The Conversation (0)
Description
The growing demand for high-purity manganese sulphate monohydrate (HPMSM) used in lithium manganese iron phosphate (LMFP) batteries positions Firebird Metals (ASX:FRB) to become significant player in the manganese market for LMFP batteries and EV manufacturers, according to an analyst report published by Terra Studio.
“Compared to its peers, Firebird Metals and its Hunan high-purity manganese sulphate monohydrate project accumulate a number of enviable characteristics: lowest capital expenditure; lowest capital intensity; life of project not limited by a mineral resource; lowest operating cost; highest profitability index (NPV/capex) with the lowest HPMSM price assumption; best expertise in lithium-ion batteries and in particular LFP and
LMFP batteries; and largest market at its doorstep,” stated the report prepared by JF Bertincourt, director of Terra Studio.
Firebird Metals is focused on developing its Oakover high-purity manganese project in Western Australia and integrating a downstream processing facility in China to produce battery-grade HPMSM for the LMFP battery market.
Hunan Chemical Engineering Design Institute (PFS engineering group) and Hunan Firebird Battery Technology staff
“Firebird Metals is extremely well positioned to take advantage of the booming market for LMFP batteries,” Bertincourt wrote, citing the significant market outlook for LMFP batteries, which is expected to replace 50 percent of lithium-ion phosphate batteries (LFP) by 2030.
Highlights of the report:
- Firebird Metals is extremely well positioned to take advantage of the booming market for LMFP batteries, given its strategy to develop a processing facility in China, which will be fed by concentrate from its Oakover project
- If successful, Firebird is poised to become a significant player in the manganese market for LMFP batteries and EVs, and also become a supplier for the silica-manganese alloy market.
- LMFP is expected to dominate the cathode market for EV batteries, due to the manganese’s ability to make LFP batteries safer, cheaper and have more range.
This content is intended only for persons who reside or access the website in jurisdictions with securities and other applicable laws which permit the distribution and consumption of this content and whose local law recognizes the scope and effect of this Disclaimer, its limitation of liability, and the legal effect of its exclusive jurisdiction and governing law provisions [link to Governing Law section of the Disclaimer page].
Any investment information contained on this website, including third party research reports, are provided strictly for informational purposes, are general in nature and not tailored for the specific needs of any person, and are not a solicitation or recommendation to purchase or sell a security or intended to provide investment advice. Readers are cautioned to seek the advice of a registered investment advisor regarding the appropriateness of investing in any securities or investment strategies mentioned on this website.
FRB:AU
Firebird Metals Investor Kit
- Corporate info
- Insights
- Growth strategies
- Upcoming projects
GET YOUR FREE INVESTOR KIT
Firebird Metals
Overview
Firebird Metals (ASX:FRB) is an Australian mining company that’s well-positioned to develop a new manganese mining operation in Western Australia with a strategy to become a global battery cathode producer supporting a rapidly expanding electric vehicle market.
Batteries currently represent the largest non-alloy market for manganese, accounting for roughly 3 percent of global annual manganese consumption. The metal has a long history of being used as a cathode material in batteries, both in its natural form and in the form of electrolytic manganese dioxide. That includes modern lithium-ion batteries, the supply and manufacturing chain for which could potentially grow by over 30 percent annually from now through 2030.
Manganese-rich batteries are increasingly being held up as an alternative to standard lithium-ion batteries, leading to an expected exponential demand for the mineral. Tesla alone has already committed to producing manganese-based batteries for two thirds of its supply, owing to the metal's relative abundance and lower cost compared to nickel and cobalt.
Lithium-iron-phosphate (LFP) represents one of the most prominent phosphate battery configurations. In recent years, however, the business case for using manganese as a cathode material for lithium-ion batteries, known as lithium manganese iron phosphate (LMFP), has become stronger. LMFP not only improves the battery’s energy density, but also increases capacity by up to 20 percent. LMFP batteries also perform better in low-temperature environments.
As LFP rapidly nears its theoretical energy density capacity, the rise of LMFP batteries as a replacement is all but inevitable as the world continues its slow march towards electrification and sustainable energy. Consequently, this means that demand for battery-grade manganese is set to explode in the coming years. And Firebird Metals is more than ready to step in and provide some much-needed supply.
Firebird maintains ownership over a massive manganese resource in Western Australia's Pilbara region in the form of its flagship Oakover project. Characterised by near-surface mineralisation, Oakover houses an estimated 176.65 million tons (Mt) of manganese across several different targets. Because of Oakover's favourable geology, Firebird can potentially leverage Oakover to supply not just the battery market but also multiple other industries, such as steel, all through a low-cost, simple mining operation.
The end result? Significant returns for investors — a projection only further emphasised by the impressive results returned by a recent concentrate scoping study on the project. Firebird maintains several other projects in Australia as well, including the Oakover-like Hill 616 and the exploration-focused Wadanya.
Firebird's long-term strategy reaches far beyond Australia's borders, however. From mining to downstream processing, the company's vision is to become a global cathode producer. For that, Firebird is looking to China, which to date accounts for roughly 90 percent of global manganese sulphate demand.
In early September 2023, the company announced its plans to establish a processing plant in China, noting to investors that an in-house scoping study was already well underway. According to Firebird's managing director Peter Allen, the construction of this plant represents the next phase of major growth for Firebird. As with the rest of Firebird's operations, this new plant will be constructed with the company's ESG methodology front of mind, ensuring transparency and accountability in addition to human welfare, support for local communities and environmental sustainability.
This plan, should it proceed apace, has the potential to make an enormous impact on global manganese supply — all while positioning Firebird as a cost-competitive player in the manganese sulphate market and a promising investment opportunity.
Company Highlights
- An Australian junior exploration company, Firebird Resources is well-positioned to take advantage of the growing demand for manganese as the rapidly expanding electric vehicle market and global electrification continue to ramp up.
- Firebird maintains ownership of a massive manganese resource in Australia with significant growth potential.
- A recent concentrate scoping study confirmed the potential and profitability of the company's flagship project, Oakover, situated in Western Australia's Pilbara region.
- Firebird's long-term goal involves leveraging its manganese resource to position itself as a leading global producer of manganese sulphate for the battery industry.
- The company is currently embarking on a scoping study with plans to build a manganese sulphate plant in China. This will allow it to gain a foothold in the Chinese market, which currently accounts for 90 percent of global manganese sulphate demand.
- This study represents the next phase of major growth for Firebird, and is a significant part of the company's overall strategy to establish itself as a near-term producer of battery-grade high-purity manganese sulphate.
Key Projects
Oakover
Situated 85 kilometres East of Newman in Western Australia's East Pilbara Manganese Province, Firebird's flagship Oakover project is characterised by favourable near-surface and shallow-dipping mineralisation. The project's favourable geology provides Firebird with multiple processing options, with the company currently targeting production of manganese concentrate and high-purity manganese sulphate. Oakover has, over the course of its history, been subject to extensive modern and historic exploration.
The most recent exploration program, completed by Firebird, resulted in a mineral resource estimate of 176.65 Mt at 9.9 percent manganese, including 105.8Mt at 10.1 percent manganese in the indicated resource category.
Project Highlights:
- Confirmed Potential: Firebird recently achieved a major milestone at Oakover with the completion of a concentrate scoping study which confirmed the project's outstanding long-term potential as a manganese hub. Highlights of the study include:
- Potential 18-year mine life.
- 1.2 Mt per annum with low strip ratio (0.45:1) and mining costs.
- Upfront capital investment of A$124 million with low capex optionality.
- A$741.3 million NPV and IRR of 73.1 percent.
- Indicated material accounts for 99.2 percent of material processed.
- 80 percent uplift in indicated resource at Oakover to 105.8 Mt.
- Metallurgical Results: Firebird has undertaken extensive metallurgical and hydrometallurgical testwork at Oakover, with results providing the company with a high level of confidence in its growth and profit potential. Notable highlights are as follows:
- Achievable 30 to 32 percent manganese concentrate saleable product
- Achievable battery-grade manganese sulphate
- Current Plans: Firebird's concentrate scoping study assessed two production scenarios, each utilising simple processing, crush, screen, scrub and DMS beneficiation. It has chosen to pursue full production from startup with ~4 Mtpa processing and ~1.2 Mtpa of 30 to 32 percent manganese concentrate.
Hill 616
Located 35 kilometres south of the Oakover project, Hill 616 shares highly similar geological characteristics to Firebird's flagship, with shallow, gently dipping geology. Covering approximately 15.7 square kilometres within the Peak Hill Mineral Field, Hill 616 has to date undergone extensive historical drilling, with 116 holes for 4,900 metres over a 2.2-kilometre strike.
This drilling has resulted in an inferred mineral resource of 57.5 Mt at 12.2 percent manganese.
Wandanya
Wandanya is a recently established exploration-focused project situated 50 kilometres southwest of the world-class Woodie Woodie Manganese Mine. Its close proximity to Port Hedland affords it considerable direct shipping ore potential. Rock chip results indicate that Wandanya's deposits are also exceptionally high grade, returning results up to 64.9 percent and 55.2 percent manganese.
Management Team
Evan Cranston — Chairperson
Evan Cranston is an experienced mining executive with a background in corporate and mining law. He is the principal of corporate advisory and administration firm Konkera Corporate and has extensive experience in the areas of equity capital markets, corporate finance, structuring, asset acquisition, corporate governance and external stakeholder relations.
Cranston holds both a Bachelor of Commerce and Bachelor of Laws from the University of Western Australia. He is currently the non-executive chairman of African Gold (ASX:A1G) and Benz Mining (TSXV:BZ, ASX:BNZ).
Peter Allen — Managing Director
Peter Allen is a mining executive with more than 20 years of experience in marketing of manganese, lithium and a range of other commodities. He was previously the managing director of marketing for Consolidated Minerals Limited, which operates Woodie Woodie mine in WA and the Nsuta Manganese mine in Ghana.
Allen assisted manganese-focused explorer Element 25 (ASX:E25) and Gulf Manganese Corporation (ASX:GMC) with PFS and product marketing. More recently, he was the marketing manager for AVZ Minerals (ASX:AVZ), a company focussed on the Manono lithium project.
Wei Li — Executive Director & CFO
Wei Li is a chartered accountant with extensive professional experience across several key sectors which include the resource industry, international trade, capital markets, project management of IPOs and spin-outs, and financial accounting. His experience includes being employed by and acting as director and CFO of several companies, predominantly in the resource sector. Prior to these roles, he managed a private base metal exploration company in the NT of Australia and assisted in commissioning an AU$150-million electrolytic manganese dioxide plant in Hunan China.
Li is currently a non-executive director of Macro Metals.
Ashley Pattison — Non-executive Director
Ashley Pattison brings over 20 years of experience in the resources sector across corporate finance and operational roles. Qualified as chartered accountant, he has extensive experience in operations, finance, strategy and corporate finance. Pattison has been the managing director of a number of listed and private mining companies over the past 10 years and also CEO of a listed mining service company.
Pattinson is currently the executive chairman of PC Gold and a non-executive director of Industrial Minerals (ASX:IND) and Macro Metals.
Brett Grosvenor — Non-executive Director
Brett Grosvenor is an experienced mining executive with over 25 years of experience in the mining and power industries. He holds a dual tertiary qualification in engineering and a master’s in business.
Maiden Mukinbudin Quartz Processing Testwork Achieves Premium HPQ Product
Highlights
- Exceptional Processing Testwork results received from North Carolina State University’s Mineral Research Laboratory (NCSU-MRL), an industry leading independent High Purity Ǫuartz lab.
- Ǫuartz sample T1-C, a maiden sample from the Mukinbudin Project, achieved >99.991% SiO2 from a simple processing flow sheet that included attrition, flotation and magnetic separation treatment, opening opportunities for early stage offtake.
- All samples sent to NCSU-MRL, from both Pippingarra and Mukinbudin demonstrated outstanding purity levels, confirming the exciting potential of IND’s quartz deposits and their suitability for high-end applications.
- In parallel with the numerous ongoing offtake discussions and ongoing end customer testing, IND now plans to undertake further comprehensive independent testwork at leading industrial minerals consultancy ANZAPLAN in Germany to further assist in finalising product offtake.
IND is exploring for High Purity Ǫuartz (“HPǪ”) at several of its projects in Western Australia, and the testwork was completed on samples from IND’s Pippingarra Ǫuarry Project and Mukinbudin Ǫuartz/Feldspar Project.
Jeff Sweet, Managing Director of Industrial Minerals, commented:
“We are extremely encouraged by achieving +99.99% SiO2 purity through to the acid leaching stage of our process testwork. These results are incredibly promising for our HPǪ production. With calcination and hot chlorination stages yet to be tested, we anticipate even greater purity levels can be achieved. This progress underscores our confidence in achieving premium quality in our final product.
“The Mukinbudin quartz was purified to 99.991% SiO2 through magnetic separation and flotation process work alone. This simple flowsheet will allow IND to pursue early-stage offtake opportunities into a broader range of HPǪ applications.
“Given the large price differential at the premium end of the HPǪ market as illustrated in Figure 1, IND’s ultimate goal is to now test the maximum purity level achievable across the Company’s quartz projects with the aim to be a recognised long term supplier of quality HPǪ products.”
Figure 1: High Purity Ǫuartz raw ore pricing CIF China based on industry feedback2
Processing Testwork Results
North Carolina State University’s Minerals Research Laboratory is a world leader in research, development and implementation of mineral processing techniques. The main focus of NCSU- MRL’s research is the beneficiation of industrial minerals.
Ǫuartz Ore Samples
IND sent three 20kg quartz ore samples to NCSU-MRL for the purpose of assessing the potential to use as feedstock for the production of High Purity Ǫuartz. Test samples T1_A and T1-B were sourced from IND’s Pippingarra Ǫuarry Project (Figure 2) and test sample T1_C was sourced from the Mukinbudin Project (Figure 3).
Click here for the full ASX Release
This article includes content from Industrial 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.
Jeffreys Find Gold Mine Toll Milling of 150,000 Tonnes Commenced, Second 2024 Campaign
HIGHLIGHTS
- Processing of 150,000 tonnes commenced at Greenfields Mill.
- 75,600 tonnes on ROM Pad at Greenfields as of 23 July 2024.
- Second campaign expected to finish early September 2024.
- On target to process 300,000 tonnes at Greenfields Mill in 2024/2025.
- BML expects to mine well in excess of 300,000 tonnes in 2024/2025.
- First cash distributions to Auric this quarter.
MANAGEMENT COMMENT
Managing Director, Mark English, said: “We have the good fortune of pouring gold just as the price firms. It happened last year when the price went to $3,000 an ounce, this year it’s around $3,600 an ounce.
“The ever increasing gold price will result in Auric and our joint venture partner generating cash surpluses well in excess of what we had budgeted and anticipated.
“150,000 tonnes is a sizeable parcel of ore for this campaign. While it will take six weeks or so to mill, we expect it to generate well in excess of $25 million through gold sales for the joint venture.
“The mill contract is to process 300,000 tonnes in 2024. This 150,000 tonnes parcel will be the largest for Stage 2 of mining of Jeffreys Find. That leaves an additional 120,000 tonnes for milling at Greenfields towards the end of 2024.
“Jeffreys Find will be a substantial cash producer for Auric in 2024. We are on target to receive our first distribution within about a month.” said Mr English.
The Jeffreys Find Pit as of 16 July 2024
Click here for the full ASX Release
This article includes content from Auric Mining, 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.
Viani - Low Sulphidation Epithermal Gold Project License Renewed
Highlights
- MRD notified Alice Queen on Friday 19 July 2024 via email that its Viani license (SPL1513) has been renewed for a further three years with effect from Wednesday 3 July 2024.
- Viani, located on the Pacific Rim of Fire on Vanua Levu in Fiji, covers an area greater than 200km2 and is largely under explored (see Figures 1 and 2).
- The Dakuniba prospect within Viani has been previously sampled where epithermal gold mineralisation has been recorded in outcrop samples over a >3km strike length.
- Multiple epithermal veins within the Dakuniba prospect area, 5km by 1.5km surface gold-in- soil geochemical anomaly - the footprint of the epithermal mineralisation is comparable to other economically productive gold epithermal deposits globally.
- Previous drilling by Japanese International Cooperation Agency (JICA) in 1997 focused on a small, shallow part of the overall system and intersected high grade epithermal gold mineralisation.
- (Hole MJFV-5 (see Figure 3) over 6 vein zones at 50 to 100m below surface with best results, 0.6m @ 27.6 g/t Au & 900 g/t Ag and 0.4m @ 11.7 g/t Au1 and remains open in all directions.
- The JICA drilling was limited to only 600m of strike-length of the 5km long gold-in-soil anomaly (>10ppb Au) supported by epithermal geochemistry i.e., Ag and As.
- Based on discovery knowledge from epithermal systems worldwide, it is apparent the historical drilling was an inadequate test of the Viani gold system.
Alice Queen’s Managing Director, Andrew Buxton said,
We are delighted the SPL1513 license has been renewed for a further three years and look forward to continuing to work alongside the Fiji Mineral Resources Department as we commence our next phase of exploration activities. The Viani Gold Project is a tremendous prospect which has demonstrated it has the potential to become a significant epithermal system. With the license now renewed and the Company fully funded for its Fiji exploration plans, Alice Queen will continue the systematic exploration of the Viani Gold Project with the Company having commenced planning for its upcoming exploration programs.
Viani
Figure 1. Fiji Project locations.
Figure 2. Location of the Dakuniba Prospect in relation with SPL1513.
The Viani project (SPL1513) covers an area greater than 200km2 on the Caukadrove Peninsula on the Pacific Rim of Fire, Vanua Levu, Fiji. It is well serviced from Savu Savu on Vanua Levu and is highly prospective for a high-grade LSE gold system (see ASX releases 2 December 2022, “VIANI UPDATE” and 6 March 2023, “ALICE QUEEN UPGRADES VIANI EPITHERMAL PROJECT”.
Following a renewal process for Viani (SPL1513) which the Company commenced earlier this year (including as announced in the Quarterly Activities Report released to ASX on 23 April 2024), MRD notified Alice Queen on Friday 19 July 2024 that the license had been renewed with effect from Wednesday 3 July 2024 for a further three years. The renewed license includes typical terms for a license of this nature, including minimum work program and expenditure requirements.
Whilst the greater project area remains under explored, extensive sampling, trenching and (historic) limited drilling of the Dakuniba prospect area has been previously completed.
Previous drilling by JICA in 1997 returned multiple epithermal gold intersections in shallow drilling. Hole MJFV-5 (see Figure 2) intersected 6 vein zones at 50 to 100m below surface (best results include 0.6m @ 27.6ppm Au & 900ppm Ag, 0.4m @ 11.7ppm Au & 4.3ppm Ag)1. The JICA drilling was limited to only 600m of strike-length of the 5km long gold-in-soil anomaly (>10ppb Au) supported by epithermal geochemistry i.e., Ag and As.
Further details in relation to upcoming exploration plans at Viani will be announced in due course.
Click here for the full ASX Release
This article includes content from Alice Queen 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.
Firebird Metals Investor Kit
- Corporate info
- Insights
- Growth strategies
- Upcoming projects