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Musgrave makes another ‘bonanza’ grade gold discovery in the Murchison

Special Report: Everything Musgrave touches turns to gold (literally!). The company has reported a ‘bonanza’ 898g/t gold intercept as close … Read…

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This article was originally published by Stockhead

Everything Musgrave touches turns to gold (literally!). The company has reported a ‘bonanza’ 898g/t gold intercept as close as just 49m from surface at its Big Sky prospect in Western Australia.  

Musgrave Minerals (ASX:MGV) has unearthed yet another near-surface, extremely high-grade gold intercept at its Big Sky Prospect on its Cue Project in the highly fertile Murchison region of Western Australia, while also identifying new gold mineralisation in a footwall dolerite which is open and untested along strike.

Recent drilling delivered an intersection of 28m at 35.9 grams per tonne (g/t) gold, including 1m at 898g/t, from just 49m at Big Sky. Coarse visible gold was identified in the logged sample.

Musgrave says it has also identified a new high-grade gold position within the footwall at Big Sky.

Coarse gold nuggets and gold in quartz sieved from 49-50m down hole in RC drill hole 21MORC277 at Big Sky. One metre interval assayed 898g/t Au.

“This is a very good result and highlights the high-grade potential at Big Sky over the broader 2.6km of strike,” managing director Rob Waugh said.

“It is unusual on the Yilgarn to see such coarse gold in RC drill chips. It validates our belief that there are high-grade zones within the Big Sky trend.”

Notable results returned from drilling into the footwall zone were 7m at 8.6g/t gold from 43m, including 1m at 55.2g/t from 44m; 3m at 13.2g/t gold from 3m; 2m at 6g/t from 94m; 6m at 3.6g/t from 24m; and 2m at 12.0g/t from 110m.

Several of the new high-grade gold intersections came from within a newly identified dolerite-hosted zone in the footwall, which Waugh said could be the southern extension of the same dolerite unit identified to the north on the JV ground with Evolution Mining (ASX:EVN).

“Gold can be hosted in many different rock types on the Yilgarn but dolerites are one of the most prolific host lithologies for large deposits,” Waugh explained.

Musgrave plans to test this new mineralised target zone over an extended strike extent of more than 5km in a separate 9,000m aircore drilling campaign.

Resource definition drilling is continuing at Big Sky in tandem with infill drilling at Target 14 and reverse circulation drill testing of new Starlight-type targets along the Break of Day trend.

“We are drilling full steam ahead to deliver a maiden resource for Big Sky in Q2 2022,” Waugh said.

 


 

 

This article was developed in collaboration with Musgrave Minerals, 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 Musgrave makes another ‘bonanza’ grade gold discovery in the Murchison appeared first on Stockhead.


Author: Special Report

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Great Bear To Be Acquired For $29 Per Share In Initial Consideration By Kinross Gold

Well, the seemingly impossible has happened. Great Bear Resources (TSXV: GBR), a firm with no official resource estimate as of
The post Great Bear To Be…

Well, the seemingly impossible has happened. Great Bear Resources (TSXV: GBR), a firm with no official resource estimate as of yet on its flagship property, has been bought out for C$1.8 billion in cash and shares, which represents a 31% premium to yesterdays close. Kinross Gold (TSX: K) announced the arrangement late last night jointly with the firm.

The transaction will see Kinross pay a total figure of $1.8 billion, of which up to 75% will be paid in cash. Investors are to receive the equivalent of $29.00 per share in cash, either via cash or the issuance of 3.8564 Kinross shares, based on a pro-ration formula that will see no more than 75% of the total transaction paid in cash, and no more than 40% of the deal paid in shares.

Contingent consideration of $1.00 per share is also in play, via 0.1330 Kinross shares per Great Bear share, based on whether Kinross turns the firms Dixie project into commercial production, with at least 8.5 million ounces of measured and indicated gold ounces being estimated. No resource estimate presently exists for the property, despite over 340,000 metres of drilling occurring in aggregate on the property.

The acquisition will see Great Bear’s flagship Dixie project “become a centerpiece in [Kinross’] development portfolio,” while strengthening the firms long term production portfolio. Kinross plans to conduct a 200,000 metre drill program in 2022 at the LP Fault, as it looks to rapidly advance the project. Exploration will also occur outside of the LP Fault, including at satellite deposits on the property.

The firm intends to initially develop Dixie into a high grade open pit mine, before “potentially” transforming it into an underground mine.

The transaction is to be funded via the firms cash on hand and outstanding revolving credit facility, with the deal remaining subject to approval by shareholders of Great Bear. The board has approved the transaction, while recommending that shareholders proceed with the deal. An $85 million termination fee is also in play on the transaction should Great Bear proceed with a superior proposal.

Great Bear Resources last traded at $22.93 on the TSX Venture.


Information for this briefing was found via Sedar, and Great Bear Resources. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

The post Great Bear To Be Acquired For $29 Per Share In Initial Consideration By Kinross Gold appeared first on the deep dive.




Author: Jay Lutz

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Monsters of Rock: Hydrogen an investor gold mine, actual gold looks ‘asthmatic’

The Materials sector – comprising mostly large and mid-cap miners – edged lower today but preserves a healthy +6% gain … Read More
The post Monsters…

The Materials sector – comprising mostly large and mid-cap miners – edged lower today but preserves a healthy +6% gain over the past month.

The iron ore miners fell marginally – sans FMG – despite the steelmaking ingredient’s move above $US110/t over the last few days.

The day was dominated by mid-cap Vulcan Energy (ASX:VUL) which announced a binding lithium offtake deal with behemoth Volkswagen Group — the world’s largest automaker by revenue and the largest company in Germany.

Daily Large Cap Materials heat map. Pic: CommSec.

Hydrogen remains an investor gold mine

FMG’s (ASX:FMG) positive move (1.5%) may have been hydrogen related.

It’s renewable energy arm, Fortescue Future Industries (FFI), has formed a JV with domestic utility AGL Energy to look at  converting two coal-fired power plants to produce hydrogen.

FFI is looking to repurpose infrastructure at the 1,680MW Liddell power station in the Hunter Valley region of NSW — earmarked to fully close by April 2023 — along with the 2,640MW Bayswater power station that is forecast to close by 2036.

Initial renewable electricity production through new wind and solar capacity could be 250MW, generating 30,000 t/yr of green hydrogen at a Hunter Energy Hub, FFI said.

Meanwhile, global commodities trading firm Trafigura has announced plans to build an ammonia and hydrogen plant at Port Pirie in South Australia with an initial production capacity of 20 t/d of green ammonia for export by 2025.

Trafigura plans to make a final investment decision by the end of next year, with construction starting in 2023.

 

…while actual gold looks ‘asthmatic’

Gold also edged higher to $US1,786/oz ($2,490/oz Aussie) with the big miners Kirkland Lake (ASX:KLA), and Newcrest (ASX:NCM) responding in kind.

Australia’s biggest gold miner NCM – which is making substantial profits at current prices — is down 5.65% over the past month and 12.81% year-to-date.


 

Jeffrey Halley Senior Market Analyst, Asia Pacific, OANDA says golds “asthmatic” attempt to rise overnight “is a warning that bullishness is very fragile and that selling will resume at the first sign of trouble”.

“The downside continues to be very clearly, the path of least resistance,” he says.

“In the bigger picture, gold still looks confined to a US$1,770.00 to US$1,800.00 range this week, unable to sustain momentum above or below those levels.”

“The 50,100 and 200-day moving averages (DMAs), clustered between US$1,790.30 and US$1,795.50 are capping gains.”

“$1800.00 and $1810.00 will prove equally formidable. Support lies at US$1,770.00 and US$1,760.00.”

The post Monsters of Rock: Hydrogen an investor gold mine, actual gold looks ‘asthmatic’ appeared first on Stockhead.



Author: Reuben Adams

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Energy & Critical Metals

Galan’s HWM project value jumps 120pc after update on lithium prices

Special Report: Galan Lithium has updated the Preliminary Economic Assessment (PEA) study for its flagship Hombre Muerto West (HWM) Project … Read More
The…

Galan Lithium has updated the Preliminary Economic Assessment (PEA) study for its flagship Hombre Muerto West (HWM) Project in Catamarca Province, Argentina, based on a revised lithium price.

The original PEA was based on an average lithium price of US$11,687/tonne to the year 2040, with the updated study using the long-term average real lithium price assumption (2025-2040) of US$18,594/tonne battery grade lithium carbonate (LCE).

The unleveraged pre-tax net present value (NPV) has increased to US$2.2 billion – a 120% increase from US$1 billion in 2020.

The internal rate of return (IRR) is 37.5%, the project has less than a three-year payback period and the average life-of-mine annual EBITDA is US$287 million, up from US$174 million.

The company now has two PEA study level projects – HMW and Candelas – which have a combined long term production potential of 34ktpa LCE and a combined pre-tax NPV of US$3.4 billion.

‘Phenomenal’ NPV on conservative price assumption

The updated economic study retains the original production profile of a long-life 40 years+ project at 20,000 tonnes per annum of battery grade LCE, including competitive cash production cost for Li2CO3 of US$3,518/tonne in the first quartile of global lithium cost production curve.

Galan Lithium (ASX:GLN) managing director Juan Pablo Vargas de la Vega said the updated project economics for HMW show how healthy the project is.

“Despite using a conservative long-term price assumption, HMW has delivered a phenomenal pre-tax NPV of nearly US$2.2 billion,” he said.

“The company is in an enviable space whereby it has two study level projects that can potentially deliver combined long term production levels of 34ktpa LCE along with NPVs that are above US$3.4 billion.

“As we have previously said, Galan remains excited about the potential value add for our shareholders once we enter the lithium market with prices expected to be +US25k/tonne 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.” 

Long term estimate of the contracted price of battery grade Li2CO3 developed by Roskill

DFS planned in 2022

Since the release of the original HMW PEA Study in 2020, the company has confirmed laboratory lithium chloride concentrations of 6% lithium several times and confirmed production of lithium carbonate battery grade of 99.88% LCE from its concentrate.

It has also received permits for new drilling and Stage 1 construction permits for the HMW camp and pilot plant.

During 2022, Galan will be undertaking a definitive feasibility level study (DFS) with the appointment of an independent, well credentialed engineering firm imminent.

The company also expects the new HMW drilling to increase its indicated resources as well as a likely move into the measured and indicated mineral resource category.

 


 

 

This article was developed in collaboration with Galan Lithium 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 Galan’s HWM project value jumps 120pc after update on lithium prices appeared first on Stockhead.



Author: Special Report

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