SP Angel . Morning View . Wednesday 13 04 22
Gold at four week high as investors assess outlook for Fed rate hikes
MiFID II exempt information – see disclaimer below
Anglo American PLC (LSE:AAL) – De Beers reports growing demand for its rough diamonds ahead of the usual slower Q2 period
Amur Minerals Corporation (AIM:AMC, OTC:AMMCF)* – Sanctions update
Aston Bay Holdings* (CVE: BAY) – Ore-sorting provides potential for direct shipping copper ore from the Storm project, Nunavut
Atalaya Mining (AIM:ATYM, TSX:AYM) – Mineral resource estimates for San Dionisio and San Antonio deposits
BeMetals Corp (TSX-V:BMET) – Drilling commences at Kato, Japan
Bluerock Diamonds PLC (AIM:BRD)* – Q1 production increases despite the weather
Keras Resources PLC (AIM:KRS)* – Diamond Creek receives regulatory approval ahead of Spring marketing programme
SolGold PLC (LSE:SOLG, TSX:SOLG, OTC:SLGGF)* – Latest TAM drilling extends potential open-pit and underground mining opportunities
Graphene / high-grade graphite purification – private financing opportunity
- We are inviting investors to finance a private company which produces high-grade graphite and graphene from low grade graphitic material. The company also sells:
- Paints: The company already sells a range of graphene paint products and is working on concrete modifiers.
- Concrete modifier: developing distribution network.
- Li-ion battery anodes: project in development in Warwick
- Machinery uses cavitation waves mixture of water and graphite making the process environmentally friendly along with no detrimental grinding impact on graphite particles.
*SP Angel’s role is limited to making introductions and interested parties should be aware that investment in a private company can present certain risks not present in listed companies (e.g. limited or no liquidity and no rules compelling disclosure of information to investors). This offer is open to professional investors only and is not offered to retail investors.
China rare earth exports rise in Q1, though future supply outlook is uncertain
- China rare earth exports in the first quarter of 2022 rose 6.5% YoY to 12,680t, according to customs data.
- The value of China’s Q1 REE exports in dollar-denominated terms was $244m, a 78% jump on the year prior.
- Exports were 10.9% higher YoY in the first two months of the year, indicating a slowdown in March due to supply issues which many become more prevalent in the coming months.
- Major border gates between China and Myanmar which accounts for about half of China's rare-earth mineral supply - have been shut down again since the beginning of the year.
- EV and Wind turbine manufacturers will be monitoring this situation closely, given China’s dominance in supply of neodymium and praseodymium (NdPr).
- Production at both the mining and refining stages is controlled by quotas assigned to six state-owned enterprises, although illegal production of NdPr in Asia does occur in addition to this.
- The exponential rise of EV sales and offshore wind development is vastly increasing demand for NdFeB magnets, with demand for such magnets driven almost exclusively by traction motors and generators to date.
- Wind turbines consume 600-830kg of REO per Megawatt, while each new EV requires between 1-2kg of NdPr.
- The result of China’s dominance in supply and its ability to restrict supply through its quota system means countries and manufacturers are desperately looking outside of China’s borders for REE supply.
- Mkango Resources* is currently progressing its feasibility study for the Songwe Hill Rare Earths project in Malawi, along with its Pulawy Separation plant in Poland, which is targeting 2,000tpa of high value NdPr oxides along with 50tpa Dy and Tb oxides.
- Mkango has successfully produced neodymium and praseodymium enriched rare earth carbonate from the final stages of hydrometallurgical piloting – a key milestone for the company.
- REE recycling is also a strategy for Mkango, who are currently collaborating with various UK institutions such as the University of Birmingham and Jaguar Land Rover with the aim of establishing a recycled source of permanent magnets in the UK.
- Rainbow Rare Earths* is advancing its Phalaborwa REE tailings project in South Africa and its Gakara project in Burundi.
- Rainbow’s management are currently focused on testing and refining the flowsheet for the Phalaborwa project for the extraction of three rare earth oxide streams, NdPr, Tb and Dy.
*SP Angel acts as Nomad and Broker to Mkango Resources
*SP Angel acts as financial advisor and broker to Rainbow Rare Earths
Dow Jones Industrials -0.26% at 34,220
Nikkei 225 +1.93% at 26,843
HK Hang Seng +0.40% at 21,404
Shanghai Composite -0.67% at 3,192
Economics
US – Equity markets posted further losses on Tuesday on the back of high March inflation numbers reinforcing outlook for more rate hikes in coming months.
- Headline CPI measure climbed 8.5%yoy, slightly ahead of expectations, with gasoline prices driving half of the monthly increase.
- Food was also a significant contributor.
- 10y Treasury yields resumed gains after a pull back recorded on Tuesday.
- CPI (%yoy): 8.5 v 7.9 in February and 8.4 est.
- Core CPI (%yoy): 6.5 v 6.4 in February and 6.6 est.
UK – Inflation climbed to 7%, a new 30-year high, in March adding to pressures on the central bank to continue normalising the monetary policy.
- Prices are set to surge further this month when a 54% increase in energy costs hit households, Bloomberg reports.
- March marked the sixth consecutive month that inflation exceeded economists’ estimates and is the last one before the BOE’s next meeting.
- 10y sovereign bond yields are up 7bp this morning trading around 1.9%, the highest level since mid-2010s.
- CPI (%yoy): 7.0 v 6.2 in February and 6.7 est.
- Core CPI (%yoy): 5.7 v 5.2 in February and 5.3 est.
China – Exports growth slowed to 14.7% in March from 16.3% recorded in the first two months while imports dropped as Covid-related restrictions starts to weigh on growth.
- Port congestion and logistical bottlenecks worsened in March, impacting both inbound and outbound shipping traffic.
- Exports (%yoy, US$): 14.7 v 6.2 in February and 12.8 est.
- Imports (%yoy, US$): -0.1 v 10.4 in February and 8.4 est.
China exports to Russia slump following invasion of Ukraine
- Chinese exports have slumped despite both nations declaring their friendship had no limits, indicating Chinese companies are likely being cautious about trading with Russia.
- China firms sold $3.8bn worth of goods to Russia in March, down 7.7% compared to a year earlier.
- Imports from Russia rose 26.4% from a year ago, pushed higher by rising commodity prices.
Currencies
US$1.0818/eur vs 1.0860/eur yesterday. Yen 126.22/$ vs 125.59/$. SAr 14.480/$ vs 14.557/$. $1.298/gbp vs $1.301/gbp. 0.743/aud vs 0.743/aud. CNY 6.367/$ vs 6.368/$.
Commodity News
Zinc prices rally as depleting inventories mean traders fear another short squeeze
- Zinc prices are currently hovering at levels last seen since 2006, amid plunging inventories and lower refining due to surging power prices.
- Zinc holdings in LME-tracked warehouses have fallen from ~300,000t this time last year to ~120,000t at current levels.
- While this looks a fairly healthy number to deal with short-term supply issues, the amount of zinc available for the physical reconciliation of contracts, known as on-warrant holdings, has slumped to 45,925t.
- Traders are currently shipping the metal to Europe, where smelting capacity has been cut amid record energy prices.
- Zinc rose as much as 3.3% earlier this morning to $4,477/t.
Precious metals:
Gold US$1,966/oz vs US$1,957/oz yesterday
Gold ETFs 106.2moz vs US$106.1moz yesterday
Platinum US$9777/oz vs US$982/oz yesterday
Palladium US$2,394/oz vs US$2,437/oz yesterday
Silver US$25.42/oz vs US$25.18/oz yesterday
Rhodium US$19,200/oz vs US$19,200/oz yesterday
Base metals:
Copper US$ 10,337/t vs US$10,221/t yesterday
Aluminium US$ 3,268/t vs US$3,274/t yesterday
Nickel US$ 32,550/t vs US$33,290/t yesterday
Zinc US$ 4,478/t vs US$4,313/t yesterday
Lead US$ 2,422/t vs US$2,394/t yesterday
Tin US$ 42,900/t vs US$43,400/t yesterday
Energy:
Oil US$104.5/bbl vs US$101.2/bbl yesterday
Natural Gas US$6.721/mmbtu vs US$6.789/mmbtu yesterday
Uranium UXC US$64.50/lb vs $63.70/lb yesterday
Bulk:
Iron ore 62% Fe spot (cfr Tianjin) US$154.5/t vs US$152.5/t
Chinese steel rebar 25mm US$797.6/t vs US$793.6/t
Thermal coal (1st year forward cif ARA) US$236.0/t vs US$230.0/t
Thermal coal swap Australia FOB US$317.3/t vs US$297.0/t
Coking coal swap Australia FOB US$470.0/t vs US$415.0/t
Other:
Cobalt LME 3m US$82,000/t vs US$82,000/t
NdPr Rare Earth Oxide (China) US$132,329/t vs US$135,827/t
Lithium carbonate 99% (China) US$71,073/t vs US$71,054/t
China Spodumene Li2O 5%min CIF US$2,870/t vs US$2,840/t
Ferro-Manganese European Mn78%$2,147/t vs US$2,156/t
China Tungsten APT 88.5% FOB US$343/t vs US$343/t
China Graphite Flake -194 FOB US$825/t vs US$825/t
Europe Vanadium Pentoxide 98% 11.6/lb vs US$11.7/lb
Europe Ferro-Vanadium 80% 55.25/kg vs US$55.75/kg
China Ilmenite Concentrate TiO2 US$398/t vs US$398/t
Spot CO2 Emissions EUA Price US$84.8/t vs US$85.1/t
Brazil Potash CFR Granular Spot US$1,250/t vs US$1,250/t
Battery News
GM signs cobalt deal with Glencore to secure battery material supply chain
- General Motors have signed a ‘multi-year’ deal with Glencore, for the supply of cobalt from the Murrin Murrin mining operation in Australia.
- The cobalt will be use in GM's Ultium battery cathodes, which currently powers the Chevrolet Silverado EV, GMC Hummer EV and Cadillac Lyriq vehicles, the companies said in a joint statement.
- Metals to make batteries that last longer have become increasingly costly and hard to come by due to supply chain disruptions, which has led to automakers rushing to secure supplies of lithium, nickel and cobalt.
- Last year GM announced that they would invest in a US lithium project, CTR’s Hell’s Kitchen geothermal brine project that could become the largest in the country by 2024.
Company News
Amur Minerals Corporation (AIM:AMC, OTC:AMMCF)* 1.6p, Mkt Cap £22m – Sanctions update
- The Company reiterated that no individual or counterparty it is dealing with at the moment are sanctioned.
- Its legal advisor, Bryan Cave Leighton Paisner, is suspending its operations in Russia and the Company started a search for a replacement.
- The Company transferred enough cash for its subsidiary, AO Kun Manie, to cover budget costs through H1/22 as a precautionary measure to avoid any interruptions to its operations; this compares to a 30-45 day period typically covered by AO Kun Manie funds.
*SP Angel act as Nomad and Broker to Amur Minerals
Anglo American PLC (LSE:AAL) 4,118p, Mkt Cap £54.8bn – De Beers reports growing demand for its rough diamonds ahead of the usual slower Q2 period
- Anglo American has reported that the third De Beers sales cycle of 2022 realised US$565m on a provisional basis and that the previously reported sales for the second sales cycle of 2022 have now been confirmed as US$652m.
- The latest provisional sales figures are US$115m ahead of the US$450m reported for the equivalent third sales cycle of 2021 and bring sales so far in 2022 to approximately US$1.9bn.
- Commenting on the sales figures De Beers Chief Executive, Bruce Cleaver, explained that the result reflected “continued year-on-year growth in consumer demand for diamond jewellery, demand for De Beers Group rough diamonds remained strong in the third sales cycle of 2022”.
- He also said that “As we head into the seasonally slower second quarter of the year, diamond businesses are adopting a more cautious and watchful approach in light of the war in Ukraine and associated sanctions, as well as Covid-19 lockdowns in China.”
Aston Bay Holdings* (CVE:BAY) $0.045, Mkt cap C$8.0m – Ore-sorting provides potential for direct shipping copper ore from the Storm project, Nunavut
- Aston Bay Holdings reports that ore-sorting tests conducted by its exploration and earn-in partner at the Storm project in Nunavut, American West Metals, have “successfully generated a potential direct shipping product with a copper (Cu) grade of 53.9% Cu”.
- The company says that a “resource definition drilling and exploration program with the aim of defining a maiden copper resource and defining new zones of mineralization through testing of high-priority anomalies at Storm is expected to commence in June”.
- American West, which has an option to earn an 80% interest in the Storm and Seal projects, tested a 5.5kg sample of drill core with an average grade of 4.16% copper to produce “Three distinct products … a very high density material, high density material and a low density material… The weights of each of the product was 0.56kg, 0.51kg and 4.4kg respectively”.
- Assays using a portable XRF analyser showed a 53.9% copper grade for the very high density product suggesting that it was “near pure chalcocite (Cu2S) and a small fraction of waste material” while the intermediate product, with a 10.3% copper grade “represents a portion of the sampled interval where there is fine grained chalcocite that was not liberated with crushing of the 10-25mm fraction”.
- Aston Bay comments that the ore-sorting test “has demonstrated that the typical mineralization at Storm Copper can successfully be upgraded to produce a DSO product. The exceptional grade of the potential Storm direct shipping product is unique and ranks among the highest-grade copper DSO products globally”.
Conclusion: Early-stage testing of ore sorting on a small sample shows that the technology is capable of producing near pure chalcocite as a direct-shipping material. Additional drilling takes place this summer and we await the results and those of any additional metallurgical work with interest.
*SP Angel were formerly acting as broker to Aston Bay
Atalaya Mining (AIM:ATYM, TSX:AYM) 395p, Mkt Cap £573m – Mineral resource estimates for San Dionisio and San Antonio deposits
- Atalaya Mining (AIM:ATYM, TSX:AYM) reports new, independent, mineral resources estimates for the San Dionisio and San Antonio deposits within its Proyecto Riotinto in southern Spain.
- At San Dionisio, the new estimates show an NI-43-101 compliant ‘Measured & Indicated’ resource of 56.1mt at an average grade of 0.91% copper, 1.14% zinc and 0.23% lead in the west extension of the existing Cerro Colorado pit. The company comments that this copper grade is “~140% higher than existing reserves at Cerro Colorado”.
- We observe that almost 90% of this resource (19.7mt) falls within the ‘Measured’ part of the resource providing considerable assurance that it can eventually underpin a mineable reserve.
- In addition, the new estimates include an ‘Inferred’ underground resource of 12.4mt at an average grade of 1.01% copper, 2.54% zinc and 0.62% lead at San Dionisio.
- Atalaya also reports an underground ‘Inferred’ resource of 11.8mt at an average grade of 1.32% copper, 1.79% zinc and 0.99% lead at San Antonio is located “east of the Cerro Colorado pit”.
- Atalaya Mining confirms that a “Preliminary Economic Assessment ("PEA") is planned during 2022 for an operating schedule that combines Cerro Colorado reserves with higher grade material from the San Dionisio deposit” and comments that, “Subject to the relocation of certain infrastructure and receipt of final permits, the potential open pit at San Dionisio could begin to deliver material to the Proyecto Riotinto plant by mid to late 2023.”
- The company explains that ore from San Dionisio could “potentially account for approximately one-third of processing capacity, with Cerro Colorado ore providing the remainder” as the ore can be treated “at the existing plant with minimal modifications … [potentially providing] … an uplift to Riotinto copper production by increasing the blended head grade”.
- Atalaya Mining explains that “The open pit portion of the Mineral Resource at San Dionisio is expected to be mineable by conventional open pit methods, with San Dionisio being an extension of the operating Cerro Colorado open pit. In order to expand the Cerro Colorado pit into the San Dionisio area, the Company would need to relocate the public road, power lines and water lines that currently run between the two deposits. Further dewatering of the historical Atalaya pit would also be required once open pit mining reaches a certain level”.
- The company also clarifies that “Mining of the San Antonio deposit is likely to be conducted via underground methods. The deposit would be accessed by constructing a ramp collared in the eastern portion of the Cerro Colorado pit” and that “In advance of any development decision for San Antonio, the Company will complete additional drilling from surface, including confirmation and infill drilling to upgrade the current Inferred Resources to higher categories, as well as exploration drilling to the east where the deposit is believed to remain open”.
- Today’s announcement of the resources at San Dionisio and San Antonio follows the publication, earlier this month of an increased resource at the company’s Masa Valverde project located approximately 28km south of its 15mtpa processing plant at Riotinto and an initial estimate of resources at the nearby Majadales project.
- CEO, Alberto Lavandeira, confirmed that the new resources estimate “is an important milestone for Atalaya. As a result of its location beside Cerro Colorado and its nature as a pit extension, San Dionisio could become a near-term source of feed for the Proyecto Riotinto plant. Its development could provide material that is substantially higher grade than Cerro Colorado's existing reserves, thereby increasing copper production while maintaining current plant processing rates”.
Conclusion: The expanding resource base in and around Proyecto Riotinto provides Atalaya with an increasing range of options to increase copper production from its new 15mtpa process plant without further plant expansion.
BeMetals Corp (TSX-V:BMET) – C$0.185, Mkt cap C$33m – Drilling commences at Kato, Japan
- Drilling is now underway at BeMetals’ wholly-owned Kato gold exploration project in Hokkaido Japan.
- The company is planning a 1,500m, US$2m programme to investigate zones of high-grade, low-sulphidation epithermal gold mineralisation identified by Japanese state-agencies during the 1990s.
- Drilling by the Metals Mining Agency of Japan “included high grade intervals of gold such as 17.5 metres grading 8.15 g/t Au in hole 5MAHB-2 and 18.65 metres grading 5.01 g/t Au in hole 7MAHB-1” however, exploration was hampered by drilling problems within zones of intense geological alteration intimately associated with the high-grade mineralisation.
- Recognising the solution to be the use of a more powerful drilling rig with advanced mud-cleaning capability, BeMetals is deploying a new “SDS C1500 drilling rig that has increased power and drilling mud capabilities to previous drilling equipment used at the Project … [which] … should enable us to penetrate the alteration zones and intersect the high-grade veins of gold mineralization at Kato”.
- The recent easing of Japan’s Covid-19 protection measures, which had included limiting access to overseas nationals, allows BeMetals to proceed with its drilling plans which, though formulated some time ago had not been possible to implement during the pandemic.
- Mineralisation at Kato is known to extend over at least “600m along strike with significant, multiple gold zones of drilled widths between 2.8 to 58.9m … and existing robust targets to potentially extend the strike extent to more than 1,400m”.
- John Wilton, President and CEO, described the project area as “relatively remote but easily accessible” and explained that the “primary objective for this phase will be to test target gold zones and their continuity based on historical intersections made by the Japanese state entity Metals Mining Agency of Japan (“MMAJ”) during the 1990s”.
- Although Japan is strategically located on the prolific circum-Pacific ‘Ring of Fire’ it sometimes overlooked as a destination for gold exploration. Prior to WW2 it operated a number of gold mines and the current Hishikari gold mine on Kyushu has produced over 8 million ounces of gold since 1985 historically at an average grade of 30 to 40 grams per tonne (g/t) although current resources are thought to grade around 20g/t.
Conclusion: We look forward to results from the drilling at Kato where BeMetals has started a programme, delayed by the Covid-19 pandemic, to follow up high-grade gold intersections drilled by Japan’s Metals & Mining Agency during the 1990s.
Bluerock Diamonds PLC (AIM:BRD)* – 35p, Mkt cap £8m – Q1 production increases despite the weather
- Reporting on a period which suffered “extremely wet weather conditions”, BlueRock Diamonds reports production from its’ Kareevlei mine of 4,643 carats of diamonds during the three months to 31st December 2022 representing a 32% increase over the 3,507 carats produced in Q1 2021.
- Mined grades of 4.02cpht (Q1 2021 – 4.08cpht) were similar to those of the previous year with the production increase resulting from a 34% increase in the ore tonnage produced to 115,356t (Q1 2021 – 86,005t).
- Commenting on the higher production levels, Executive Chairman, Mike Houston, explained that “ Although mined tonnes achieved are significantly higher than the comparable period in 2021, the rain has delayed progress in this area impacting on quality ore supply in April. Management has thus taken steps to make further improvements to the processing operation, which will unquestionably help in ramping up production as we move into the drier weather conditions”.
- He also said that, as previously announced, “we are concentrating on mine development to ensure a consistent supply of ore, which requires a significant increase in waste mining in the short and medium term
- BlueRock Diamonds sold 5,887 carats of diamonds during the quarter (Q1 2021 – 4,004 carats) and realised an average of US$686/carat, 54% above the US$446/carat achieved during Q1 2021.
- Kareevlei continues to yield high value large diamonds with a total of nine individual diamonds, ranging up to 19.3 carats in size and realising prices of up to US$211,000 tabulated in today’s announcement.
- Explaining that the market for diamonds from Kareevlei remains “extremely positive”, Mr. Houston said that “The outlook remains firm with the supply side, which was already tight prior to the current situation in Ukraine, further tightened with the uncertainty of supply of quality rough diamonds”.
- The company is maintaining its current guidance of 36-43,000 carats of diamond production in 2022 and of 43,000 carats in 2023.
Conclusion: Kareevlei’s Q1 diamond production has increased by over 30% compared to 2021 with a regular flow of large, high-value diamonds. Operating conditions appear to have been challenging due to wet weather during Q1 but are expected to improve as drier conditions approach providing the opportunity to increase waste removal over the short-medium term and provide continuing access to adequate volumes of ore.
*SP Angel act as Nomad and broker to Bluerock Diamonds.
Keras Resources PLC (AIM:KRS)* 0.09p, Mkt cap £5.8m – Diamond Creek receives regulatory approval ahead of Spring marketing programme
(Keras holds 100% of the Diamond Creek phosphate mine in Utah, USA. Keras holds an 85% interest in Societé General des Mines which holds the Nayéga manganese project in Togo)
- Keras has provided an update for its Diamond Creek organic phosphate mine in Utah, where the annual inspection and site visit from the Utah State mining and environmental departments resulted in the mine receiving all ongoing approvals in line with the project's licence obligations.
- The team will now commence the annual rehabilitation on the access roads and start trucking the approximately 5,200 tons of run-of mine phosphate rock remaining from last year’s mining campaign to the Spanish Fork processing facility.
- An additional 1,500 tons of blasted ore will similarly be excavated and hauled from the pit to Spanish Fork during the early summer months.
- Last week, Keras reported that it had consolidated its ownership of Diamond Creek for US$3.2m.
- We expect the mine to do substantially better this year under the sole management of Keras.
- Outlook: The outlook for phosphate and potash fertilizers is extremely positive in the current global environment.
- Rock phosphate prices have jumped 77% to ~$175/t from ~$99/t over the past 12 months climbing steadily since April 2021 according to indexmundi.
- We expect rock phosphate prices to continue to hold high levels due to a global shortage of fertilizer raw materials and a lack of grains out of Ukraine.
- Sanctions against Russia and Russian restrictions on fertilizer raw materials looks likely to reduce crop yields in the West causing fertilizer prices to continue to rise.
- Disruption to Russian wheat exports and a reduced Ukrainian grain harvest has the potential to exacerbate a shortage of basic food stuffs into the Middle East, Asia and the West.
- Keras’s Diamond Creek mine was selling organic rock phosphate for $260/t for rough crushed and prosized #10 mesh, rising to $300/t (Bulk) and $420/t (50lb bags) for #350 mesh for hydroponics.
- The mine also sell granulates for $360/t (bulk) and $450/t (50lb bags).
- Keras had provided US$625,000 of working capital to the Diamond Creek joint venture by end-September last year.
*SP Angel acts as Nomad and broker to Keras Resources
SolGold PLC (LSE:SOLG, TSX:SOLG, OTC:SLGGF)* 39.85p, Mkt Cap £924m – Latest TAM drilling extends potential open-pit and underground mining opportunities
- Solgold has reported results from its continuing drilling programme at the Tandayama-America (TAM) project in the Cascabel licence area of northern Ecuador.
- TAM which announced indicated resources of 233mt at an average grade of 0.23% copper and 0.16g/t gold (reported as 0.33% copper equivalent CuEq) plus inferred resources of 197mt averaging 0.39% CuEq in October last year is located around 3km north of the company’s Alpala project where results of its pre-feasibility study are being announced later this month.
- Today’s announcement summarises results of over 15,000m of drilling completed since October’s mineral resources estimate and includes:
- An intersection, open at depth, of 769.9m averaging 0.32% CuEq (0.23% copper and 0.14g/t gold) from a depth of 608m in hole TAD-21-026 and includes a higher grade zone, of 382m averaging 0.43% CuEq (0.29% copper and 0.21g/t gold) from 524m depth; and
- A 588m wide intersection averaging 0.41% CuEq (0.28% copper and 0.20g/t gold) from 440m depth in hole TAD-21-028 including 140m averaging 0.49% CuEq (0.47% copper and 0.47g/t gold) from 602m depth; and
- A 902m wide intersection averaging 0.28% CuEq (0.22% copper and 0.09g/t gold) from 676m depth in hole TAD-21-032 including 190m averaging 0.41% CuEq (0.33% copper and 0.13g/t gold) from 900m depth; and
- A 334m wide intersection averaging 0.42% CuEq (0.27% copper and 0.23g/t gold) from 442m depth in hole TAD-21-035 including 168m averaging 0.68% CuEq (0.44% copper and 0.37g/t gold) from 592m depth.
- These results supplement previously announced results from TAM which include:
- A 1,010m wide intersection averaging 0.55% CuEq (0.33% copper and 0.34g/t gold) from 194m depth in hole TAD-21-013 including 392m averaging 0.93% CuEq (0.42% copper and 0.68g/t gold) from 246m depth; and
- A 506m wide intersection averaging 0.55% CuEq in hole TAD-21-024 including 220m averaging 0.72% CuEq
- Drilling is continuing, with hole 41 currently at a “depth of 500m, testing extensions to open mineralisation in the southeast quarter of the deposit. Hole 41 has so far intersected visible copper sulphide mineralisation from 381.7m to its current depth”.
- The company says that results from the recent drilling “extend mineralisation potentially mineable by both open pit and underground bulk mining methods and suggest capacity for resource growth. Mineralisation remains open both along strike north and south, and at depth in the southeast”.
- Solgold confirms that a second mineral resource estimate is underway for the TAM project “with a dataset that comprises 30,925.2m of diamond drilling from holes 1-41, 458m of surface rock-saw channel assays from 72 outcrops and a total of 29,631.6m of final assay results from holes 1-40”.
Conclusion: Solgold is preparing an update to its October 2021 mineral resource estimate for the TAM project following a further 15,000m of drilling and evidence that the mineralisation remains open both laterally along strike and at depth in the south-eastern part of the property.
*SP Angel acts as advisor to SolGold
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
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, Tungsten, Spodumene, Ferro-Manganese, Graphite - Asian Metal
DISCLAIMER
This note is a marketing communication and comprises non-independent research. This means it has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of its dissemination.
This note is intended only for distribution to Professional Clients and Eligible Counterparties as defined under the rules of the Financial Conduct Authority and is not directed at Retail Clients.
This note is confidential and is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published in whole or in part, for any purpose.
This note has been issued by SP Angel Corporate Finance LLP (‘SPA’) to promote its investment services. Neither the information nor the opinions expressed herein constitutes, or is to be construed as, an offer or invitation or other solicitation or recommendation to buy or sell investments. The information contained herein is based on sources which we believe to be reliable, but we do not represent that it is wholly accurate or complete. All opinions and estimates included in this report are subject to change without notice. It is not investment advice and does not take into account the investment objectives and policies, financial position or portfolio composition of any recipient. SPA is not responsible for any errors or omissions or for the results obtained from the use of such information. Where the subject of the research is a client company of SPA we may have shown a draft of the research (or parts of it) to the company prior to publication to check factual accuracy, soundness of assumptions etc.
Distribution of this note does not imply distribution of future notes covering the same issuers, companies or subject matter.
Where the investment is traded on AIM it should be noted that liquidity may be lower and price movements more volatile.
SPA, its partners, officers and/or employees may own or have positions in any investment(s) mentioned herein or related thereto and may, from time to time add to, or dispose of, any such investment(s).
SPA is registered in England and Wales with company number OC317049. The registered office address is Prince Frederick House, 35-39 Maddox Street, London W1S 2PP. SPA is authorised and regulated by the UK Financial Conduct Authority and is a Member of the London Stock Exchange plc.
MiFID II - Based on our analysis we have concluded that this note may be received free of charge by any person subject to the new MiFID II rules on research unbundling pursuant to the exemptions within Article 12(3) of the MiFID II Delegated Directive and FCA COBS Rule 2.3A.19.
A full analysis is available on our website here http://www.spangel.co.uk/legal-and-regulatory-notices.html. If you have any queries, feel free to contact our Compliance Officer, Tim Jenkins (tim.jenkins@spangel.co.uk).
SPA research ratings – Based on a time horizon of 12 months: Buy = Expected return of more than 15%, Hold = Expected return between -15% and +15%, Sell = Expected return of less than 15%