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Today's Market View - Arc Minerals, Cornish Metals, Greatland Gold and more...

Arc Minerals* (LON:ARCM) – Arc Minerals extends exclusivity agreement with Anglo for a further 180 days Cornish Metals* (CVE:CUSN) – Intention to float on AIM market Greatland Gold (LON:GGP) – Newcrest approves A4146m for preparatory mining work at Havieron IronRidge Resources* (LON:IRR) – Drilling defines multiple targets at Ewoyaa Lithium Project

Arc Minerals Limited -

SP Angel . Morning View . Wednesday 13 01 21

Gold trades higher as central banks reiterate their pro stimulus stance

 

Arc Minerals* (LON:ARCM) – Arc Minerals extends exclusivity agreement with Anglo for a further 180 days

Cornish Metals* (CVE:CUSN) – Intention to float on AIM market

Greatland Gold (LON:GGP) – Newcrest approves A4146m for preparatory mining work at Havieron

IronRidge Resources* (LON:IRR) – Drilling defines multiple targets at Ewoyaa Lithium Project

Kenmare Resources (LON:KMR) – 2020 production and 2021 guidance

Sunrise Resources (LON:SRES) – Progress report on projects

Zamare Minerals* (Private) - Zamare announce agreement with First Quantum Minerals over the Ntambu exploration license in Zambia

 

Base metal prices rise as dollar weakens and stimulus hopes persist

Base metals closed higher across the board on Tuesday, as the Dollar Spot Index fell 0.6% after three straight days of gains (Bloomberg).

News out of the US yesterday suggested that President-elect Biden will seek a deal with Republicans on another round of Covid-19 relief.

Previous rounds of stimulus have weighed on the dollar, positive for dollar-denominated metals on the LME.

Gains in industrial metals prices were tapered as Chinese authorities struggle to contain a coronavirus outbreak in Hebei province.

Nickel prices saw the biggest gains on the LME yesterday, rising 3.4% to $17,668/t.

Copper prices closed 1.4% higher at $7,976/t (Fastmarkets MB).

 

China – Authorities are locking down three cities asking residents in Beijing, Shanghai and Guandong province not to travel for the annual Spring Festival holiday.

Around 23m people living in northern cities of Shijiazhuang, Xingtai and Lanfang, in Hebei province next to Beijing, are unable to leave their cities.

This marks the strictest set of measures the country has had since the initial COVID-19 outbreak last year.

 

China – Passenger vehicle sales rise 7.2% YoY to 2.4m units in December

Electric Vehicle sales rose 49.5% YoY to 248,000 units.

Chinese EV sales expected to grow 30-40% this year according to industry body

Sales of new energy vehicles are expected to grow to around 1.8m units in 2021, according to the China Association of Automobile Manufacturers.

China recently decided to extend its EV subsidies for two further years to 2022, as the country aims to have NEVs accounting for 20% of its overall auto sales by 2025, vs 5% now.

NEV sales only rose 8% last year to 1.3m, well below the government’s 2m target for the year- as Covid-19 paralysed the economy in the first few months of the year.

 

Recent Interviews:

IGTV:   Is 2021 the start of the new COVID-Supercycle or will Lockdowns delay the recovery? https://youtu.be/7LO0tDc-pNc

As traders continue to bid up Tesla, is the EV sector approaching a bubble? https://youtu.be/LaDWBpTZ7SQ

Copper price rise: https://youtu.be/mdPXTup15VY

08/01/20 :https://www.voxmarkets.co.uk/media/5ff8216bafab1e2b28278e94/?context=/listings/LON/ALS/multimedia/

10/12/20: https://www.voxmarkets.co.uk/media/5fd228d9bc74c922485f501e/?context=/listings/LON/ARCM/multimedia/

US Election, China growth policies Solgold*, Mkango*, Rainbow Rare Earths*: https://youtu.be/YKk5-kVpVGE

EV revolution, gold and other ideas (Interactive Investor): https://www.youtube.com/watch?v=ja0IdjszfCc

Metals Markets: Are they totally dependent on stimulus? (IG TV): https://youtu.be/TOiSwRpgfKM

iiTV:     The mining stock to own in 2021: https://www.youtube.com/watch?v=4x7SuSLQwCI&t=11s

Small Cap Mining Share tips for 2021 - https://www.youtube.com/watch?v=G_6RKAp91k4

Miners for a green industrial revolution - https://www.youtube.com/watch?v=rXlNS6JIDvg&t=3s

A Mining megatrend and three solid dividend stocks - https://www.youtube.com/watch?v=sH5r-QbTRwg

*SP Angel almost invariably acts as nomad or broker or nomad and broker to companies mentioned in the above videos and podcasts.

We speak more about these companies as we have a good understanding of their business and can talk with a greater degree of confidence. As ever, however, it should be noted that our views do not take into account the circumstances and needs of any particular investor or investor type. So enjoy the talks, one and all, but please do your own research, including other companies not mentioned by us but operating in the same areas, and get professional advice where appropriate.

 

Dow Jones Industrials +0.19% at 31,069

Nikkei 225 +1.04% at 28,457

HK Hang Seng -0.15% at 28,236

Shanghai Composite -0.27% at 3,599

 

Economics

US – Two Fed Reserve Bank heads dialled down speculation that the central bank may taper its asset purchases this year.

James Bullard of St Louis Fed said that he is willing to “get through the pandemic and sort of see where the dust settles” before thinking “about where to go with balance-sheet policy”.

Separately, Boston Fed chief Eric Rosengren also suggested that “it to be a little while before we’re even talking about tapering on our purchases of government and mortgage-backed securities”.

A number of Republicans voiced their support for impeachment of President Trump.

House is expected to hold a vote today and if approved the Senate will hold a trial to determine President Trump’s guild.

A two-thirds majority would be needed to convict Trump meaning at least 17 Republicans would need to vote for coinviction, BBC reports.

However, as many as 20 Senate Republicans were open to convicting the president, according to the New York Times.

The Senate could also use an impeachment trial to hold a vote blocking President Trump from ever running for office again.

The US reported a further 4,056 deaths on Tuesday with the weekly total of 23,119, the highest since the start of the pandemic.

The overall death toll for the US currently stands at over 371,000, more than any other nation.

Health authorities criticised some states for delays in managing vaccination. With more than 25m doses having been distributed nationally and only 9m given so far.

Biden expected to ‘Go Big’ on new stimulus package

· Infighting within the corridors of power might hold up Joe Biden’s stimulus package.

· Trump wanted the glory for rescuing the US economy through his stumulus proposals which were delayed by the Democrats.

· Now it is time for the Democrats to ‘Go Big’ and for the Republicans to possibly chip away at its scale.

· Either way the US needs to renew much of its crumbling infrastructure to keep up with the Chinese

 

Japan – Electricity prices hit record high as capacity utilization soars to 99%

Power prices hit an all-time high of 232.2 yen ($2.24) per kilowatt hour on Wednesday as winter continues to grip parts of asia.

Power companies asked customers to leave the heating on but turn off other appliances as the electricity system hit 99 per cent of its maximum capacity (FT).

The government is now warning of potential blackouts, as only three out of 33 nuclear reactors in Japan are in operation.

 

ECB remains committed to its pro-stimulus stance and stands ready to provide monetary policy support for as long as needed, central bank governing council member Francois Villeroy de Galhau said during his French National Assembly address.

 

EU – Looks to Joe Biden presidency for defuse trans-Atlantic trade conflict

· While Biden administration will likely offer more diplomatic rhetoric we suspect their trade stance towards Fortress Europe will remain similar.

· Europe’s recent in-principal agreement investment treaty with China may prove problematic for US trade negotiators.

· While Biden has stressed his Irish roots we still believe the US will work to agree a trade deal with the UK

· The US was the UK’s largest trading partner by total trade in goods, excluding unspecified goods in H1 2020, followed by Germany, China, Holland and France.

 

UK – Lawmakers urged PM to set a March 8 target for easing restrictions after ministers insisted 15m of the most vulnerable people in the UK would be offered a vaccine by mid-Febriuary.

So far 2.4 people were vaccinated with 0.4m receiving 2nd doses with the programme launched early in December.

The country reported 45,533 new cases and 1,243 deaths on latest daily numbers.

UK Supermarkets to offer in-store Covid vaccinations

I’ll have a Big Mac and a Covid jab please

 

Turkey – The country is about to launch mass vaccination with the Chinese-made CoronaVac as an emergency use authorisation is expected to come in as soon as Thursday.

Health care workers, people aged 65 and adults living in shelters will be vaccinated first in two doses with a 28-day interval.

 

Mexico – Daily COVID-19 related death rate hit record high of 1,314 yesterday in Mexico taking the total to 135,682.

Mexico City is one of the hardest hit areas had more than 90% of its general hospital beds occupied and 88% of beds with ventilators in use.

Authorities have also reported cases of the new virulent B.1.1.7 strain.

The country is starting the vaccination programme.

 

UAE – UAE vaccinated more than 1.25m of its 9.6m people placing it in the second place among countries with highest share of population inoculated behind Israel.

 

French – belligerent French customs spoiling French fish supply chains as stocks rot (Reuters)

· French fishmongers and seafood factories are suspending orders from Britain and battling to salvage just-in-time supply chains, after they were upended by post-Brexit red tape that impedes next-day delivery of salmon and lobster from Britain to Europe.

· Deliveries were sometimes being held up because the Latin names of fish species were incorrectly entered on papers.

· The zero-tolerance policy started to show in other areas of imports before Brexit negotiations were finalised indicating a policy by the EU to punish UK companies.

· Other reasons for delays included sanitary certificates missing the required stamps and French agents adopting a zero-tolerance approach to mistakes in the cumbersome process.

· The result is a chaotic breakdown in supply chains from the outer reaches of the British Isles to the northern French port of Boulogne, which used to see Scottish langoustine and scallops in French shops just over a day after they were harvested.

 

The main pharmaceutical lobby group in the US and Europe argued for the compliance with vaccination times and dosing in line with the one used in clinical trials.

Any changes in dosing and inoculation schedules “should follow the science and be based on a transparent deliberation of the available data”, the International and European Federations of Pharmaceutical manufacturers & Associations and US industry groups BIO and PhRMA said in a joint statement.

The guidance was offered as a number of countries are adjusting dosing strategies in an attempt to optimise the process and treat as many people as possible.

The UK is looking to extend the dosing regime to 12 weeks between two jabs with Germany and Denmark looking for a six weeks’ period.

US agencies, on the other hand, argued against spacing doses out with Health Secretary calling it “reckless” and the FDA warning it is “counter-productive”, according to FT.

 

CurrenciesUS$1.2196/eur vs 1.2159eur yesterday.  Yen 103.71/$ vs 104.22/$.  SAr 15.265/$ vs 14.472/$.  $1.368/gbp vs $1.354/gbp.  0.776/aud vs 0.772/aud.  CNY 6.465/$ vs 6.467/$.

Sterling looks likely to strengthen further >1.4/USD as Brexit uncertainty wanes and port disruption clears

· Sterling, which was battered for so long by Brexit uncertainty should see some recovery through 2021.

· The UK’s rapid rollout of the new Oxford AstraZeneca and Pfizer vaccines appears to be drawing investment into the UK in anticipation of further recovery.

· Uncertainty remains over the level at which herd immunity might be reached or if current vaccines will protect against new mutations of the coronavirus.

· There is some uncertainty over vaccine effectiveness against the South African strain while the vaccines of both companies appear effective against the UK strain which has lesser mutation.

 

Commodity News

Precious metals:  

Gold US$1,857/oz vs US$1,858/oz yesterday

Gold ETFs 107.4moz vs US$107.4moz yesterday

Platinum US$1,077/oz vs US$1,061/oz yesterday

Palladium US$2,394/oz vs US$2,374/oz yesterday

Silver US$25.48/oz vs US$25.37/oz yesterday

 

Base metals:  

Copper US$ 7,978/t vs US$7,970/t yesterday – Oyu Tolgoi copper mine expansion uncertain as Mongolian government considers options

· Capital costs for the mine including the new expansion have run up to US$6.75bn highlighting how expensive block cave mining can be in remote areas.

Aluminium US$ 2,021/t vs US$2,013/t yesterday

Nickel US$ 17,760/t vs US$17,645/t yesterday – Nickel prices rise as worries mount in key export jurisdictions

Nickel built on Tuesday’s gains this morning, on worries about supply disruptions in New Caledonia and the Philippines, Reuters reports.

French mining group Eramet warned that its New Caledonian operations risked going into liquidation if protests continues to disrupt operations.

Meanwhile, Philippine President Rodrigo Duterte banned mining on Tumbagan Island in Languyan due to environmental concerns.

Although the island is a small part component of the Philippines’ overall nickel operations, it underscores a level of uncertainty which feeds into wider supply concerns over the nation’s ability to satisfy Chinese demand.

· The open cast mining of nickel laterites on beaches and in coastal areas is environmentally destructive and is a major issue for local communities

Three-month nickel prices on the LME rose 0.9% this morning after closing 3.4% higher on Tuesday.

 

Zinc US$ 2,777/t vs US$2,785/t yesterday – 49 zinc smelters surveyed by Antaike produced a record 5.3mt of zinc last year, up 3.1% on 2019

· The smelters plan to raise zinc production in 2020 by 5.7% this year to 6mt.

Lead US$ 2,035/t vs US$1,985/t yesterday

Tin US$ 21,030/t vs US$20,790/t yesterday – rising tin prices have drawn metal out of Indonesia with exports rising 40% in December to 6,376t though this is still -1.1% lower yoy.

 

Energy:           

Oil US$57.0/bbl vs US$56.0/bbl yesterday

· Oil prices are now at a 10-month high, posting further gains in the wake of the OPEC+ cuts, and edged a bit higher by a weaker dollar

· WTI is above the 200-week moving average

· The jump in crude oil prices could finally bring positive cash flow to much of the US shale industry increasing by 32% this year according to Rystad Energy

· OPEC+ group’s compliance with the oil production cuts fell to 75% in December 2020, one of the lowest levels since the pact was enacted in May 2020, tanker tracking firm Petro-Logistics confirmed yesterday

· According to the latest survey from the Kansas City Federal Reserve, oil and gas firms reported that oil prices needed to be on average US$56/bbl for a substantial increase in drilling to occur, and natural gas prices needed to be US$3.28/mmbtu

· Shell has confirmed that it will cut a further 300 jobs in the North Sea over the next two years 

· Fitch Ratings warned about the contined threat of defaults in a recent update, noting the oil and gas industry would this year again be the one with the most defaults

· Elsewhere, we are now in the fourth day of the annual five-day rebalancing of portfolios which could attract as much as US$9bn buying into crude oil contracts, putting upward pressure on oil prices

· The rebalancing of indices to adjust the weighting of assets in portfolios is being done every year so that target allocations or risk levels are restored

· However, the rebalancing this year could attract more than usual buyers into crude oil contracts because of the 20-percent decline of oil prices during 2020

· The next five days could see a buying spree in oil futures that could be as high as US$9bn to adjust the weighting of the major commodity-linked indices

· The market will likely see long positions into another 80 to 100MMbbls oil futures contracts, which could drive oil prices by US$2-US$3/bbl

· It’s not a given that the market will see US$9bn of new buying into oil futures because some investors and traders may have already done it ahead of the rebalancing period

· Even if the buying spree is not so high, the rebalancing will likely to continue to support oil prices

Natural Gas US$2.767/mmbtu vs US$2.824/mmbtu yesterday

 

Bulk:   

Iron ore 62% Fe spot (cfr Tianjin) US$165.8/t vs US$167.5/t

Chinese steel rebar 25mm US$667.2/t vs US$670.30/t

Thermal coal (1st year forward cif ARA) US$73.5/t vs US$71.8/t – China seen as limiting coal supplies in certain cities.

· This may be due to China’s punishment of Australia through the banning of Australian coal imports with Indonesian and Indian coal filling the gap.

Coking coal swap Australia FOB US$132.0/t vs US$132.0/t

           

Other: 

Cobalt LME 3m US$37,010/t vs US$37,010/t

NdPr Rare Earth Oxide (China) US$65,966/t vs US$65,331/t

Lithium carbonate 99% (China) US$8,507/t vs US$8,505/t

Ferro Vanadium 80% FOB (China) US$30.0/kg vs US$30.0/kg

Ferro-Manganese high carbon 78% Mn US$1,380/t vs US$1,370/t

Tungsten APT European US$235-240/mtu vs US$230-235/mtu

Graphite flake 94% C, -100 mesh, fob China US$520/t vs US$520/t                

Graphite spherical 99.95% C, 15 microns, fob China US$2,475/t vs US$2,475/t

Spodumene 6% Li2O min, cif (China) US$395/t vs US$380/t

 

Company News

Arc Minerals* (LON:ARCM) – 3.95p, Mkt cap £39m – Arc Minerals extends exclusivity agreement with Anglo for a further 180 days

(Arc holds 72.5% of Zaco and 66% of Zamsort in Zambia)

Arc Minerals have extended the exclusivity period for Anglo American by a further 180 days.

Anglo American have given notice to conduct negotiations in respect of a commercial transaction..

Arc Minerals may or may not accept any proposed deal from Anglo American.

*SP Angel acts as Nomad and broker.

 

Cornish Metals* (CVE:CUSN) – C$0.10, Mkt cap C$14m – Intention to float on AIM market

· Cornish Metals have announced their intention to float on the AIM market of the London Stock Exchange and raise £5m to fund a 8,000m drilling programme at the highly prospective United Downs Copper Tin Project.

The company is backed by Gren Thomas, a coal miner and mining engineer who discovered the Diavik diamond mine in Canada (Aber Resources) one of the world’s largest diamond mines producing over 10mcts a year.

The team at Cornish metals are drilling the new United Downes discovery in Cornwall where drilling by Cornish Lithium intersected high-grade copper and tin.

While United Downes is a new discovery, maps of historic mine workings to either side of the new discovery show substantial mining in the area.

The high-grade vein should be accessible via a decline into the Wheal Maid mine.

Processing may be done at the permitted site at the South Crofty mine site.

Drilling shows multiple zones of copper and tin mineralisation extending >750m vertically and along strike where the team have identified at least five new zones of copper and or tin mineralisation6.91m grading 0.81% copper from 622m down hole

Inc. 2.75m at 1.08% copper

14.69m grading 8.45% copper and 1.19% tin from 91m*

2.45m grading 0.90% tin from 513m depth

Inc. 0.32m grading 3.57% tin

1.60m grading 0.98% tin from 636m

4.04m grading 4.44% copper and 2.06% tin from 639m

2.94m grading 0.95% tin from 770m

Inc. 0.90m grading 3.05% tin

1.88m at 0.90% tin from 781m from 781m

Inc. 0.98m grading 1.39% tin

Please note these are drill hole intersections and not true widths

Cornish Metals hold title over the United Downes licenses within their exploration tenements with agreement that Cornish Lithium can extract lithium-bearing brines.

The mineralisation is thought to be similar to that mined at the Wheal Jane and Mount Wellington mines, both considered rich mines in their day.

The discovery of high-grade copper and tin was made by Cornish Lithium when drilling for lithium in brines.

* SP Angel acts as broker and financial advisor to Cornish Metals.

 

Greatland Gold (LON:GGP) 34.5p, Mkt Cap £1,295m – Newcrest approves A4146m for preparatory mining work at Havieron

Greatland Gold has drawn attention to the announcement issued today by Newcrest Mining, its joint-venture partner on the Havieron gold project in the Paterson region of Western Australia, that Newcrest has received “regulatory and funding approval” for Havieron.

The “Newcrest Board has approved A$146 million (~US$112 million), on a 100% basis, for the construction of the box cut, exploration decline and associated surface infrastructure at the Havieron Project in Western Australia, which it owns in joint venture with Greatland” and follows receipt of the required regulatory approvals in late December.

Further work is continuing “to progress further approvals and permits which will be required to commence development of any operating underground mine and associated infrastructure at the Havieron Project. In addition, the development of any underground mine at the Havieron Project will also be subject to further studies, Board approvals and a positive decision to mine”.

Conclusion: Funding approval by Newcrest for preparatory mining work should ensure that Havieron can be progressed smoothly as the project advances through further regulatory steps and internal approvals.

 

IronRidge Resources* (LON:IRR) 14.25p, Mkt cap £59.2m – Drilling defines multiple targets at Ewoyaa Lithium Project

IronRidge has defined multiple new pegmatite targets after completing a programme of auger drilling at its Ewoyaa Lithium project.

The company has efined a JORC (2012) compliant mineral resource estimate of 14.5Mt at 1.31% Li2O in the inferred and indicated category, including 4.5Mt at 1.39% Li2O in the indicated category in Ghana, West Africa.

Mechanised auger drilling for a total of 12,896m in 2,446 holes to an average depth of 5m has defined multiple new pegmatite targets within the project, with seven high-priority target zones defined with pegmatites up to 460m long and 30m apparent width.

All new targets occur within 500m to 1.5km of the current Ewoyaa lithium project resource footprint, and give IronRidge potential to add significant resource tonnes within the immediate project area.

Len Kolff, COO of IronRidge commented: "An extensive auger drilling programme has been completed at the Ewoyaa Lithium Project, where we have defined Ghana's first lithium resource of 14.5Mt at 1.31% Li2O in the inferred and indicated category, within 110km of an operating deep-sea port. "Auger drilling has defined seven new high-priority pegmatite targets, including outcropping spodumene pegmatite within the immediate Ewoyaa resource area.

*SP Angel acts as Nomad for IronRidge Resources

 

Kenmare Resources (LON:KMR) 399p, Mkt Cap £417m – 2020 production and 2021 guidance

Kenmare Resources reports that, following the production of 384,700t of heavy mineral concentrate (HMC) during the final quarter of 2020, total production for the year was 1.2mt, in line with 2019, and that total shipments for the year amounted to 853,100t.

Shipments declined by 17% compared to 2019 as a result of “poor sea conditions, and works to upgrade transhipment capacity”.

Ilmenite production of 756,000t during the year was 15% below the 2019 level “due to lower HMC consumption, changes in intermediate stocks and lower ilmenite recoveries in FY 2020”.

The company explains that production of all products was within revised, August 2020, production guidance and that it expects 2021 ilmenite production to increase from the 756,000t in 2020 to within the range 1.1-1.2mt, primary zircon output to rise from 43,300t to within the range 53,100 to 57,900t and rutile output to increase from 35,200t to between 37,900-41,400t.

The expected production increases reflect plans to mine higher grade ore at Pilivili following the successful relocation of the dredge and wet concentrator plant (WCP) during late 2020.

Cash costs on a per tonne of product basis are expected to fall in the range US$132-146/t in 2021.

The company says that “Higher average prices achieved for ilmenite in Q4 2020, compared to the prior quarter, with strong ilmenite pricing momentum continuing into H1 2021”.

Managing Director, Michael Carvill, explained that “Q4 2020 was a pivotal quarter for Kenmare, as we began mining the Pilivili ore zone, following the successful move of Wet Concentrator Plant B in Q3. WCP B began operating in late October and made a significant contribution to our best production quarter of 2020, benefitting from exceptionally high grades mined. It was also pleasing to see a strong quarter for shipments, with over 300,000 tonnes shipped during the period”.

Conclusion: Kenmare Resources is expecting stronger production during 2021 following the shift of operations to Pilivili late in 2020 which provides access to higher grade material.

 

Sunrise Resources (LON:SRES) 0.32p Mkt Cap £10.7m – Progress report on projects

Sunrise Resources has issued a progress report on its exploration projects in Nevada and in Western Australia.

At the CS Pozzolan-Perlite project in Nevada, extraction of a 5,000tons bulk sample has been completed and the material delivered to an existing large cement and ready-mix concrete producer for testing on its potential commercial application in concrete.

The company has also taken a 200 ton sample of perlite from the project area.

Also in Nevada, Sunrise Resources says that it has completed a soil-sampling programme at its wholly owned Sundance gold project and identified a gold-in soil anomaly for further testing in an area of anomalous “bedrock gold mineralisation in altered and quartz veined volcanics”. The company has staked nine claims in the “same area as … [the] … 1.8 million ounce past producing Denton-Rawhide Gold-Silver Mine”.

At the wholly owned Baker’s gold project in Western Australia, the company has received approval for a planned drilling programme following verification that there are no Aboriginal sites which would be affected by the work. The company plans to test 3 target areas with 5 reverse-circulation drill-holes and expects “drilling to start as soon as possible”.

Executive Chairman, Patrick Cheetham, explained that “We anticipate a high level of activity now that our CS Project is permitted for production and as we continue the exploration of our precious metals projects in Nevada and Australia”.

Mr Cheetham also said that “The assay results from drilling at our Clayton Silver-Gold Project in Nevada are now keenly awaited”.

 

Zamare Minerals* (Private) - Zamare announce agreement with First Quantum Minerals over the Ntambu exploration license in Zambia

(Zamare holds 100% of the Ntambu, Murundi and Dongwe licenses)

Zamare, a UK-based, private exploration company operating in Zambia reports the signing of a Technical Cooperation Agreement with First Quantum Minerals.

The agreement covers the Ntambu license area close to First Quantum’s Sentinel mine in Zambia which is overlain with Kalahari Sands making conventional exploration more difficult.
First Quantum are also contributing a large amount of geological data, including geophysics, geochemistry & drilling data, previously done by FQM on the licence. 

This valuable data will save Zamare years of field exploration and substantial cost in the generation of targets for further exploration.

The agreement does not encumber Zamare or the Ntambu licence..

First Quantum and Zamare have created a technical committee to discuss the exploration of the license area on a quarterly basis highlighting their commitment to the project.

Zamare has already started working on licence data which runs contiguous First Quantum’s Sentinel copper mine and Enterprise nickel project.

Other exploration: Zamare are also working on the Dongwe and Murundi deposits in Zambia:

Dongwe: Zamare are also following up on high-grade copper mineralisation in grab samples from artisanal pits on its Dongwe Licence.

The license is 30km south of Moxico’s Kalengwa mine and just south of the traditional copper belt in an area of IOCG-style, copper-gold sulphide deposits. 

Dongwe sample results:

15.8% copper, 0.57g/t gold

11.6% copper, 0.43g/t gold

Murundi: completed initial sampling close to Glencore’s Mufulira Copper mine. Zamare are analysing the results of copper anomalies seen in soil sampling which appear to confirm the potential for structurally controlled mineralisation associated with the Mokambo fault.

Conclusion: The Ntambu agreement is testament to the generosity and good will extended by First Quantum to the Zamare team. A fresh set of eyes added to new data in the region will help Zamare generate a new set of targets for further exploration. Recent work by Kavango Resources may help Zamare with seeing through the Kalahari sand where the copper belt turns south west towards Botswana.

*SP Angel act for Zamare Minerals*. The analyst holds stock in the company.

 

Analysts

John Meyer – [email protected] – 0203 470 0490

Simon Beardsmore – [email protected] – 0203 470 0484

Sergey Raevskiy –[email protected] - 0203 470 0474

Joe Rowbottom – [email protected] - 0203 470 0486

 

Sales

Richard Parlons –[email protected] - 0203 470 0472

Abigail Wayne – [email protected] - 0203 470 0534

Rob Rees – [email protected] - 0203 470 0535

Grant Barker – [email protected] – 0203 470 0471

 

 

SP Angel                                                            

Prince Frederick House

35-39 Maddox Street London

W1S 2PP

 

*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, Antimony

Asian Metal

Tungsten

Metal Bulletin

 

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