Connect with us

Base Metals

Avrupa Minerals Reports First Drilling Results at Sesmarias

Source: The Critical Investor for Streetwise Reports   02/28/2021

The Critical Investor takes an in-depth look at Avrupa’s new drilling results at the Alvalade copper-zinc project in Portugal.After Avrupa Minerals Ltd. (AVU:TSX.V; AVPMF:OTC;…

Published

on

This article was originally published by Streetwise Reports

Source: The Critical Investor for Streetwise Reports   02/28/2021

The Critical Investor takes an in-depth look at Avrupa’s new drilling results at the Alvalade copper-zinc project in Portugal.

After Avrupa Minerals Ltd. (AVU:TSX.V; AVPMF:OTC; 8AM:FSE) commenced drilling last December at its Sesmarias target at the flagship copper-zinc Alvalade project in Portugal, which is operated together with JV partner MATSA (joined company of Trafigura and Mubadala, two commodity giants), the company completed two drill holes so far for 874m of drilling, part of the 7-8,000m program. Hole SES20-031 and Hole SES20-032 were designed to test the area between the massive sulfide intercepted in hole SES008 and the stockwork zone intercepted in hole SES028, also at depth:


Plan view map Sesmarias, gravity geophysical data

The results didn’t look so spectacular, as hole SES20-031 returned 10.75m @ 0.19% copper and 0.74% lead, and SES20-032 didn’t hit any massive mineralization, though samples from the target horizon have been sent to the lab for trace element, pathfinder geochemistry. My expectations were higher than this, as SES008 returned 5.0m @ 0.64% Cu, 36.8 g/t Ag, 0.94% Pb and 1.54% Zn, and SES028 intercepted the edge of a significant feeder zone beneath the 8 Lens. Management remains highly positive, as CEO Paul Kuhn acknowledges the complexity of the mineralized systems at Alvalade:

“We are excited about the immediate possibilities in the Sesmarias target area. Positive geochemical and geological results from SES20-031 indicate potential for a continuing strong VMS system. We are still in the early stages of work at the north end of the presently-known Sesmarias system. Already, with the completion of two drill holes, and the start of a third hole, we have a much-improved understanding of the structural controls to the massive sulfide mineralization. This allows us to better target the massive sulfide bodies, as we move north along strike, and at some depth targeting downdip mineralization. The geological team has done a great job in pushing the Project ahead.”

The present work is the initial attempt to expand the mineralization to the north from SES008 to the Brejo target area (formerly Northern Deep target), and the third hole, currently underway, is located north of and close to SES008. The next target is the Brejo target area itself, representing the strong gravity anomaly indicated at the upper half of the figure. Management plans to test this target in the near future.

Drill testing this target will involve deep drilling, as wide-spaced, 500-600m deep historical drilling suggests strong possibility of massive sulfide mineralization increasing at depth:

This section also indicates a sub-vertical orientation of potential mineralization. A more detailed section of intercepted geology by hole SES20-031 seems to indicate a more vertical orientation of mineralization as well, and is the explanation why not much mineralization was intersected:

“SES20-031 continued to 536 meters depth, in several places intersecting the specific black shale unit that hosts massive sulfide mineralization at Sesmarias and at the Lousal Mine, located six kilometers to the north. Detailed review of the core showed that for its entire length, the drill hole passed through intensely folded rock units of the Volcano-Sedimentary Formation, the general host of mineralization throughout the Iberian Pyrite Belt. Overall, however, the drillhole roughly paralleled the major trend of bedding, allowing only for narrow true widths of mineralized intercepts.”

The beautifully visualized section showed the trajectory of the drill, but I still wondered how the drilling company could draw conclusions about the heavily folded, vertically oriented structures, as these were basically missed. According to Kuhn: “When we detail log the core material, we can easily see the angle of the bedding relative to the axis of the core. Since we orient the core as it comes out of the hole, we can tell the geological angle of the beds. We are able to see detailed changes in the bedding and can easily interpret small to large folds. Faults are easy to see in the core material. With this work we can paint a complicated picture of the geology. Even folding in short intervals of core can mimic the larger-scale folding in the beds of target horizons. Previously, we understood that the target zones were strongly folded and faulted, but the detail of recent review by the JV geological team has advanced the story further, which is heavily influencing our targeting and expectations.”

It was interesting to read that the drill hole intercepted the black shale rocks that host massive sulfide mineralization not only at Sesmarias, but also at the nearby Lousal Mine. I wondered what percentage of the Lousal Mine mineralization is hosted in black shale rocks.

Kuhn thinks, based on historical analysis, that this is almost universal, indicating they might have found extensions of the Lousal deposit. The third hole currently underway, SES20-033 is testing exactly the black shale trajectory, at about 350-400 meters depth, but also on the other side of the major fold, in the neighborhood of 650-800 meters depth.

Besides this more or less greenfields drilling, much of interest to me is the following paragraph in the news release:

“At the same time, the geological team continues to assess the historical core in the Brejo area, and has started to map geological structures visible in the old Lousal Mine workings. Initial work there clearly shows similarity of ore control characteristics to what we now know about the Sesmarias massive sulfide mineralization. Historical documents and academic studies (non- compliant to NI 43-101 standards) indicate a universal metal resource at the old mine of over 50 million tonnes of massive sulfide material. Review of original mine records by Avrupa demonstrates that less than 20 million tonnes of ore were actually extracted from Lousal.”

Afbeelding met water, lucht, buiten, natuur

Automatisch gegenereerde beschrijving

As has been known for years, there could still be 30Mt of massive sulfide mineralization present at the Lousal Mine. This resembles low hanging fruit to me, as I indicated in earlier analysis, and I’m curious if management is for example contemplating digitizing historical data and results of ongoing mapping, in order to develop a drilling strategy to prove up these potential 30Mt. I’m also wondering where Lousal stands on the priority list of MATSA, as it seems relatively low risk. CEO Kuhn answered: “Work at and around the Lousal Mine is a high priority, after Sesmarias/Brejo and the stockwork discovery at Monte da Bela Vista, just north of the Lousal Mine. At the moment we are running at full speed at Semarias/Brejo, but plan to work at Lousal compilation in the coming months.”

As Kuhn indicated in December 2021 that a helicopter-supported VTEM electromagnetic survey was about to commence that month, covering a large part of the Alvalade License, I am curious about when the results will be announced. According to him, results are expected during the first half of March.

In the meantime, the metals Avrupa is focusing on, copper and zinc, have been going through the roof, especially copper. After rising to US$4.34/lb Cu, levels not seen in nine years, there has been heavy selling on February 26, 2021, bringing the price down to US$4.09/lb Cu for now as can be seen in this chart by Macrotrends:

Analysts see this selling as an overdue and healthy stage of consolidation at best, or a correction at worst, according to this article at Mining.com. The big question for now is the reaction of big Chinese players, holding massive long positions in copper contracts. As lots of copper is projected to be arriving from Chile and Peru, it is expected that the extreme pressure on the copper price caused by heavy shortages, in turn caused by strikes and COVID-19, will ease somewhat. On the other hand, when COVID-19 measures will gradually subside on the back of vaccination, the world economy will gather speed again, and if this happens viciously as many analysts expect, also helped by the US$1.9T stimulus program from Biden, copper could remain around the US$4/lb levels for quite some time.

Avrupa’s second most important metal, zinc, has also been doing well lately, as can be seen here in this chart of Kitco:

As a reminder, according to the International Lead and Zinc Study Group (ILZSG), a platform formed by the United Nations, consisting of all major producing countries and industry players in the lead and zinc sector, several mines could experience problems to nameplate capacity again, but global supply for refined zinc metal will exceed demand significantly in 2021, as this surplus is expected to be 463kt. Notwithstanding this, with the world economy picking up, I expect zinc to remain above US$1.15-1.20/lb levels for the foreseeable future. Zinc currently sits at US1.27/lb Zn.

Such metal prices should be all the incentive JV partner MATSA needs in my view, to sink a lot of exploration dollars (or euros in this case) into Alvalade. After the 4 to 1 consolidation of Avrupa shares, the company is looking to do a financing soon, as several funds already expressed their interest. Avrupa is still trading at rock-bottom prices (market cap of just C$3.76M), despite copper prices going into the stratosphere:


Share price Avrupa Minerals; 5 year time frame (Source: tmxmoney.com)

When Avrupa starts hitting serious mineralization, these price levels should be something from the past soon in my view.

Conclusion

The first drill holes didn’t bring in fireworks yet, but as the geology is quite complex and not easy to unravel, CEO Paul Kuhn is working diligently together with JV Partner MATSA to unravel the Sesmarias puzzle. The soon to be announced results of the airborne VTEM survey will hopefully and likely bring in lots of targets, as can be expected with several historical mines and remaining historical resources being present. Besides all other targets, in my view, the remaining historical resources sitting in the ground at the Lousal Mine provide a unique opportunity to relatively easily prove up many tons of mineralization, and drilling on this location is planned for later in 2021. When good intercepts start rolling in there, this tiny junior could very well become a multi-bagger in a short period of time.

Afbeelding met boom, buiten, groen, plant

Automatisch gegenereerde beschrijving

I hope you will find this article interesting and useful, and will have further interest in my upcoming articles on mining. To never miss a thing, please subscribe to my free newsletter on my website www.criticalinvestor.eu, 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.

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Disclaimer: The author is not a registered investment advisor, and currently has a long position in this stock. Avrupa Minerals is a sponsoring company. All facts are to be checked by the reader. For more information go to www.avrupaminerals.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.

Streetwise Reports Disclosure:
1) The Critical Investor’s disclosures are listed above.
2) The following companies mentioned in the article are sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Avrupa Minerals, a company mentioned in this article.

Charts and graphics provided by the author.

( Companies Mentioned: AVU:TSX.V; AVPMF:OTC; 8AM:FSE,
)





Author: Author

Articles

St-Georges Announces the Closing of the $5.57M Offering

Montréal – November 30, 2021 – St-Georges Eco-Mining Corp. (CSE:SX) (OTC:SXOOF) (FSE:85G1) (CNSX:SX.CN) is pleased to announce the closing of its…

Montréal – November 30, 2021 St-Georges Eco-Mining Corp. (CSE:SX) (OTC:SXOOF) (FSE:85G1) (CNSX:SX.CN) is pleased to announce the closing of its previously announced non-brokered private placement offering of 10,127,273 “flow-through” units at a price of $0.55 for total gross proceeds of $5,570,000.15. A total of 11 subscribers participated, including 4 insiders for $305,000 and 3 institutional investors in Sprott Assets, Maple Leaf and Marquest for $3,725,000 or 66.8%.

Each FT Unit is comprised of one (1) common share in the capital of the Company on a “flow-through” basis (each, a “FT Share”) and one half (0.5) FT Share purchase warrant (each, a “FT Warrant”). Each full FT Warrant entitles the holder thereof to purchase one (1) Share at an exercise price of $0.65 for a period of 24 months (the “Warrant Expiry Date”).

In the event that, during the period of 4 months following the closing date of the Offering, the trading price of the Shares on the Canadian Securities Exchange (the “CSE”) reaches $1.25 per Share on any single day, the Corporation may, at its option, accelerate the Warrant Expiry Date by delivery of notice to the registered holders (an “Acceleration Notice”) thereof and issuing a press release (a “Warrant Acceleration Press Release”, and, in such case, the Warrant Expiry Date shall be deemed to be 5:00 p.m. (Montreal time) on the 30th day following the later of (i) the date on which the Acceleration Notice is sent to warrant holders, and (ii) the date of issuance of the Warrant Acceleration Press Release.

The Corporation will use the proceeds of the Offering to further advance the exploration effort on its wholly owned Manicouagan Project following important recent developments.

The Corporation paid finder fees of $302,700.01 in cash and issued: (i) 557,273 non-transferable Finder’s warrants entitling the holder thereof to purchase at an exercise price of $0.65.

All securities issued pursuant to this Offering are subject to the applicable statutory hold period ending March 31, 2022. The Offering is subject to the approval of the CSE.

Related Party Transaction

Certain insiders of the Corporation subscribed for a total of 554,545 FT Units under the Offering, which is a “related party transaction” within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The issuances to the insiders are exempt from the valuation requirement of MI 61-101 by virtue of the exemption contained in section 5.5(b) as the Corporation’s shares are not listed on a specified market and from the minority shareholder approval requirements of MI 61-101 by virtue of the exemption contained in section 5.7(a) of MI 61-101 in that the fair market value of the consideration of the securities issued to the related parties did not exceed 25% of the Corporation’s market capitalization.  The Corporation did not file a material change report more than 21 days before the expected closing of the Offering as the details of the Offering and the participation therein by related parties of the Corporation were not settled until shortly prior to closing and the Corporation wished to close on an expedited basis for sound business reasons.

ON BEHALF OF THE BOARD OF DIRECTORS

“Neha E. Tally”

NEHA EDAH TALLY
Corporate Secretary

About St-Georges Eco-Mining Corp.

St-Georges develops new technologies to solve some of the most common environmental problems in the mining sector, including maximizing metal recovery and full circle EV battery recycling. The Company explores for nickel & PGEs on the Julie Nickel Project and the Manicougan Palladium Project on Quebec’s North Shore and has multiple exploration projects in Iceland, including the Thor Gold Project. Headquartered in Montreal, St-Georges’ stock is listed on the CSE under the symbol SX and trades on the Frankfurt Stock Exchange under the symbol 85G1 and on the OTCQB Venture Market for early stage and developing U.S. and international companies. Companies are current in their reporting and undergo an annual verification and management certification process. Investors can find Real-Time quotes and market information for the company on www.otcmarkets.com.

The Canadian Securities Exchange (CSE) has not reviewed and does not accept responsibility for the adequacy or the accuracy of the contents of this release.







Author: MikeyMike426

Continue Reading

Articles

These 18 ASX resources IPOs are due to list in December. EIGHTEEN.

It’s like an advent calendar for mining and exploration IPOs, except instead of factory floor chocolate you get gold. GOLD. … Read More
The post These…

It’s like an advent calendar for mining and exploration IPOs.

Sometimes two.

Please note that these listing dates are extremely speculative. If you’re interested, contact the company direct for a better idea of when they expect to start trading on the ASX.

COSMOS EXPLORATION (C1X)

Focus: Gold, Copper and Nickel

Tentative Listing Date: 1 Dec

The RareX (ASX:REE) spinoff wants to raise $5m through its IPO. It has two projects: ‘Byro East’ (nickel-copper-PGEs) in WA and ‘Orange East’ (gold) in NSW.

Byro East was pegged by $45m market cap rare earths explorer RareX last year. It is very greenfields — having never been drilled — but Cosmos has identified four areas which could be prospective for Ni-Cu-PGEs.

Based on past exploration work, Cosmos has also identified several gold-copper targets at the small 40sqkm ‘Orange East’ project.

 

ORANGE MINERALS (ASX:OMX)

Focus: Gold, Copper

Tentative Listing: 3 Dec

Orange, which is looking to raise $7m in an IPO, is hunting for copper-gold in two major regions: Lachlan Fold Belt (NSW) and Eastern Goldfields (WA).

The NSW assets are close to major gold mines like Cadia (43.4Moz). In WA, it has ground within 25km of Lefroy’s (ASX:LEX) ‘Burns’ copper gold discovery (38m @ 7.63g/t gold, 0.56% copper).

A minimum 1,500m of drilling is planned following listing, with maiden resource at ‘Calarie’ gold project in NSW forecast for early 2022.

 

8AU (ASX:8AU)

Focus: Gold, Nickel, Copper, PGEs

Tentative Listing Date: 3 Dec

The FirstAU (ASX:FAU) spinoff wants to raise between $8m and $12m through its IPO. It has lodged its prospectus with ASIC and is seeking to listing on the ASX around 3 December.

It has five projects in WA. Its flagship is ‘Talga’ project in the East Pilbara, a leading exploration location with new discoveries made nearby by Calidus Resources (ASX:CAI) at its ‘Warrawoona’ project and De Grey Mining (ASX:DEG) at Hemi.

The potential targeting of ‘Hemi-like’ intrusions within the East Pilbara projects present an exploration opportunity for 8AU “as both the exploration areas of the Talga JV and Railway Well project are located in a comparable geological environment”, it says.

 

LARVOTTO RESOURCES (ASX:LRV)

Focus: Gold, Copper, Cobalt, Nickel, PGEs

Tentative Listing Date: 6 Dec

Larvotto is looking to raise up to $6m in an IPO. It has three main projects: ‘Mt Isa’ (copper-gold-cobalt in Queensland), ‘Eyre’ (nickel-gold-PGEs in WA) and ‘Ohakuri’ (gold in NZ).

Mt Isa — acquired from Minotaur Exploration and Rio Tinto — is in a well-endowed, world-class copper and gold region.

Nearby deposits include the Mount Isa Mines Operation (MIM), Ernest Henry, E1, Swan-Mt Elliott, Starra, Osborne, Little Eva, Eloise, Jericho, Barbara, and Kulthor.

Larvotto says the project, although adjacent to the famous MIM operation, has been underexplored using modern exploration techniques.

 

AMERICAN WEST METALS (ASX:AW1)

Focus: Zinc, Copper, Indium

Tentative Listing Date: 7 Dec

John Prineas-chaired American West wants to raise $11m through its IPO. It has three advanced, high grade base metal projects in Utah focused on copper and zinc; two of which already have significant resource estimates.

The ‘West Desert’ project already hosts a 59Mt historical zinc-copper resource defined under Canadian NI-43-101 standards.

Following admission to the ASX, American West will undertake work to establish a JORC compliant resource – a must-have for ASX listed companies — and will further assess development potential with scoping studies.

The company will also continue exploration across the large and underexplored project area “where high-grade intersections of copper and zinc have already been encountered outside the resource envelope, indicating strong potential for further discoveries”.

 

RUBIX RESOURCES (ASX:RB6)

Focus: Copper, Nickel, PGEs, Zinc, Gold

Tentative Listing: 8 Dec

Rubix is looking to raise $4.5m in an IPO.

Its key asset is ‘Paperbark’, 25km from the ‘Century’ mine held by New Century Resources (ASX:NCZ) in North Queensland.

Supporting the Paperbark Project are three greenfields (unexplored) projects: ‘Etheridge’ (gold in Queensland) ‘Lake Johnston’ (nickel, copper, PGEs in WA) and ‘Collurabbie North’ (nickel, copper, PGEs in WA).

 

PANTHER METALS (ASX:PNT)

Focus: Gold, Nickel

Tentative Listing: 10 Dec

WA-based PNT, a subsidiary of London-listed Panther Metals PLC, raised $5m in an IPO.

Initial drilling will take place at the Coglia nickel-cobalt project, where a JORC compliant exploration target of 30-50 million tonnes at 0.6-0.8% nickel and 400-600 parts per million cobalt has already been defined.

The Merolia gold project is also high on Panther’s agenda, with immediate drilling also planned at the ‘40 Mile Camp’ 2.5km by 5km gold anomaly.

 

RONIN RESOURCES (ASX:RON)

Focus: Gold, Copper, Coal

Tentative Listing: 10 Dec

Colombia-focussed Ronin is looking to raise $5m in an IPO.

The company’s main game is ‘Vetas’: a large, high-grade, thermal coal project containing a JORC Compliant Exploration Target.

The Santa Rosa Project is an earlier stage gold and copper project “located in a prolific artisan mining district”.

 

HARANGA RESOURCES (ASX:HAR)

Focus: Gold, Uranium, Lithium

Tentative Listing Date: 13 Dec

The African gold, lithium and uranium explorer wants to raise up to $6.5m in an IPO.

‘Saraya’ in Senegal is an advanced-stage uranium-lithium-tin project explored by French Government-owned Areva prior to 2010. That work included an estimated 48,000m drilling.

The project is mainly hosted by granites and pegmatite units which is also prospective for lithium, tin, tantalum and niobium, with spodumene (lithium minerals) having been visually reported.

The ‘Issia’ gold project in Cote d’Ivoire is proverbial stone’s throw from Tietto Minerals’ (ASX:TIE) 3.02Moz ‘Abujar’ project, which should produce its first gold bar in the fourth quarter of 2022.

 

INFINTY MINING (ASX:IMI)

Focus: Gold, Lithium, Nickel

Tentative Listing Date: 14 Dec

WA-based Infinity is a Macarthur Minerals (ASX:MIO) spinoff looking to raise between $7m and $10m in its IPO. The offer has now closed.

It will have 19 tenements covering 711sqkm in the Pilbara and Central Goldfields.

 

ARMADA METALS (ASX:AMM)

Focus: Nickel, Copper, PGEs

Tentative Listing Date: 15 Dec

Armada wants to raise between $8m and $10m through its IPO.

It has 2,991sqkm of ground in the Nyanga Province, Gabon which includes several drill-ready nickel-copper targets like ‘Libonga North’, ‘Libonga South’ and ‘Matchiti Central’.

With over U$10m spent on exploration to date, Armada plans to hit these targets hard with drilling over the next two years.

 

CHEMX MATERIALS (ASX:CMX)

Focus: High Purity Alumina, Kaolin, Manganese

Tentative Listing Date: 20 Dec

ChemX — more advanced materials technology company than aspiring miner– wants to raise $7m through its IPO.

It says it has developed a proven process to produce High Purity Alumina (HPA), a critical input for battery technology.

ChemX plans to develop this ‘HiPurA’ HPA tech, as well as the ‘Kimba’ kaolin-halloysite and ‘Jamison Tank’ manganese projects in South Australia where exploration drilling is scheduled to kick off in Q1 2022.

 

DMC MINING (ASX:DMM)

Focus: Nickel, Gold

Tentative Listing Date: 22 Dec

WA-based nickel explorer DMC wants to raise $5m through its IPO.  It has two projects: ‘Ravensthorpe’ and ‘Fraser Range’.

Ravensthorpe is a nickel and gold project next door to First Quantum Minerals’ (FQM) open-pit nickel mine and the RAV8 sulphide nickel mine. There has been limited historical exploration within the project, DMC says.

The 873sqkm of Fraser Range tenements makes DMC one of the largest junior landholders in the region, which is best known for its company-making Nova nickel discovery.

 

FALCON MINERALS (ASX:FAL)

Focus: Gold

Tentative Listing Date: 22 Dec

This hotly anticipated Chalice Mining (ASX:CHN) spinoff will be chaired by Mark Bennett, discoverer of the aforementioned Nova nickel discovery.

Falcon wants to raise between $15m and $30m through its IPO to tackle three projects: Pyramid Hill (VIC), Viking (WA), and Mount Jackson (WA).

Pyramid Hill — CHN’s No 1 focus before it hit the motherlode at Julimar – is highly prospective for high-grade gold deposits like the nearby, world-class Fosterville mine.

Since 2018, CHN has completed ~124km of drilling across the ~5,000sqkm project, defining four large scale prospects.

They include ‘Karri’, which is defined by shallow gold hits up to 34g/t over ~4km of strike, and ‘Banksia’, a giant 10km-long anomaly which returned hits up to 8.7g/t.

 

ARBARTA RESOURCES (ASX:AB1)

Focus: Gold and Base Metals

Tentative Listing Date: 23 Dec

Arbarta wants to raise between $5m and $7m through its IPO. It has three exploration projects in WA – ‘East Laverton’, ‘England’ and ‘Edward’.

East Laverton sits on~ 1200sqkm of its namesake underexplored East Laverton Greenstone Belt.

Greenstone belts host economic deposits of many minerals — including silver, copper, and zinc — but they are best known for gold.

Edward is also in an area of underexplored greenstone belt on trend to the south of the ‘Marvel Loch’ and ‘Transvaal’ deposits, and ~40km from the Marvel Loch processing facility.

England is next door to the Granny Smith processing facility in Laverton owned by miner Gold Fields. This means any discovery could be developed quickly, it says.

 

SOLIS MINERALS (ASX:SLM)

Focus: Copper

Tentative Listing: 24 Dec

The South American copper play is looking to raise $6m in an IPO.

It is already listed on the TSX, so this IPO is designed to “significantly enhance its exposure to investors in the ASX market, which has a dynamic and deep junior resources exploration sector”.

Solis has three large-scale copper exploration projects in Chile and Peru.

The recently acquired ‘Mostazal’ project in Chile has a multi-kilometre porphyry target to be drill-tested this year, underneath a high-grade copper-silver historical resource.

Solis also owns the ‘Ilo Este’ and ‘Ilo Norte’ projects in Peru’s southern coastal copper belt, prospective for porphyry and IOCG discoveries.
 

VERTEX MINERALS (ASX:VTX)

Focus: Gold

Tentative Listing: 24 Dec

This gold explorer is looking to raise $5.5m in an IPO. It has four projects: ‘Hill End’ (NSW), ‘Hargraves’ (NSW), ‘Pride of Elvire’ (WA), and ‘Taylors Rock’ (WA).

Hill End is in the region where the Beyers and Holtermann nugget — the largest single piece of reef gold ever discovered — was found. This is the nugg itself:

Feast ur eyes.

 

ANDEAN MINING (ASX:ADM)

Focus: Copper, Gold

Listing: Just before Xmas

Andean (expected code: ADM) seeks to raise up to $7m through its initial public offering that is due to close on 9 December.

Its relatively advanced ‘El Dovio’ copper-gold (with silver and zinc) project in Colombia is a volcanogenic massive sulphide system –deposits that are rich in base and precious metals like copper, zinc, lead, gold, and silver.

Because these deposits tend to ‘cluster’ together, VMS camps – like  DeGrussa on Western Australia — can often be mined for a very, very long time.

Nearby VMS projects include producing ‘El Roble’ mine, which has mined ore plus reserves totalling 3.89Mt grading 2.77% copper and 2.44 grams per tonne (g/t) gold, and ‘El Alacran’ (4.8Mt at 1.4% copper and 0.83g/t gold).

El Dovio is also close to other significant mining projects such as AngloGold Ashanti’s 28 million oz gold equivalent (AuEq) ‘Quebradona’ project and Zijin Mining’s 12Moz ‘Buritica’ gold mine. Great neighbourhood.

The post These 18 ASX resources IPOs are due to list in December. EIGHTEEN. appeared first on Stockhead.
















Author: Reuben Adams

Continue Reading

Energy & Critical Metals

M&A: Capstone Set to Merge With Mantos Copper

Capstone Mining Corp. [CS-TSX] said Tuesday it has agreed to merge with Mantos Copper, a…

Capstone Mining Corp. [CS-TSX] said Tuesday it has agreed to merge with Mantos Copper, a Chilean-focused company that is run by British investment firm Audley Capital Advisors and Orion Mine Finance.

Upon completion of the transaction, Mantos will be renamed Capstone Copper Corp and will remain headquartered in Vancouver. It will also apply to have its shares listed on the Toronto Stock Exchange.

The transaction will establish Capstone Copper as a premier copper producer with a diversified portfolio of high-quality, long life operating assets focused on the Americas with an extensive pipeline of near-term organic growth opportunities.

It will feature a 2021 copper production base of 175,000 tonnes of copper from four mines and 4.9 million tonnes of copper reserves.

On November 29, 2021, Capstone shares closed at $6.15 and currently trade in a 52-week range of $6.64 and $1.80.

Capstone is a Canadian base metals mining company with a focus on copper. Its portfolio includes the Pinto Valley copper mine in Arizona, and the Cozamin copper-silver mine in Zacatecas, Mexico. In addition, Capstone holds a 70% interest in Santo Domingo, a large scale, fully-permitted, copper-iron-gold project in Region 111, Chile, in partnership with Korea Resources Corp.

Earlier this year, the company closed a US$150 million streaming agreement with Wheaton Precious Metals Corp. (WPM-TSX, WPM-NYSE) covering 50% of the silver production at Capstone’s Cozamin mine.

Capstone described the deal as transformational, giving it one of the lowest debt positions amongst base metal producers at a time when he is expecting significant copper production and cash flow growth.

In 2021, Capstone has said it expects to produce between 175 and 190 million pounds of copper at a cash cost of between US$1.75 and US$1.90 per pound.

The company is currently advancing two operational growth projects (at Cozamin and Pinto Valley) in a bid to sustain 200 million pounds of copper production, starting in 2022.

Under the deal announced Tuesday, each Capstone shareholder will received one newly issued Capstone Copper share for each Capstone share held. Existing Mantos shareholders will continue to hold Capstone Copper shares.

Once the transaction is complete, former Capstone and Mantos shareholders will collectively own 60.75% and 39.5% of Capstone Copper respectively.

John MacKenzie, Executive Chairman and founder of Mantos, will become CEO of Capstone Copper. Darren Pylot, currently President and CEO of Capstone, will become Executive Chair of the new company.

The combined company anticipates production growth of over 45% by 2024 to 260,000 tonnes of copper annually form fully financed projects.

Upon completion of the transaction, Mantos’ largest shareholder, funds managed by Orion Resource Partners, will become an approximately 32% shareholder of Capstone Copper.

 

Author: Staff Writer

Continue Reading

Trending