UPDATE - TTM webinar this Wednesday morning at 1am AEST

ASX:TTM   Aug 15, 2022

Investment Memo:


Our gold exploration Investment Titan Minerals (ASX:TTM) is progressing the Dynasty gold project in the emerging exploration hotspot that is Ecuador. Dynasty hosts a 2.1Moz+ non-JORC gold resource, which the company intends to bring into JORC classification later this year.

Managing director Matthew Carr will be hosting a company webinar to update primarily North American investors - however, the webinar is open up for all. Just note that it starts at 1am AEST this Wednesday, 17 August.

Here is the link to register for the webinar.

The good news is that a replay link will be automatically emailed to all registrants once the webinar is completed, providing another way to access this for those interested but that might not be such an early riser.

NSW gold project drilling completed - Assays pending

ASX:TG1   Aug 15, 2022 Announcement

Investment Memo: TG1 IM-2022
Objective 1 : Drilling at the newly acquired gold project


This morning our micro cap exploration Investment TechGen Metals (ASX: TG1) completed its maiden drilling program at its newly acquired NSW gold project.

TG1’s drilling program involved seven RC drillholes over ~887 metres.

Importantly, drilling intersected quartz veining varying from 1 to 40% - which is a positive sign the company may be onto something here.

TG1’s drilling program was primarily targeting the geophysical anomaly located right beneath rock chip samples grading as high as 18g/t gold and right below a surface trench where gold mineralisation averaged 1.2g/t over ~160m.

TG1’s drilling program marks the first time these targets are being tested at depth. Assays are expected to be received in September.

In our last TG1 note, we set up some expectations for what we wanted to see from this drilling program, especially considering the drilling program would be the first time this project has been drilled.

Our expectations are as follows:

  1. Bullish case: TG1 intercepts high grade gold mineralisation. Grades >2g/t gold.
  2. Base case: TG1 finds enough gold mineralisation to warrant follow up drilling.
  3. Bearish case: TG1 hits nothing - finds no gold.

Key takeaways from Quarterly

ASX:EMN   Aug 15, 2022 Announcement

Investment Memo: EMN IM-2022
Objective 1 : Construction of the Demonstration Plant
Objective 3 : First Offtake Partner
Milestone 1 : Receive final shipment of Demonstration Plant Parts (July 2022)
Milestone 2 : Commission Demonstration Plant (September 2022)
Milestone 1 : First offtake partner (Q3 2022?)


Here are our key takeaways from today’s Q3 results announcement…

Update on demonstration plant commissioning: One of the two shipments of thedemonstration plant modules was unloaded in early August. The second shipment is scheduled to be unloaded later this month.

Update on product qualification: While it was a small detail buried towards the bottom of the Management Discussion and Analysis document, it turns out that the pilot plant has been restarted, and it produced approximately 37kg of HPEMM and 151kg of HPMSM.

We suspected this was the case in our EMN DFS note, and hope that this production run can further product qualification and related offtake discussions.

EMN flagged that 55% of the demonstration plant’s planned first year production has been allocated to a range of players in the battery supply chain. Remembering that EMN is not a mining company and is rather a recycling and processing company, a key challenge is to scale up product qualification efforts via the larger volumes of high purity manganese that the demonstration plant can produce.

Update on offtake discussions: In addition to the five MOUs that EMN has with consumers of high-purity manganese products, EMN noted that it was actively talking to several other parties including battery, chemical and automobile manufacturers, with the intent to enter into offtake contracts. We see this as indicative of EMN’s ability to build competitive tension around offtake discussions to secure the best deal.

We expect high purity manganese products like EMN’s to garner increasingly higher prices as demand from new EV battery chemistries collides with a processing supply chain bottleneck and a dual focussed demand for ESG friendly, domestic production in Europe.

What’s next for EMN? EMN is advancing on multiple fronts and the next major milestone for the company could be an offtake agreement, further progress on project financing, or the commissioning of the demonstration plant pending arrival of the two modules.

You can catch a video of the warehouse where the commercial demonstration plant will live on the EMN website.

Detailed quarterly; healthy cash balance

ASX:EMN   Aug 15, 2022 Announcement

Investment Memo: EMN IM-2022


There’s certainly plenty of detail in the latest Euro Manganese (ASX:EMN) quarterly releases and our European high purity manganese Investment didn’t disappoint.

The headline number from the three EMN announcements today was its healthy cash balance of CAD$28M ($30.8M) which was in line with our expectations.

EMN did flag that to advance a range of project development initiatives it may have to raise capital further down the track - but we don’t see that as an immediate concern.

In fact, the cash balance enables EMN to begin the process of preparing an Engineering,

Procurement, Construction Management (EPCM) tender package for the next stage of development for its project. This tender is due to be released next month and it should be awarded in the first few months of next year.

In our most recent note on EMN’s positive Definitive Feasibility Study (DFS), we highlighted how we think EMN’s healthy cash balance should allow it to enter potential offtake negotiations with a strong hand.

Where to catch EMN quarterly management call

ASX:EMN   Aug 15, 2022 Announcement

Investment Memo: EMN IM-2022


Below you can find the link to the webcast of the quarterly EMN management call tomorrow:

https://services.choruscall.ca/links/euromanganese2022q3.html

We’ll be listening in to hear what CEO Matthew James and CFO Martia Blahova have to say.

It starts Tuesday, August 16, 2022 at 8.30 am AEST (tomorrow).

Multiple thick & high grade graphite intercepts

ASX:SGA   Aug 15, 2022 Announcement

Investment Memo: SGA IM-2022
Objective 3 : Increase confidence in the resource - upgrade JORC resource from inferred to indicated
Milestone 2 : Drill results
Risk 4 : Exploration risk


Our graphite exploration Investment Sarytogan Graphite Ltd (ASX: SGA) has reported multiple thick and high grade assay results from its first round of drilling at the Sarytogan Graphite Deposit in Central Kazakhstan.

SGA also reported that it has drilled holes outside of the project’s current JORC mineral resource estimate area — graphite mineralisation has been logged here and assays are pending for these holes. We are very interested to see these assays and any graphite mineralisation hit outside of the existing resource area.

Today’s announcement follows our site visit to the project in Kazakhstan last week. You can read about that in our weekend update here: Kazakhstan site visit - first impressions.

Drill rig and support equipment at the Central Graphite Zone:

Drill rig and support equipment at the Central Graphite Zone, Sarytogan Graphite Deposit.

SGA today reported that five of the first seven diamond drill holes from the Central Graphite Zone displayed broad thicknesses of high-grade graphite mineralisation, with grades of up to 41.5% TGC recorded in places.

The results include multiple thicker and higher-grade results than the historical information that was used to estimate the current JORC Mineral Resource of 209Mt @ 28.5% TGC (Inferred) in the same area and have the potential to significantly expand the already giant resource.

To date, 13 holes for 1,297m have been drilled from the ongoing 4,000m program with assays pending for six of these holes.

First High-Grade Graphite Drill Core from the 2022 Program; grading 38% TGC in this interval:

First High-Grade Graphite Drill Core from the 2022 Program; grading 38% TGC in this interval

Drilling is continuing to the north-east of the Central Graphite Zone, and holes have been drilled outside of the current resource estimate area. Graphite mineralisation has been logged in these holes and assays are pending.

What’s next?

SGA’s next steps include ongoing diamond drilling, metallurgical test-work and a revised Mineral Resource in Q1 2023.

We were impressed with today’s assay results, as was SGA Managing Director Sean Gregory who said the results were “outstanding” and “exceeded expectations”, and we are keen to see the drilling results from outside of the existing resource area.

But given that SGA already has a large high grade mineral resource estimate (the second largest on the ASX), we are most interested in seeing the results of metallurgical testwork and for SGA to determine the flake size distribution of its graphite resource.

SGA reports that this met test-work is now underway and will include further flotation, sintering and leaching. An understanding of the flake size distribution is key to knowing the types of products that SGA’s graphite may be suitable for and therefore, the price it could command.

Today’s announcement follows our site visit to the project in Kazakhstan last week. You can read about that in our weekend update here: Kazakhstan site visit - first impressions.

$14.9M raised to finance future exploration programs

ASX:88E   Aug 12, 2022 Announcement

Investment Memo: 88E IM-2022
Objective 3 : Clear Exploration Program laid out for Project Icewine
Risk 1 : Funding risk


This morning our oil and gas Investment 88 Energy (ASX: 88E) came out of a trading halt, having completed a capital raise.

88E raised a total of $14.9M at 0.9c per share.

This adds to 88E’s existing cash reserves of $6.1M (as of 31 July 2022), meaning the company should have ~$21M to finance its future exploration programs.

With the balance sheet a lot stronger now, 88E plans to use the funds for the following:

  1. Exploration program at the Icewine East project (where 88E just put out a gross unrisked mean prospective resource of 1.03 billion barrels of oil)
  2. New ventures and portfolio expansion opportunities

88E also confirmed that the company is currently advancing planning works for its Icewine East project with a target to conduct at least one flow test from 4 reservoir targets in 2023.

After acquiring 3D seismic data over its Icewine East acreage, 88E is still continuing to interpret the data on hand to determine the highest priority drilling targets for its 2023 exploration program.

With its London listed neighbour Pantheon Resources (capped at $1.7 billion) preparing to run a flow test over its Alkaid #2 well immediately to the north of 88E’s ground, we think any exploration success from Pantheon could translate to a lot more market interest in 88E’s ground.

To see our previous Quick Take on where Pantheon is at with respect to its drilling program, check out our previous 88E Quick Take here.

Confirmation of shallow Cu/Zn mineralised system at flagship, WA

ASX:AKN   Aug 12, 2022 Announcement

Investment Memo: AKN IM-2022
Objective 3 : Test regional prospects


This morning, our exploration investment AuKing Mining (ASX:AKN) delivered the latest drilling results at its Koongie Park copper-zinc project in the Halls Creek region of WA.

Koongie Park already has a JORC resource estimate of 8.9Mt at 1.01% copper, 3.67% zinc, 0.77% lead, 0.16g/t gold, and 26g/t silver, all from its two most advanced prospects, namely Onedin and Sandiego.

With today’s news AKN is looking to add a third prospect to the mix and potentially increase its overall JORC resource.

Today’s assay results came from the Emull prospect, which was originally a Northern Star Resources listing asset back in 2003.

Northern Star drilled some 88 holes here, identifying an open-pittable resource of ~4.5mt @ 0.33% copper (non-JORC), but let go of the project after acquiring the Paulsens gold project.

AKN returned the following assays from eight, reverse circulation (RC) holes:

  • 74m @ 0.36% Cu, 0.71% Zn and 6g/t Ag from 106m
  • 89m @ 0.36% Cu, 1.18% Zn and 9g/t Ag from 61m
  • 25m @ 0.46% Cu, 1.55% Zn and 8g/t Ag from 34m and
  • 86m @ 0.33% Cu, 0.09% Zn and 2g/t Ag from 53m

What is most promising is that the intercepts were mostly made from shallow depths of ~100m, all of the intercepts to date also indicate that the prospect could be open at depth and along strike.

The mineralisation was found mostly in the primary zone as sulphides - similar to that at Sandiego - and hence amenable to conventional extraction methods.

Provided the mineralisation is continuous and of economic grade, which further drilling will determine, then Emull could provide a quicker path to early production, as a shallow, bulk-tonnage, open-pittable deposit.

Significant magnetic features also exist to the north-west along strike and to the south-west of the main mineralised zone, untested by drilling, and providing plenty of options for future drill targets.

Further drilling is now planned at Emull before the end of 2022.

In the meantime, we expect that AKN will look to incorporate Emull within its current MRE. This is primarily a database exercise (as they already have plenty of historic drilling data).

We wouldn’t be surprised by an updated MRE later this quarter, or else the following quarter.

Neighbour Empire Energy delivers strong gas flow rates

ASX:TEE   Aug 11, 2022

Investment Memo: TEE IM-2022
Investment Thesis 1 : Beetaloo Basin gas peers trading at many multiples of TEE


Our previous note on our domestic gas exploration Investment Top End Energy (ASX: TEE) focused on the activities of its neighbours in the Beetaloo sub-basin in the Northern Territory.

We touched on all of the majors that are currently actively exploring the region and how we would be watching their exploration initiatives closely.

Our thinking is that any success by TEE’s neighbours would bring market interest in the basin and eventually flow through to interest in the permits TEE holds in and around the region.

This morning TEE’s neighbour Empire Energy put out strong gas flow rates from its Carpentaria-2 horizontal well.

Empire announced a normalised flow rate of 2.8 million standard cubic feet per day (per 1,000m horizontal section).

For some context, we noted that both industry analysts and operators in the basin considered a flow rate of 3 million standard cubic feet per day (per 1,000m of horizontal well section) as the “commerciality standard”.

This means Empire’s flow test rates up until now are right near the levels required for it to be considered a commercially viable operation.

The market also seemed to like the news adding ~$31M to Empire’s market cap - almost 2x TEE’s entire market cap, which at today’s share price of 23c per share is ~$16M.

We see these developments out of Empire as positive as part of the overall macro picture regarding the Beetaloo sub-basin.

The positive takeaway from Empire's announcement is that the Beetaloo continues to shape up as a region that could become Australia’s next gas production hub with the ability to supply the gas hungry East Coast energy markets.

With TEE weeks away from its on country meetings with native title holders, we think that if the necessary permits are granted, and the company has tenure over its permits surrounding the Beetaloo, the market could start to show an interest in the acreage our portfolio company holds.

Drill targets identified at its Lithium project in the NT

ASX:RAS   Aug 11, 2022 Announcement

Investment Memo: RAS IM-2022
Objective 4 : Complete due diligence on NT lithium project
Milestone 3 : Define high priority drilling targets


This morning our junior exploration Investment Ragusa Minerals (ASX: RAS) announced that desktop reviews had been completed for its Northern Territory lithium project.

RAS has now completed its target generation works and identified the highest priority lithium targets it plans to drill in its upcoming drilling program.

RAS’s project sits in the same region as two much larger capped neighbours, Core Lithium (capped at $2.5B) and Lithium Plus (capped at $62M), sharing similar geological fundamentals.

Similar to its neighbours, previous rock chip samples taken from outcropping pegmatites over RAS’s project area have returned lithium grades of up to 8.03%.

Importantly RAS has also identified what it believes to be spodumene crystals over its project area - the host rock for most of the current producing hard rock lithium projects worldwide.

RAS also confirmed today that it already has an approved work program in place for up to 21 RC/diamond drillholes, and that the company has submitted a variation to this work program to take advantage of the desktop study and drill the best targets.

Our last note on RAS focused primarily on RAS’s newly acquired lithium project and set the context for what RAS is targeting.

To see our deep dive into the project, check out our previous note here: RAS Picks up Prospective Lithium Ground Near $2.3BN Core Lithium.

Resource drilling ongoing with more pegmatites being intercepted

ASX:ARN   Aug 10, 2022

Investment Memo: ARN IM-2022
Objective 1 : Drilling across the company’s rubidium/lithium projects
Objective 2 : Maiden JORC resource estimate at the rubidium/lithium project


This week our exploration investment Aldoro Resources (ASX: ARN) put out two updates across all of the drilling the company is doing right now.

First was around the drilling program at ARN’s Wyemandoo rubidium-lithium project.

Here the company announced that ~29 RC drillholes had been completed and that pegmatite structures as thick as ~30m had been intercepted.

Second, ARN put out an update for its infill resource definition drilling program at its Niobe rubidium-lithium project.

Here ARN confirmed that pegmatites were being intercepted >50m in thickness with initial drilling exceeding pre-drilling expectations.

We are more focused on seeing the assay results from the Niobe project, given this is following up on a recent drilling program that ARN set out to complete so that it could define a maiden JORC resource for its project.

We did a deep dive on what a JORC resource could mean for ARN and what we were watching next in our latest note which you can here read here: ARN delivers rubidium assay results, good enough to drill again.

Maiden prospective resource estimate adjacent $1.7B neighbour.

ASX:88E   Aug 10, 2022 Announcement

Investment Memo: 88E IM-2022
Objective 2 : Prospective resource update for Project Icewine


This morning, our oil and gas exploration Investment 88 Energy (ASX: 88E) put out a maiden prospective resource estimate for its Icewine East acreage - adjacent London listed Pantheon Resources (capped at $1.7B).

88E’s maiden prospective resource estimate came in at 1.03 billion barrels on a gross mean unrisked basis.

88E has a ~75% working interest in the project meaning its net unrisked prospective resource is ~647 million barrels of oil.

The prospective resource estimate comes a few months after 88E acquired 3D Seismic data in its acreage, enhancing its understanding of the project area.

Importantly the prospective resource estimate has been mapped across the same reservoirs where London listed Pantheon resources (capped at $1.7 billion) drilled its Alkaid-1, Talitha-A and Theta West-1 and confirmed reservoir deliverability of light oils.

Also worth noting is that this part of 88E’s Icewine acreage is independent of the Icewine west acreage where 88E previously drilled the Charlie-1 well.

We covered Pantheon's results in a previous 88E note which you can read here: Neighbour Pantheon’s work to date all adds value to 88E’s ground.

With 88E’s neighbour Pantheon Resources currently preparing to drill the vertical section of its Alkaid #2 well to obtain a flow test over its project area, we think 88E’s prospective resource estimate comes at the perfect time.

If its neighbour is able to prove a commercially viable flow rate, then we think the attention will start to turn to 88E, whose project sits over the same reservoirs.

$13M raised to progress project development

ASX:EV1   Aug 10, 2022 Announcement

Investment Memo: EV1 IM-2022
Risk 3 : Funding Risk


This morning our 2021 Wise-Owl Pick of the Year Evolution Energy Minerals (ASX: EV1) came out of a trading halt having completed a capital raise.

EV1 raised a total of $13M at 32c per share via a placement to private investors.

Importantly we saw ARCH capital partners show intent and commit to maintaining their 24.7% shareholding in the company by participating in the placement.

EV1’s managing director Phil Hoskins also said that the placement allowed for ““the introduction of a number of institutional investors to the Evolution share register”, which is good timing given the company is progressing its project towards a final investment decision targeted for the end of this year.

EV1 is adding to its ~$5.37M cash balance (at 30 June 2022) which should mean it has ~$18.37M in cash post placement,

EV1 plans to use its balance sheet strength to complete the following:

  • Front end engineering design work and delivery of an updated definitive feasibility study for its graphite project.
  • Progress the company's downstream strategy.
  • Product qualification and marketing.
  • Drilling for near surface high grade material to improve project economics

The placement shares will come onto market in two separate tranches, the first tranche of 24,281,250 EV1 shares are expected to be issued on 19 August 2022 and the remaining 16,343,750 will be issued after shareholder approvals in early October (expected on the 5th of October 2022).

The latest video from the Mukuyu-1 well site

ASX:IVZ   Aug 10, 2022

Investment Memo: IVZ IM-2022
Objective 4 : This is the most important: We want to see the first drill.


We recently noticed the following video from our 2020 Energy Pick Of The Year Invictus Energy (ASX: IVZ) with an update on the mobilisation of the Exalo 202 drill rig ahead of its maiden drilling program expected in August.

Below is a link to that video.

IVZ is gearing up to drill its elephant scale prospect in Zimbabwe with the potential to open up an entirely new oil and gas basin in the country.

After recently having its environmental impact assessment renewal approved, IVZ is cleared to drill the Mukuyu-1 well from a permitting perspective. Drilling is expected to commence this month, and a new discovery here could be a game changer for IVZ, Zimbabwe and the Southern Africa energy markets.

The first well will target a giant prospective resource totalling 20 trillion cubic feet (Tcf) and 845 million barrels of gas condensate — a gross mean unrisked prospective resource of ~4.3 billion barrels of oil equivalent over seven different stacked targets.

Pilot plant commissioned to aid offtake discussions

ASX:LRS   Aug 10, 2022 Announcement

Investment Memo: LRS IM-2022
Objective 2 : Offtake Agreement


In its announcement yesterday, our lithium exploration Investment Latin Resources (ASX: LRS) said it is commissioning a pilot plant to produce samples of lithium concentrate from its project in Brazil.

LRS confirmed that the Dense Media Separation (DMS) pilot plant would allow the company to provide a representative lithium concentrate product from its project to potential offtake customers.

More interestingly, LRS also confirmed that it has “held preliminary discussions with several international car and battery manufacturers as well as leading lithium trading houses with respect to future supply of its lithium product”.

We suspect the decision to build out a pilot plant comes as a response to the demand LRS is seeing from potential customers.

We are not surprised by the interest in LRS’s product given the comments made by Kent Masters (CEO of the world’s largest publicly traded lithium producer - Albemarle), who expects lithium supply to remain tight for up to seven to eight years.

We are especially pleased that the company is making such quick progress given it has only been around six months since first hitting spodumene at its Brazilian lithium project.

Preliminary Economic Assessment for lithium project started

ASX:LRS   Aug 10, 2022 Announcement

Investment Memo: LRS IM-2022
Objective 1 : Start feasibility studies


Yesterday morning our lithium exploration Investment Latin Resources (ASX: LRS) announced the early commencement of a Preliminary Economic Assessment (PEA) on its new lithium discovery in Brazil.

LRS has appointed consultants SGS Geological Services (SGS) to carry out the metallurgical test work, JORC resource estimation, and a preliminary economic assessment into the economics of its lithium discovery.

Interestingly, the consultants are the same outfit that delivered a Definitive Feasibility Study (DFS) for LRS’s Brazilian neighbour - lithium developer Sigma Lithium (capped at CAD$2.7 billion).

LRS set out the following indicative timeline for when it expects this work to be completed:

  • JORC resource by the end of the 2022 calendar year
  • Preliminary economic assessment by March 2023

As soon as these are delivered, LRS is planning to launch straight into a DFS.

Having tucked away a $35M capital raise, LRS ended the June quarter with $33.5M cash in the bank. It is putting its balance sheet strength to use accelerating progress at its new discovery.

With a 25,000m resource definition drilling program being run concurrently we expect to see plenty more drilling newsflow over the coming weeks/months leading up to the maiden JORC resource, which LRS expects to complete by the end of this year.

The gant chart from LRS’s announcement today gives us a good summary of what to expect over the next six months.

Airborne Gravity Gradiometry (aim for helium bullseye)

ASX:NHE   Aug 09, 2022

Investment Memo: NHE IM-2022
Objective 2 : Target generation to produce two drillable targets
Milestone 1 : Airborne gravity gradiometry (Q2-Q3 2022)


Our helium Investment, Noble Helium (ASX:NHE) just began its Airborne Gravity Gradiometry and Magnetics program today, one of the one of the key milestones in Objective #1 of our NHE Investment Memo:

🔄 Airborne gravity gradiometry (Q2-Q3 2022)

Gravity gradiometry is used in gas exploration to identify targets below the earth’s surface by measuring minute differences in the earth's density to gather information on underground structures.

We think these surveys are somewhat analogous to EM surveys for mining companies and they produce the colourful patterns we’ve become so familiar with in our time Investing in exploration companies:

It’s an important part of NHE’s target generation works and the data from this program will then be correlated with upcoming geochemistry results and the capstone exploration method - the pivotal 3D seismic survey slated for Q3/Q4.

NHE is working with a high end gradiometry instrument from Lockheed Martin which is significantly more precise than the predecessor instrument.

The way we understand NHE’s helium exploration program, there are three layers involved, each increasing the likelihood of a helium discovery:

We emphasise that we are not experts in gas exploration, but we hope this visualisation explains NHE’s exploration methodology.

What’s next for NHE? We’re eager to see the results of the recent geochemistry survey and how this combines with the program announced today.

Gold project sold, balance sheet now even stronger

ASX:LNR   Aug 09, 2022 Announcement

Investment Memo: LNR IM-2022


Earlier this week our rare earths exploration Investment Lanthanein Resources (ASX: LNR) put out an update on the sale of its PNG gold project.

The deal comes after ASX listed Tempest Minerals put in a takeover offer for Lole Mining which holds the gold project.

As part of the deal LNR will receive a total of $2M split as follows:

Initial consideration:

  • $500,000 cash
  • $1.5M in either cash or shares at the election of Lole Mining

Deferred consideration:

  • $1M within 5 years or before a JORC resource of 500,000 oz of gold in the indicated category is defined.

LNR therefore should receive the initial consideration of ~$2M in cash/shares no later than 28 September 2022.

After recently completing a $1.75M capital raise and with $4M in cash in the bank at 30 June 2022, LNR is adding to what we think is an already extremely strong balance sheet for an exploration company.

With a market cap of just $24M (after the recent placement shares are issued), we expect LNR to have ~$7.75M in cash/financial assets after the placement is completed and the gold project is sold.

This should mean the company trades with an enterprise value (EV) of ~$13.25M leading up to its drilling program at its REE projects along strike from Hastings Technology Metals (capped at $416M) and next door to Dreadnought Resources (capped at $228M).

Next: We want to see LNR start and complete all of the pre-drilling works to enable the company to drill its REE targets this quarter.

Project development and downstream update webinar

ASX:EV1   Aug 03, 2022 Announcement

Investment Memo: EV1 IM-2022


This morning our 2021 Wise-Owl Pick of the Year Evolution Energy Minerals (ASX: EV1) announced the details for an upcoming webinar where the company plans to provide a “project development and downstream strategy update”.

EV1’s Managing Director Phil Hoskins will be running the call at 11:00am AEST (9:00am Perth time) this Friday (5th of August).

For readers who want to tune into the webinar the Zoom registration link is below:

https://us02web.zoom.us/webinar/register/WN_PpDiiv8sQa6zdM8IZCupfQ

Invictus Awarded Three Carbon Offset Projects in Zimbabwe

ASX:IVZ   Aug 03, 2022 Announcement

Investment Memo: IVZ IM-2022


This morning Our 2020 Energy Pick Of The Year, Invictus Energy (ASX: IVZ) just made a move towards potentially being the first “cradle to grave” carbon neutral oil and gas project.

In this case, “cradle to grave” means that carbon neutrality is secured from exploration through to production and the end of the project's useful life.

Today, IVZ took that first step by being awarded three different carbon offset projects over a ~30 year term over 301,565 hectares of indigenous forests.

The three projects are the Ngamo, Gwayi & Sikumi projects which are classified under the Reducing Emissions from Deforestation and forest Degradation (REDD+) framework.

REDD+ is basically a framework created by the United Nations that aims to reduce carbon emissions from deforestation and forest degradation.

IVZ is 50:50 partnered with the Forestry Commission of Zimbabwe and plans to develop deforestation programs so as to protect the indigenous forests. Under the REDD+ framework, this constitutes emissions reduction programs which then generate carbon credits that can be sold on the open market.

IVZ is now going through the verification process to get the carbon credits recognised up to the point where they are tradable, with the company expecting this to take ~12 months to complete.

With carbon credits forecast to be worth US$80 to $150/tonne in 2035, IVZ has managed to put together a strategy to reduce carbon emissions and work towards developing one of the first ever carbon neutral oil and gas projects as well as make money from the carbon credits generated.

Next:

We are waiting to see IVZ update the market with respect to a farm in agreement and, most importantly, mobilise its drill rig ready ahead of next month’s spudding.

88E's $1.55 billion neighbour strikes oil

ASX:88E   Aug 02, 2022

Investment Memo: 88E IM-2022
Investment Thesis 3 : North Slope in Alaska - one of the most oil rich places on the planet
Investment Thesis 2 : Nearology to Pantheon Resources


Over the weekend London listed Pantheon Resources (capped at $1.55 billion) put out an update on the drilling of its first horizontal production well adjacent to the ground held by our oil and gas exploration Investment 88 Energy (ASX: 88E).

Pantheon’s Alkaid #2 well was drilled to a total depth of 8,950 feet, hitting oil across all three formations it was targeting:

  1. The Shelf Margin Deltaic - Net ~83m oil bearing reservoir encountered which was thicker and of better reservoir quality than pre-drill estimates.

  2. The Alkaid anomaly - Net ~47m oil bearing reservoir encountered with the interception exceeding pre-drill expectations of reservoir thickness and quality.

  3. The Alkaid Deep anomaly - Reservoir quality encountered was better than pre-drill expectations. Analysis is currently underway to determine net reservoir thickness.

The connection to 88E is that the reservoir that Pantheon is intercepting are the same ones that extend into 88E’s ground to the south.

Interestingly the London markets liked Pantheon’s initial results, with Pantheon’s share price up ~20%, adding a total of ~$300M to Pantheon’s market cap.

Pantheon is now preparing to drill horizontally to get a flow test for the well which will ultimately determine whether or not the project can produce economically.

If Pantheon puts out commercially viable flow rates, we suspect the market will start to show an interest in 88E, speculating on the probability of the reservoirs extending into 88E’s ground.

Widespread elevated helium, gradiometry next

ASX:NHE   Aug 02, 2022 Announcement

Investment Memo: NHE IM-2022
Objective 2 : Target generation to produce two drillable targets
Milestone 1 : Airborne gravity gradiometry (Q2-Q3 2022)
Milestone 2 : 3D seismic (Q2-Q4 2022)
Milestone 3 : Geochemistry survey (Q2-Q3 2022)


Our helium exploration Investment Noble Helium (ASX:NHE) has reported “outstanding” Soil Gas Survey results from the western side of its North Rukwa Basin Helium Project in Tanzania.

NHE got up to 7.3 parts per million (ppm) of helium on the western side of the project from Soil Gas Surveying (part of the geochemical arm of its Tanzanian helium exploration).

This was part of an overall pattern of “widespread elevated” helium levels that NHE found.

That 7.3 ppm result is 35% above background levels which is a promising early sign that there is helium trapped below NHE’s grounds.

NHE is now moving to the eastern side of its project for additional Soil Gas Surveying to be completed by early August and detailed analysis to come in mid-August.

It’s all part of an exploration program that will combine geochemistry with the legacy 2D seismic data, airborne gravity gradiometry and a more sensitive 3D seismic survey to generate two targets for drilling in 2023.

In yesterday’s announcement, it was also pleasing to see that the plane for the airborne gravity gradiometry is due to arrive this week and the survey will commence by this weekend.

NHE will be using a top of the line Lockheed-Martin gradiometry instrument which should contribute to target generation with “maximum confidence.”

It’s good to see NHE sticking to a tight schedule as it goes after a potentially globally significant helium resource.

We’ve updated our milestones accordingly on our NHE Investment Memo:

🔄 Airborne gravity gradiometry (Q2-Q3 2022)

🔄 Geochemistry survey (Q2-Q3 2022)

We also appreciated NHE providing an update on how the 3D seismic campaign interacts with its ongoing knowledge transfer and stakeholder efforts. The survey is anticipated to create 250 jobs and the vast majority of those jobs will be local Tanzanians drawing on their relationship with University of Dar Es Salaam.

What’s next for NHE? In addition to the gradiometry survey and the final analysis of the geochemistry results, the big milestone coming up is the 3D Seismic survey in Q3 2022, right around the corner.

RC drilling aims to unveil an even larger mineralised system

ASX:GAL   Aug 02, 2022 Announcement

Investment Memo: GAL IM-2022 [Archive]
Objective 3 : Cobalt and palladium exploration at Norseman


Following up on its Callisto PGE discovery at the Norseman Project in WA, our long term exploration Investment, Galileo Mining (ASX:GAL) has commenced a 10,000 metre RC drill campaign.

The ~50 drill hole campaign will see GAL begin to test the true extent of mineralisation discovered at Callisto. GAL has five kilometres of untested strike length along with good potential for more mineralisation of the same style.

The drill campaign consists of 50-metre spaced drill holes around the known mineralisation as well as stepping out up to one kilometre to the north of the existing drill holes.

Below are the target zones around known sulphide mineralisation for the upcoming drill campaign:

Regional drilling up to one kilometre away (off plan to the north) from existing drill holes is also planned within the current program.

What’s Next?

The drilling program is expected to run for twelve weeks with samples will be delivered to the lab weekly and assay results from this round of drilling expected from early September 2022.

GAL also reports that it has signed a diamond drilling contract with that program planned to start in the coming weeks.

Callisto geological section with discovery drill hole NRC266:

$1.05M raised, entitlement offer launched to raise $3.9M.

ASX:TMR   Aug 01, 2022 Announcement

Investment Memo: TMR IM-2022
Risk 2 : Financing risk


Late last week our gold exploration Investment Tempus Resources (ASX:TMR) detailed its latest capital raise.

TMR raised a total of $1.05M via a placement at 5c per share with the shares expected to be issued on 3 August (this Wednesday).

TMR plans to use the cash to finance the ongoing drilling program at its Canadian gold project where the company has already drilled the first 14 of the planned 30 drillholes.

Investors who participated in the raise also got issued one free option for every share purchased. The options expire in three years and are exercisable at 7.5c per share.

We also saw the company announce an entitlement offer of up to $3.9M in new shares for existing shareholders, on the same terms and conditions as the placement.

We especially like that TMR has kept the placement portion of the raise small. and offered almost 4x more in shares to existing shareholders. With the share price trading at ~7c per share, the entitlement offer gives existing shareholders the opportunity to top up their shareholdings at a discount to the current market price for TMR.

Given where the company’s share price is trading, we like that TMR hasn’t solely reserved the placement for sophisticated investors.

The key dates for the entitlement offer are:

  • Ex date 9 August 2022 - This is when TMR shares start trading on an ex-rights basis, meaning the rights will no longer apply if shares are purchased on or after this day.

  • Record date 10 August 2022 - This is the date at which entitlements are calculated, i.e if you are a shareholder in TMR at this date then you get to purchase shares in the entitlement offer.

  • Offer closing date 29 August 2022 - Last day to accept entitlement.

  • Offer issue date 5 September 2022 - This is when the entitlement offer shares are expected to be issued.

High grade manganese confirmed ahead of first drilling

ASX:PFE   Aug 01, 2022 Announcement

Investment Memo: PFE IM-2022
Objective 2 : Drilling at PFE’s Manganese project.


Pantera Minerals (ASX:PFE) has identified multiple high grade manganese targets at its WA manganese project, Weelarrana.

The previously reported 22 rock chip samples analysed by pXRF returned equivalent or improved manganese grades. The assays of crushed and pulped rock samples included grades of up to 44.1% manganese.

PFE expects to commence RC drilling in early October 2022 upon completion of the Cultural and Heritage survey. The survey was scheduled for late May 2022 but was delayed due to rainfall and is now scheduled for late August 2022.

PFE has planned a 1500m RC drilling program at Area 1, while drill planning and permitting is underway for Areas 2 and 3 with drilling expected in Q3 2022.

We look forward to the upcoming drill program as this will be the first time the manganese mineralisation here has been drill tested.

ONE quarterly - more hardware ahead of sales push

ASX:ONE   Jul 29, 2022 Announcement

Investment Memo: ONE IM-2022
Objective 1 : Fast revenue growth and contracted beds in excess of 15,000


Our health tech Investment Oneview Healthcare (ASX:ONE) quarterly report has revealed a significant investment in hardware ahead of a major sales push in Q3.

The outlay on hardware was €500K (~A$730k) which was part of the reason net cash outflows for this quarter were €1.98m (~A$2.9m).

Receipts from customers were down 19% on last quarter from €1.6m to €1.3m (~A$2.3m - $2.8m). We know that ONE sales are lumpy so this isn’t completely out of character for the company.

Other things to note were that the increased sales and marketing spend seems to be having the desired effect with the US Sales pipeline growing by over 100% for the quarter.

Given the share price action today, it seems that for now the market is relatively pleased with the results.

Our perspective on the ONE quarterly is that while we’d hoped the company was closer to operating cash flow positive, the sales pipeline should see some bigger conversions in the next quarter after the breakthrough BJC Health System deal in May.

That was ONE’s biggest deal ever and we hope it’s a sign of things to come.

Although there was no specific update on total contracted beds (which is like an active user metric for any tech company), we did some back of the envelope calculations based on the information in this quarterly report, and we think ONE is now hovering around the 14.5K contracted bed mark.

That’s mighty close to our #1 objective from our ONE Investment Memo.

What’s next for ONE? We want to see a big deal come through from the sales pipeline and ONE to smash through the 15K contacted bed mark.

Pilot production program commencing soon

ASX:EXR   Jul 29, 2022 Announcement

Investment Memo: EXR IM-2022
Objective 1 : Pilot production program at the gas project


This morning, our 2019 Energy Pick of the Year Elixir Energy (ASX: EXR) put out an update on its upcoming pilot production program for its coal bed methane (CBM) gas project in Mongolia.

EXR report that all of the equipment required for drilling, completion and testing of the two production wells is now in Mongolia, and the extended pilot production program is on track to start towards the end of August.

EXR has engaged the same group of drilling contractors who worked for Rio Tinto on its Oyu Tolgoi mine, located with EXR’s landholding in Mongolia, which we hope will translate into an efficient work program.

EXR expects completing and producing these wells “within weeks of drilling being completed”, with the commercial viability of the wells to be assessed over months by measuring gas flow rates.

This should mean that by early 2023 we will know whether EXR’s wells can commercially produce gas.

The pilot production program is key objective #1 in our 2022 EXR Investment Memo, so today’s news shows that the company is making progress towards starting and completing something we have been patiently waiting for.

To see all the other key objectives we set that we wanted EXR to achieve this year, check out our 2022 EXR Investment Memo here.

New coal bearing sub-basin discovered

ASX:EXR   Jul 29, 2022 Announcement

Investment Memo: EXR IM-2022
Objective 2 : Exploration drilling


This morning, we also got an exploration update from our 2019 Energy Pick of the Year, Elixir Energy (ASX: EXR).

The highlight of today’s announcement was that EXR discovered yet another coal bearing sub-basin at its “Venetian-1” exploration well.

The positive for us here is that EXR continues to discover new sub-basins at parts of its project where we have set no expectations. We see these sub-basin discoveries as almost like free options at growing the size of EXR’s project and make for unexpected positive newsflow.

A bit of a dampener on the positive update today was the mechanical issues EXR is having with its drill rigs, which is, in turn, slowing down the progress of the 2022 exploration program.

Back to back record quarterly sales result

ASX:VN8   Jul 29, 2022 Announcement

Investment Memo: VN8 IM-2022


This morning, our small cap telco investment Vonex (ASX:VN8) produced another strong quarterly result, underlined by revenues increasing 81% year-on-year (YoY) to a new record $10.5M.

The previous record was delivered last quarter, with $10.2M in revenues, obviously a pleasing trend for shareholders.

The robust financial results provide an endorsement of the company’s aggressive acquisition strategy, namely: Voiteck (acquired January 2022), the Direct Business (August 2021), Nextel (February 2021) and 2SG (March 2020). These acquisitions have accelerated customer acquisition and expanded VN8’s national footprint, feeding into the increases in sales and revenue.

Another key metric we track is annual recurring revenue (ARR), which basically indicates the amount of revenue that a company expects to repeat. As at 30 June 2022, VN8 has an ARR of ~$36.2M, up 97% YoY.

With VN8 capped at ~$23M - well below its ARR - and cash at bank of $3.2M at the end of the quarter, we like the prospects for a positive market re-rate in the year ahead.

Also of significance during the quarter, VN8 entered a binding heads of agreement with Commonwealth Bank-backed telco provider, More to become its exclusive provider of Hosted PBX services to new and existing CBA customers.

VN8 will also deliver a new hosted PBX and IP telephony enablement platform for More's new and existing small to medium enterprise (SME) customers. We expect this to positively impact ARR through new license fees, hardware and call carriage.

The quarterly results bodes well for our key objectives we’d like to see VN8 achieve this year:

Following today’s results, we plan to provide a more detailed update on VN8 in early August.

DXB Quarterly Reveals FSGS Patient Numbers

ASX:DXB   Jul 28, 2022 Announcement

Investment Memo: DXB IM-2022
Objective 3 : Progress the Phase III Clinical Trial for Rare Kidney Disease (FSGS)
Milestone 6 : Patient Recruitment Updates


The Dimerix (ASX:DXB) quarterly report released yesterday morning gave us a good look at how the company is tracking, in particular with our “main bet,” the FSGS trial.

FSGS or focal segmental glomerulosclerosis is characterised by a dysfunction in the part of the kidney that filters blood.

11 patients (or 15% of the target 72 patients) have now been recruited to the company’s DMX-200 phase 3 trial for FSGS and 60% of the 75 sites for the trial are now activated.

This is the primary reason we are Invested in DXB.

DXB also said that it expects the remaining 40% of clinical trial sites to complete protocol training and activation in the next 4-6 weeks.

This marks the first update on patient recruitment:

🔄Patient Recruitment Updates

DXB flagged cash outflows of $7.2M, leaving the company with a cash balance of $9.6M.

We’re mindful that clinical trials are expensive to get up and running and the start up costs represent the largest chunk of clinical trial costs, so we’re expecting the cash outflows to be significantly reduced next quarter.

We were glad to hear DXB reiterate that it is on track for the first interim analysis for the FSGS trial, which will be released in the first half of 2023.

Quarterly report - advancing multiple clinical trials

ASX:BOD   Jul 28, 2022 Announcement

Investment Memo: BOD IM-2022


Our long-term Wise-Owl cannabis investment, BOD Australia (ASX:BOD) released its quarterly results earlier today.

While the company improved in several financial metrics that we track on a quarter-vs-quarter basis (total quarterly sales up 46% to $943,608), it declined on a previous-corresponding-period last year basis ($1,173,498).

This is partially explained by the company now focussing more on its R&D pipeline with the hopes of unlocking several growth opportunities (and future revenue sources) in the year ahead.

Bod holds $3.67M cash at bank as of 30 June 2022, which we think likely means the company doesn’t need to raise capital for the rest of the year, unless a significant new investment/ growth opportunity arises.

Capped at ~$10.5M, Bod’s enterprise value (EV) is now under $7M.

That said, as per our Investment Memo, we are more interested in how Bod’s numerous clinical trials are advancing.

On this front, we like the progress being made. During the quarter, BOD dosed the first patients for the following two trials:

  1. Insomnia (Phase IIb) - for an over-the-counter (OTC) treatment available at pharmacists
  2. Long-COVID (Open label, “Proof of Concept”)

These both address substantial markets, and hence successful outcomes on either trials could ultimately lead to new products and potentially prosperous revenue sources. Typically this is when significant market re-rates can occur.

Of interest, Bod is planning to launch a new low dose cannabidiol product through Australian SAS-B channels (i.e. via a prescription from a medical practitioner), providing the company with another sales channel and additional delivery format for consumers ahead of any OTC launch.

We will provide a more detailed analysis on the progress of the clinical trials in August.

More assay results on its way to a JORC resource

ASX:LRS   Jul 27, 2022 Announcement

Investment Memo: LRS IM-2022
Objective 4 : JORC resource at the Brazilian lithium projects
Milestone 1 : 25,000 metre infill resource definition drilling
Milestone 2 : Assay results (ongoing)



This morning Latin Resources (ASX: LRS) put out an update on its resource definition drilling program at its Brazilian lithium project.

LRS is now ~25% of the way through its 25,000m drilling program, after which it hopes to put together a maiden JORC resource.

Some of the notable intercepts from today’s release were:

  • Drillhole 17: 13.86m at 1.33% lithium from 173m.
  • Drillhole 18: 9.16m at 1.68% lithium from 133m.
  • Drillhole 19: 11.96m at 1.64% lithium from 206m.

Given these results are from an infill drilling program, the lithium intercepts are expected by the market, and we think the reason why there was limited share price movement on this news today.

These results continue to prove out LRS’s lithium deposit, and with the arrival of a fourth diamond drill rig on site, LRS is moving quickly to establish a maiden JORC resource estimate for its new discovery.

We think that this will be LRS’s next major catalyst, allowing the market to compare its deposit to larger peers with established JORC resources.

We set the following expectations for LRS’s JORC based on peer comparisons in the lithium sector.

  • Bullish case (Exceptional) = >15Mt JORC resource
  • Base case = 5-15Mt JORC resource
  • Bearish case = <5Mt JORC resource

Read our latest LRS article to see our reasoning behind these expectations: Lithium deposit getting bigger - plenty more drilling to come.

Presentation at Metals and Mining conference

ASX:GTR   Jul 27, 2022

Investment Memo: GTR IM-2022


This morning we noticed that our US uranium exploration Investment GTI Energy (ASX: GTR) would be presenting the virtual Metals and Mining conference powered by OTCMarkets.

GTR’s Executive Director Bruce Lane will be presenting at 11:30 pm AEST tonight.

For readers who want to stay up late and view the presentation, they can do so using the following link: https://www.virtualinvestorconferences.com/

Quarterly report - $17.2M in cash

ASX:MAN   Jul 27, 2022

Investment Memo: MAN IM-2022
Investment Thesis 3 : Strong balance sheet: At 25 March 2022, MAN had $16.4M in cash


This morning, our junior exploration investment Mandrake Resources (ASX: MAN) put out its June quarterly report.

MAN clarified its cash position at $17.2M as at 26 July and reiterated that “All technical and legal due diligence completed” for the acquisition of the “Delfin” copper project in Chile.

With the due diligence date extended to 24 August 2022 MAN confirmed that the company’s focus was now on obtaining “full support of the community to ensure a clear path to immediate exploration activities ahead of acquisition completion”.

This should mean that as soon as the due diligence process is completed, MAN will have already gone through a lot of pre drilling permitting hurdles, and can instead focus on exploration as soon as the acquisitions done.

MAN is currently trading with a market cap of $19.2M which gives it an enterprise value (EV) of only $2M when its current cash balance is taken into account.

With an enterprise value this low and cash balance so high we think the company is perfectly positioned to re-rate off the back of any exploration success after it completes the acquisition of its copper 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

IRD advancing potential green hydrogen port opportunity

ASX:IRD   Jul 27, 2022 Announcement

Investment Memo: IRD IM-2022
Objective 2 : Greenlight Cape Hardy Port Development



This morning, our Wise-Owl long-term iron ore investment Iron Road (ASX:IRD) announced that it had completed its market sounding process to discern commercial interest in the longer-term development of its Cape Hardy site as a green hydrogen hub/ industrial precinct.

A shortlist of 10 green hydrogen proponents - primarily comprising globally significant players in the power generation and emerging energy transition sectors - have expressed formal interest in developing Cape Hardy.

Location map
Location map

IRD will now enter discussions with these parties, with a view to enter commercial arrangements following the close of the expressions of interest phase during 4Q 2022.

The project also has strong government support. The South Australian Government recognises the opportunity, and the Federal Government has provided a $25m grant commitment to assist with development.

IRD fully owns the 1,200 hectare greenfield site at Cape Hardy, and has primary development approval for a high-grade iron concentrate and multi-commodity export facility. Besides the green hydrogen opportunity, Cape Hardy provides the logical logistical channel for IRD’s flagship asset, the Central Eyre Iron Project (CEIP).

IRD has been progressing the CEIP since 2008 through to DFS, having spent approximately $180M in the process. The project hosts Australia’s largest undeveloped magnetite deposit, with a 3.7 billion tonne Ore Reserve, capable of producing 589Mt of high-grade magnetite (66.7% Fe) over the life of the mine. As it typically takes decades to progress significant iron ore projects to development, we believe IRD’s flagship represents one of the next significant iron ore projects globally to next transition into production.

The next key milestone we are keen to see IRD deliver remains securing a partner to greenlight development.

Green light from local councils & new licence area

ASX:VUL   Jul 26, 2022 Announcement

Investment Memo: VUL IM-2022
Objective 3 : Expansion of scope
Risk 4 : Stakeholder risk



Our zero carbon lithium and geothermal Investment Vulcan Energy Resources (ASX:VUL) has received the green light from eight local councils to carry out 3D seismic survey work across the company’s project area in Germany.

VUL says that positive momentum is building at the local level for its Zero Carbon Lithium™ Project and that so far, all local votes for its Phase 1 area work plan applications have been positive.

This is news that we like to hear, as VUL being granted local approvals was an issue that some commentators had previously questioned.

The 3D seismic survey work is planned to start in September and will assist in planning future development drilling.

VUL also reported that it has been granted a new exploration license (“Ried”), increasing its license area in the Upper Rhine Valley Brine Field (URVBF).

Importantly, this expands the size of VUL’s project area by 24% to a total of 1,440km2 over what is already the largest JORC compliant lithium resource in Europe.

The Upper Rhine Valley region has seen extensive exploration and development historically conducted by oil and gas companies, and this new licence area comes with some existing 3D seismic data.

VUL is leveraging the work done by the hydrocarbons industry to cut the time needed to gather data and accelerate the Zero Carbon Lithium™ Project.

VUL's exploration licences in the Upper Rhine Valley Brine Field (URVBF)

Farm-in progress during the June quarter

ASX:IVZ   Jul 26, 2022 Announcement

Investment Memo: IVZ IM-2022
Objective 3 : Financing for drilling


Our 2020 Energy Pick Of The Year Invictus Energy (ASX: IVZ) just put out its June quarterly report.

The report included a brief update on progress being made on the farm-in front.

IVZ said it had “received three farm-in offers for the Cabora Bassa Project, with ongoing due diligence and internal approvals being undertaken by additional parties which may result in further bids being received”.

IVZ also confirmed that “The results of these current, and potential future, farm-in bids are subject to certain conditions precedent and further updates will be provided in due course.”

Farm-in agreements in the oil and gas sector are unique whereby they are a simple exchange of cash for a % ownership in the projects.

This means that IVZ can leave the signing of this type agreement right down to the last minute before drilling begins.

With drilling expected to commence in August, IVZ should have a few more weeks to get this deal over the line.

The positive is that there are multiple offers already on the table, so it’s more a case of ironing out the details and satisfying whatever conditions are being placed on the offers.

These type agreements need to strike the perfect balance between financial commitment from a partner and the expertise they bring to the project, so we are not surprised the process is taking a while to finalise.

We hope that whoever IVZ decides to bring on as a partner makes a significant financial contribution to the project and also has oil and gas development experience.

Environmental management plans approved, drilling in August

ASX:IVZ   Jul 26, 2022 Announcement

Investment Memo: IVZ IM-2022
Objective 4 : This is the most important: We want to see the first drill.


This morning our 2020 Energy Pick Of The Year, Invictus Energy (ASX: IVZ), announced the renewal of its Environmental Impact Assessments through to July 2023.

With the renewals approved, IVZ confirmed that it has concluded “the permitting requirements” which allow the company to conduct in-field seismic and exploration drilling.

IVZ is now a few weeks out from drilling its Mukuyu prospect in Zimbabwe - the largest undrilled oil and gas prospect onshore Africa.

The first well will target a giant prospective resource totalling 20 trillion cubic feet (Tcf) and 845 million barrels of gas condensate — a gross mean unrisked prospective resource of ~4.3 billion barrels of oil equivalent.

Next:

We are waiting to see IVZ update the market with respect to a farm in agreement and, most importantly, mobilise its drill rig ready ahead of next month’s spudding.


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