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Resources Top 5: More uranium, an aborted pump, and another stock jumps on the lithium gravy train

Another alleged Telegram group pump, this time involving recently listed explorer Albion Resources Eastern Iron inks deal with $7.7 billion … Read More
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  • Another alleged Telegram group pump, this time involving recently listed explorer Albion Resources
  • Eastern Iron inks deal with $7.7 billion market cap Chinese firm Yahua to acquire and develop lithium projects
  • Energy Metals, A-Cap today’s beneficiaries of emerging uranium boom

 

ALBION RESOURCES (ASX:ALB)

Another alleged Telegram group pump, similar to last week’s TTA Holdings (ASX:TTA) effort.

While the pumpers used the same playbook, this time the ASX fun police jumped in before Albion could build up real momentum.

The recently listed ~$13m market cap explorer gained about 24% before being paused, just 4 minutes and 8 seconds into trading. It fell back once trading resumed.

Albion’s main projects include the ‘Lennard Shelf’ (zinc, lead) and ‘Leinster’ (nickel, copper, gold) projects, both in WA. Drilling Leinster will be announced soon, the company said in August.

 

EASTERN IRON (ASX:EFE)

Another small cap looking to jump on the lithium gravy train.

The iron ore explorer has inked a deal with $7.7 billion market cap Chinese firm Yahua to acquire and develop lithium projects around the world.

First cab off the rank could be the ‘Trigg Hill’ lithium tantalum project, ~70km from Pilbara Minerals’ (ASX:PLS) ‘Pilgangoora’ operation.

The old Trigg Hill lithium-tantalum mine operated during the 1960s and early 1980s. Pegmatite swarms cover ~5sqkm with surface spodumene and lepidolite reported, Eastern Iron says.

The ~$14m market cap stock is up 50% year-to-date.

 

HORIZON MINERALS (ASX:HRZ)

(Up on no news)

This cashed up explorer/near term miner has a few irons in the fire.

A recent toll milling trial at its 448,000oz ‘Boorara’ gold project is expected to de-risk larger scale mine development, with a maiden ore reserve expected in the current quarter.

Meanwhile, its ‘Penny’s Find’ JV with Orminex (ASX:ONX) should reach development decision early in the December quarter.

Then there’s the Julia Creek vanadium project in Queensland (25% ownership), which will advance to definitive feasibility study “on strong outlook”, the company said August 17.

“The Richmond-Julia Creek project is one of the largest undeveloped oxide vanadium resources in the world and can produce globally significant supply for both the steel and emerging energy storage markets,” Horizon managing director Jon Price says.

“Restricted supply and increased demand have resulted in a sustained increase in prices with the initial 25-year mine life at Lilyvale generating an NPV of A$613M at current spot prices.”

“We look forward to the completion of the DFS in 2022 and believe the project can have significant economic development benefits to regional Queensland and the national economy.”

 

ENERGY METALS (ASX:EME)

(Up on no news)

A beneficiary of the emerging uranium boom.

This $60m market cap enigma is a “dedicated uranium company” with eight mothballed exploration projects in the Northern Territory and WA.

Its main game is the ‘Bigrlyi’ uranium-vanadium project, where a prefeasibility study (PFS) was completed in 2011 before the uranium price hit the skids.

Work was suspended in 2012 and not much has been done since, despite a healthy bank balance of $15.7m at the end of the last quarter.

But here’s the kicker — the stock is tightly held, with only ~200m shares on issue. Most of this (66%) is held by a subsidiary of the state-owned China Nuclear Power Group (CGN), one of the largest nuclear power providers in the world.

CGN has five more power plants under construction and an additional two planned.

 

A-CAP ENERGY (ASX:ACB)

(Up on no news)

While explorer A-Cap is focussed on the ‘Wilconi’ nickel-cobalt project in WA, it also has sneaky exposure to the burgeoning uranium thematic.

The stock says the currently mothballed ‘Letlhakane’ project in Botswana contains one of the world’s largest undeveloped uranium deposits.

“The Company’s Letlhakane uranium project remains an important project asset within the diversified minerals strategy,” A-Cap said late July.

“While the nuclear industry is confident in the long-term fundamentals of uranium and nuclear power, there is less certainty in the short term with industry expectation that the market will gradually move towards balance from calendar year 2025.”

Looks like “balance” could happen sooner than expected.

The $70m market cap stock is up 157% year-to-date.


 

The post Resources Top 5: More uranium, an aborted pump, and another stock jumps on the lithium gravy train appeared first on Stockhead.

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BPM finds two walk-up drill targets at its Claw gold project

Special Report: BPM Minerals has won the historical data lottery after identifying two walk-up drill targets at its Claw Gold … Read More
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BPM Minerals has won the historical data lottery after identifying two walk-up drill targets at its Claw Gold Project in WA.

The company found the Lewi and Chickie anomalies by reviewing all the available open file data sets from exploration drilling completed by Reynolds Australia Metals more than 30 years ago.

The historical data included 138 air core and rotary air blast holes for a total of 3,882m targeting the same structure that hosts Capricorn Metals’ (ASX:CMM) Mount Gibson gold project.

“It is rare for a junior exploration company to acquire such highly prospective ground directly along-strike from a 2-million-ounce gold project,” BPM Minerals (ASX:BPM). CEO Chris Swallow said.

“Perhaps even rarer is to find walk-up RC drill targets from an initial data review.

“We have signed a contract for an aeromagnetic survey to be completed later this year.”

Chickie and Lewi anomalies

Key intercepts from the historic drilling at the Chickie anomaly include:

  • 11m at 0.1 parts per million gold (46-57m) including 1m at 0.54 parts per million gold (48-49m);
  • 1m at 0.24 parts per million gold (72-73m EoH); and
  • 10m at 0.17 parts per million gold (50-60m EoH).

At the Lewi anomaly, several anomalous values up to 90 parts per billion gold were reported within the weathering profile.

And the fresh rock – the potential primary source of mineralisation – was never tested below the regolith anomaly.

Plus, the Lewi anomaly is less than 1km from the Mount Gibson project.

Pic: The Claw gold project, with newly identified gold anomalies overlain prospective geology.

Rare exploration opportunity

The company is confident that the Claw project presents a rare exploration opportunity to cover the interpreted southern extension of the Mount Gibson shear zone.

Particularly since 80% of the tenement area regolith is covered and the project is largely unexplored.

The upcoming aeromagnetic survey is planned for Q4 once the Claw tenement has been granted in the coming weeks.

The company will then conduct an RC drilling program of around 3,000m, targeting primary gold mineralisation in the fresh rock.

 


 

 

This article was developed in collaboration with BPM 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 BPM finds two walk-up drill targets at its Claw gold project appeared first on Stockhead.

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Precious Metals

Metalstech encounters visible gold at Sturec drilling

 
The drill program on its fully owned Sturec gold project in Slovakia is now in full swing and although it is too early to expect assay results, Metalstech…

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The drill program on its fully owned Sturec gold project in Slovakia is now in full swing and although it is too early to expect assay results, Metalstech (MTC.AX) already provided a quick interim update after the drill bit intersected visible gold in hole 17. This hole is an infill drill hole meant to follow up on hole 14 where Metalstech encountered 10 meters of almost 17 g/t gold within a broader interval of 43 meters of 4.88 g/t gold and 11.8 g/t silver.

Hole 17 is an underground drill hole, drilled from Drill Chamber 2, and the hole is located close to the pit outline used in the 2021 mineral resource update As you can see on the image above, the location of hole 17 is important as it will basically be able to validate the findings in hole 10, 13, 14 and perhaps even hole 5 which ended at the bottom of the pit outline.

We will obviously have to wait for the official assay results from the lab which could be expected in a few weeks.


Disclosure: The author currently has no position in Metalstech. Metalstech is a sponsor of the website. Please read our disclaimer.

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Economics

How Evergrande the parent hurt Evergrande New Energy

One thing that has recently caught my eye has been the unravelling of China Evergrande Group – a conglomerate with over 100,000 employees spanning primarily…

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One thing that has recently caught my eye has been the unravelling of China Evergrande Group – a conglomerate with over 100,000 employees spanning primarily real estate development but also new energy, property services and health amongst other industries.

Keen market observers would be aware of the Chinese government’s recent crackdown on various industries. Most headlines have been focused around the tech giants and the for-profit education sector, but has also involved online gaming companies (gaming restrictions), the steel industry (push for decarbonisation) and most recently Macau casinos. It has also maintained its tightening bias toward the property sector, which has further dampened the prospects for rebar steel, and by extension iron ore.

Property cycles are nothing new in China, with development and prices waxing and waning based on policy and availability of credit and partially responsible for cyclical price movements in iron ore. The most recent slowdown however seems to have hit the highly indebted Evergrande extremely hard, as unravelling confidence in its ability to repay its lenders (split between onshore and offshore) has sparked a sell-off in both its bonds (now trading at 30 cents on the dollar) while the company’s equity value, which peaked at a market capitalisation of over US$50 billionn and was as high as US$47 billion in June last year is now just US$4.4 billion.

One of the more interesting subplots has been the fate of its New Energy Vehicle group, a listed subsidiary in which the China Evergrande parent owns 65 per cent. Early in the Evergrande Saga, the Group proposed selling a stake in its new energy vehicles (NEV) subsidiary as one way to reduce its debt load. In January 2021, the group sold a ~11 per cent stake in the subsidiary to six investors, valuing the business at ~US$34 billion. Amazingly, this transaction – along with the hype surrounding the potential EV market in China and the company showcasing 6 new cars – triggered a furious rally which saw the share price rise 140 per cent in under 3 weeks, while its market cap peaked at US$85 billion despite not selling a single car (shades of Nikola in the US, albeit the NEV subsidiary also holds Evergrande’s legacy assets in the healthcare space and was formerly known as Evergrande Health Industry Group).

China Evergrande New Energy Market capitalisation

Screen Shot 2021-09-17 at 2.48.49 pm

Source: Bloomberg

As concerns around its parent deepened, “investors” became concerned around the potential fate of its subsidiary with the Parent’s 6.35 billion NEV shares seen as a potential source of liquidity. This has seen a stunning collapse in Evergrande NEV’s market cap by ~US$80 billion since mid-April and has also caused liquidity issues in the NEV arm which just reported losses of more than US$742 million.

A good reminder to pay heed of any potential contagion and ripple effects, albeit most are hidden and only discovered after the fact (as well as the obvious lessons on the highs and lows of “investing” in pockets of extreme exuberance).

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