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Impact Minerals December 2021 Quarterly Report
Impact Minerals (ASX:IPT) has released its December 2021 quarterly report.
1. ARKUN Ni-Cu-PGM PROJECT, WA (IPT100%)
- Numerous high priority targets for Rare Earth Elements (REE) and rubidium identified in soil geochemistry data at the 1,900 sq km Arkun Project about 150 km east of Perth.
- The soil anomalies occur over significant areas of many hundreds of metres along individual reconnaissance soil geochemistry traverses.
- The REE comprise both heavy and light rare earth elements including the valuable elements neodymium, praseodymium, dysprosium, terbium, ytterbium, cerium and lanthanum.
- No previous REE or rubidium exploration in the region.
- Arkun increasingly recognised as a highly prospective part of the emerging mineral province of SW Western Australia with the additional recent identification of significant targets for nickel-copper-PGM mineralisation and lithium-caesium-tantalum (LCT) pegmatites,
- Land access negotiations to commence as soon as practicable.
2. EXPANSION OF WA PROJECT PORTFOLIO
- Impact to earn an 80% interest in four joint venture projects: Jumbo, Narryer, Dalgaranga and Hopetoun, covering almost 1,000 square kilometres and prospective for nickel-copper-PGM, lithium and other metals.
3. HOPETOUN PROJECT
- Thick alteration zone with abundant pyrite sulphide over four metres at end-of-hole intersected in RC Drilling of a copper-gold target.
- Extremely difficult drilling conditions precluded the continuation of RC drilling. A diamond drill rig is being sourced for follow up work in 2022.
4. BROKEN HILL PROJECT
- Joint venture with IGO who can spend $18 million over 8 years to earn a 75% interest in EL7390 and EL8234 in two stages: $6 million to earn a 51% interest and a further $12 million to earn a further 24% interest.
- Minimum expenditure of $500,000 before withdrawal.
5. CORPORATE
- Dr Frank Bierlein appointed as non-executive Director.
- $1.5 million cash as at 31st December 2021
Click here for the full ASX Release
This article includes content from Impact Minerals, 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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Impact Minerals Limited
Investor Insight
With a mining lease application underway and a scoping study that shows excellent economics, Impact Minerals’ game-changing, advanced Lake Hope high-purity alumina project makes for a compelling investment case.
Overview
Impact Minerals (ASX:IPT) is an exploration and development mining company focused on discovering and developing new resource projects within Australia. Lake Hope, a transformational acquisition by the company and its current flagship asset, is a high-purity alumina (HPA) project in Impact’s home territory of Western Australia, a tier-one jurisdiction.
This advanced-stage project allows the company to fast-track the asset toward development, firmly establishing the company on the road to production and increasing shareholder value.
HPA is a high-value product with various uses in several industries that are key to the transition to a low-carbon world. It is mainly used in LED lighting, micro-LED screens, and ceramic-coated separators in lithium-ion batteries. Both these markets are forecast to grow dramatically over the next decade, and a looming supply shortage is predicted for 2026.
HPA is also necessary for producing synthetic sapphire and scratch-resistant glass. With these ever-widening applications for HPA, demand for this resource is expected to grow from US$3.18 billion to US$12.21 billion by 2030 with a compounded annual growth rate of about 20 percent.
Lake Hope is the company’s current focus as it moves towards production, and where a very shallow, high-grade resource of HPA precursor material has been identified in the top two meters of a dry salt lake. The deposit has unique physical and chemical properties that will allow for inexpensive digging and mining, with transportation to a processing facility off-site in an established industrial area. This will accelerate the approvals processes required to get into production.
With a mining lease application pending, Impact aims to bring Lake Hope, which contains almost 1 million tons of potential HPA, into production when the forecast average price for 4N HPA (99.99 percent Al2O3) and related products is about US$20,000 per ton. The ‘4N’ designation indicates the purity grade, making it suitable for high-tech end uses.
Outstanding economics from the latest scoping study released by the company shows Lake Hope’s potential to be the lowest-cost producer of HPA globally by up to 50 percent.
Lake Hope has a maiden mineral resource estimate (MRE) of 3.5 million tons at 25.1 percent alumina (Al2O3) for a contained 880,000 tons of alumina. The company also received heritage clearances for the entire Lake Hope deposit further de-risking the project and providing another critical component in the company’s application for a mining lease.
Impact completed a bulk sampling and test pits program at the Lake Hope project in December 2023, and later reached a key milestone by producing HPA greater than 99.99 percent (4N) purity from the metallurgical processing of lake clays acquired from Lake Hope.
In February 2024, a new proprietary metallurgical process for producing HPA from the lake clays was identified. Impact produced 99.99 percent (4N) Al2O3 from a low-temperature leach (LTL) process. The LTL process may lower the capital and operating costs to produce HPA compared to the sulphate process which underpinned the recent scoping study. The LTL process will be included in the ongoing pre-feasibility study in parallel with the sulphate process at marginal extra cost to determine the best processing route to HPA. The PFS is due to be completed in late 2024.
A comparison of the LTL process and the sulphate process
The company is well funded to finance the pre-feasibility study at the Lake Hope High Purity Alumina project and exploration activities at the Arkun battery minerals project.
Impact Minerals has been awarded a $2.87 million grant for the commercialisation of its innovative process to produce High Purity Alumina (HPA) from the Lake Hope deposit. The grant is under the Federal Government’s Cooperative Research Centres Projects (CRC-P) program which fosters short-term, industry-led research collaborations. The grant is part of an estimated $6.4 million research and development project to be completed within three years and designed to provide Impact with the relevant information required to complete a definitive feasibility. A key component of the grant funding will be to construct a pilot plant, which is a key goal for 2025, and this will provide consistent material for off-take and qualification trials.
Impact Minerals was also one of the inaugural cohort of seven companies selected to be part of the prestigious BHP Xplor program. BHP Xplor, an accelerator program introduced by BHP in August 2022, is designed to help provide participants with the opportunity to accelerate their growth and the potential to establish a long-term partnership with BHP and its global network of partners.
The BHP Xplor funding was used to identify new target areas for copper and other energy metals around the Broken Hill area in New South Wales, eastern Australia, where Impact has been quietly adding to its ground position for several years.
Additionally, the company is exploring its large Arkun battery metals project, also in Western Australia which covers nearly 2,900 square kilometres. Three new exploration licence applications were submitted recently immediately north of the Arkun project along trend from the recently discovered REE soil geochemistry anomalies at Hyperion, Swordfish and Horseshoe, and the Caligula copper anomaly. These anomalies require drill testing which will occur in 2024 and is an exciting development in the emerging mineral province of southwest WA.
A strong management team with over 50 years of combined industry experience leads the company. With a mining and exploration geology degree, Dr. Mike Jones, managing director, launched a long career consulting and leading mining organizations. Peter Unsworth, the non-executive chairman, has more than 35 years of experience in multiple financial sectors, such as securities industries and wealth management. Paul Ingram, a non-executive director, has led several mining companies since 2003. Impact Minerals has the experience and expertise to lead the company to success.
Company Highlights
- Impact Minerals is an exploration and development mining company focused on rapidly moving its flagship Lake Hope high-purity alumina (HPA) project toward production.
- The Lake Hope project has a high-grade maiden mineral resource estimate (MRE) of 3.5 million tonnes at 25.1 percent alumina (Al2O3), for a contained 880,000 tonnes of alumina that can be converted to HPA.
- HPA is used throughout multiple industries, and the overall HPA market is projected to grow by a CAGR of 18.4 percent by 2030.
- A pre-feasibility study is currently in progress and scheduled to be completed by Q4 2024. A mining lease application for the Lake Hope High Purity Alumina (HPA) was recently lodged with the aim of being granted by 2026.
- The company’s project portfolio also includes assets with high-grade mineral deposits of a range of base, critical and precious metals.
- Impact Mineral’s 2,000-square-mile Arkun nickel-copper-PGE project in Western Australia has produced encouraging assays that motivate further exploration. Maiden drill programmes are planned for early 2025.
- The company is also exploring its Broken Hill copper project in New South Wales following a major grant under the auspices of the BHP Xplor program in 2023..
- A strong management team leads the company with experience in geology, mining and corporate finance.
Key Projects
Lake Hope HPA Project
Impact Minerals’ Lake Hope HPA project is in Western Australia, a tier-one mining jurisdiction. HPA is a crucial component in many new and emerging technologies, creating ongoing demand for high-grade sources. The Lake Hope project is the company’s flagship as it moves toward production.
Project Highlights:
- Maiden Mineral Resource Estimate: A maiden mineral resource of 3.5 million tonnes at 25.1 percent alumina (Al2O3) for a contained 880,000 tonnes of alumina has been defined at the Lake Hope HPA Project. About 88 percent of the resource, or 775,000 tonnes of alumina, is in the higher confidence indicated resource category.
- Amenable to Open-pit Mining: The Lake Hope project is a unique HPA asset amenable to shallow, open-pit mining. The deposit is soft and shallow, allowing for cheap digging and minimal infrastructure requirements. This type of deposit also lowers the environmental footprint of the operation.
- Fast-tracked to Production: A mining lease application is currently underway. Once granted, the company will begin working towards a pre-feasibility study and mini pilot plant. Impact Minerals plans to reach a complete pilot plant by 2026.
- Impressive Results of the 2023 Scoping Study: Outstanding economics show Lake Hope to potentially be the lowest-cost producer of High Purity Alumina (HPA) globally by up to 50 percent. Key outcomes from the scoping study include:
- Annual production of 10,000 tpa of 4N HPA with an initial 25-year mine life
- Annual EBITDA of A$174 million.
- 2 years construction period with 5,000 tonnes of production during the first year, 8,000 tonnes in the second year and 10,000 tonnes of production thereafter.
- US$934 million post-tax NPV8 at an IRR of 55 percent.
- Mining Lease Application: Amining lease application was lodged in mid-2024 over the West Lake resource while a miscellaneous licence application (L63/99) was lodged to cover mine infrastructure and haulage road.
The scoping study was underpinned by a sulphuric acid process allowing the company to achieve a new milestone by producing HPA with purity of more than than 99.99 percent (4N) from the metallurgical processing of lake clays acquired from Lake Hope. The company further identified a new proprietary metallurgical process for producing HPA from the lake clays. Known as the low-temperature leach (LTL) process, this also produced 99.99 percent (4N) Al2O3 and has the potential to lower even further the capital and operating costs to produce HPA compared to the sulphate process. The LTL process will be included in the ongoing pre-feasibility study along with the sulphate process to determine the best processing route to HPA. The PFS is due to be completed in late 2024.
Broken Hill Copper Project
The Broken Hill project has a significant land position of 815 square kilometers and hosts multiple targets with the potential for high-grade copper. Broken Hill is located in New South Wales, Australia, an area known for its prolific silver-lead-zinc mining operations and the giant Broken Hill deposit.
Project Highlights:
- Participant in the BHP Xplor Program: Impact was selected for the BHP Xplor program in 2023 based on its Broken Hill project. The program is designed to allow participants to accelerate growth and establish a long-term partnership with BHP.
- Potential for Additional Minerals and Deposits: As well as copper, the project has significant exploration potential for magmatic nickel-copper-PGE sulphides, and at the time the host rocks were formed, Broken Hill was located close to the world-class nickel-copper-PGE deposit of Jinchuan and the significant Lengquisheng deposit. The project area also has the potential to contain zinc-lead-silver deposits, providing even more value.
Arkun Nickel-Copper-Gold-Lithium-REE Project
The Arkun project is a 2,900-square-kilometer nickel, copper and gold project located in the emerging Ni-Cu-PGE province near the world-class Julimar Ni-Cu-PGE deposit and surrounded by Anglo American Corporation, which secured its ground holding shortly after Impact secured its asset. Anglo-American is one of the world’s top ten mining companies, and their presence in the region brings confidence in the project’s potential.
Project Highlights:
- Additional Exploration Underway: Impact plans follow-up work programs, including drilling, at its priority targets.
- Significant Targets Identified: Recent soil sampling identified two new prospects:
- Hyperion prospect - Located in the northwestern part of the project area returned with rare earth element anomalism of up to 5,880 ppm (0.59 percent) total rare earth oxide (TREO+Y) and neodymium and praseodymium (Nd+Pr) of up to 21 percent.
- Caligula prospect - Initially identified on the roadside, the Caligula prospect is a large and significant target for porphyry copper mineralisation.
- Three New Exploration Licences: Impact applied for three new exploration licences expanding Arkun project along trend from the recently discovered REE soil geochemistry anomalies at Hyperion, Swordfish and Horseshoe as well as the Caligula copper anomaly.
Management Team
Peter Unsworth - Non-executive Chairman
Peter Unsworth, formerly a chartered accountant, has over 35 years of experience in the corporate finance, investment and securities industries and a wealth of management experience with public and private companies. A former executive director with a leading Western Australian stockbroking company, Unsworth has been a director of several public exploration and mining companies. He recently completed a long time serving as chairman of the Western Australian Government-owned Gold Corporation (operator of The Perth Mint). Unsworth is the founding chairman of Impact Minerals.
Dr. Mike Jones - Managing Director
Dr. Mike Jones is the founding managing director of Impact Minerals Limited, which was listed on the Australian Stock Exchange in November 2006. Reporting to the board of directors, he is responsible for the company's performance as it moves towards production at its Lake Hope High Purity Alumina Project and also for implementing strategies to explore and maximize the value of the company's other extensive tenement holdings.
Since listing, he has helped raise more than $60 million to help fund the exploration of Impact’s projects and managed the company through significant adverse events, including the global financial crisis and the Fukushima nuclear disaster, which affected Impact’s considerable investment in the uranium sector, a five-year global downturn in the mining sector and more recently, the COVID-19 pandemic.
Paul Ingram - Non-executive Director
Paul Ingram is a geologist with extensive experience managing major mineral exploration programs for several publicly listed companies and has been involved in the mining sector for over thirty years. He has designed and implemented innovative techniques for exploration in remote areas and has managed projects in countries throughout Australia and East Asia. Ingram has been a director of the following listed companies in the past three years: Polo Resources from January 2008 to January 2011; A-Cap Resources since June 2009; Consolidated Global Investments since September 2006; Caledon Resources from February 2003 to March 2008; and Australian Pacific Coal since March 2011.
Dr Frank Bierlein - Non-executive Director
Dr. Frank Bierlein is a geologist with 30 years of experience as a consultant, researcher, lecturer and industry professional. Bierlein has held exploration and generative geology management positions with QMSD Mining, Qatar Mining, Afmeco Australia and Areva NC, and consulted for, among others, Newmont Gold, Resolute Mining, Goldfields International, Freeport McMoRan, and the International Atomic Energy Agency. He is currently a non-executive director of PNX Metals. He was previously a non-executive director of Gold Australia NL and chaired the advisory board of a Luxembourg-based private equity fund between 2014 and 2021.
Top 5 Canadian Mining Stocks This Week: O3 Mining Up 60 Percent on Agnico Eagle Takeover Deal
Welcome to the Investing News Network's weekly look at the best-performing Canadian mining stocks on the TSX, TSXV and CSE, starting with a round-up of Canadian and US news impacting the resource sector.
The S&P/TSX Venture Composite Index (INDEXTSI:JX) fell 1.12 percent on the week to close at 607.84 on Friday (December 6). Meanwhile, the S&P/TSX Composite Index (INDEXTSI:OSPTX) posted a 1.71 percent decrease to hit 25,274.3, and the CSE Composite Index (CSE:CSECOMP) sank 2.68 percent to reach 131.45.
The US Bureau of Labor Statistics released November consumer price index (CPI) data on Wednesday (December 11).
The report shows the all-items index increased by 0.3 percent monthly, compared to the 0.2 percent recorded in each of the previous four months. Core CPI was also up 0.3 percent, steady compared to the previous three months.
On an annualized basis, CPI increased by 2.7 percent, up from the 2.6 percent rise recorded in October. Core CPI, which excludes food and energy, was unchanged from October, increasing 3.3 percent.
Overall, the increase in the CPI shows some stickiness in inflation, but most analysts think the US Federal Reserve will cut interest rates by 25 points when it meets on December 17 and 18, before pausing in the new year.
In the commodities space, gold passed the US$2,700 per ounce mark midweek, but finished the period virtually unchanged at US$2,648.34; silver sank 1.43 percent to US$30.54 per ounce. Copper ended the week losing just 0.23 percent at US$4.20 per pound on the COMEX. More broadly, the S&P GSCI (INDEXSP:SPGSCI) was up 2.83 percent to close at 546.29.
Equity markets were mixed this week. The S&P 500 (INDEXSP:INX) fell 0.52 percent to end Friday (December 13) at 6,051.08, while the Nasdaq-100 (INDEXNASDAQ:NDX) gained 0.96 percent to come in at 21,780.25. Meanwhile, the Dow Jones Industrial Average (INDEXDJX:.DJI) finished the week down 1.81 percent at 43,828.07.
Find out how the five best-performing Canadian mining stocks performed against that backdrop.
Data for this article was retrieved at 4:00 p.m. EST on December 13, 2024, using TradingView's stock screener. Only companies trading on the TSX, TSXV and CSE with market capitalizations greater than C$10 million are included. Companies within the non-energy minerals and energy minerals sectors were considered.
1. Orosur Mining (TSXV:OMI)
Weekly gain: 88.89 percent
Market cap: C$28.27 million
Share price: C$0.16
Orosur Mining is an explorer focused on the development of early to advanced-stage assets in South America.
Its flagship Anzá gold project in Colombia was previously a 49/51 joint venture with Minera Monte Aguila (MMA), a corporation owned equally by Newmont (TSX:NGT,NYSE:NEM) and Agnico Eagle Mines (TSX:AEM,NYSE:AEM).
Exploration has revealed multiple gold deposits at the site, which is located 50 kilometers west of Medellin and according to Orosur sits along Colombia’s primary gold belt.
Orosur also owns several early stage projects: the El Pantano gold-silver project in Argentina, the Lithium West project in Nigeria and the Ariquemes project in Brazil, which is prospective for tin, niobium and rare earths.
Shares of Orosur jumped significantly following an announcement on November 28 that it has completed its takeover of MMA. The acquisition gives Orosur 100 percent indirect ownership of the Anzá gold project.
Under the terms of the agreement, Newmont and Agnico will each receive a 0.75 percent net smelter royalty, plus a fixed royalty of US$37.5 per ounce of gold or gold equivalent on the first 200,000 ounces produced.
Since the transaction's completion, exploration resumed at the Pepas prospect in mid-November to test high-grade results from a 2022 drill program. Orosur announced on Friday (December 13) that initial assays had been delivered and confirmed the previous results. The samples encountered grades of 5.58 grams per metric ton (g/t) gold over 75.1 meters from the surface, including an intersection of 13.68 g/t over 13.95 meters.
2. NOA Lithium Brines (TSXV:NOAL)
Weekly gain: 80.65 percent
Market cap: C$34.59 million
Share price: C$0.28
NOA Lithium is advancing three projects in the lithium triangle area of Argentina's Salta province: the 37,000 hectare Rio Grande project, the 78,000 hectare Arizaro project and the 10,200 hectare Salinas Grandes project.
Of the three projects, Rio Grande is the most advanced. The company updated the resource estimate for the site in July, noting that measured and indicated resources had increased to 2,658,000 metric tons of lithium carbonate equivalent, with 2,039,000 metric tons of lithium carbonate equivalent in the inferred category.
Shares of NOA gained this week after the company said on Tuesday (December 10) that it had closed a C$13.5 million private placement with Clean Elements, a private holding company established to develop lithium assets. If Clean Elements exercises all warrants, it will receive 39.9 percent of outstanding common shares on a fully diluted basis.
NOA plans to use the proceeds of the offering to pay off debts and fund exploration work at Rio Grande.
3. O3 Mining (TSXV:OIII)
Weekly gain: 60.19 percent
Market cap: C$179.47 million
Share price: C$1.65
O3 Mining is a gold explorer and developer working to advance its assets in Québec, Canada.
The company’s Marban Alliance gold project is composed of 65 mining claims covering 2,189 hectares in Western Québec. Exploration at the site dates back to the 1940s and has seen drilling to a depth of 1,475 meters.
A prefeasibility study from 2022 outlines a pre-tax net present value of C$775 million for the asset with an internal rate of return of 30.2 percent and a payback period of 3.5 years.
O3 also owns the Horizon project, made up of 192 claims over 8,778 hectares directly to the northwest of Marban.
Shares of O3 jumped this week following news on Thursday (December 12) of a friendly takeover offer by major miner Agnico Eagle Mines. The offer, valued at C$204 million, will see Agnico Eagle purchase all outstanding common shares in O3 at C$1.67 per share, a 58 percent premium to the closing price on December 11.
The news was followed on the same day by a joint announcement that O3’s largest shareholder, Gold Fields (NYSE:GFI), would support the transaction through a lock-up agreement with Agnico to tender its common shares in O3. Gold Fields owns approximately a 17 percent stake in O3.
4. KWG Resources (CSE:CACR)
Weekly gain: 50 percent
Market cap: C$19.19 million
Share price: C$0.015
KWG Resources is a chromite and base metals exploration company focused on advancements of its Ring of Fire assets in Northern Ontario, Canada. It does business as the Canadian Chrome Company.
Its assets consist of the Fancamp and Big Daddy claims, along with the Mcfaulds Lake, Koper Lake and Fishtrap Lake properties. All properties are located within a 40 kilometer radius and according to the company are home to feeder magma chambers containing chromite, nickel and copper deposits.
KWG is currently working with local First Nations to improve transportation to the region through the development of road and rail links. The company announced on November 7 that it had signed a memorandum of agreement with AtkinsRealis Canada in its capacity as a contractor representing Marten Falls and Webequie First Nations.
The agreement will allow AtkinsRealis temporary access rights over some mineral exploration claims in support of work permits for an environmental assessment for the design, construction and operation of a multi-use all-season road between the proposed Marten Falls community access road and proposed Webequie supply road.
Once completed, the link will provide improved access to communities and mining companies in the region.
KWG did not release any news in the past week.
5. Vior (TSXV:VIO)
Weekly gain: 47.06 percent
Market cap: C$48.91 million
Share price: C$0.25
Vior is a gold exploration company with a portfolio of assets located in Québec, Canada.
The company’s main focus has been advancing its flagship Belleterre project in southwestern Québec. The property consists of 635 claims covering an area of 350 square kilometres and hosts the past-producing Belleterre gold mine, which produced 750,000 ounces of gold and 95,000 ounces of silver between 1936 and 1959.
The mineralization trend at the property extends for 6 kilometers, and in addition to gold and silver, it has demonstrated the presence of copper, lead, and zinc.
On September 24, Vior commenced a fully funded 60,000 meter drill program at Belleterre, which will operate through mid-2025. The company says it’s the largest drill program at the site since the mine closed in 1959.
The first assays were announced on November 12, and the company reported high-grade gold at depth. The results include highlighted intercepts of 9 g/t gold over 1.2 meters from the Belleterre area, and 4 g/t gold over 1.2 meters from the Aubelle area. Vior said the results confirm the continuity and potential for expansion of mineralization at the site.
The company’s most recent announcement came on Thursday when it announced that Mathieu Savard, Osisko Mining's former president, will become Vior's new president and CEO. He will be joined by Pascal Simard, who was Osisko’s vice president of exploration. Simard will hold the same role with Vior.
FAQs for Canadian mining stocks
What is the difference between the TSX and TSXV?
The TSX, or Toronto Stock Exchange, is used by senior companies with larger market caps, and the TSXV, or TSX Venture Exchange, is used by smaller-cap companies. Companies listed on the TSXV can graduate to the senior exchange.
How many companies are listed on the TSXV?
As of June 2024, there were 1,630 companies listed on the TSXV, 925 of which were mining companies. Comparatively, the TSX was home to 1,806 companies, with 188 of those being mining companies.
Together the TSX and TSXV host around 40 percent of the world’s public mining companies.
How much does it cost to list on the TSXV?
There are a variety of different fees that companies must pay to list on the TSXV, and according to the exchange, they can vary based on the transaction’s nature and complexity. The listing fee alone will most likely cost between C$10,000 to C$70,000. Accounting and auditing fees could rack up between C$25,000 and C$100,000, while legal fees are expected to be over C$75,000 and an underwriters’ commission may hit up to 12 percent.
The exchange lists a handful of other fees and expenses companies can expect, including but not limited to security commission and transfer agency fees, investor relations costs and director and officer liability insurance.
These are all just for the initial listing, of course. There are ongoing expenses once companies are trading, such as sustaining fees and additional listing fees, plus the costs associated with filing regular reports.
How do you trade on the TSXV?
Investors can trade on the TSXV the way they would trade stocks on any exchange. This means they can use a stock broker or an individual investment account to buy and sell shares of TSXV-listed companies during the exchange's trading hours.
Article by Dean Belder; FAQs by Lauren Kelly.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Securities Disclosure: I, Lauren Kelly, hold no direct investment interest in any company mentioned in this article.
Lawrence Lepard: "Big Print" Coming — Fully Expect US$5,000 Gold, US$200,000 Bitcoin
Speaking to the Investing News Network, Lawrence Lepard, managing director at EMA, voiced his thoughts on the outlook for gold and Bitcoin as the debt doom loop intensifies in the US.
"I call it a doom loop — it's a vicious circle in the wrong direction, which I believe will ultimately lead to the government having to say, 'Okay, this isn't going to work. We are going to institute yield curve control or QE, or we're going to buy the bonds,'" he explained on the sidelines of the New Orleans Investment Conference.
Lepard believes it's important to hold both gold and Bitcoin, noting that the only wrong allocation is zero.
"I fully expect Bitcoin's going to go to US$200,000, and I fully expect gold's going to go to US$5,000 (per ounce) in the next couple of years," he said. "All the suffering gold stock holders out there ... we're going to be very pleasantly surprised."
Watch the interview above for more from Lepard on gold and Bitcoin, as well as silver. You can also click here to view the Investing News Network's New Orleans Investment Conference playlist on YouTube.
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.
Chris Temple: Gold's Next Leg Higher, Plus Uranium and Natural Gas in 2025
Chris Temple, founder, editor and publisher of the National Investor, outlined the main factors he sees impacting the gold price heading into 2025, saying the yellow metal will undoubtedly move higher.
In his view, its rise will come as market participants realize how many problems the US economy is facing.
"I think that once that reality sets in, gold will get its next big lease on life and the stock market is going to bog down. I think we're going to see a lot of rotation in the market that will start to favor real assets and real value — away from everybody chasing the same relative handful of stocks as we've seen," Temple explained.
Aside from gold, Temple spoke about natural gas and uranium, his other two favorite commodities in the near term.
He also discussed the potential implications of Donald Trump's second presidency, saying it will be key to watch how he develops the US' relationship with China, especially as the Asian nation grapples with internal problems.
"This is the most important thing that consumers and investors and policy makers need to watch in 2025 — is Trump smart on how he deals with all of this and rebuilds our own industries to compensate for years down the road? Or is he going to be ham-fisted about it and cause more problems than he solves?" Temple questioned.
Watch the video above for more from Temple on what's to come in 2025.
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.
WGC: Gold to Face Complex Drivers in 2025, Price Likely to Cool After Record-Breaking Year
The World Gold Council (WGC) has released its 2025 gold outlook, highlighting various macroeconomic factors, geopolitical risks and central bank activity as pivotal forces influencing demand and prices.
While 2024 saw gold achieve a stellar performance with a 28 percent annual increase, the outlook for 2025 is characterized by a mix of opportunities and challenges stemming from both global and regional developments.
The yellow metal has benefited from its historical role as a hedge against uncertainty, but the WGC forecasts that its performance next year will depend on other key variables as well.
Gold to face complex drivers next year
Looking back at 2024, the WGC outlines multiple factors that drove gold's strong performance.
For instance, central bank demand reached significant levels, underscoring the metal's enduring role as a safe-haven asset. Central banks have now been net buyers of gold for nearly 15 years.
Meanwhile, investor interest surged amid geopolitical instability and market volatility, particularly in the third quarter, when western investors returned to the market, driven by lower yields and a weakening US dollar.
Asian demand, a critical component of the gold market, played a supportive role in the first half of the year.
Indian demand was buoyed by favorable policy changes, including a reduction in import duties, while Chinese investors turned to gold amid concerns about economic growth.
Heading into 2025, the complex global economic picture is creating uncertainty for gold.
In the US, Donald Trump is expected to introduce policies that stimulate domestic economic growth during his second term as president, potentially driving risk-on sentiment in the short term. However, these policies could also create inflationary pressures and disrupt supply chains, leading investors to seek the stability of assets like gold.
Central banks, including the US Federal Reserve, are anticipated to continue cutting interest rates. Market consensus suggests the Fed will cut by 100 basis points in 2025, with similar actions expected in Europe.
The WGC forecasts in its report that a dovish monetary policy environment could be supportive for the gold price, particularly if inflation remains above target levels. On the other hand, any reversal in monetary policy or a prolonged pause in rate cuts could present challenges for gold, as higher opportunity costs may deter investors.
Similarly, subdued economic growth could limit consumer demand, particularly in Asia, where gold plays a dual role as an investment and a cultural staple.
Asia and central banks to lead gold buying
In 2025, the WGC predicts that Asia will remain a cornerstone of the global gold market. The continent accounts for over 60 percent of annual demand, excluding central bank activity.
Chinese consumer demand, which has been relatively muted, is likely to hinge on the country’s economic policies and growth trajectory. Trade tensions and domestic stimulus measures could sway demand either way, while gold may face increased competition from alternative investment avenues such as equities and real estate.
For its part, India is better positioned to sustain gold demand. With economic growth projected to remain above 6.5 percent and a smaller trade deficit compared to other US trading partners, the WGC believes Indian consumers are likely to continue purchasing gold both for investment and cultural purposes.
Central bank activity will remain a critical driver for gold in 2025. While demand may not reach the heights of recent years, it is expected to surpass long-term averages, providing a consistent source of support for the market.
Central bank purchases are influenced by geopolitical risk, sovereign debt levels and portfolio diversification. These drivers are unlikely to wane, ensuring that central banks will continue to play a stabilizing role in the gold market.
However, any significant deceleration in central bank demand could exert downward pressure on the gold price, particularly if combined with other bearish factors such as higher interest rates or reduced investment flows.
Overall, the WGC predicts that in 2025 the gold market is likely to be shaped by the interplay of four primary drivers: economic expansion, risk, opportunity cost and momentum.
Economic growth, though expected to remain positive, will likely be below trend, limiting the scope for consumer demand growth. Geopolitical risks, including ongoing tensions in regions like South Korea and Syria, may prompt investors to increase their allocations to gold as a hedge against uncertainty.
The opportunity cost of holding gold, determined by interest rates and yields, will be a critical factor. Lower rates should support gold, but any unexpected tightening of monetary policy could dampen investment demand.
Finally, market momentum, influenced by technical factors and investor sentiment, will play a role in determining gold’s short-term performance. A strong start to the year, fueled by initial risk-on sentiment, could pave the way for a more stable or even bullish trajectory, provided macroeconomic conditions remain favorable.
How will the gold price perform in 2025?
Market consensus suggests gold will remain rangebound in 2025, potentially seeing modest gains.
However, the WGC reminds investors that the market is not without risks. A rapid deterioration in financial conditions, unexpected geopolitical developments or a sharp rise in central bank demand could provide upside surprises.
Conversely, a reversal in monetary policy or subdued demand from key markets could cap gold’s performance.
Either way, both investors and analysts will closely monitor developments related to the key regions and variables mentioned to gauge the direction of the gold market this coming year.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
Increased M&A Activity a Win-Win for Gold Sector, Brightstar Resources Exec Says
Following the completion of its acquisition of Alto Metals, Brightstar Resources (ASX:BTR) plans to conduct 50,000 metres of reverse-circulation and diamond drilling, beginning next year, at Alto Metals' approximately 900 square kilometre Sandstone gold project in Western Australia.
In an interview with the Investing News Network, Brightstar Managing Director Alex Rovira outlined the next steps for merging Alto Metals with Brightstar’s assets and the strategy for moving forward.
“From an exploration perspective … it's really focusing on the Sandstone package. We will do near-mine brownfields exploration at our Menzies and Laverton gold projects. And really, the aspiration there is to take a number of those mines toward development decisions,” he said.
Brightstar’s Alto Metals acquisition is one of an increasing number of mergers and acquisitions within the gold space in recent years, fueled by a strengthening gold price and a desire to boost gold production.
In 2024 alone, Brightstar has acquired three companies — Linden Gold, Gateway Mining and Alto Metals — boosting the company’s gold resources and bringing it closer to production.
Rovira added that Brightstar’s global resources have grown from 400,000 ounces to 3 million ounces to date through a combination of M&A and resource exploration.
“For us in our business, it made a lot of sense to conduct some of this M&A, because it was almost cheaper at times to be acquiring ounces than it was to raise the money and explore for them. So we managed to consolidate a number of mispriced or undervalued opportunities in Western Australia,” he said.
Rovira offered his insight on the trend of increasing M&A in the gold sector, calling Northern Star Resources' (ASX:NST,OTC Pink:NESRF) planned US$5 billion acquisition of De Grey Mining (ASX:DEG,OTC Pink:DGMLF) a “win-win.”
“What that does is it frees up capital in the sector so investors can monetise those positions and they can look to reinvest that in other gold-mining companies. So it is good for liquidity, it's good for investors (and) ultimately for the companies as well. It provides access to capital whether there's operational synergies, different teams coming in and looking at different projects,” Rovira said.
Watch the full interview with Alex Rovira, managing director of Brightstar Resources, above.
Disclaimer: This interview is sponsored by Brightstar Resources (ASX:BTR). This interview provides information which was sourced by the Investing News Network (INN) and approved by Brightstar Resources in order to help investors learn more about the company. Brightstar Resources is a client of INN. The company’s campaign fees pay for INN to create and update this interview.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Brightstar Resources and seek advice from a qualified investment advisor.
This interview may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, receipt of property titles, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The issuer relies upon litigation protection for forward-looking statements. Investing in companies comes with uncertainties as market values can fluctuate.
Horizon Minerals
Investor Insight
Horizon Minerals’ near-term cash-flow potential and its significant land package in the prolific Western Australian goldfields with considerable exploration upside position the company to positively leverage the current bull gold market opportunity.
Overview
Horizon Minerals (ASX:HRZ) is an ASX-listed emerging mid-tier gold mining company focusing on a portfolio of highly promising gold projects located in the world-class Western Australian goldfields. The recent merger with Greenstone has added nearly 0.5 million ounces (Moz) of high-grade resource to Horizon, taking its total tally to 1.8 Moz, and resulted in Horizon Minerals total land package of 939 sq km in the Kalgoorlie-Coolgardie district.
The Greenstone merger brings near-term cash-generating opportunities and adds greater scale to its baseload assets (Boorara) with the high-grade Burbanks deposit. Horizon’s dual-track strategy involves generating immediate cash flows by leveraging a pipeline of development-ready production assets and concurrently advancing the cornerstone assets, Boorara and Burbanks, which have a combined resource inventory of 914 koz at 1.7 grams per ton (g/t) gold with potential to support a profitable, long-life operation.
The recent ore sale agreement with Paddington Gold is encouraging and increases confidence in the management’s ability to generate near-term cash flows. Under the agreement, 1.4 million (Mt) will be processed over a period of 22 months. The agreement allows Horizon to capitalize on high gold prices to generate significant cash flows.
Horizon is also progressing with other projects, including the Cannon gold project and Penny’s Find underground mine, and actively exploring for new discoveries in the Western Australian Goldfields, targeting gold and other commodities such as nickel-cobalt, silver-zinc, PGEs and lithium across its extensive land holdings. Additionally, Horizon holds a significant stake in one of the world’s largest vanadium projects via its investment in Richmond Vanadium Technology, which is listed on the ASX.
Horizon proposes to acquire 100 percent of Poseidon via an all-scrip transaction for AU$30 million to consolidate 1.8Moz gold and highly strategic processing infrastructure for Horizon to transition to the next standalone WA gold producer. The acquisition will combine Horizon’s large gold resource and Poseidon’s Black Swan processing infrastructure in the Kalgoorlie-Coolgardie districts. The transaction will further result in substantial resource base and regional tenure to a combined JORC mineral resources of ~1.8Moz gold at an average grade of 1.84g/t gold and 422,700t nickel at an average grade of 1 percent nickel. Horizon and Poseidon will have a total of 1,309 sq. km. tenure in an attractive geological position in the WA Goldfields.
Horizon aims to become a sustainable, 100kozpa standalone producer following the merger and conversion and recommissioning of the Black Swan processing plant. The 2.2Mtpa processing facility is strategically located 40 km north of Kalgoorlie with a concentrator readily amenable to processing gold through cost-effective refurbishment and the addition of a new CIL circuit.
Horizon's 30Mt existing gold resources, with 50,000 metres of drilling fully funded to commence drilling in 2025 or 2026, strongly support the conversion of the Black Swan processing plant to a gold plant.
Company Highlights
- Horizon Minerals is an emerging mid-tier gold producer with an extensive portfolio of highly promising gold projects located in the world-class Western Australian goldfields.
- The recently completed merger with Greenstone Resources positions Horizon as a mid-tier gold producer in the Western Australian Goldfields. The combined entity enhanced Horizon’s portfolio with two complementary cornerstone gold assets — Burbanks and Boorara (combined resource of 914,000 oz).
- Mineral resource updates after the merger include 1.8Moz gold, 20.2Moz silver, 104kt zinc, 283kt nickel, 40.5kt cobalt and 296.2kt manganese.
- Changes to the gold MREs include:
- Addition of 297,650oz from Burbanks open pit
- Addition of 167,920oz from Burbanks underground
- Addition of 13,000oz from Pinner
- Addition of 3,000oz from Monument
- Reduction of 20,240oz from Boorara
- Horizon has announced a proposed merger with Poseidon Nickel Limited with Horizon having in ground gold assets that can be processed, and Poseidon having processing facilities including the Black Swan plant, which Horizon proposed to refurbish and repurpose from a concentrator into a gold CIL plant.
- Open pit mining has commenced at the Boorara gold project in August 2024 and the first ore was exposed and mined in late September 2024, with first ore being delivered to the Paddington mill for processing.
- Horizon also recently commenced mining at its recently acquired Phillips Find project with ore to be processed at the Greenfields mill near Coolgardie from February to June 2025.
- Horizon is also progressing with other projects, including the Cannon and Penny’s Find underground mines.
- Amidst the current record gold prices, Horizon seeks to capitalize on this opportunity by advancing its substantial resource endowment towards development, thereby generating cash flow.
Key Projects
Boorara Gold Project
The Boorara gold project is located 15 km east of Kalgoorlie-Boulder in the Western Australian goldfields. Over the past decade, a substantial amount of reverse circulation and diamond drilling has been carried out at Boorara. The project includes a JORC 2012 mineral resource estimate (MRE) by Optiro (now Snowden Optiro), which reported a total of 10.53 Mt grading at 1.26 g/t gold, amounting to 448,000 ounces.
The company views Boorara as a substantial baseload feed source that could be enhanced by lower tonnage, higher-grade feed to sustain a standalone milling facility. This is where the recent acquisition of Greenstone becomes important. Boorara can be supplemented by higher-grade feed from Greenstone’s Burbanks deposit to support an integrated operation.
The Independent JORC (2012) Ore Reserve for Boorara, completed by AMC Consultants, shows a financially viable project highlighted by an open pit mine design producing 1.24 Mt at a fully diluted grade of 1.24 g/t gold for 49.5 koz over an approximate 14-month mine life, and ore sale agreement at 92.5 percent metallurgical recovery produces 45.8 koz recovered.
Boorara commenced open pit mining in August 2024, with the first ore exposed and mined in late September 2024. Mining at the site will occur over 14 months and processing over 19 months at Norton Gold Fields’ Paddington plant to generate $30 million in estimated free cashflow at a AU$3,600/oz gold price.
Phillips Find Gold Project
The Phillips Find gold project is located 45 km north-west of Coolgaride, Western Australia in the heart of the Western Australian goldfields covering 10 kilometres of strike over prospective greenstone stratigraphy. The project includes the Phillips Find Mining Centre (PFMC) where approximately 33,000 ounces of gold were produced between 1998. A joint venture (JV) agreement is in place with mining specialists BML Ventures Pty Limited (BML) to develop and mine two open pits at Phillips Find. Horizon Minerals plans to commence the grade control program early in December and the first mining of ore in December 2024. The first ore from Phillips Find is on track to be treated at FMR’s Greenfields mill from February 2025 to June 2025
Nimbus Silver-Zinc Project
The 100 percent owned Nimbus silver-zinc-lead-gold deposit is located 15 kilometres east of Kalgoorlie-Boulder in Western Australia within the Kalgoorlie Terrane. The project's current mineral resource estimate (JORC 2012) includes 12.1 million tons at 52 g/t silver, 0.2 g/t gold and 0.9 percent zinc containing 20.2 million oz of silver, 78,000 oz of gold and 104,000 tons of zinc using lower cut-off grades of 12 ppm for silver, 0.5 percent for zinc and 0.3 g/t for gold over a 2 metre down hole composite. Within this global resource, the Nimbus project has a high-grade silver and zinc resource of 255,898 tons at 773 g/t silver and 13 percent zinc.
A concept study has confirmed the optimal economic development pathway by mining the higher-grade lodes and generation of a silver/zinc concentrate. A programme of work (POW) has been approved and drilling to test the exploration target is expected to be undertaken in the first half of 2025. The Nimbus project is 2 km east of Horizon's cornerstone Boorara project and 6.5 km north-northwest of Golden Ridge, both historic gold mining centres.
Burbanks Gold Project
The Burbanks gold project is situated 9 km southeast of Coolgardie, Western Australia. The project encompasses the Burbanks Mining Centre and more than 5 kilometers of the highly promising Burbanks Shear Zone, historically the most significant gold-producing structure within the Coolgardie Goldfield. Previous underground production at Burbanks has surpassed 420,000 oz to date.
Burbanks currently hosts a total resource of 6.1 Mt @ 2.4 g/t gold for 466 koz, including underground of 1.2 Mt @ 4.4 g/t gold for 168 koz. Burbanks is underexplored and remains open in all directions for future growth.
Cannon Underground Project
The Cannon gold project is located 30 km east-southeast of Kalgoorlie-Boulder. It is a fully permitted project with a pre-feasibility study completed in 2022, which shows strong project economics with a free cash flow of AU$10.1 million over the mine's life. The company has finished commissioning a dewatering pipeline and a pumping system, representing a major milestone in the advancement of its Cannon Underground project. Discussions with mining contractors and potential JV mining partners are underway. First ore production from the Cannon Project is expected to commence in Q4 2024.
Penny’s Find
Penny’s Find is about 50 km northeast of Kalgoorlie in the Eastern Goldfields of Western Australia, near the company’s wholly-owned Kalpini gold project. It comprises a granted mining lease and other associated leases covering 91 hectares. The mineral resource estimate updated in December 2023 boasts 63,000 ounces of gold in the indicated and inferred category. A pre-feasibility study for exploitation using underground mining methods is currently underway. This study will include mine design and financial analysis.
Rose Hill
Rose Hill is 0.5 km southeast of Coolgardie and 35 km west of Kalgoorlie-Boulder, on the western edge of the Archean Norseman-Menzies Greenstone Belt. The current JORC 2012 resource at Rose Hill contains 93,300 oz , comprising an open-pit mineral resource of 0.3 Mt grading 2.0 g/t gold for 18,400 oz, and an underground mineral resource of 0.5 Mt grading 4.6 g/t gold for 74,900 oz. Nearly 70 percent of the resource is in the measured and indicated JORC categories.
Kalgoorlie Regional
Horizon owns several promising tenements within the Kalgoorlie region. These project areas include the greater Boorara-Cannon project area, Lakewood, Binduli-Teal project area, Kalpini, Balagundi-Kanowna South and Black Flag.
Coolgardie Regional
Horizon manages several promising tenements within the Coolgardie region, including Rose Hill, Brilliant North and Yarmany.
Management Team
Ashok Parekh – Non-executive Chairman
Ashok Parekh has over 33 years of experience advising mining companies and service providers in the mining industry. He has spent many years negotiating mining deals with publicly listed companies and prospectors, leading to new IPOs and the initiation of new gold mining operations. Additionally, he has been involved in managing gold mining and milling companies in the Kalgoorlie region, where he has served as managing director for some of these firms. Parekh is well-known in the West Australian mining industry and has a highly successful background in owning numerous businesses in the Goldfields. He was the executive chairman of ASX-listed A1 Consolidated Gold (ASX:AYC) from 2011 to 2014. He is a chartered accountant.
Warren Hallam - Non-executive Director
Warren Hallam is currently a non-executive director of St Barbara Limited and Poseidon Nickel Limited, and non-executive chairman of Kingfisher Mining Limited. Hallam has a built a strong track record over 35 years in operations, corporate and senior leadership roles across multiple commodities. This includes previous Managing Director roles at Metals X Limited, Millenium Metals Limited and Capricorn Metals Limited. Hallam is a metallurgist with a Master in Mineral Economics from Curtin University.
Grant Haywood – Managing Director and Chief Executive Officer
Grant Haywood brings over three decades of experience in both underground and open-cut mining operations. During his career, he has served in senior leadership capacities in various mining companies, guiding them from feasibility through to development and operations. His experience spans various roles within junior and multinational gold mining companies, predominantly in the Western Australian goldfields, including positions at Phoenix Gold, Saracen Mineral Holdings, and Gold Fields. He is a graduate of the Western Australian School of Mines (WASM) and has also earned a Masters in Mineral Economics from the same institution.
Julian Tambyrajah – Chief Financial Officer & Company Secretary
Julian Tambyrajah is an accomplished global mining finance executive with more than 25 years of industry expertise. He is a certified public accountant and chartered company secretary. He has served as CFO of several listed companies including Central Petroleum (CTP), Crescent Gold (CRE), Rusina Mining NL, DRDGold, and Dome Resources NL. He has extensive experience in capital raising, some of which includes raising US$49 million for BMC UK, AU$122 million for Crescent Gold and AU$105 million for Central Petroleum.
Stephen Guy – Chief Geologist
Stephen Guy is a geologist with over 25 years of experience in the mining industry, specialising in exploration, production, and project start-ups for both open pit and underground operations. His career spans key regions in Australia, including Western Australia, New South Wales, and Queensland, where he has collaborated with leading companies such as BHP, Newcrest, St Barbara Gold, Fortescue Metals Group (FMG), and Gindalbie Metals. Guy’s expertise covers a diverse range of commodities, including gold, copper, nickel, base metals, and iron ore.
Brendan Shalders - Chief Executive Officer (Poseidon)
Brendan Shalders is an experienced mining executive and has worked within or consulted with the mining and mining services industries for over 20 years. He is a chartered accountant and prior to joining Poseidon, he was managing director at FTI Consulting, a restructuring and corporate advisory services firm for nearly 3 years, where he assisted mining clients. Having held senior finance roles in both advisory and corporate settings, he has extensive experience in corporate finance, accounting, risk management, leadership and business development.Latest News
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