Drilling manager appointed

ASX:GGE  

Jan 20, 2023

Announcement

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

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This morning our 2021 Catalyst Hunter Pick Of The Year Grand Gulf Energy (ASX: GGE) brought on to the team Todd Gentles as its drilling manager for the upcoming Jesse-2 well.

Todd joins Doug Frederik, who led the team to a helium discovery at the Jesse-1 well.

Todd brings over 40 years of experience including 15 years at the neighbouring Doe Canyon Helium field, which is the second largest producing North American helium discovery in over 60 years.

Todd and Doug combined have over 80 years of experience and have been a part of teams where over nine drill-rigs and 30 workover rigs were managed with annual exploration budgets of up to US$300M + OPEX budgets of US$200M.

We are hoping the calibre of people GGE will have on-site managing the drill program is enough for the company to pull off a successful drilling program.

Drilling of the Jesse-2 well is expected to commence before the end of this quarter.

The Jesse-2 well will follow up GGE’s discovery well (Jesse-1), which hit a proven helium structure with a grade up to ~1%.

The ultimate aim for Jesse-2 will be to see the company produce a commercially viable flow rate that warrants putting GGE’s helium discovery into production.

Here is what we know about GGE’s helium project now:

  1. ✅ A proven helium structure: A >61m gross gas column (with ~31m of independently audited net pay)
  2. ✅ Commercial helium grades: Helium grades of up to 1% returned to surface (higher than our 0.4% expectation)

For GGE to deliver a commercial helium project, it needs:

  1. 🔄 Commercially viable flow rate: GGE’s Jesse-2 well is being drilled with this goal in mind.

Eight drill rigs & 65,000m of drilling to increase JORC resource

ASX:LRS  

Jan 17, 2023

Announcement

Investment Memo: LRS-IM2
Investment Thesis 1 : Billion $ capped neighbour with similar geological setting
Objective 1 : JORC resource at the Brazilian lithium projects

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Today our lithium Investment Latin Resources (ASX: LRS) started its second round of drilling looking to increase its 13.3Mt @ 1.2% lithium oxide JORC lithium resource.

LRS has six diamond drill rigs on site now and has already commissioned a further two that are due to arrive on site in February.

LRS will be looking to complete ~65,000m of drilling with eight diamond drill rigs.

The primary focus for this round of drilling will be on:

1) Expanding the 13.3mt JORC resource

LRS will be drilling at depth below the existing resource footprint while also drilling in the western direction towards the ‘Collina West’ target.

2) Looking to drill out the ‘Collina West’ target.

LRS ended its last drill program with a 18.71m intercept which returned lithium grades of 1.32% to the west of its existing JORC resource.

A large focus of the 65,000m of drilling will be to drill out the area surrounding this intercept.

At the same time, LRS will also be looking to complete a round of geophysical surveys to firm up drill targets across LRS’s regional prospects.

What’s next for LRS:

Preliminary Economic Assessment (PEA) 🔄

We think the next major catalyst for LRS will be its PEA.

This will set out a first pass set of financial metrics for LRS’s project and give investors an idea of the value LRS’s resource may have.

LRS expects this to be ready for release to the market by Q1-2023.

Drilling to start this quarter - Well pad construction underway

ASX:GGE  

Jan 17, 2023

Announcement

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

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Our 2021 Catalyst Hunter Pick of the Year Grand Gulf Energy (ASX: GGE) has started building its well pad in preparation for its second well at its helium project in Utah, USA.

GGE expects to be drilling the Jesse-2 well before the end of this quarter.

The Jesse-2 well will follow up GGE’s discovery well (Jesse-1), which hit a proven helium structure with a grade up to ~1%.

The ultimate aim for Jesse-2 will be to see the company produce a commercially viable flow rate that warrants putting GGE’s helium discovery into production.

Here is what we know about GGE’s helium project now:

  1. ✅ A proven helium structure: A >61m gross gas column (with ~31m of independently audited net pay)
  2. ✅ Commercial helium grades: Helium grades of up to 1% returned to surface (higher than our 0.4% expectation)

For GGE to deliver a commercial helium project, it needs:

  1. 🔄 Commercially viable flow rate: GGE’s Jesse-2 well is being drilled with this goal in mind.

To see our deep dive on the Jesse-2 well, check out our most recent GGE note here: GGE helium drilling this quarter - can it unlock last year’s discovery?

Portfolio wide exploration update

ASX:TG1  

Jan 16, 2023

Announcement

Investment Memo: TG1 IM-2022
Investment Thesis 2 : Well located projects
Investment Thesis 4 : Tiny enterprise value (EV) means leverage to a discovery

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This morning our junior exploration Investment TechGen Metals (ASX: TG1) put out an exploration update across its project portfolio.

Most of the ongoing works are small-scale soil sampling programs that are ultimately looking to firm up drill targets that the company can test with future drill programs.

From today’s announcement, we can expect newsflow from the following projects over the coming weeks:

1) NSW Gold project - Here, TG1 is following up its gold discovery with some field mapping - the company is firming up drill targets to be included in its next round of drilling at the project.

2) WA Copper project - Here, TG1 is planning a mapping/rock chip sampling program around the parts of its project closest to Norwest Minerals ‘Bali copper project’. We note that Norwest recently put out some drill results, and its share price went from ~4.5c per share to a high of just under 8c per share.

TG1 also confirmed that it had soil sampling results due from its nickel/copper/PGE projects in WA, but at this stage, we consider these projects as early stage “side bets”.

At this stage, our focus for TG1 is on the company’s gold project in NSW (John Bull) and its WA Copper projects (Station Creek & Mt Boggola) - all of which the company drilled late last year.

Once the company has firmed up a timeline for its next round of drilling, we are planning an update to our TG1 Investment Memo.

In that Memo, we will detail what we want to see the company achieve next, why we continue to hold TG1 in our portfolio and the key risks to our Investment Thesis. Be on the lookout for this in the coming weeks.

Even more high grade graphite mineralisation

ASX:SGA  

Jan 16, 2023

Announcement

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

Shares Held: 4,802,500

Options Held: 1,391,250

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Sarytogan Graphite (ASX:SGA) today reported assay results from the final round of its 2022 drilling program at its graphite project in Kazakhstan.

Like previously announced results, these results returned thick intersections of high-grade graphite mineralisation both within and beyond the project’s existing giant Mineral Resource.

The results will contribute towards an upgrade of the existing Mineral Resource — SGA is seeking to upgrade a proportion of the resource to the Indicated category while also increasing the total tonnage of the resource.

Note that this existing Inferred Mineral resource of 209Mt @ 28.5% Total Graphitic Carbon (TGC) is the highest grade graphite resource of any ASX listed graphite company.

SGA today reported significant graphite intercepts above 25% TGC from around the margins of the Central Graphite Zone (CGZ), within the existing Mineral Resource.

These intercepts included:

Drill hole St-94:

  • 13.3m grading 33.6% TGC from surface, including 4.4m at 37.9%.

St-97:

  • 5.5m grading 29.3% TGC from 1.3m and
  • 69.1m grading 25.3% from 12.3m including 7.1m at 39.5% and including 4.0 at 36.5% and
  • 13.6m grading 21.3% from 91.6m.

St-98:

  • 22.9m grading 31.2% TGC from surface including 6.0m at 36.3%.

For the Northern Graphite Zone (NGZ), SGA also confirmed near surface high-grade graphite from two additional drill holes, reporting intersections of:

St-99:

  • 26.8m grading 30.4% TGC from surface ending in mineralisation.

St-100:

  • 47.6m grading 31.3% TGC from surface including 13.9m at 40.2% and including 6.8m at 37.0%.

What’s next?

As mentioned, SGA is working on a Mineral Resource upgrade, focussing on estimating a proportion of Indicated resources as well as increasing the total tonnage, ahead of further metallurgical test-work and economic evaluation.

Optimisation of metallurgical test work is also ongoing at the Australian and German laboratories following early results last year that returned up to 99.87% TGC purity.

In December, we named SGA as our 2022 Small Cap Pick of the Year after the company announced its breakthrough metwork result. You can read more on that decision and the metwork result here - Introducing our Next Investors Small Cap Pick of the Year for 2022.

First drilling campaign planned for new PNG assets

ASX:LCL  

Jan 16, 2023

Announcement

Investment Memo: LCL IM-2022

Shares Held: 3,210,000

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In November 2022, our junior exploration Investment Los Cerros (ASX:LCL) acquired multiple high-grade copper, gold and nickel targets across five project areas in Papua New Guinea (PNG).

The company today announced it has selected the Kusi Copper/Gold Prospect for the first drilling campaign of these assets.

So, why Kusi first?

Kusi lies within the Ono Project, which is perhaps the most advanced of the new projects acquired. Oso spans some 1,630km2 and is considered prospective for high grade oxide gold in skarns along with epithermal and porphyry style mineralisation.

It is located ~150km from the industrial port of Lae, and within the same structural belt as the multi-million-ounce Hidden Valley gold mine (8Moz) and the Wafi-Golpu copper/gold project (28Moz Au + 13.7Mt Cu). Despite its high prospectivity, much of the project area has never been prospected nor assessed with modern techniques and understanding

At Kusi in particular, historical drill intersections have been impressive, including 35m @ 3.04g/t gold from 136m, plus there is trench sampling that includes 8m @ 11.5g/t gold, 2.6% copper, 24g/t silver.

The combination of big regional discoveries within the same geological formations alongside existing trove of drilling data and gold intercepts made Kusi the standout choice to focus initial exploration activities.

A 3,000m drilling campaign is now in the works, which will deliver over ~18 diamond holes, and is expected to commence in March. A semi-permanent field base is being constructed near the Kusi village — a sign that LCL expects to be drilling here for quite some time (i.e. beyond this initial campaign).

We’re hoping that results from this campaign will lead to progress on our Big Bet for LCL:

“LCL to re-rate 1,000% off exploration success on its new PNG gold, copper, nickel projects or from developing its advanced gold project in Colombia.”

NOTE: our “Big Bet” is what we HOPE the ultimate success scenario looks like for this particular Investment over the long term (3+ years). There is a lot of work to be done, many risks involved - just some of which we list in our LCL Investment Memo. Success will require a significant amount of luck. There is no guarantee that our Big Bet will ever come true.

Next up

We await drilling to commence in March, with first assays expected in the following quarter. We are also keen to see an update on the progress of LCL’s Preliminary Economic Assessment (PEA) at its Quinchia Project in Colombia, which would provide clarity on what investment returns that development of the project could deliver.

DXB could expand FSGS addressable market by ~5-10%%

ASX:DXB  

Jan 13, 2023

Announcement

Investment Memo: DXB IM-2022
Objective 4 : Progress the Phase III Clinical Trial for Rare Kidney Disease (FSGS)

Shares Held: 2,525,000

Options Held: 624,994

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Yesterday our 2021 Biotech Pick of the Year, Dimerix (ASX:DXB), announced that the FDA approved paediatric patients (children aged 12-17) to be recruited into its FSGS study Phase III.

These patients will be counted in the final pool for analysis.

This decision by the FDA is important not only because it may help children suffering from FSGS (a rare kidney disease), but also because it increases the total addressable market for DXB’s drug.

There are roughly 220,000 people who suffer from FSGS around the world and we estimate that children make up ~5-10% of that number (based on our rough calculations - this calculation was done across publicly available sources, using ratios of incidence of FSGS).

This decision ensures that those patients can be treated (if DXB’s treatment secures FDA approval), which we think could meaningfully increase the value of DXB’s treatment when negotiating licensing and marketing deals with potential partners.

Also, if DXB is successful in bringing in these adolescents – there is a regulatory process in the US that means treating children could secure an additional 6 months exclusivity (in addition to the 7 years exclusivity in the US DXB would already get) where patents cannot be challenged and no generics may enter the market.

Now that the FDA has granted approval, DXB will look to secure a similar approval in Europe.

Along with today’s announcement, DXB provided a patient recruitment update which is currently sitting at 90 patients.

The company completed recruitment for its first 72 patients required for the interim analysis data in December last year.

The next patient recruitment milestone will be 144 patients recruited for the accelerated approval endpoint.

We think that 18 patients recruited in the past month shows momentum for the clinical trial, and we hope that this continues through 2023.

CEO appointment ahead of Copper Ridge results

ASX:TTM  

Jan 12, 2023

Announcement

Investment Memo: TTM IM-2022
Investment Thesis 3 : Copper side bets

Shares Held: 3,899,250

Options Held: 0

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This morning, our Ecuadorian gold and copper Investment Titan Minerals (ASX:TTM) appointed highly experienced mining and resource sector executive Melanie Leighton to spearhead the team as the new Chief Executive Officer.

Melanie brings a wealth of experience (some two decades as a geologist across multiple commodities, deposits and jurisdictions) including key management roles with notable resource companies including Hot Chili Limited, Harmony Gold, Hill 50 Gold and Northwest Resources.

We like that Melanie’s expertise line up well with TTM being in the exploration (both discovery and resource definition) and development phase. Given the presence of Australian mining icon Peter Cook as Chairman, and ex-Newmont/ Goldcorp senior geo Michael Skead as COO/ Country Manager, we believe that TTM boasts one of the more impressive management teams that we’ve seen in the junior space.

First up for the new CEO is delivering the results for the exciting Copper Ridge copper porphyry prospect at TTM’s Linderos project. With very promising results from the first two assays - we covered this in December 2022 in TTM honing in on potential copper-gold porphyry discovery - we’re very keen to see what the remaining six assays reveal, likely next month.

What’s next?

Besides the assays for Copper Ridge, we expect results from drilling at the Meseta gold prospect, also part of the Linderos project.

We also anticipate an update shortly for the flagship Dynasty project, located 20km down the road from Linderos. For the better part of the past two years, TTM (as well as the market) has primarily focused on converting Dynasty’s ~2.1 million ounce gold, 16.8m ounce silver foreign resource estimate into JORC status.

We should also receive further clarity in terms of funding all of TTM’s drilling campaigns with an update on the Arkham transaction later this quarter.

Readers can follow the company’s advancements here via our TTM Progress Tracker.

Helium offtake agreement extended

ASX:GGE  

Jan 09, 2023

Announcement

Investment Memo: GGE IM2
Investment Thesis 2 : Offtake and strategic agreement in place
Objective 3 : Drilling of Jesse #2 well

Shares Held: 32,510,000

Options Held: 0

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This morning our 2021 Catalyst Hunter Pick of the Year Grand Gulf Energy (ASX: GGE) extended its offtake agreement for its helium project in Utah, USA.

The agreement builds on GGE’s existing deal with Paradox Resources so that all of the anticipated helium production from the Jesse-2 well, which GGE expects to drill this quarter, is now accounted for.

Context on the offtake partner Paradox Resources:

Paradox owns the advanced Lisbon Valley Helium Plant that’s located 20 miles north of GGE’s project, providing a low cost, quick path to monetisation for GGE’s Jesse-2 well.

Paradox’s plant is one of only eight helium liquefiers in the US and has ~7% of North America’s helium liquefaction capacity. This means the facility can produce 99.9995% purity helium used in the semiconductor, defence, and space industries.

Should GGE achieve a commercially viable flow rate from its Jesse-2 well, it will become the priority raw gas helium supplier to Paradox’s liquefaction plant and the high-purity helium market.

We are now looking forward to GGE contracting a drill rig and the first spudding of the Jesse-2 well, following up on the company’s discovery well (Jesse-1) from last year.

The ultimate aim for Jesse-2 will be to see the company produce a commercially viable flow rate that warrants putting GGE’s helium discovery into production.

Here is what we know about GGE’s helium project now:

  1. ✅ A proven helium structure: A >61m gross gas column (with ~31m of independently audited net pay)
  2. ✅ Commercial helium grades: Helium grades of up to 1% returned to surface (higher than our 0.4% expectation)

For GGE to deliver a commercial helium project it needs:

  1. 🔄 Commercially viable flow rate: GGE’s Jesse-2 well is being drilled with this goal in mind.

To see our deep dive on the Jesse-2 well, check out our most recent GGE note here: GGE helium drilling this quarter - can it unlock last year’s discovery?

Euro Manganese submits ESIA + Sustainability report

ASX:EMN  

Jan 06, 2023

Announcement

Investment Memo: EMN IM-2022

Shares Held: 1,490,000

Options Held: 0

Trust Centre


Yesterday, our long term European battery metals Investment, Euro Manganese (ASX: EMN), submitted its final Environmental & Social Impact Assessment to the Ministry of Environment in the Czech Republic.

We see this as an important part of EMN’s stakeholder relations in the Czech Republic - and EMN flagged that the ESIA is the main step in the Project’s environmental permitting process.

The approval process is expected to take six months.

EMN also published its inaugural Sustainability Report - which is an easy to digest report on the multiple benefits EMN’s project brings to the table, both to the municipalities of Chvaletice and Trnávka, the broader Czech Republic and Europe.

Once again, EMN is sticking to timelines as laid out in the latest presentation:

What’s next for EMN?

We’re looking forward to an update on the first demonstration plant shipments being sent to customers, a potential offtake, the appointment of an EPCM contractor, and the completion of the North American project Scoping Study.

All of this is expected in Q1 this year - meaning a busy quarter ahead for EMN.

$3.5M in funding secured

ASX:TMZ  

Jan 04, 2023

Announcement

Investment Memo: TMZ IM-2022
Risk 3 : Funding risk

Shares Held: 5,472,748

Options Held: 1,368,190

Trust Centre


This morning our silver Investment Thomson Resources (ASX: TMZ) secured another funding facility from financier Lind Global Fund II.

The amount secured through the funding facility is for a total of $3.5M that TMZ can access over 12 months.

This follows from a previous agreement signed with Lind last August for ~$2.2M.

The funding facility is unique because every time TMZ draws down funds from the facility, Lind is issued TMZ shares based on a pre-determined VWAP formula.

At a very high level, it is an exchange of cash to TMZ and then TMZ shares to Lind.

The key terms of the funding facility are as follows:

  • Term of facility = 12 months with an option to extend for a further 12 months.
  • Amount available = $3.5M.
  • Initial drawdown = TMZ being extended a gross $400k ($288k net of fees) as the initial drawdown.
  • Monthly drawdowns = Lind can extend to TMZ $100k per month. TMZ can choose to reduce draw downs to $25k per month or increase them to $300k per month.

The share price that the monthly share issuances will occur will be at the lesser of the following:

  • 3c per TMZ share.
  • 90% of a 5-day volume weighted average price (VWAP) subject to a floor price of 1.8c per share.

If the share price is less than the floor price, TMZ will have the option to try and repay the amount in cash instead of through the issuance of shares.

We have seen this type of funding arrangement before and usually expect to see the monthly share issuances create some level of churn over the period of the funding facility. As a result, we think the TMZ share price could trade sideways, barring any major news that takes the company’s share price higher.

On that front, we still want to see TMZ achieve the important 100Moz silver equivalent metric, which was our #1 Objective for TMZ in our Investment Memo:

In our latest TMZ note, we detailed how we think the company could manage to hit this target. Read that note here.

These are our bull, base, and bear cases:

  • Bullish case = >100Moz AgEq
  • Base case = 90-100Moz AgEq
  • Bear = 90Moz AgEq

More high grade assay results - discovery continues to grow

ASX:GAL  

Jan 04, 2023

Announcement

Investment Memo: GAL IM-2022
Objective 4 : Execute drilling campaigns at Norseman (Callisto) PGE Discovery
Milestone 3 : Assay results: (Bull case = over 3.0 g/t, Base Case = over 1.0 g/t, Bearish case = grades start to fall below 1g/t.)

Shares Held: 2,161,544

Options Held: 0

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This morning our long term Investment Galileo Mining (ASX: GAL) put out another batch of assay results.

The highlight intercept came from the deeper southeastern section of GAL’s discovery with a 33m intercept measuring 2.05g/t PGE’s.

Inside that intercept, GAL also reported a 1m interval with palladium grades up to 7.06g/t.

Today’s assay results demonstrate that GAL’s discovery has consistently high grades. For some context, the giant Platreef deposit, which GAL has compared its discovery to in the past, has palladium grades of ~2.01g/t.

Another interesting takeaway from today’s results was that GAL hit the highest individual copper and gold grades drilled to date - a positive sign that GAL’s discovery continues to hold significant exploration upside.

We found the following quote from Managing Director Brad Underwood the perfect summary of this potential:

“Geological interpretation suggests that the Callisto rock unit originated further to the east and that the ultimate source of mineralisation may yet be discovered at this location.

GAL plans to restart drilling in the deeper southeastern section of its discovery in mid-January to test this theory.

In the meantime, we’re looking forward to the remaining assay results pending from 15 RC and diamond drillholes.

What’s next for GAL?

Assay results pending from the red drillholes below 🔄

$8M raised - TWO major conditions to acquisition met

ASX:PUR  

Jan 03, 2023

Announcement

Investment Memo: PUR-IM1

Shares Held: 25,133,333

Options Held: 0

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This morning our lithium Investment Pursuit Minerals (ASX: PUR) confirmed that two important conditions to the acquisition of its lithium brine project had been met.

A few weeks back PUR first announced its plans to acquire an advanced lithium asset in Argentina.

This asset sits in South America's 'lithium triangle', a region home to ~50% of the world's lithium production and multi-billion dollar lithium majors like SQM and Albemarle.

At the time of the announcement (14th December 2022), the deal was contingent on an $8M capital raise and the acquisition of the ground that makes up the project - today, PUR confirmed that both these conditions had been met.

After this, Trilogy (the company that PUR is acquiring) holds the first four out of five tenements that it has under option.

The capital raise was done by issuing Trilogy class B notes, all of which convert into PUR shares at 1.2c per share after PUR has officially completed the deal.

These shares are all expected to come to market later this month after PUR shareholders have approved the transaction.

We note that after the deal is completed PUR will have ~2.56BN shares on issue, as a result we think that the share price could "churn" or move sideways until at least the completion of the deal.

We touched on all of the share issuances that are still to come in our PUR launch note.

After today's announcement the remaining conditions for the deal are as follows:

  1. Due diligence process being completed.
  2. Shareholder approvals including to issue all of the shares necessary to complete the deal.
  3. Regulatory and third party approvals.

PUR confirmed today that shareholder approvals will be sought in early February this year.

To see all of the reasons why we Invested in PUR, what we want to see the company achieve this year as well as the key risks to our Investment thesis check out our launch note here - PUR - Now a $31M advanced stage lithium stock

EXR wraps up a strong year at its 3 energy projects

ASX:EXR  

Dec 22, 2022

Announcement

Investment Memo: EXR IM-2022

Shares Held: 2,895,000

Options Held: 0

Trust Centre


This morning our 2019 Energy Pick of the Year, Elixir Energy (ASX:EXR), provided an on progress made this year across its portfolio of energy projects.

Let’s take a look...

Mongolian CBM gas project

EXR discovered multiple new sub-basins, drilling ~17 exploration and appraisal wells in 2022.

More importantly, EXR recently announced that gas had flowed in sufficient quantities to ignite a flare from a two-hole pilot production test program – a first for Mongolia’s petroleum industry. This ​​is a demonstration of a repeatable process for EXR of exploration to appraisal to pilot production.

This was EXR’s third year drilling its CBM gas project in Mongolia, and although the project appeared to be ‘running in background’ at times for EXR, there was very strong progress made in particular with securing a gas flow from the production testing wells.

This was the number 1 objective that we wanted to see EXR achieve this year, and we feel that the company accomplished this and even exceeded expectations with a gas flow result.

What’s next for the Mongolian gas project?

The ultimate aim for the production testing program is to produce a commercial flow-rate from the pilot production program early in 2023 before a reserves number can be booked for the project.

Alongside the pilot production, EXR drilled 11,576m in 2022 across the project area. Analysis and interpretation of this program is underway and will supplement the emerging results of the pilot program as the key inputs for EXRs Mongolian CBM plans in 2023.

Mongolian green hydrogen project

Back in June EXR signed a Memorandum of Understanding (MOU) with SB Energy Corp (a wholly owned subsidiary of Japan’s second largest company, SoftBank Group Corp) to develop a hydrogen project in Mongolia.

This came as a big surprise to us, and with the support of a major investor like SoftBank, we think this project could gain traction, particularly given the vast wind and solar assets of the project’s location in the Gobi desert.

According to the MOU, both SB Energy Corp and EXR are progressing different parts of the Pre-Feasibility (PFS) work required for a pilot green hydrogen project including:

  • water procurement
  • site selection
  • engineering studies
  • offtaker engagement
  • project financing

What’s next for the green hydrogen project?

In 2023 we expect EXR together with SB Energy Corp to focus on getting all of the data required to complete the PFS.

We think that this could be the ‘dark horse’ project for EXR going into 2023. Particularly if hydrogen continues to be prioritised by governments and corporations looking to transition to renewable energy.

Gas project in Queensland

In response to the upheaval of global energy markets, in August EXR acquired a gas project in Queensland’s Taroom Trough and just south of Australia’s premier gas hub, and EXR has since done technical work that resulted in the booking of an independently certified contingent gas resource of 395 billion cubic feet (BCF).

Click here if you want to read our deep dive into this project: EXR to drill for gas in Queensland - Next Door to Shell and Santos

What’s next for the QLD gas project?

EXR is planning a drilling program in late 2023 aiming to increase contingent resources and produce a commercially viable flow rate.

EXR had ~$19M in cash in the bank (as at 30 September 2022), meaning it can work on progressing its projects without having to worry about the need to raise capital in the short-medium term.

We are looking forward to updates across EXR’s projects in the new year.

Uranium strike length more than doubled in 2022

ASX:GTR  

Dec 22, 2022

Announcement

Investment Memo: GTR IM-2022
Objective 2 : Drilling at the company’s Wyoming uranium projects.
Milestone 4 : Drilling results

Shares Held: 16,662,000

Options Held: 746,615

Trust Centre


Our U.S. based uranium Investment GTI Energy (ASX: GTR) just finished its 2022 drilling program at its project in Wyoming’s Great Divide Basin - the home of the US uranium industry.

With this drill program, GTR completed a total of ~103 drillholes and managed to increase the total strike length (mineralised roll front trends) for its project to 7.5 miles (~12km).

The increase in strike length to ~12km is a large upgrade on the project's initial ~5km of strike before GTR started its 2022 drilling program.

Below is a map of GTR’s project showing where the strike lengths were extended:

While GTR has completed all of its drilling for 2022, the company said it would “evaluate options to conduct further drilling, under the permitted program during early 2023 subject to weather conditions” meaning we could see GTR drill again in early 2023.

We hope the progress made with drilling translates into a maiden JORC resource for the company. We consider a maiden JORC resource to be a significant catalyst that would bring GTR onto the watchlists of the major uranium players in Wyoming.

With the ultimate aim of the drilling program being either an exploration target or a maiden JORC resource, we set up our expectations around potential outcomes for GTR as follows:

Assays are in for RAS’s kaolin-halloysite project in WA

ASX:RAS  

Dec 22, 2022

Announcement

Investment Memo: RAS IM-2022
Objective 2 : Drilling results from the Halloysite project in WA
Milestone 1 : Drilling results

Shares Held: 1,500,000

Options Held: 0

Trust Centre


Our junior exploration Investment Ragusa Minerals (ASX: RAS) just announced assay results from drilling at its kaolin-halloysite project in WA.

The drill results returned halloysite mineralisation with a peak intercept of 9m at 23% halloysite from a depth of just 20m - Included in this intercept was a high grade section of 1m at 40% halloysite.

Once the remaining assays from the drilling program are received RAS should be in a position to put together a maiden JORC resource estimate.

We think RAS still has plenty of exploration upside at this project with the drill result covering only ~5% of its total project area.

The image below shows how small of an area RAS has drilled to date, blue showing the larger project area and the area RAS has drilled (in red).

What’s next for RAS’s halloysite project?

RAS confirmed that assays are still pending from the project and that results are expected over the coming weeks.

After the complete set of results are in, RAS can move into the resource definition phase for this project.

ALA gets option for cytokine tech to enhance iNKT platform

ASX:ALA  

Dec 21, 2022

Announcement

Investment Memo: ALA IM-2022
Objective 3 : Explore complementary licensing opportunities

Shares Held: 13,631,579

Options Held: 0

Trust Centre


Yesterday our preclinical stage biotech Investment, Arovella Therapeutics (ASX:ALA), announced it had signed an exclusive option to license a cytokine technology.

Cytokines are small proteins important in cell signalling for the immune system and we see the use of this technology as a potential “booster” for ALA’s existing iNKT platform.

In other words, the cytokine tech can cause iNKT cells to persist for longer - so they don’t get cycled out of the body as quickly - boosting their effectiveness.

The Professor behind the cytokine technology, is Gianpietro Dotti University of North Carolina Lineberger Comprehensive Cancer Center who is an eminent scholar in the field iNKT cells:

A quick search of Professor Dotti’s publications yields more than 193 works which he has either authored or contributed to - a rough measure of his significant influence in the field of cancer immunotherapy.

Importantly, Dotti also worked on a program studying the CD19-specific chimeric antigen receptor (CAR) - the very same receptor that ALA is working on in its upcoming slate of preclinical trials which will involve Imugene’s onCARlytics platform:

The exclusive option agreement, which was for an “immaterial” (small) cost lasts for 15 months and has two primary benefits:

  1. If initial data is good, it allows ALA to secure an enhancement to its technology
  2. Because it is exclusive, it gives ALA a potential leg up over other iNKT cell therapy companies

Since refocusing the business exclusively on cancer immunotherapy we’re pleased with this announcement as it advances Key Objective #3 from our ALA Investment Memo:

What’s next for ALA? As outlined in the milestones above, Q1 will see ALA conduct a test tube study using the ALA+Imugene therapy in solid cancer cells. We’re also particularly looking forward to the data from the in vivo tests which follow in Q2 which could be a big catalyst for ALA.

Strategic investor tips in $12.1M - 42% premium to share price

ASX:CAY  

Dec 21, 2022

Announcement

Investment Memo: CAY IM-2022
Risk 6 : Funding risk

Shares Held: 3,000,000

Options Held: 0

Trust Centre


Our bauxite Investment Canyon Resources (ASX: CAY) has just secured a strategic investment from investors who specialise in projects in Africa - Eagle Eye Asset Holdings.

The strategic investment sees CAY raise $12.1M at a share price of 6c per share — a ~42% premium to the company’s 30-day VWAP (volume weighted average price).

The deal also sees CAY issue 1:1 free options to the strategic investor who will own ~19.9% of CAY after the deal is completed and become the company’s largest shareholder.

The dilution to existing CAY shareholders is as follows:

  • 202,900,000 CAY shares
  • 202,900,000 options (exercise price of 7c per share, expiry date - 10 August 2025)

The shares are expected to be issued this Friday (23 December 2022):

What’s next for CAY?

Mining Convention Agreement 🔃

The Mining Convention is the key agreement with the State of Cameroon that sets out fiscal and legal rights on the project, and it is the precursor for a mining permit.

Once formally signed, this agreement will allow CAY to begin negotiating offtake agreements and development financing partnerships.

As of the latest quarterly report CAY confirmed that applications for the granting of a mining permit have been completed and submitted.

The next step will be to sign off on the Mining Convention agreement.

Intrusive rock types confirmed at NSW gold project

ASX:TG1  

Dec 20, 2022

Announcement

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

Shares Held: 2,331,081

Options Held: 0

Trust Centre


Our junior exploration Investment TechGen Metals (ASX: TG1) today provided an update on petrology results from its John Bull Gold Project in NSW.

The results from eight samples collected during soil sampling confirmed intrusive rock types in the project area. Importantly, this suggest that the host source could be an intrusive system as compared to the orogenic system that TG1 observed at the surface.

If this is the case — to be confirmed by follow up drilling next year — then TG1 could in fact have a very large gold system on its hands.

There are several features of the geology and mineralisation at the project that support TG1’s interpretation of a possible Intrusion Related Gold System (IRGS) style of mineralisation, and IRGS gold deposits are known to be present in the area.

This cross section shows the Intrusion Related Gold System Model (on left) and how gold mineralisation can occur in relation to an intrusive body. On the right is the interpreted position of the TG1’s project within that IRGS model.

Note, that this is only an interpretation of what the intrusion related system could look like at TG1’s project —  only through drilling will the company know if in fact this type of system exists.

While TG1 holds a portfolio of twenty-five exploration licences across five geological regions in WA and NSW, drilling at this NSW gold project was the #1 objective in our TG1 Investment Memo that we wanted to see achieved.

What’s next at TG1’s NSW gold project?

In the new year, TG1 wants to commence further field mapping at the project area. Planning and permitting is underway for a follow-up RC and diamond drilling program to test for depth extensions beneath recent RC drill intersections and also to undertake step out drill lines to both the north and south of recent drilling.

Promising early flow rates at coal seam gas project

ASX:EXR  

Dec 20, 2022

Announcement

Investment Memo: EXR IM-2022
Objective 1 : Pilot production program at the gas project
Objective 2 : Exploration drilling

Shares Held: 2,895,000

Options Held: 0

Trust Centre


Our energy Investment Elixir Energy (ASX: EXR) today announced promising early flow rates from its pilot production test at its coalbed methane project in Mongolia.

Testing at EXR’s Nomgon pilot production plant is ongoing with production from the pilot to continue into the New Year.

EXR say that its plan to determine if a commercial flow rate can be established is on track.

The well is seeing growing water and gas rates. We’re pleased to see that the produced water rates (which were low in the first place due to the high gas saturated nature of the coals) are decreasing while the casing (gas) pressure is steadily increasing.

EXR expects gas flow-rates to have stabilised early in 2023.

We also like to see that the gas samples from the flow tests have measured 99% methane content and the salt content of produced water is now fresher than previously measured. Both of these factors support materially lower costs and environmental impacts in the development stage.

2022 exploration and appraisal drilling program complete

In the announcement today EXR also reported that its 2022 exploration and appraisal drilling program is now complete.

A total of 17 wells were drilled in the year (excluding the Nomgon-8 and 9 pilot wells).

In total, Elixir drilled 11,576 metres in 2022 at its Nomgon IX project, having recently mobilised a new drilling company that applied new drilling systems that allow for wells to be drilled more quickly and with greater confidence.

Analysis and interpretation of this program is underway and will supplement the emerging results of the pilot program as the key inputs for the company’s Mongolian CBM plans in 2023.

The pilot production testing and completion of the 2022 exploration program were the key objectives that we wanted to see EXR achieve this year at its Mongolian gas project:

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