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Woomera Mining Limited (ASX: WML) (“Woomera”, “the Company”) is pleased to announce that its two-pronged diamond core programme for the recently acquired Bronze Fox Project in Mongolia has commenced. Woomera has mobilized two drill rigs drilling parallel to allow completion of a 2000- 3000m programme in more favourable weather conditions. It is expected the drilling will be completed in 6 to 8 weeks, with results expected in January 2025.
Woomera is earning an 80% interest in the Bronze Fox Project from Kincora Copper Limited (ASX: KCC) by expenditure of US$4m and has to the right to acquire a 100% interest.
Figure 1: Litho drilling diamond core rigs at Bronze Fox
Figure 2: Start of drill hole F109 (planned 900m)
BRONZE FOX PROJECT
The Bronze Fox Project covers 175km2 and is located in the Southern Gobi porphyry belt of southern Mongolia, approximately 450km south of the capital Ulaanbaatar. It represents an opportunity to secure an 80% interest (with the ability to move to 100% at Woomera’s election) in an underexplored world-class porphyry copper project with genuine Tier-1 potential. Drilling by Kincora totalling approximately 46,625 metres of Reverse Circulation and Diamond Core drilling has defined three shallow, large porphyry complexes, providing genuine new discovery potential, resource delineation and early-stage exploration plays.
The Bronze Fox Project is located proximal to several world class mineral deposits including Oyu Tolgoi, Kharmagtai, Tsagaan Suvarga and Tavan Tolgoi (see Figure 3).
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This article includes content from African 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.
WML:AU
What is a Preliminary Economic Assessment?
What is a preliminary economic assessment?
A preliminary economic assessment, sometimes abbreviated as PEA, is defined as a study that includes an economic analysis of the potential viability of a mining project’s mineral resources.
Also called scoping studies, PEAs helps mining companies understand risks and uncertainties associated with a project.
Before a mineral resource project becomes a mine, several technical studies must be completed on a deposit to ensure its economic viability. Completing a PEA in mining is one of the first steps in the process, with prefeasibility and feasibility studies following.
All of these studies analyze and assess the same geological, engineering and economic factors; however, they include significantly different levels of detail and precision.
For example, unlike a prefeasibility study or feasibility study, PEAs may contain metallurgical testing results based on an inferred mineral resource. That means the mineral resource estimate in a PEA may be based on limited information and sampling of the mineralization compared to the studies that come after.
PEAs must either be presented in the form of a technical report, or supported by a technical report. In some cases, the technical report must be independent.
What’s in a preliminary economic assessment?
Generally, PEAs will include base-case information on the capital costs associated with bringing a project into production, an estimate of how the mine will operate once it is built, how much metal and money it will produce and what operating costs the project will incur.
A preliminary economic assessment should also include a mine plan. More specifically, a PEA tends to have information on pre-production capital costs, life-of-mine sustaining capital, mine life and cash flow, as well as details on processing and production methods and rates.
PEAs also include information on project economics at various metal prices. For example, the PEA for the Séguéla gold project in Côte d’Ivoire, then owned by Roxgold and now held by Fortuna Silver Mines (TSX:FVI,NYSE:FSM), outlines how the project will perform before and after tax in two different gold price scenarios:
What comes after a preliminary economic assessment?
After producing a positive PEA, a company can move on to prefeasibility and feasibility studies.
As explained, these studies look at the same geological, engineering and economic factors, but at a higher level of detail and precision. They can help determine factors such as operating costs and potential ounces or metric tons to be mined for commodities such as precious metals and base metals.
Prefeasibility and feasibility studies can also offer insight into the average grade of the resources that will eventually be mined. Additionally, they account for impactful future events, such as community issues, geographic obstacles and permit challenges. They should include multiple options for tackling different issues.
Once a prefeasibility study has been reviewed and approved, companies then move on to complete a feasibility study, which includes fewer assumptions and more hard facts.
Feasibility studies contain similar content, but are much more accurate than prefeasibility studies in their assumptions and require more resources to conduct. These studies are intended to evaluate if a mineral reserve can be mined effectively and if it will be profitable. Detailed mining feasibility studies are also used as the basis for a project’s capital estimates, operating costs and overall economic viability.
To learn more about how issuers determine potential viability for their assets, click here for details on prefeasibility and feasibility studies and here for more on the full lifecycle of mining.
This is an updated version of an article first published by the Investing News Network in 2019.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Red Cloud Announces Fall Mining Showcase 2024 Agenda
Red Cloud is excited to announce its annual Fall Mining Showcase, scheduled for October 16-17, 2024, at the Sheraton Centre Toronto Hotel. This flagship event will feature over 90 resource companies, including CEOs, high-net-worth and institutional investors, highlighted by an engaging keynote agenda.
The mining industry is experiencing renewed optimism, particularly with producers posting record profits on the back of rising commodity prices. This momentum along with growing support of clean energy initiatives lead by nuclear power should bode well for sentiment at this year's showcase.
Founded by capital markets professionals with extensive experience in the junior mining sector, Red Cloud offers a unique platform that helps companies navigate growth opportunities through expert guidance and innovative financial solutions.
"Our event provides an exceptional opportunity for investors to engage with industry experts, explore a diverse range of commodities, and gain valuable insights into the macro themes shaping the industry," said Bruce Tatters, CEO of Red Cloud Securities. "We are committed to fostering these connections while highlighting junior mining companies."
Keynote presentations from industry leaders listed below:
Wednesday, October 16, 2024
- Joe Mazumdar, Editor, Analyst & Publisher, Exploration Insights
- Pierre Lassonde, Chairman Emeritus & Co-Founder, Franco-Nevada Corp.
- Rob McEwen, Executive Chairman & CEO, McEwen Mining
Thursday, October 17, 2024
- Ron Bernbaum, Founder and CEO, PearTree Securities Canada
- Kendra Johnston, P.Geo, MBA, Managing Director, PearTree Securities Canada
- Abigail Hunter, Executive Director, SAFE's Ambassador Alfred Hoffman Jr. Center for Critical Minerals Strategy
- Uranium Investor Session - Presented by TMX Group
Visit our website to register to attend, request 1x1 meetings and learn more about the conference: https://redcloudsecurities.com/fallminingshowcase2024/
Red Cloud would like to thank our partner, PearTree Securities, and all additional sponsors.
For additional information and inquiries, please contact our events team: marketing@redcloudsecurities.com
About Red Cloud Securities Inc.
Red Cloud Securities Inc. is a CIRO-regulated investment dealer focused on providing a full range of brokerage services to all investor types focused in the junior resource sector. Our services include Investment Banking, Research, Institutional and Retail Trading, Institutional Sales, Retail Investment Advisory services, and Corporate Access.
About Red Cloud Financial Services Inc.
Red Cloud Financial Services Inc. is a globally focused capital markets advisory firm that provides a full range of executive strategy and execution in the digital media, production, and distribution. Our breadth of services combines our significant knowledge of the junior mining industry with a unique product offering. The company was founded by capital markets professionals with extensive experience in the junior mining industry.
For additional information, visit:
www.redcloudfs.com
https://x.com/RedCloudFS
www.linkedin.com/company/red-cloud-financial-services-inc
https://www.youtube.com/@RedCloudTV
www.instagram.com/redcloudfs
www.redcloudsecurities.com
https://x.com/RedCloudSec
https://www.linkedin.com/company/red-cloud-securities/
Assays Confirm High-Grade Manganese Discovery at Wandanya
HIGHLIGHTS
- Significant high-grade manganese assays received for the W2 prospect1, Wandanya located 80 km south of the Woodie Woodie Manganese Mine including:
- 5m @ 33.2% Mn from 4m including 2m @ 48.7% Mn (WDRC032)
- 5m @ 33.2% Mn from 1m including 2m @ 44.1% Mn (WDRC031)
- 5m @ 32.4% Mn from 4m including 2m @ 3G.6% Mn (WDRC027
- 6m @ 27.7% Mn from 3m including 2m @ 42.G% Mn (WDRC013)
- The stratabound mineralisation shows remarkable thickness and grade consistency over 240m of drilled strike and remains open to the east and north where the Company has mapped 1.75km of intermittent high grade outcropping manganese
- W2 is interpreted as stratabound, fault related hydrothermal manganese enrichment representing a significant new exploration model on the eastern margin of the Oakover Basin.
- Metallurgical testwork planned to produce a high-grade Mn concentrate as a feedstock for alloying or high purity manganese sulphate (HPMSM)
Black Canyon’s Managing Director Brendan Cummins said:
“The laboratory-based assay results have confirmed the significant high-grade intercepts for the W2 prospect. I am impressed by the consistency of the grades and thickness of the manganese horizon we have discovered and the higher-grade intervals over 40% Mn. What is really appealing about this target from an exploration and resource delineation perspective is the benefit of a consistent mineralised horizon that is also associated with hydrothermal grades. I am excited by the upside of this new style of mineralisation as we plan our follow-up exploration programs to assess 1.75km of strike to the north and the potential of the manganese horizon to extend to the east.”
Figure 1. W2 Prospect, RC drill bags from WDRC031 in the foreground
W2 Prospect, Wandanya (BCA 100%)
The W2 prospect was drilled on an approximate 40 x 40m grid testing a 240 long x 200m wide target. This drill program comprised 35 holes for 642m of drilling. Drill collar information is presented in Appendix 2.
Expedited Assay Results
Initially, six RC holes were sampled for expedited assays, generating 38 one metre interval samples that were gathered along the eastern boundary of the stratabound mineralisation. Representative holes were sampled from every second line along the drilled strike of 240m. On each drill line, the last two eastern holes were sampled from depths between 4m and 9m, which included stratabound mineralisation and portions of the lower grade footwall and hangingwall.
The results are presented in Table 1, which show consistent zones of mineralisation with the bottom 2m for each intersection typically returning high grade mineralisation potentially suitable for direct shipping (DSO).
Click here for the full ASX Release
This article includes content from Black Canyon, 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.
Gallium Mineralisation Discovered in Rock Chip Samples from the May Queen South Bauxite Project, Queensland
Highlights
- Significant levels of the semiconductor elements gallium (Ga) and germanium (Ge) identified within the May Queen South Bauxite resource.
- Significant elevated gallium results returned averaging 67.59 g/t Ga over 12 random samples with an assay high of 145.5 g/t Ga.
- The May Queen South Bauxite Project (EL 16260 and EPM 16261) has a JORC (2012) Inferred Mineral Resource Estimate of 54.9Mt at 37.5% total Al2O3 and 5.2% TiO2 and 7.9% Rx SiO2.
- The project is located <55km from existing rail infrastructure with connections to the Port of Bundaberg.
Market summary
Gallium prices have surged in recent years, primarily due to increased demand in the electronics and semiconductor industries (Graph 1). Uses of Ga include the manufacture of compound semiconductor wafers that are used in integrated circuits and optoelectronic devices including laser diodes, light-emitting diodes (LEDs), photodetectors, and solar cells. Gallium's unique properties, such as its low melting point and ability to form useful compounds, makes it a critical element with applications spanning various industries, particularly in advanced technology and electronics.
The global gallium market is heavily dominated by China, with other countries playing much smaller roles. Currently China produces approximately 98% of the world's supply of raw gallium1.
Recent market disruptions including the entry of price inelastic demand 2 and Chinese export controls in August 2023 has seen a doubling of prices since 2021 when gallium was priced at $422.70 per kg, the current price represents a 115.12% increase3
Graph 1. Gallium price worldwide from January 2018 to January 2024 (Source: www.statista.com)
May Queen South Bauxite project
The May Queen South Bauxite project is located in central Queensland, within a short trucking distance of a rail system leading north to the Port of Bundaberg. It is also located within close proximity of the main Queensland Rail network heading south towards the Port of Brisbane.
Figure 1. Location of EPM 16260 and EPM 16261 shown together with theCompany’s adjacent May Queen gold tenements (EPM19419 and EPM27746)
The Project has a JORC 2012 Inferred Mineral Resource estimate of 54.9Mt at 37.5% total Al2O3 and 5.2% TiO2 and 7.9% Rx SiO24 (refer to announcement dated 30 May 2023).
Click here for the full ASX Release
This article includes content from Australasian Metals 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.