Thor Mining (ASX:THR) – SPECULATIVE BUY*: Initiation
Market Cap: £1.6m; Current Price: 0.04p
Advancing Spring Hill at a low cost
NORTHLAND CAPITAL PARTNERS VIEW: Thor Mining is an exploration company with projects located in Australia’s Northern Territory and Nevada in the US. The Company’s current focus is its Spring Hill Gold Project, located in the Northern Territory, where it finalising the acquisition of the outstanding 49% ownership of the project at a cost of A$210,000 plus Thor CDIs to the value of A$100,000. The project has a JORC compliant mineral resource of 389,000oz Au at a grade of 1.74g/t Au, meaning that Thor effectively acquired 190,610oz Au at the low price of c. US1/oz. Thor is looking to add further ounces at a low cost by completing a twinning drill programme at a cost of c. US$350,000. A previous small re-assay campaign highlighted a 37% to 57% increase in grade using an improved assay technique. The twinning programme will allow a comparison between two assay techniques from a greater number of samples and, as a result, the potential uplift in grade could be applied to the existing mineral resource estimate. Assuming the twinning drill programme lead to a 25% increase in grade across the mineral resource estimate, the Company would add c. 97,899oz Au at a low cost of c. US$4/oz. Based on the near term potential for Thor to add ounces at a low cost at the Spring Hill Project and medium-term potential of its tungsten projects we initiate coverage with a SPECULATIVE BUY rating.
Mariana Resources (LON:MARL) – SPECULATIVE BUY*: Hot Maden update
Market Cap: £18m; Current Price: 2.4p
108.2m at 3g/t Au and 1.3% Cu
- Mariana Resources announces the latest results from resources extension and exploration drilling at its 30% owned Hot Maden project.
- Results from the resource extension programme include; 108.2m at 3g/t Au and 1.3% Cu from 292m including 12m at 6.4g/t Au and 2.8% Cu from 330m and 9m at 12.4g/t Au and 0.8% Cu from 384m (HTD-18), 88.5m at 1.8g/t Au, 2.3% Cu and 1.9% Zn from 1.5m including 3.5m at 12.5g/t Au and 5.7% Cu from 48.5m (HTD-20), 43.8m at 7.7g/t Au and 1.2% Cu from 342.2m including 13.8m at 23.3g/t Au and 1.6% Cu from 98m (HTD-22).
- Results from the exploration programme included; 12.1m at 2.1g/t Au and 0.7% Cu from 209.3m and 36m 4.3% Zn and 13.3m at 7.75% Zn from 271m (HTD-19), 64.1m at 0.8g/t Au and 0.3% Cu and 140ppm Mo from 103.4m including 0.8m at 9.6g/t Au and 0.4% Cu from 157.9m (HTD-21).
NORTHLAND CAPITAL PARTNERS VIEW: Further positive drill results from Mariana Resources that follow rapidly on from the maiden 3moz Au eq. mineral resource estimate at a grade of 11.2g/t Au eq. at Hot Maden. The holes to the south of the existing resource have continued to demonstrate the presence of additional mineralisation, though these results appear to indicate that mineralisation is narrower and/or lower grade than the exceptional results to date, but still positive compared to drill results from many other explorers. Mariana and its joint venture partners are really only just starting to assess the exploration potential around the Hot Maden deposit and we believe it has significant upside potential. It is also important to not the high grade zinc results received to date have not been included in the mineral resource estimate and represents further upside. We continue to believe Mariana is significantly undervalued.
Arian Silver (LON:AGQ) – CORP; H115 results
Market Cap: £21.5m; Current Price: 7.2p
Tertiary crusher issues delay commissioning
- During H115 Arian Silver made an operating profit of US$3.5m that includes a US$5.5m gain on the derivative liability, compared to an operating loss of US$1.8m in H114.
- Net debt totalled US$25.5m up from US$21.6m. Arian has received US$15.2m of the US$15.6m committed by Quintana Streaming.
- Mechanical issues with the tertiary crusher has meant that tonnes milled of 18,278t (c. 200tpd) compares with the expected initial production rate of 750tpd for commercial production (website).
- Silver production during Q215 at the San José Silver Mine was, as a result, behind schedule with 54,034oz Ag produced in concentrate and silver sold totalling 47,581oz.
- The tertiary crusher will need replacing and the commissioning process will extend into Q415.
- Two remaining ball mills are now ready to be commissioned and should allow increased through put once the tertiary crusher is replaced.
- Arian requires additional working capital and Arian is in discussions with various groups to address this.
- Arian has £2.1m undrawn from its three year £5 million standby equity distribution agreement with Yorkville Advisors Global that expires c. 27/09/15.
- Oliver Rodz and David Laing have resigned from the Board with immediate effect.
NORTHLAND CAPITAL PARTNERS VIEW: Arian Silver has encountered a significant issue with its tertiary crusher at San José and it will require replacing. This unfortunate development means that commissioning is well behind schedule and the cash flow expected from operations has not been generated. Commissioning is now expected to be completed within six months and the mine can then begin to ramp up its operations but in the interim the Company needs to strengthen its financial position at a time when silver prices remain low. Arian does have £2.1m that remains undrawn from a SEDA with Yorkville that could provide the Company with additional cash in the near-term (it expires c. 27/09/15) should the Company not be able to secure another source of additional financing.
Amino Technologies (LON:AMO) – BUY: Contract win
Market Cap: £112m; Current Price: 159p; Target Price: 210p
Booxmedia contract win
- Booxmedia, the Finnish subsidiary acquired in May, has signed a new contract with Delta, a Dutch utilities and digital services company, to provide, install and maintain a new end-to-end multiscreen cloud TV service.
- The service, due live later this year, will provide live stream programs, catch-up libraries, network PVR and ‘start-over-to-live’ feature that lets users watch ongoing live stream broadcasts from the beginning. The new suite of cloud TV services will be available to all its All-in-one Premium and Super users.
- No change to forecasts, BUY rating and 210p price target.
NORTHLAND CAPITAL PARTNERS VIEW: May’s Booxmedia acquisition provided Amino with a proven cloud-based platform that enables the delivery of ‘TV everywhere’ to a full range of IP connected devices, including smartphones, tablets, games consoles, STBs and home gateways. It also expanded Amino’s addressable market to include mobile operators, OTT providers, media companies and broadcasters. The consumption of content is becoming increasingly fragmented and, coupled with the more recent Entone acquisition, Amino is well positioned to capitalise on the opportunity. We maintain our BUY rating and 210p price target.