SP Angel . Morning View . Monday 16 05 22
Cape Town conference highlights new drive to fund next generation mines
MiFID II exempt information – see disclaimer below
Graphite / graphene – private company financing closing this week
We are inviting investors to finance a private company which produces high-grade graphite and graphene from lower grade graphitic material.
Products: Graphene paint which blocks electromagnetic radiation/signals, Li-ion battery anodes in development, Concrete modifier
*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.
Altus Strategies PLC (AIM:ALS, TSX-V:ALTS, OTCQX:ALTUF) – BUY, 111p– La Mancha loan facility maturity extended to YE22
Cora Gold Ltd (AIM:CORA) – Annual results
Chaarat Gold Holdings Ltd (AIM:CGH) – Fatal accident at Kapan
Empire Metals Ltd (AIM:EEE) – Drill results extend Eclipse known shear length to over 500m
Galantas Gold Corp (AIM:GAL, TSX-V:GAL, OTC:GALKF) – Drilling results from the Omagh project
Horizonte Minerals PLC (AIM:HZM, TSX:HZM, OTC:HZMMF) – Quarterly results reported in US$ to mirror financing package and future revenue stream
Rockfire Resources PLC (LSE:ROCK) – Completion of the acquisition of the Molaoi zinc project
We include a short summary of selected companies we met in Cape Town last week:
American West Metals (AU:AW1) - Newly listed junior focused on base metals exploration in Tier 1 jurisdictions of North America
Tembo Gold (TEM CN) - Funded high grade gold exploration on the doorsteps of the Buly mine
Turaco Gold (TCG AU) - Junior with A$12m in the bank and ~8,400km2 in highly prospective and underexplored region of Cote d'Ivoire
Mining conference in Cape Town highlights move to fund new exploration to discover next generation of EV and battery metals
- Positive investor sentiment at the 121 mining investment conference in Cape Town reflected the relative strength of the sector last week.
- While were slightly fewer investors this year, this was offset by an extraordinary numbers of traders with financing deals looking for offtake, royalties and streaming agreements.
- The very substantial growth in traders attending this ‘junior’ company event is being driven by intense competition to secure metals and other raw materials.
- Their interest reflects growing concern by manufacturing industry to secure sources of battery materials, and other EV and energy-generating related metals.
- The majors were also busy hunting for the next generation of mineral discoveries
- Arc Minerals’ (ARCM LN)* extraordinary $88.5m deal with Anglo American, announced on Thursday, highlights interest by the majors in exploration and new discovery.
- We understand other majors had also expressed interest in Arc’s licenses which sit strategically on the Lufilian Arc running through the major copper belt of Zambia, DRC and Botswana. This band of mineralisation hosts some of the highest grade copper mines in the world with new discoveries highlighting its further potential.
- The Anglo team have a clear methodology for the exploration and future development of mineral resources in the region and are rumoured to be
- Anglo are also rumoured to be looking at acquiring the Khomecau project in Botswana for $1.5bn.
- BE Metals (BMET CN) and Zamare (Private) are also exploring along this trend to the south of the Arc licenses.
Conclusion: this is the most promising market for worthy junior projects we have seen since the first Mining Indaba in 1994.
*SP Angel acts as nomad and broker to Arc Minerals
Copper - EVs and hybrids forecast to raise refined copper demand by 20%pa till 2030 with EV copper consumption rising to 10.6% of global copper demand by 2030 from 2% in 2019.
Add in new demand for cabling to connect wind farms, EV chargers, additional grid support and general industrial use and you get a
Dow Jones Industrials +1.47% at 32,197
Nikkei 225 +0.45% at 26,547
HK Hang Seng +0.21% at 19,941
Shanghai Composite -0.34% at 3,074
Economics
China – Weak April economic data highlight disruptions from the Covid Zero government policy with industrial output and consumer spending down to the worst levels since the start of the pandemic.
- Shanghai has been in locked down for several weeks while there are concerns that other major cities may follow suit amid the spread of highly transmissible omicron variant.
- The vice mayor of Shanghai said Sunday normal life and production will fully resume only by mid- to late-June, Bloomberg reports.
- Industrial production unexpectedly contracted while the fall in retail sales was much stronger that envisaged.
- Unemployment rate climbed to 6.1% while the youth jobless rate hit a record.
- Industrial Production (%yoy): -2.9 v 5.0 in March and 0.5 est.
- Industrial Production (%YTD): 4.0 v 6.5 in March and 5.0 est.
- Retail Sales (%yoy): -11.1 v -3.5 in March and -6.6 est.
- Retail Sales (%YTD): -0.2 v 3.3 in March and 1.2 est.
- FAI (%YTD): 6.8 v 9.3 in March and 7.0 est.
UK – Climbing cost of living will see a drop in real disposable incomes of ~3.4% this year according to Bloomberg Intelligence estimates.
- Separately, a Bloomberg survey released today put the chance of a recession at 40%, up from 28% last month.
EU – The European Commission is set to sharply pull back its GDP estimates and nearly doble its inflation rate projections, according to new draft forecasts.
- Growth is expected to come in at 2.7% in 2022 and 2.3% in 2023, down from 4.0% and 2.7% expected before the breakout of war in Ukraine.
- Inflation is estimated to average 6.1% and 2.7%, compared to previous forecasts of 3.5% and 1.7%, respectively.
Ukraine – Ukrainian successes offer hope for further gains as Russians are forced to pull back
- Better news out of the Ukraine appears to support prospects for Ukrainian forces pushing the Russian Army back into Russia
- The successful defence of Kharkiv, Ukraine’s second largest city, pushing Russian troops back to the Russian boarder.
- Russia is likely to have lost a third of its ground forces in Ukraine according to the MoD
- Reports suggest Putin may have ordered purge of Russian commanders as Gerasimov is suspended and other commanders are rumoured to have disappeared
Zambia sees surge in new investment to expand mines and discover new projects as social unrest unbalances Chile and Peru
- Junior explorers and major miners are ramping up investment in Zambia driven by the need for more copper/cobalt resources, new discoveries, prospective sites and old workings.
- Recently elected President Hakainde Hichilema, known as ‘HH’ has increased investment into the region following his election on an anti-corruption platform.
- Much of Zambia remains unexplored despite recent discoveries due to taxation and other issues under the previous president.
- Political risk in Chile and Peru which account for 45% of global copper production, is rising driven by high poverty and debt levels with Covid also driving political change to the left.
- In Chile, changes to the constitution may drive a rise in mineral royalties.
- In Peru, recently-elected Pedro Castillo has pledged to keep 70% of mining profits in the country and stop foreign firms' "plundering”
- Zambia investment:
- First Quantum Minerals (TSX:FQM) recently has approved a $1.25bn expansion of the company's Kansanshi copper mine in Zambia, with the decision prompted by “renewed confidence” in Zambia’s investment climate.
- Anglo American have committed to an $88.5m investment with Arc Minerals* for exploration to the west of Zambia
- Rio Tinto are earning into a potential 75% stake in Midnight Sun’s Solweizi licenses for $51m
Conclusion: President Hichilema is focussed on encouraging investment into Zambia target a tripling copper output over the next ten years.
*SP Angel act as nomad, advisor, and broker to some of the companies mentioned in this comment
Currencies
US$1.0405/eur vs 1.0397/eur last week. Yen 129.00/$ vs 128.59/$. SAr 16.310/$ vs 16.204/$. $1.223/gbp vs $1.221/gbp. 0.689/aud vs 0.689aud. CNY 6.800/$ vs 6.795/$.
Commodity News
Precious metals:
Gold US$1,808/oz vs US$1,825/oz last week
Gold ETFs 105.2moz vs US$105.4moz last week
Platinum US$943/oz vs US$985/oz last week
Palladium US$1,969/oz vs US$1,965/oz last week
Silver US$21.08/oz vs US$20.85/oz last week
Rhodium US$16,000/oz vs US$15,400/oz last week
Base metals:
Copper US$ 9,191/t vs US$9,125/t last week
Aluminium US$ 2,829/t vs US$2,793/t last week
Nickel US$ 27,175/t vs US$27,580/t last week
Zinc US$ 3,535/t vs US$3,544/t last week
Lead US$ 2,092/t vs US$2,088/t last week
Tin US$ 33,900/t vs US$33,295/t last week
Energy:
Brent Oil US$110.1/bbl vs US$108.4/bbl Friday
- Crude oil prices start the week flat following Friday’s gains, even as the IEA forecast that it expected sanctions to cause Russian supply to fall from 1mb/d in April to as much as 3mb/d in 2H22.
- European energy prices fell 10% on Friday as expectation rose that the EU would offer Russian gas importers a way to comply with sanctions and still meet Vladimir Putin's demands over rouble payments.
- The US rig count climbed by 9 to 714 rigs last week, split between 3 units targeting gas and 6 units for oil, versus a 4:1 overall split in favour of oil.
Natural Gas US$7.805/mmbtu vs US$7.777/mmbtu last week
Uranium UXC US$51.05/lb vs $52.75/lb last week
Bulk:
Iron ore 62% Fe spot (cfr Tianjin) US$129.3/t vs US$127.0/t
Chinese steel rebar 25mm US$723.1/t vs US$727.1/t
Thermal coal (1st year forward cif ARA) US$248.5/t vs US$248.5/t
Thermal coal swap Australia FOB US$362.5/t vs US$369.5/t
Coking coal swap Australia FOB US$485.0/t vs US$494.0/t
Other:
Cobalt LME 3m US$82,000/t vs US$82,000/t
NdPr Rare Earth Oxide (China) US$134,958/t vs US$135,171/t
Lithium carbonate 99% (China) US$62,882/t vs US$62,982/t
China Spodumene Li2O 5%min CIF US$4,020/t vs US$3,920/t
Ferro-Manganese European Mn78% $1,806/t vs US$1,804/t
China Tungsten APT 88.5% FOB US$338/t vs US$338/t
China Graphite Flake -194 FOB US$815/t vs US$815/t
Europe Vanadium Pentoxide 98% 10.3/lb vs US$10.3/lb
Europe Ferro-Vanadium 80% 40.75/kg vs US$40.75/kg
China Ilmenite Concentrate TiO2 US$366/t vs US$366/t
Spot CO2 Emissions EUA Price US$91.7/t vs US$91.6/t
Brazil Potash CFR Granular Spot US$1,215/t vs US$1,220/t
Battery News
Company News
Altus Strategies PLC (AIM:ALS, TSX-V:ALTS, OTCQX:ALTUF) 53.0p, Mkt Cap £62m – La Mancha loan facility maturity extended to YE22
BUY – 111p
- The Company agreed an extension of the maturity date of the strategic loan facility from La Mancha by six months to 31 December 2022.
- All other terms of the facility remained unchanged.
- The facility was due for repayment on 30 June 2022 and bears an annualised interest rate of 10% + 3m LIBOR.
- The Company repaid US$5m to date with the outstanding amount currently at US$25.8m.
Conclusion: Extension of the La Mancha debt facility maturity date and no change in other terms of the loan offer the Company additional financial flexibility as the team is looking at optimal refinancing option and further reflect the support the Company has from the major shareholder (La Mancha holds 35% interest in Altus).
*SP Angel acts as nomad and broker to Altus Strategies
Cora Gold Ltd (AIM:CORA) 7.0p, Mkt Cap £20m – Annual results
- The Company reviewed the progress at the flagship Sanankoro Gold Project in 2021 that involved an extensive +40,000m of drilling, MRE update as well as a continuing DFS related work.
- The team released an updated MRE in November last year that expanded the mineral inventory 3x and increased the confidence of the resource.
- The latest estimates is for 21.9mt at 1.15g/t for 809koz (~67% in the Indicated category).
- Commenting on the Sanankoro DFS progress, the Company is reporting that hydrogeological and geotechnical drilling has been completed.
- Procurement packages have been sent to suppliers for costing.
- ESIA remains on track for completion in H1/22.
- Metallurgical testwork is ongoing.
- The Company is targeting DFS completion in H1/22.
- The Company has recently competed 7,500m of infill and step out drilling programme at the project that will be used to update the MRE in H2/22.
- Net loss for the year amounted to $1.8m (2020: $0.7m) with administrative costs accounting for $1.3m and $0.5m reflecting an impairment charge over non-core exploration properties.
- Sanankoro project related capitalised costs totalled $8.4m during the period (2020: $2.3m).
- Closing cash balance stood at $5.4m following a £4.3m equity raise in December with zero debt on the balance sheet as of Dec/21.
Chaarat Gold Holdings Ltd (AIM:CGH) 16.1p, Mkt Cap £111m – Fatal accident at Kapan
- The Company reported a fatal accident involving a contractor employee on 14 May following a rock fall at the Kapan underground mine.
- The area of the accident was closed immediately with an internal and external investigation underway.
- Mining operations will continue in other parts of the mine with the management not expecting production to be affected.
Empire Metals Ltd (AIM:EEE) 1.7p, Mkt Cap £7.3m – Drill results extend Eclipse known shear length to over 500m
- Empire reports results from its recent Diamond Drill programme at the Eclipse Gold Project in Western Australia.
- Six holes were drilled for a total of 999m focusing on gold mineralisation at depth around the Eclipse shaft and Jack’s Dream shaft, and to test for continuity along strike between Eclipse and Jack’s Dream and to the north-west of Jack’s Dream.
- Five of the six holes intersected mineralisation, with highlights including:
- 0.54m @ 2.61g/t Au from 138.72m downhole at ECDD22_002
- 0.61m @ 1.63g/t Au from 164.69m downhole at ECDD22_003
- 0.33m @ 4.28g/t Au from 165.3m downhole at ECDD22_003
- 0.41m @ 2.16g/t Au from 78.79m downhole at ECDD22_005
- 0.48m @ 1.64g/t Au from 81.09m downhole at ECDD22_005
- 0.5m @ 1.78g/t Au from 121.15m downhole at ECDD22_006
- 0.4m @ 1.25g/t Au from 122.98m downhole at ECDD22_006
- The company notes that holes 003 and 005 prove the continuity of gold mineralisation to the north-west of the Eclipse shaft indicating the potential for Jack’s Dream mineralisation to link directly to the Eclipse lode, whilst also demonstrating that the Eclipse lode remains open at depth.
- Structural data from all six holes will provide important input for Empire’s geological model at Eclipse.
*SP Angel acts as nomad and broker to Empire Metals
Galantas Gold Corp (AIM:GAL, TSX-V:GAL, OTC:GALKF) 30.5p, Mkt Cap £24m – Drilling results from the Omagh project
- Galantas Gold has reported results from 4 underground drillholes which are part of the continuing 4,000m drilling programme at its Omagh project in Northern Ireland.
- The holes were drilled from underground development and indicate that the Kearney vein may be dilated in parts providing “potential for higher widths of mineralization have previously been identified within the Kearney underground development and are believed to be linked on shallow north-dipping planes”.
- The drilling has also improved confidence “in the nearby 'C-lens' which was intersected in all four holes”.
- Among the results highlighted in today’s announcement are:
- An intersection, in hole FRDD-22-UG-183, of 2.4m at an average grade of 21.4g/t gold and 32.9g/t silver within the dilated portion of the Kearney Vein; and
- Multiple intersection of the Kearney Vein in hole FRDD-22-UG-179 including 1.5m averaging 16.6g/t gold and 26.9g/t silver “at a vertical depth of 138 metres”; and
- An intersection, in hole FRDD-22-UG-180 of a “parallel-running vein known as the 'C-lens', approximately 50 metres east of the Kearney Vein” which averaged 7.1g/t gold and 13.2g/t silver over an interval of 3.4m estimated at a true width of 1.7m.
- Commenting on progress at the Omagh project, CEO, Mario Stifano, confirmed that Galantas Gold “has restarted underground development and blasting, and remains on track to commence production in the second half of June”.
Conclusion: Continuing underground drilling at the Omagh project, where production is expected in June, indicates potential wider zones of mineralisation in dilation zones of the Kearney Vein and additional mineral potential in parallel zones.
Horizonte Minerals PLC (AIM:HZM, TSX:HZM, OTC:HZMMF) 6.9p, Mkt Cap £262m – Quarterly results reported in US$ to mirror financing package and future revenue stream
- Horizonte Minerals reports a loss of US$4.5m for the three months to 31st March 2022 and says that its move to report in US$ compared to its previous sterling reporting “has been revised as the financing package concluded by the Group to construct the Araguaia project is denominated in US Dollars and future revenues will also be in US Dollars. The Board, therefore, believes that US Dollar financial reporting provides a more relevant presentation of the group's financial position, funding and treasury functions, financial performance, and cash flows”.
- Horizonte Minerals reports a 31st March cash balance of US$251.8m following the conclusion of its US$633m funding package in December 2021 which includes US$197m of equity.
- As development of the Araguaia ferronickel project progresses, Horizonte Minerals invested US$35.7m during the quarter.
- The Araguaia project is expected to produce approximately 14,500tpa of nickel contained in 52,000tpa of ferronickel by treating 900,000tpa of ore during Phase 1. A subsequent, second phase of the project includes the flexibility to double production to 29,000tpa of contained nickel by the addition of a second rotary kiln electric furnace in the third year of the project
Rockfire Resources PLC (LSE:ROCK) 0.47p, Mkt Cap £4.9m – Completion of the acquisition of the Molaoi zinc project
- Rockfire Resources reports the issue of 50m new shares to complete the acquisition of the Molaoi zinc project in Greece.
- The shares, which are being issued at a price of 1p/share, to shareholders of Hellenic Minerals, the holder of the exploration and exploitation licence, “will be voluntarily escrowed by the vendors of Hellenic (or their nominees) for a period of 6 months from the date of issue”.
- Hellenic Minerals shareholders retain “an enduring 2.0% (two percent) Gross Production Royalty on saleable product from all metals extracted” and will receive an additional £400,000 shares in Rockfire Resources within 28 days of the announcement of a JORC compliant mineral resource of over 400,000t of zinc equivalent value.
- The royalty can be acquired by Rockfire Resources for £1m in cash.
- “Molaoi has an excellent infrastructure, including 173 cored drill holes, a historical (capped) underground portal, a 600m-long exploration decline, mineralisation starting at surface, and 7 km of prospective strike extension, all of which are sited only 9 km from the coast”.
- The company restates its December 2021 disclosure that “David Price, the Chief Executive Officer of Rockfire, has a historic agreement with Hellenic, which entitles him to 50% of the Acquisition Shares. On Admission of the Acquisition Shares, David will have an interest in 38,850,000 ordinary shares, representing approximately 3.42 per cent. of the issued share capital of the Company, as enlarged by the Acquisition Shares”.
We include a short summary of selected companies we met in Cape Town last week:
American West Metals (AU:AW1) A$0.16, Mkt Cap A$26m - Newly listed junior focused on base metals exploration in Tier 1 jurisdictions of North America
- The Company is a newly ASX listed with a portfolio exploration stage copper/zinc projects in Utah, USA (West Desert Project and Copper Warrior) and Nunavut, Canada (Storm/Seal).
- The West Desert Project (100% owned) is a porphyry related zinc-polymetallic skarn and carbonate replacement deposit covering ~20km2 and located ~160km southwest of Salt Lake City.
- Historical exploration at West Desert identified a large porphyry related, zinc-polymetallic skarn and carbonate replacement deposit with 2014 NI43-101 MRE estimated at 59.0mt at 1.85% Zn, 0.22% CU and 26g/t In (indium).
- The resource hosts higher grade core of 16.5mt at 6.3% Zn, 0.3% Cu and 33g/t In that the team is hoping to expand that will support underground operation with mineralisation reported to remain open at depth and along strike.
- Indium is found with the zinc hosting mineral sphalerite to be potentially recovered in the zinc concentrate and is used in the electronics and semiconductor industries (spot price ~$250/kg delivered US or ~$8/oz).
- The Company launched its inaugural 7,500m drilling programme in Q1/22 with 10 450-800m deep holes initially planned and additional drill holes to be added as required collecting data for a JORC MRE update (guided Q4/22).
- The team completed six holes to date with assay results from the first drill hole (~790m downhole depth) returning high grade copper/zinc/molybdenum intersections at depth including
- 2.45m @ 3.5% Cu, 0.85g/t Au, 38.83g/t Ag, 81.6g/t In, 0.14% Mo from 308.14m;
- 2.13m @ 3.15% Cu, 1.44g/t Au, 5.58g/t Ag, 56.64g/t In, 0.04% Mo from 314.08m;
- 6.4m @ 11.42% Zn, 0.53% Cu, 0.26g/t Au, 14.66g/t Ag, 48.23g/t In from 150.56m;
- 5.18m @ 8.66% Zn, 0.54% Cu, 0.17g/t Au, 16.05g/t Ag, 60.57g/t In from 162.15m;
- 21.5m @ 0.6% Mo, 23.4g/t Ag from 758.46m.
- In Nunavut, Canada, the Company is earning 80% interest into Aston Bay's 100% owned Storm Copper and Seal Zinc Projects located on western Somerset Island with staged expenditure of C$10m over 7 years.
- The Storm Copper Project is a pre-resource high grade, sediment hosted copper prospect.
- The Seal Zinc Project is a stratabound zinc-silver deposit adjacent to Storm with a NI43-101 of 1mt at 10.24% Zn and 46.5g/t Ag.
- The team plans a drilling programme (1,500-2,000m in ~150m deep holes) at the Storm Copper Project in June to define a maiden resource following up on historic drilling that returned high grade intersections including 11m at 2.45% Cu from surface and 56.3m at 3.07% Cu from 12m.
- The Copper Warrior Project covers 14km2 and is targeting sediment hosted copper located just 15km north west of the producing Lisbon Valley copper mine (heap leaching and SX-EW operation; 37mt at .46% Cu).
- The Company is earning 100% interest through staged expenditure of US$0.5m over 3 years and is planning a drilling campaign to test outcropping copper mineralisation.
- Closing cash position stood at A$5.2m as of Mar/12 following a A$12m raise in Dec/21.
Conclusion: The Company is focused on base metals projects in Tier 1 jurisdictions having launched an extensive drilling programme across its US and Canadian properties after having raised A$12m in an IPO in Dec/21. Among near term catalysts are drilling results at the flagship West Desert zinc/copper/molybdenum project with maiden JORC MRE guided for Q4/22 and drilling results at Storm/Seal and Copper Warrior properties.
Tembo Gold Corp (TSX-V:TEM) C$0.26, Mkt Cap C$24m - Funded high grade gold exploration on the doorsteps of the Buly mine
- The Company is a TSX-V listed gold explorer with a 100% interest in the Tembo Gold Project located in the Sukumaland Greenstone Belt south of Lake Victoria, Tanzania.
- The flagship exploration property comprises ~32km2 project area with ~50,000m of drilling completed to date and ~US$25m worth of data available for target generation.
- After an improvement in the local mining sector investment climate with a change of leadership, the Company launched a 7,000m (36 holes) drilling programme in early May to test four historic priority areas as well as new target zones.
- Diamond hold drilling will kick off at Ngula 1 to understand structural controls of high grade mineralisation intersected previously including:
- 8.17g/t over 11.1m from 117.0m (TDD0054);
- 22.18g/t over 15.0m from 299.0m (TDD0041);
- 3.13g/t over 25.9m form 41.0m including 4.46g/t over 2.6m and 9.38g/t over 6.3m (TDD0004).
- Subject to drilling results, the Company may release a MRE next year.
- David Scott, CEO, brings over 40 years of exploration and mining experience in Africa of which >20 years were in Tanzania.
- He previously worked as Technical Services Manager at the Bulyanhulu Underground Mine (Output att 180-210koz at ~$900/oz AISC in 2022e, PP att 2.5moz at 7.76g/t, MI att 4.8moz at 8.92g/t, Inferred att 6.2moz at 8.0g/t) 84% owned by Barrick Gold.
- The Company is well funded with ~C$11m in cash (no debt) to carry a drilling programme having closed a deal with Barrick Gold on its non-core prospecting licenses in April 2022.
- Under the deal, in return for gold licenses Barrick agreed to pay US$6m, commit US$9m on exploration over the next for years and up to $45m in contingent payments for proved up ounces ($20/zo for first 1moz, $10/oz for next 1moz and $5/oz thereafter for up to 5moz).
- Additionally, Barrick subscribed for a ~6% equity interest in Tembo for C$1.5m.
Conclusion: Tembo Gold is well capitalised with ~C11m in the bank launching an exploration programme at a wholly owned license located in the highly prospective Lake Victoria Goldfield area in northern Tanzania. Exploration is resuming following an improvement in the local investment climate. The license is only 6-7km away from the ~3moz in reserves Bylyanhulu Gold Mine owned and operated by Barrick that are also ~6% shareholder in Tembo. The Company has also secured a deal with Barrick with regards to non-core gold licenses that may yield up to US$45m for up to 5moz in new resource while close proximity to the Buly mine offers clear potential exit opportunities for a discovery at the Tembo property.
Turaco Gold (ASX:TCG) A$0.1, Mkt Cap A$39m - Junior with A$12m in the bank and ~8,400km2 in highly prospective and underexplored region of Cote d'Ivoire
- The Company is an ASX-listed junior gold explorer (former Manas Resources) with 8,350km2 landholding, the largest in the country, in highly prospective Birimian greenstones in northern and central Cote d'Ivoire.
- Turaco is led by Justin Tremain who previously acted as CEO of Exore Resources that owned the Antoinette Gold Project (0.5moz at 2.5g/t in total resource) in northern Cote d'Ivoire and was acquired by Perseus for ~US$40m in Sep/20 securing a potential ore feed for the neighbouring Sissingue operation.
- Tremain and the former Exore team joined the Company in Dec/20 and signed a deal with Resolute Mining in May/21 picking up exploration licenses covering ~6,200km2 and growing its exploration footprint in the country fourfold.
- Key projects include:
- Boundiali Project (89%, minority 11% interest held by Predicitve Discovery), northern Cote d'Ivoire, covering 572km2 and located <100km south of the Antoinette gold project.
- Historical exploration included soil sampling identifying gold anomalies at Nyangboue (>6km strike), Nyangboue South (>2km long) and Gbemou (>1.5km long) with a round of RC and DD drilling completed over ~2km of the 6km Nyangboue gold anomaly.
- Selected drilling results included a series of wide close to surface high grade intersections including:
- 20m @ 10.45g/t gold fr 38m (BRC0004S, being a re-drill of BDRC004 to extend the hole)
- 30m @ 8.30g/t gold fr 39m (NDC007)
- 20m @ 1.97g/t gold fr 0m and 14m @ 5.51g/t gold fr 32m (BRC004)28m @ 4.04g/t gold fr 3m and 6m @ 3.29g/t gold fr 47m (BRC003)
- The team is planning to follow up on these historic results with two drill rigs operating and potentially releasing maiden MRE H2/22.
- Tongon Project (80-100%), northern Cote d'Ivoire, covering 1,540km2 and located between Tongon mine (4.5moz, Barrick) and Wahgnion operation (3.2moz, Endeavour).
- Resolute had carried only limited shallow, reconnaissance aircore drilling with the team having commissioned maiden AC drilling programme to test multiple gold in soil anomalies.
- Ferke Project (earning in 85%), northern Cote d'Ivoire, comprised of 300km2 with historical exploration including soil geochemistry, aeromagnetics, trenching and a series of RC/DD holes.
- 2018 RC drilling returned 25m @ 3.06g/t from 64m at the Ourigue South prospect, located in the south part of the identified >16km Leraba Gold Trend.
- Eburnea (80-100%), central-east Cote d'Ivoire, covering two granted exploration permits for 690km2 over two prospective greenstone sequences, the Oume-Fetekro and Ouango-Fitini hosting Bonikro, Agbaou and Fetekro deposits.
- Closing cash position stood at ~A$12m as of Mar/22 and no debt.
Conclusion: Turaco Gold holds large landholding in the prospective areas of Cote d'Ivoire neighbouring major mining operations/deposits led by a team with a good track record of operating in the region. With A$12m in the bank, the Company is well placed on delivering extensive exploration programme and strong newsflow.
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 – – 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 – [mailto:Rob.Rees@spangel.co.uk%20-]Rob.Rees@spangel.co.uk - 0203 470 0535
Grant Barker – Grant.Barker[mailto:Rob.Rees@spangel.co.uk%20-]@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%
Disclaimer
The information contained in this communication from the sender is confidential. It is intended solely for use by the recipient and others authorized to receive it. If you are not the recipient, you are hereby notified that any disclosure, copying, distribution or taking action in relation of the contents of this information is strictly prohibited and may be unlawful.
This email has been scanned for viruses and malware, and may have been automatically archived by Mimecast Ltd, an innovator in Software as a Service (SaaS) for business. Providing a safer and more useful place for your human generated data. Specializing in; Security, archiving and compliance. To find out more Click Here.