SP Angel . Morning View . Tuesday 20 12 22
Chinese lemon industry booms as people scramble for immune system boosters
MiFID II exempt information – see disclaimer below
Anglo Asian Mining PLC (AIM:AAZ, OTC:AGXKF)* – BUY – Letter to UN, US State Department, UK Foreign Office and EU
Beowulf Mining PLC (AIM:BEM)* – Proposed funding of up to £8.8m to progress Kallak development
Castillo Copper Ltd (ASX:CCZ, LSE:CCZ) – Completion of auger drilling to test the rare earth elements potential of the BHA project
Ferro Alloy Resources (LON: FAR) – Balasausqandiq Feasibility Study pushed back to Q4 2023
First Quantum Minerals (TSX:FQM) – First Quantum given 10 days to present plan for Cobre Panama operations to government
Premier African Minerals Ltd (AIM:PREM)– Drilling results from the Zulu Lithium project, Zimbabwe
Savannah Resources PLC (AIM:SAV, ETR:SAV, OTC:SAVNF)* – BUY, 17.9p – EIA update
Thor Explorations Ltd (TSX-V:THX, AIM:THX, OTC:THXPF) – Drilling results from the Douta gold project, Senegal
Titan Minerals Ltd (ASX:TTM) – First two holes at Copper Ridge intercept copper mineralisation
Rio Tinto / BHP Billiton / Vale / Fortescue Mining - China to break the $160bn iron ore trade through centralised iron ore buying
- The authorities in Beijing are developing a new state-owned company, CMRG ‘China Mineral Resources Group’ to control iron ore buying into China next year.
- The new group will begin consolidating buying for around 20 of the largest Chinese steelmakers including leader China Baowu Steel Group Corp., according to sources
- CMRG is already discussing contracts with Rio Tinto, BHP, and Vale which are unable to coordinate under international anti-trust rules.
Conclusion: We advise investors to consider taking risk off the table with Rio Tinto, BHP, Vale, Fortescue and any other miner selling iron ore into China. We also suspect the Australian dollar will weaken.
Chinese lemon industry booms as people scramble for immune system boosters
- Bloomberg reports Sichuan lemon farmers are reporting a demand increase of up to 600%, stating ‘the market is very much on fire.’
- Prices have reportedly doubled over the past 4 days.
- Lemon demand stems from the Chinese population’s need for vitamin C as the pandemic rages following the Country’s rapid reopening.
- Soaring demand is also being reported for oranges and pears, with sales on Alibaba for canned yellow peaches rising c.900%.
- Media reports indicate long queues for Paracetamol, Ibuprofen and Tylenol outside manufacturing factories and pharmacies.
- We suspect ginger will also sell out alongside canned peaches, Sichuan peppercorns and canned peaches.
- State media has warned that salt mouthwash and high-content distilled green spirits do not prevent infection.
Gold holds steady despite weaker dollar on Yen strength and rising US Treasury yields
- Gold prices remain rangebound around the $1,800/oz mark despite the dollar taking another leg down this morning.
- The Dollar weakened on a surprise announcement from Japan’s Central Bank Chief Kuroda to alter its yield curve control policy.
- The central bank will allow 10-year bond yields to move up or down 0.5% vs the previous control of 0.25%.
- The yen strengthened 4.5% against a basket of major currencies. The Dollar index has weakened 0.72%. The Yen accounts for c.14% of the index.
- Kuroda emphasised this move is ‘not a rate hike’, stating ‘adjusting the YCC does not signal the end of YCC or an exit strategy.’ Japanese inflation persists at a 40-year high of 3.6% in October.
- US 10-year yields are breaking from their dollar correlation, supporting gold prices. The benchmark yield has climbed 2.2% overnight to 3.662% as bond buying subsides.
- Gold and silver ETF holdings continue to rise as investors return to precious metal allocation. Australia’s sovereign wealth fund is planning to increase its gold exposure over fears of a low-growth, high-inflation era similar to the 1970s.
Copper prices slide as investors focus on the impact of China’s surging infections on industrial activity
- Copper prices have weakened again to the $8,300/t mark, having strengthened yesterday as Chinese officials offered further stimulus measures.
- 5 new covid deaths have now been recorded in official data, with social media reporting overwhelmed hospitals and soaring infections across major urban areas.
- A World Economics survey from Monday reports China’s business confidence hitting a decade low, with analysts expecting Covid to impact industrial productivity as workers suffer from the virus.
- Shanghai refined copper inventories are ticking higher from lows hit in November. Refined copper smelter inventories are at 2-year lows in China. LME warehouses are
- Copper futures remain in contango to LME cash futures; however, this spread has bounced from -$0.5 to -$0.17 suggesting supply dynamics are tightening again.
Coking coal weakens on signs of a warming trade relations between China and Australia
- Coking coal futures in China fell 3% yesterday on news that Australia’s Foreign Minister Wong is set to visit Beijing this week to rebuild economic ties.
- China and Australia have endured frosty relations since Australia called for an investigation into the origins of Covid-19 amid other diplomatic tensions.
- A resumption of full throttle coking coal exports from Australia to China is expected to shift domestic supplies from a shortage to surplus.
- However, steel futures continue to weaken amid soaring Covid cases, with Rebar futures down 0.7%, HRC futures down 0.6% and stainless steel falling 3.1%.
Dow Jones Industrials -0.49% at 32,758
Nikkei 225 -2.46% at 26,568
HK Hang Seng -1.41% at 19,080
Shanghai Composite -1.07% at 3,074
Economics
China – Flu, Covid and other viruses combine to keep much of the workforce at home in Beijing
- China benchmark lending rate unchanged for 4th consecutive month
- China’s PBOC held the one-year loan prime rate at 3.65%, five-year LPR held at 4.3%.
- Cash injections were increased into the banking system last week to further support the ailing economy and slumping property sector.
- One-year medium-term lenidng facility rate unchanged for the past 4 months.
- China builds second largest hydropower dam in the world following Three Gorges Project
- China has built a 62.44bnkWh hydropower plant with 16 1GW turbines.
- The facility is expected to save 90.45mt of coal pa.
- The project cost $25bn.
US Treasury to delay EV sourcing guidance to March, from Jan 1st
- The US Treasury will until March its release of proposed guidance on the required sourcing of EV batteries, meaning some EVs that will not meet the new requirements may have a brief window of eligibility in 2023 before the battery rules take effect.
- The law limits EV tax credits to vehicles assembled in North America and was partly aimed at weaning the United States off batteries from China, which now make up 70% of global supply.
- Guidance being delayed is centred on requirements that make a $3,750 subsidy contingent on at least 40% of the value of the critical minerals in the battery having been extracted or processed in the United States or a country with a U.S. free-trade agreement.
- The other $3,750 requires that at least 50% of battery components were manufactured or assembled in North America.
Germany - German Producer Prices weaker than expected in further signs of peak inflation
- Producer prices of industrial products up 28.2% in November yoy vs a 34.5% yoy rise in October. (Analysts had forecast a 30.6% rise)
- Prices fell 3.9% vs October. (Analysts had predicted 2.5%)
- Energy prices down 9.6% as nat gas pressures eased.
- ECB expects inflation over 2% through to 2025.
- Bundesbank expects German inflation to hit 7.2% in 2023 before falling to 4.1% in 2024.
Currencies
US$1.0612/eur vs 1.0641/eur yesterday. Yen 132.30/$ vs 135.94/$. SAr 17.302/$ vs 17.508/$. $1.215/gbp vs $1.220/gbp. 0.667/aud vs 0.672/aud. CNY 6.973/$ vs 6.974/$.
Dollar Index: 104.14 vs 104.26 yesterday..
Commodity News
Precious metals:
Gold US$1,797/oz vs US$1,796/oz yesterday
Gold ETFs 94.0moz vs US$94.1moz yesterday
Platinum US$987/oz vs US$1,005/oz yesterday
Palladium US$1,698/oz vs US$1,734/oz yesterday
Silver US$23.14/oz vs US$23.38/oz yesterday
Rhodium US$12,300/oz vs US$12,300/oz yesterday
Base metals:
Copper US$ 8,301/t vs US$8,359/t yesterday
Aluminium US$ 2,372/t vs US$2,386/t yesterday
Nickel US$ 27,450/t vs US$28,370/t yesterday
Zinc US$ 3,022/t vs US$3,038/t yesterday
Lead US$ 2,159/t vs US$2,156/t yesterday
Tin US$ 23,600/t vs US$23,400/t yesterday
Energy:
Oil US$79.6/bbl vs US$79.0/bbl yesterday
- Crude oil prices edged higher on signs that the Chinese authorities were relaxing Covid restrictions and allowing the economy more freedom to reopen.
- European energy edged lower as the EU has reached a deal to cap natural gas prices at €180/MWh for three days (equivalent to $288/bbl), which is significantly lower than the €275/MWh level that was originally proposed.
Natural Gas US$5.669/mmbtu vs US$6.190/mmbtu yesterday
Uranium UXC US$48.10/lb vs US$48.15/lb last week
Bulk:
Iron ore 62% Fe spot (cfr Tianjin) US$107.6/t vs US$108.9/t
Chinese steel rebar 25mm US$580.8/t vs US$581.0/t
Thermal coal (1st year forward cif ARA) US$225.0/t vs US$225.0/t
Thermal coal swap Australia FOB US$368.5/t vs US$370.0/t
Coking coal swap Australia FOB US$275.0/t vs US$275.0/t
Other:
Cobalt LME 3m US$51,955/t vs US$51,955/t
NdPr Rare Earth Oxide (China) US$100,740/t vs US$100,014/t
Lithium carbonate 99% (China) US$74,211/t vs US$74,491/t
China Spodumene Li2O 5%min CIF US$6,040/t vs US$6,040/t
Ferro-Manganese European Mn78% min US$1,310/t vs US$1,314/t
China Tungsten APT 88.5% FOB US$320/mtu vs US$320/mtu
China Graphite Flake -194 FOB US$880/t vs US$880/t
Europe Vanadium Pentoxide 98% 8.1/lb vs US$7.9/lb
Europe Ferro-Vanadium 80% 33.75/kg vs US$33.25/kg
China Ilmenite Concentrate TiO2 US$323/t vs US$323/t
Spot CO2 Emissions EUA Price US$90.6/t vs US$90.8/t
Brazil Potash CFR Granular Spot US$510.0/t vs US$510.0/t
Company News
Anglo Asian Mining PLC (AIM:AAZ, OTC:AGXKF)* 89.4p, Mkt Cap £102m – Letter to UN, US State Department, UK Foreign Office and EU
BUY
- Anglo Asian Mining have written to the UN, US State Department, UK Foreign Office and EU about the exploitation of the company’s mining rights by others.
- The letter refers to mining rights in Karabakh, often referred to as the ‘disputed territories’ much of which has been regained by the nation of Azerbaijan in recent years.
- Anglo Asian Mining PLC (AIM:AAZ, OTC:AGXKF) holds legal title over two contract areas in Karabakh, which host the Kyzlbulag copper-gold mine and the Demirli copper-molybdenum mine.
- These contract areas are within the region controlled by the Russian peacekeeping force, but the Company believes illegal mining by Armenian companies has been and continues to be conducted in these concession areas.
- Management are requesting he restoration of its legitimate business rights and the safe physical access for Anglo Asian's employees to the Kyzlbulag and Demirli mines and surrounding exploration territory in Karabakh.
- Anglo Asian Mining has previously sent similar letters of confirmation to each of these government bodies to formally confirm its priority of ownership.
- The board of Anglo Asian Mining comprises:
- Reza Vaziri who formerly chief of the office of political and international affairs and head of the Foreign Relations Office at the Ministry of the Imperial Court of Iran (Pre-revolution).
- Governor John Sununu, former Chief of Staff to President George Bush and Professor of practice in public service at the Kennedy School of Government, Harvard University.
- Khosrow Zamani, director of the southern Europe and central Asia department of IFC. Zamani was instrumental in building a >$2bn IFC investment portfolio in central Asia and Caucasia.
- John Monhemius, Emeritus professor and dean at the Royal School of Mines, Imperial College
- Michael Sununu, formerly with JP Morgan's Oil and Mining group.
Conclusion: Anglo Asian is developing value around its Gedabek gold and copper mine and is also looking to regain safe access to its licenses in the Karabakh region. It is possible the company could also claim compensation for mining done by Russian and Armenian groups on its licenses within this region.
*SP Angel acts as nomad and broker to Anglo Asian Mining
Beowulf Mining PLC (AIM:BEM)* 3.75p, Mkt Cap £35m – Proposed funding of up to £8.8m to progress Kallak development
- Beowulf has stated its intention to undertake a preferential rights issue of Swedish Depository Receipts (SDR) along with a retail offering in the UK of ordinary shares, in the first quarter of 2023.
- The Company aims to raise SEK 85m (£6.7m) from SDRs (that represent interests in ordinary shares) and SEK 27m (£2.1m) from a UK retail offering.
- Beowulf has received underwriting commitments for the Rights Issue which in aggregate amount to maximum SEK 60 million (£4.7m), while Board and Management have delared their intention to subscribe for SEK 2m (£150k).
- Funds will be used to continue to achieve progress at Kallak North, where Beowulf aims to become a supplier of world class, net zero CO2 emission iron ore concentrates for developing green steel producers in the Nordic region.
- The Rights Issue will also repay bridge loan financing and with sufficient funding available, possible resource drilling for Kallak South, and capital for continued development of Grafintec and Vardar's exploration programme.
- In terms of timeline at Kallak, the scoping study is due in January 2023 and application for the environmental permit, is planned to be submitted in Q4 2023. The study will provide detailed insight into how to deliver a ‘net zero’ project and develop a sustainable mine.
- Beowulf contracted Vulcan Technologies to complete a Marketing Study for the Kallak concentrate, with Vulcan specialising in metallurgical test work programmes that have yielded world class blast furnace operational results.
- Previous clients of Vulcan include Rio Tinto, Teck, Roy Hill and Vedanta.
- We expect the study to evaluate Kallak as a supplier of high-quality concentrate to Sweden’s budding fossil-free steel sector.
- H2 Green Steel closed its latest funding round in October, raising €260m to build a green hydrogen-powered steel plant in northern Sweden.
- Kallak which hosts a particularly clean concentrate that should enable steel makers to reduce carbon emissions, improve energy efficiency and reduce waste leading to cleaner and greener steel production.
- The project is also ~120km southwest of the giant Kiruna iron ore mine which LKAB claims to be the first source of green iron in the Europe.
- We see Beowulf as perfectly positioned to service the Swedish Green steel industry given the high-quality magnetite product and close location to H2’s facilities which reduces the overall scope 3 emissions for H2.
Conclusion: The awarding of the exploitation license earlier this year has given Beowulf management and shareholders a clearer path to development at Kallak. Funds raised will allow the company to complete its scoping study and environmental permit along with resource drilling, all of which are important milestones for a company in the development stage.
*SP Angel acts as Nomad and Broker to Beowulf Mining
Castillo Copper Ltd (ASX:CCZ, LSE:CCZ) 0.95p, Mkt Cap £12m – Completion of auger drilling to test the rare earth elements potential of the BHA project
- Castillo Copper reports that it has now completed a programme of auger drilling to test the extent of rare-earth mineral potential within a 6.5km2 area adjacent to its Fence Gossan prospect in the BHA East project area in New South Wales.
- Assay results from the auger drilling campaign are not expected for 4-6 weeks and in “addition, the Board expects to receive the final three RC drill assays for Reefs Tank and diamond core for Tors Tank in the next 4 to 6 weeks”.
- Managing Director, Dennis Jensen, described the identification of the rare-earths elements potential of the eastern part of the BHA project and that “shallow REE mineralisation is more widely apparent within the BHA Project's East Zone than initially expected … [as] … the highlight event for 2022”.
- He explained that when the results of the auger drilling campaign are available they “will enable us to chart the next phase of exploration”.
Ferro Alloy Resources (LON: FAR) 11.71p, Mkt cap £54m – Balasausqandiq Feasibility Study Update
- Ferro-Alloy Resources updates on the ongoing feasibility study at the Balasausqandiq vanadium project in Kazakhstan.
- Phase 1 drilling has been completed with updated resource estimate due in Q1 2023.
- Phase 2 drilling has also been completed for the feasibility study
- A further drill program may be planned for ‘a residual area of difficult topography’.
- Metallurgical test-work continues to progress with SGS Lakefield under the supervision of TetraTech.
- Extraction of vanadium during acid leaching is reported to run above expectations at 94-97% vanadium extraction into solution.
- Test-work will also include subsequent phases for the extraction of vanadium, uranium, molybdenum and potassium alum and solid liquid separation tests.
- The team are also looking at additional technical studies for the potential production of a carbon black substitute for from rubber carbon-rich tailings and as a feed for the production of ferro silicon.
- Open pit geotechnical drilling has started with results used to confirm the open pit slope design.
- Drilling for open pit hydrogeology starts in early 2023.
- The Phase 1 feasibility study for 1mpta is now due in Q4 2023 vs mid-2023 as previously expected.
- The company raised US$10m in mid-September by way of a placing and subsequent offer of 72m new shares at 12p/s to fund the expanded Balasausqandiq feasibility study.
- The company reported a loss for the six-months to end June of US$694,000 despite raising production by 22% to 172t of vanadium pentoxide.
- The cost of sales rose materially through the first half to $4.5m from $1.5m yoy driven by a substantial increase in the cost of materials which rose to $2.7m from $1m
- Wages, salaries and related taxes rose through the period to $633,000 lifting admin expenses to $1.2m from $0.9m a year earlier.
- Costs rose primarily die to the purchase cost of increased volumes of bought-in concentrate with the cost of sales rising to $16,000/t from 11,000/t of vanadium pentoxide.
- Supply chain issues as a result of the geopolitical climate and the residual impact of Covid-19 are blamed for the performance.
- Management expect the annualised production rate to reach a targeted 1,500t of vanadium pentoxide eq. towards the end of 2022.
First Quantum Minerals (TSX:FQM) C$27.53, Mkt Cap C$19bn – First Quantum given 10 days to present plan for Cobre Panama operations to government
- Panamanian officials have told First Quantum they have to provide a plan to halt work at its Cobre Panama project.
- FQM has 10 days to present the plan and can appeal against the order within 5 days.
- The Panamanian government is looking to increase tax revenues from the mine to a minimum of $375m.
- The National Government has executed a ‘Preservation and Safe Management Plan’, placing oversight and control of the mining project under the Minister of Environment.
- The Government notes that ‘Panama’s mineral resources belong to the Panamanian people.’
Premier African Minerals Ltd (AIM:PREM) 0.51p, Mkt Cap £118m – Drilling results from the Zulu Lithium project, Zimbabwe
- Premier African Minerals reports that mineral resource drilling for the DFS at its Zulu lithium project in Zimbabwe has intersected multiple zones of what is described as high grade spodumene mineralisation and confirmed “the integrity of the ore body”.
- Among the higher-grade results from holes ZDD126 to ZDD148 and holes GT-SP-02 to GT-SP-06 and GT-NP-03 reported in today’s announcement are,
- A 6.20m wide intersection averaging 1.15% Li2O and 32ppm Ta2O5 from a depth of 209.30m in hole ZDD-126 which included single metre wide intersections assaying 1.77% and 1.78% Li2O at 210.30m and 214.30m depth; and
- A 2.99m wide intersection averaging 1.38% Li2O and 17ppm Ta2O5 from a depth of 224.73m in hole ZDD-129 which also intersected 4.61m averaging 0.85% Li2O and 27ppm Ta2O5 from 229.93m depth and 0.98% Li2O and 35ppm Ta2O5 from a depth of 238.37m; and
- A 6.30m wide intersection averaging 1.50% Li2O and 73ppm Ta2O5 from a depth of 268.13m in hole ZDD-137; and
- A 3.04m wide intersection averaging 1.17% Li2O and 177ppm Ta2O5 from a depth of 193.86m in hole ZDD-139, including 1.80m averaging 1.80% Li2O and 154ppm Ta2O5 from a depth of 195.10m; and
- A 32.20m wide intersection averaging 1.67% Li2O and 47ppm Ta2O5 from a depth of 173.78m in hole ZDD-140 including single metre wide intersections of 2.81% Li2O and 2.50% Li2O at 181.65m and 188.20m as well as 2m averaging 2.57% Li2O at 193.20m and 3m averaging 2.41% Li2O at 202.20m; and
- A 3.54m wide intersection averaging 1.97% Li2O and 93ppm Ta2O5 from a depth of 332.36m in hole ZDD-140, including a single metre at 3.65% Li2O at 333.36m; and
- 11.55m averaging 1.35% Li2O and 168ppm Ta2O5 from a depth of 70.32m in hole ZDD-143, including 1m at 2.16% Li2O at 76.12m depth; and
- A 3.17m wide intersection averaging 1.20% Li2O and 148ppm Ta2O5 from a depth of 134.28m in hole GT-SP-02; and
- A 5.20m wide intersection averaging 1.13% Li2O and 115ppm Ta2O5 from a depth of 4.34m in hole GT-SP-06, including 1.50m averaging 1.75% Li2O and 76ppm Ta2O5 from a depth of 7.34m and further intersections of 8.22m averaging 1.30% Li2O at 15m depth and 7.50m averaging 1.32% Li2O from a depth of 24.17m and 11.85m averaging 1.12% Li2O from 44m; and
- 6m averaging 1.65% Li2O and 91ppm Ta2O5 from a depth of 46.84m in hole GT-SP-07; and
- 7.50m averaging 1.70% Li2O and 40ppm Ta2O5 from a depth of 137.92m in hole GT-NP-03, including 2.50m at an average grade of 3.15% Li2O and 20ppm Ta2O5 from a depth of 139.42m
- The company also confirms progress on the pilot plant construction and that “we remain on target to produce spodumene in Q1 2023”.
Conclusion: Resource drilling for the DFS is confirming the continuity of mineralisation in high-grade shoots at the Zulu lithium project. The company also confirms that the pilot plant remains on course to deliver its initial spodumene concentrate during Q1 2023.
Savannah Resources PLC (AIM:SAV, ETR:SAV, OTC:SAVNF)* 2.2p, Mkt Cap £37m – EIA update
BUY – 17.9p
- Savannah provides an update regarding the Environmental Impact Assessment of the Barroso Lithium Project, commenting that the company is “nearing completion of a series of very productive virtual and face to face meetings with APA and other member groups of APA's EIA evaluation committee”.
- The Company entered the article 16 process of the EIA review conducted by the environmental regulator, Agência Portuguesa do Ambiente (APA) in July, and meetings since have been constructive and allowed Savannah “to gain a full understanding of the committee's concerns in relation to the Company's previous EIA submission for the Project”
- Savannah has now developed an updated site layout and mine plan which Savannah believes addresses the concerns raised by APA and its evaluation committee, whilst reducing the overall environmental impact of the Project, while not affecting spodumene production.
- The Company continue to make progress on the revisions of the EIA documents, with the company on track to make its resubmission during Q1 2023, when APA will then have a maximum of 50 business days to conduct its review and issue its Declaration of Environmental Impact decision.
*SP Angel act as Nomad and Broker to Savannah Resources
Thor Explorations Ltd (TSX-V:THX, AIM:THX, OTC:THXPF) 16p, Mkt Cap £98m – Drilling results from the Douta gold project, Senegal
- Thor Explorations has released results from the final 8,000 metres of its 26,000m programme of reverse-circulation drilling at the 70% owned Douta gold project in eastern Senegal where it has already identified an inferred mineral resource of 15.3mt at an average grade of 1.73g/t gold containing 511,000oz at the Makosa deposit.
- The programme was planned to “target potentially higher-grade parts of the deposit” and among the results reported today are:
- An intersection of 40m averaging 1.95g/t gold from surface in hole DTRC-596; and
- 26m at an average grade of 4.66g/t gold from a depth of 42m in hole DTRC-640 which included a higher grade section of 10m averaging 10.29g/t gold; and
- An intersection of 32m averaging 1.45g/t gold from 43m depth in hole DTRC-612; and
- An intersection of 9m averaging 11.74g/t gold from a depth of 58m in hole DTRC-620; and
- Another intersection of 9m averaging 4.18g/t gold from surface in hole DTRC-626; and
- An intersection of 16m averaging 2.20g/t gold from a depth of 85m in hole DTRC-624; and
- An intersection of 38m averaging 1.01g/t gold from 42m in hole DTRC-637; and
- An intersection of 31m averaging 1.40g/t gold from 97m depth in hole DTRC-641; and
- An intersection of 37m averaging 1.18g/t gold from 37m depth in hole DTRC-358
- The Douta project is located within the Kéniéba inlier around 4km east of Endeavour Mining’s Sabadola-Massawa project which hosts an indicated mineral resource of almost 3m oz on what, ferom maps shown in today’s announcement may be a structure parallel to the targets at Douta
- Gold mineralisation at Makosa is “developed either within a sheared gabbro intrusive or within a steep north-westerly dipping sequence of meta-sedimentary rocks that are close proximity to the gabbro. Higher grade zones or shoots are suspected to occur along east-west oriented structures that cut across the main north-east trend of the mineralisation … [and the announcement today explains that the] … drill results demonstrate the continuity of gold mineralisation both along strike and down dip”.
- Thor Explorations says that “it appears that several of the anticipated high-grade zones have been intersected in the closer spaced drill pattern”.
- Geological cross-sections included in today’s announcement SIGNIFICANT GOLD GRADES FROM DRILLING AT DOUTA - 07:00:10 20 Dec 2022 - THX News article | London Stock Exchange show mineralised structure dipping at a steep angle towards the north-west.
- In addition to the drilling at Makosa, Thor Explorations confirms that it intends further drilling to follow up encouraging results at the Sambara, Mansa and Maka prospects located further to the north-east within the same broad geological belt that hosts the mineralisation at Makosa.
- President and CEO, Segun Lawson, described the drilling as “highly encouraging in the context of the Douta Project … [and said that the] … higher-grade zones at depth provide the encouragement and impetus to propel the next phase of advancing this very exciting project in the New Year … [with a focus on] … resource growth and project development in Senegal”.
Conclusion: The completion of the latest phase of reverse circulation drilling at the Douta project in eastern Senegal has helped identify higher grade mineralisation, possibly within cross structures at Makosa and will contribute to future revisions of the existing 0.5moz inferred mineral resource. Future drilling within the same structure northeast of Makosa will test the Sambara, Mansa and Maka targets.
Titan Minerals Ltd (ASX:TTM) A$0.08, Mkt Cap A$108m – First two holes at Copper Ridge intercept copper mineralisation
- Titan Minerals provides an update for the latest drilling campaign at its Linderos Project in Ecuador, where a maiden programme is planned to consist of 3,700m over eight diamond holes in the Copper Ridge Porphyry prospect.
- Highlights from the first two holes include:
- Hole CRDD22-001 – 52m at 0.3% CuEq from 82m
- Hole CRDD22-003 – 308m at 0.4% CuEq from 54m; including:
- 76m at 0.5% CuEq from 132m
- Results confirm the presence of copper-moly-Au-Ag mineralisation from shallow depths, with potential for both lateral and depth extensions.
- Titan are in the process of logging key geological figures ahead of future exploration work, and will continue to do so as assay results come in.
-
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Analysts
John Meyer – John.Meyer@spangel.co.uk – 0203 470 0490
Simon Beardsmore – Simon.Beardsmore@spangel.co.uk – 0203 470 0484
Sergey Raevskiy –Sergey.Raevskiy@spangel.co.uk - 0203 470 0474
Joe Rowbottom – Joe.Rowbottom@spangel.co.uk - 0203 470 0486
Sales
Richard Parlons –Richard.Parlons@spangel.co.uk - 0203 470 0472
Abigail Wayne – Abigail.Wayne@spangel.co.uk - 0203 470 0534
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Grant Barker – Grant.Barker@spangel.co.uk – 0203 470 0471
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*SP Angel are the No1 integrated nomad and broker by number of mining brokerage clients on AIM according to the AIM Advisers Ranking Guide (joint brokerships excluded)
+SP Angel employees may have previously held, or currently hold, shares in the companies mentioned in this note.
Sources of commodity prices
Gold, Platinum, Palladium, Silver - BGNL (Bloomberg Generic Composite rate, London)
Gold ETFs, Steel - Bloomberg
Copper, Aluminium, Nickel, Zinc, Lead, Tin, Cobalt - LME
Oil Brent - ICE
Natural Gas, Uranium, Iron Ore - NYMEX
Thermal Coal - Bloomberg OTC Composite
Coking Coal - SSY
RRE - Steelhome
Lithium Carbonate, Ferro Vanadium, Tungsten, Spodumene, Ferro-Manganese, Graphite - Asian Metal
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