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Orroroo Project Update
Norfolk Metals (ASX:NFL) (Norfolk or the Company) is pleased to present the following Orroroo Project update.
- Norfolk engaged Pacific Consultants to build a data base providing for a more model driven approach to further exploration in the expanded tenement package.
- Previously identified gamma anomalies at around 120m depth confirmed reduced sediments (redox environment) developed around this target horizon.
- Structural reinterpretation of the gravity data and phreatic uranium flow model generates new targets.
- Norfolk progressing exploration towards regional approach with focus on broad spaced drilling over possible controlling structures.
Figure 1: Orroroo Project Location Plan
Commenting on Norfolk Metals, Executive Chairman, Ben Phillips, states:
“Norfolk is extremely pleased with the outcomes of Pacific Consultants and our technical team increasing our understanding on the regional prospectivity of the Orroroo Project. The Company expects to conduct a subsequent drilling campaign which must consider all the structurally hosted contributions along with any low cost pre-drilling targeting techniques to be completed prior. We now have additional information to proceed forward with stakeholder engagements and required contractors”
Drill core and drill chips Investigation
Drill core, drill cuttings and muds from holes drilled in the Walloway Basin to the north of Orroroo were recently reviewed at the South Australian (SA) Government core facility in Adelaide.
Figure 2: Spectrometer 153 cps Orroroo 2A reduced sediment margin.
Pacific Consulting was engaged to build a data base providing for a more model driven approach to further exploration across the tenement package. Data incudes drill data from Linc Energy drilling as well as numerous water bores in the district.
A digital data base has been built in Micromine using open file data from the SA Government. A number of water bores and coal exploration holes are located within the Norfolk tenement package. Radiometric logs show a wide spread anomaly in the upper Tertiary at ~ 120m below current surface. The Walloway Coal (lignite) Seam occurs in the lower Tertiary stratigraphy of the basin and is associated with low radiometric anomalism marginal to the lignite.
In borehole Orroroo 2A (Figure 2), the carbonaceous silty clay at ~ 112-114m has an elevated radiometric reading on the margin with oxidized sediments above and below. A clear demonstration that, at least locally, reduced sediments were developed at this target sedimentary horizon and that uranium was deposited on the redox margin. The drill core generally shows large intervals of silt / clayey silt with medium to coarse sand bands now silted up. The current drainage shows a similar and expected pattern in cross section with narrow cobble strewn high energy channels and silty alluvial fans with sandy beds.
The Walloway Basin contains sediment at the base which includes fine-grained sands, clayey sands and clays with minor lignite, of middle to late Eocene age. The overlying sediments include up to 70m of clays with coarse gravel beds, often lenticular. These overlying sediments range in age from mid-Tertiary to Quaternary. Obscuring the Quaternary are older deposits of recent alluvium and outwash material, derived from the surrounding Pre- Cambrian rocks.
While the paleoenvironment has not been reconstructed it can be expected that oxidized groundwater has percolated down gradient into the Walloway Basin carrying uranium which has interacted with either reduced sediments or sediments bearing reduced fluids. The source of the uranium remains uncertain (possibly from the west/northwest), but the coarse (sandy) beds at the target horizon are the clear exploration targets.
Seismic Data
In March 1980, the Department of Mines and Energy South Australia (DME SA) conducted several seismic lines over the Walloway Basin, in particular around the central portion of EL 6552 (Orroroo Project) and the northern portion of EL 6814 (Black Rock Project) (Figure 3).
The purpose of the study was to identify the depth and lithological layers of the Walloway Basin and identify possible structural features that may influence the water intake/flow of the basin.
The results of the seismic survey showed that the Walloway Basin can be divided into different layers based on the different seismic velocities. The layers were then correlated with the lithological units identified in the NFL and Linc Energy drill holes (Figure 4): -
- Quaternary to Recent – Layers 2, 2A and 3
- Upper Tertiary – Layer 3
- Lower Tertiary – Layer 4
- Basement – Layer 5
As confirmed in the drill core and drill chips investigation, Layer 4 (Lower Tertiary unit) consists of interbedded sand, silt and clay which is overlain by Layer 3 (Upper Tertiary), generally thick clay unit. The Lower Tertiary unit predominates and thickens along the deeper troughs of the basin and its sandy nature suggest deposition in a fluviatile environment. The overlying Upper Tertiary unit is a more extensive and continuous unit of grey, brown and black clay, with kaolinite bands indicating deposition in a lacustrine environment.
The general shape of the valley is asymmetrical with western margins steeper than east and bedrock depth up to 350m deep at the observed deepest point on line WB-79-1.
Several sections were constructed from the seismic survey but the two main seismic section lines WB-79-1 and WB-79-2 coincides with the drilling conducted by NFL along the Walloway Creek and Rankin Rd Targets respectively (see ASX announcement: 7 February 2024).
Figure 3: Seismic Survey DME SA March 1980
It was also noted from the seismic study that structurally, the Walloway Basin is fault controlled to the west and the major northwest-southeast fault identified to the east may be a zone of diapiric activity. These faults have also been observed in the interpretation of the regional gravity data.
It is important to note that historical water well drill holes have been included in the seismic sections but no data has been sighted on the public domain database of the DME SA.
Click here for the full ASX Release
This article includes content from Norfolk 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.
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Norfolk Metals
Overview
Norfolk Metals (ASX:NFL) is an ASX-listed exploration company focused on its uranium in South Australia and Argentina. The company’s flagship property is the Orroroo uranium project in South Australia. It also holds a gold-copper project, the Roger River Property in Tasmania. Norfolk Metals is currently focused on advancing its uranium project and evaluating uranium assets for acquisition. In April 2024, the company announced it is acquiring the Las Altares uranium project in Argentina, through an exclusivity agreement with Green Shift Commodities.
Uranium prices have been on an upward trajectory since 2023, with prices rising from less than $50/lb to over $100/lb in 2024. The prices are currently hovering around $90/lb and could increase further, driven by a supply deficit. Kazatomprom, the world's largest uranium miner, announced in February 2024 that it is reducing uranium production. The company said production levels at its operations in Kazakhstan are anticipated to remain 20 percent lower, chiefly attributed to the sulfuric acid shortage prevailing in the country. Cameco, the world’s largest publicly traded uranium supplier, has provided a 2024 production guidance which is also not very bullish.
While the supply remains challenging, the demand continues to ramp up. The surge in uranium demand has been predominantly fueled by heightened utility contracting, a trend that offers robust support and sustainability to elevated price levels. The World Nuclear Association’s Nuclear Fuel Report indicates that global nuclear reactor demands are projected to almost double by 2040, rising from 65,650 tU in 2023 to 130,000 tU in 2040. According to Sprott, utilities have nearly 1.5 billion pounds of uncovered uranium requirements through 2040, compared to current annual production of around 150 Mlbs. Further, substantial underinvestment in new mining projects has exacerbated an already constrained supply side, leading to prolonged strain in the years ahead.
The uranium market appears to remain firmly in an uptrend driven by rising demand and constrained supply. Elevated prices also enhance the prospects for junior miners to progress their projects and potentially secure future supply agreements with utilities.
Norfolk Metals boasts uranium assets in a tier-1 mining jurisdiction of South Australia. The recent maiden drill program at the Orroroo project intersected a uranium-bearing floodplain, boosting confidence in the potential of the project.
Norfolk continues to review complementary projects with plans to expand its uranium project suite. In 2024, the company signed an exclusivity agreement with Green Shift Commodities (TSXV:GCOM) to acquire Las Alteras uranium project in Argentina. Las Alteras is surrounded by non-JORC foreign estimates at URAmerica’s Meseta Central deposit (19.1 Mlbs U308), CNEA’s Cerro Solo deposit (11.49 Mlbs U308), ISO Energy’s Laguna Salada deposit (10.1 Mlbs U308), along with the Cerro Condor and Los Adobes historical uranium mines.
Company Highlights
- Norfolk Metals is an ASX-listed uranium-focused explorer with assets located in South Australia (Orroroo uranium project), Argentina (Las Alteras uranium project) and Tasmania (Roger River gold/copper project).
- The primary focus is on advancing the Orroroo uranium project located in the Walloway Basin in South Australia. Orroroo comprises three granted exploration licenses, which together cover 723 square kilometres. of contiguous tenements. The land holding is divided into three project areas named Orroroo, Johnburgh and Black Rock.
- Orroroo has geological similarities to well-endowed South Australian uranium producers such as Boss Energy’s Honeymoon Uranium project and Heathgate Resources’ Four Mile mine.
- Norfolk completed a maiden drill program at Orroroo which delineated uranium in 10 of the 17 holes with grades reaching as high as 796 ppm. The maiden drill program also identified a uranium-bearing floodplain 50 meters south of the Wongway Creek Target.
- In Argentina, Norfolk has signed an exclusivity agreement with Green Shift Commodities to acquire Las Alteres uranium project, a project surrounded by multiple uranium deposits and historical mines in every direction including the Cerro Solo government owned deposit
- The Roger River Project comprises two granted exploration licenses, which together cover 261 square kilometers, located in Tasmania. The project is prospective for gold and copper.
- Norfolk is evaluating other projects for acquisition, which includes complementary projects to the South Australian uranium project suite.
- Uranium prices are likely to remain firm on the back of supply deficit. Kazakhstan, the world’s largest uranium supplier, has warned of lower production in 2024, while demand continues to remain high as governments around the world embrace nuclear power to reduce reliance on fossil fuels.
Key Projects
Orroroo Uranium Project
The Orroroo uranium project consists of three exploration licenses - EL6552, EL6814, and EL6948 - spanning a total of 723 square kilometers, situated roughly 274 kilometers northwest of Adelaide, South Australia. The large land holding is divided into three project areas named Orroroo, Johnburgh and Black Rock.
Orroroo lies within the Walloway Basin, an underexplored uranium region characterized by sediments of similar age to those found in the nearby Frome Embayment, where Boss Energy’s Honeymoon project is located.
Norfolk Metals completed a two-phase drilling program at Orroroo Project (EL6552), identifying uranium in 10 of 17 holes with grades reaching as high as 796 parts per million (ppm). Phase 2 of the drill program also identified a uranium-bearing floodplain 50 meters south of the Wongway Creek Target. The confirmation of uranium-bearing floodplain deposits upstream of Wongway Creek has strengthened confidence in the paleochannel model. Crucial drill holes, including ORMR015A and ORMR017, have offered valuable insights into floodplain features and the identification of kaolinitic clay marker beds, crucial for unraveling the basin’s geological evolution.
Drill samples from ORMR015A showing the kaolonitic clay marker unit from 121-130 metres and floodplain silt from 130-137 metres.
ORMR015A intersected what seems to be a floodplain dominated by silt, with minor gravel and two elevated gamma anomalies indicating uranium at both the top and bottom of this unit. In ORMR017, there was a heightened gamma response at approximately 132 meters depth, aligning with the top of the floodplain identified in ORMR015A. This suggests that the paleochannel may be situated just meters away from the target. Additionally, the detection of a mustard-colored limonite-rich fluid in certain drilling locations suggests potential uranium sources.
The identification of paleochannels offers geologists precise targets for uranium exploration. By mapping geological characteristics and comprehending past river systems, exploration endeavors can be concentrated on regions with an increased probability of harboring uranium deposits.
The maiden drill program has further substantiated Orroroo as a potential emerging uranium district within the renowned Walloway Basin in South Australia. Norfolk is moving forward on the future planning and approvals for Orroroo with a focus on the uranium-bearing floodplains intersected near the Wongway Creek target.
In 2024, Norfolk will begin operations on exploration permit EL6814, which is adjacent to the north and south of EL6552. The initial activities on EL6814 will be planned based on the findings and analysis from the inaugural drilling program at EL6552.
The company remains optimistic about the potential of the Walloway Basin beyond EL6552 (Orroroo project), particularly in areas such as the northern region (Johnburgh Project) and the southern region (Black Rock Project), where significant portions have yet to undergo geophysical surveys or drilling operations.
Las Alteras Uranium Project
Through an exclusivity agreement with Green Shift Commodities (GCOM) Norfolk has rights to 22 claims totaling 60,396 hectares comprising the Las Alteras uranium project to the west and east of the 11.49M lbs (Reasonably Assured Resource) Cerro Solo uranium deposit.
Las Alteras is surrounded by UrAmerica’s Meseta Central deposit (19.1 Mlbs eU308), CNEA’s Cerre Solo deposit (11.49M lbs U308), and ISO Energy’s Laguna Salada deposit (10.1 Mlbs U308). The project is also close to two historical mines, Cerro Condor and Los Adobes.
Norfolk plans to complete a due diligence on the project and pursue completion of the acquisition of the property from Green Shift Commodities.
Roger River Project
The Roger River Project comprises two granted exploration licenses encompassing a total area of 261 square kilometres. Positioned 410 kilometres northwest of Hobart, Tasmania, the project is deemed prospective for gold and copper.
During 2023, Norfolk continued its exploration program to obtain a better understanding of the copper and gold mineralization to guide the next exploration phase and potential drilling. The exploration work included a soil sampling program. The soil program entailed the collection of new surface samples and the re-analyses of selected historical soil samples over the White Water and A2 prospects which were submitted for Cu analysis.
Fresh surface samples were gathered on a grid measuring 200 by 100 meters around A2, totaling 98 samples. This sampling covered an area of roughly 1.2 kilometers by 1.5 kilometers along the interpreted splay from the Roger River Fault. The findings reveal a persistent copper anomaly surrounding the A4 and A5 prospects, situated along the interpreted fault splay originating from the Roger River Fault.
The historical samples re-analyzed revealed a continuous copper anomaly around the A4 and A5 prospects located along the interpreted fault splay from the Roger River Fault.
Management Team
Ben Phillips – Executive Chairman
Ben Phillips brings over 15 years of experience in commercial negotiations across diverse industries, including oil and gas, resources, medical technology, software-as-a-service and defense. He guides departments spanning from R&D and exploration to production, commercialization, and sales. Previously, Phillips served as a non-executive director at Bronson Group (ASX:BGR) and later at Mandrake Resources (ASX:MAN). In his current role as a corporate executive at Ironside, he focuses on sourcing, structuring, funding and managing requirements for small-cap companies, both private and public. Phillips has been with Ironside Capital since its inception, previously serving at Merchant Corporate Finance.
Leo Pilapil – Non-Executive Technical Director
Leo Pilapil has over 30 years of experience as a geoscientist. Throughout his career, he has held director positions at numerous junior companies across Australia, Africa and Turkey. In these roles, he has been primarily responsible for technical project evaluations, project acquisitions, project management and business development. Pilapil's notable achievements include the discovery of the Harlequin Gold Deposit (1 Moz) under salt lake conditions in Norseman, Western Australia. Additionally, he has played a key role in the extension and discovery of several ore deposits in Australia, Africa and Turkey. Pilapil has served as a geological consultant for numerous companies across the globe, including Aditya Birla in Australia, Alacer Gold Corporation in Turkey, African Uranium in Namibia, and NIKKI Lao in Lao PDR.
Patrick Holywell – Non-Executive Director
Patrick Holywell possesses over 15 years of expertise in accounting, finance and corporate governance, having worked at Deloitte and Patersons (now Canaccord Genuity). He is a chartered accountant and a fellow of the Governance Institute of Australia. Over the past decade, Holywell has primarily focused on director and company secretarial roles within the resources and technology sectors. His recent engagements include positions at De Grey Mining, Si6 Metals, and Pentanet.Top Stories This Week: Gold’s Post-Election Price Drop Explained, Friedland’s ASX Iron Ore IPO
The gold price continued its post-US election correction this week, sinking to nearly US$2,540 per ounce.
Although it recovered to end the period at around US$2,560, the yellow metal hasn't been at these levels for about two months. Market watchers see US dollar strength and higher bond yields weighing on its performance.
The US Dollar Index has moved higher since Donald Trump's victory in the American election, supported by expectations that the president-elect will follow through on enacting tariffs and tightening immigration — these are policies that could boost inflation and in doing so potentially slow the US Federal Reserve's interest rate cuts.
While gold tends to fare better when rates are low, the opposite is true for the dollar.
Yields for the 10 Year Treasury have moved higher since voting day too, although they've seen some bumpiness.
It's also worth noting that the latest US consumer price index (CPI) data came out on Wednesday (November 13). CPI rose 0.2 percent month-on-month and was up 2.6 percent year-on-year. Meanwhile, core CPI, which excludes the more volatile food and energy categories, was up 0.3 percent from September and 3.3 percent from a year ago.
The numbers were in line with forecasts across the board, bolstering expectations that the Fed will reduce rates by another 25 basis points at its December meeting. However, those expectations took a hit on Thursday (November 14), when Fed Chair Jerome Powell said that the economy isn't sending signals that rates need to come down quickly.
"The economy is not sending any signals that we need to be in a hurry to lower rates. The strength we are currently seeing in the economy gives us the ability to approach our decisions carefully," he commented.
What's next for the gold price in this environment? The Investing News Network will be attending the New Orleans Investment Conference next week, and we'll be asking experts like Rick Rule, David Morgan, Lobo Tiggre and more for their thoughts. Please send an email to cmcleod@investingnews.com to let us know what questions you'd like answered.
Bullet briefing — Citigroup cuts copper forecast, Friedland plans iron ore IPO
Citigroup cuts copper forecast
Citigroup (NYSE:C) is cutting its short-term copper price forecast by 11 percent in the wake of the US election.
“Former President Donald Trump’s election for a second term marks a clear turning point in global trade tariff policy. And China’s lack of easing to date has surprised us," the firm said this week in a note.
Citigroup is expecting prices to drop to US$8,500 per metric ton over the next three months, down from its previous call of US$9,500. Citigroup also sees China's weaker-than-expected stimulus measures weighing on the metal.
Although the Asian nation recently announced a debt relief package worth US$1.4 trillion, members of the copper industry don't see it having much impact on demand.
"The latest stimulus is to refinance local government debts, so that’s not going to boost physical (copper) demand much” — Ni Hongyan, Eagle Metal International
Friedland plans ASX iron ore listing
Robert Friedland reportedly plans to list iron ore company Ivanhoe Atlantic on the ASX before June 2025.
Formerly known as High Powered Exploration, Ivanhoe Atlantic's main asset is the Nimba iron ore project in Guinea. However, funds raised by the company will also be used to make acquisitions in the critical minerals sector.
Friedland is currently best known for Ivanhoe Mines (TSX:IVN,OTCQX:IVPAF), whose operations include the Kamoa-Kakula copper complex in the Democratic Republic of Congo, but he is also involved in various other companies and projects.
Want more YouTube content? Check out our expert market commentary playlist, which features interviews with key figures in the resource space. If there's someone you'd like to see us interview, please send an email to cmcleod@investingnews.com.
And 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.
Rua Gold
Investor Insight
Rua Gold offers a compelling investment opportunity driven by its highly promising gold assets in New Zealand’s historic gold-producing regions, and supported by the government’s renewed focus on fast tracking economic growth.
Overview
Rua Gold (TSXV:RUA,OTC:NZAUF,WKN:A4010V,OTCQB:NZAUF) is a gold exploration company focused on two prolific, historic gold-producing regions in New Zealand: Hauraki Goldfield and Reefton Goldfield. Both these regions boast of previous high-grade gold production, with more than 15 million ounces (Moz) produced in the Hauraki district and over 2 Moz in the Reefton Goldfield. New Zealand is a tier 1 mining jurisdiction with highly prospective geology, and a skilled workforce. The new government of New Zealand has committed to promoting economic growth through mining- and business-friendly policies, such as the Fast Track Approval Bill, which proposes quicker approval timelines for a range of projects, including mining.
New Zealand has a rich history of gold production from orogenic deposits (+9 Moz), epithermal sources (+15 Moz), and alluvial deposits (+22 Moz). The country has low sovereign risk with no corruption, making it an attractive destination for mining investment.
The company has launched a fully funded exploration program at its properties. This includes a 2,500-meter diamond drill program focused on the Pactolus prospect at Reefton Goldfield.
Pactolus has returned assays for three of six holes drilled on the system, with hole DD_PAC_035 intersecting 2 meters @ 5.13 grams per ton (g/t) gold. Additional work is required to accurately model this zone's geometry before proceeding with further drilling at this prospect. Consequently, the company anticipates redirecting its focus towards the previously productive areas in Reefton in the near future, which includes the Murray Creek, Crushington, Capleston and Caledonian historic districts. These historic mines collectively produced ~700 koz at 25.2 g/t within a radius of ~20 kms.
The company has applied for a minimum impact access agreement with the New Zealand Department of Conservation for the Glamorgan project. Once granted, the company will commence an exploration program that includes soil sampling, magnetic and resistivity geophysical surveys, and geological mapping.
Rua Gold benefits from a team of professionals boasting extensive expertise in geology and mining. The company’s board of directors is led by Oliver Lennox-King (Fronteer, Roxgold), who has a successful track record developing projects and companies.
Company Highlights
- Rua Gold is a gold exploration company with two highly prospective land packages in New Zealand’s historic gold districts – Hauraki Goldfield and Reefton Goldfield.
- New Zealand is a tier 1 mining jurisdiction boasting highly promising geological formations and a significant history of gold production, with orogenic deposits (+9 Moz), epithermal sources (+15 Moz), and alluvial deposits (+22 Moz).
- The company’s two key assets include the Reefton Goldfield on New Zealand’s South Island and Glamorgan on New Zealand’s North Island.
- The new government is focused on stimulating economic growth, as evidenced by the recent Fast Track Approval Bill, which proposes fast-track approvals for a range of projects, including mining.
- Rua Gold has high-quality orogenic and epithermal gold prospects, boasting historical production grades ranging from 16 to 50 g/t gold.
- Rua Gold is fully permitted and fully financed with significant near-term catalysts. The company has launched an exploration program at its two properties. Drilling is ongoing at the company’s properties in the Reefton district.
- Proposed acquisition of Reefton Resources Pty Limited was approved by the shareholders of Siren Gold (ASX:SNG). Reefton is a 100 percent owned subsidiary of Siren, with tenements located adjacent to the Rua Gold’s suite of properties in New Zealand’s prolific Reefton Goldfield.
- A seasoned board and management team is at the helm of Rua Gold, with extensive regional knowledge and a proven track record of successful discoveries. With full financing and permits in place, the company is well-positioned to capitalize on growth prospects.
Key Projects
Reefton Goldfield
Rua Gold holds six project areas at the Reefton Goldfield – Northern, Capleston, Murray Creek, Ajax, Crushington and Southern. The Reefton district has a rich history of gold production with over 2 Moz of gold recovered at 24.5 g/t. Among the noteworthy findings from recent years of exploration is the greenfield discovery of the Pactolus quartz vein. Sampling and assays conducted thus far have unveiled significant concentrations of high-grade gold in this vein.
Pactolus: Pactolus is a new surface greenfield discovery made by Rua Gold in 2021. Pactolus has returned assays for three of six holes drilled on the system, with hole DD_PAC_035 intersecting 2 meters @ 5.13 g/t gold and hole DD_PAC_036 intersecting 2 meters @ 3.61 g/t gold.
Initial findings and observations validate the southern extension of the Pactolus system by 550 meters, showcasing substantial mineralization at surface. However, accurately determining the plunge and quality of the ore shoots presents a challenge. An additional update is expected upon receipt of results from the remaining drill holes.
Murray Creek prospects: Rua Gold’s systematic exploration has highlighted the potential for the rejuvenation of this district in renewed opportunities around the historic high-grade gold deposits. Rua Gold completed an extensive assessment of the historical mines situated within the company's tenements in the Reefton Goldfield, yielding five targets in the Murray Creek area.
Ongoing drill campaign at the Murray Creek prospects intersected visible gold and confirmed downhole continuity of high-grade gold mineralization.Glamorgan Project
The Glamorgan project comprises over 4,600 hectares in the Hauraki district on New Zealand’s North Island. Hauraki boasts of a substantial presence of high-grade gold and silver mining, with approximately 50 epithermal deposits mined since the 1860s. These deposits have yielded over 15 Moz of gold and 60 Moz of silver. Glamorgan has a 3.8 km zone displaying indications of gold mineralization, backed by soil and rock samples, suggesting the presence of an epithermal gold mineralized system at the property.
Glamorgan is located 2.8 kms north of Oceana Gold’s recent significant discovery at Wharekirauponga. The company has applied for a minimum impact access agreement with the New Zealand Department of Conservation. Once granted, the company will commence an exploration program that includes soil sampling, magnetic and resistivity geophysical surveys, and geological mapping.
After receiving a minimum impact access agreement (MIA) from the Department of Conservation for the Glamorgan project, the company has mobilized an exploration team that has made progress in collecting 2,000 of the planned 3,000 soil sample program; completing the first full phase of UAV drone magnetic geophysical surveying; and commencing ground geological mapping.
Based on initial surface soil geochemistry, interpreted geophysical structures, and geological mapping, there is preliminary evidence that the Glamorgan project has the hallmarks of a significant epithermal gold system, with surface features similar to the adjacent WKP gold deposit. Rua Gold will design a drill program and apply for a full access agreement by the end of the year to commence drilling.
Management Team
Oliver Lennox-King – Non-executive Chairman
Oliver Lennox-King boasts a distinguished and extensive career within the mineral resource sector, encompassing a broad experience in financing, research and marketing. Since 1992, he has occupied senior executive and board roles in various junior exploration and mining enterprises. Most recently, Lennox-King was the chairman of Roxgold from 2012 until July 2021 when it was sold for $1.2 billion to Fortuna. In addition to Roxgold, he also served as chairman of other notable firms, including Pangea Goldfields, Aurora Uranium and Fronteer Gold.
Robert Eckford – CEO and Director
Robert Eckford is a certified professional accountant with significant expertise in mergers and acquisitions, accounting, finance and commercial management within the mining sector. Most recently he was co-founder and head of finance for Aris Mining, and prior to that, has worked with international mining companies, including Barrick Gold, Yamana Gold and Leagold Mining.
Simon Henderson – COO and Director
Simon Henderson is an exploration specialist and has over 40 years of experience, most of which is in New Zealand. He was part of the discovery team for several significant gold finds in New Zealand, such as Wharekirauponga. He maintains robust connections with key local stakeholders and the country's permitting authorities.
Zeenat Lokhandwala – CFO and Corporate Secretary
Zeenat Lokhandwala brings over a decade of expertise in mergers and acquisitions, finance, accounting and taxation. She is the former CFO of Great Bear Royalties and director of finance at Great Bear Resources.
Brian Rodan - Director
Brian Rodan has more than 43 years of experience who is currently serving as Fellow of the Australian Institute of Mining and Metallurgy. Rodan is the founding director of Dacian Gold (ASX:DCN)
Mario Vetro - Director
Mario Vetro has extensive experience structuring and providing guidance to resource companies. He is the co-founder of K92 Mining and the proprietor of Commodity Partners.
Paul Criddle - Director
Paul Criddle has extensive experience constructing and overseeing gold mines in Australia and West Africa. He was formerly a chief operating officer for West Africa at Fortuna and also served as the COO for Azimuth and Perseus. He was previously the managing director at Matador Mining.
Tyron Breytenbach – Director
Tyron Breytenbach is a geologist with operational and capital markets experience. He is currently the CEO of Lithium Africa Resources. Previously, he was senior vice-president of Capital Markets at Aris Mining and served as managing director at Cormark Securities. Before transitioning to capital markets, Breytenbach spent a decade in the mining sector as a geologist, focusing on orogenic and epithermal gold deposits and specializing in resource estimation. He earned his BSc (Honours) degree from Rand Afrikaans University in South Africa and is a designated professional geologist in Ontario.
Takeover Bid for Mako Gold Limited - Lodgment of Supplementary Bidder’s Statement
Aurum Resources Limited (ASX: AUE) (Aurum) refers to its off-market takeover bid for all of the fully paid ordinary shares and certain options in Mako Gold Limited (ASX: MKG) (Mako), pursuant to the bidder’s statement dated 30 October 2024 (Offers).
Please find attached a supplementary bidder’s statement dated 15 November 2024 with respect to the Offers (First Supplementary Bidder’s Statement).
The First Supplementary Bidder’s Statement was lodged with ASIC earlier today and will be served on Mako.
This ASX Announcement was authorised for release by the Company Secretary of Aurum.
Click here for the full ASX Release
This article includes content from Aurum Resources 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.
Management’s Discussion and Analysis of Financial Results
For the three months (third quarter) and nine months ended September 30, 2024
Sarama Resources Ltd. (“Sarama” or the “Company”) (ASX:SRR, TSX- V:SWA) is pleased to present the following Management’s Discussion and Analysis (“MD&A”) is intended to supplement the interim consolidated financial statements of Sarama Resources Ltd. (the “Company” or “Sarama”) and its subsidiaries for the three and nine months ended September 30, 2024.
The interim consolidated financial statements for the three and nine months ended September 30, 2024 have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).
This MD&A is current as at November 14, 2024.
Additional information relating to the Company is available on SEDAR+ at www.sedarplus.ca under the Company’s profile.
OVERVIEW
Sarama is a Canadian-incorporated mineral exploration and development company whose principal business objective is to explore for and develop mineral deposits in prospective jurisdictions as opportunities may present.
The Company was incorporated on April 8, 2010 under the Business Corporations Act (British Columbia). The Company’s primary office is located in Perth, Western Australia. The Company’s common shares are listed on the TSX Venture Exchange (“TSXV”) and Chess Depositary Interests (“CDIs”) on the Australian Securities Exchange (“ASX”) under the codes ‘SWA’ and ‘SRR’ respectively.
The Company built and advanced substantial exploration landholdings in prospective and underexplored areas in south-west Burkina Faso, West Africa and has interests in two projects located principally in the Houndé Belt. Separate to its interests in Burkina Faso, the Company is in the process of acquiring a new gold exploration project in Australia and continues to assess opportunities that align with it’s objective of exploring for and developing mineral deposits in prospective jurisdictions.
The Sanutura Project (the “Project”) is principally located within the prolific Houndé Greenstone Belt in south- west Burkina Faso and was the exploration and development focus of the Company. The Project hosts the Bondi Deposit which has a mineral resource of 0.5Moz gold (Inferred)(3). The Project also formerly hosted the Tankoro Deposit (Mineral Resource of 0.6Moz Au (Indicated) plus 1.9Moz Au (Inferred)(2) until August 2023, when the Company was notified (“Notification”) by the Ministry of Energy, Mines and Quarries of Burkina Faso (the “Government”) that its rights to the Tankoro 2 Exploration Permit (the “Permit”), which hosts the Tankoro Deposit, had been withdrawn in a manner the Company considers to be unlawful (refer news release dated September 6, 2023). The Notification stated that the Company’s application for the Permit was unsuccessful. This is inconsistent with, and contradictory to, formal correspondence from the Government. The Company vigorously disagrees with the illegal withdrawal of its rights. The Tankoro Deposit formed the central component of the Project for which the Company was in the final stages of completing a Preliminary Economic Assessment (“PEA”) to advance the Project toward development.
The Company formally notified the Government of its Intent to Submit Claims to Arbitration (refer news release dated November 30, 2023) under the Agreement between the Government of Canada and the Government of Burkina Faso for the Promotion and Protection of Investments (the “BIT”).
Prior to the illegal withdrawal of the Permit, the Tankoro and Bondi Deposits presented a mine development opportunity featuring a long-life project which the Company believed would have generated very robust and attractive financial returns and could have been established and paid for using the significant oxide mineral resource base. In 2023, Sarama commenced and substantially completed development study work on the Project which was subsequently suspended following receipt of the Notification. See further details on the status of the Permit below under the heading “Status of Mineral Tenure – Tankoro 2 Exploration Permit”.
Click here to view the Q3 2024 Interim Financial Statements
Click here for the full ASX Release
This article includes content from Sarama Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Ascot Resources Seeks TSX Exemption for Financing, Looks to Restart BC Gold Mines
Canadian mining firm Ascot Resources (TSX:AOT,OTCQX:AOTVF) is pressing forward with a financing strategy aimed at getting back on course at its Premier Northern Lights and Big Missouri mines.
The company said on Monday (November 11) that it has applied to the Toronto Stock Exchange (TSX) for a financial hardship exemption. This would allow it to secure financing under conditions that typically require shareholder approval.
With a combined target of approximately C$52 million, Ascot said it is looking to advance the development of Premier Northern Lights, restart the mill at the site and restart the Big Missouri mine.
Ascot poured its first gold at BC-based Premier Northern Lights in April, and said at the time that the asset was expected to start commercial production in the third quarter of this year. However, at the beginning of September, the company suspended operations, saying that it needed to focus on mine development in order to ensure sufficient ore.
"After careful consideration, the Company has decided that, to enable sufficient mine development, it will suspend operations. Ascot will focus on mine development until the combination of the Big Missouri and PNL mines can sustainably deliver enough ore feed to profitably run the operation.
The Company’s intention is to seek funding to complete the necessary mine development."
Ascot said in this week's press release that its financing is structured in two main components: an equity financing through a brokered private placement, and debt financing secured with its existing creditors.
For the equity financing, Ascot has set up an agreement with a syndicate led by Desjardins Capital Markets and BMO Capital Markets. These parties will act as agents for a brokered private placement of common shares.
Ascot is aiming to raise between C$25 million and C$42 million by offering shares at C$0.16 each. Closing is contingent on multiple conditions, including the completion of definitive agreements for the debt financing and TSX approval.
On the debt side, Ascot has entered into non-binding term sheets with Sprott Private Resource Streaming and Royalty (B), as well as Nebari Gold Fund 1, Nebari Natural Resources Credit Fund II and Nebari Collateral Agent.
Sprott has agreed to modify an earlier agreement and provide US$7.5 million to Ascot in advance; the deal also increases the stream percentage Sprott has on Ascot’s gold and silver production. Ascot has the option to buy back this additional share for US$9.7 million by December 31, 2026, while Sprott can trigger a buyback starting on January 1, 2027.
When it comes to the Nebari entities, they have given Ascot more lenient debt repayment terms, although Ascot has agreed to various points, including a higher interest rate on its existing cost-overrun credit agreement. Nebari will also receive a US$1 million alignment fee from Ascot, to be paid in common shares of the company.
Ascot has emphasized that these financing arrangements remain subject to the completion of definitive agreements, as well as approval from the TSX for a financial hardship exemption. The company has also indicated that further changes could arise as it works to finalize the necessary approvals and terms with its creditors.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
Recent Drilling Results and Ongoing Technical Review Highlights Significant Depth S Strike Potential at Yundamindra
Arika Resources Limited (ASX: ARI) (“Arika” or “Company”) is pleased to announce that it has commenced a review C synthesis of all geoscientific datasets over it’s Yundamindra Gold Project (“Yundamindra”) situated 65km southwest of Laverton in the world class eastern goldfields mining district of Western Australia.
KEY HIGHLIGHTS
- Data filtering confirms much of the Yundamindra Project area remains unexplored despite the discovery of shallow high-grade gold mineralization at numerous prospects including Pennyweight Point C Landed at Last.
- ~75% of historical holes were restricted to the weathered zone and drill depths of less than 50m.
- ~G7% of historical holes were restricted to drill depths of less than 80m.
- A total of 34 holes only, including recent drilling by Arika, have been drilled beyond 100m depth and only 4 holes have been drilled deeper than 200m.
- The entire Western Corridor (Landed at Last) remains unexplored beneath 80m depth over a strike length in excess of 10km’s.
- The review highlights clear depth C strike potential across the greater Yundamindra Project area including Pennyweight Point C Landed at Last where Arika’s recent maiden drilling campaigns reported a series of exceptional and extensional results including1,2,3,4:
- Pennyweight Point
- 14m @ 15.48 g/t Au from 46m (YMRC077);
- 33m @ 3.35 g/t Au from 22m (YMRC071);
- 33m @ 2.63 g/t Au from 85m (YMRC063);
- 30m @ 3.86 g/t Au from 8Gm (YMRC06G)
- 30m @ 2.36 g/t Au from 64m (YMRC060)
- Landed at Last
- 30m @ 2.26 g/t Au from 26m (YMRC050)
- 40m @ 1.22 g/t Au from 30m (YMRC048);
- 26m @ 1.46 g/t Au from 22m (YMRC046);
- Pennyweight Point
- A review of all geophysical and geochemical data is in progress to guide ongoing targeting.
- Follow-up drilling at the Yundamindra Project, commencing at Pennyweight Point C Landed at Last, is on schedule to re-start next week.
The work has revealed that the vast majority of historical holes, which were completed in the 1980’s- 1990’s, were restricted to the near surface weathered zone and drill depths of less than 80m.
Arika’s Managing Director Justin Barton said:
“Having completed a highly successful maiden drilling program on three prospects at Yundamindra, that delivered outstanding results, we are excited to provide an update of our review and analysis of all historical data and our recent drilling results. Despite the project appearing to have seen extensive drilling, mainly in the 80s and 30s, analysis shows that ~37% of all historical holes were restricted to the weathered zone and drill depths of less than 80m, where drilling was essentially blade refusal (RAB/ aircore) targeting shallow high-grade oxide resources.
This presents an exciting opportunity for Arika as the mineralisation essentially remains unexplored at depth and along strike, providing a great opportunity for a significant further gold discovery outside of the shallow oxide as we chase the source of the mineralisation in the underlying bedrock and along strike.
As we continue to review all geological and geochemical data, we are also eager to recommence drilling, anticipated to re-start next week, as we begin to test the extensions to the Pennyweight Point and Landed at Last prospects”.
Review of results and historical datasets at Yundamindra
Arika’s recently completed drilling programs at Yundamindra, the first in over 10 years at the project, consisted of 77 reverse circulation (RC) drillholes (YMRC001-YMRC077) for a total metreage of approximately 6,000m5,6.
The primary objectives of this phase were to validate historical results and to test for bedrock hosted gold mineralisation beneath the shallow historical occurrences.
The objectives have been achieved, with each campaign delivering spectacular results, firmly establishing the potential for Yundamindra to host a significant gold deposit.
Results for all of the drilling completed to date were reported in the Company’s ASX announcements:
- “Maiden Yundamindra Program Delivers Excellent Gold Results” dated 15 July 2024
- “More Impressive Gold Intersections Returned at Yundamindra” dated 22 July 2024
- “Exceptional 30m @ 3.86 g/t Au Intercept at Yundamindra” dated 20 September 2024
- “Pennyweight Point Delivers More Thick High Grade Hits” dated 26 September 2024
- “Exceptional Gold Results from Pennyweight Point Drilling” dated 23 October 2024, and
- “More Outstanding Gold Intercepts Grow Scale at Yundamindra” dated 06 November 2024
An analysis of our recent drilling results, in conjunctions with a review of all historical datasets has revealed that despite the known prospects at Yundamindra appearing to have been extensively drilled (Figure 1 below), further interrogation of the data reveals that ~97% of all drilling has been limited to weathered zones and depths of less than 80 metres (Figure 2).
Click here for the full ASX Release
This article includes content from Arika Resources 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.
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