current price
Evolution Energy Minerals Limited EV1 16/11/21 $ 0.20 $ 0.480 140.00%
Kalgoorlie gold Mining Limited KAL 17/11/21 $ 0.20 $ 0.165 -17.50%
Lycaon Resources Limited LYN 17/11/21 $ 0.20 $ 0.530 165.00%
Tissue Repair Ltd TRP 18/11/21 $ 1.15 $ 0.680 -40.87%
Cooper Metals Limited CPM 19/11/21 $ 0.20 $ 0.205 2.50%
Ventia Services Group Limited VNT 19/11/21 $ 1.70

 

Listing next week

Next week there are 7-10 companies that are expected to list. Popular on 180 Markets were Radiopharm Theranostics Limited (ASX:RAD), Nimy Resources Limited (ASX:NIM) and Orange Minerals (ASX:OMX). We wish all investors who participated in these IPOs the best of luck with their new investments.

Company Name ASX Code Listing Date Issue Price
Nimy Resources Limited NIM 22/11/21 $ 0.20
Parabellum Resources Limited PBL 22/11/21 $ 0.20
RAS Technology Holdings Limited RTH 23/11/21 $ 1.50
EBR Systems Inc. EBR 24/11/21 USD$1.08
Radiopharm Theranostics Limited RAD 25/11/21 $ 0.60
Orange Minerals NL OMX 25/11/21 $ 0.20
Artrya Limited AYA 26/11/21 $ 1.35

 

180 Markets’ recent performers

Company Name ASX Code Market Cap Issue Price Free Attaching Options Price Midday Friday % Change from issue price to current price
AUSTRALIAN VANADIUM LIMITED AVL $82M $ 0.025 1:1 AVLOA $ 0.026 4.00%
RENASCOR RESOURCES RNU $236.1M $ 0.011 1:2 RNUOB $ 0.122 1009.09%
KALINA POWER LIMITED KPO $43.7M $ 0.027 $ 0.030 11.11%
ANTILLES GOLD LIMITED AAU $23.1M $ 0.0775 1:2 attaching options to be listed $ 0.076 -1.94%
VOLT RESOURCES LIMITED VRC $76.8M $ 0.015 $ 0.028 86.67%
ALLIGATOR ENERGY LTD AGE $222.6M $ 0.007 1:2 AGEOB $ 0.075 971.43%
EDEN INNOVATIONS LTD EDE $53.1M $ 0.022 1:2 EDEO $ 0.025 13.64%
INVION LIMITED IVX $134.9M $ 0.022 1:2 attaching options to be listed 0.022 0.00%
INCA MINERALS LIMITED ICG $62.5M $ 0.100 1:3 ICGOA + 1:3 ICGOB + 1:3 ICGOC $ 0.130 30.00%
ECLIPSE METALS LIMITED EPM $111M $ 0.015 $ 0.058 286.67%
REDSTONE RESOURCES LIMITED RDS $11.5M $ 0.012 $ 0.016 33.33%
KORE POTASH PLC KP2 $15M $ 0.020 $ 0.021 5.00%

 

180 Markets was established by investors for investors, and has become Australia’s leading deal sharing platform, with a difference. In just 12 months, 180 Markets has established a 1800+ strong investor base that has enjoyed access over 650 placements on the ASX, including more than 30 placements where 180 Markets has been lead manager.

If you are interested in Placements, IPOs and RTOs sign up at www.180markets.com.au

This article was developed by 180 Markets, a Stockhead advertiser at the time of publishing.

 This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

The post ASX Capital Raise Roundup: Fighting inflation the Dalio way – with some retail therapy appeared first on Stockhead.








Author: 180 Markets

Articles

Resources Top 5: Hopeful uranium stocks, an important graphite deal, and lots of imminent news flow

Aspiring graphite miner Black Rock invited to finalise agreement with Tanzanian government Cauldron Energy dusts off Yanrey uranium project, despite ……

  • Aspiring graphite miner Black Rock invited to finalise agreement with Tanzanian government
  • Cauldron Energy dusts off Yanrey uranium project, despite government opposition
  • Redstone (copper, cobalt), Latrobe (magnesium) and Empire (gold, copper, nickel, PGEs) up on no news

Here are the biggest small cap resources winners in early trade, Tuesday December 7.

 

CAULDRON ENERGY (ASX:CXU)

(Up on no news)

When the WA state government implemented a ban on most new uranium mines in 2017, CXU stopped work at its flagship ‘Yanrey’ uranium project and began searching for other dirt to play with.

It now has a historic gold project called ‘Blackwood’ in Victoria and a silica sands play called ‘Ashburton’ in WA. It is also poking around Yanrey again, which is a lot more interesting now that uranium prices are on the move.

While government support (or lack thereof) for new mines has not changed, a recent survey uncovered a bunch of “highly prospective targets for follow-up drilling” at Yanrey.

“Our ultimate objective is to explore for uranium mineralisation amenable to extraction by ISR,” CXU exec chairman Simon Youds says.

“Economic deposits of sandstone-hosted, palaeochannel-style uranium can be mined using ISR in the lowest cost quartile of uranium mined globally.”

“This characteristic makes these deposits extremely attractive for mining at any uranium price and necessarily must form the basis of any uranium resource portfolio.”

Yanrey exists within a larger uranium province that is slowly being uncovered, Youds says.

“There is potential here for a scale comparable to the best uranium-endowed province globally and that, with astute leadership, Western Australia is at the threshold of a new energy resources boom.”

At Blackwood, CXU has stumbled upon visible gold in an underground area historically excavated for access purposes only:

“The visible gold observed, coupled with the beautiful sandstone-shale contact and structurally complex geology, provides an exciting new target for drill testing,” Youds said in November.

“The observation of visible gold further increases our confidence in the remaining mineral potential of these historical mines.”

The $11.5m market cap stock is down 6% over the past month, and 30% year-to-date. It had $1.5m in the bank at the end of September.


 

REDSTONE RESOURCES (ASX:RDS)

(Up on no news)

The nanocap, which has partially bounced back from recent losses in early trade Tuesday, is drilling to grow the 38,000t copper, 535t cobalt ‘Tollu Copper Vein’ deposit, part of the ‘West Musgrave’ project in WA.

Tollu hosts “a giant swarm of hydrothermal copper rich veins” in a mineralised system covering a +5sqkm area, ~40km from OZ Minerals’ (ASX:OZL) world-class Nebo-Babel nickel-copper deposit.

A conceptual (theoretical, not real yet) exploration target suggests up to 627,000t of copper may be present, the company says.

Recent portable XRF analysis of new drilling returned hits like 16m at 2.62% copper from a 74m downhole, including 6m at 6% copper from 76m.

These will be confirmed by traditional assay, the company says. Labs are backed up to the hilt, so who knows when that will be.

RDS say exploration will continue “at the earliest opportunity” in 2022 with a deeper RC drilling program at priority targets.

The $12m market cap stock is up 30% over the past month. It had $2.6m in the bank at the end of the September quarter.

 

BLACK ROCK MINING (ASX:BKT)

It’s been a good news week for aspiring graphite miner BKT.

Today it announced it had been invited by the Mining Commission to attend a ceremony in Dar es Salaam, Tanzania on Monday 13 December “to finalise an agreement with the Government of Tanzania”.

Black Rock managing director John de Vries is currently in country and is expected to attend, BKT says.

The company has also just completed a massive 500t pilot plant run – the largest ever, it says — to send off for qualification (testing) to potential customers in North America, Asia and Europe.

This will ultimately support project financing, BKT says.

The company now needs to finalise off-take terms with cornerstone investor POSCO, and secure finance to underpin a $US116m Phase 1 development capex program.

The $183m market cap stock is down 10% over the past month, and up 115% year-to-date. It had $9.3m in the bank at the end of September.

 

LATROBE MAGNESIUM (ASX:LMG)

(Up on no news)

Early works – like fixing fences, site clean-up, contracting — are happening apace at LMG’s magnesium project in Victoria’s Latrobe Valley, with construction on an initial 1,000 tonne per annum magnesium plant due to kick off in Q1 2022.

Production starts up to 12 months later in Q4 2022.

The plant will be expanded to 10,000 tonnes per annum magnesium shortly thereafter, with further plant capacity expansion to be considered once it is operating successfully.

Magnesium has the best strength-to-weight ratio of all common structural metals and is increasingly used in the manufacture of car parts, laptop computers, mobile phones, and power tools.

In November, LMG said current magnesium price was US$6,150 per metric tonne and expected to hold.

“LMG’s revenue estimates are based upon US$3,250 per tonne which was the magnesium price in June 2021, before the China supply shortage commenced in September 2021,” it says.

“If the current price of US$6,150 per metric tonne held long term, it would increase LMG’s estimate of EBITDA for its 10,000tpa plant by some $56m.”

In 2020, world magnesium production was ~1 million tonnes, of which China supplied ~85%.  China has begun a 13-year plan to increase Mg in cars from 8.6kg to 45kg by 2030, requiring an additional 1 million tonnes of new Mg production per annum.

$131m market cap LMG is down 21% over the past month, and up 335% year-to-date. It has raised $11.5m  via placement to help fund the initial $39m 1,000tpa plant.

 

EMPIRE RESOURCES (ASX:ERL)

(Up on no news)

This busy polymetallic explorer has already drilled 13,000m so far in 2021 at the ‘Penny’s and Yuinmery’ projects in WA, with diamond drilling of some juicy gold, copper, and nickel-copper-PGE targets at Yuinmery due to kick off sometime this month.

ERL would’ve drilled even more if not for issues getting hold of a rig, something the company intends to fix in 2022.

“Our exploration plans for 2022 include the lock-in of a core drilling rig and driller for exclusive use by Empire,” chairman Michael Ruane says.

“This should assist in accelerating at least the drilling component of our exploration programs for the forthcoming period. The rig will be particularly useful for the deep drilling required for the promising Yuinmery targets (eg Smiths Well/YT01).”

The rig should be ready for commissioning this month, he says.

The $14.85m market cap stock is up 30% over the past month. It had about $3.5m in the bank at the end of November.


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Author: Reuben Adams

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Energy & Critical Metals

Met testwork proves Sovereign’s Kasiya will deliver a premium natural rutile product

Special Report: Metallurgical testwork has confirmed Sovereign Metals’ Kasiya project in Malawi will deliver a premium natural rutile product, setting…

Metallurgical testwork has confirmed Sovereign Metals’ Kasiya project in Malawi will deliver a premium natural rutile product, setting the stage for the company’s landmark scoping study.

Testwork continues to demonstrate the world class nature of Sovereign’s (ASX:SVM) Kasiya deposit, with simple and conventional processing delivering levels of 95% to 97.2% TiO2 with low impurities at stand-out metallurgical recoveries ranging from 94% to 100%.

That makes Kasiya competitive on TiO2 grades with some of the world’s largest natural rutile operations like Iluka’s Sierra Rutile and Rio Tinto’s Richards Bay Minerals.

It opens the door for discussions with tier-1 offtakers in the markets for TiO2 pigment, titanium metal and welding, where customers are facing widening supply deficits in a strengthening market.

Additionally, testwork has shown conventional flotation methods can be used to produce a coarse flake graphite by-product from rutile gravity tails with 60% at a coarseness of +150µm, suggesting it will have a high basket value when sold to market.

A program at SGS Lakefield in Canada confirmed simple processing methods delivered a very coarse-flake graphite concentrate at 96.3% TGC.

“Consistently achieving premium rutile specifications with stand-out recoveries via conventional “off the shelf” processing methods reinforces the robustness of metallurgical and processing performance of the Kasiya rutile mineralisation ahead of the upcoming Scoping Study,” Sovereign managing director Dr Julian Stephens said.

“These continued very high-quality product specifications should generate further interest from end-users across the titanium sector as the global structural deficit in natural rutile supply continues to widen.”

Processed rutile being despatched to potential customers. Pic: Sovereign Metals

Kasiya scoping study round the corner

With the results in today’s announcement, Sovereign has now demonstrated the impressive metallurgical qualities of the Kasiya resource in two separate rounds of met testwork.

The testwork also confirms Kasiya will deliver strong recoveries and product specifications based on conventional off-the-shelf processing technology, which bodes well for its future development.

Proving the original results were certainly no fluke and opening the door to interest from Tier-1 offtake customers, they set up Sovereign to release a scoping study in the coming weeks.

With most of the technical disciplines now complete, mining optimisation and capital and operating cost estimations are currently being finalised.

A new indicated mineral resource estimate is also on the way after substantial resource drilling to build upon the world-class inferred resource released in June.

That confirmed Kasiya as one of the largest natural rutile deposits in the world, with an inferred resource of 644Mt at 1.01% rutile and a high-grade component of 137Mt at 1.41% rutile.

 


 

 

This article was developed in collaboration with Sovereign Metals, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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Author: Special Report

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I see you: Red Mountain Mining contacts heavy rare earth elements at Mt Mansbridge

Special Report: Red Mountain Mining’s 1,200m RC drilling program at the Mt Mansbridge project in WA is off to a … Read More
The post I see you: Red…

Red Mountain Mining’s 1,200m RC drilling program at the Mt Mansbridge project in WA is off to a good start, with heavy rare earth elements (HREE) discovered in four holes.

A shortened drill program due to the onset of the Kimberley wet season, hasn’t stopped the company cracking open xenotime (dysprosium) mineral within sample drill chips.

There’s also a pulse-raising 6m mineralized heavy rare earth zone (49-55m) intersected in hole MMRC002 at the Solo prospect and finally drilling has intersected altered peridotite at Déjà vu – prospective for cobalt mineralization.

Red Mountain Mining (ASX:RMX) is already prepped for drilling once the site is accessible again in early 2022.

Solo prospect samples prioritised for assay

The prospect is a +200m NW-SE trending zone of HREE mineralisation initially identified by BHP (ASX:BHP) during uranium exploration in the 1980’s.

Three RC holes for 451m were completed at the prospect during the drilling program, with a 6m zone (49-55m) of xenotime mineralisation identified.

Visual estimations of the xenotime mineralisation ranged from between 1-10% of the total composition of minerals over the 6m zone.

On-site analysis using a portable XRF confirmed the zone as anomalous in both yttrium and ysprosium, and the zone has been prioritized for assay at the laboratory for immediate analysis.

Red Mountain Mining
Rare earth element and nickel-copper-cobalt-PGE prospects at the Mt Mansbridge project

Déjà vu prospective for cobalt

Previous sporadic sampling and assaying at the Déjà vu prospect returned several encouraging cobalt assay results between 70-100m including 0.34%, 0.32% and 0.22% cobalt.

Litho-geochemical studies recently undertaken by geochemical and geological consultants highlighted the cobalt as primary magmatic related (i.e. not weathering enrichment) while the anomalous cobalt values can’t be down to just silicate minerals within the peridotite.

Hole MMRC004 has been drilled to a depth of 75m, with the hole designed to provide further geological information and a comprehensive set of samples around the existing cobalt anomaly.

Samples have been prioritized at the lab for immediate assay, with further deeper drilling and an additional hole to the north and south planned for early 2022.

 


 

 

This article was developed in collaboration with Red Mountain Mining Limited, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

The post I see you: Red Mountain Mining contacts heavy rare earth elements at Mt Mansbridge appeared first on Stockhead.




Author: Special Report

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