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Hawkmoon Resources Raises Funds, Commences Exploration at Wilson and Romeo Projects, Quebec

Source: The Critical Investor for Streetwise Reports   08/12/2021

The Critical Investor looks into Hawkmoon Resources’ gold projects in Quebec….

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This article was originally published by The Gold Report

Source: The Critical Investor for Streetwise Reports   08/12/2021

The Critical Investor looks into Hawkmoon Resources‘ gold projects in Quebec.

  1. Introduction

Quebec is one of the best mining jurisdictions in the world, containing several of the largest gold trends worldwide, among those the giant Abitibi Greenstone Belt (180 million ounces [Moz] of gold production so far). When tiny junior Hawkmoon Resources (HM:CSE; 966:FSE) announced its IPO and its strategy to do exploration projects in exactly this region, I was curious to see what kind of projects it had in mind. I met CEO Branden Haynes much earlier, back in 2019, and it was already obvious he was extremely passionate about his dream to have his own exploration venture, which is something I like to see, and which we could easily discuss for hours, besides one of his other passions, which is European football, more specifically FC Barcelona and Dutch football (I am a Dutchman myself).

Since then we were both looking forward to the listing of Hawkmoon Resources in the summer of 2020, but it got delayed by COVID-19 unfortunately. The wait was finally over at April 19, 2021, when the common shares began trading on the Canadian Securities Exchange (CSE). The qualifying asset at the time was the Romeo gold property, but the company soon after released the acquisition of the Wilson property, and after raising another C$797k recently, exploration has commenced on both properties, with the focus clearly on the flagship Wilson property.

All pictures are company material, unless stated otherwise.

All currencies are in US Dollars, unless stated otherwise.

  1. Company

Hawkmoon Resources currently has an extremely tight 45.3 million shares outstanding (fully diluted 65.16 million), 19.8 million warrants (the majority at @C$0.15 expiring in 2023) and several option series to the tune of 3.8 million options in total, the majority priced at C$0.13 and expiring from 2022 onwards. Hawkmoon Resources has a current, very tiny market capitalization of C$4.0 million based on the August 12, 2021, share price of C$0.09.

Hawkmoon Resources, 3 month timeframe (Source: tmxmoney.com)

The current cash position of Hawkmoon Resources is a healthy C$1.6 million, after raising C$797k very recently. The company raised C$321k flow-through units (C$0.10c and a full warrant), and C$475k non-flow-through units (C$0.07 and a full warrant), both warrants exercisable at C$0.17 with a exercise period of 24 months from the date of issuance. If the upcoming drill results at Wilson prove to be successful, the company is looking to raise more soon. Management and the Board hold about 16.9%, but the company also enjoys approx. 12.92% institutional ownership, for example AlphaNorth Asset Management.

  1. Management

CEO Branden Haynes: Venture Capital and IR specialist, guiding startups in the mining space at NOBO Capital from 2010–2018, before that working for 12 years as an investment advisor at Octagon Capital. Branden was also involved with Minefinders (MFL:TSX), which was acquired by Goldcorp Inc.

VP Exploration Thomas Clarke: professionally registered geologist (MSc), worked on gold, platinum group metals, copper and energy projects. As a director of Bonterra Resources (TSX.V:BTR), he coordinated all exploration, which led to the definition of the first NI 43-101 compliant gold resource of 1 Moz gold on the Gladiator deposit by Snowden. He has 16 years of experience as a successful geologist and has been a director of public companies continually since May of 2010.

  1. Projects

Hawkmoon Resources has a portfolio of three projects: Wilson, Romeo and Lava, with Wilson clearly being the flagship project.

Wilson is located at the Abitibi Greenstone Belt, 150km east of Val D’Or, covers 1,660 hectares, is on trend with projects like Benoist and Moneta Porcupine West, and the company is earning into a 100% interest through a JV with Cartier Resources. The terms encompass a five-year period, 5 million shares, cash payments of C$2 million, and C$6 million in exploration expenditures (24,000 meters of drilling). Cartier will be granted a 2% net smelter return (NSR) production royalty on the Wilson property, of which half (1% NSR) is redeemable for C$4 million. There are two other small royalty holders: Viking Gold retains the following royalties NSR: i) a 0.50% NSR royalty on the Verneuil West Property, half of which (0.25% NSR) can be bought back for $250,000, and ii) a 0.35 % NSR royalty on the Verneuil Central Property, half of which (0.175% NSR) can be bought back for $175,000. Golden Tag retains a 0.15 % NSR royalty on the Verneuil Central Property, half of which (0.075% NSR) can be bought for $75,000.

Hawkmoon

The project has already seen lots of drilling in the past under eight different operators since 1956, to be precise 133 diamond drill holes and 24,050 meters of drilling. Cartier as the last operator drilled 19 holes for 8047 meters in 2017. The focus has been on the Toussaint target, which was discovered in 1992 and sports a historical gold resource of 45 koz @ 7.1g/t Au (1994), and has seen the most drilling (60%) on the project. Highlights of other targets at Wilson are, to get an idea of property potential besides Toussaint: 

  • Midrim : 64.6 g/t Au over 0.4 m in drill core; 5.2 g/t Au over 4.6 m in drill core and 6.3 g/t au over 2.0 m in drill hole;
  • T & M: 2.6 g/t Au over 0.5 m in drill core; 8.0 g/t Au over 0.8 m in a channel and 297.9 g/t Au in a grab sample;
  • Benoist : 1.0 g/t au over 3.5 m in drill core; 2.3 g/t Au over 2.0 m in a channel and 31.3 g/t Au in a grab sample, and
  • Moneta Porcupine North: 3.9 g/t Au over 2.0 m in a channel and 14.3 g/t Au in a grab sample.

When a project has seen a lot of drilling and different operators in the past, I always wonder why no previous operator succeeded, what the remaining potential could be, and what the current operator would do differently. And in this particular case what caused Cartier Resources to option it out after completing a fair bit of drilling. CEO Haynes had this to answer:

Cartier Resources is focused on their Chimo Mine deposit. Chimo consumes the majority of Cartier’s time and resources which leaves the Wilson property unworked since 2017. Hawkmoon’s VP of Exploration Thomas Clarke is friends with Cartier’s CEO, Philippe Cloutier, and therefore the  opportunity arose for Hawkmoon to discuss an option deal with Cartier for the Wilson property.”

Among other things, Cartier Resources completed an IP survey, and delineated areas of moderate to high chargeability. For your information, chargeability is caused by elevated metals in the rock being surveyed. They defined a series of exploration targets that need to be followed up and examined. These anomalies are shown below in figure 6 (western portion) and figure 7 (eastern portion):

Hawkmoon

The upcoming 5,000 meter drill program at Wilson is currently in progress, and is targeting several historical drill intercepts from both the Toussaint and Midrim structures, connect the showings, drill under the trenches, seeking to extend the Toussaint showing to the west and the Midrim showing to the east and verify and expand the Moneta-Porcupine showing.

According to the news release of August 12, 2021, Hawkmoon has drilled, logged and sampled the first fourteen holes on the Wilson Gold Project so far, and seven of these initial fourteen holes have been submitted to ALS Labs in Val d’Or for fire assay. Holes 15 to 18 have been logged at the property and will be sent to Val d’Or to be cut and sampled. Hawkmoon is currently drilling hole HMW21-19 and anticipates drilling a total of 28 holes on Wilson. The company anticipates to complete the drill program at Midrim by the end of August, and depending on the turnaround time at the lab, assays should be coming in after Labor Day (first Monday of September, in this case September 6, 2021).

The second most important project is the Romeo project, which is optioned from North American Exploration, for a 100% earn in. The terms include a three-year earn in period, a C$150k cash payment, the issuing of 1.5 million shares, and C$1 million exploration expenditures. This project is also located in the Abitibi Greenstone Belt in Quebec, but this time in the Urban Barry Belt. Well-known deposits over there are Windfall (Osisko), Gladiator (Bonterra) and Barry (also Bonterra). The property covers 2,984 hectares, and is located close to the Windfall deposit of Osisko Mining.

Hawkmoon

Hawkmoon Resources already conducted a local electromagnetic and total magnetic survey in 2019, and followed up with a soil sampling and channel sampling program in 2020.

Hawkmoon

Soil sampling at Romeo project, Quebec

The 2021 exploration program will focus on the area where the company discovered a series of five parallel shear zones in August of 2020. The southernmost of these shears, the Forty-Foot shear, appears to be a possible surficial expression of the regional scale Bank Fault identified by Osisko Mining on its neighboring Windfall property.

Hawkmoon

Management is focusing on the area between the Forty-Foot shear and the property boundary to the south. The current program will include outcrop clearing, trenching and sampling in this prospective area of Romeo, and the company also intends to explore an outcrop just east of Romeo that appears to be prospective.

The third project is the recently acquired Lava property, also in Quebec. Hawkmoon has the option to acquire 100% of the property from Breakaway Exploration. The company has the exclusive option to earn a 100% interest in Lava by paying C$115k in cash, issuing 1.32 million shares and completing C$500k of work expenditures over a period of three years. The vendors will retain a 3% net smelter return royalty. One percent of the NSR may be purchased by Hawkmoon for C$1 million.

Lava consists of 2,061 hectares, and is located closely to the Belleterre project, focused on exploration around the historical Belleterre Mine, done by VIOR (VIO.V).

Hawkmoon

The property has seen exploration in the past; historical results look like this, with most results occurring along a south-west to north-east trending corridor, called the Lavallée Shear Zone or LSZ:

Hawkmoon

The project will see more targeted sampling and 1,000m of drilling in November  2021, as a consequence of management being able to charter the drillers doing Wilson at a very cheap rate (C$100/m all in) for Lava in that period. The company is looking to reinterpret previous work on the property. This includes 2D inversion studies on the 2007 induced polarization and resistivity data and 3D modelling of historical diamond drilling. Management intends to conduct a trenching and rock sampling program to develop drill targets at the LSZ.

  1. Key points
  • Management recently raised C$797k, and is well financed to do exploration on all three projects, which are all at very interesting locations, often on trend with known deposits
  • Quebec is one of the busiest jurisdictions for mining and exploration, and also has seen one of the largest gold productions worldwide, and still has numerous operating mines, lots of development projects and exploration
  • Drilling on the flagship Wilson project has commenced, sampling, etc. at Romeo has already started. Results are expected in 3–4 weeks.
  • Hawkmoon is looking to expand on earlier exploration work done by Cartier and others on the Wilson property, with lots of targets to follow up
  • Romeo and Lava could provide two more chances on exploration success in 2021

With a super tiny C$4.0 million market cap, any drilling success at Wilson could potentially propel Hawkmoon Resources to (much) higher levels in my view, and Romeo and Lava exploration could return interesting results as well. Stay tuned!

Hawkmoon

This article is also published on www.criticalinvestor.eu. To never miss a thing, please subscribe to my free newsletter, in order to get an email notice of my new articles soon after they are published.

The Critical Investor is a newsletter and comprehensive junior mining platform, providing analysis, blog and newsfeed and all sorts of information about junior mining. The editor is an avid and critical junior mining stock investor from The Netherlands, with an MSc background in construction/project management. Number cruncher at project economics, looking for high quality companies, mostly growth/turnaround/catalyst-driven to avoid too much dependence/influence of long-term commodity pricing/market sentiments, and often looking for long-term deep value. Getting burned in the past himself at junior mining investments by following overly positive sources that more often than not avoided to mention (hidden) risks or critical flaws, The Critical Investor learned his lesson well, and goes a few steps further ever since, providing a fresh, more in-depth, and critical vision on things, hence the name.

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Disclaimer: The author is not a registered investment advisor, and currently has a long position in this stock. Hawkmoon Resources is a sponsoring company. All facts are to be checked by the reader. For more information go to www.hawkmoonresources.com and read the company’s profile and official documents on www.sedar.com, also for important risk disclosures. This article is provided for information purposes only, and is not intended to be investment advice of any kind, and all readers are encouraged to do their own due diligence, and talk to their own licensed investment advisors prior to making any investment decisions.

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Energy & Critical Metals

IPO Watch: Lithium explorer Winsome Resources listed today – here’s how it performed

Two companies IPOd today but the biggest winner was lithium explorer Winsome Resources (ASX:WR1) who listed after raising a tidy … Read More
The post…

Two companies IPOd today but the biggest winner was lithium explorer Winsome Resources (ASX:WR1) who listed after raising a tidy $18 million at $0.20 per share.

The company’s shares were trading at 26 cents per share near close of play –  a healthy 30% above issue price.

Funds from the IPO will accelerate the company’s exploration at its three project areas – Cancet, Adina and Sirmac-Clappierin the James Bay Region of Quebec Province, Canada.

The aim is to establish a maiden resource of high quality spodumene concentrate that is suitable for conversion across multiple battery applications.

Notably, the most advanced project – Cancet – is a shallow, high grade lithium deposit and is strategically located close to established infrastructure and supply chains.

Plus, the company says that Quebec is one of the world’s most supportive, lowest risk mining regions, renowned for its world-class infrastructure and support for mining developments and is at the forefront of the North American push to develop its own EV battery supply chain.

Winsome managing director Chris Evans was previously MD of FireFinch (ASX:FFX) and COO of Altura Mining (ASX:AJM) – so it’s safe to say he knows what he’s talking about when he says it’s an exciting time to be exploring for lithium.

“Current trends show up to 10 times more lithium is required in the next decade to meet the demand and it is going to require a huge investment to get there,” Evans said.

“With more than 99 per cent of the world’s lithium reserves located in Australia, Argentina, Chile and China, our projects offer jurisdictional diversity and opportunity to contribute to the expanding North American battery industry.”


 

Biome Australia (ASX:BIO)

Also listing today was microbiome health company Biome Australia, who licences, develops and markets innovative, evidence-based, complementary medicines, including nutraceuticals (food-based vitamins and weight management products) and live biotherapeutics (probiotics).

The company IPOd at $8 million at $0.20 per share, and its shares were trading at 11 cents per share – a huuuge 41.25% drop below the issue price.

Biome will use the funds to accelerate new product development and commercialisation in the complementary medicines industry – which it says in Australia is estimated to be worth $5.69 billion.

The company currently distributes 22 products through more than 2,300 community pharmacies and a range of health practitioners and health food stores in Australia, New Zealand and the United Kingdom, with some of its products also available online.

“While supporting health professionals to improve patient health outcomes, Biome has doubled its revenue over each of the last two financial years, with annualised sales revenue to October 2021 showing continued growth,” chairman Ilario Faenza said.

It has a clear growth strategy that will be propelled by the IPO proceeds, accelerating commercialisation and product development.”


 

The post IPO Watch: Lithium explorer Winsome Resources listed today – here’s how it performed appeared first on Stockhead.



Author: Emma Davies

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Galan Lithium’s PEA returns robust economics for 25-year Candelas Lithium project

Special report: A competitive cash production cost for lithium carbonate of US$4,277/t positions the Candelas project as a low-cost developer … Read…

A competitive cash production cost for lithium carbonate of US$4,277/t positions the Candelas project as a low-cost developer in the lithium industry.

Galan Lithiums’ preliminary economic assessment (PEA) for the Candelas Project in Argentina’s Catamarca Province has returned ‘robust’ economic results, featuring a pre-tax NPV of US$1,225 million and IRR of 29.9% with a four-year payback period.

The study has estimated a production profile of 14,000 tonnes per annum of battery grade lithium carbonate (LCE) product including some technical grade product for the first three years.

This means Galan (ASX:GLN) now has two PEA study level projects with combined long term production potential of 34,000 tpa LCE.

The company believes the outcomes at Candelas can be further optimised and enhanced to refine the project’s potential.

Pic: Supplied

‘Projects among the lowest cost of any future products’

Galan (ASX:GLN) managing director Juan Pablo Vargas de la Vega said: “We remain excited about the potential value add for our shareholders once we enter the lithium market with prices expected to be +US25k/t LCE.

“Our projects would now be among the lowest cost of any future producers in the lithium industry, due to their high grade and low impurity setting, green credentials and a low carbon footprint.

“Galan is excited to be a part of the solution to the global decarbonisation story.”

Optimising next steps

Vega added that the company now has a solid commercial base to move forward with a clean, low-tech, and low energy solution.

“We also believe we have capability to further review and reduce Opex and Capex.

“We have learnt so much more about Candelas on this journey and will continue to apply our findings in optimising our next steps at the pre-feasibility and definitive feasibility studies.

“Importantly, we will also continue to review the possibility to produce lithium chloride concentrate to reduce time to market and capital expenditure at both of our projects.

“As a result, we remain determined to bring our projects to market in the shortest possible time so that we can supply lithium for future lithium battery requirements needed for electric vehicles.”

Preparation of the project’s PEA was managed by Ad Infinitum and Galan’s project manager for the engineering inputs including the recovery method, project layout and infrastructure, capital cost and operating cost estimates and overall economic evaluation.

The other sections of the study were managed by consultants and employees of Galan Lithium Limited.

Market outlook

Galan has assumed a conservative view to long term lithium pricing and as a result, has taken a mid-point between the long-term pricing between the 17th and 18th Editions from Roskill of US$18,594/t.

Roskill expects contract prices for lithium carbonate battery grade and hydroxide to remain near to or above US$25,000/t on a long-term real (inflation adjusted) basis.

After softening in 2019 and 2020, prices on a nominal basis the long-term lithium carbonate battery grade price is projected to rise to around US$30,000-40,000/t .

Strong demand growth for refined lithium products is forecast to be sustained by expanding production, new market entrants and the draw-down of stockpiled material through to 2026, though a fundamental supply deficit is expected to form in the late 2020s.

Significant further investment in expanding production capacity at existing operations, in addition to new projects and secondary lithium sources will be necessary to meet projected demand growth through to 2030.

 


 

 

This article was developed in collaboration with Galan Lithium, 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 Galan Lithium’s PEA returns robust economics for 25-year Candelas Lithium project appeared first on Stockhead.



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Lunnon Metals charts path to success in world-class nickel domain after transformative year

Special Report: While the world is on the lookout for nickel sulphide deposits anywhere they can be found, Lunnon Metals … Read More
The post Lunnon…

While the world is on the lookout for nickel sulphide deposits anywhere they can be found, Lunnon Metals chief Ed Ainscough maintains there’s no place like Kambalda.

The mining town 50km south of Kalgoorlie in WA has produced 1.6Mt of the stainless steel and now lithium ion battery ingredient since 1966, when WMC driller Jack Lunnon punched the discovery hole and gave birth to Australia’s first nickel boom.

Since listing in a $15 million IPO in June, Lunnon (ASX:LM8) has continued Kambalda’s rich legacy of delivering high grade nickel.

Lunnon owns the Foster and Jan nickel mines from which WMC produced more than 90,000t of nickel metal from the 1975 to 1994, operations that missed the early 2000s nickel revival that proved the making of ASX success stories Mincor, IGO and Panoramic.

Lunnon already boasts 39,000t in resources at typical Kambalda nickel grades of 3.2% and drilling since its float is already delivering high grade results.

These have confirmed historical results from kilometres of old WMC drill core logged by Lunnon at the Kambalda coreyard and backed the Lunnon team’s conviction in the quality of the Foster and Jan assets.

“One of the benefits at Kambalda is that generally above a 1% cut off if you’re going to mine, it’s going to be in the high 2s or 3s,” Ainscough said.

“And it is very pleasing to not only reproduce the nickel where WMC was hitting it, but to be hitting it at the same level of mineralisation.

“I just think that speaks to the quality of the camp and that particular contact between the Kambalda Komatiite and the Lunnon Basalt.

“It’s a world famous contact, and nearly all the nickel in Kambalda is on or close to that contact, and it’s proven to be the case so far. You’ve got to persevere and be resilient because the rewards are definitely worth the effort.”

Lunnon Metals
Lunnon has hit high grades on the contact of the Kambalda Komatiite and Lunnon Basalt. Pic: Lunnon Metals

An option to play the Kambalda narrative

Kambalda is on the cusp of a revival.

Mincor Resources will open the first new nickel mine in the district since production at the Long mine ceased in 2018, when its Cassini operation starts production in 2022.

That will see BHP’s Nickel West division restart its Kambalda concentrator, just a few clicks from Foster/Jan, for the first time in four years.

Unfortunately for investors there are not a lot of options to play the Kambalda story, with what was a diverse field of ASX companies a few years ago whittled down to just Mincor and Lunnon after Panoramic sold Lanfranchi into private hands in 2018.

That’s where the opportunity lies, Ainscough says.

“Lanfranchi’s private now, so that’s been a big message I’ve been trying to sell – if you want to invest in Kambalda through the ASX it’s Mincor, and it’s a half-a-billion dollar company plus, or little old us at $50 million,” Ainscough said.

The key for Lunnon will be resource growth, which Ainscough said is a major aim in 2022 after its success with the drill bit in recent months.

“It’s a 10 times gap and the encouragement is that’s a big gap, but it’s a gap we feel we can make a big effort to fill next year,” he said.

“That will be filled by drill results and resource growth, but we’ve just got to get the runs on the board…  but what better place to be trying to do that than Kambalda?”

Lunnon Metals
Lunnon has hit high grades on the contact of the Kambalda Komatiite and Lunnon Basalt. Pic: Lunnon Metals

East Cooee resource drilling under way

One of the company’s priority targets outside its Foster and Jan mines is East Cooee, a prospect to the north-northwest of Jan consisting of known hanging wall nickel mineralisation that was underexplored when the mines were in WMC hands.

Since drilling began in July, assays from East Cooee have delivered a string of strong nickel grades, with Lunnon also recording a hit of 2m at 5.07% Ni in its first assays from the East Trough target in September.

Subsequent encouraging results at East Cooee have included 1m at 3.15% Ni, 2m at 2.44% Ni and a best hit of 9m (8.7m true width) at 1.66% Ni from 113m, including 1m at 7.44% Ni.

Contractors Blue Spec are now drilling the hanging wall prospect on infill drilling spacing of less than 40m x 40m to support the delivery of an initial Mineral Resource estimate.

East Cooee is just over 300m from a mothballed open cut gold pit mined by Lunnon’s major shareholder Gold Fields, providing a potential access point into a future underground development.

“That’s been a little bit of the surprise package because it’s so shallow and it’s so close to that existing gold open pit,” Ainscough said. “I hadn’t really considered  that we would have the ability so early to have a second centre on top of the resources in the Foster Mine.

“We’ve gone back there with the RC rig and we’re drilling that out probably better than 40m by 40m.

“It’s so shallow we can drill it pretty quickly, we can get that done before Christmas and then as and when we get the results back next year we should be able to put that into a maiden resource.”

Ainscough said the location of the gold mine relative to the shallow East Cooee mineralisation meant it wasn’t out of the question that study work could begin before underground drilling starts at Foster.

Lunnon Metals
East Cooee could be a second centre for Lunnon. Picture: Lunnon Metals

Warren, historical core also delivers the goods

The other areas where Lunnon is seeing success include the Warren channel, an underexplored nickel deposit which currently hosts 211,000 tonnes at 3.1% Ni for 6400t of nickel metal.

Located 1km to the northwest of Foster itself, Lunnon believes it has the potential to mirror that mine with assays from RC drilling up and down plunge of the known resource delivering impressive results.

They included a best hit of 4m at 3.44% Ni from 163m in the channel position at Warren.

“It was seen as part of Foster underground mine (by WMC),” Ainscough said.

“Where they could they tried to drill it from Foster so the drill angles are pretty horrible.

“So I think next year for us with Warren is the ability to try and demonstrate that channel is a channel in its own right and has the ability to be as long and as prospective as Foster main.

“That’s all about resource growth.”

The analysis of historical WMC core is also paying off for Lunnon, with re-assayed samples from the unmined N75C area at Foster delivering 15.75m at 2.76% nickel at an estimated 10.7m true width.

This compared well to WMC’s result for the same hole (CD 54) of 16.52m (11.2m true width) at 3.05% Ni from 268.22m.

In 2022 a deep drilling program is also planned beneath the historical Jan mine and a government-supported hole at the new Kenilworth target is due to be drilled.

“I think we’ve set the groundwork in the last six months of the year to really have a big year in 2022, hopefully leading into a buoyant nickel market,” Ainscough said.

Lunnon Metals
Owned by gold miner Gold Fields at the time, the Foster and Jan mines were among the only former WMC mines to miss the last nickel boom. Pic: Lunnon Metals

Nickel market on the up

Led by former Donegal Resources boss and now Lunnon non-executive director Ian Junk, Lunnon initially moved into the Foster and Jan projects in a joint venture with Gold Fields back in 2014.

Back then nickel was looking on the up, hovering around the US$20,000/t mark before slipping into a long bear market.

But with excitement around the use of nickel in batteries and electric vehicles and shifting supply-demand dynamics, it recently peaked above US$21,000/t, hitting a seven-year high.

Ainscough said being in Kambalda, Lunnon is seeking to outline high grade resources that are not dependent on booming nickel prices, but believes the broader market is looking positive.

“I think there is a natural rhythm to the nickel price and we’re entering into that next cycle, but the whole electric vehicle story, the energy transition, that’s all just a fantastic macro backdrop to the nickel price,” Ainscough said.

“I try not to pontificate too much about the nickel price.

“My firm belief is that wherever it gets to, being in Kambalda and mining at the grades that Kambalda delivers – I won’t say it doesn’t matter what the nickel price is but I’d certainly rather be mining in Kambalda regardless of the nickel price.

“I think there’s a momentum now to the whole electrification of everything that we’ll just see a new floor develop in the nickel price. Where that is, I don’t know.”

Q&A Time

Lunnon’s 2021 highlights

  • Acquiring 100% of the Kambalda Nickel Project.
  • Fully underwritten, oversubscribed, successful $15M IPO.
  • Drill rigs turning within a month from a standing start.
  • HIT NICKEL – confirming WMC historical data.
  • East Cooee shaping as second centre of mineral resource growth.

“Our goal is to replicate the success of those ASX companies that bought assets from WMC before the last nickel boom. Each one of the above milestones is a key step to demonstrating we are on that trajectory and can offer investors a similar growth story leading into the next nickel cycle.”

Where is the nickel market heading?

“LM8 sees the macro setting for nickel as extremely positive; there are generational shifts under way at country, government, city and corporate levels regarding the push to achieve net zero goals that all tie in with the energy transition away from fossil fuels.

“These are all strongly in favour of nickel being an important, sought after and in demand metal.

“Covid-19 has also highlighted the issue of supply chain sovereignty and having nickel assets in one of the world’s best nickel camps in a Tier 1 country offers the sort of sustainable supply chain that governments and downstream businesses will value highly in the future.”

What is the upside for Lunnon and why will it be a good investment in 2022?

“We tell investors if you want to be exposed to nickel in Kambalda (and why wouldn’t you want to be exposed to one of the world’s most famous nickel camps against the backdrop described above?), you really only have two choices on the ASX.

“Mincor, who have done an amazing job of restarting their operations in Kambalda and Widgie with Nickel West planning to open up the Kambalda Concentrator, and Lunnon Metals.

“We are just starting out on the same growth journey as Mincor. Kambalda has three key advantages: The grade is high (often >3%), Nickel West’s concentrator offers a ‘capital light’” restart solution and the nickel assets themselves are renowned for delivering extensional growth year after year.

“We are expecting a big year in 2022 for all of these reasons.”

 


 

 

This article was developed in collaboration with Lunnon 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.

 

 

The post Lunnon Metals charts path to success in world-class nickel domain after transformative year appeared first on Stockhead.




Author: Special Report

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