SP Angel . Morning View . Friday 28 01 22
China jails 47 steel executives for faking emissions data
MiFID II exempt information – see disclaimer below
PRIVATE FUNDING – For a Rare Earth Phosphate deposit in the US
We are raising funds for a Rare Earth Phosphate deposit with up to 28% P2O5 in the raw ore.
REE enrichment is up to 4,200ppm, of which ~25% are high value magnet metals (Nd-Pr-Dy).
Management are looking to drill in 2022 to define potential for 20mmt 36% phosphate concentrate and 26,000t of REE magnet metals.
The resource is on privately-owned rural acreage, close to existing quarrying operations and rail infrastructure.
The company is working with several US REE extraction laboratories to maximise recovery and minimise opex.
Early estimates are for a $45m capex to get to phosphate concentrate production with additional capex for a REE leaching plant.
Please let us know if you wish to take part in this funding
Antofagasta (Antofagasta PLC (LSE:ANTO)) – US kills Antofagasta’s Twin Metals nickel project in Minnesota
Aura Energy* (Aura Energy Ltd (ASX:AEE, AIM:AURA)) – Quarterly report highlights progress on Tiris development
Greatland Gold (Greatland Gold PLC (AIM:GGP, OTC:GRLGF)) – Drilling of extensions to Eastern Breccia Zone at Havieron yields best results so far outside of the SE Crescent Zone.
Phoenix Copper* (Phoenix Copper Ltd (AIM:PXC, OTCQX:PXCLF)) – Geophysical results from Navarre Creek helps provide targets for drilling later this year
Serabi Gold (AIM:SRB, TSX:SBI)* (Serabi Gold (AIM:SRB, TSX:SBI)) – Serra Zone veins intersected in underground development at Coringa
Sunstone Metals (Sunstone Metals Ltd (ASX:STM)) – Quarterly update for Ecuador Cu-Au projects
IGTV: IG Outlook 2022, China new year, winter Olympics may see metals prices soften: (12/01/2022): https://youtu.be/vNqDh74zW5I
VOX Markets: 12/01/22: https://audioboom.com/posts/8011559-john-meyer-on-china-s-factory-shut-downs-plus-news-from-bluejay-beowulf-atlantic-lithium
interactive Investors: FTSE 100 favourite stock: https://youtu.be/BomNRQJt-YA. 2022 outlook: https://youtu.be/SxMPiPEc_Rg
Three small-cap mining share tips for 2022: https://www.youtube.com/watch?v=9xvA_3UXXYQ&ab_channel=interactiveinvestor
*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, 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.
China jails 47 steel executives for faking emissions data
China has jailed 47 steel company officials for faking air pollution data as Beijing’s crackdown on firms flouting emissions rules intensifies.
The officials who worked at four mills in Tangshan city near Beijing, China’s top steelmaking hub, were given prison sentences from six to eighteen months.
The companies interfered with monitoring devices to allow the release of large quantities of pollutants in March 2021.
Two of the companies, Tangshan Songting and Hebei Xinda, were also fined 4m to 7m yuan ($628k - $1.1m).
The move shows how the Chinese authorities are cracking down on non-compliance on emissions – at long last
We hope China is also crack down on non-compliance in many other areas such as vanadium content in structural steels
Gold price fall as dollar and bond yields strengthen
The market is now pricing in five interest rate hikes which have strengthened both Treasury bond yields and the dollar.
The dollar index is at its highest since July 2020.
Two-year Treasury yields are at their highest since Feb. 2020. The benchmark 10-year Treasury yields are nearing 2- year highs at 1.825%.
Renewed talks between Russia and Ukraine offer cause for optimism
Talks of reimplementing the Minsk-2 agreement, which gives Russia a more dominant influence over Ukrainian affairs, raises the possibility of a cool-off in rising tensions.
France and Germany have both suggested a renewal of the agreement may be the best current option to avoid major conflict.
Macron is set to meet Putin today.
Discussions between Russian and Ukrainian officials also suggest positive developments.
US negotiators set out diplomatic path to address Russian concerns over NATO expansion and western encroachment on its eastern borders.
The Ukraine joined NATO's enhanced opportunity partner interoperability program on 12 June 2020.
The new status does not prejudge any decisions on the Ukraine joining NATO.
Copper slides on strong dollar and rising inventories
London copper fell 0.5% to $9,734/t, as it continues to weaken from recent highs of $10,050/t.
Shanghai copper stocks jumped 15% this week, adding downward pressure on the metal’s price.
LME copper stocks fell slightly to 91,350t.
The dollar’s 18-month high has also provided a headwind to copper prices.
Shipping industry braces for further container disruptions on Winter Olympics and Lunar New Year disruptions
The shipping industry is expecting additional supply chain disruptions as the Lunar New Year holiday from Jan. 31st to Feb. 6th will result in delayed transit times and fewer containers. (ContainerxChange survey)
The holiday adds to labour disruptions caused by China’s zero-covid policy.
Transit time from Chinese ports to the US is currently 44 days from pre-pandemic averages of 16 days.
Power cuts induced by pollution controls for the Winter Olympics are also expected to hit manufacturing production schedules, further compounding inflationary pressures on Chinese-made goods.
Dow Jones Industrials -0.02% at 34,161
Nikkei 225 +2.09% at 26,717
HK Hang Seng -1.05% at 23,557
Shanghai Composite -0.97% at 3,361
Economics
IMF calls on China to step up fiscal spending to support the economy amid coronavirus restrictions and a property sector downturn.
Recommendations came after the fund cut its 2022 growth forecast for China by 0.8pp to 4.8%.
The fund argued the government should spend the money on social services instead of infrastructure investment that would promote the rebalancing of the economy toward consumption and the services sector.
Earlier, the IMF cut projected global growth rates to 4.4% in 2022, down from 4.9% estimated in October, on downward revisions to growth in the US and China.
US – Economic growth outperformed in the final quarter helped by businesses restocking (4.9pp contribution to the headline quarterly growth rate).
The momentum slowed by December amid a surge in new infections from the Omicron variant that disrupted consumer spending as well as activity at factories and services businesses.
Although, latest Markit PMI reports showed that the overall rate of supply chain deterioration was not as bad as seen previously helping to lift manufacturing optimism while demand is expected to pick up again once restrictions are lifted.
Annual 2021 growth came in at 5.7%, the strongest since 1984, as the government provided nearly $6tn in pandemic relief, recovering from a 3.4% drop in 2020.
GDP (%qoq, annualised): 6.9 v 2.3 in Q3/21 and 5.5 est.
Core PCE (%qoq, annualised): 4.9 v 4.6 in Q3/21 and 4.9 est.
FED makes no change to US interest rates yesterday as expected.
Strong hint for rate rise from the FOMC meeting on 15/16th Mch
Fed may to let its bond holdings run off as they mature with decision likely made in march as to when the run-off should begin.
One commentator said: “Not rolling over the debt has the effect of pulling the plug while relaxing in a bath of pleasantly warm water.
At first, there seems to be no change then slowly as the water ebbs away you become very cold.”
Question is, what will the world feel like when the US economy / consumer runs cold?
Let’s hope the US economy is going fast enough to offset the impact of the Fed ‘going cold’.
China - Wave of profit warnings from Chinese home builders and suppliers highlights impact of debt crisis
Decorators, construction companies, furniture makers etc. are issuing stark profit warnings and writing off assets as China’s property sector continues to feel the pressure from Beijing’s debt crackdown.
Lighting fixture maker Guangdong Pak forecasts an 85-90% drop in earnings for 2021.
Analysts expect further financial pressures for companies tied to China’s construction sector in the coming year.
Beijing has released a list of developer firms ‘consistently overdue’ on commercial paper payments, which rose by 26% in December month on month.
Europe - The US working on plant to supply natural gas to Europe in case Russia turns the taps off.
The UK is already receiving tankers of LNG into suitable ports.
Germany – The nation reported a drop in GDP in the final quarter of 0.7%qoq, underperforming estimates for a 0.3% decline, on a drop in consumer spending amid new Covid-19 restrictions and supply chain bottlenecks.
That contrasts with growth numbers that beat estimates reported in France (+0.7%qoq) and Spain (2.0%qoq) this morning.
The economy expanded 2.8% last year, although, still remained 1.5% smaller than before the pandemic.
France – The economy recovered all lost ground to a Covid related drop reporting a 7%yoy increase in GDP in 2021.
The economy returned to its pre-pandemic level of GDP in Q3/21 helped by a recovery in consumer spending as well as lower exposure to supply chain bottlenecks that hit manufacturing in Germany, FT writes.
The economy contracted 8% in 2020.
Spain – The economy grows 5%yoy in 2021 bouncing back from a 10.8% decline the previous year helped by lifted restrictions amid high Covid-19 vaccination rates.
Nevertheless, the size of the economy remained 4% below the pre pandemic period in Q4/19.
Portugal – People will be casting their votes in a snap general election this Sunday.
Opinion polls suggest neither the leading Socialists nor Social Democratic Party can win a majority and a coalition government is a more likely scenario, Reuters reports.
Parliament is expected to become more fragmented and polarised that may challenge efforts for a workable post-election alliance.
The ballot was called November, two years into the Socialist Antonio Costa government’s second term, after hard-left partners (Left Bloc and Communists) joined the parliamentary right to vote down the 2022 budget bill.
The Socialists poll at 34%-40%, and party insiders project they could win 112-113 seats in the 230-seat house, up from 108 in the 2019 election but short of a majority.
The PSD polls at 29-34% and has even overtaken the Socialists in at least one survey.
India – Gold imports accelerated to highest level in a decade on strong jewellery sales
Gold demand in the world’s second largest bullion market jumped 79% to 797 tons last year, as pent-up demand and an improvement in consumer confidence are seen boosting retail jewellery sales, according to the World Gold Council.
Q4 consumption nearly doubled from a year ago to a record 344t amid robust retail sales during the festival season.
The WGC expects consumption to be 800/850 tonnes in 2022
Currencies
US$1.1131/eur vs 1.1205/eur yesterday. Yen 115.65/$ vs 114.82/$. SAr 15.477/$ vs 15.341/$. $1.338/gbp vs $1.342/gbp. 0.702/aud vs 0.707/aud. CNY 6.364/$ vs 6.363/$.
Commodity News
Precious metals:
Gold US$1,794/oz vs US$1,810/oz yesterday
Gold ETFs 99.1moz vs US$99.1moz yesterday
Platinum US$1,020/oz vs US$1,024/oz yesterday
Palladium US$2,314/oz vs US$2,324/oz yesterday
Silver US$22.63/oz vs US$23.13/oz yesterday
Rhodium US$16,800/oz vs US$16,800/oz yesterday
Base metals:
Copper US$ 9,687/t vs US$9,788/t yesterday
Aluminium US$ 3,122/t vs US$3,111/t yesterday
Nickel US$ 22,375/t vs US$22,525/t yesterday
Zinc US$ 3,634/t vs US$3,605/t yesterday
Lead US$ 2,299/t vs US$2,329/t yesterday
Tin US$ 42,080/t vs US$42,570/t yesterday
Energy:
Oil US$90.2/bbl vs US$89.5/bbl yesterday
Natural Gas US$4.435/mmbtu vs US$4.401/mmbtu yesterday
Uranium UXC US$45.05/lb vs $45.05/lb yesterday
Bulk:
Iron ore 62% Fe spot (cfr Tianjin) US$137.9/t vs US$137.5/t
Chinese steel rebar 25mm US$750.9/t vs US$751.1/t
Thermal coal (1st year forward cif ARA) US$117.0/t vs US$117.0/t
Thermal coal swap Australia FOB US$228.0/t vs US$233.0/t - Coal prices continue to rally on Indonesia and Ukraine supply disruptions
Newcastle coal index up 35% this month to $262/t, nearing record highs.
European buyers have been stocking up on coal in anticipation of a potential cut off of natural gas supplies from Russia.
Russia provides Europe with 35% of the continent’s natural gas, with supplies already tight following last summer’s shortage.
Prices had already been rallying following an export ban from major producer Indonesia on Jan 1st.
Coking coal swap Australia FOB US$439.0/t vs US$437.0/t
Other:
Cobalt LME 3m US$71,000/t vs US$71,000/t
NdPr Rare Earth Oxide (China) US$150,063/t vs US$150,086/t
Lithium carbonate 99% (China) US$56,961/t vs US$55,398/t
China Spodumene Li2O 5%min CIF US$2,710/t vs US$2,710/t
Ferro-Manganese European Mn78% min US$1,775/t vs US$1,787/t
China Tungsten APT 88.5% FOB US$320/t vs US$320/t
China Graphite Flake -194 FOB US$805/t vs US$805/t
Europe Vanadium Pentoxide 98% 9.7/lb vs US$9.7/lb
Europe Ferro-Vanadium 80% 39.25/kg vs US$39.25/kg
China Ilmenite Concentrate TiO2 US$390/t vs US$391/t
Spot CO2 Emissions EUA Price US$98.3/t vs US$93.8/t
Brazil Potash CFR Granular Spot US$810/t vs US$810/t
Battery News
Brazil takes big step towards offshore wind
The Government of Brazil has issued a Decree which enables the identification and assignment of physical spaces and national resources for the development of offshore wind projects.
Brazil’s Ministry of Mines and Energy will oversee carrying out the necessary studies and selection of suitable offshore wind zones
The Global Wind Energy Council (GWEC) has welcomed the Decree for the development of Brazil’s promising offshore wind sector.
"Brazil has virtually unlimited offshore wind resources and wind energy companies have already presented applications for licensing for 40GW of offshore wind projects in Brazil, representing a unique opportunity to meet growing power demand, develop green hydrogen projects and create vast amounts of investment and skilled jobs,” said GWEC CEO, Ben Backwell.
Britishvolt to develop batteries for Lotus electric sports car
Britishvolt has announced it will develop batteries for a fully electric sports car in partnership with British carmaker Lotus - the first publicly announced customer for the battery start-up.
Britishvolt said the research and development that will go into developing battery cells for a high-performance sports car for Lotus will ultimately benefit battery cells for more affordable, mainstream EVs.
Lotus, which is owned by China's Geely and Malaysia's Etika Automotive, has said it hopes to sell only fully electric models by 2028 - The carmaker will also expand its range to include high-end electric saloons and sports-utility vehicles.
"Lotus is delighted to be collaborating with Britishvolt to develop new battery cell technology to showcase the thrilling performance that a Lotus EV sports car can deliver," Lotus managing director Matt Windle said in a statement.
Last week Britishvolt secured UK government backing, believed to be around £100m for its Blyth gigafactory, also receiving £1.7bn in private funding from logistics real estate investor Tritax and investment firm abrdn plc.
When the £3.8bn gigafactory is fully operational in 2027 it should be able to produce 45GWh of battery capacity, enough battery packs for over 450,000 EVs annually.
Sweden’s SSAB plans $4.8bn investment to slash emissions
Steelmaker SSAB plans to transform its Nordic strip production in order to cut emissions faster than previously forecast.
SSAB will invest 45bn kronor by 2030 to transform its Lulea and Raahe mills in Sweden and Finland to ‘cost-effective mini-mills’ with electric arc furnaces and rolling mills.
The move will “eliminate the need to invest in existing systems with blast furnaces, steel plants and rolling mills,” according to the company.
SSAB is Sweden’s biggest single corporate emitter of carbon-dioxide and a reduction is key for the country to reach its net zero target by 2045.
The investment is set to cut 10% of Sweden’s total carbon-dioxide emissions, and 7% of Finland’s, corresponding to an emission reduction of more than 8 million tonnes of carbon dioxide a year
Company News
Antofagasta (ANTO 1,373.5p, Mkt cap £13.58bn – US kills Antofagasta’s Twin Metals nickel project in Minnesota
We are sorry to see the news that the US has finally and officially killed off Antofagasta’s Twin Metal project in Minnesota, USA.
We remember when Antofagasta first acquired the project and Antofagasta’s geological team which did a brilliant job of discovering and defining the economic nickel resource.
We were covering Polymet Mining at the time which was also struggling with permitting issues in Minnesota.
Our concern caused me to write to the board of Antofagasta warning the directors of the difficulty / virtual impossibility of permitting a nickel sulphide project in the area.
The Twin Metals project is located in the ‘watershed’ of the ‘Boundary Waters’ in Minnesota and it seemed apparent at the time that permitting in this area would meet ‘extreme’ environmental opposition.
The directors of Antofagasta did not take well to our comments and ignored our advice. Am sorry to say we were right on this one!
Antofagasta sunk some US$220m into the venture and then spent around another $85m on acquiring Duluth Metals to consolidate its ownership in the project.
While this is small beer when compared with the billions earned by the company’s Chilean copper mines we feel the episode serves to show that just maybe its worth listening to analysts who have their ears to the ground and take the time to understand the local environmental and social issues.
The situation goes to underline that good ESG equals better decisions at board level.
Aura Energy* (Aura Energy Ltd (ASX:AEE, AIM:AURA)) 16p, Mkt Cap £65.5m – Quarterly report highlights progress on Tiris development
Aura Energy’s quarterly report for the three months to 31st December 2021 describes progress on advancing the Tiris uranium project towards production under the guidance of a newly restructured board under the chairmanship of former Rio Tinto executive, Phil Mitchell and the recently appointment of a long serving employee and the company’s principal metallurgist since 2018, Dr. Will Goddard, as acting CEO in a non-board capacity.
The company highlights the October 2021 agreement of a US$10m offtake financing agreement with Curzon “with up to US$20m available and funds to be used for mining working capital and commencement of production” with “original production at approximately 1 million pounds of U3O8 pa” as well as the completion of water drilling which confirmed strong flow rates and located sufficient water “in the Oued el Foule Depression at the Project … [so that] … production can be expedited with capital expenditure and operating costs likely to remain low in comparison to peer uranium projects”.
The company also comments on the redeployment of former Managing Director, Peter Reeve, to the gold subsidiary, Archean Greenstone Gold where he will spearhead the exploration of the Tasiast South gold project which is located 30km south of Kinross Gold’s Tasiast South mine.
Dr. Goddard confirmed that further exploration of the gold project is expected during 2022.
Conclusion: Aura Energy has established the groundwork to advance the Tiris uranium project in Mauritania towards production with adequate water supplies and an offtake financing agreement delivered during the December quarter. Yesterday’s announcement of its plans to achieve zero emissions at the Tiris uranium project positions the company to supply the expanding global demand for uranium to generate low emission nuclear power.
*SP Angel acts as Nomad and Broker to Aura Energy
Greatland Gold (Greatland Gold PLC (AIM:GGP, OTC:GRLGF)) 13.85p, Mkt Cap £554m – Drilling of extensions to Eastern Breccia Zone at Havieron yields best results so far outside of the SE Crescent Zone.
Greatland Gold reports that drilling of extensions to the Eastern Breccia Zone at Havieron 200m to the south-east of previous drilling has yielded what it describes as the “Most significant result seen outside of the South East Crescent Zone to date”.
Results “indicate the potential for the Eastern Breccia to comprise a separate North West trending mineralised corridor” associated with “an alteration footprint of approximately 600m in strike” and the potential for higher grade zones within the mineralised envelope as have been identified within the Crescent Zone.
The company highlights the result of hole HAD104 which intersected 62.5m at an average grade of 5.9g/t gold and 0.30% copper from a depth of 1,546.5m and includes 49.4m averaging 7.1g/t gold and 0.38% copper from 1,554.6m.
Further drilling of the Eastern Breccia Zone is “focused on defining the extents of this higher-grade mineralisation which remains open in all directions”.
Commenting on the results from the Eastern Breccia drilling, CEO, Shaun Day, said that the “results at the Eastern Breccia, several hundred meters away from the South East Crescent zone where most of the drilling activity has occurred to date, confirm the potential for a new zone of high grade mineralisation. The Eastern Breccia is now interpreted as a separate north west trending corridor with an alteration footprint of approximately 600m in strike, with Crescent zone like higher grades inside the Eastern Breccia.”
As well as the extensions to the Eastern Breccia, exploration drilling to expand the resource at depth beneath the South East Crescent Zone is continuing with “depth extents of the South East Crescent Zone which … [has now been identified over] … a vertical extent of over 900m”.
Results from the South East Crescent Zone include:
An intersection of 46.4m at an average grade of 11g/t gold and 0.26% copper from a depth of 1.400.6m in infill hole HAD85W4 which includes 3.9m at an average grade of 98g/t gold and 0.04% copper from 1,402.1m; and
An intersection of 168.1m at an average grade of 1.9g/t gold and 0.17% copper from a depth of 1,424.6m in a hole drilled to expand the resource, HAD133W6.
Greatland Gold also confirms that it is also starting to drill geophysical magnetic anomaly targets at Havieron North, 2km north of Havieron, and at the Zipa target.
“The initial Havieron North drillhole did intercept alteration consistent with that seen at Havieron, however did not return a significant result. Assays are pending for the two completed Zipa drillholes”.
Eight rigs are now operating at Havieron focussed on expanding the resource which in late 2020 amounted to an initial inferred resource estimate of 52mt at an average grade of 2.0g/t gold (3.4moz) and 0.31% copper with 18mt at an average grade of 3.8g/t gold (2.2m0z) and 0.61% copper within the Crescent Zone plus an additional 34mt at an average grade of 1.1g/t gold (1.2moz) and 0.15% copper in the adjacent Breccia Zone.
The exploration decline has now advanced 277m and “experienced poor ground conditions during the quarter, although ground conditions are expected to improve with depth”.
Work on the feasibility study by Greatland Gold’s partner, Newcrest Mining, is progressing and is expected “to be delivered in the December 2022 quarter”.
Conclusion: The identification of an additional mineralised corridor at Havieron’s Eastern Breccia zone has provided what the company describes as the best results seen so far outside the South East Crescent Zone. Eight rigs are deployed with a focus on resource expansion with the feasibility study scheduled for the final quarter of 2022.
Phoenix Copper* (Phoenix Copper Ltd (AIM:PXC, OTCQX:PXCLF)) 46p, Mkt Cap £53m – Geophysical results from Navarre Creek helps provide targets for drilling later this year
(Phoenix holds 80% of the Empire mining property in Idaho)
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Phoenix Copper has reported results of its ground magnetic survey and airborne hyperspectral mineral survey at its Navarre Creek project in Idaho.
The survey has identified intrusive bodies exhibiting a strong magnetic response as well as “A northeast trending, approximately 2.3-mile-long by 1-mile-wide corridor of hydrothermal alteration … consistent with the gold and silver bearing Carlin-style epithermal deposits”.
“The Navarre Creek claim block now covers 3,577 acres (14.48 km²), representing over six kilometres of prospective strike length, including an area of secondary alteration thought to be epithermal in nature” and over 2-5km of highly prospective brecciated ground in an environment favourable for mineralisation.
Chief Executive, Ryan McDermott, commented that “The geophysical results coincide well with the previous mapping and sampling conducted by the Phoenix team, as well as with the findings of the Idaho Geological Survey … [which has] …reported … [that] …Hydrothermal solutions that formed the jasperoids may also have formed large low-grade precious metal deposits”.
He also said that “We believe the Navarre Creek area to be quite remarkable, with the combination of iron-rich faults and gossans, jasperoid bodies, and favourable surface geochemistry all supported by the results of the latest geophysical surveys”.
Mr McDermott confirmed that Phoenix Copper plans to drill at Navarre Creek during 2022 and that “In addition to the evaluation of these latest Navarre Creek results, we continue to focus our efforts on the Empire Open-Pit copper oxide feasibility study, scheduled for completion in Q2 of this year, and with the ongoing permitting of the Empire copper-oxide open pit”.
Conclusion: Phoenix Copper has, in the past, consistently highlighted the geological similarities between Navarre Creek and the Nevada deposits of the Carlin trend and the geophysical results help to build a body of evidence supporting this thesis. We look forward to the continuing exploration and drilling results from Navarre Creek later in the year
*SP Angel acts as nomad to Phoenix Copper
Serabi Gold* (Serabi Gold (AIM:SRB, TSX:SBI)) 55.5p, Mkt Cap £41.3m – Serra Zone veins intersected in underground development at Coringa
Serabi Gold reports that underground development work at Coringa has reached the first of three veins within the Serra Zone.
Samples of the mineralisation from the sub-vertical vein show an average of 2.94g/t gold over a width of 3.63m including 12.44g/t over 0.86 metres.
CEO, Mike Hodgson, said that although there are over 50,000m of drilling results from Coringa “this is the first exposure of the mineralisation by underground excavation”.
The underground development intersected this vein at around 50m vertically from the surface entrance of the underground development and Serabi Gold says that the “underground development will be continued on this level to expose the other veins of the Serra ore body and will be followed up by on-lode development to gain further underground exposure as well as to extract a significant bulk sample for further testing”.
The company explains that “This initial area of the vein, will form the ramp pillar and was not expected to deliver the same grade and widths as other parts of the vein. This initial intercept is therefore highly encouraging”.
As well as reporting the underground results from Coringa, Serabi Gold confirms that the “process plant is already at the Coringa site and ready for installation following completion of the detailed engineering and award of the Installation License (“LI”) which is expected imminently”.
Mr. Hodgson also explained that the Coringa mineralisation appears to be “amenable to ore-sorting and this would bring the prospect of reducing process costs and diminishing tailings required for filtration, a huge plus for the project”.
Conclusion: Encountering ore grade mineralisation in underground development is a milestone for Serabi Gold’s Coringa project and we look forward to further news as the underground development and plant construction proceed. The addition of Coringa to existing production from Palito and Sao Chico is a key component of Serabi Gold’s strategy to become a 100,000ozpa gold producer
*An SP Angel analyst has visited Serabi’s gold mining operations in Brazil
Sunstone Metals (Sunstone Metals Ltd (ASX:STM)) A$0.076, Mkt cap A$168m – Quarterly update for Ecuador Cu-Au projects
Sunstone Metals provides a quarterly update to December 31st 2021 for its copper-gold projects in Ecuador.
El Palmar porphyry Project: Eight drillholes were completed in the period which gave insight into the of a gold-copper mineralised porphyry from surface.
Assay results have been received for the first three holes, including:
163.55m at 0.71g/t gold and 0.20% copper from 52.35m in EPDD001; Within 480.85m at 0.41g/t gold and 0.15% copper from 11.3m
167.50m at 0.58g/t gold and 0.26% copper from 250m in EPDD002
105.09m at 0.75g/t gold and 0.20% copper from 32m in EPDD003; Within 259.56m at 0.41g/t gold and 0.14% copper from 10.4m
Assay results show grades and widths of gold and copper porphyry mineralisation in five holes (EPDD001-EPDD003, and historic holes CED01 and 02) across a 300m long zone, which remains open.
Sunstone has mobilised a second rig to test the depth extent of the deposit.
Two highly promising satellite targets, located adjacent to the main El Palmar magnetic complex, have been identified by strong soil sampling results.
Bramaderos: Drill assay results continue to confirm the presence of Au-Cu mineralisation.
Four drillholes were completed during the quarter, including:
9.2m at 7.68g/t gold from 106.8m, within 111m at 2.35g/t gold from 93m
Drilling is ongoing at Alba and an electrical geophysical survey over the Limon and Alba targets will commence in early 2022, and a detailed 3D model has been completed.
At the end of the period, Sunstone had A$9.5m in cash.
No.1 in Copper: “The winner of the 2020 Fastmarkets Apex contest for copper was the team at SP Angel comprising John Meyer, Sergey Raevskiy and Simon Beardsmore, with an accuracy score of 93.8%”
No1. In Gold: “SP Angel’s trio took the top spot for the gold price prediction throughout the year, with an accuracy score of 97.59%”
The SP Angel team also ranked 1st in Palladium, 3rd in Tin and 5th in Silver in the fourth quarter of 2020
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
Rob Rees – Rob.Rees@spangel.co.uk - 0203 470 0535
Grant Barker – Grant.Barker@spangel.co.uk – 0203 470 0471
SP Angel
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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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