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Anax Metals Limited (ASX: ANX) (Anax or the Company) and Artemis Resources Ltd (ASX:ARV, Artemis) are pleased to announce that they have signed a non-binding and non-exclusive Memorandum of Understanding (MoU) which sets out the terms on which Anax and Artemis agree to jointly assess the potential for processing the copper content of Artemis’open-pittable Greater Carlow resource at the fully-permitted Whim Creek Processing hub (Whim Creek). In addition, the parties also agree to jointly assess the potential for Artemis to explore for gold mineralisation on the Anax Project tenure.
- Artemis Resources Ltd (ARV) and Anax Metals Ltd (ANX) sign Memorandum of Understanding (MoU) to assess potential to treat Carlow Castle (64,000 T Cu Inferred Mineral Resource Estimate) and other suitable ARV copper assets at Whim Creek processing hub.
- The Parties also agree to jointly assess the potential for Artemis to explore for gold mineralisation on the Anax Project tenure.
- The Pilbara Alliance and Processing Hub continue to gather momentum with Carlow Castle to be assessed in addition to Develop Global’s (DVP), Sulphur Springs Oxide and GreenTech Metals (GRE), Whundo project as potential satellite ore sources.
- Fully-permitted Whim Creek processing assets could provide near-term processing option for Artemis’ open pittable Carlow Castle deposit.
Anax’s Managing Director, Geoff Laing, commented:“We are extremely pleased to be working with Artemis on potential copper/gold production via the planned Whim Creek hub and to advance gold exploration opportunities at the project. Our region is prolific with copper and gold potential, and we look forward to applying the key strengths of our respective teams to delivering positive outcomes via the production hub and an expanded gold exploration initiative at Whim Creek.”
Artemis Executive Director, George Ventouras, commented:"We are thrilled to collaborate with Anax Metals on the Pilbara copper alliance via this MoU and expand our own potential for gold exploration. The West Pilbara region of Western Australia is an exciting jurisdiction to be operating in and this initiative allows each company to focus on its strengths and to deliver results for all stakeholders.”
The proposed Whim Creek Project (80% owned by Anax and 20% owned by Develop Global Ltd) will consist of a new 400,000 tonnes per annum concentrator, and a refurbished heap leach facility capable of treating oxide, transitional and supergene ore that is supported by robust project economics. 1, 2 & 3 By fully utilising its processing capacity, the Whim Creek hub could become a substantial Australian copper producer.
Whim Creek is located 115km southwest of Port Hedland in the West Pilbara region of Western Australia, and 80km east of the Artemis Carlow Castle deposit which is located 25 km east of Karratha (Figure 1).
Figure 1: Location of the Whim Creek and Carlow Castle Projects (Refer Appendix A)
Under the agreement, each party will contribute resources and information to the joint assessment that will focus on technical studies and regulatory approvals at Carlow Castle. The joint assessment will assist the Parties in developing terms for a legally binding agreement that allows for Artemis copper assets to be processed at Whim Creek. Transaction options being considered include (without limitation) an outright asset sale/purchase agreement, joint venture or joint mining and funding agreements.
The parties also agree to jointly assess the potential for Artemis to explore for gold mineralisation on the Whim Creek Project tenure. Artemis will continue to progress gold and lithium exploration at its 100%-owned and JV Pilbara tenements.
The MoU is for a term of 12-months and either party is permitted to terminate the MoU by providing 30-days’ written notice.
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This article includes content from Anax Metals Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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Anax Metals Limited
Investor Insight
Anax Metals is an ASX-listed exploration company looking to develop its copper assets in the Pilbara Region of Australia. It has important joint ventures and partnerships that can facilitate the execution of a strategic processing hub to offer a compelling investor value proposition.
Overview
Anax Metals (ASX:ANX) is a project developer that is on track to begin producing copper and zinc concentrates from its flagship Whim Creek project located in the Pilbara region of Western Australia. The project is 80 percent owned by Anax, with JV partner Develop Global (Develop) owning the remaining 20 percent. The Whim Creek DFS (and leaching study) have demonstrated the opportunity for an eight-year mining operation producing copper concentrates, cathodes and valuable byproducts. The operation will generate $410 million in cash flow and deliver an NPV of $270 million with a development capex of $71 million.
The company believes its growth potential lies both in expanding the mineral resources across the project’s four deposits and a consolidation strategy that includes a processing hub with a concentrator and heap leach at Whim Creek. Benefits from the consolidation include delivering economies of scale with processing flexibility to treat ores from regional orebodies. The permitted infrastructure is ideally located and suited to becoming the Pilbara-processing hub.,
Anax Metals and Develop have commenced a scoping study to evaluate the potential for treating high-grade oxide/transitional ores from Develop’s wholly owned Sulphur Springs project on the Whim Creek heap.
During the second quarter of 2024, Anax Metals and GreenTech Metals announced they had signed a non-binding and non-exclusive memorandum of understanding to assess the potential to treat mined material from GreenTech’s base metal assets, with a focus on the open-pittable Whundo deposit.
Anax Metals also signed a non-binding and non-exclusive memorandum of understanding (MoU) with Artemis Resources (ASX:ARV) to jointly assess the potential for processing the copper content of Artemis’ open-pittable Greater Carlow resource at the fully-permitted Whim Creek Processing hub. Anax and Artemis also agree to evaluate the potential for Artemis to explore for gold mineralisation on the Anax project tenure.
Whim Creek Pit
Since acquiring the project in 2020, Anax Metals has increased its contained metal resource inventory by over 57 percent. At the end of the second quarter of 2024, Anax Metals signed a contract with drilling company Topdrill for up to 1,700 metres of diamond drilling. Diamond drill rigs have been mobilized at site with the primary goal of testing the down-plunge extensions of the high-grade copper zones at the Evelyn deposit. Previous drilling intersected 13 m @ 4.46 percent copper, 3.10 percent zinc, 45 g/t silver and 1.61 g/t gold from 204 m. Evelyn remains open down plunge with lots of expansion potential.
Company Highlights
- Focus remains on delivering near-term copper production, within the next 18 to 24 months, at the Whim Creek copper-zinc project, which will generate in excess of $400 million in free cash flow over an eight-year mine life.
- The company’s growth strategy includes delivering both resource growth and consolidation of copper assets in the Pilbara region through the development of a central processing hub.
- Since completing the DFS last year, Anax Metals has been considering the potential to expand the production capacity of Whim Creek infrastructure beyond 20 kt of copper equivalent per year.
- Capital requirements are anticipated to be low as Anax Metals plans to utilise substantial existing infrastructure and implement preconcentration technology to reduce process capacity requirements.
- The company is currently working with key partners, including Develop Global (ASX:DVP), Greentech Metals (ASX:GRE), and several metal trading groups.
Whim Creek Copper Zinc Project
Whim Creek is located 120 km from both Port Headland and Karratha on the NW Coastal Highway in the Pilbara region of Western Australia. The project has a long history of copper production with existing infrastructure that includes dams, haul roads, offices, workshops and a dedicated gas spur line to site. The project is currently being developed as a joint venture (80/20) between Anax Metals and Develop Global. The project has four main deposits, namely Whim Creek, Mons Cupri, Salt Creek and Evelyn, with structurally controlled, volcanic-hosted massive sulphide style copper-zinc-lead mineralization.
Production – Concentrator and Heap Leach
Since completing the definitive feasibility study in 2023, Anax has promoted Whim Creek as a regional processing hub, with potential for an expanded production capacity in excess of 20 kt copper equivalent. Highlights of the technical report include FCF generation of $410 million over an eight-year mine life. Processing would be predominantly through the planned concentrator. Heap leaching is anticipated to begin in the second year of production.
A processing hub with sorting, concentrator and heap leach facilities
The company believes the project will also provide a processing solution for surrounding projects located within trucking distance of Anax’s processing facility. Longer term, Anax plans to establish a Pilbara Base Metal Alliance to facilitate collaboration with other base metal projects in the region.
Exploration
The project exploration tenure is located in the highly prospective Archean granite-greenstones of the Pilbara region, encompassing the width of the Whim Creek Greenstone Belt. Near mine extensions to known copper-zinc-lead VMS resources remain underexplored with potential at Mons Cupri South for the discovery of a new intact Mons Cupri-sized deposit. VMS-style alteration and mineralisation have been intersected over 1km. The two satellite deposits at Salt Creek and Evelyn have excellent down plunge and strike potential for blind massive sulphide shoots and drilling is under way at Evelyn.
Management Team
Phillip Jackson - Chairman
A barrister and solicitor with significant legal and international corporate experience, Phillip Jackson specialises in commercial and contract law, mining and energy law and corporate governance. He has been a director and chairman of a number of ASX and AIM listed minerals companies.
Geoff Laing - Managing Director
Geoff Laing is a chemical engineer with 30 years in mining and project development. He has been involved in the exploration and junior mining sector for the last 15 years, taking on corporate and advisory roles. He was a key player in Exco Resources’ divestment of a substantial copper asset for $175 million to Xstrata Copper, and as managing director, he delivered the successful takeover of the company by WH Sol Pattinson.
Peter Cordin - Non-executive Director
Peter Cordin is a civil engineer with over 45 years' global experience in mining and exploration, both at operational and senior management levels. He has direct experience in the construction and management of diamond and gold operations in Australia, Fenno-Scandinavia and Indonesia.
Phil Warren - Non-executive Director
Phil Warren is a chartered accountant with over 25 years’ experience in board governance, corporate advisory and capital raising advice. Warren has spent a number of years working overseas for major international investment banks. He is currently a non-executive director of ASX listed companies, including Family Zone Cyber Safety, Narryer Metals, Killi Resource and Rent.com.au. He was a founding director of Cassini Resources, which was subsequently acquired by Oz Minerals.
Jenine Owen - Chief Financial Officer
Jenine Owen joined Anax in 2020, where she is responsible for corporate risk management, financial management and financial reporting. She is a chartered accountant with extensive finance and commercial experience, including several CFO roles in ASX listed entities. Having started her career with Deloitte (Zimbabwe) in the external assurance division, she moved to London in 1999 where she held various finance and governance roles before settling in Australia in 2008. Prior to joining Anax, Owen was CFO at Predictive Discovery (ASX:PDI).
Red Metal Resources: Advancing High-grade Copper Assets in Chile’s Coast Cordillera Belt
With assets located in a historic copper mining district in Chile that boasts high-grade mineralization and low-cost operations, Red Metal Resources (CSE:RMES) is well-positioned to benefit from Chile’s globally significant copper sector.
The company holds 3,278 hectares across 21 secure mining claims within the Carrizal Alto mining district in the prolific Coastal Cordillera. The Carrizal property comprises two projects - Farellon and Perth - located in an area with a rich copper and gold production history.
The Carrizal Alto district provides a favorable geographic position located at a low elevation of around 500 meters above sea level, reducing the logistical challenges often associated with exploration in higher-altitude regions. The district is also well-connected by infrastructure, including highways and proximity to major urban centers. Red Metal Resources' property is situated just 150 kilometers south of Copiapó, 25 kilometers from the coast, and only 20 kilometers west of the Pan-American Highway. This close access to infrastructure allows for easier transportation of equipment and supplies, as well as streamlined access to labor and other resources.
Company Highlights
- Red Metal Resources holds 3,278 hectares across 21 secure mining claims within the Carrizal Alto mining district in the prolific Coastal Cordillera.
- The company’s Carrizal property comprises two projects - Farellon and Perth - located in an area with a rich history of copper and gold production.
- The Farellon project has over 9,000 metres of drilling, identifying 1.5 kilometres of mineralized strike length with potential for an additional 3.5 kilometres.
- In 2022, a high-grade surface sample from Farellon returned 5.77 percent copper, 1.55 percent cobalt, and 0.11 g/t gold.
- Management and insiders control approximately 35 percent of the company’s shares, aligning their interests with investors.
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Los Andes Copper
Investor Insight
As demand for copper continues to rise, driven by global electrification trends, Los Andes Copper is well-placed to leverage its significant copper position in Chile, driven at the helm by a group of highly experienced technical and business leaders.
Overview
The electrification transition is already in motion and driving demand for copper, an essential metal for manufacturing emerging technologies. Copper is already found in electronics worldwide, and as clean energy technologies aim to replace fossil fuels, demand will only increase — it's projected that copper demand will likely reach 50 million metric tons by 2035. A separate analysis estimates the world copper deficit may hit more than 8.5 metric tons by 2030.
Growing copper demand has put the spotlight on Chile which hosts some of the world’s largest copper deposits. It is currently the top copper producer in the world, producing more than twice the volume of its closest competitor, Peru. The country is a stable, mining-friendly jurisdiction that has already attracted prolific mining companies.
Los Andes Copper (TSXV:LA,OTCQX:LSANF) is a Vancouver-based mining company focusing on developing its 100 percent owned, Vizcachitas copper-molybdenum porphyry project in Chile. Vizcachitas is one of the largest advanced copper projects not owned by a major mining company and has the potential to become a world-class mine. An experienced management team with decades of varied experience in the natural resources industry provides confidence in the company’s ability to reach its goals.
The company filed a positive pre-feasibility study in 2023 indicating US$2.78 billion after-tax net present value (NPV) using an 8 percent discount rate and an internal rate of return (IRR) of 24.2 percent at US$ 3.68/lb copper, US$12.90/lb molybdenum and US$21.79/oz silver, with an estimated initial capital cost of US$2.44 billion. The PFS also highlighted a construction period of 3.25 years and a payback period of 2.5 years from initial production.
The Vizcachitas project is surrounded by mining majors
Los Andes works closely with the local community to support the development of local businesses and social organizations. The company has joined the Association of Small Miners of Putaendo and has established several programs to support social organizations, local technical high schools and female entrepreneurs. Los Andes is also environmentally aware and strives to maintain an excellent ESG rating.
The company’s management team is experienced in the natural resources industry, including experts in geology, community affairs, and corporate finance.
Company Highlights
- Los Andes Copper is a Vancouver-based mining company focused on developing its world-class Vizcachitas copper project in Chile.
- To support the project, the company has received a combined US$14 million in investments from Queen’s Road Capital and US$ 20 million from Ecora Resources.
- The Vizcachitas project has tremendous blue-sky potential and is the largest advanced copper project in the Americas owned by a junior miner.
- The company released the results of its pre-feasibility study (PFS) in 2023 with a US$2.8 billion post-tax NPV8 and 24 percent IRR at US$3.68 copper.
- The company strives to maintain an excellent ESG rating and works closely to support the local community and minimize the project’s environmental impact.
- An experienced management team leads Los Andes Copper with a range of experience throughout the mining industry.
Key Project
Vizcachitas Copper Project
https://investingnews.com/stocks/tsxv-la/los-andes-copper/
The 100-percent-owned Chilean Vizcachitas copper project is one of the largest advanced copper deposits in the Americas and the largest deposit owned by a junior miner. The project is located in the Rio Rocin Valley, roughly 150 kilometers northeast of Santiago.
Project Highlights:
- Strong Existing Infrastructure: The project is accessed by a 124-kilometer paved highway, a nearby railway and shipping ports. Due to the presence of existing copper mines, smelting facilities are accessible by railway. Additionally, there are multiple large power substations near the project.Completed PFS: 2023 Pre-Feasibility Study results indicated:
- US$2.78 billion after-tax NPV using an 8 percent discount rate and an IRR of 24.2 percent at US$ 3.68/lb copper, US$12.90/lb molybdenum, and US$21.79/oz silver, with an estimated initial capital cost of US$2.44 billion.
- A construction period of 3.25 years and a payback period of 2.5 years from initial production.
- A 16-percent increase in measured and indicated resources from the preliminary economic assessment dated June 13, 2019, to 14.8 billion pounds (lbs) copper equivalent grade (CuEq).
- measured resources of 2.61 billion lbs copper, 84 million lbs molybdenum, and 11 million ounces (Moz) silver;
- indicated resources of 10.42 billion lbs of copper, 442 million lbs of molybdenum, and 43 Moz of silver;
- and increase inferred resources by 130 percent to 15.4 billion lbs CuEq (13.75 billion lbs copper, 495 million lbs molybdenum, 55 Moz silver).
- Dedicated to a strong ESG rating: The PFS focused on utilizing the latest sustainable mining methods which resulted in a 50 percent reduction in water consumption, and a 25 percent reduction in energy use and confined the project to one valley, reducing the project footprint. The company has also committed to using desalinated water, ensuring a sustainable water supply. Additionally, the company works closely with local communities to improve the knowledge and understanding of the future Vizcachitas Project and of the multiple opportunities that a sustainable mining project like Vizcachitas will bring to the community.
- Royalty Agreement with Ecora Resources: Los Andes closed a royalty agreement with Ecora Resources, a leading royalty and streaming company focused on investing in future-facing commodities. The agreement includes a $20 million cash consideration paid to Los Andes in return for royalty payments equal to 0.25 percent net smelter return royalty on minerals sold on open pit operations and 0.125 percent NSR on underground operations.
- Permit to Restart Drilling: The Second Environmental Court in Chile ruled that Los Andes has complied with all the conditions imposed on July 20, 2022 and is now authorized to restart drilling.
Management Team
Santiago Montt - CEO
With 11 years of experience in the mining sector, Santiago Montt has a law degree from the University of Chile, a J.S.D. law degree (PhD) from Yale University, and a Master's in Public Policy from Princeton University. He has worked for BHP from 2011 to 2021 in various roles: vice-president of corporate affairs for the Americas, VP of ligation (Global), VP of legal Brazil, and VP of legal copper. He is an experienced professional in the areas of stakeholder management, risk management, crisis management, project management and commercial and legal affairs
Antony Amberg - Chief Geologist
Anthony Amber is a chartered geologist with 32 years of diverse experience working in Asia, Africa, and South America. Amberg is a qualified person under NI 43-101. He has managed various exploration projects ranging from grassroots through to JORC-compliant feasibility studies. In 2001, he returned to Chile where he started a geological consulting firm specializing in project evaluation and NI 43-101 technical reports. He began his career in 1986 working with Anglo American in South Africa before moving on to work for the likes of Severin-Southern Sphere, Bema Gold, Rio Tinto and Kazakhstan Minerals Corporation.
Ignacio Melero - Director of Corporate Affairs and Sustainability
Ignacio Melero is a lawyer with a degree from Pontificia Universidad Católica de Chile with vast experience in corporate and community affairs. Before Los Andes, Ignacio was responsible for community affairs at CMPC, having managed community and stakeholder affairs for a number of its pulp and forestry divisions throughout the country. Ignacio has worked for the Government of Chile, in the Ministry General Secretariat of the Presidency. He was responsible for the inter-ministerial coordination of the ChileAtiende project, a multi-service network linking communities, regional governments and public services.
Gonzalo Saldias - Geologist Consultant
Gonzalo Saldias is a geologist with a degree from the Universidad Católica del Norte, Chile, with more than 35 years of experience working within Chile and internationally. He worked for Antofagasta Minerals from 2007 to 2015, and for Placer Dome Latin America for ten years. He also worked for Codelco as head of exploration geology for the El Salvador Division.
Harry Nijjar - Chief Financial Officer
Harry Nijjar holds a CPA CMA designation from the Chartered Professional Accountants of British Columbia and a Bachelor of Commerce from the University of British Columbia. He is a managing director of Malaspina Consultants. Nijjar has been working with public and private companies for the past 10 years in various roles. He is also currently the CFO of Darien Business Development and Clarmin Explorations.
Manuel Matta - Senior Mining and Project Consultant
Manuel Matta is a mining engineer from the University of Chile, with more than 30 years of experience in operations, planning and projects. He worked for Falconbridge and Xstrata as vice-president of projects and development where he led the expansion of the Collahuasi mine. He was also the general manager of Altonorte Smelter in Chile. Matta also worked for Barrick Gold in Chile and the Dominican Republic and was the general manager of Las Cenizas copper mines in Chile.
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