Kuniko releases promising historical drill results


Feb 06, 2023


Investment Memo: KNI IM-2022

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Our European battery metals exploration Investment, Kuniko (ASX:KNI), released solid assays from a historical drill core today.

The result from the Ertelien Nickel project was as follows:

  • 28.1 metres @ 1.34% Nickel, 1.19% Copper, 0.07% Cobalt and 0.14 g/t Gold which included 19.9 metres @ 1.82% Nickel, 1.64% Copper, 0.09% Cobalt and 0.19 g/t Gold

That’s a very good hit - but again this was from an old core.

KNI’s first hole at its Eterlien project was actually a “twin” of this hole, which is basically when a company drills an almost identical drillhole right next to one completed previously.

KNI drilled the “twin” hole down to a depth of ~470m, but more importantly confirmed multiple intercepts with massive sulphides of greater than 90%.

Massive sulphides are important because they typically host high grade mineralisation.

Drilling is now underway at KNI’s project and the idea now is to use this core as a guide for extending the mineralisation.

Below is where this assay was taken from at Ertelien with the other holes KNI intends to drill as part of 1470m 5 hole campaign:

We’re particularly interested in the outcome of the two holes targeting near-surface mineralisation to the east

The previous owners of the Ertelien nickel project compiled a mineral resource of ~2.7mt at 0.83% nickel, 0.69% copper and 0.06% cobalt - however this resource is not currently JORC compliant.

KNI CEO Antony Beckmand said the company is aggressively pursuing a JORC resource which we think is the right strategy.

The near term newsflow from the nickel project combined with another crack at the Skuterud project, and some large copper targets to go after in March will provide the market with a good look at the potential of KNI’s projects.

What’s next for KNI? It’s on to Skuterud later this month, KNI’s cobalt project. KNI now has two rigs in Norway which should speed things up.

Spodumene mineralisation found in old drillcores


Feb 06, 2023


Investment Memo: RAS IM-2022
Objective 1 : Complete due diligence on NT lithium project
Milestone 3 : Define high priority drilling targets

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Our junior exploration Investment Ragusa Minerals (ASX: RAS) just put out an update on its lithium project in the Northern Territory.

The update was from an old drillcore - completed by the previous owners of the project May Drilling in 2019 - which confirmed a 25.5m pegmatite intercept at its Tank Hill prospect.

The Tank Hill prospect is outside of the area RAS recently drilled and has at least two thick pegmatite outcroppings that are ~63m apart.

RAS expects to include these targets in its next round of drilling here and is currently planning pre-drilling work to rank the highest priority drill locations.

The positive from today’s announcement is that the old drillcore confirmed spodumene presence - spodumene is usually the host for high grade lithium mineralisation and responsible for most of the lithium produced from hard rock projects around the world.

Effectively it proves RAS’ geological model and means the company is looking for lithium in the right place.

While the results show that RAS has the right type of rocks underground (from ~65m depth), the lithium grades are still relatively low and well below the ~1% level that is typically considered economic for hard rock lithium deposits.

What’s next for RAS?

We are waiting to see RAS put forward a forward exploration plan for its lithium project.

We hope that RAS Chair, Jerko Zuvela will eventually get it right, given his pedigree - he helped take Argosy Minerals (capped at $1BN) from explorer to late stage lithium developer.

Drilling planned for Q2-2023 next to $1.7BN Capricorn Metals


Feb 06, 2023


Investment Memo: BPM IM-2022
Objective 2 : Side bets: Drilling at the company’s other projects.
Milestone 3 : Drilling program at the Claw gold project

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Our exploration Investment BPM Minerals (ASX: BPM) has firmed up its forward exploration plans at its Claw gold project in WA.

BPM’s Claw project sits immediately to the south of Capricorn Metals’ (capped at $1.7BN) 2.7m ounce Mount Gibson gold mine.

BPM is now running a ~700 sample soil survey and expects the results from the program to be announced in Q2-2023.

Immediately after the results are received BPM is looking to start an aircore drilling program (subject to regulatory approvals). Drilling is expected to commence in Q2-2023.

BPM will drill two high priority drill ready targets right near the southern border shared with Capricorn Metals.

  1. The Lewie anomaly - Covers an area of 1,200m x 400m
  2. The Chickie anomaly - Covers an area of ~1,000m x 500m.

To see our most recent deep-dive on BPM’s portfolio of projects and what we want to see BPM do next check out the following: Assays in - What does $6.5M capped BPM do next?

Our lithium Investment presenting at the world's biggest mining


Feb 06, 2023


Investment Memo: TYX IM1

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Our 2022 Catalyst Hunter Pick of the Year Tyranna Resources (ASX: TYX) just released an updated investor presentation, which it will present at the Mining Indaba conference in Cape Town, South Africa this week.

Mining Indaba is the world’s largest mining conference and so we are looking forward to seeing TYX get in front of investors and pitch the story.

Our team will be at the conference so be on the lookout for updates from us throughout the next few days.

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

More Cu-Au porphyry mineralisation intersected at Copper Ridge


Feb 06, 2023


Investment Memo: TTM IM-2022
Objective 2 : Follow-up drilling at Linderos

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Earlier this morning, our Ecuadorian gold and copper Investment Titan Minerals (ASX:TTM) delivered the remaining results from its maiden drilling campaign at the Copper Ridge copper porphyry prospect, within its Linderos project.

With very promising results from the first two assays returning long intercepts of cu porphyry mineralisation - we were very keen to see what the remaining six assays reveal.

So how did they go?

All holes intersected long intervals of copper-gold porphyry mineralisation, albeit low grade.

However, there was no ‘company maker’ assay result in this batch. Perhaps the best two results this time were:

Hole CRDD22-006:

  • Overall 558m grading 0.2% Cu Eq (ie copper equivalent) from surface incl:
    • 72m grading 0.4% Cu Eq from 21m, and
    • 51m grading 0.4% Cu Eq from 373m

Hole CRDD22-004:

  • 344m grading 0.2% Cu Eq from 38m incl:
    • 86m grading 0.3% Cu Eq from 196m

All the results are tabulated below.

With all the assays now returned, our overall take is that the campaign has confirmed a substantial copper-gold porphyry system from near surface - a good result for a maiden campaign.

The system remains open, both laterally and at depth, and it is encouraging to note that 6 of the 8 holes were mineralised to the end of hole (meaning that it is very likely more mineralisation would’ve been encountered if a bigger rig was used).

The low copper equivalent grades implies that the core of the porphyry has not yet been found. However, whilst we’d love to see CuEq closer to 1% (as is more typical in Australia), lower grade porphyry systems can still be economic if at scale. For instance, the $700M-capped SolGold is advancing its Alpala porphyry deposit in Northern Ecuador, which contains a global resource of 3.2Bt grading 0.49% Cu Eq for 9.9Mt of copper, 21.7Moz gold and 92Moz silver - BHP and Newcrest are the biggest shareholders.

What’s next?

TTM are keen to return to drilling Copper Ridge. The next campaign will hunt for the “earlier-phase, higher-grade copper-gold porphyry mineralisation” and will utitlise 3D modelling to help vector new drill targets. This is more likely in 2H23, as there are analysis of geochemical and spectral data, as well as a possible IP survey to run, to help discern these targets.

We are also expecting assay results from the Meseta Gold prospect (also within the Linderos project) later this month.

Finally, we’re keen to see an update on the Dynasty project (which hosts a 2.1Moz non-JORC gold resource), perhaps in the current quarter,

Progress on a DFS, Permitting, Offtake and Project financing


Feb 04, 2023


Investment Memo: EMH IM-2022
Objective 1 : DFS (Definitive Feasibility study)
Objective 2 : Progress on development financing
Objective 3 : Offtake agreement

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Our European lithium Investment European Metals Holdings (ASX: EMH) has just appointed consultants to complete its Definitive Feasibility Study.

EMH will be using DRA global which has over 30 years of experience in the development and execution of lithium projects globally.

The feasibility study is expected to be completed in Q4-2023.

We also noticed in the announcement today that Executive Chairman Keith Coughlan said that “It is not expected that this will delay the critical path of the Project, as during this time the Company will be in the process of finalising permitting, offtake and Project Finance matters.

This will mean that EMH will be making progress on all three of the key objectives we wanted to see EMH achieve in our Investment Memo.

Click here to see our 2022 Investment Memo for EMH which also includes:

  • Why we Invested in EMH
  • What the key risks to our Investment thesis are
  • Our Investment plan

Where to catch the next EMN conference call


Feb 01, 2023


Investment Memo: EMN IM-2022

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Where to catch the EMN conference call

Our battery materials Investment, Euro Manganese (ASX:EMN), will be hosting its quarterly conference call on Tuesday 14 February at 9:00am AEDT.

We’ll be listening closely to CEO Matthew James as he provides an update on EMN’s progress after a strong start to Q1 which saw the company sign its first offtake term sheet.

That deal was with Verkor - a French battery manufacturing company which is preparing to build out gigafactory capacity in Dunkirk.

The gigafactory is a big part of France’s ambition to be a part of the global battery supply chain and we were pleased to see EMN make further inroads into making its Czech Republic high purity manganese project an important long-term part of the European EV market.

Topics we are particularly interested in hearing more about in this call include:

  • Progress on project financing
  • More on the demonstration plant and delivery of samples to potential customers
  • The North American Scoping Study - which could be a key plank of EMN’s business down the track following the passage of the US Inflation Reduction Act (IRA)
  • Permitting for the project

The link to the conference call can be found here:


$2.52M raised ahead of its 2023 drill programs


Feb 01, 2023


Investment Memo: LNR IM-2022

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Our rare earths Investment Lanthanein Resources (ASX: LNR) just completed a capital raise strengthening its balance sheet ahead of drill programs at both of its rare earths projects.

LNR raised a total of $2.52M at 1.8c per share.

The capital raise adds to LNR’s already strong cash position of $3.67M at 31 December 2022 which means the company should have ~$6.2M in cash on hand.

The placement also came with 1 free attaching option for every two placement shares issued, exercisable at 3c per share, expiring 31 December 2024.

The placement will see LNR issue:

  • 140,000,000 LNR shares (to be issued on the 10th of February 2023)
  • 70,000,000 listed options.

We especially like that LNR has managed to lock away a capital raise well in advance of its drill programs.

Typically we see junior explorers wait until their cash balances are low before doing a raise, the problem with this is that most investors get a sense of a capital raise being needed which means the company is more of a price taker when it comes time to raise.

By getting ahead of this problem LNR can now focus on exploration instead of having to raise capital closer to a drill program AND if the company does successfully make a new large scale discovery investors will have to step up and buy LNR shares on market.

What’s next for LNR?

LNR is now well capitalised going into its first drill program for the year at its South Australian ionic clay hosted rare earths project. LNR expects to be drilling here before the end of this quarter.

The company will then move to drilling its large carbonatite targets at its rare earths project in the Gascoyne region - next door to Hastings Technology Metals ($446M) and Dreadnought Resources ($340M).

We are also waiting on some more of the assay results from the company’s last round of drilling, as of the latest quarterly update LNR confirmed that ~70% of results had been received to date.

Second director appointment this week


Feb 01, 2023


Investment Memo: IVZ IM-2022

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Our 2020 Energy Pick of the Year Invictus Energy (ASX: IVZ) just added another director to its board for the second time this week.

IVZ has brought in Robin Sutherland as a Non-Executive Director who brings with him >35 years of oil and gas exploration/production experience in Africa.

Robin was a part of the Energy Africa team as a specialist geophysicist in 1997, playing a role in several important hydrocarbon resource discoveries across several African countries.

In 2004, after Tullow acquired Energy Africa, Robin led the Tullow exploration team through multiple discoveries, including the ones made in the Lokichar Basin in Kenya.

For those who haven't seen our previous IVZ coverage, the Lokichar Basin in Kenya is where our first ever oil and gas exploration Investment, Africa Oil, made its basin-opening discovery.

We have written about the analogies between IVZ's project and the Lokichar basin before - to see a deep dive we did on the two, check out the following IVZ note: IVZ to drill any day now - What a past successful exploration campaign looks like

Robin's appointment follows the appointment of John Bentley earlier this week, who was also a part of the formation of Energy Africa and its eventual sale to Tullow Oil in 2004.

The two new board members bring to IVZ experience across Africa and, more importantly, a heap of experience in making and developing play-opening discoveries.

With a strengthened board, we hope IVZ can apply all of its in-house experience and lead the company to an official discovery with its next well.

IVZ has just proved a working hydrocarbon system at its project and is now looking ahead to a second drill program this year.

To see our take on what's next for IVZ, check out our last note here: What's next for IVZ?

Tanzanian uranium assets acquisition completed


Jan 31, 2023


Investment Memo: AKN IM1
Objective 4 : Complete the Tanzanian uranium assets acquisition

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Earlier this morning, our exploration junior Investment AuKing Mining (ASX:AKN) completed its acquisition of a suite of highly prospective Tanzanian uranium and copper assets.

As announced on 19 October 2022, the acquisition for 100% interest in six projects in Tanzania was in exchange for $6M in AKN scrip (see our coverage of the deal here). The project suite comprises:

  • Four prospective uranium projects (Mkuju, Manyoni, Itigi and Magaga) and
  • Two prospective copper projects (namely Mpanda and Karema).

With the uranium commodity price recently surpassing the US$50/lb benchmark, we are bullish on the sector broadly, and are keen to see AKN progress its two most advanced uranium prospects in Manyoni and Mkuji this year.

  • Mkuju - resides next door to an existing substantial U resource, namely the Nyota Project - non-JORC uranium resource of 108.9Mt @ 422ppm U3O8.
  • Manyoni - hosts a 92Mt @ 144ppm U3O8 non-JORC resource.

We are also fans of the vendor - Mr Asimwe Kabunga - who has now joined AKN as Chairman. We hope that he can replicate for AKN some of the success he has helped generate in other companies that he has founded (consider $220M-capped Lindian Resources, up ~700% for the year; and $38M-capped Resource Mining, up ~300% for the year).

What’s next?

With the acquisition now completed, AKN will be keen to get on the ground for early exploration field-work.

AKN has earmarked key uranium prospects, Manyoni and Mkuju, as priorities this year. An infill drilling programme at Manyoni is set to start shortly, with an upgraded resource estimate to JORC 2012 standards is expected later this quarter.

Review of TMR’s 2022 exploration program


Jan 31, 2023


Investment Memo: TMR IM-2022
Objective 1 : Make new discoveries at the Canadian gold project.
Objective 2 : Upgrade the JORC resource at the Canadian gold project.
Milestone 2 : Drilling results
Milestone 1 : JORC resource estimation commenced

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Yesterday morning our gold exploration Investment Tempus Resources (ASX: TMR) put out a year-end review of all the exploration work completed in 2022 and TMR’s president and CEO Jason Bahnsen is calling it “the most successful year to date at the Elizabeth Gold Project”.

In 2022 TMR completed a total of 40 drillholes for ~9,798 metres of drilling with a large portion of the drilling focused on the high grade ‘Blue Vein’ & ‘No.9 Vein’ structures.

The key takeaways from last year's drill program were as follows:

  1. Mineralisation extended across No.9 and Blue Vein’s.
  2. Five of the drillholes from the 2022 drill program assayed “bonanza” grades with assays totalling over 28g/t of gold
  3. Assays have been received for 33 holes with assays for seven holes pending.

TMR now has a total of six primary vein targets that it can target in future drill programs.

What’s next for TMR?

Updated mineral resource estimate 🔄

The current focus for the company is on converting the non JORC historical resource estimate of ~206k ounces into a JORC compliant maiden resource estimate for the project.

TMR will include an additional ~129 drillholes that all sit outside of the current historical resource estimate.

The resource estimate is expected to be completed in the first half of 2023.

To see our deep dive on the upcoming JORC resource estimate and our 3D models for it check out this section from our last TMR note: Looking ahead to the maiden JORC resource estimate

New chairman appointed ahead of second drill program


Jan 30, 2023


Investment Memo: IVZ IM-2022

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This morning our 2020 Energy Pick of the Year Invictus Energy (ASX: IVZ) strengthened its board by bringing in a new non-executive chairman.

IVZ appointed John Bentley who brings over 40 years experience including Africa’s upstream oil and gas industry since 1993.

John was the CEO exploration and production of South African oil company Engen, and helped form Energy Africa Ltd in 1996 before its listing on the Johannesburg and Luxembourg stock exchanges.

As CEO, over a five year period John led the company to increase production by >400% and helped setup operations across 12 different African countries with several major discoveries across the continent.

Eventually the company was taken over by Tullow Oil for US$500M in 2004.

John’s most recent experience was with Africa Energy Corp which made the Brulpadda and Luiperd play opening discoveries offshore South Africa.

We think John’s appointment comes at the perfect time, adding a proven operator to the IVZ team who has taken discoveries into production, all the way through to an eventual sale to a major company.

IVZ has just proved a working hydrocarbon system at its project and is now looking ahead to a second drill program this year, which we hope leads to IVZ declaring a commercial discovery.

To see our take on what’s next for IVZ check out our last note here: What’s next for IVZ?

EMH now on the priority list for a €49M government grant


Jan 30, 2023


Investment Memo: EMH IM-2022
Investment Thesis 1 : Strategically important location
Objective 2 : Progress on development financing

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Our European lithium Investment European Metals Holdings (ASX: EMH) has just been classified as a "Strategic Project" for the Usti Region of the Czech Republic.

The classification is a symbol of recognition for the strategic importance of EMH's project as a potential EU-based lithium supply from the European Commission, and Czech central and regional governments.

The classification also means that EMH's project has priority status for grant funding from the €1.64BN Just Transition Fund (JTF).

Of the total available, EMH will be applying for ~€49M in potential grant funding.

EMH is still to secure the funding at this stage, but if successful, the total amount would be non-dilutive. That means it would reduce the amount of equity EMH needs to raise to finance the construction of its project.

This is the first of what we hope is more newsflow from European grant funding for critical minerals projects like EMH's.

After announcing a new "Critical Raw Minerals Act" for Europe in September, the President of the European Commission, Ursula von der Leyen, commented, "Lithium will soon be MORE important than oil and gas...".

Spooked by the energy crisis caused by a reliance on Russian gas supply, Europe is looking to avoid the same when it comes to critical minerals like lithium.

We think EMH's project, a development ready lithium project inside the European Union with the biggest hard rock resource in Europe, is exactly what the European Commission is looking for.

This is central to our Big Bet for EMH, which is:

"EMH significantly re-rates to $1BN+ market cap on reaching a successful Final Investment Decision for its hard rock lithium project strategically located in the heart of Europe."

See our most recent EMH note in which we touch on the strategic importance of EMH's project here: Lithium in the heart of Europe: Counting down to EMH's feasibility study.

More manganese samples bodes well for future drilling


Jan 30, 2023


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

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This morning, our WA-focused junior exploration Investment Pantera Minerals (ASX:PFE) announced assay results from a rock chip sampling programme at its Weelarrana Manganese Project.

Of the 31 rock chip samples, 23 returned manganese (“Mn”) grades above 10% Mn. The average grade was 25.1% Mn for the batch, with a highest Mn grade of 39.8% Mn.

Importantly, this sampling identifies manganese mineralisation at one of the recently granted tenement applications, and sets the wheels in motion for another drilling program.

This is a positive first step, however, drilling will be the only way to identify the grade, size and depth of the manganese mineralisation at the project.

Drilling is planned for the second half of 2023.

The prospect is located less than 6km from Firebirds Metals Hill (ASX:FRB) 616 Manganese deposit, which hosts a 57.5 Mt @ 12.2% Mn) resource.

We think the future remains bright for manganese given its usage within EV batteries, Volkswagen, Mercedes, Tesla and GM have all recently announced intentions to use High Purity Manganese in their vehicles.

What’s Next?:

PFE has recently reported on assay results from its maiden campaign at Mn Area 1 in Weelarrana - our coverage can be found here.

Second round RC drilling campaign at Mn Area 1 is planned to better understand the grade and thickness variability through the centre of the ore body, as well as to extend mineralisation to the north and east along strike.

Also drill permitting for Mn Areas 2, 3, and 4 continues to progress with drilling slated for the next quarter.

December quarterly report update


Jan 25, 2023


Investment Memo: GAL IM-2022
Objective 4 : Execute drilling campaigns at Norseman (Callisto) PGE Discovery
Risk 3 : Financing risk

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Our long term exploration Investment Galileo Mining (ASX: GAL) just put out its December quarterly report.

Usually the quarterly report is just a summary of the work a company has completed during the quarter - meaning there is generally no NEW news to read up on outside of the company’s latest cash balance.

GAL ended the December quarter with $20.1M in cash, but ALSO put out the following updates:

1) Calisto PGE project -

GAL said that drilling had restarted in mid-January and that assays were pending for ~15 RC/diamond drillholes.

GAL also confirmed that the company was completing metallurgical testing alongside its current round of drilling.

Together, these two updates mean we have a lot to look forward to in the coming weeks.

2) Fraser Range projects -

GAL is also running EM surveys looking to firm up future drill targets.

While the current focus is on the company’s PGE project in the Norseman project, we still think GAL’s Fraser Range projects are worth watching.

We think the potential for upside from the Fraser Range projects is not fully appreciated by the market and could re-rate GAL’s share price further.

To see what we are watching for from GAL check out our most recent note here: What’s next for GAL?

WA exploration ground now in the TEE portfolio


Jan 24, 2023


Investment Memo: TEE IM-2022

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Our domestic gas exploration Investment Top End Energy (ASX: TEE) just got hold of its first acreage in Western Australia - now holding ground in the NT, QLD and WA.

TEE has successfully applied for the L22-6 permit - a ~6,300 km^2 area that sits right on the border of the Northern Territory and Western Australia.

Importantly, the ground hosts untested basin margin extensions to the proven Amadeus Basin in the Northern Territory where TEE already holds ground.

TEE will be looking to explore the ground for gas, natural hydrogen and helium.

We note that the permit is yet to be granted.

TEE still needs to execute a native title agreement and expects this to take ~6-12 months to complete. This will mean that we don't see any exploration newsflow from this new acreage in the short-medium term.

What's next for TEE?

Seismic acquisition program in QLD 🔄

TEE, in an update late in 2022, confirmed it was planning a ~120km seismic acquisition at its QLD gas project.

Here TEE will be looking to infill the data that brought about an independently verified prospective resource of 715 billion cubic feet (on a gross mean unrisked basis).

As of the 29th of November, TEE was still negotiating land access agreements with landowners in the area to get this program started.

At the time, TEE also mentioned that it expected to kick this program off in Q1 2023, so we are hoping for some newsflow from this in the coming weeks.

Seismic acquisition program in QLD 🔄

TEE is also progressing permitting at its NT project.

We covered this in detail in a previous Quick Take which you can view here: Update on permitting for NT gas projects.

GGE locks in drilling contractor


Jan 24, 2023


Investment Memo: GGE IM2
Objective 3 : Drilling of Jesse #2 well
Risk 2 : Commercialisation risk

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Our helium Investment, Grand Gulf Energy (ASX: GGE) secured its drilling contractor today.

This drill contract was an important piece of the puzzle and means that GGE remains on track to spud its Jesse 2 helium prospect this quarter.

The drilling contractor is Aztec Well Servicing, Co which was the preferred choice of newly appointed Drilling Manager, Todd Gentles - and it is the same drilling contractors that ran the Jesse-1 drill program which delivered GGE a helium discovery.

Today’s announcement notes that, “Mr Gentles has previously worked with Aztec, including this exact rig and crew with underbalance drilling and testing procedures, whilst drilling wells at the neighbouring Doe Canyon field”.

We think the reasoning for the Aztec contractor selection is quite simple - if it ain’t broke don’t fix it.

Aztec and Mr. Gentles have a long history of success, most notably at the neighbouring Doe Canyon Helium field, which is the second largest producing North American helium discovery in over 60 years.

As we get closer to the spud date for GGE, our anticipation is building.

If successful, we think GGE can be a near term producer of helium given the proximity of GGE to pipelines.

More specifically, GGE’s helium project sits immediately adjacent to idle pipeline infrastructure that runs directly to a nearby helium processing plant.

This processing plant is owned by GGE’s offtake partner Paradox Resources - so GGE already has a local customer lined up.

In the last pass at Jesse 1A, GGE grazed the gas/water contact zone in the image below - which hampered the company’s ability to deliver a reliable flow rate:

If GGE can avoid the gas/water contact zone AND produce a reliable flow rate - then we would expect a significant re-rate.

That being said, there are no guarantees that GGE can successfully produce a flow rate.

For that reason the risk below is our primary risk going into the GGE drilling event:

What’s next for GGE?

We’re looking for GGE to firm up the spud date.

With drilling expected to commence this quarter we are hoping this newsflow is only weeks away.

The latest drilling data & what’s next


Jan 23, 2023


Investment Memo: IVZ IM-2022
Objective 4 : This is the most important: We want to see the first drill.
Milestone 2 : Drilling results

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This morning our 2020 Energy Pick of The Year Invictus Energy (ASX: IVZ) put out an operations update for its Mukuyu-1 sidetrack well.

IVZ confirmed the presence of 13 potential hydrocarbon-bearing zones with a gross interval of ~225m in the primary Upper Angwa target alone.

The image below shows where the potential hydrocarbon-bearing zones sit:

We also note the commentary from IVZ about further reservoir and potential pay intervals being hit in the Upper Angwa section when IVZ continued drilling below the initially targeted total depth (between 3,618m and 3,923m).

Unfortunately, IVZ couldn't get any data from this deeper section due to equipment failures. The positive is that IVZ can design future follow up wells knowing there is potential down at those depths.

What's next for IVZ?

IVZ is now calibrating the drilling data from Mukuyu-1 and the Mukuyu-1 sidetrack well, overlaying it with all of the seismic data on hand in preparation for its next phase of drilling (Mukuyu-2 appraisal well, Baobab-1 basin margin well & across its other prospects).

At this stage, IVZ hasn't set a firm timeline for when it expects to drill the next well.

IVZ intends to put out some guidance on the timing of the forward exploration program based on the company's ability to order long lead items and the tendering for well services.

To see our short overview of the two targets IVZ may look to drill, check out the what's next section of our latest IVZ note here.

Pre-drill vs post-drill risks assessment


Jan 23, 2023


Investment Memo: IVZ IM-2022
Objective 4 : This is the most important: We want to see the first drill.
Milestone 2 : Drilling results

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Our 2020 Energy Pick of the Year Invictus Energy (ASX: IVZ) just put out an operations update for its Mukuyu-1 sidetrack well in Zimbabwe’s Cabora Bassa Basin.

Included in the announcement was a short pre-drill vs post-drill comparison of the key exploration risks involved in a maiden oil and gas drilling program.

There are five key risks facing oil and gas drilling events that could impact whether a commercial discovery can be made.

Below is IVZ’s pre/post-drill review of these risks and how the company thinks they have been addressed or at least minimised.

The main takeaway for us is that the probability of making a successful discovery should improve significantly going into the company’s next round of drilling.

More developments at Colombian gold project


Jan 23, 2023


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

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Los Cerros (ASX:LCL) announced today that an ongoing detailed geological review of its Quinchia Project in Colombia has revealed a new area of interest at the Ceibal porphyry target.

This target, located less than 1km from the LCL’s at surface, high grade, Tesorito gold porphyry discovery, has not been previously tested and LCL intends to undertake an immediate low-cost field program to better understand the opportunity.

Additionally, today’s announcement confirmed that LCL can tick the box on two key deliverables that it had set out to achieve at the Quinchia project:

1) Completed the pre-scoping production assessment review investigating production options for the Quinchia Project. Several production scenarios were investigated that warrant further investigations.

The commencement of scoping studies was a key objective that we wanted to see LCL achieve, as outlined in our LCL Investment Memo last year.

2) Submitted the Miraflores Environmental Impact Assessment (EIA), marking the final major submission required for development approvals at Miraflores. LCL notes that commencing with small-scale production here is one of the production scenarios considered in the pre-scoping assessment.

We like to hear that LCL is continuing to make progress at its Colombian project following its recent acquisition of multiple copper, nickel, and gold targets in Papua New Guinea (PNG).

And while we remain positive on Colombia, we are really looking forward to exploration to begin in PNG, particularly given the existing exploration data that includes some of the highest grade rock chip assays we have seen — including massive nickel sulphides measuring 45.8% nickel; surface trenches with 2.6% copper, and 11.5g/t gold grades.

As announced last week, site preparations have already begun ahead of maiden drilling that is scheduled for March ahead of first assay results that should arrive next quarter.

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