✅ Trading halt for assay results at Norseman PGE discovery

ASX:GAL   Jul 08, 2022 Announcement

Investment Memo: GAL IM-2022
Objective 4 : Cobalt and palladium exploration at Norseman


This morning our long term exploration Investment Galileo Mining (ASX: GAL) went into a trading halt “pending the release of an announcement to the market in relation to material drill assay results from the Company’s Callisto discovery (Assay Results)”.

Today’s trading halt comes two weeks after GAL intercepted more sulphides along strike from its discovery hole at its PGE discovery in WA.

Below is an image of where the upcoming assays are likely to be from.

In a previous GAL note, we mentioned that we are watching for the discovery to continue to the east — the sulphide intercepts were a positive first sign that this could be the case.

We then set some expectations for the assay results as follows:

  • Incredible case: 40m at over 3.0 g/tonne
  • Bull case: Mineralisation keeps going, grade increasing to 2.5 g/tonne
  • Base case: Grade above 1.0 g/tonne, 10m + intersection lengths
  • Bear case: Grade below 1.0 g/tonne, intersection lengths reduce

At this stage, we know that the mineralisation continues along strike to the east with every hole so far intercepting greater than 20m of sulphides, with a peak intercept of ~28m.

We now want to see the grades from coming assays be on par or above those from the discovery hole. If we see grades improve off of the discovery hole then the results would be in between our bull case and incredible case expectations.

We think this could be a positive surprise to the market and lead to a move higher in the company’s share price. We are now looking forward to Tuesday when GAL expects to come out of its trading halt.

Environmental and community support for geothermal project

ASX:VUL   Jul 08, 2022 Announcement

Investment Memo: VUL IM-2022
Risk 4 : Stakeholder risk


VUL today reported that it has received preliminary Environmental Impact Assessment (EIA) approval for its Taro license, paving the way for VUL to drill six wells for geothermal energy and lithium.

The State Office for Geology and Mining determined that “the environmental impact of the planned wells, taking into account their size, extent and intensity of action, cannot be assessed as significant. There is therefore no requirement to carry out a full environmental impact assessment for the wells”.

VUL has also confirmed today that community support for geothermal production is growing across Germany’s Upper Rhine Valley region, with the Upper Rhine Council having resolved in favour of supporting deep geothermal projects in Ortenau. This follows an earlier vote of support for geothermal energy production in the area from the City Council of Landau.

These endorsements address some of the Stakeholder Risk as outlined in our 2022 VUL Investment Memo.

Lastly, VUL has provided an update on progress at its Demo Plant at the Zero Carbon Lithium™ Project in Germany.

VUL says that initial commissioning of the Sorption Demo Plant is now planned to commence in late-Q4. This is behind schedule due to previously flagged, unprecedented global supply chain issues with sourcing certain pieces of equipment. However, the commissioning of ‘LiLy’ — VUL’s lithium hydroxide production Demo Plant — remains on track to start commissioning in late Q1 2023.

Binding agreement with leading Italian geothermal group

ASX:VUL   Jul 08, 2022 Announcement

Investment Memo: VUL IM-2022
Objective 5 : More strategic partnerships (to demonstrate execution)


Continuing to grow and diversify its project development portfolio, Vulcan Energy Resources (ASX: VUL | FSE: VUL) today announced it has entered a binding collaboration agreement with Italy’s largest geothermal energy producer, Enel Green Power (EGP).

EGP, part of the Enel Group, is dedicated to the development of energy generation from renewable sources. A global leader in geothermal energy, it has plants in Italy, Chile and the United States.

Under the agreement, VUL and the Italian renewable energy giant will explore future geothermal lithium opportunities for cooperation. This includes assessing the potential of VUL’s Italian project, the Cesano Permit, in a stepwise approach, starting with a joint scoping study.

The Cesano Permit extends over an area of 11.5 km2, 20 km NNW of Rome. EGP has previously explored and drilled a number of wells in the Cesano area and gathered relevant data directly from local reservoirs, including wells that yielded hot geothermal brine with high lithium values.

VUL and EGP will also evaluate the opportunity to cooperate on other geothermal lithium projects in Italy.

China considering US$220Bn in infrastructure stimulus

Jul 08, 2022

Macro: Commodities


The following Bloomberg article highlights China’s plan to spend up to US$220 billion to spur economic growth through infrastructure spending.

All of this new infrastructure will require more commodities.

Read the full article here.

Below are our key takeaways:

  • China’s Ministry of Finance is considering US$220 billion of infrastructure funding aimed at shoring up the country’s beleaguered economy.

  • The funding is to be brought forward from next year’s quota, marking the first time the issuance has been brought forward due to concerns around the dire state of the world’s second largest economy.

  • The funding would primarily be used on infrastructure spending to boost an economy hit by Covid lockdowns and a housing downturn.

  • Commodities rallied in European trading hours following the news, with copper moving 3.6% higher on the London Metal Exchange.

For over two years, we have been writing about an upcoming commodities supercycle brought about by infrastructure spending, following decades of underinvestment in the “real economy”.

All this investment in the “real economy” requires raw materials, which is why we think the macro backdrop for commodities over the next decade is strong.

The Bloomberg article highlights the readiness of the Chinese government to lean on fiscal stimulus to spur economic growth at a time when the Chinese economy is slowing down.

Generally, governments would try to respond to slowdowns in economic growth by cutting interest rates. With this tool exhausted after the COVID pandemic, we think infrastructure spending will become the new policy of choice for governments worldwide.

Again, this infrastructure spending will increase demand for commodities which we expect will take commodity prices higher.

VW CEO breaks down batteries and supply chain issues

Jul 08, 2022

Macro: Commodities


The following Bloomberg article showcases the moves major carmaker Volkswagen is making in the batteries industry.

Read the full article here.

Below are our key takeaways:

  • VW is pressing forward with investments along its battery supply chain, commencing construction at a new cell factory in Salzgitter, Germany, one of five facilities in Europe under the carmaker’s PowerCo subsidiary.
  • Salzgitter is home to VW’s main motor factory, and it is where the company last year opened an $80 million facility to research, develop and test EV batteries.
  • Roughly $2 billion will be invested in the new cell factory, where production is scheduled to begin in 2025.
  • VW expects its battery business to generate €20 billion in revenue by the end of this decade.
  • VW CEO Herbert Diess said, “We are invested in some startups and we are looking forward to a joint venture together with Bosch for the machine tools and equipment for those plants, so we’re really gearing up to become one of the bigger battery cell producers”.

The news is just another sign that downstream investment in battery supply chains is showing no signs of slowing down.

VW is one of the world's largest carmakers and is heavily investing in downstream production capacity. It expects this part of its business to generate over €20 billion in revenues by the end of the decade.

This is a situation where investment in midstream/downstream (manufacturing/battery industry) is far ahead of upstream investment (mining), this leads to the supply/demand imbalances for the raw materials required to produce batteries only becoming worse.

The imbalance comes from the timing of these mega projects. Building a downstream / midstream facility could take 1-4 years whereas it takes around 7 years on average to bring a new resource discovery into the production stage.

As a result, we think that raw materials prices will remain high for at least the next decade whilst the mining industry catches up to demand.

Nuclear power labelled “Green” by the European Union

ASX:GTR   Jul 07, 2022

Investment Memo: GTR IM-2022


The following Reuters article touches on the news overnight in the EU where lawmakers voted in favour of labelling nuclear power as “green”.

Read the full article here.

Our key takeaways:

  • On Wednesday, the European parliament backed EU rules labelling investments in gas and nuclear power plants as climate-friendly.
  • The vote in favour of the proposal means the EU can look to pass the proposal into law. For the proposal not to pass, 20 of the EU’s 27 member states would have to oppose the move.
  • The new rules will add gas and nuclear power plants to the EU "taxonomy" rulebook from 2023, enabling investors to label and market investments in them as green.
  • EU financial services chief Mairead McGuinness said "The Complementary Delegated Act is a pragmatic proposal to ensure that private investments in gas and nuclear, needed for our energy transition, meet strict criteria".
  • Slovakian Prime Minister Eduard Heger said the vote result was good for energy security and emissions-cutting targets.

We are Invested in US based uranium explorer GTI Energy (ASX: GTR) because we think nuclear power has one of the lowest carbon-footprints and highest utility rate of all renewable energy technologies currently available.

We think this, combined with its ability to operate on an almost 24/7 basis, makes nuclear power the ideal source for baseload energy generation.

This is where our exposure to GTR comes into play. With uranium being the primary fuel source for nuclear power, we think it is a critical mineral for a green future.

To see all of the key reasons why we are Invested in GTR and the key objectives we want to see the company achieve in 2022 check out our 2022 GTR Investment Memo by clicking here.

EU Parliament to consider gas a "Green" energy source

Jul 07, 2022

Macro: Natural Gas


Overnight, EU lawmakers voted in favour of labelling gas and nuclear power as “green” as part of the continent’s plan to transition away from fossil fuels.

We’ve long been of the view that gas is the natural transitional fuel that can bridge the gap between fossil fuels and cleaner energy sources.

Burning gas to produce power has a far lower carbon footprint compared to coal and oil, with the added benefit of having all of the infrastructure in place to produce and consume it.

We think that the world is ready to embrace it as part of the energy mix for the next decade and potentially beyond that. As a result, we hold several Investments in companies looking to supply gas to energy hungry parts of the world.

The following Reuters article provides an overview of the proposed EU legislation:

Read the full article here.

Our key takeaways:

  • On Wednesday the European parliament backed EU rules labelling investments in gas and nuclear power plants as climate-friendly.
  • The vote in favour of the proposal means the EU can now look to pass the proposal into law. The only risk facing the proposal is if 20 of the EU’s 27 member states oppose the move.
  • The new rules will add gas and nuclear power plants to the EU "taxonomy" rulebook from 2023, enabling investors to label and market investments in them as green.
  • EU Financial Services Chief Mairead McGuinness said "The Complementary Delegated Act is a pragmatic proposal to ensure that private investments in gas and nuclear, needed for our energy transition, meet strict criteria".
  • Slovakian Prime Minister Eduard Heger said the vote result was good for energy security and emissions-cutting targets

To see the Investment Memos for these companies click on the links below:

Elixir Energy (ASX: EXR)

  • Exploration stage, coal bed methane gas, Mongolia

Invictus Energy (ASX: IVZ)

  • Exploration stage, gas, Zimbabwe

Top End Energy (ASX: TEE)

  • Exploration stage, gas, Northern Territory

More visible gold intercepts, assays coming soon

ASX:TMR   Jul 07, 2022 Announcement

Investment Memo: TMR IM-2022
Objective 1 : Make new discoveries at the Canadian gold project.


This morning our gold exploration Investment Tempus Resources (ASX: TMR) released more preliminary drilling results, reporting more visible gold intercepts at the Blue Vein discovery at its Canadian gold project.

This is the second set of visible gold intercepts since TMR started its 2022 drilling program on 30 May 2022.

TMR has completed ~2,200 metres of drilling over nine holes targeting the Blue Vein. Assays for the first few holes are pending, with results expected over the next few weeks.

This year’s program consists of up to 30 drillholes (for ~8,500m) focused on the following targets:

  • Blue Vein discovery: 15 drillholes targeting extensions to the previous high grade gold intercepts. (First 9 holes drilled here with two visible gold intercepts to date).

  • Main and West veins: 10 drillholes targeting extensions to both discoveries.

  • Ella Zone: 3 drillholes following up a 2m intercept made last year.

  • Exploration holes: up to 5 drillholes focused on making new discoveries.

With assays pending and another ~21 drillholes to be completed, we are looking forward to the newsflow coming from TMR’s 2022 exploration program.

Highly encouraging testwork paves way for Scoping Study

ASX:LCL   Jul 07, 2022 Announcement

Investment Memo: LCL IM-2022
Objective 3 : Commence scoping studies


Colombian-focused gold explorer, Los Cerros (ASX:LCL), has described results from metallurgical testwork at the Quinchia Gold Project’s Tesorito deposit as “highly encouraging”.

LCL has a substantial bank of established resources at Quinchia and the company is now focussed on creating value through building confidence in these resources.

We note that LCL offers substantial leverage to the upside — it is trading on a very low Enterprise Value of <$4M, with existing funds of ~$14M (as at 28 June) and a current market cap of $18.2M.

This first round of Tesorito metallurgical test work was designed to assess physical and metallurgical characteristics of the major lithology types in the Tesorito deposit, and to assess amenability to conventional grinding, gravity, and leach/adsorption processing routes.

Results included:

  • 97% recovery of gold from saprolite and 87% from other units (derived from 24 hour whole ore gold leach tests);
  • An optimal grind size of p80 ~75 micron, which is fine grind and typical of porphyry gold ores;
  • Deleterious elements such as arsenic, mercury, organic carbon and soluble copper are all low and of no processing concern.

LCL also noted that silver recoveries and commentary on potential processing pathways are pending and that gravity beneficiation would add no benefits so is not a required step.

These encouraging met’ test results are an important step to building a PEA (Preliminary Economic Assessment) around the project’s potential production scenarios.

LCL has outlined three broad production base case configurations to be investigated under the PEA framework.

  1. Plant designed and sized based on the Miraflores Underground Reserve. Subsequent expansion or modifications in outer years to then accommodate new materials from other sites within Quinchia (including Tesorito).
  2. Plant designed and sized on Miraflores (as above) plus a potential high grade starter pit at Tesorito, incorporating additional feed in later years.
  3. Plant sized and designed based on Total Quinchia Resources.

The completion of the PEA will go towards LCL meeting our Objective #3 for the company for this year: Commence scoping studies, as outlined in our LCL Investment Memo.

Bill Gates backs start-up for hydrogen storage & transportation

Jul 06, 2022

Macro: Hydrogen


The following Bloomberg article looks at a Bill Gates backed investment in the hydrogen mobility space.

Read the full article here.

Below are our key takeaways from the article:

  • A key part of having hydrogen form part of the global energy mix is to find a way to store and transport it effectively.
  • Spanish startup H2Site is aiming to do this and just secured €12.5M in investments from Bill Gates-led Breakthrough Energy Ventures, French utility Engie SA and Norwegian oil giant Equinor ASA.
  • Current existing methods to store and transport hydrogen are expensive, especially when compared to gas storage/transportation.
  • H2Site aims to find technological solutions to use existing natural-gas pipelines to move hydrogen by diluting natural gas with ~30% hydrogen before being recovered using H2SITE’s filter where it needs to be consumed. The process would use a palladium alloy with the aim of filtering hydrogen at 99.9% purity from a pipe carrying between 5% and 30% hydrogen.
  • Another technology being focused on is transportation via ships within ammonia and methanol. The aim being that projects like the ones in Australia where hydrogen is converted into ammonia then transported using ships could then have hydrogen recovered by undoing the chemical reaction after shipping is completed.

In summary, the article speaks to the volume of capital pouring into the downstream technologies that are required to build up a sound and efficient hydrogen supply chain.

For hydrogen to become a part of the energy mix the infrastructure required to produce, transport and then consume it all needs to be developed to the standards of current energy technologies.

With institutional capital and big names like Bill Gates now making investments into the hydrogen space we think it is a matter of WHEN not IF for the hydrogen sector.

Historically, our best performing Investments have come from industries where we have Invested well ahead of institutional capital arriving on the scene. Our Investments in the green hydrogen space are no different.

The following companies held in our Portfolio provide exposure to an industry that we think is on the cusp of exponential growth:

Province Resources (ASX: PRL)

  • Feasibility stage, green hydrogen, WA (Australia)

Elixir Energy (ASX: EXR)

  • Scoping stage, green hydrogen, Mongolia

Minbos Resources (ASX: MNB)

  • Scoping stage, green hydrogen/ammonia, Angola

📈 Mark Creasy and IGO back $20.4M raise to accelerate drilling

ASX:GAL   Jul 06, 2022 Announcement

Investment Memo: GAL IM-2022
Risk 1 : Financing risk


This morning our long term exploration Investment Galileo Mining (ASX: GAL) came out of a trading halt having raised capital to accelerate drilling at its new PGE discovery in WA.

GAL managed to raise $20.4M via a placement at a share price of $1.20 per share with the shares expected to be issued on the 13th of July 2022.

Importantly, the placement closed oversubscribed with cornerstone investments by GAL’s major shareholders Mark Creasy and IGO for a combined $8.7M.

Before the placement mining billionaire Mark Creasy owned 24.82% of GAL and IGO 8.89% for a combined ownership of ~34%. After tipping in $8.7M of the $20.4M raised, we expect to see the combined shareholdings of the two increase.

The significance of this is that IGO has previously purchased projects from Mark Creasy backed companies, including the Nova mine for $1.8 billion and the Silver Knight discovery.

We think that the cornerstone investments from both Mark Creasy and IGO are a strong vote of confidence for the recent PGE discovery GAL made and show that there is institutional interest in the company’s projects.

GAL expects to have $26.5M in cash after the capital raise and is already putting the cash to work procuring a third RC drill program which is scheduled to begin at the end of July followed by a diamond drilling program planned to commence in August.

Next: We are eagerly waiting to see what comes from GAL’s ~4,000m of RC drilling to test for extensions to its new PGE discovery.

Gas shortage the catalyst for a global recession

Jul 06, 2022

Macro: Natural Gas


The following Bloomberg article shines a spotlight on the ripple effects high gas prices have on the global economy.

Read the full article here.

Our key takeaways:

  • Natural gas is the hottest commodity in the world right now. It’s a key driver of global inflation. Prices are up some 700% in Europe since the start of last year raising fears of a continent wide energy induced recession.

  • Russia is cutting back on pipeline deliveries to Europe, the scramble to fill that gap is turning into a worldwide shortage.

  • Germany says gas shortfalls could trigger a Lehman Brothers-like collapse, as Europe’s economic powerhouse faces the unprecedented prospect of businesses and consumers running out of power.

  • The German government is in talks to bail out utilities which are losing some €30 million a day because it has to cover the missing Russian gas at soaring spot-market prices.

  • Deutsche Bank cited growing risks of an “imminent German recession on the back of energy rationing,” and pointed to soaring power prices in Italy and France too. Morgan Stanley also predict that the whole of Europe will be in a downturn by year-end.

The Bloomberg article focuses on the repercussions gas shortages are having on the EU and the German economy in particular.

The German economy is one of the key pillars of the EU region, with a strong manufacturing industry making it an exporting powerhouse. The country is therefore heavily reliant on reliable energy supplies to keep this part of its economy functioning.

The fear that the Bloomberg article highlights is how a shortage in gas supplies or heightened prices could force shutdowns and lead to a recession.

We think this applies not only to the German economy and the EU but to the rest of the world also. With gas likely to become a more important part of the energy mix as the world transitions away from coal and oil we think investment into new supply will need to accelerate.

As a result we hold the following companies as Investment exposures to natural gas. To see the Investment Memos for these companies click on the links below:

Elixir Energy (ASX: EXR)

  • Exploration stage, coal bed methane gas, Mongolia

Invictus Energy (ASX: IVZ)

  • Exploration stage, gas, Zimbabwe

Top End Energy (ASX: TEE)

  • Exploration stage, gas, Northern Territory

Traditional owner consents secured for green hydrogen project

ASX:PRL   Jul 05, 2022 Announcement

Investment Memo: PRL IM-2022
Objective 2 : Secure key stakeholder support


This morning our green hydrogen investment, Province Resources (ASX: PRL) announced progress with respect to securing key stakeholder support for its green hydrogen project in WA.

PRL announced that it has secured land access consent from native title groups covering ~870 square kilometres of land.

Importantly, these consents are a prerequisite for the WA Government to issue Section 91 licences, giving PRL the access it needs to start feasibility study works. So far PRL has secured two Section 91 licences.

PRL also confirmed that it is “continuing discussions with pastoralists, local government and other stakeholders to finalise tenure for the project”.

Securing land access arrangements can be a big hurdle to overcome given the large land footprint a project as big as PRL’s would be situated on. Effectively, without the support of key stakeholder groups, there would be no project to develop.

What’s next: We are watching to see PRL execute its Joint Development Agreement (JDA) with Total Eren which is now due by 31 July 2022.

Promising results from DXB’s R&D pipeline

ASX:DXB   Jul 04, 2022

Investment Memo: DXB IM-2022


Our 2021 Biotech Pick of the Year Dimerix (ASX:DXB) today announced promising results from a preclinical study on DMX-700, an early-stage oral treatment for a life-threatening lung disease - COPD (Chronic Obstructive Pulmonary Disease).

Note that this technology is different to the treatment used in Phase III clinical trial FSGS - our “Main Bet”.

The results showed that DMX-700 provided an 80% reduction in induced lung injury in mice compared to a control group - a statistically significant amount to progress to a clinical trial.

Although this news does not fit into the current objectives we set for our DXB Investment, we think that it adds value to the story, in particular as an extra ‘shot on goal’ targeting a big and important market.

COPD is the third leading cause of death worldwide, and the global market for COPD is valued at US$17B.

There is a significant unmet need for COPD treatment and given the severity of the disease, the FDA in 2018 issued revised guidance to accelerate clinical trials.

We are looking forward to tracking the progress of DMX-700 through to clinical trials and are paying attention to regulatory applications and approvals.

Today’s announcement showcases DXB’s ability to maintain and progress a healthy R&D pipeline - an important part of any biotech smallcap.

Solutions being sought for the food crisis in Africa

ASX:MNB   Jul 04, 2022

Investment Memo: MNB IM-2022


The following Bloomberg article highlights the impacts of the Russia/Ukraine conflict on the food crisis issue across Africa.

Read the full article here.

Key takeaways:

  • 49 million people in 43 countries are facing famine, according to the head of the United Nations World Food Program, David Beasley.
  • Global food prices surged to a record after Russia’s invasion of Ukraine disrupted grain and vegetable oil exports.
  • Grains shortages have driven up prices, with global benchmarks for wheat and corn rising 22% and 12% respectively this year.
  • Food costs account for 40% of consumer spending in sub-Saharan Africa, compared with 17% in advanced economies.
  • In 2020, Africa imported $4 billion of agricultural products from Russia - 90% of that was wheat. Another $2.9 billion of wheat, corn, sunflower oil, barley and soy came from Ukraine, according to Sihlobo.
  • Data also shows that Eritrea and Somalia were almost entirely dependent on Russia and Ukraine for their wheat supplies last year, while Tanzania, Namibia and Madagascar relied on them for more than 60% of supplies.

The article discusses the political viewpoint on the food crisis and brings home just how big of an issue is facing Africa when it comes to food security.

This is where our Portfolio company Minbos Resources (ASX: MNB) fits in.

With its shovel ready phosphate (a key ingredient in producing the fertilisers) project in Angola, MNB could bring into production a project that helps build out an agricultural industry that can alleviate the reliance on agricultural imports across Africa.

MNB is currently working towards a final Investment decision on its project, with the aim of having the project operational in 2023.

To see all of the key reasons we are Invested in MNB, what we want to see the company achieve in 2022, and the key risks to our Investment thesis, check out our 2022 MNB Investment Memo here.

💪 IGO & Mark Creasy cornerstone investors in GAL's cap raise

ASX:GAL   Jul 04, 2022 Announcement

Investment Memo: GAL IM-2022
Investment Thesis 3 : Experienced management team


This morning our long term exploration Investment Galileo Mining (ASX: GAL) went into a trading halt “pending the release of an announcement in relation to a capital raising”.

The AFR reports that, “The term sheet sent to potential investors said Galileo would raise $20 million at $1.20 per share” with IGO and ‘mining billionaire’ Mark Creasey expected to cornerstone the raise.

Read the full article here.

Below are our key takeaways:

  • These cornerstone investments from IGO and Mark Creasy come just weeks after the AFR said fund managers believed that IGO was on the hunt for something to buy in the Fraser Range, with GAL seen as the best possible fit.
  • IGO already owns (~8.89%) and Mark Creasy owns (24.82%) of GAL (before the capital raise).
  • IGO has previously purchased projects from Mark Creasy backed companies, including the Nova mine and the Silver Knight discovery.

With GAL’s recent PGE discovery and its current drilling to test for extensions to grow the size of the discovery, the cornerstone investments are just another vote of confidence for what GAL has on its hands.

We are yet to see how the capital raise plays out in its entirety, but we are looking forward to seeing just how much of the reported $20M is taken up by IGO and Mark Creasy.

Next: We are eagerly waiting to see what comes from GAL’s ~4,000m of RC drilling to test for extensions to its new PGE discovery.

Bill Gates “Green hydrogen would be massive for clean energy”

Jul 04, 2022

Macro: Hydrogen


Investment Memo: PRL 2022, EXR 2022, MNB 2022

General: Macro


The following LinkedIn post from Bill Gates shines the spotlight on green hydrogen as a technology solution for a transition towards cleaner fuel sources.

Read the LinkedIn post here.

When major investors start to talk up a particular technology it is generally a leading indicator for massive institutional capital flows into the sector. And Gates is not just a commentator, but an investor in renewable energy and the transition towards lower emission fuel sources.

(Here is an article on one of Gates’ latest ventures in the space: Bill Gates-Led Fund Backs Startup With Cheaper Way to Move Hydrogen)

For a long time institutional investors have avoided making large scale investments into the green hydrogen space, but that now looks to be changing extremely rapidly.

Historically, our best performing Investments have come from industries where we have Invested well ahead of institutional capital arriving on the scene.

Our Investments in the green hydrogen space are no different. We tend to agree with Bill Gates, that green hydrogen has a place in the transition towards clean energy technologies.

The following companies held in our Portfolio provide exposure to an industry that we think is on the cusp of exponential growth:

Province Resources (ASX: PRL)

  • Feasibility stage, green hydrogen, WA (Australia)

Elixir Energy (ASX: EXR)

  • Scoping stage, green hydrogen, Mongolia

Minbos Resources (ASX: MNB)

  • Scoping stage, green hydrogen/ammonia, Angola

✅ Drilling commences at Hellcat

ASX:PFE   Jul 04, 2022 Announcement

Investment Memo: PFE IM-2022
Objective 1 : Drilling of the newly acquired Lead/Silver project.


The newsflow is about to accelerate for our cashed-up, multi-commodity exploration investment Pantera Minerals (ASX:PFE).

This is as drilling is now underway at PFE’s most recent acquisition, its Hellcat polymetallic project in WA’s Edmund Basin. In addition, a maiden drilling campaign is about to begin at PFE’s manganese project, Weelarana later this month.

As we reported in our most recent update on PFE, drilling is typically the period of most excitement for juniors - especially when it is the first drilling program on freshly identified targets.

At Hellcat, a 1,700 metre diamond drilling program is underway, which should be completed in September. The program will test several high priority gravity targets and modelled electromagnetic conductors.

Hellcat is located near to one of the region’s most significant discoveries of the past two decades, Galena Mining’s (ASX:G1A) ‘Abra’ polymetallic deposit. Furthermore, Hellcat shares the same stratigraphic and structural setting as Abra, alongside a similar geophysical signature.

PFE holds an 80% interest in Hellcat.

This fits in with our #2 Objective we want to see PFE deliver this year.

Next up for PFE will be the commencement of drilling at Weelaranna, followed by assay results at both projects.

Promising results from DXB’s R&D pipeline

ASX:DXB   Jul 04, 2022

Investment Memo: DXB IM-2022


Our 2021 Biotech Pick of the Year Dimerix (ASX:DXB) today announced promising results from a preclinical study on DMX-700, an early-stage oral treatment for a life-threatening lung disease - COPD (Chronic Obstructive Pulmonary Disease).

Note that this technology is different to the treatment used in Phase III clinical trial FSGS - our “Main Bet”.

The results showed that DMX-700 provided an 80% reduction in induced lung injury in mice compared to a control group - a statistically significant amount to progress to a clinical trial.

Although this news does not fit into the current objectives we set for our DXB Investment, we think that it adds value to the story, in particular as an extra ‘shot on goal’ targeting a big and important market.

COPD is the third leading cause of death worldwide, and the global market for COPD is valued at US$17B.

There is a significant unmet need for COPD treatment and given the severity of the disease, the FDA in 2018 issued revised guidance to accelerate clinical trials.

We are looking forward to tracking the progress of DMX-700 through to clinical trials and are paying attention to regulatory applications and approvals.

Today’s announcement showcases DXB’s ability to maintain and progress a healthy R&D pipeline - an important part of any biotech smallcap.

Solutions being sought for the food crisis in Africa

ASX:MNB   Jul 04, 2022

Investment Memo: MNB IM-2022


The following Bloomberg article highlights the impacts of the Russia/Ukraine conflict on the food crisis issue across Africa.

Read the full article here.

Key takeaways:

  • 49 million people in 43 countries are facing famine, according to the head of the United Nations World Food Program, David Beasley.
  • Global food prices surged to a record after Russia’s invasion of Ukraine disrupted grain and vegetable oil exports.
  • Grains shortages have driven up prices, with global benchmarks for wheat and corn rising 22% and 12% respectively this year.
  • Food costs account for 40% of consumer spending in sub-Saharan Africa, compared with 17% in advanced economies.
  • In 2020, Africa imported $4 billion of agricultural products from Russia - 90% of that was wheat. Another $2.9 billion of wheat, corn, sunflower oil, barley and soy came from Ukraine, according to Sihlobo.
  • Data also shows that Eritrea and Somalia were almost entirely dependent on Russia and Ukraine for their wheat supplies last year, while Tanzania, Namibia and Madagascar relied on them for more than 60% of supplies.

The article discusses the political viewpoint on the food crisis and brings home just how big of an issue is facing Africa when it comes to food security.

This is where our Portfolio company Minbos Resources (ASX: MNB) fits in.

With its shovel ready phosphate (a key ingredient in producing the fertilisers) project in Angola, MNB could bring into production a project that helps build out an agricultural industry that can alleviate the reliance on agricultural imports across Africa.

MNB is currently working towards a final Investment decision on its project, with the aim of having the project operational in 2023.

To see all of the key reasons we are Invested in MNB, what we want to see the company achieve in 2022, and the key risks to our Investment thesis, check out our 2022 MNB Investment Memo here.

💪 IGO & Mark Creasy cornerstone investors in GAL's cap raise

ASX:GAL   Jul 04, 2022 Announcement

Investment Memo: GAL IM-2022
Investment Thesis 3 : Experienced management team


This morning our long term exploration Investment Galileo Mining (ASX: GAL) went into a trading halt “pending the release of an announcement in relation to a capital raising”.

The AFR reports that, “The term sheet sent to potential investors said Galileo would raise $20 million at $1.20 per share” with IGO and ‘mining billionaire’ Mark Creasey expected to cornerstone the raise.

Read the full article here.

Below are our key takeaways:

  • These cornerstone investments from IGO and Mark Creasy come just weeks after the AFR said fund managers believed that IGO was on the hunt for something to buy in the Fraser Range, with GAL seen as the best possible fit.
  • IGO already owns (~8.89%) and Mark Creasy owns (24.82%) of GAL (before the capital raise).
  • IGO has previously purchased projects from Mark Creasy backed companies, including the Nova mine and the Silver Knight discovery.

With GAL’s recent PGE discovery and its current drilling to test for extensions to grow the size of the discovery, the cornerstone investments are just another vote of confidence for what GAL has on its hands.

We are yet to see how the capital raise plays out in its entirety, but we are looking forward to seeing just how much of the reported $20M is taken up by IGO and Mark Creasy.

Next: We are eagerly waiting to see what comes from GAL’s ~4,000m of RC drilling to test for extensions to its new PGE discovery.

Bill Gates “Green hydrogen would be massive for clean energy”

Jul 04, 2022

Macro: Hydrogen


Investment Memo: PRL 2022, EXR 2022, MNB 2022

General: Macro


The following LinkedIn post from Bill Gates shines the spotlight on green hydrogen as a technology solution for a transition towards cleaner fuel sources.

Read the LinkedIn post here.

When major investors start to talk up a particular technology it is generally a leading indicator for massive institutional capital flows into the sector. And Gates is not just a commentator, but an investor in renewable energy and the transition towards lower emission fuel sources.

(Here is an article on one of Gates’ latest ventures in the space: Bill Gates-Led Fund Backs Startup With Cheaper Way to Move Hydrogen)

For a long time institutional investors have avoided making large scale investments into the green hydrogen space, but that now looks to be changing extremely rapidly.

Historically, our best performing Investments have come from industries where we have Invested well ahead of institutional capital arriving on the scene.

Our Investments in the green hydrogen space are no different. We tend to agree with Bill Gates, that green hydrogen has a place in the transition towards clean energy technologies.

The following companies held in our Portfolio provide exposure to an industry that we think is on the cusp of exponential growth:

Province Resources (ASX: PRL)

  • Feasibility stage, green hydrogen, WA (Australia)

Elixir Energy (ASX: EXR)

  • Scoping stage, green hydrogen, Mongolia

Minbos Resources (ASX: MNB)

  • Scoping stage, green hydrogen/ammonia, Angola

✅ Drilling commences at Hellcat

ASX:PFE   Jul 04, 2022 Announcement

Investment Memo: PFE IM-2022
Objective 1 : Drilling of the newly acquired Lead/Silver project.


The newsflow is about to accelerate for our cashed-up, multi-commodity exploration investment Pantera Minerals (ASX:PFE).

This is as drilling is now underway at PFE’s most recent acquisition, its Hellcat polymetallic project in WA’s Edmund Basin. In addition, a maiden drilling campaign is about to begin at PFE’s manganese project, Weelarana later this month.

As we reported in our most recent update on PFE, drilling is typically the period of most excitement for juniors - especially when it is the first drilling program on freshly identified targets.

At Hellcat, a 1,700 metre diamond drilling program is underway, which should be completed in September. The program will test several high priority gravity targets and modelled electromagnetic conductors.

Hellcat is located near to one of the region’s most significant discoveries of the past two decades, Galena Mining’s (ASX:G1A) ‘Abra’ polymetallic deposit. Furthermore, Hellcat shares the same stratigraphic and structural setting as Abra, alongside a similar geophysical signature.

PFE holds an 80% interest in Hellcat.

This fits in with our #2 Objective we want to see PFE deliver this year.

Next up for PFE will be the commencement of drilling at Weelaranna, followed by assay results at both projects.

Drilling update at flagship gold project

ASX:LCL   Jun 29, 2022 Announcement

Investment Memo: LCL IM-2022
Objective 2 : Test if LCL's two gold systems are connected by drilling in-between them


Our junior gold investment Los Cerros (ASX:LCL) yesterday provided a progress update on drilling at its flagship Quinchia Project in the mid-Cauca gold porphyry belt of Colombia. Quinchia already has an established JORC Mineral Resource of 2.6Moz @ 1g/t Au, all within a 3km radius.

Drill results from six holes have now been delivered, namely:

Central Target/Miraflores Deep – a second drillhole (TS-DH61) testing the Central Target between Miraflores and Tesorito deposits and beneath the Miraflores gold resource, returned 393m @ 0.19g/t Au. This shows extensive continuity of gold mineralisation, and is a promising signal that more ounces could ultimately be added to the Miraflores gold resource, which stands at 0.87Moz, including reserves of 0.45Moz Au.

Recall that the first drillhole (TS-DH57) here did not find the potential “Jabba the Blob” porphyry connecting Tesorito and Miraflores that we had initially hoped for, but instead identified Miraflores type breccias 500m below deepest historical drilling. This pointed to a large-scale hydrothermal system, extending from the Miraflores breccia pipe both laterally and at depth. Our in-depth coverage of these results can be found here.

A third hole is now underway to follow up these promising results, seeking to confirm further gold mineralisation below the Miraflores deposit.

Ceibal – results from three drill holes that followed up on two previous moderate grade, gold intercepts (500m @ 0.52g/t Au in CEDDH01, and 586m @ 0.51g/t Au in CEDDH02, both from surface) from late last year. No extensive gold mineralisation was encountered in any of the holes, and so the hunt for the causative porphyry source continues.

Tesorito North/Claras - two holes were drilled to test the southern edge of a +400m gap along the Marmato Fault between northern most Tesorito drilling and the Claras blind porphyry target, ~1km to the north of Tesorito. The assays for both holes returned only low gold mineralisation.

On the trading front, there has been a robust sell off of LCL shares recently, perhaps tied in with uncertainty related to the newly elected Colombian Government as well as general bearish sentiment for the junior exploration sector.

That said, we like that LCL has an extremely robust balance sheet, with $14M cash in the bank and no debt (vs its current market cap of ~$25M, for an EV of ~$11M). This means that it is highly unlikely that the company will need to raise further capital this year.

With LCL having earlier defined a resource at Tesorito, our LCL objective #1 for the year has already been achieved.

Next we want to see progress on our #3 LCL Objective - the PEA (Preliminary Economic Assessment or Scoping Study) is taking place alongside its extensive exploration program.

Of note, LCL stated in yesterday’s announcement that the PEA would be more of a focus given current market conditions, whilst conserving cash by reducing speculative drilling:

We look forward to an update on the PEA, likely within the upcoming quarterly report in late July.

See our LCL Investment Memo for our Investment strategy, key risks, and all of our objectives for LCL for 2022 here.

Side Bet #2: Covid-19 trial recruitment closed, results soon.

ASX:DXB   Jun 28, 2022 Announcement


Investment Memo: DXB 2022

Objective #3: Complete Phase III Clinical Trial to treat pneumonia in patients with COVID-19 (REMAP CAP)


Yesterday our 2021 Biotech Pick of the Year Dimerix (ASX:DXB) announced that recruitment for one of its two Phase III COVID-19 trials (Side Bets) is now closed.

In February, recruitment for critically ill patients in this particular Side Bet was paused due to safety complications unrelated to DXB’s treatment. Recruitment has now officially closed.

The efficacy results will be analysed and published soon, however we don’t expect that to be enough patients in the trial to warrant commercialisation based on the results.

That said, these results will add to a growing body of evidence to support DXB’s lead treatment “DMX-200” capacity to reduce inflammation, and may lead to better targeted clinical trials for patients with pneumonia in the future.

For DXB, this investigator-led study was a ‘free swing’ with the majority of the study funded by a $1M government grant from last year.

DXB still has one more active Phase III study for COVID-19, targeting patients with mild COVID, while the main prize is the Phase III FSGS clinical for a rare kidney disease trial that is currently underway.

What’s next for DXB?: We are awaiting patient recruitment updates for DXB’s FSGS trial, with the key number being 72 patients recruited by the end of this year.

Rig secured, drilling at newly acquired gold project in July.

ASX:TG1   Jun 28, 2022 Announcement


Investment Memo: TG1 2022

Key Objective #1: Drilling at the newly acquired gold project


This morning our junior exploration Investment Techgen Metals (ASX: TG1) confirmed that it has secured an RC rig for its upcoming drilling program at its gold project in NSW.

With the RC drilling rig secured, TG1 expects its drilling program to commence on 15 July 2022.

We covered the various targets TG1 has identified at its gold project in our most recent TG1 note which you can read here: Microcap TG1 pinpoints gold drill targets.

TG1’s gold project has historic surface trenching results which returned results of 160m @ 1.2 g/t gold including higher grade intervals of 5m @ 18.0 g/t gold and 5m @ 7.1 g/t gold.

After reprocessing some historic IP survey data, TG1 has also identified IP chargeability anomalies right below this surface trenching work.

Importantly, none of these targets have been drilled before, and TG1 will be the first company to drill test the structures beneath the surface trenching work.

Stifel to advise EMN on project finance

ASX:EMN   Jun 28, 2022 Announcement


Investment Memo: EMN 2022

Objective #4: Early Progress on Project Financing


It’s good to see our European battery metals Investment Euro Manganese (ASX:EMN) getting its financing ducks in a row ahead of the commissioning of its Demonstration Plant.

EMN appointed US financial services company Stifel (market cap ~US$6B) as Project Finance Advisor for EMN’s Czech Republic high-purity manganese project.

Stifel is very experienced in the battery metals financing space, and is expected to help with moving EMN towards a final investment decision in 2023.

This appointment is good progress on Objective #4 from our EMN Investment Memo:

What’s next for EMN? Completion of the Feasibility Study for the Chvaletice Manganese Project is expected in the coming weeks. EMN has been in “quiet execution mode” for the first half of this year but we expect the second half of the year to be a busy period for EMN with plenty of news flow.

3D Seismic data to help define drill targets and secure funding?

ASX:88E   Jun 27, 2022 Announcement


Investment Memo: 88E 2022
Objective #2: Funding partner for Project Icewine

Objective #3: Clear Exploration Program laid out for Project Icewine



This morning, our oil and gas exploration Investment 88 Energy (ASX: 88E) put out an update on its Project Icewine in Alaska, USA.

88E announced an agreement signed with SAExploration which would see 88E gain access to 3D seismic survey data over its Project Icewine east leases.

Importantly, the 3D seismic data actually covers the area over the reservoir units that 88E’s neighbour Pantheon Resources’ (capped at $1.2 billion) has been drilling and which are interpreted to extend from Pantheon’s acreage onto 88E’s.

Ultimately, 88E will be using the 3D seismic data to identify “sweet spots” for each of the reservoir units and to determine the optimal drilling locations for future exploration and appraisal wells.

To gain access to the 3D seismic data 88E is paying US$1M via a share issuance at 0.8c per share with the shares expected to be issued on the 30th of June 2022.

Ultimately, 88E will be using the 3D seismic data to identify “sweet spots” for each of the reservoir units and to determine the optimal drilling locations for future exploration and appraisal wells.

88E also confirmed that the datasets would provide key data for potential farm-out partners as part of their due diligence programs leading up to the drilling of a new exploration well, currently being planned for drilling in 2023.

Due diligence period extended on copper acquisition

ASX:MAN   Jun 27, 2022 Announcement


Investment Memo: MAN 2022

Objective #1: Complete 12 week due diligence period and proceed with acquisition


This morning, our junior exploration investment Mandrake Resources (ASX: MAN) updated the market with respect to the progress being made with its new copper acquisition in Chile.

MAN first announced the acquisition of the “Delfin” copper project on the 25th of March this year and since then has been conducting due diligence on the project.

Today, MAN confirmed that it had secured a two month extension to its diligence period at no extra cost, taking the due diligence period end date to 24 August 2022.

MAN also confirmed that the due diligence extension would allow it to complete all of the required works that would ensure a clear pathway to commencing exploration activities as soon as the acquisition is completed.

We are looking forward to MAN completing the acquisition given that the project sits in one of the most copper rich regions on the planet. The world's biggest copper mine, operated by BHP/Rio Tinto and contributing ~5% of global copper production, sits only ~100km away from MAN’s project.

We covered the acquisition in detail in our last MAN note which you can read here: Cashed up MAN picks up high grade Chilean copper asset

Trading halt, flow test results pending.

ASX:GGE   Jun 27, 2022 Announcement


Investment Memo: GGE 2022

Objective #1: Drilling of first well


Our 2021 Catalyst Hunter Pick of The Year Grand Gulf Energy (ASX: GGE) just went into a trading halt pending the flow test results from its potential company making pure play helium well in Utah, USA.

We have been looking forward to GGE completing and then reporting on the results from this drilling program ever since we first Invested back in October 2021.

Only 9 months later we get to see whether or not GGE has in fact made a new helium discovery in the US, which could see it go from explorer to producer off the back of one drilling program.

GGE expects to come out of a trading halt at the earliest of “the commencement of normal trading on Wednesday, 29 June 2022 or when the announcement is released to the market” so we only have to wait another two days.

In our last note on GGE we detailed our bullish, base and bearish case expectations for the flow test results, to read that note click here.

New products planned as bedding market hit

ASX:AJX   Jun 27, 2022 Announcement


Investment Memo: AJX 2022

Objective #2: New Markets Cooling Technology


Alexium International Group Limited (ASX: AJX) has outlined its planned H1 2023 commercial initiatives for microclimate regulation. These include new retail product releases under the Biocool and Eclipsys product lines for body armor, mattress, and top of bed applications.

While AJX’s focus has historically been on the bedding market, the evolution of its product portfolio sees the company primed to grow into Phase II markets —  body armor, helmet, and shoe markets.

Over the past three years, AJX has significantly expanded its product portfolio to create solutions for a wide array of microclimate regulation-related issues:

AJX plans to release new products both in its existing platforms and new platforms to round out its microclimate regulation product portfolio. Leveraging this product portfolio is the key to the company’s strategy for driving growth in 1H FY23.

The commercialisation of new microclimate regulation products and improving the market penetration of existing products has been critical to growing revenues.

News of these upcoming products releases is inline with our Objective #2: New Markets Cooling Technology for AJX, as per our 2022 Investment Memo.

AJX also provided an update on our #1 Objective - Cash Flow positive

AJX says that in H2 FY2022 global macroeconomic conditions have suppressed economic growth expectations and this is being seen across the US bedding/mattress market.

As such, AJX expects revenue to fall in H2 FY2022. However, having increased its market share over the past five months, AJX forecast a “significant rebound in bedding revenue once the economy recovers”.

To address lower consumer spending, AJX is accelerating the availability of its technology for higher-volume, lower-value bedding accessories such as pillows and mattress toppers. These Biocool and/or Eclipsys-branded products will be sold in US department stores and online beginning in 1H FY23.

Target Markets for Microclimate Regulation (Sphere size represents the addressable market size)
Target Markets for Microclimate Regulation (Sphere size represents the addressable market size)

Body armor demand, meanwhile, is largely insulated from general consumer spending. On that front, three customers have completed testing and approved Eclipsys for incorporation in their body armor products and another 30 prospective customers are now evaluating Eclipsys.

Stellantis to become a substantial shareholder, invests $76M

ASX:VUL   Jun 24, 2022 Announcement


Investment Memo: VUL 2022

Objective #2: Secure Project Financing

Objective #5: More Strategic Partnerships


Vulcan Energy Resources (ASX:VUL) today announced that it has agreed to a A$76M (€50M) equity investment from Stellantis N.V., plus a 5-year extension to their offtake agreement.

This investment marks the world’s first upstream investment by a top tier automaker into a listed lithium company.

We were very surprised (positively) by this announcement - having a key offtaker as a substantial shareholder is a huge win for VUL, and a strong signal to the broader lithium market that has been rattled in recent weeks.

Not to mention a material cash injection at a time of tightening capital markets.

Once the fully paid ordinary shares are issued, Stellantis will become the company’s second largest shareholder with a 8% shareholding. The shares are to be issued at the 30-day Volume Weighted Average Price of A$6.622 (€4.367) per share, representing ~11.45M shares.

Stellantis is one of the world’s leading automakers and has 14 vehicle brands and two mobility companies — Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep®, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2move and Leasys.

It also has one of the largest electrification and decarbonisation plans of any automaker globally: to reach 100% of European passenger car sales to be battery electric vehicles (BEV) by 2030.

On that note, Carlos Tavares, Stellantis CEO, said, “this highly strategic investment in a leading lithium company will help us create a resilient and sustainable value chain for our European electric vehicle battery production”.

Today’s announcement sees further progress against two of our 2022 objectives for VUL, per our Investment Memo:

Objective #2 - Secure Project Financing

While VUL is already financed through to completion of its DFS, it plans to use the Stellantis proceeds for its planned production expansion drilling in its producing Upper Rhine Valley Brine Field.

Objective #5 - More strategic partnerships

VUL had already locked away much of its first five years of its initial forecast lithium production, including with Stellantis. Today’s announcement has extended that binding lithium hydroxide offtake agreement with Stellantis by five years, to 2035.

BOD to launch low dose CBD schedule 3 product

ASX:BOD   Jun 23, 2022 Announcement


Investment Memo: BOD 2022

Objective #2, Objective #3: Insomnia trial, Schedule 3 CBD product registration


Our cannabis Investment, BOD Australia (ASX:BOD) has just confirmed it intends to launch a new product in July for the Australian SAS-B channel (medicinal cannabis prescription).

Bio-Absorb 100 is a soft gel formula that delivers a low dose of CBD and is currently the product being used in BOD’s phase II insomnia trial.

Successful completion of that phase II trial is Objective #2 in our BOD Investment Memo, and subsequent registration of registration of Bio-Absorb 100 is Objective #3 in our BOD Investment Memo.

Here’s how we see today’s news helping BOD achieve these two Objectives:

  • It provides important product awareness ahead of a potential Schedule 3 registration (no prescription needed)
  • It will act as a good trial run for larger scale manufacturing by getting it in the market early

What’s next for BOD: We’re looking forward to recruitment updates from BOD about their insomnia trial which BOD says is progressing well. This is in addition to the Long-Covid trial. The Long-Covid trial is Objective #1 in our BOD Investment Memo and could unlock additional prescription sales while also giving

Stimulation work completed, flow testing next

ASX:GGE   Jun 23, 2022 Announcement


Investment Memo: GGE 2022

Objective #1: Drilling of first well


Our 2021 Catalyst Hunter Pick of The Year Grand Gulf Energy (ASX: GGE) is now almost ready to start flow testing it’s potentially company making pure play helium well in Utah, USA.

Today, GGE confirmed that it had completed stimulation work at its Jesse #1A well and is now completing the final preparation works leading up to the all important flow testing program.

GGE will perform several days of flow testing before final samples for helium concentrations will determine whether or not GGE has in fact made a new helium discovery.

In our last note on GGE we detailed our bullish, base and bearish case expectations for the flow test results, to read that note click here.

Purple specs of lithium intersected at lithium/rubidium project

ASX:ARN   Jun 23, 2022 Announcement


Investment Memo: ARN 2022

Key Objective #1: Drilling across the company’s rubidium/lithium projects


This morning our exploration investment Aldoro Resources (ASX: ARN) put out a drilling update for the RC drilling program being run at its lithium/rubidium project in WA (Wyemandoo).

As of today, ARN had completed a total of 26 RC holes for a total of 3,286m down to depths of ~202m. From these drillholes the majority of holes have intersected pegmatites.

Importantly today, ARN confirmed that it has intersected lithium and rubidium with purple lepidolite in the RC rock chips. The images look encouraging but the ultimate determinant of success will be the assay results which will determine just how much lithium ARN has found.

We also note that the intersection is largely lepidolite and not spodumene bearing pegmatites, this will mean the metallurgical testwork results will be important to see. ARN has confirmed that analytical & mineralogical works are ongoing and that results will be released shortly so it will be interesting to see what comes of this.

Off the back of these results, ARN also confirmed that it is currently going through the planning process to increase it’s drilling program from ~4,000m to 6,000m of total drilling.

Updated investor presentation

ASX:AKN   Jun 23, 2022 Announcement


Investment Memo: AKN 2022

General: Investor presentation


This morning our exploration Investment Auking Mining (ASX: AKN) released a new investor presentation.

The slide deck was put together ahead of a presentation the company made at the Gold Coast Investment Showcase Conference.

The presentation highlights the ongoing exploration activities AKN are currently undertaking and also provides an update on the metallurgical testwork that is ongoing at the Onedin deposit.

To check out the updated investor presentation click here, alternatively click on the image below:

Mt Carrington restated MRE gets TMZ close to 100Moz target

ASX:TMZ   Jun 22, 2022 Announcement



Investment Memo: TMZ 2022

Objective #1: Combine multiple deposits’ Mineral Resource Estimates to Hit 100 Moz AgEq (silver equivalent)


Today, our silver exploration Investment Thomson Resources (ASX:TMZ) released its restated Mt Carrington MRE to include base metals.

This gets TMZ mighty close to hitting the important 100Moz silver equivalent target that TMZ thinks is needed to make their “Hub and Spoke” strategy work.

The fresh look at Mt Carrington increases TMZ’s total resource base to 22.8 Mt at 119 g/t silver equivalent for 87.1 Moz of silver equivalent across the various deposits that TMZ is working with.

This 21% increase in tonnes was driven by a 2% increase in gold ounces, 17% increase in silver ounces and 100% increase in the zinc and copper tonnes.

We flagged how zinc and copper would be an important part of the Mt Carrington restated MRE given they had a good swathe of historical zinc and copper hits to incorporate.

Importantly, this was from just the Kylo and Strauss deposits at Mt Carrington with a cohesive and Mt Carrington-wide polymetallic resource to come.

We set out our bull, base and bear cases for TMZ in our latest note which can be found below:

What’s next for TMZ: We want to see TMZ complete all of its resource updates and come as close to our base case target of a portfolio wide 100m ounce silver equivalent JORC resource base. With metallurgical testwork ongoing, we are watching to see what comes from the rest of the Mt Carrington deposits (Guy Bell-Carrington-Lady Hampden-Silver King-White Rock).

AKN: Flagship base metals project progress update

ASX:AKN   Jun 22, 2022 Announcement


Investment Memo: AKN 2022

Key Objective #2: Metallurgical testwork progress


Earlier today, our junior base metals investment AuKing Mining (ASX:AKN) provided an update on recent activities at its flagship Koongie Park project in WA.

Koongie Park has an existing JORC resource of 8.9Mt at 1.01% copper, 3.67% zinc, 0.77% lead, 0.16g/t gold, and 26g/t silver, with drilling programs planned to expand this further.

The latest drilling campaign began on 24 May, and has now completed 16 RC (reverse circulation) holes for 2694 metres, primarily at the Onedin South prospect. Another 8 holes totalling at least 1000 metres is planned for the nearby Emull prospect. We can expect first assay results sometime in late July/ early August.

In addition, AKN provided some encouraging news on the metallurgical testwork for the oxide and transition ores at Onedin, quoting directly from today’s ASX announcement:

  • “An ammonia leach in conjunction with certain reagents has shown that some copper (and, to a lesser extent zinc) is releasing from the iron oxide/hydroxide material that is prevalent in the upper sections of the Onedin oxide zone; and
  • There exists a supergene blanket beneath the oxide zone that contains high grade copper oxide minerals (such as cuprite and native copper). Based on testwork utilising an ammonia leach solution combined with certain reagents, AKN has established a likely commercial recovery for these copper minerals in the supergene blanket zone.”

Whilst more met testwork is required, today’s news bodes well that a solution can be found that can ultimately result in the economic recovery of the valuable commodities within AKN’s flagship. This is what we want to see next from AKN, along with our #2 Objective from our AKN Investment Memo, namely the met results:

Next items we’re keeping our eyes open for are assay and further met testwork results in the next quarter.


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