The Conversation (0)
Eastern Metals Investor Kit
- Corporate info
- Insights
- Growth strategies
- Upcoming projects
GET YOUR FREE INVESTOR KIT
Eastern Metals
Investor Insight
Eastern Metals is a base and precious metals explorer with a high-quality asset portfolio located in some of Australia’s best known mineral provinces.
Eastern Metals’ core focus is on the advanced Home of Bullion deposit in the NT, which hosts a Resource of 3.1 million metric tons @ 2.9 percent copper-equivalent – and the Browns Reef zinc-lead-copper-silver deposit in the Cobar Basin of NSW, a world-class mineral jurisdiction.
With favorable supply and demand dynamics for copper and an advanced asset portfolio – Eastern Metals provides de-risked exposure to strategic metals and a compelling proposition for investors evaluating the strategic metals space.Overview
Eastern Metals (ASX:EMS) is an ASX-listed base and precious metals explorer with a portfolio of high-quality assets in some of Australia’s most resource-rich regions, with established production, transport and energy infrastructure.
With many centuries of intensive use, base and precious metals are well understood at every stage of the project lifecycle – from exploration to development, mining, processing and offtake – offering de-risked exposure to the energy thematic.
The company holds two projects: the Arunta Project in the Northern Territory (NT), and the Cobar Project in the Cobar Basin of New South Wales (NSW), a world-class mineral jurisdiction. The company’s main focus is on two advanced assets: the Home of Bullion deposit in the NT and the Browns Reef deposit in the Cobar Basin, both strategically located, with ready access to road, rail and energy infrastructure.
Eastern Metals is led by a board and management team with significant breadth and depth of experience in exploration, discovery, development and governance, and a strong track record in delivering value for shareholders.
Company Highlights
- Eastern Metals is an ASX-listed exploration company focused on discovering and developing strategically located base and precious metals projects in New South Wales (Cobar Project) and the Northern Territory (Arunta Project).
- Eastern Metals’ flagship assets are the Home of Bullion deposit in the Northern Territory (NT), which hosts a total Identified Mineral Resource of 3.1 million metric tons @ 2.9% copper equivalent – and the Browns Reef zinc-silver-lead-copper-gold deposit in the world-class Cobar Basin, New South Wales (NSW).
- Both Home of Bullion and Browns Reef are strategically located, with ready access to road, rail and energy infrastructure.
- The world-class Cobar Basin in NSW is enjoying a resurgence courtesy of some new discoveries and Metal Acquisition’s (NYSE:MTAL,ASX:MAC) purchase of the CSA Mine in June 2023.
Key Projects
Arunta Project
The Arunta Project is located in the Northern Territory encompassing a land package of 539 sq km, and is strategically located between the Stuart Highway, the Adelaide-Darwin rail corridor, and the Amadeus gas pipeline, east of Barrow Creek in the NT. The northern project area comprises one deposit and two prospects – Home of Bullion, Mulbangas and Prospect D. The priority is on advancing the Home of Bullion copper deposit. Home of Bullion hosts an existing mineral resource estimate (MRE) of 3.1 million metric tons, grading at 2.9 percent copper equivalent for 89.9 metric kilotons of contained copper-equivalent metal.
Home of Bullion, from 1923 to 1949 produced 3,185 metric tons of ore at 22.5% copper. With an MRE in place for this deposit, there is potential for further increasing the resource base, especially as the deposit remains open along strike and at depth. Further field work, including IP surveys, mapping and field sampling programs will aim to generate drill-ready targets along the ~9 km magnetic trend between Home of Bullion and the Mulbangas prospect. This work is supported by a recent co-funding grant of up to $100,000 through the NT Government’s Geophysics and Drilling Collaborations Program.
Cobar Project
The Cobar Project is situated 470 km west of Sydney, in New South Wales. It encompasses the company's Browns Reef tenement along with three exploration licenses – Tara, Bothrooney and Black Range – located in the southern Cobar Basin, a tier 1 mining jurisdiction for base metals exploration and production.
The project’s previous owner, Kidman Resources, defined a JORC 2012 exploration target for the Browns Reef deposit, based on 52 diamond drill holes and 22 RC holes, of 27 to 37 million metric tons grading between 1.3 to 1.4 percent zinc, 0.6 to 0.7 percent lead, 9 to 10 g/t silver and 0.2 to 0.3 percent copper. (The potential quantity and grade of this exploration Target are conceptual in nature and there has been insufficient exploration to define a mineral resource. It is uncertain if further exploration will result in the determination of a mineral resource. Eastern Metals confirms that it is not in possession of any new information or data that materially impacts on the reliability of this estimate.)
Eastern Metals is currently advancing the Browns Reef deposit to identify areas where higher-grade zones of base metals mineralization may occur. The Evergreen and Pineview zones are targets for further exploration, where previous fieldwork programs identified new zones of anomalous base metal mineralization. These new zones, named Kelpie Hill and Windmill Dam, will be the primary focus of forthcoming exploration initiatives. IP surveys and drilling will investigate whether these areas constitute a continuous mineralization zone linking Pineview and Evergreen and potentially serving as a northern extension of Evergreen.
The Cobar Project is adjacent to Australian Gold and Copper’s (ASX:AGC) Achilles prospect which recently delivered spectacular gold and silver results.
Management Team
Bob Duffin - Non-executive Chairman
Bob Duffin has over 45 years of experience in the mining industry. He has participated in exploration programs for a variety of commodities, including copper, other base metals, gold, uranium and iron ore. He began his career with the Geological Survey of New South Wales and held senior positions at Peko-Wallsend, MIM Holdings, Austirex International and Natquest. He has been a non-executive director of several listed companies, including Centennial Coal, Midwest Corporation, Ferrowest, Burmine, Austmin Gold, Mt Lyell, Europa Minerals Group and Mancala.
Ley Kingdom - Chief Executive Officer
With over 25 years of experience in the resources sector in technical and corporate roles, Ley has worked across diverse commodities and jurisdictions, from greenfield exploration to resource definition and feasibility studies. Ley’s prior experience includes working for Western Mining Corporation, BHP and a number of juniors and mid-tiers overseeing greenfield projects through to resource definition and feasibility.
Jason Berton - Non-executive Director
Jason is a geologist and company director who commenced his career as an exploration and mine geologist at the Plutonic Gold Mine in Western Australia, before moving to BHP in South Australia, where he worked on the Olympic Dam Mine expansion project. Previously, he also worked with SRK, an international firm of consulting geologists, and spent two years in private equity assessing resource investment opportunities. He is the Managing Director of PolarX, where he played a major role in negotiating the acquisition of key tenements in North America, and a former director of Estrella Resources. He is also a non-executive director of Lithium Plus.
Mark Dugmore - Non-executive Director
Mark Dugmore is an experienced geologist and boasts significant experience in the mining sector, having served as director and advisor to several junior mining exploration companies. Since 2014, he has served as the managing director of the ROMARDO Group, a Brisbane-based private group specializing in generating early-stage exploration projects in precious metals, base metals and lithium. He spent 16 years working with BHP Minerals.
Ian White - Non-executive Director
Ian White is an experienced corporate executive with experience in company administration, management and marketing. He has served on more than 20 boards as director or secretary, including several ASX-listed companies. Currently, he is the secretary of Maronan Metals (ASX:MMA) and was previously secretary for WPG Resources and Eastern Iron.
Ian Morgan - Chief Financial Officer and Company Secretary
Ian is a member of Chartered Accountants Australia and New Zealand and the Governance Institute of Australia, with over 35 years of experience. Ian provides secretarial and advisory services to a range of companies, including holding the position of Company Secretary and CFO for other ASX-listed public companies.
Shallow High-Grade Gold Zone Intersected at Kelpie Hill – Cobar Project, NSW
- Reconnaissance drilling completed at two new targets, Kelpie Hill and Windmill Dam, and at the advanced Evergreen prospect within the 100%-owned Cobar Project in NSW.
- Assay results received for three Reverse Circulation percussion (RC) holes completed at Kelpie Hill, with hole KHRC001 intersecting significant high-grade gold plus base metal mineralisation:
- 7m @ 4.3g/t Au, 2.7g/t Ag, 0.3% Pb from 50m and 1m @ 4.17g/t Au, 2.7g/t Ag from 82m
- Holes KHRC002 and 003 intersected anomalous base metals, and were extended as diamond tails into the primary sulphide zone, returning intercepts of up to:
- 3.05m @ 3.9% Zn, 2% Pb, 29.5g/t Ag from 298.5 and 0.5m @ 7.2% Zn, 2.4% Pb from 299m
- Assays pending for two holes completed at Windmill Dam and Evergreen.
- Induced Polarisation (IP) survey due to commence in the coming weeks. Results from the IP survey will help define and prioritise targets for immediate, follow-up drill testing.
The Company has completed drilling at its two new targets, Kelpie Hill and Windmill Dam, as well as drilling at the more advanced Evergreen prospect (refer to Figure 1). Assays results have so far been received for three (3) holes at Kelpie Hill, where hole KHCRC001 returned an intercept of 7 metres at an average grade of 4.3g/t Au (incl. 1m at 8.56g/t Au) in the weathered, oxidised zone of the Preston Formation, along with silver and base metals. Refer to Table 1 for a summary of significant intercepts.
Base metal results were also returned from the other two holes, including deeper base metal zones in the primary (sulphide zone) of hole KHRCDD003. Assay results from drilling at Windmill Dam and Evergreen are still pending. In light of these highly encouraging results, the Company is finalising the design of an Induced Polarisation (IP) survey, which is due to commence in the coming weeks. Results from the IP survey will help define and prioritise targets for follow-up drill testing.
Eastern Metals’ Chief Executive Officer Ley Kingdom said: “While the high-grade gold zone intersected in the first hole was somewhat of a surprise, given that this was primarily a base metals target, intersecting significant mineralisation is an exciting development for any exploration team. While we are still in the process of evaluating the results and working out the geological context and significance of what we have seen in the first three holes at Kelpie Hill, the key takeaway for investors is that this is a highly complex, mineralised system which offers enormous discovery potential, particularly when considering how little drilling has been done. With results pending from the remaining holes, and an IP survey starting shortly, it’s definitely a case of ‘watch this space!’”.
Figure 1: Location of EL6321 (Browns Reef) and the Kelpie Hill, Windmill Dam & Evergreen prospects.
Kelpie Hill Prospect, Browns Reef (EL6321)
Three Reverse Circulation percussion (“RC”) holes were completed at the Kelpie Hill prospect for 560 metres. Two of the holes (KHRC001 and KHRC002) directly targeted a strong lead-arsenic soil geochemical anomaly, while the third (KHRC003) was drilled as a pre-collar for a planned diamond tail (KHRCDD003) to intersect the target zone at greater depth (see Figure 2).
Figure 2: Cross-section of Kelpie Hill drill-holes KHRC001, KHRC002 and KHRCDD003 showing significant intercepts including 7m @ 4.3g/t gold (Au) from 50m downhole.
All three holes intersected anomalous lead-zinc gossanous ironstones, with KHRCDD003 also intersecting primary sulphides below the depth of oxidation. Diamond cored HQ “tails” were drilled to extend holes KHRC002 and KHRC003.
The 50-56 metre interval was logged by the site geologist as “massive red haematitic ironstone, gossanous” in the weathered oxidised zone of the Preston Formation to the west of the interpreted Woorara Fault, a large regional scale structure on the Preston-Clements contact. Refer to Figure 3.
Significant intercepts for KHRC001 include:
- 7m @ 4.3g/t Au, 2.7g/t Ag, 0.3% Pb from 50m, including:
- 1m @ 8.56g/t Au from 51m
- 1m @ 4.17g/t Au, 2.7g/t Ag from 82m
- 5m @ 3.45g/t Ag, 0.35% Zn from 103m, including:
- 1m @ 8.3g/t Ag from 106m
Figure 3: Kelpie Hill plan view of drillholes KHRC001, KHRC002 and KHRCDD003 with Pb soil contours, and interpreted faults.
Hole KHRC002 was extended as hole KHRCDD002 with a diamond cored tail from 197 metres to 201.35 metres; however, this hole was abandoned due to drilling complications and did not reach the planned target depth into the Clements Formation on the eastern side of the target zone.
The oxide zone interval 169 to 197 metres is strongly lead anomalous, with the interval 175.5 to 197 metres logged by the site geologist as “strongly silica altered ex-shale and sandstone, often highly ferruginous to gossanous, limonite and haematite stain, pits ex-sulphide, quartz veins”.
Click here for the full ASX Release
This article includes content from Eastern Metals, 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.
Silver Price Update: Q3 2024 in Review
How did the silver price perform in Q3?
Silver started the third quarter at US$29.46 on July 1 and had surged above US$31 by the middle of the month.
The precious metal's increase came alongside renewed speculation that the Fed would cut rates in July. However, backed by another strong US jobs report, the central bank left rates unchanged.
Against that backdrop, the price of silver began to fall and by July 30 had reached US$29.04.
The silver price sank to a quarterly low of US$26.65 on August 7, even as speculation about a rate cut in September took hold among market participants. The retreat, which mirrored a dip in the gold price as investors looked to take profits, was short-lived, and by mid-month the white metal was once again trading above the US$29 mark.
Silver price, Q3 2024.
Chart via Trading Economics.
Silver reached US$30.14 on August 27 after remarks from Fed Chair Jerome Powell at his annual address at the Jackson Hole Economic Symposium. His dovish statements were the clearest indication yet of an upcoming rate cut.
September started with silver in a slide. It bottomed out on September 6 at US$27.93, but saw a reversal after August's US jobs report fell short of expectations and boosted expectations of a larger rate cut.
This provided tailwinds for silver, which broke through the US$30 level before the Fed slashed rates by 50 basis points at its September meeting. Silver climbed to its quarterly high of US$32.15 on September 24.
Industrial demand still a key silver price driver
Silver is valued as a precious metal, but is also driven by industrial demand, particularly photovoltaics.
According to the Silver Institute, silver demand for solar power has more than doubled in the past five years, rising from 74.9 million ounces in 2019 to a forecast 232 million ounces by the end of this year.
India in particular has become a major factor in global photovoltaics market, and has been one of the largest silver consumers in 2024. The country reportedly imported 4,554 metric tons of silver during the first half of the year, putting it on pace to double the 3,625 metric tons of silver it imported in 2023.
In April, India reintroduced a requirement for major photovoltaics projects in the country to use domestically sourced panels. The requirements were put on hold for the 2023 fiscal year due to insufficient domestic manufacturing. Their return has led to a ramp up in Indian photovoltaics production and an increased need for silver.
Additionally, TopCon cells, which have higher efficiency, but require 50 percent more silver content, have begun to dominate the photovoltaics market, contributing to an increasing strain on the supply of silver.
Speaking to the Investing News Network (INN), Peter Krauth, editor of Silver Stock Investor, noted that in addition to increasing demand from India’s photovoltaics sector, the government has changed import duties.
“One important development was when India decided to reduce import duties on gold and silver from 15 percent to 6 percent. That led to a second surge of imports into that country,” he said.
Overall, the silver market remains in a deficit. The Silver Institute is forecasting that demand from all sectors will rise to 1.22 billion ounces in 2024, while mine supply will reach just over 1 billion ounces.
Given that difference, why hasn’t the silver price seen a bigger run?
Part of the reason is that aboveground reserves are being drawn down. However, Krauth believes market participants are only just realizing that the deficit situation isn’t going away any time soon.
“Supply has been flat for a decade. Mine supply peaked eight years ago. Demand has grown to 20 percent above annual supply since 2020. The main reason prices haven’t exploded is that silver consumers have been able to tap stockpiles of 'secondary inventories' at major futures exchanges and exchange-traded funds," he explained.
"That may have 12 to 18 months before running out."
M&A activity increasing as silver price rises
As the silver price rises higher, M&A activity in the sector is strengthening.
First Majestic Silver (TSX:AG,NYSE:AG) announced on September 5 that it plans to purchase all of the issued and outstanding shares of Gatos Silver (TSX:GATO,NYSE:GATO) in a US$970 million transaction.
The deal will provide First Majestic with a 70 percent stake in the Cerro Los Gatos mine in Northern Mexico. The combined entity's anticipated annual production is 30 million to 32 million silver equivalent ounces.
On October 4, Coeur Mining (NYSE:CDE) agreed to acquire SilverCrest Metals (TSX:SIL,NYSE:SILV) for US$1.7 billion. The deal will create one of the largest silver producers in the world, with output of 21 million ounces projected by 2025.
The deal gives Coeur 100 percent ownership of the recently opened Las Chispas mine in Sonora, Mexico, which is projected to sell 9.8 million to 10.2 million silver equivalent ounces this year.
Krauth said M&A involving smaller companies may follow as the silver price moves higher.
“Current silver prices are positive for profits, but replacing reserves is a big challenge. I think silver crossing the US$35 mark and sustaining it will give miners confidence that high silver prices are here to stay. With that, they are likely to start moving down the food chain to developers and explorers,” he said.
Investor takeaway
Both Krauth and Mind Money CEO Julia Khandoshko see significant gains ahead for silver.
“Silver may hit more than US$40 and even $50 this year or mid-2025,” Khandoshko commented to INN, noting that strong geopolitical and economic issues continue to impact the precious metal.
“Although silver is less popular than gold, traders might consider it to diversify their investment portfolios, valuing the possibility of using silver as a hedge during periods of uncertainty and high inflation,” she added.
Krauth was similarly positive about silver's prospects. “We are near a crucial level of US$32. Once silver stays consistently above that level, I think it can continue to US$35, which I would expect by the end of this year. Beyond that, I think silver will continue to rise and is likely to reach US$40 at some point in 2025," he said.
However, he expressed a degree of caution, saying there are near-term factors that could pose challenges for investors. He's primarily concerned that a rally in the US dollar could lead to a retreat in precious metal prices.
“In my view, the approach in Q4 should be mostly the same for both metals and equity investors. I’m still cautious that we will see a price pullback in silver, which will bleed into the equities. For that reason, I’d only be adding on weakness in either the metal or the miners,” Krauth said.
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.
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.
Acquisition of Joaquin Silver District Completes
Following the satisfaction of all required approvals and consents, and execution of final definitive legal agreements between Pan American Silver Corp. (“PAAS”) and USL, the Company is pleased to advise that it has completed the acquisition of the Joaquin Project.
HIGHLIGHTS
- 100% acquisition of two contiguous properties (Joaquin and Cerro Puntudo) totalling 35,G46Ha.
- Joaquin contains a historical Foreign Estimate1 of 16.7Mt at 136gpt silver equivalent (AgEq2) for 73Moz AgEq (68Moz Ag, 64koz Au) in the La Negra and La Morocha deposits.
- Strategically located 60km west of USL’s G1Moz AgEq Cerro Leon resource2 and portfolio, enhancing future development options, with added scale and economics.
- Historical Foreign Estimates exclude adjacent Cerro Puntudo mineral properties which host the along strike extensions of the La Negra and La Morocha deposits.
- USL is planning a comprehensive exploration program on four advanced prospects, aiming to boost current Foreign Estimates and publish a maiden JORC (2012) MRE.
- Historical drill holes that fall outside the current resource:
- La Negra Feeder: 4.5m at 16GGgpt Ag, 22gpt Au from 272m
- La Negra Extension: 3m at 2723gpt Ag, 4.1gpt Au from 54m
- La Morocha Extension: 8m at 226gpt Ag, 0.5gpt Au from 189m
- Cerro Puntudo is host to numerous vein targets (Brunilda, La Esmeralda, Isabella) with high silver gold values at surface that are untested by drilling.
- The transaction includes camp infrastructure and a mining and access agreement valid until 2034.
- Upfront consideration of USD$2m funded from existing cash reserves, with future payments of USD$2m on publication of an economic study supporting a mineral resource at the Joaquin project and USD$8m on commercial production.
Cautionary Statement
(a) The estimates of mineralisation included in this announcement are foreign estimates and are not reported in accordance with the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves (2012 JORC Code) and is a “Foreign Estimate”
(b) A Competent Person has not yet done sufficient work to classify the Foreign Estimate as Mineral Resources or Ore Reserves in accordance with the 2012 JORC Code.
(c) It is uncertain that following evaluation and/or further exploration work that the Foreign Estimates will be able to be reported as mineral resources or ore reserves in accordance with the JORC Code 2012.
Figure 1: Joaquin and Cerro Puntudo project location
The information in this Announcement that relates to foreign estimates of mineralisation has been extracted from information contained in the Company’s ASX announcement of 20 August 2024. USL confirms that it is not in possession of any new information or data relating to the foreign estimates of mineralisation that materially impacts on the reliability of those foreign estimates or USL’s ability to verify the foreign estimates a mineral resources or ore reserves in accordance with Appendix 5A (JORC Code). USL confirms that the supporting information provided in the initial market announcement of 20 August 2024 continues to apply and has not materially changed.
Click here for the full ASX Release
This article includes content from Unico Silver 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.
Eastern Metals Investor Kit
- Corporate info
- Insights
- Growth strategies
- Upcoming projects