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Building A Growing West Australian Gold Producer
Sandstone | Gum Creek Consolidation - August 2024
Important Notices
This presentation (Presentation) regarding the merger of Brightstar Resources Limited (Brightstar or the Company) and Alto Metals Limited (Alto) has been prepared by Brightstar and has been authorised for release by the Board of Directors of Brightstar and Alto on the basis it is to be read in conjunction with these important notices and disclaimers and the Key Risks in Appendix 9.
Disclaimer
- This Presentation has been prepared by Brightstar based on information from its own and third party sources and is not a disclosure document. No party other than Brightstar or Alto has authorised or caused the issue, lodgement, submission, despatch or provision of this Presentation, or takes any responsibility for, or makes or purports to make any statements, representations or undertakings in this Presentation. Except for any liability that cannot be excluded by law, Brightstar and Alto and its respective related bodies corporate, directors, employees, advisers and agents disclaim and accept no responsibility or liability for any expenses, losses, damages or costs incurred by any party relating in any way to this Presentation including, reliance without limitation, the information contained in or provided in connection with it, any errors or omissions from it however caused, lack of accuracy, completeness, currency or reliability or you or any other person placing any on this Presentation, its accuracy, completeness, currency or reliability.
- This Presentation is not a prospectus, disclosure document or other offering document under Australian law or under any other law. It is provided for information purposes and is not an invitation nor offer of shares or recommendation for subscription, purchase or sale in any jurisdiction. This Presentation does not purport to contain all the information that a prospective investor may require in connection with any potential investment in Brightstar. Each recipient must make its own independent assessment of Brightstar before making an investment decision.
Not Investment Advice
- Each recipient of the Presentation should make its own enquiries and investigations regarding all information in this Presentation including but not limited to the assumptions, uncertainties and contingencies which may affect future operations of Brightstar and the impact that different future outcomes might have. Information in this Presentation is not intended to be relied upon as advice to investors or potential investors and has been prepared without taking account of any person’s individual investment objectives, financial situation or particular needs. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own investment objectives, financial situation and needs and seek legal, accounting and taxation advice appropriate to their jurisdiction. Brightstar are not licensed to provide financial product advice in respect of their securities.
Forward-Looking Statements
- This announcement contains certain "forward-looking statements". The words "expect", "anticipate", "estimate", "intend", "believe", "guidance", "should", "could", "may", "will", "predict", "plan" and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future financial position or performance are also forward-looking statements. Forward-looking statements, opinions and estimates provided in this announcement are based on assumptions and contingencies which are subject to change without notice and involve known and unknown risks and certainties and other factors which are beyond the control of Brightstar and its respective directors and management. Forward-looking statements are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. Actual results, performance or achievements may differ materially from those expressed or implied in such statements and any projections and assumption on which these statements are based. These statements may assume the success of Brightstar business strategies. The success of any of those strategies will be realised in the period for which the forward-looking statement may have been prepared or otherwise. Readers are cautioned not to place undue reliance on forward-looking statements, particularly in light of the current economic climate and the significant volatility, and except as required by law or regulation, none of Brightstar or their respective representatives or advisers assumes any obligation to update these forward-looking statements. No representation or warranty, express or implied, is made as to the accuracy, likelihood of achievement or reasonableness of any forecasts, prospects, or statements in relation to future matters contained in this announcement. The forward-looking statements are based on information available to Brightstar as at the date of this announcement. Except as required by law or regulation (including the ASX Listing Rules), none of Brightstar and their respective representatives or advisers undertakes any obligation to provide any additional or updated information whether as a result of a change in expectations or assumptions, new information, future events, or results or otherwise. Indications of, and guidance or outlook on future financial position or performance are also forward-looking statements.
JORC (2012) Compliance Statement
Brightstar Mineral Resources
- This presentation contains references to Brightstar’s JORC (2012) Mineral Resources, extracted from the ASX announcements titled “Aspacia deposit records maiden Mineral Resource at the Menzies Gold Project” dated 17 April 2024, “Maiden Link Zone Mineral Resource Estimate” dated 15 November 2023, “Cork Tree Mineral Resource Upgrade Delivers 1Moz Group MRE” dated 23 June 2023 and “Auralia Review” dated 10 September 2020, and ASX announcements for Kingwest Resources Limited titled, "High grade drilling results and high grade resource estimation from the Menzies Goldfield” dated 13 December 2022, "Menzies JORC gold resources surpass 500,000 ounces" dated 26 April 2022 and “Brightstar makes Recommended Takeover Offer for Linden Gold Alliance Limited” dated 25 March 2024.
- Brightstar confirms that it is not aware of any new information or data that materially affects the information included in the previous market announcements and that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed.
Alto Mineral Resources
- This Presentation contains references to JORC (2012) Mineral Resources, as reported by Alto in its announcement released on 3 April 2023 titled “Significant increase in shallow gold resources at Sandstone Gold Project”.
- Alto confirms that the material assumptions and technical parameters disclosed in the announcement continue to apply and have not materially changed. Alto confirms that it is not aware of any new information or data that materially affects the information included in the previous market announcements and that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed.
Gateway Mineral Resources
- This Presentation contains references to JORC (2012) Mineral Resources, as reported by Alto and Brightstar in their joint announcement released on 1 August 2024 titled “Brightstar to drive consolidation of Sandstone”.
- Brightstar confirms that the material assumptions and technical parameters disclosed in the announcement continue to apply and have not materially changed. Brightstar confirms that it is not aware of any new information or data that materially affects the information included in the previous market announcements and that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed.
Scoping Study Cautionary Statement
Menzies and Laverton Gold Project Mine Restart Study
- The production targets and forecast financial information disclosed in this Presentation in relation to the Menzies and Laverton Gold Project Mine Restart Study are extracted from the Company’s ASX announcement titled “Menzies and Laverton Gold Project Mine Restart Study” dated 6 September 2023. Brightstar confirms that all material assumptions underpinning the production targets and forecast financial information derived from the production targets in the previous announcement continue to apply and have not materially changed.
Jasper Hills March 2023 Scoping Study
- The production targets and forecast financial information disclosed in this Presentation in relation to the Jasper Hills March 2023 Scoping Study are extracted from the Company’s ASX announcement titled “Jasper Hills March 2023 Scoping Study” dated 25 March 2024. Brightstar confirms that all material assumptions underpinning the production targets and forecast financial informatio n derived from the production targets in the previous announcement continue to apply and have not materially changed.
- Brightstar considers that the material assumptions underpinning the production targets at the Menzies and Laverton Gold Project Restart Study and Jasper Hills Scoping Study are not adversely affected by the proposal to develop both projects sequentially. Brightstar intends to investigate the joint development under an integrated feasibility study.
Currency
- Unless otherwise stated, all dollar values in this Presentation are reported in Australian dollars.
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This article includes content from Brightstar Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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Brightstar Resources
Overview
The price of gold stays strong. In April 2024, the yellow metal’s price passed US$2,400 per ounce for the first time. The reason is multifaceted. The world teeters on the brink of a severe recession while some markets attribute the increase to safe haven rush. Amidst ballooning interest rates, bank failures and falling bond yields, demand for gold continues to rise. At this precise moment, gold is simultaneously an excellent portfolio diversifier and a compelling hedge against ongoing inflation — particularly if one invests in the right company.
Brightstar Resources (ASX:BTR) aims to be that company. An emerging mining and development company, Brightstar occupies a strategic land position of roughly 300 square kilometers in the Laverton Tectonic Belt and 80 square kilometers of the Menzies Shear Zone.The company also owns an existing processing facility that can potentially provide tremendous shareholder value in a low-capital cost restart scenario.
That plant, once fully refurbished and operational, could prove a key differentiator for the company, enabling fast gold production at a low capital cost. This is especially noteworthy given that many other gold companies trading on the ASX are largely focused on greenfield exploration and development. Even once those companies discover a promising resource, mining and processing facilities would still need to be built, undertakings which can incur significant upfront capital costs and take several years.
Brightstar's Laverton gold assets are all centered on a 100 percent-owned 300-square-kilometer tenure in the Laverton Tectonic Zone and all within 70 kilometers of the Laverton Processing Plant. Additionally, all resources within this zone are open along strike and at depth. Only minor drilling programs have been conducted in recent years, paving the way for significant exploration upside with the potential for further regional and greenfields discoveries.
Brightstar also owns 100 percent of the Menzies Gold Project, a contiguous land package of granted mining leases over a strike length of roughly 20 kilometers along the Menzies Shear Zone and adjacent to the Goldfields Highway.
In 2023 and 2024, the company announced a mineral resource upgrade to the Cork Tree Well deposit (Laverton gold project) and also delivered two maiden mineral resource estimates at the Link Zone and Aspacia deposits (Menzies gold project). This has grown the total group MRE by approximately 150 koz gold through organic exploration.
The company has also acquired a relevant interest in 96.75 percent shares and 96.81 percent optionshares and 96.81 percent option of Linden Gold Alliance, a gold producer, developer and explorer with existing mineral resources of 350 koz @ 2.1 g/t gold near Brightstar in the Laverton district. Brightstar’s MRE has reached 1.1 Moz gold across the Menzies and Laverton projects, with an additional 0.35 Moz gold in resources added after the successful acquisition of Linden Gold Alliance. Brightstar has commenced the compulsory acquisition process for the remaining Linden shares and options in respect of which it has not received acceptances under the agreemnt.Company Highlights
- Brightstar Resources is an ASX-listed mining and development company with more than one million ounces of gold resources and an on-site processing infrastructure.
- Brightstar's mineral assets are situated across roughly 300 square kilometers of 100-percent-owned land in the Laverton Tectonic Zone and ~80 square kilometers in the high-grade Menzies Shear Zone.
- The Laverton Gold project has a mineral resource of 9.7 Mt @ 1.6g/t gold for 511 koz gold and the Menzies gold project has 13.8Mt @ 1.3g/t gold for 595 koz gold. This is a total combined existing mineral resource of 23 Mt @ 1.5 g/t gold for 1.1 Moz of gold
- In 2023, the company completed a scoping study into the development of its Menzies and Laverton gold projects and the refurbishment and restart of its processing plant in Laverton.
- The scoping study produced robust operating outcomes and compelling financial outputs, including:
- 322 koz of gold recovered over eight years (40 koz per annum)
- Net present value of AU$103 million (using a gold price of AU$2,900/oz)
- Internal rate of return of 79 percent
- Pre-production capital requirements of AU$22 million
- All-in sustaining costs of A$2,041/oz
- Once refurbished, this infrastructure will allow Brightstar to fill a growing investment void for near-term gold developers in Western Australia, producing large quantities of gold at low capital cost.
- In 2023 and 2024, Brightstar completed a small-scale mining joint venture with BML Ventures which involved a 50/50 profit-sharing agreement to exploit the Selkirk deposit at Menzies. In April 2024, Brightstar announced that this joint venture delivered a net profit to Brightstar of $6.5 million.
- In June 2024, the company successfully acquired all of the issued ordinary shares and options in Linden Gold Alliance, a gold producer, developer and explorer with existing mineral resources of 350 koz @ 2.1 g/t gold near Brightstar in the Laverton district.
- Linden is currently a gold producer, mining 15-20 koz pa from its high-grade underground Second Fortune Mine south of Laverton.
- Brightstar’s total MRE across the Menzies and Laverton gold projects increased to 1.45 Moz gold after acquiring Linden. All of the mineral resources are located on granted mining licenses.
- As part of the merger with Linden Gold, Brightstar released a scoping study into Linden’s development-ready Jasper Hills gold project, which delivered key metrics including:
- 140 koz mined over 3.75 years (35 koz pa)
- Net present value of AU$99 million
- Internal rate of return of 736 percent
- Pre-production capital requirements of $12 million
- All-in sustaining costs of AU$1,972/oz
- Jasper Hills is located just 50 km SE of Brightstar’s processing plant in the Laverton gold project
- Brightstar plans to continue generating shareholder value through a combination of development and strategic acquisitions along with some exploration.
Key Projects
Brightstar Processing Facility
Situated close to Brightstar's existing mineral assets at Laverton, the Brightstar Processing Plant provides the company with a considerable operational head start over its peers.
Highlights:
- Extensive Infrastructure: Current facilities at the plant include two ball mills, a power station and gravity and elution circuits. Other infrastructure includes:
- A tailings storage dam
- An on-site process water pond
- An operational 60-person accommodation camp
- An airstrip at the nearby Cork Tree Well Project
- Vehicles and equipment include a forklift, bobcat, two loaders, multiple light vehicles and a 30-tonne crane.
- A Leg Up Over Competitors: The presence of pre-existing processing infrastructure represents significant time savings compared to greenfields development. Brightstar had an independent valuation completed which valued the processing plant at AU$60 million in replacement value.
- Low Upfront Capital Cost: As part of the scoping study released in September 2023, GR Engineering estimated a capital cost requirement to refurbish and expand the milling capacity would cost just AU$18.5 million.
- Close to Existing Assets: Brightstar's major development projects — Cork Tree Well, Jasper Hills, Beta and Alpha — are all close to the plant.
Gold doré bars (BTR005 – BTR016) poured on 9 March 2024
Cork Tree Well
Cork Tree Well is a formerly operating mine, producing 45 koz of gold over its lifespan. Located roughly 35 kilometers north of Laverton on Bandya Station Road, the project’s JORC 2012-compliant mineral resource of 6.4 Mt at 1.4 g/t for 303 koz of gold.
Highlights:
- Promising Drilling Results: Two 6,000-meter drill programs were completed in late 2022, and in the first quarter of 2023 delivered an uplift in tonnages and ounces at a discovery cost of AU$30 per ounce. In 2023 the JORC 2012 Mineral Resource Estimate increased by 20 percent to 303 koz, representing a 65-percent increase to the indicated ounces to 157 koz @ 1.6 g/t gold.
- Upcoming Feasibility Studies: The drilling program will underpin several feasibility studies that Brightstar intends to conduct later this year. At present, Brightstar has defined a resource envelope over a strike length of approximately 1 kilometer and down to 200 meters.
- Area Geology: The Cork Tree deposit is situated along the western limb of the Erlistoun synclical structure, a sequence which includes mafic volcanic lavas, tuffs and tuffaceous sediments alongside minor interflow graphitic shales and banded iron formation. The mine itself consists of chlorite schist-altered high-magnesium basalt footwalls overlain by graphitic shales containing banded iron and chert beds. Gold mineralization is contained within sediments intruded by concordant porphyry sills spanning the length of the mineralized zone.
- High-grade Assays from the 2024 Drill Program: First round of assay results from 20 diamond drill holes at Cork Tree Well were extremely positive, with intercepts returned including 34.4 metres @ 7.94 g/t gold from 43.5 metres (CTWMET004) and 27.6 metres @ 17.8 g/t gold from 51 metres (CTWMET003).
Second Fortune Gold Mine
Second Fortune is an operating underground gold mine owned and run by Linden Gold, which is the subject of an off-market takeover by Brightstar announced in March 2024. Second Fortune has produced +14,000oz gold in FY24 year to date and is run under an ‘owner operator’ model.
Second Fortune has a high-grade MRE of 165kt @ 10.9 g/t gold for 58 koz. Limited modern and systematic exploration has occurred across the ~20km of strike length of prospective geology at Second Fortune. This presents a superb opportunity to leverage existing team, camp & related infrastructure to rapidly assess targets and conduct efficient drilling programs to further grow the MRE and extend the mine life at Second Fortune.
Menzies Gold Project
Situated 130 kilometers north of the globally significant Kalgoorlie gold deposit, Menzies represents one of Western Australia's leading historic gold fields. The project, fully owned and operated by Kingwest before its merger with Brightstar, consists of a contiguous land package of a strike length above 20 kilometers. All deposits are now 100 percent owned by Brightstar and lie within granted mining leases.
Brightstar intends to leverage existing processing infrastructure in the district to monetise the high-grade open pit ounces produced by this mine.
Highlights:
- Significant Historical Production: Menzies has hosted multiple historically mined high-grade gold deposits which together produced a total of over 800,000 ounces at 19 g/t gold. This includes 643,000 oz @ 22.5 g/t gold from underground.
- Profit Sharing: Brightstar and BLM Ventures had a 50/50 profit-sharing joint venture agreement to exploit the Selkirk deposit at Menzies. In March 2024, Brighstar announced the successful completion of all the ore processing from the Selkirk JV, with a total of 430.7 kg of gold doré poured which netted Brightstar $6.5 million as part of its profit share.
- Area Geology: The Menzies Gold Project is hosted along the Menzies Shear Zone in the western margin of the Menzies greenstone belt. It displays a geologic setting similar to the Sand Queen Gold Mine at Comet Vale.
LAVERTON GOLD PROJECT – OTHER RESOURCES
Beta
Located immediately adjacent to the Brightstar Plant, the Beta Project includes a 60-person camp. It contains a combined JORC 2012-compliant mineral resource of 1,882 kt at 1.7 g/t for 102 koz of gold. The deposit occurs along the Eastern Margin of the Laverton Tectonic Zone, notable for hosting multiple major gold occurrences including Granny Smith, Keringal, Red October and Sunrise Dam.
Alpha
Hosting a combined JORC 2012-compliant mineral resource of 1,452 gold at 2.3 g/t for 106 koz, the Alpha Project. Future exploration programs and feasibility studies will seek to potentially capitalize on Alpha's close proximity to Beta.
Management Team – Post Completion of Linden Merger
Alex Rovira - Managing Director
Alex Rovira is a qualified geologist and an experienced investment banker having focused on the metals and mining sector since 2013. Rovira has experience in ASX equity capital markets activities, including capital raisings, IPOs and merger and acquisitions.
Richard Crookes – Non-executive Chairman
Richard Crookes has over 35 years’ experience in the resources and investments industries. He is a geologist by training having previously worked as the chief geologist and mining manager of Ernest Henry Mining in Australia.
Crookes is managing partner of Lionhead Resources, a critical minerals investment fund and formerly an investment director at EMR Capital. Prior to that he was an executive director in Macquarie Bank’s Metals Energy Capital (MEC) division where he managed all aspects of the bank’s principal investments in mining and metals companies.
Andrew Rich - Executive Director
Andrew Rich is a degree qualified mining engineer from the WA School of Mines and has obtained a WA First Class Mine Managers Certificate. Rich has a strong background in underground gold mining with experience predominantly in the development of underground mines at Ramelius Resources (ASX:RMS) and Westgold Resources (ASX:WGX).
Ashley Fraser - Non-executive Director
Ashley Fraser is an accomplished mining professional with over 30 years experience across gold and bulk commodities. Fraser was a founder of Orionstone (which merged with Emeco in a $660-million consolidation) and is a founder/owner of Blue Cap Mining and Blue Cap Equities.
Jonathan Downes - Non-executive Director
Jonathan Downes has over 30 years’ experience in the minerals industry and has worked in various geological and corporate capacities. Experienced with gold and base metals, he has been intimately involved with the exploration process through to production. Downes is currently the managing director of Kaiser Reef, a high grade gold producer, and non-executive director of Cazaly Resources.
Dean Vallve – Chief Operating Officer
Dean Vallve holds technical qualifications in geology & mining engineering from the WA School of Mines, an MBA, and a WA First Class Mine Managers Certificate. Vallve was previously in senior mining and study roles at ASX listed mid-cap resources companies Hot Chili (ASX:HCH) and Calidus Resources (ASX:CAI).
Brightstar to Drive Consolidation of Sandstone District
Brightstar and Alto enter into scheme implementation deed. Brightstar acquires Montague East Gold Project from gateway. Brightstar placement to Raise $24 Million.
Brightstar Resources Ltd (ASX: BTR) (Brightstar) and Alto Metals Limited (ASX: AME) (Alto) are pleased to announce that they have entered into a binding Scheme Implementation Deed under which Alto agrees to propose a scheme of arrangement between Alto and its shareholders under Part 5.1 of the Corporations Act 2001 (Cth) (Scheme).
Highlights:
- Brightstar Resources Limited (Brightstar) and Alto Metals Limited (Alto) have entered into a Scheme Implementation Deed (SID) under which Alto agrees to propose a Scheme of Arrangement (Scheme) for the acquisition of 100% of Alto
- Concurrently, Brightstar has entered into a Tenement Sale Agreement with Gateway Mining Limited (Gateway) under which Brightstar has agreed to acquire 100% of the Montague East Gold Project (with Gateway to retain all non-precious metal rights) for consideration of $14.0m comprising cash, scrip and contingent payments (Montague Acquisition)
- Under the Scheme, Alto shareholders will receive 4 Brightstar shares for each Alto share held on the Record Date (Scheme Consideration)
- The Scheme Consideration has an implied value of approximately 6 cents1 per Alto share, representing a significant premium of:
- ~82% to the closing Alto share price of 3.3 cents per share on 30 July 2024; and
- ~81% to Alto’s 30-day VWAP of 3.3 cents per share up to and including 30 July 2024
- The Scheme Consideration implies a fully diluted equity value for Alto of $44.4m
- The Alto Board unanimously recommends the Scheme, and the Alto Directors intend to vote all Alto shares in which they have a relevant interest in favour of the Scheme, in each case in the absence of a superior proposal and subject to the Independent Expert concluding (and continuing to conclude) that the Scheme is in the best interests of Alto shareholders2
- Alto’s largest shareholder, Windsong Valley Pty Ltd representing ~15% of the Alto shares on issue, has confirmed to Alto that it intends to vote such of those shares that it holds at the time of the Scheme vote in favour of the Scheme, in the absence of a superior proposal and subject to the independent expert concluding (and continuing to conclude) that the Scheme is in the best interests of Alto shareholders
- Brightstar to raise up to $24m (before costs) at 1.5 cents per share via a two-tranche placement (Placement), which represents a nil discount to the last traded price
- The Scheme is conditional on completion of the Placement, however neither the Placement nor the Montague Acquisition are conditional on completion of the Scheme
- Following completion of the Placement, the Scheme, the Montague Acquisition and the issue of Topdrill Shares and Genesis Shares (refer below), the pro forma Brightstar Group (Combined Group) will have:
- Pro-forma 3.0Moz Au of JORC (2012) Mineral Resources3
- Pro-forma cash position of $31m with potential debt finance facilities totalling $36m
- Strategic ~1,100km2 landholding in the Sandstone region provides a third production hub (Sandstone Hub) to complement existing Brightstar production, development and exploration asset portfolio
- Existing shareholders of Brightstar (including Placement participants), Alto and Gateway holding approximately 66%, 29% and 5% of the Combined Group4
- Brightstar has separately executed a Non-Binding Indicative Offer (NBIO) with a South Korean strategic investor for a multi-tranche investment of $40m, including an upfront $4m equity investment (unconditional and included in the Placement) and a $36m gold offtake financing arrangement
OVERVIEW
Under the terms of the Scheme, Brightstar will acquire 100% of the shares in Alto and each Alto shareholder will receive 4 new Brightstar shares for each Alto share held on the record date for the Scheme5.
In addition to the Scheme, Brightstar, via a newly incorporated wholly owned SPV ‘Montague Gold Project Pty Ltd’ (MGP), has entered into a Tenement Sale Agreement with Gateway Mining Limited (ASX:GML) (Gateway), and its wholly owned subsidiary Gateway Projects Pty Ltd (GPWA), under which MGP proposes to acquire Gateway and GPWA’s interests held in certain mining tenure in respect of Gateway’s Montague
East Gold Project, with MGP obtaining 100% of the gold mineral rights and Gateway retaining all other mineral rights (Montague Acquisition).
The Montague Acquisition is not conditional on the Scheme completing and, subject to the satisfaction of the relevant conditions precedent (see description further below), will proceed independently of the Scheme.
On implementation of the Scheme and completion of the Montague Acquisition, Brightstar will become a significant junior West Australian gold explorer, developer and producer with a material exploration and development platform. The Scheme and Montague Acquisition will consolidate highly prospective exploration ground in the Sandstone region which will complement Brightstar’s existing production, development and exploration asset portfolio, for the benefit of both Brightstar, Alto and Gateway shareholders.
Click here for the full ASX Release
This article includes content from Brightstar Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Quarterly Activity Report 30 June 2024
EMU NL (“EMU” or “the Company”) is pleased to report on its activities for the quarter ending 30 June 2024. Throughout the quarter, EMU has continued its primary focus on the Fiery Creek Prospect within the Georgetown Project, in North Queensland.
Highlights
- Successful geochemistry program completed at the Fiery Creek Prospect with high-grade copper assays up to 23.5% Cu from rock-chip samples
- The mineralised discovery zone, tested by pXRF over soil, termite mound and rock chip sample mediums, covers an area approximately 720m long x 480m wide
- pXRF geochemistry programme confirmed extensive broad copper mineralised zone with grades up to 2,484ppm Cu from pXRF soil samples and highest termite mound sample recorded was 1,675ppm Cu
- Results indicate the mineralisation is significant and pervasive between outcropping high- grade copper veining and stockwork veining within the discovery zone and is interpreted to be a subset of a much broader and significant system
- Additional sampling has defined a mineralised, copper anomalous, shear zone extending at least 2.5 km to the SE
- Interpretation of aeromagnetic data suggests that this zone of structural geologic disruption with potential mineralisation and hydrothermal alteration extends approximately 6km to the SSW within the Yataga Igneous Complex
- Drone LiDAR and photogrammetry works now complete with data processing underway
- Geophysics survey (including pole dipole, IP, resistivity and MT) on target to commence August-September 2024
- Airborne aeromagnetic survey over Yataga Igneous Complex scheduled between July and October
- ~$1.45 million total capital raising initiative completed comprising of:
- $250k placement to sophisticated and professional investors;
- 3:5 fully underwritten, non-renounceable rights Issue raising ~$1.2 million.
Georgetown Project
Located within the Georgetown mining district, the Georgetown Project is a richly endowed but under-explored area of Far North Queensland with a history of significant mining activity and mineral discoveries. EMU has the right to earn up to an 80% interest in 3 exploration permits for minerals (EPM’s), covering 850km2 in the Georgetown mining district, Queensland, under a Heads of Agreement and Joint Venture Agreement with Rugby Resources Ltd (TSXV: RUG). The district has a substantial mineral endowment with more than 1,000 mines, prospects and identified mineral occurrences.1
Fiery Creek Copper Prospect
The Fiery Creek Copper Prospect (FCCP) within the Georgetown Project in North Queensland has been identified as a potential massive scale copper porphyry system.
The Fiery Creek Copper prospect is hosted within a major NNW striking shear zone developed in the core of the Yataga Igneous Complex. The complex is a medium grained, equigranular, ovoid, granodiorite body, which at ~29km2 is the largest such igneous body known in the Georgetown Inlier. The prospect’s mineralised, hydrothermal alteration zone has been identified to extend over an area of approximately 6km in strike and up to 2km wide. The structure is characterised by multiple interleaved shear zones with quartz hosted copper vein swarms, stockwork and disseminated copper at surface with petrographical studies indicating several impulse phases of hydrothermal fluidisation. The alteration mineralogy, mineralisation geochemistry and the areal extent of Fiery Creek copper and silver rich vein system suggests the likelihood of a previously unknown sub adjacent porphyry system.
During the quarter the Company mobilised its highly experienced exploration team to site to undertake extended geochemistry programs to further investigate and build upon this potentially significant copper porphyry discovery.
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This article includes content from EMU NL, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Quarterly Activities Report for Period Ended 30 June 2024 and Appendix 5B
Tartana Minerals Limited (ASX: TAT) (the Company), is pleased to announce that copper sulphate pentahydrate (copper sulphate) production continues to increase with sales totalling 97.5 tonnes during the quarter, representing $411K in revenues. This combined with the $201K received this Quarter from earlier sales of zinc slag, brings the total to $612K for the Quarter.
Highlights:
- Sales revenue increasing: cash receipts of $612K including $411K on 97.5 tonnes of copper sulphate pentahydrate during the quarter and receipt of $201K from earlier sales of zinc slag.
- Process optimisation is underway to reach a target production of at least 5 tonnes per day.
- Metallurgical hole D15 assays and testing are underway.
- Tartana Copper project (45,000 t Cu at 0.45% Cu using a 0.2% Cu, further details below)1 studies are underway to establish copper flotation recoveries, concentrate grades and Tomra ore sorting upgrades on a 650 kg bulk sample.
- New EPM 29067 application (Bottle Bird) adjacent to the Tartana Copper project lodged.
- Landholder Standard Conduct and Compensation Agreement (SCCA) executed on Beefwood EPM 26399, Maid EPM 27735 and mining lease applications for Mountain Maid gold and Cardross copper.
- Ms Shuyi (Kiara) Wang appointed as a director on 17 July 2024.
- Significant financings completed in the quarter: repayment of a A$1 million convertible note, raising $1.5 million in a rights issue and shortfall placement at $0.05, and borrowing $0.3 million from another party.
- Name change completed from R3D Resources Limited to Tartana Minerals Limited.
Assaying and metallurgical testwork have commenced on PQ and HQ core from D15. D15 was drilled to 300 m below TRC098 which was drilled in 2022, reporting 72.1 m at 0.63% Cu from 15.6 m2. D15 is located in the central portion of the Tartana Copper project and provides samples of typical mineralisation applicable across the orebody.
The testwork will provide estimated key metallurgical parameters necessary for commercial development of primary copper resources within Tartana’s open pit.
Tartana Minerals lodged a new EPM (29067) application covering an area adjacent to Tartana mining leases which also covers prospective ground near the Company’s Nightflower Silver project.
Elsewhere, the Standard Conduct and Compensation Agreement (SCCA) covering Beefwood EPM 26399 has been finalised as the Company progresses early work on this site. This follows finalisation of SCCAs over Maid EPM 27735, including the Mountain Maid Gold project3 and the Cardross Copper project. Tartana is in progress of finalising a Native Title Agreement with the Wakaman Kung Kung Aboriginal Corporation, following this drilling will commence.
Click here for the full ASX Release
This article includes content from Tartana Minerals Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Intercepts up to 41g/t Au from In-Fill Drilling Program Nueva Sabana, Cuba
Antilles Gold Limited (“Antilles Gold” or the “Company”) (ASX: AAU, OTCQB: ANTMF) is pleased to advise results from the first 7 of 25 shallow diamond drill holes in a 2,000m in-fill program on the Nueva Sabana oxide deposit in central Cuba, which was completed in July 2024.
The aim of the program was to increase the Indicated Resources in the Initial Mineral Resource Estimate advised to ASX on 6 March 2024.
HIGHLIGHTS
Gold Domain – Nueva Sabana
Copper Domain – Nueva Sabana
Sampling Techniques and Data are set out in the JORC Code 2012 Edition Template attached.
NUEVA SABANA GOLD-COPPER MINE
- The in-fill results continue the excellent grades for both gold and copper in the oxide deposit that were incorporated in the Scoping Study for the first stage of the proposed Nueva Sabana gold-copper mine reported to ASX on 7 May 2024.
- Results from the remaining 18 holes are expected by the end of this month.
- An updated Mineral Resource Estimate (“MRE”) for the proposed mine is expected to be completed within two weeks of receiving these results, after which the pit design and mine schedule will be updated, followed by a Pre-Feasibility Study in September 2024.
- The Nueva Sabana oxide deposit is metallurgically simple, and the mine is being planned as a copper project which will benefit from the high-grade gold cap during initial operations.
- Metallurgical test work by Blue Coast Research Laboratories in Canada has indicated a gold recovery of 85% from a simple rougher flotation circuit, and a concentrate of 70.2 g/t Au.
- A copper recovery of 84.5% yielded concentrate grades of 27% Cu from a rougher and cleaner circuit, which has formed the basis of the process design criteria for the Nueva Sabana concentrator.
- Planning and permitting for the proposed mine is well advanced.
- Total development costs are estimated to be ~US$30 million including ~US$5 million of pre- development and concession acquisition costs, and ~US$25 million for mine construction based on quotations for site works, industrial buildings, and a turnkey offer for the design and construction of the concentrator and associated power station.
- The project requires minimal pre-stripping and will not involve the purchase of a mining fleet which is to be hired from the Cuban subsidiary of an international supplier.
- Finance for the mine construction is being negotiated in the form of an advance on concentrate purchases by an international commodities trader.
- The Nueva Sabana project, which is being developed by the 50% owned joint venture company, Minera La Victoria SA, is expected to be development-ready in October 2024.
Click here for the full ASX Release
This article includes content from Antilles Gold, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Jeffrey Christian: Expect "Extremely Volatile" Gold Price as Politics Drive Market
Jeffrey Christian, managing partner at CPM Group, shared his latest thoughts on precious metals, speaking about the outlook for gold and silver, as well as the path forward for platinum and palladium.
When it comes to gold, he emphasized to the Investing News Network that the political landscape has been very important for the precious metal in 2024, and will continue to be key as the year progresses.
"We think that we will see higher highs still over the course of the rest of this year beyond August and also into 2025," he said about gold. "We think that the prices are just going to be that much stronger than we had thought they would be."
Watch the interview above for more of Christian's thoughts on gold, as well as silver, platinum and palladium.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Gold and Silver Prices Gain as Fed Holds Rates Steady
The US Federal Reserve announced on Wednesday (July 31) that it will continue to hold its benchmark interest rate steady at 5.25 to 5.5 percent following the two day Federal Open Market Committee meeting.
The central bank has now maintained its policy for one year since its last rate increase in July 2023.
The meeting comes just days after the US Bureau of Labor statistics released the latest personal consumption expenditures (PCE) price index data, which indicates that inflation continued to cool in June.
The data shows a year-on-year increase of 2.5 percent in June, down from the 2.6 percent reported in May.
PCE is a favored measure of the Fed as it works to bring inflation back down to its target rate of 2 percent.
In its decision, the committee said it is seeking greater confidence that inflation is moving sustainably toward its goal, and will continue to assess “incoming data as it is available, the evolving outlook and the balance of risks.”
It reiterated that the economic outlook remains uncertain, and said it will continue to monitor economic indicators and labor market conditions. Analysts widely expected the central bank to leave rates unchanged at this meeting, with economists predicting that the first cut will come during its next meeting in September.
“We expect rate cuts in the second half of this year to support business-to-business demand, with manufacturing and industrial activity benefiting in 2025 and 2026," said ITR Economics economist Lauren Saidel-Baker.
Saidel-Baker also told the Investing News Network with only two jobs reports before the September meeting, it would take a significant surprise to dissuade the Fed from making cuts.
Markets rallied ahead of the Fed's release, with the Nasdaq-100 (INDEXNASDAQ:NDX) and S&P 500 (INDEXSP:.INX) leading with 3.25 percent and 1.7 percent gains after a strong earnings report from AMD (NASDAQ:AMD) pushed chipmakers and the tech sector higher. The Dow Jones Industrial Average (INDEXDJX:.DJI) was up just under 1 percent.
Prices for gold and silver were also up in morning trading, fueled by increasing tensions in the Middle East following Israeli assassinations of Hezbollah and Hamas leadership in Lebanon and Iran, respectively; both precious metals spiked further once the Fed meeting was complete.
As of 3:40 p.m. EDT on Wednesday, gold had climbed 1.28 percent from the market's open to move above US$2,450 per ounce, and silver had climbed 1.26 percent in the same period to hit US$29 per ounce.
Don't forget to follow us @INN_Resource for real-timeupdates!
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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