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Lundin Mining Reports Measured & Indicated Resource Of 10.5 Million Copper Tonnes

Lundin Mining Corporation (TSX: LUN) shared yesterday morning the results of its mineral resource and mineral reserve estimate for its
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This article was originally published by The Deep Dive

Lundin Mining Corporation (TSX: LUN) shared yesterday morning the results of its mineral resource and mineral reserve estimate for its attributable properties effective June 30, 2021. The report includes measured & indicated resources of 10.5 million copper tonnes.

The estimates are calculated based on the mining firm’s equity ownership of the properties. It holds 80% interest in the Candelaria mine while it owns 100% of the Chapada, Neves-Corvo, Semblana, and Zinkgruvan.

The report also includes measured & indicated resources of 6.9 million zinc tonnes, 2.0 million lead tonnes, 11.8 million gold ounces, 340 million silver ounces, and 83 thousand nickel tonnes.

On the other hand, proven & probable mineral reserve estimate comprises 5.3 million copper tonnes, 2.8 million zinc tonnes, 0.9 million lead tonnes, 6.6 million gold ounces, 138 million silver ounces, and 77 thousand nickel tonnes.

On August 19, BMO Capital Markets lowered their 12-month price target on the company to $14.50 from $16 and downgraded their recommendation to market ‘perform’ from ‘outperform’.

Lundin Mining last traded at $9.73 on the TSX.


Information for this briefing was found via Sedar and the companies mentioned. 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 Lundin Mining Reports Measured & Indicated Resource Of 10.5 Million Copper Tonnes appeared first on the deep dive.

Energy & Critical Metals

Millennial Lithium Bidding War Reads Well For Peers

On September 8, Millennial Lithium Corp. (TSXV: ML) announced that it received an unsolicited takeover bid from a foreign-based lithium
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On September 8, Millennial Lithium Corp. (TSXV: ML) announced that it received an unsolicited takeover bid from a foreign-based lithium battery production company. The bid is reportedly $0.25 per share superior to the $3.85 all-cash takeover bid it received and accepted in July from China-based Ganfeng Lithium Co., one of the largest lithium producers in the world. 

Bloomberg reported on September 14 that the mystery bidder was likely Contemporary Amperex Technology Co., Ltd. (CATL), another China battery giant. Millennial has given Ganfeng until September 27 to amend its bid to counter the mystery bidder’s proposal.

The Ganfeng bid for Millennial equates to $377 million in cash. Factoring in Millenium’s net cash position of about $52 million as of February 28, 2021, Millennial’s takeover enterprise value per the Ganfeng bid is about $325 million. Millennium’s principal asset is its flagship Pastos Grandes lithium brine project in Argentina. Lithium, the lightest of all metals, is used extensively in the batteries of electric vehicles.

Millennial’s Pastos facility should begin production in 2024. Its projected battery and technical grade lithium carbonate output is 24,000 tonnes per year (tpy). Ganfeng’s willingness to pay $325 million – and another party at least $25 million more than that — for a project which is not scheduled to commence production for three years is noteworthy.

The bidding war between two very well-capitalized lithium battery producers is clearly a positive for Millennial shareholders. In addition, there are two key read-throughs for other stocks.

Millennial’s Pastos Grandes Projected Timeline

More specifically, the purchase price highlights the value of another South American-based lithium producer, Sigma Lithium Corporation (TSXV: SGMA). In June 2021, Sigma broke ground on its Grota do Cirilo hard rock lithium project in Brazil. It is scheduled to begin lithium carbonate production in 4Q 2022.

Its projected Phase 1 output, 33,000 tonnes of lithium carbonate equivalent, is 40% larger than Millennial’s target capacity. Phase 2 production could begin in 2023. Sigma’s enterprise value is nearly $650 million, or about twice Millennial’s likely takeout value. Given Sigma’s two-year time advantage to market, that differential may be too small.

Projected Timeline of Sigma’s Grota do Cirilo Phase 1 Project

Secondly, Ganfeng owns 51% and Lithium Americas Corp. (TSX: LAC) 49% of the Cauchari-Olaroz lithium brine project in Argentina. Cauchari-Olaloz, which has projected stage one output of 40,000 tpy of battery- quality lithium carbonate, is expected to commence production in mid-2022. If the facility operates well, it is certainly possible that Ganfeng (stock market capitalization of around US$38 billion) at some point could decide to buy Lithium Americas’ stake or Lithium Americas itself.

Sigma and Lithium Americas Have Solid Balance Sheets

Both Sigma and Lithium Americas are well capitalized. As of June 30, 2021, the companies have net cash positions of $40 million and $446 million, respectively. Sigma’s enterprise value is $849 million, and Lithium Americas’ is $3.18 billion.

(in thousands of Canadian $, except for shares outstanding)Sigma Lithium CorporationLithium Americas Corp.
Cash – as of 6/30/21$40,577$641,250
Debt – as of 6/30/21$531$195,112
Net Cash$40,046$446,138
Market Capitalization$889,410$3,630,000
Enterprise Value$849, 364$3,183,862

Lithium is a key element in most electric vehicle batteries. If electric vehicle demand were to reverse the trends of the past few years and start to slow, all lithium miners would likely be negatively affected. Also, if engineers at some point can develop a cheaper, more effective option than lithium, lithium producers would likewise be impacted.

A bidding war for Millennial at a rich price for a junior miner which is unlikely to produce lithium carbonate for three years, is a positive for more advanced lithium development companies like Sigma Lithium and Lithium Americas. Equally important, Sigma and Lithium Americas seem to be attractively valued relative to the ultimate takeover price for Millennial Lithium.

Millennial Lithium Corp. last traded at $4.09 on the TSX Venture.


Information for this briefing was found via Sedar and the companies mentioned. 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 Millennial Lithium Bidding War Reads Well For Peers appeared first on the deep dive.

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Altiplano Metals Obtains Exploitation Permit at Maria Luisa

Altiplano Metals Inc. (TSXV:APN) is proud to announce that the mining application has been approved by the Chilean Mining Authority (Servicio Nacional…

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Altiplano Metals Inc. (TSXV:APN) is proud to announce that the mining application has been approved by the Chilean Mining Authority (Servicio Nacional de Geologia y Mineria) for the historic Maria Luisa Gold-Copper Mine . The permit gives Altiplano permission to commence underground exploration and development of the mine. 

The project, known as the “Maria Luisa Mine,” is located in the Atacama region, about 100 km south of La Serena, Incahuasi, Chile. Altiplano (TSXV:APN)plans to establish an underground waste system designed to reach mineralized veins through multiple access points at various levels with this permit.

Figure 1: Plan Map of Maria Luisa

Design and Development

The design process involves access to the northwest and southeast mineralized Au and Cu veins by intersecting four separate levels designed to create 8 mining areas (Figure 2). The initial decay system will penetrate into the southwest corner of the property and advance 350 meters southeast to intersect mineralized zones within historical mining areas. 

The development work will be led by surface and underground drilling programs to support future grade control. The Company intends to mine approximately 3,000 tonnes of mineralized gold and copper material at this stage, with future opportunities to expand to 5,000 tonnes.

Construction is expected to take approximately 6 months and Phase 1 funding is estimated at approximately $600,000. During the construction and development phases, the company will have the opportunity to extract mineralized bulk samples from Au and Cu, which will be sold to a nearby processing plant to offset the development costs before full capital improvements. The Company is in the process of completing the review process to select a contracted miner to build and/or develop the project. The review process is expected to be completed in the next few weeks and work will begin.

Figure 2: Underground Mine Model. Source: Altiplano Metals

Altiplano (TSXV:APN) is a Canadian mining company focusing on the acquisition and development of short-term cash flow assets and exploration projects of considerable size. The aim of Companys is to grow into a medium-sized producer of copper, gold and silver, with an immediate plan to generate profits from three cash flow projects by 2021.

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

The post Altiplano Metals Obtains Exploitation Permit at Maria Luisa appeared first on MiningFeeds.

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Precious Metals

Condor targets satellite gold deposit at La India

  VANCOUVER – Condor Gold Plc [COG-TSX, CNR-AIM] on Friday said it has completed drilling and returned all assays from exploration work at the Cacao…

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VANCOUVER – Condor Gold Plc [COG-TSX, CNR-AIM] on Friday said it has completed drilling and returned all assays from exploration work at the Cacao prospect at its 100% owned La India project in Nicaragua.

Condor controls around 98% of the La India Mining District, which covers 588 square kilometres. In order to advance La India, the company has adopted a dual strategy to add value by advancing the project toward production alongside continuing exploration with the aim of defining 5.0 million ounces of gold.

A preliminary economic assessment has indicated that an open pit and underground operation at La India could produce an average of 150,000 ounces of gold over an initial nine-year lifespan. The initial capital requirement is forecast at US$160 million (including contingency), where underground development is funded through cash flow.

Back in January, 2019, SRK Consulting (U.K.) Ltd. completed an updated mineral resource estimate for Condor’s La India project. It calculated 9.85 million tonnes at 3.6 g/t gold or 1.14 million ounces of gold in the indicated category and 8.48 million tonnes at 4.3 g/t gold or 1.17 million ounces of gold in the inferred category. That includes a probable mineral reserve of 6.9 million tonnes at 3.01 g/t gold for 675,000 ounces of gold.

However, Condor has estimated that it can increase resources by drilling a number of targets, including the Cacao prospect, which contain small amounts of gold resource, and could offer additional satellite feed for a nearby processing facility. On Friday, the company said 15 drill holes (3,500 metres) have been completed to test the geological concept that the near-surface gold mineralization at Cacao is the top of a fully-preserved epithermal gold system.

The company said it is also aiming to determine that the gold mineralizing system extends, buried below surface, beyond the 450-metre-long outcrop where all the drilling has been concentrated so far.

Condor CEO Mark Child said the drill program has been a success. “A 10-metre-plus true width mineralized zone, including the main Cacao vein has been confirmed for a strike length of approximately 1,000 metres beneath and extending to the east of the current Cacao mineral resource of 662,000 tonnes at 2.9 g/t gold for 60,000 ounces of gold,’’ Chile said.

Drilling highlights include hole CCDC033, which intercepted 14.9 metres true width at 3.94 g/t gold beneath the existing mineral resource, and 700 metres along strike of the intercept, drill hole CCDC028 intercepted 32.9 metres true width at 0.38 g/t gold.

The Cacao prospect has been identified as a potential satellite deposit for processing at the company’s fully permitted processing plant to be located 4.0 kilometres away. Mineral resource modelling indicates that Cacao could support a small open pit.

Meanwhile, current drilling is focused towards identifying deeper level mineralization that could support a larger pit or underground mining.

On Friday, Condor shares were unchanged at 73 cents and trade in a 52-week range of $1.20 and 65 cents.

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