Update on permitting for NT gas projects

ASX:TEE  

Nov 29, 2022

Announcement

Investment Memo: TEE IM-2022
Objective 1 : Exploration licence applications to be granted over NT projects
Milestone 1 : Secure native title agreements


This morning our domestic gas exploration Investment Top End Energy (ASX: TEE) updated the market on developments across its Northern Territory gas projects.

Our key takeaway from today's update was that TEE confirmed that key decision makers from the native title holder groups returned positive feedback with no further changes to the 'Exploration Agreement' proposed.

This should mean that a lot of the negotiation process should now be completed.

We note that TEE is still waiting on some key decision makers who couldn't attend the on-country meetings in November to review the agreement before a final decision is made.

TEE also confirmed that it is "working with the NLC to determine the most timely and efficient means of facilitating a decision, acknowledging the upcoming ceremonial business period in December".

We hope that TEE can get its native title agreements signed off before the end of this year or very early into Q1-2023.

The execution of the exploration agreement by the native title holders is the key prerequisite before TEE gets its permits granted.

While all of this is ongoing, TEE is also progressing with approvals and access agreements for its planned ~150km 2D seismic survey, which it hopes to get done in H1-2023 - of course, all of this is predicated on TEE securing its permits on time.

Why is TEE looking to acquire seismic data?

TEE's highest priority permits in the Northern Territory (EP 258 and EP 259) sit on the edge of the Greater McArthur Basin, south of the discoveries Santos, Origin and Empire Energy have made across the Beetaloo sub-basin.

At the moment, TEE has no seismic data available over the project area, but data collected by TEE's neighbours seem to suggest that the structures which they have drilled and made discoveries could extend into TEE's ground.

TEE is looking to test this theory in 2023, but before the company can do any exploration work, it needs to finalise permitting and secure its tenure.

Noble finds more helium in Tanzania

ASX:NHE  

Nov 28, 2022

Announcement

Investment Memo: NHE IM-2022
Objective 2 : Target generation to produce two drillable targets
Milestone 3 : Geochemistry survey (Q2-Q3 2022)


There’s more helium coming out of the fertile soil of Tanzania, which is good news for our helium Investment, Noble Helium (ASX:NHE).

In a positive development today, NHE’s Soil Gas Surveys at North Nyasa near the border of Malawi returned 7.8 parts per million (ppm), which is more than 40% above background levels - a strong indication that the southern Prospecting Licences (PLs) could warrant further exploration.

Below is where these licences are located:

The Soil Gas Surveys are a precursor to a maiden Prospective Resource Estimate at North Nyasa which could add to what is an already mammoth prospective resource at North Rukwa - NHE has a summed unrisked Prospective Helium Resource of 176 Bcf there.

For context, that would be the largest single company helium resource - if proven out.

North Rukwa is the primary focus of NHE’s exploration efforts and we’re expecting the 3D seismic survey to be completed shortly.

We think today’s news underlines the overall prospectivity of Tanzania for helium and as a long-term project for 2023, sets NHE up nicely for future exploration activities.

With the potential to deliver ~30 years of annual helium demand at North Rukwa alone and a market size of ~$5BN for helium - we think the market could be underestimating the scope of NHE’s project as part of multi-decade demand thematic.

We’re banking on exponential demand from high tech applications such as MRI machines, aerospace and among other things particle accelerators such as the Large Hadron Collider in Switzerland/France.

What’s next for NHE?

All eyes are on the North Rukwa 3D seismic as NHE firms up its targets - NHE recently announced that it is refocusing on the eastern Chilichili leads and the very promising western leads on the other side of Lake Rukwa. With processing and interpretation to come, we’re looking forward to seeing what these Basin Margin Fault Closure plays look like.

Assay results from WA copper project

ASX:TG1  

Nov 28, 2022

Announcement

Investment Memo: TG1 IM-2022
Objective 3 : Drill test the Ashburton Basin copper projects:
Milestone 5 : Drilling results


This morning our junior exploration Investment Techgen Metals (ASX: TG1) announced a batch of assays from one of its WA copper projects at Mt Boggola.

While the drilling results returned nothing worth following up, the three drill results were completed across only a small section of TG1’s project and provides TG1 with valuable information about the project’s geology.

The results came from three RC drillholes that were testing three distinct EM anomalies sitting adjacent to high grade rock chips which returned copper grades of up to 8.7% copper.

When drilling EM anomalies, an explorer is generally looking to verify whether or not the drill targets are mineralised host rock.

TG1 confirmed in today’s release that “drilling intersected a sequence of strongly graphitic and pyritic shales which has explained the source of the EM anomalies being targeted” - this in effect means that the company hit no significant mineralisation that warrants follow up drill testing.

TG1 still however has multiple follow up exploration targets at Mt Boggola including the following:

  1. Other EM anomalies where TG1 has picked up high grade rock chips measuring up to 17.8% copper and 5.08g/t gold.
  2. Follow up exploration on rare earth targets recently found at the project.
  3. Recently identified VTEM (geophysical) anomalies.
  4. Radiometric Thorium and Uranium anomalies.

Critical minerals - Australia’s opportunity of the century

Next Investors  

Nov 25, 2022


The front page of The Australian today featured Federal Treasurer Jim Chalmers speaking at PWC’s Critical Minerals Summit, arguing that critical minerals could be the opportunity of the century for Australia and its resources sector.

Chalmers confirmed that Resources Minister Madeleine King is working to refresh the government’s Critical Minerals Strategy. The reasons why can be summarised as follows:

  • Russia’s invasion of Ukraine is a reminder of the costs and consequences of over-relying on a substantial supplier of a critical resource.
  • The war helped elevate the conversations already underway about the highly concentrated nature of commodity markets, including critical minerals supply chains.
  • Australia boasts some of the world’s largest reserves of globally significant deposits, meaning confronting geopolitical realities make for compelling opportunities for our country.
  • Mining will underpin Australia’s position as a clean energy superpower, as “We have exactly what the world needs, exactly when the world needs it”.
  • Therefore, critical minerals could be the opportunity of the century. This is a generational opportunity that we cannot miss or mishandle.
  • By 2040, global demand for lithium is expected to be 40 times bigger than 2020 levels. Demand for graphite will be 25 times bigger. 21 times bigger for cobalt.
  • Australia currently does very little value add processing, but the further we move along the supply chain and up the value chain, the greater the opportunity.
  • While Australia now supplies ~55% of the world’s lithium, we have only a very small share of the processing industry, no share of the battery precursor industry, none of the battery cell production industry, or any of the battery pack assembly industries.
  • Consider this in the context that by 2040, global lithium demand is expected to be 40 times bigger than 2020 levels, 25 times bigger for graphite, and 21 times bigger for cobalt.
  • By adding value before we export we can cement our position in the global supply chain for low-emissions technologies.
  • As more critical minerals become a locus of geo-economic competition, Australia becomes more essential to global supply chains, not only because of our globally significant mineral deposits, but our highly skilled mining sector and reputation as a solid investment destination and a broadly trusted strategic partner.

By refreshing the Critical Minerals Strategy, the government is hoping to set Australia up for a boom that lasts, with shared benefits. Chalmers envisions public capital working as a strategic complement to private investment, by managing early-stage risk and facilitating coordinated investments up the value chain.

Foreign investment will also be encouraged to help meet longer term investment requirements —  in fact, he expects that attracting more global capital that aligns with our interests will be essential. This will require cooperating more closely with key partners on investment opportunities at all stages of the value chain.

Success would see our critical minerals wealth help move us closer to energy independence; supply chain security; a high-value economy; and a stronger strategic position on the international stage.

A number of our Portfolio companies have critical minerals projects in Australia, so we of course welcome government support of the industry. We also agree that there is a huge opportunity to develop this industry including downstream value-add opportunities in Australia.

Invictus doing a sidetrack well to try and obtain a fluid sample

ASX:IVZ  

Nov 25, 2022

Announcement

Investment Memo: IVZ IM-2022


Earlier this week our 2020 Energy Pick of The Year Invictus Energy (ASX: IVZ) announced that it would be completing a sidetrack well to its Mukuyu-1 well.

IVZ confirmed that it would be drilling parallel to its existing 3,923m deep well with the ultimate aim of obtaining a fluid sample so that the company can officially declare a new discovery.

IVZ expects this to take 12 to 18 days which means we should know whether or not IVZ can officially declare a discovery by Monday the 12th of December.

As with all small cap companies, timeframes can get stretched, but we think IVZ has made excellent progress towards declaring a discovery.

IVZ has now completed its drilling program down to a total depth of ~3,923m (deeper than planned initial 3,500m).

More importantly IVZ has a ~900m gross interval in the Upper Angwa formation which was one of IVZ’s primary targets.

Here is what we know from IVZ’s Mukuyu-1 well so far:

  • ✅ A 10-15m interval indicative of potential hydrocarbons (oil and/or gas) across the first three of its targets.
  • ✅ Seal identified with several hundred-metre thickness above the primary targets. This was a key risk going into drilling. This hopefully means there’s a geological seal that’s strong enough to trap oil and/or gas in the primary targets IVZ is drilling now.
  • ✅ Elevated gas shows up to 135x above background gas levels through the first of two primary targets.
  • ✅ Elevated (100%) fluorescence, indicating condensate or light oil.
  • ✅ Elevated Logging While Drilling resistivity.
  • ✅ A working conventional hydrocarbon system.
  • ✅ ~900m gross interval in one of its primary targets. (NEW)

What is IVZ doing next?

  • 🔄 Sidetrack well to be completed - This will be when IVZ will try to identify any moveable hydrocarbons and ultimately put out a “net pay” number. (NEW)

We are hoping IVZ is able to announce the results within the guided timeframe (by the 12th of December).

Diamond drilling a ~5km copper porphyry target in Peru

ASX:LRS  

Nov 24, 2022

Announcement

Investment Memo: LRS-IM2
Risk 2 : Exploration risk


Our lithium Investment Latin Resources (ASX: LRS) has a $29.2M cash balance to use and is now drilling a copper porphyry target in Peru.

This morning LRS started a two hole diamond drilling program at its MT03 copper project in Peru, drilling a large ~5km EM anomaly.

LRS’s project sits along trend from an existing porphyry deposit at Southern Copper’s (capped at ~$68BN) Tia Maria project, which has a 639Mt resource with grades measuring 0.39% copper & 0.19g/t gold.

LRS is running a two hole program over 2,000m of drilling - basically running two holes straight into the middle of that EM target to see if there is any indication of copper porphyry style mineralisation.

We are hoping the next bit of newsflow from this project is visual sulphides, this will be a good sign LRS may have actually hit a porphyry target.

While our primary focus with LRS is on its lithium project in Brazil, we like that LRS is putting its strong cash balance to use testing low capital commitment and potentially high reward drill targets like this.

Worst case scenario, LRS spends a small amount of cash (relative to its cash balance) chasing a potential company making discovery.

What’s next for LRS?

Outside of the results from the drilling at the Peru copper prospect, we want to see LRS’s maiden mineral resource estimate, for which we previously set our expectations as follows:

  • Bull case (exceptional) = >15Mt JORC resource
  • Base case = 5-15Mt JORC resource
  • Bear case = <5Mt JORC resource

Read our latest LRS article to see how we came up with these expectations: Lithium deposit getting bigger - plenty more drilling to come.

High grade lithium in Argentina?

ASX:LRS  

Nov 24, 2022

Announcement

Investment Memo: LRS-IM2
Investment Thesis 4 : Exposure to Lithium


This morning Latin Resources (ASX: LRS) detailed its exploration plan for its lithium projects in Argentina.

While we wait for LRS to put together its maiden JORC lithium resource at its Brazilian lithium project, LRS will complete geological mapping and sampling of some of the outcropping pegmatites.

Notably, LRS will target areas where the company has identified spodumene-bearing pegmatites and those that sit along strike previous drilling results, which measured up to ~12m thick and with lithium grades as high as 2.98%.

Those drill results were from a 2017 RC drilling program before the lithium market cooled off.

Remembering that LRS’s Brazilian discovery was made off a 4.31m intercept with lithium grades of ~2.22%, we will be watching to see what comes off this exploration work.

It is still too early to tell how big the discovery potential for LRS’s Argentinian project is, but it has the right early indicators to make us interested.

Considering LRS had $29.2M in cash in the bank at the end of the September quarter, we think putting some funds behind low-cost field work like this is a prudent use of LRS’s cash balance.

The ultimate aim for this round of fieldwork will be to rank high priority drilling targets that LRS can test in future exploration programs.

Next for LRS:

We want to see LRS’s maiden mineral resource estimate, for which we previously set our expectations as follows:

  • Bull case (exceptional) = >15Mt JORC resource
  • Base case = 5-15Mt JORC resource
  • Bear case = <5Mt JORC resource

Read our latest LRS article to see how we came up with these expectations: Lithium deposit getting bigger - plenty more drilling to come.

Noble Helium’s Neighbour Gets a Rig

ASX:NHE  

Nov 24, 2022

Investment Memo: NHE IM-2022


The neighbour of our helium Investment, Noble Helium (ASX:NHE), announced earlier this week that it had sourced a new rig to drill its helium prospect in Tanzania.

The neighbour is a company called Helium One which is listed on the London Stock Exchange.

Helium One has a market cap of $93M and is drilling an unrisked prospective helium resource of 138Bcf. This compares to NHE which has a market cap of just $33M with an unrisked prospective helium resource of176 Bcf.

We’ve been watching Helium One closely as we see their drilling as a potential bonus for NHE.

I.e if Helium One finds helium in Tanzania with their upcoming drill campaign it validates NHE’s prospects of also finding helium.

Conversely, if Helium One doesn’t hit helium it’s not necessarily a bad thing for NHE - we back NHE Managing Director Justyn Wood and the newly appointed Drilling Exploration Manager, Dermot O’Keeffe, to achieve success at what we think will be more mature targets.

Interestingly, with Helium One’s rig now secured for a Q1 2023 spud date the market has reacted favourably:

Helium One has re-rated up to ~47% in the last two days of trading on the back of the news.

We’ll continue to follow the share price action of Helium One in the lead up to drilling, as with any major gas drilling event, speculators often enter the stock ahead of the spud date.

Our hope is that as NHE builds towards its Q3 2023 drilling program to test the company’s two best targets, a similar favourable market reaction plays out.

What’s next for NHE? With a Drilling Exploration Manager in place, we’re hoping to see the results of NHE’s completed 3D seismic campaign, as this could further advance farm out discussions. For a quick rundown of NHE’s significant progress to date, check out our NHE Progress Tracker.

Rhodium grades increasing at depth

ASX:GAL  

Nov 23, 2022

Announcement

Investment Memo: GAL IM-2022
Objective 4 : Execute drilling campaigns at Norseman (Callisto) PGE Discovery
Milestone 2 : Diamond drilling to test for extensions at depth.


This morning Galileo Mining (ASX: GAL) put out the highest grade rhodium assays we have seen from its PGE discovery in WA.

Rhodium is one of the metals also linked to the decarbonisation thematic because of its use in automotive pollution control systems.

In today’s announcement, GAL posted a 1m intercept with rhodium grades of 0.13g/t from a depth of ~267m.

At first glance this may seem like a low number but an economic rhodium grade is a lot different to other metals.

This is primarily because current rhodium prices are ~US$13,300 per ounce. This means that even a small amount of rhodium can add a lot of value to any new discovery.

For some context, the Platreef project in South Africa, which GAL has previously compared its discovery to, is a much deeper underground deposit and has rhodium grades measuring ~0.14g/t as part of its ore reserves.

The Platreef mineralisation starts from ~700m and extends to a depth of ~1,200m.

Importantly, GAL’s assay result today is at a similar grade but comes from a much shallower depth of only ~267m.

What’s next for GAL:

GAL is still drilling its project and has plenty of assay results pending, which we have highlighted IN purple below.

New CBD delivery format showing up available alternatives

ASX:BOD  

Nov 23, 2022

Announcement

Investment Memo: BOD IM-2022
Objective 2 : Complete Australian Phase IIb clinical trial and make low-dosage CBD treatment for insomnia available without a prescription
Objective 3 : Schedule 3 CBD product registration in Australia to allow sale in pharmacies in Australia


Yesterday, our innovative cannabis Investment Bod Australia (ASX:BOD) announced positive results from a Phase 1 Clinical Trial of its novel cannabidiol (CBD i.e. a non-hallucinogenic component of marijuana) delivery format.

The trial evaluated Bod’s ECS BioAbsorb Softgel Capsule against other delivery formats currently available, namely Epidyolex (the only FDA-approved CBD drug currently) and CBD Oil across safety, tolerability and pharmacokinetic (PK) profile.

The results matter as this new delivery format is being utilised in Bod’s clinical trial for a Schedule 3 (i.e. available at your local pharmacy, no prescription required) CBD product to treat insomnia. The study supports the potential for Bod’s unique ECS BioAbsorb Soft Gel to be the benchmark delivery format for this over the counter CBD market, with the trial reporting:

  • Bod ECS BioAbsorb Softgel offering over 20% greater bioavailability (ie the extent a drug becomes completely available to its intended biological destination) than Epidyolex and over 400% greater than the CBD Oil solution
  • The maximum concentration of CBD after single oral administration of Bod ECS BioAbsorb Softgel was over 60% greater than Epidyolex and over 600% greater than CBD Oil solution.
  • In addition, Bod ECS BioAbsorb Softgel was twice as fast to reach maximum concentration of CBD after single oral administration of Epidyolex, and five times faster than CBD Oil solution

What’s next?

With ethics approval already granted for the clinical trial for the CBD-based insomnia treatment, we’re keen to see progress with recruitment of patients (which has already begun). Subject to the outcomes of the trial, it’s feasible that Bod could have its CBD treatment for insomnia available in pharmacies by late 2023/ 1H24.

Aside from the insomnia trial, we’re also looking forward to updates on Bod’s long Covid treatment trial as well as progress with its recent Aqua Phase technology acquisition - covered in our latest commentary BOD’s big bet – will it pay off?.

Maiden lithium drilling program completed

ASX:RAS  

Nov 21, 2022

Announcement

Investment Memo: RAS IM-2022
Objective 1 : Complete due diligence on NT lithium project
Milestone 4 : Undertake at least one drilling program


Our exploration Investment Ragusa Minerals (ASX:RAS) just announced that it has completed its maiden exploration drilling program at its lithium project in the NT.

RAS’s drilling was focussed on the same group of outcropping pegmatites that hosts Core Lithium’s (capped at $2.6BN) 18.8mt JORC resource which sits to the north of RAS’s ground.

The drilling program saw RAS drill 18 reverse circulation drillholes of which 12 drillholes intersected pegmatite.

We note that the market reacted relatively negatively to the news with RAS’s share price hitting ~10.5c per share at one point this morning.

We think this is because the market is used to seeing drillcores that confirm whether an explorer has hit spodumene (generally where there is spodumene bearing pegmatites there is lithium). But those drillcores are only available when using a diamond drill rig.

RAS opted to go for a more conventional RC drilling program so we did not get any drillcore pictures or confirmation of spodumene presence.

Instead, RAS confirmed that it sent the RC chips to the assay labs, meaning we must wait for the assay results to determine if RAS has in fact made a new lithium discovery.

RAS has not provided an expected timeframe for these results but we hope to see some results in the next 4-6 weeks.

We’ll know more once the results are in but RAS did say it is “very encouraged by the preliminary drilling observations at our priority targets, noting the scale of the pegmatite zones encountered within our project area”.

This drilling program is part of the due diligence that RAS is undertaking, where it has an exclusive right to acquire these lithium prospective tenements in the centre of a well-renowned lithium district in the NT.

Exploration work should lead RAS to an informed decision on whether to acquire the tenements during its 12 month due diligence period — the primary objective that we wanted to see RAS achieve in the current year.

Option to acquire Pilbara nickel-copper-PGE project

ASX:TG1  

Nov 21, 2022

Announcement

Investment Memo: TG1 IM-2022


This morning our junior exploration Investment Techgen Metals (ASX: TG1) entered into an agreement giving the company the option to acquire a nickel-copper-PGE project in the Pilbara, WA.

The project hosts three EM anomalies that could be interesting drill targets for TG1 should it complete the acquisition.

TG1 believes the project could be prospective for nickel-copper-PGE sulphide mineralisation, with historic drilling and rock chip sampling data confirming the right type of geology in the region.

Project's exploration history:

In 1972, four RC drillholes intersected thick sequences of logged ultramafic rock types — a common host to magmatic intrusive style nickel-copper-PGE deposits.

One of those holes returned a 111m hit with nickel grades of 0.2%.

The project then had some geochem and geophysical surveying done with rock chips confirming the right type of geology and highlighting three high priority EM anomalies that warrant drill testing.

Below are those three targets:

What is TG1 paying for the project?

For the option to acquire the project, TG1 is paying $10k upfront.

The remainder of the purchase cost only comes due if TG1 decides to actually proceed with the acquisition. The total to be paid will be $225k, split as follows:

  1. $25,000 in TG1 shares when the acquisition is completed.
  2. $50,000 in TG1 shares if the company hits a drill intercept measuring at least 5m (continuous) at 1% nickel equivalent within five years of the acquisition.
  3. $150,000 in TG1 shares if a JORC resource of at least 5mt at 1% nickel equivalent is announced within five years.
  4. 1% net smelter royalty (NSR) over the project.

We like that this deal gives TG1 exposure to an interesting set of EM targets that are yet to be drill tested, and for a relatively small capital outlay of only $10k in cash and the remaining $225k in TG1 shares (only if the deal gets completed).

Preliminary results indicate multiple potential gas bearing zone

ASX:IVZ  

Nov 18, 2022

Announcement

Investment Memo: IVZ IM-2022
Investment Thesis 3 : We like big oil & gas exploration drilling events
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) put out preliminary results from its wireline logging program at its gas exploration project in Zimbabwe.

IVZ confirmed that preliminary wireline logging had been completed and that analysis was ongoing with initial results showing multiple gas bearing zones.

IVZ hasn't yet declared a discovery. It is waiting on a wireline formation testing tool to arrive on site so that it can “conduct pressure and fluid sampling to confirm presence of moveable hydrocarbons”.

Confirming moveable hydrocarbons is the final data needed for IVZ to declare a new discovery.

IVZ also said that while waiting for the tools to arrive, the company would use this down time to continue drilling down to a depth of ~3,800m to test the potential in its deeper targets.

IVZ now expects final drilling and analysis results within the next 5-7 days.

Here is what we know from IVZ’s Mukuyu-1 well so far:

  • ✅ A 10-15m interval indicative of potential hydrocarbons (oil and/or gas) across the first three of its targets.
  • ✅ Seal identified with several hundred-metre thickness above the primary targets. This was a key risk going into drilling. This hopefully means there’s a geological seal that’s strong enough to trap oil and/or gas in the primary targets IVZ is drilling now.
  • ✅ Elevated gas shows up to 135x above background gas levels through the first of two primary targets.
  • ✅ Elevated (100%) fluorescence, indicating condensate or light oil.
  • ✅ Elevated Logging While Drilling resistivity.
  • ✅ A working conventional hydrocarbon system.

What is IVZ doing next?

  • 🔄 The well is currently being drilled down to a total depth of ~3,800m.
  • 🔄 Wireline logging programme after drilling is completed. This will be when IVZ will try to identify any moveable hydrocarbons and ultimately put out a “net pay” number.

IVZ expects to complete both of these tasks within the next week.

Gas flared from pilot production well

ASX:EXR  

Nov 18, 2022

Announcement

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


Our energy Investment Elixir Energy (ASX:EXR) today announced that pumping has commenced at the Nomgon pilot project with gas breakthroughs that is already being flared — a first for Mongolia.

We consider this a big achievement as getting the maiden pilot production program up and running this year was a key objective that we wanted to see EXR achieve, as we explained in our 2022 EXR Investment Memo.

Having completed the Nomgon-8 and Nomgon-9 pilot wells last month, the pumping related down-hole and surface facilities were installed before commencing the pumping of fluid from these two wells earlier this week.

The early breakthrough of gas supports EXR’s interpretation that the coal is close to 100% gas saturated.

EXR’s aim for the project in the months to come is to establish a commercial flow rate, and when the gas rates stabilises over the coming days, the measurement of the rate can begin.

Meanwhile, appraisal drilling with the Big Slope-3 and Big Slope-4 wells is ongoing. To date, the wells have intersected 21.4 and 38 metres of gassy coal, respectively, and are expected to reach their target depths within the next week or so.

Gas contents measured from these wells have followed up successfully on the high figures measured in Big Slope-2 with Big Slope-3, the highest so far within the Nomgon IX PSC (a peak of 9.2m3/t raw gas basis).

EXR today also released a new presentation for its 2022 AGM and its AGM Chairman's address.

Not much doing from initial Hellcat assays

ASX:PFE  

Nov 18, 2022

Announcement

Investment Memo: PFE IM-2022
Objective 1 : Drilling of the newly acquired Lead/Silver project.
Risk 2 : Exploration Risk


Our multi-commodity exploration investment Pantera Minerals (ASX:PFE) has reported assay results from the maiden drilling campaign at its Hellcat polymetallic project (PFE owns 80%) in WA’s Edmund Basin.

A total of 4 diamond holes were drilled for 1832.7 metres, testing high priority gravity targets and modelled electromagnetic conductors at the Teano and Yarvi prospects.

Unfortunately, drilling did not intercept economic mineralisation this time.

We held high hopes for Hellcat, given its proximity and several geological similarities to Galena’s Abra base metals mine.

Whilst disappointing, this is what exploration is all about - high risk, high reward. No matter how promising rock chip sampling, trenching, aerial and ground surveys, and/or nearology… etc the most likely outcome of maiden drilling campaigns tend to be “no discovery found”.

It is not all bad news however for Hellcat. The results will help construct a better geological model of what is happening beneath the surface. Low level lead anomalism returned in three of the four holes, and there is evidence to suggest hydrothermal activity carrying metalliferous fluids taking place at all target areas. Furthermore, reconnaissance rock sampling confirms lead, zinc and silver anomalism across the wider Hellcat project.

Armed with insights drawn from the maiden drilling program and recent sampling results, we suspect that PFE will return to Hellcat with new drill targets next year.

What’s next?

We await assay results from maiden drilling at PFE’s Weelarana manganese project, hopefully prior to Christmas.

Also, PFE’s next drilling campaign will likely be at its Frederick base metals project in WA, following a Exploration Incentive Scheme grant of up to $100k.

Palladium and nickel grades increasing - 20+ more assays pending

ASX:GAL  

Nov 16, 2022

Announcement

Investment Memo: GAL IM-2022
Objective 4 : Execute drilling campaigns at Norseman (Callisto) PGE Discovery
Milestone 2 : Diamond drilling to test for extensions at depth.
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.)


This morning our long term Investment Galileo Mining (ASX: GAL) put out the assay result from one of its deeper holes to the southeast of its PGE discovery.

The assay results came from drillhole NRCD280 and returned some of the highest grades to date from GAL’s discovery - up to 4.01g/t PGEs.

Importantly, today’s assay result shows that GAL’s discovery continues to extend towards the east, with the width of the discovery now measuring ~500m. Grades are increasing in this direction.

GAL’s diamond drilling program to the east is ongoing whilst it awaits the results from ~20 assays that are pending.

Assay results are expected between late November to January.

All of the assays pending are testing for mineralisation at depth where we have been seeing most of the high grade assay results come from and where GAL has hit massive sulphides in.

We updated our 3D model with today’s result and have shown the upcoming assay results in the image below (coloured in purple).

What’s next for GAL?

First batch of assays from WA copper project

ASX:TG1  

Nov 16, 2022

Announcement

Investment Memo: TG1 IM-2022
Objective 3 : Drill test the Ashburton Basin copper projects:
Milestone 5 : Drilling results


This morning our junior exploration Investment TechGen Metals (ASX: TG1) put out the first batch of assay results from the first of its two WA copper drill programs.

Today's results came from the Station Creek project, where TG1 completed 12 drillholes across three main targets.

Of the 12 holes drilled, four returned traces of copper with the peak intercept measuring 7m at 1.23% copper from a depth of only ~20m.

Here TG1 was drilling a cluster of IP chargeability anomalies that sit right underneath high grade rock chips (measuring up to 54.8% copper).

TG1 was effectively drilling to see if these rock chips found at surface and the IP anomaly correlated with a copper discovery underground.

Whilst the drilling results weren't enough to declare a discovery, TG1 mentioned that during the drilling program, the company did some more target generation works, identifying three high priority areas that warrant following up.

The three targets sit on the northwestern border of TG1's ground right next to drill targets that neighbour Norwest Minerals (capped at $16M) interpreted as trending towards TG1's ground.

While we don't expect TG1 to go out and immediately drill these targets, we will be watching to see if anything comes from the downhole EM surveys the company is planning.

We also note that neighbour Norwest Minerals are currently running downhole EM surveys for their targets in this region and we will be tracking these results to see how it impacts TG1.

What's next for TG1?

1) Assay results from its other WA copper project.

TG1 still has assays pending from its Mt Boggola project in WA where it is drilling for copper.

We also note that the company is doing some geophysical surveying at Mt Boggola looking for more drill targets that it can include in future drilling programs.

2) Soil sampling results from NSW gold discovery

TG1 is following up its recent discovery with a detailed soil sampling program, aiming to identify high priority follow-up drilling targets.

Assay results from soil sampling are expected later this month.

VN8 to benefit as Voiteck delivers performance milestone

ASX:VN8  

Nov 15, 2022

Announcement

Investment Memo: VN8 IM-2022
Objective 2 : Grow users through integrated acquisitions and cross-selling opportunities


Yesterday, our small cap telco investment Vonex (ASX: VN8) announced its additional payment for its Voiteck acquisition on the back of financial improvement milestones being delivered.

Overall, we are pleased that VN8 was able to bring Voitek into the fold so quickly - and we expect that this will contribute to VN8’s improving financial performance in the coming quarters.

Voiteck is a South Australian telco that VN8 acquired earlier this year for a total initial consideration of $2.75M, enabling it to fast-track expansion into that state.

With integration completed, synergies between the entities have helped Voiteck reduce supply costs (through upgrading ISDN to VoIP technology) and hosting costs for its tech stack.

This has triggered the performance milestone, with VN8 to issue 1,208,743 new shares and pay $525,206 to the Voiteck vendors.

While this is dilutive and reduces VN8’s cash balance, we like that this is due to the acquisition delivering substantially to VN8s bottom and top line. As such, we see this as a good example of VN8’s ‘growth by acquisition’ strategy playing out.

What’s next?

Next up, we’re keen to see integration progress of VN8’s latest acquisition, OnTheNet, as well as customer growth and earnings figures for the half year.

Successful in-house lithium extraction tech developed

ASX:VUL  

Nov 14, 2022

Announcement

Investment Memo: VUL IM-2022
Investment Thesis 3 : Valuable technical skill set
Risk 1 : Development risk


Our lithium development Investment and 2020 Pick of the Year Vulcan Energy Resources (ASX: VUL) has successfully developed, tested and demonstrated its own in-house lithium extraction sorbent, VULSORB™ to sustainably extract lithium from the Upper Rhine Valley Brine Field and its Zero Carbon Lithium™ Project.

Test-work using VULSORB™ on live brine, from VUL’s commercially operating geothermal plant, demonstrated higher performance and lower water consumption compared with commercially available sorbents that VUL has tested.

It allows for very pure lithium chloride to be selectively extracted from the brine that can then be converted to lithium hydroxide for use in lithium-ion batteries.

VULSORB™ is a variation of the type of lithium extraction sorbents developed thirty years ago and used globally to commercially extract lithium from brine for decades.

But VUL’s process is much faster and more efficient than the legacy industry method — it has a lower carbon footprint and sorbent extraction takes just hours, rather than up to 18 months.

This development now positions VUL as a lithium extraction technology provider, as well as a lithium chemicals and renewable energy developer.

We see potential for VUL to licence out the tech to other lithium brine companies — a potential additional revenue stream for VUL. This lithium extraction approach can be used in most lithium-rich brines globally, if they have sufficient salinity and there is enough heat to drive the process.

VUL continues to test other sorbents for lithium extraction from commercial suppliers, but at this stage VULSORB™ is its first choice in its planned Phase 1 commercial development, targeting first commercial lithium production for Q4 2025.

The production of this in-house lithium extraction sorbent — along with recent test results of the highest grade, lowest impurity lithium hydroxide to date from VUL’s pilot plant — are positive signs as we look ahead to the completion of VUL’s DFS and then first commercial Zero Carbon Lithium™ production that is anticipated in late 2025.

Completion of the DFS was the main objective that we want to see VUL achieve. While previously expected in the second half of 2022, VUL says the DFS will be completed in the first quarter of 2023.

Rare earths in rock chips?

ASX:TG1  

Nov 14, 2022

Announcement

Investment Memo: TG1 IM-2022


This morning our junior exploration Investment Techgen Metals (ASX: TG1) put out some news detailing the rare earths prospectivity of its copper project in WA.

Today's announcement highlighted that rock chips taken from the project showed rare earths prospectivity with grades as high as 0.1885% total rare earth's oxide (TREO).

TG1 also detailed the thorium anomalies found when re-analysing the geophysical data available over the project - the significance being that thorium anomalies can be an indicator of rare earth's mineralisation.

While TG1's exploration here has mostly focused on copper, news like this isn't uncommon for junior explorers targeting a specific commodity but come across prospectivity for additional materials.

We saw similar activity from junior explorers after lithium became hot in 2017.

One that stands out is the Kidman Resources spodumene hosted lithium discovery, made underneath a multi million ounce gold resource.

Kidman was bought by Wesfarmers in a deal worth ~$776M.

So while today's news doesn't relate directly to our Investment thesis for TG1 we will be watching to see how things develop over the coming months with respect to the rare earths targets at TG1's project.

What's next for TG1?

1) Assay results from WA copper projects

Having recently finished drilling its two WA copper projects (Mt Boggola and Station Creek), assays are expected from both projects sometime this month.

We also note that the company is doing some geophysical surveying at Mt Boggola looking for more drill targets that it would include in future drilling programs.

2) Soil sampling results from NSW gold discovery

TG1 is following up its recent discovery with a detailed soil sampling program, aiming to identify high priority follow up drilling targets.

Assay results from soil sampling are expected later this month.

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