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Successful completion of Retail Entitlement Offer
Highlights:
- The Retail component of the Entitlement Offer (Retail Entitlement Offer) closed on 12 June 2024, with approximately $1.3m in successful applications received.
- The total unallocated shortfall remaining from the Entitlement Offer (Unallocated Shortfall) is approximately $6.4m. The Unallocated Shortfall is fully underwritten by Canaccord Genuity (Australia) Limited (Canaccord) and Morgans Corporate Limited (Morgans) (the Underwriters).
The Retail Entitlement Offer closed at 5.00pm (AEST) on 12 June 2024. The Retail Entitlement Offer was on the same terms as the Institutional Entitlement Offer, which was an offer of new fully paid ordinary shares (Shares) in the capital of the Company on a 1 for 2 basis at an issue price of $0.056 per Share.
Summary of the Entitlement Offer Results
Results of the Retail Entitlement Offer are as follows:
Underwriting and Shortfall
The Entitlement Offer is fully underwritten by the Underwriters pursuant to an underwriting agreement dated 23 May 2024 between the Company and the Underwriters (Underwriting Agreement), as detailed in the replacement prospectus released on 24 May 2024 (Prospectus). The total Unallocated Shortfall Shares will be allocated and subscribed for pursuant to the Underwriting Agreement. This will include allocations to sub-underwriters, including Tembo Capital Holdings UK Limited (Tembo) and Nebari Natural Resources Credit Fun II LP (Nebari), who each committed to sub-underwrite the Retail Entitlement Offer for up to $2 million and $0.5 million, respectively.
The Shares to be issued under the Retail Entitlement Offer will rank equally with the existing Shares on issue in all respect. The Shares under the Retail Entitlement Offer are expected to be issued on Wednesday, 19 June 2024 and commence normal trading on Thursday, 20 June 2024.
Key Dates
Capital Raising Overview
Canaccord and Morgans acted as joint lead managers and underwriters to the fully underwritten $24.3 million capital raising announced on 23 May 2024, comprising:
- an institutional placement of approximately 135.2 million Shares utilising the Company’s available capacity under ASX Listing Rules 7.1 and 7.1A, to raise A$7.6 million (Placement); and
- a 1-for-2 pro rata accelerated non-renounceable entitlement offer of 298.2 million Shares to raise $16.7 million.
The proceeds from the capital raise will be used to fund TNC through to steady state production at the Cloncurry Copper Project (including contingency, working capital, and other corporate expenses), strengthen its financial position and fund exploration to grow resources and reserves at Cloncurry and target new discoveries at its Mt Oxide Project in 2024.
Refer to the Prospectus and the Company's announcements on 23 May 2024 and 24 May 2024 for further details.
Click here for the full ASX Release
This article includes content from True North Copper, 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.
Quetzal Copper
Ankh Capital Inc is a capital pool company.
Investor Insight
With a copper-focused exploration strategy and North American assets, Quetzal Copper is in an excellent position to capitalize on the widening copper supply and demand gap and play a key role in the critical minerals race.
Overview
Quetzal Copper (TSXV:Q) is a copper exploration company focused on three drill-ready copper projects in British Columbia, Canada: Princeton, Big Kidd and DOT. All three projects are situated in the copper-rich jurisdiction of British Columbia and nearby producing mines such as Teck's Highland Valley copper mine, Hudbay's Copper Mountain mine, and the Craigmont mine.
The company’s flagship is the Princeton copper project, which is immediately to the north of the Copper Mountain mine. The project has seen limited historical drilling, and studies have identified targets characterized by copper mineralization and geochemical anomalies. Quetzal plans to begin drilling at the Princeton and Big Kidd projects in 2024.
The recent acquisition of the Cristinas copper project in Mexico is encouraging. The Cristinas project is an exciting exploration target boasting all the key features required for success, such as proximity to infrastructure, road access, exceptional geology with high grades, and a history of successful exploration. Historical drilling at Cristinas yielded impressive results, intersecting 4.7 meters @3.2 percent copper and 3.7 meters @3 percent copper. The Cristinas project offers shareholders a compelling risk/reward profile for an exploration venture, with plans to begin drilling in 2024.
The company’s focus on copper is very attractive given current supply and demand dynamics. The supply of copper is far more concentrated than oil. While three countries account for 40 percent of the oil supply, only two countries – Chile and Peru, contribute 38 percent of the copper supply. Given the history of political instability in these countries, a supply source from North America, with its stable policy environment, makes it very attractive. Government-supported tailwinds also encourage domestic copper supply, with Canada and the US promoting copper production through tax breaks and incentives.
The demand scenario for copper looks attractive given expectations of rapid growth. According to Nornickel, global copper demand is estimated to rise by 20 percent to 30 million metric tons (MT) per year by 2035, from around 24.8 million MT per year in 2022. This growth in the demand will be led by applications such as electric transport, power transmission grids and renewable electricity generation.
Quetzal Copper is likely to be a beneficiary of Western countries trying to realign their supply chain of critical minerals by sourcing them domestically or from friendly countries. Quetzal, with its portfolio of copper projects in tier 1 mining jurisdictions, is well positioned to offer domestically sourced copper to fill any supply gap.
Company Highlights
- Quetzal Copper is a copper exploration company focused on three drill-ready copper projects in British Columbia: Princeton, Big Kidd, and DOT. Additionally, the company recently acquired the Cristinas copper project in Mexico.
- The flagship Princeton copper project is located northeast of Copper Mountain mine in British Columbia. The company is planning a significant drill program for the project in 2024.
- The Big Kidd copper project is located in southern British Columbia, midway between the Copper Mountain and New Afton mines. The company has an option to acquire 100 percent interest in this project.
- The DOT copper project is located south of the Highland Valley mine in southern British Columbia. The company has an option to acquire 100 percent interest in this project.
- Historical drilling at Cristinas yielded impressive results intersecting 4.7 meters @3.2 percent copper and 3.7 meters @3 percent copper. The Cristinas project offers shareholders a compelling risk/reward profile for an exploration venture.
- Given that around 38 percent of the world's copper is supplied by two countries (Chile and Peru), a North American supply source makes the company’s projects very attractive.
- The company’s senior leadership team is well-experienced in both geoscience and capital markets, which will help the company unlock the potential of its projects.
Key Projects
Princeton Project
The Princeton copper project spans an area of 11,500 hectares and is approximately 5 kilometers from Princeton town in British Columbia. The project is located to the north of Copper Mountain mine. The project represents an ideal location and favorable geology for copper exploration, located between the Copper Mountain mine and the Miner Mountain properties. Several operators have conducted various property surveys over the past 60 years. The geophysical and geochemistry surveys conducted in 2020 and 2021 have identified multiple drill targets. The project has three key targets: Bud South, Knob Hill and Aura.
- Bud South: Historically drilled in 1987, this will be a primary drill target in 2024. One of the drills encountered copper and gold over 10.5 meters. The section yielded 0.184 percent copper, 0.33 grams per ton (g/t) gold, and 8.7 g/t silver over 10.7 meters. Moreover, a lower section graded 0.149 percent copper, 0.121 g/t gold, and 3.2 g/t silver over 4.6 meters.
- Knob Hill: The target is located 2 kilometers south of August Lake and is characterized by granodiorite outcropping over an area of 1,000 meters x 600 meters. Historically, two samples have reported 0.99 g/t and 0.51 g/t gold, 33.6 g/t and 49.0 g/t silver, and 0.60 percent and 1.22 percent copper.
- Aura: This target has similarities to porphyry copper deposits, having a mineralized zone at the periphery.
Big Kidd Project
The company has an option to acquire 100 percent interest in this project. The Big Kidd copper project spans an area of 4,055 hectares in southern British Columbia. It is located just 20 kilometers from the city of Merritt, and benefits from excellent infrastructure in terms of accessibility by a network of roads. The region hosts several copper and gold deposits, such as the Copper Mountain mine and the Craigmont mine.
The historic exploration dates back to the 1890s. In 1916, 10 tons of ore was extracted with 1,000 lbs of copper. Moreover, in 1918, a mine produced 44 tons of ore with 12 percent copper, 68 g/t silver, and 0.57 g/t gold. In 2019, Jiulian Resources completed a drill program on the project. A 2004 resource estimate has identified a non-compliant resource of 122.4 Mt at 0.33 g/t gold and 0.15 percent copper. Additional drilling has expanded the footprint of the mineralization beyond the 2004 estimate.
The project has three important targets for 2024. 1) Target 1 – a narrow target spanning 100 m x 400 m; 2) Target 2 – that spans an area of 200 m x 350 m; 3) Target 3 – this opportunity is in the Dago zone.
DOT Project
The company has an option to acquire 100 percent interest in this project. The DOT copper project spans 846 hectares and is located in the southern portion of the Guichon Creek batholith. The project is located just 25 kilometers away from Merritt, and enjoys excellent accessibility by roads. DOT is located in a region with a history of copper exploration for more than 130 years. Moreover, the project is adjacent to Highland Valley mine (20 km) and Craigmont mine (12 km). In 2008, Aurora Geosciences estimated a non-compliant indicated resource of 5.3 Mt at 0.49 percent copper equivalent and 2.9 Mt of non-compliant indicated resource 0.45 percent copper equivalent.
Moreover, in 2010, a resource report identified the following grades: 30.2 meters @ 1.32 percent copper, 27.4 meters @ 2.58 percent copper, and 76.2 meters @ 0.91 percent copper. These grades and thicknesses indicate a robust copper system on the property.
The project covers five zones of copper-gold-silver-molybdenum mineralization: southeast, northwest, west, east and copper zones. All five zones remain open. The company is planning an exploration program at DOT, which will include a comprehensive IP survey across the property, drilling at the east zone and northwest zone, trench and drilling at the southeast zone, and metallurgical testing.
Cristinas Copper Project
The Cristinas copper project spans 685 hectares and is located in the northeastern Chihuahua state in Mexico. The project encompasses a historic copper mine that was operational in the 1950s, focusing on shallow copper oxide mineralization.
The project boasts a copper mineralization zone exceeding 1,250 meters in length, identified through surface rock chip samples and 12 historical drill holes from 2014. This mineralization remains open along strike and at depth, with significant expansion potential indicated by limited geophysical surveys. Historical drilling at Cristinas yielded impressive results intersecting 4.7 meters @3.2 percent copper and 3.7 meters @3 percent copper.
The recent surface sampling program returned encouraging results, ranging from <0.1 to 7 percent copper, mainly in copper oxides. Only four of the 18 samples returned less than 1 percent copper.
The Cristinas Project offers shareholders a compelling risk/reward profile for an exploration venture, with plans to begin drilling in 2024. The company intends to conduct an initial drill program spanning 1,500 to 3,000 meters, incorporating downhole electromagnetic surveying to enhance the accuracy of geophysical targets.
Management Team
Matthew Badiali – CEO and Director
Matthew Badiali holds an M.Sc. degree in geology from Florida Atlantic University. He is a geologist and has over 18 years of experience as a financial analyst covering the natural resources sector with Stansberry Research. He is also a founder of Mangrove Investor Media, a publishing company.
Chris Lloyd – VP Exploration
Chris Lloyd is a geologist with over 35 years of experience, working in Canada and Mexico. He is a co-founder of Soltoro, which discovered the El Rayo silver deposit and was acquired by Agnico Eagle. He was also associated with the Panuco Project of Vizsla Silver.
Charles Funk – Technical Advisor
Charles Funk is a geologist with experience in gold, silver and copper projects, and is associated with multiple deposit discoveries in Australia and Mexico. He has more than 14 years of experience with several mining companies, including Evrim Resources and Newcrest. He is also the CEO of Heliostar Metals.
Dr. Roy Greig – Technical Advisor
Dr. Roy Grieg is a geologist highly experienced in advancing copper projects. He served for over two years as vice-president of exploration for Amarc Resources, where he advanced their district-scale porphyry copper-gold-molybdenum projects in British Columbia in collaboration with major partners Freeport McMoRan and Boliden. Greig holds a Ph.D. from the University of Arizona.
Lisa Thompson - Director
Lisa Thompson brings over 20 years of experience as a corporate/securities paralegal, working with large and small public companies listed for trading on US and Canadian stock exchanges. Thompson provided corporate secretarial consulting services for US and Canadian companies for over five years. She is a co-founder of Meraki Corporate Services in Vancouver, BC.
Investment Insight: Critical Role of High-purity Alumina in the Low-carbon Transition
As the world accelerates its transition to a low-carbon economy, high-purity alumina (HPA) has emerged as a crucial material underpinning this transformation, driving not just market expansion but an investment landscape rife with opportunities.
This advanced form of aluminum oxide, characterized by its exceptional purity levels of 99.99 percent or higher, is becoming increasingly indispensable in the production of cutting-edge technologies that are driving sustainable development.
The sector presents compelling opportunities for financial returns, driven by surging market demand and significant technological advancements.
Understanding high-purity alumina
HPA is a versatile compound with unique properties that make it invaluable across various industries. Its high thermal conductivity, excellent electrical insulation and remarkable hardiness have positioned HPA as a critical component of LED lighting, lithium-ion batteries and synthetic sapphire for electronic displays.
These applications are at the forefront of energy-efficient technologies, playing a pivotal role in reducing carbon emissions and enhancing global energy conservation efforts.
- LED lighting: HPA is used as a substrate in LED production, enabling the creation of more efficient and longer-lasting lighting solutions that consume significantly less energy than traditional incandescent bulbs.
- Lithium-ion batteries: As a key component in battery separators, HPA enhances the safety and performance of lithium-ion batteries, which are crucial for electric vehicles and renewable energy storage systems.
- Electronic displays: Synthetic sapphire made from HPA is used in smartphone screens and other electronic displays, improving durability and energy efficiency.
Market demand and growth projections
HPA is experiencing an unprecedented growth in demand, driven by industries focused on sustainable and efficient technologies. Market analysis reveals a robust trajectory for the HPA sector. From an approximate value of US$3.18 billion in 2022, the global HPA market is projected to grow at a CAGR of 22.22 percent from 2023 to 2030, reaching a valuation of US$12.21 billion, according to data from Horizon Grand View Research.
This remarkable growth is primarily attributed to the rapid expansion of the electric vehicle market and the increasing adoption of LED lighting technologies, highlighting the urgent need for increased production capacity and innovative manufacturing processes.
Challenges and solutions
Despite its critical importance, the production of high-quality HPA faces several challenges:
- Cost effectiveness: Traditional methods of HPA production, such as the hydrolysis of aluminum alkoxides, are often expensive and energy intensive.
- Purity requirements: Achieving and maintaining the high purity levels required for advanced applications is technically challenging and resource intensive.
- Environmental impact: Conventional production methods can have a significant carbon footprint, which is at odds with the material's role in supporting low-carbon technologies.
In response to these challenges, companies like Impact Minerals (ASX:IPT), a Western Australian exploration and development company, are pioneering innovative approaches to HPA production. Impact Minerals’ Lake Hope project, located 500 km east of Perth, exemplifies this innovation:
- Proprietary low-temperature leach (LTL) process: This method aims to produce high-quality HPA at reduced capital and operational costs compared to traditional techniques.
- Proven effectiveness: The LTL process has successfully produced 99.99 percent aluminum oxide, demonstrating its potential for large-scale application.
- Sustainable production: By utilizing lake clays as a raw material and employing a low-temperature process, the Lake Hope project aligns with sustainable production principles.
Impact Minerals is currently conducting a prefeasibility study for the Lake Hope project, scheduled for completion in early 2025. This study is expected to provide crucial insights into the project's economic viability and its potential to address the growing demand for HPA in a sustainable manner.
As a validation of its project’s potential, Impact Minerals was recently awarded a $2.87 million federal grant for the commercialisation of its innovative process to produce HPA from the Lake Hope project.
The funding is part of an estimated $6.4 million research and development project to be completed within three years and designed to provide Impact Minerals with the relevant information required to complete a definitive feasibility. The grant will also enable the company to construct a pilot plant, expected to be completed in 2025, which will provide consistent material for offtake and qualification trials.
“We believe that we can produce HPA at the lowest cost globally from what we understand at the moment. And that's a very important space to be. You've got to be in the lowest cost quartile, no matter what commodity you're in, in order to make it through the cycle,” the company’s CEO Dr Mike Jones told Investing News Network in a recent interview.
Key takeaway
HPA’s critical role in enabling energy-efficient technologies serves as a cornerstone of the transition to a low-carbon economy. As demand continues to surge, driven by the growth of electric vehicles and LED lighting, the need for innovative, cost effective and environmentally friendly production methods becomes increasingly urgent.
Projects like Impact Minerals' Lake Hope, supported by strategic partnerships and funding programs, represent the future of HPA production. By addressing the challenges of cost, purity and environmental impact, these innovations are paving the way for a more sustainable and efficient HPA industry, and opening up multiple avenues for investing.
This INNSpired article is sponsored by Impact Minerals (ASX:IPT). This INNSpired article provides information which was sourced by the Investing News Network (INN) and approved by Impact Mineralsin order to help investors learn more about the company. Impact Mineralsis a client of INN. The company’s campaign fees pay for INN to create and update this INNSpired article.
This INNSpired article was written according to INN editorial standards to educate investors.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Impact Mineralsand seek advice from a qualified investment advisor.
Pan Asia Metals Secures AU$35 Million, Plans Rebrand as Flagship Minerals
Singapore battery and critical metals explorer and developer Pan Asia Metals (PAM) (ASX:PAM) has entered a binding capital commitment agreement with New York based Global Emerging Markets (GEM) Group to secure up to AU$35 million in funding.
GEM is a US$3.4 billion alternative investment group focused on emerging markets. It has completed over 570 transactions in 70 countries.
In a press release, PAM said the agreement, on which it had been working with GEM for several months, "provides (the company) a pathway to Resource definition and pre-feasibility at both the Rosario Copper and Tama Atacama Lithium projects."
PAM also announced its plan to rebrand as Flagship Minerals to eliminate confusion regarding its geographic focus. While it still has its RK lithium project in Thailand, it has also expanded into South America with the Rosario and Tama Atacama assets in Chile.
Aside from advancing its projects, PAM said that the funding also gives it the opportunity to undertake strategic acquisitions.
The agreement covers a four-year period, during which time the company can access the funds through a series of drawdowns.
However, PAM must send a notice to start a 15 day pricing period before raising funds. The share price for the funding will then be 90 percent of either the average closing bid price during this period or a fixed floor price set by PAM, whichever is higher.
The fixed price can't be lower than the closing price before the funding notice.
Another condition, subject to shareholder approval, is that Lock will provide GEM with collateral shares equivalent to the commitment fee, calculated at 90 percent of the closing bid price upon signing of the agreement and re-calculated every 90 days thereafter until the fee has been paid.
The change in company name is also subject to shareholder approval.
Don’t forget to follow us @INN_Australia for real-time news updates!
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
Osisko Metals: Leading the Charge in Base Metal Investments
Investor Insight
Osisko Metals’ high-quality polymetallic assets present a compelling investment opportunity amid a rapidly expanding critical and base metals market, as North America continues to strengthen its domestic supply.
Overview
Osisko Metals (TSXV:OM) is an exploration and development company focusing on two base metal assets in Canada – Gaspé Copper and Pine Point – targeting copper and zinc, both critical minerals necessary for the global transition to clean energy. These assets are past-producing, brownfield projects of significant potential for future production.
The Gaspé Copper project in Québec has a rapid development plan to begin mining the indicated resource of 495 million tons (Mt) of ore grading 0.37 percent copper equivalent. As the gap between available copper supply and growing demand widens, Osisko Metals is well-positioned to help create and strengthen a domestic supply chain for the North American market.The company’s Pine Point zinc-lead project in the Northwest Territories contains an indicated mineral resource estimate of 49.5 million tons at 4.2 percent zinc and 1.5 percent lead, in addition to significant inferred resources. Zinc is a necessary mineral for the clean energy transition and has important applications throughout the manufacturing industry. This widespread use of this mineral has analysts cautioning about a looming supply shortage.
A preliminary economic assessment (PEA) completed in 2022 indicates the Pine Point project has the potential to become a world-class, high-grade zinc asset, with an after-tax net present value (NPV) of C$602 million and internal rate of return (IRR) of 25 percent.
In February 2023, Osisko Metals announced a C$100-million investment agreement with Appian Natural Resources Fund III for a joint venture on the Pine Point project. The agreement includes C$75.3 million of funding for the project and up to C$24.7 million in cash payments to Osisko Metals.Led by a management team with a wide range of expertise throughout the natural resources industry and experience in geology, exploration, corporate finance and corporate administration, Osisko Metals is well-poised to become a world-class supplier of base metals.
Company Highlights
- Osisko Metals (OM) is focused on becoming a significant base metals producer by bringing two past-producing Canadian brownfield assets back into production: the Gaspé Copper project and the Pine Point zinc and lead project.
- The company’s projects target critical minerals to aid in the global transition to clean energy and net-zero emissions.
- OM’s 100-percent-owned Gaspé Copper project in Québec has a rapid development plan to capitalize on its NI 43-101 indicated resource of 495 million tons of ore grading 0.37 percent copper equivalent to meet the needs of a growing supply gap.
- Copper Mountain hosts the largest undeveloped copper asset in Eastern North America with an in-pit indicated resource of 3.25 billion pounds (1.47 million tonnes) of contained copper, not including significant molybdenum (180 million pounds) and silver (28 million ounces) resources.
- The Pine Point project in the Northwest Territories has the potential to become a top-ten zinc producer with high-grade zinc concentrates.
- C$100 million investment agreement with Appian Natural Resources Fund III for a joint venture on the Pine Point project – including C$75.3 million funding for the project – under which Appian can earn an up to 65 percent ownership in Pine Point.
- A completed preliminary economic assessment for the Pine Point asset indicates an after-tax IRR of 25 percent and an NPV (8 percent) of C$602 million.
- The 2024 mineral resource estimate update for the Pine Point project includes indicated mineral resources of 49.5 Mt grading 4.22 percent zinc and 1.49 percent lead and inferred mineral resources of 8.3 Mt grading 4.18 percent zinc and 1.69 percent lead.
- C$100 million bought deal financing with Canaccord Genuity towards advancing its Gaspé copper project to a construction decision and for general corporate purposes.
- A management team with expertise throughout the mining industry leads the company toward achieving its goal of becoming the leading base metal developer in North America by supplying the base metals necessary for the clean energy transition.
Key Projects
Gaspé Copper Project
The Gaspé Copper project in Québec is among the most significant copper development projects in eastern North America. Osisko Metals completed the100-percent acquisition of Gaspé Copper in July 2023 and has since commenced drilling at the property. Québec has a well-known reputation as one of the most mining-friendly jurisdictions in North America, with a long history of copper production.
Project Highlights:
- Significant Mineral Resource Estimate: The current NI 43-101 resource estimate for the asset demonstrates 3.25 billion pounds of contained copper at a 0.15 percent sulfide copper cut-off. The resource also includes significant molybdenum at 180 million pounds and silver at 28 million ounces. Osisko Metals believes there is room to expand known deposits with its upcoming drill campaign.
- Promising Metallurgy: Preliminary testwork delivered average copper recoveries of 92 percent and average molybdenum recoveries of 65 percent, indicating that Gaspé Copper should produce copper and molybdenum concentrates with excellent metal grades and a payable silver credit added to the copper concentrate.
- Prolific Past Production: The former Gaspé mines were in production from 1955 to 1999 and produced more than 100 million tonnes from a combination of open-pit and high-grade underground mines. The growing demand for copper makes reviving the project economically compelling.
- Robust Infrastructure: The project has infrastructure to quicken development, including paved road access, hydroelectric power on-site, and port access via the Saint Lawrence River and the town of Gaspé.
- 2023 Drill Program: Osisko Metals’ 2023 drill program at Gaspé Copper spanned 8,000 to 10,000 meters focused on continued infill drilling of the inferred mineral resource of the Mount Copper open pit deposit.
- Copper Mountain Updated MRE: The updated mineral resource estimate at Copper Mountain, as part of the Gaspé copper project, comprises an open-pit indicated resource of 495 million tons grading 0.37 percent copper equivalent, representing a 30 percent increase in copper-equivalent metal content, as well as a greater than 99 percent conversion rate from inferred to indicated category.
- 2024 Drill Program: The 2024 drill program is underway at Needle and Copper mountains. Approximately 2,600 meters over 11 holes were drilled at Needle Mountain aimed at understanding the potential for identifying more mineral resources around the former Needle Mountain pit. Drilling is ongoing at the Copper Mountain pit, where a 4,500-metre program is aimed at better defining resources in the enriched core of the deposit.
- Water characterization: Surface water characterization of the mine site and surrounding area is continuing. Detailed sampling of the pit waters and experimental fishing downstream from the mine site are planned to better understand the health of fish populations and the potential impacts of pit dewatering.
- Preliminary economic assessment: Scheduled for early 2025.
Pine Point Zinc-Lead Project
The Pine Point asset in the Northwest Territories has the infrastructure in place to help the company move the project toward development. The project has an existing hydroelectric power substation on site, rail access within 60 kilometers, and paved access roads to the site.
Project Highlights:
- Joint Venture: Pine Point Mining Limited, which holds a 100 percent interest in the Pine Point project, is operated under a joint-venture between Osisko Metals and Appian Natural Resources Fund III. This C$100-million investment agreement was finalized in April 2023 and yielded C$75.3 million of funding for the project; in February 2024, Osisko Metals sold an additional 5 percent ownership interest in Pine Point Mining to a subsidiary of Appian Natural Resources Fund III LP for an expected payment of approximately C$8.33 million. In total, Appian has the right to earn up to 65 percent of Pine Point, with OM retaining 35 percent.
- High-grade Clean Concentrates: Pine Point has demonstrated the potential to produce one of the world’s cleanest concentrates for zinc and lead. A recent metallurgical assessment indicates high recoveries of 87 percent for zinc, and 93 percent for lead using XRT sorting and conventional grinding and flotation processes. Additionally, studies indicate low levels of deleterious elements in the concentrates, making them appealing to smelters around the world that seek to increase the overall purity levels of their concentrate inputs.
- Promising Preliminary Economic Assessment: The 2022 PEA indicates an average annual life-of-mine production of 329 million pounds of zinc and 141 million pounds of lead. Additionally, the 2022 PEA indicates reduced estimated dewatering volume by 30 percent compared to the 2020 PEA.
- 2024 Updated Mineral Resource Estimate: Updated MRE for the Pine Point project highlights the following:
- Indicated mineral resources of 49.5 Mt grading 4.22 percent zinc and 1.49 percent lead (5.52 percent zinc equivalent) containing approximately 4.6 billion pounds of zinc and 1.6 billion pounds of lead in situ (undiluted).
- Inferred mineral resources of 8.3 Mt grading 4.18 percent zinc and 1.69 percent lead (5.64 percent zinc equivalent containing approximately 0.7 billion pounds of zinc and 0.3 billion pounds of lead in situ (undiluted).
- Used variable cut-off grades between 1.41 percent and 1.51 percent zinc equivalent for open pit resources and between 4.10 percent and 4.40 percent zinc equivalent for underground resources.
- The project's East Mill, Central and North Zones now contain approximately 36.2 Mt of indicated resources grading 5.22 percent zinc equivalent, or 3.2 billion pounds of zinc and 1.1 billion pounds of lead in situ.
- Community Support: Osisko Metals has worked hard to earn community support in the nearby towns of Hay River, Fort Smith and Fort Resolution, and has also concluded two separate collaboration agreements with local Indigenous communities: Deninu K’ue First Nation and Northwest Territory Metis Nation. These agreements include education, training, employment, and business opportunities. Additionally, a 2017 exploration agreement was signed with K’atl’odeeche First Nation.
Management Team
Robert Wares - CEO
Robert Wares is a professional geologist with more than 35 years of experience in mineral exploration and development. He was responsible for discovering the Canadian Malartic bulk tonnage gold mine, which Osisko Mining subsequently developed into one of Canada’s largest gold producers. Among other awards, Wares was a co-winner of the Prospectors and Developers Association of Canada’s “Prospector of the Year Award” for 2007 and was named, together with John Burzynski and Sean Roosen, as “Mining Men of the Year” for 2009 by the Northern Miner. Wares sits on the board of directors of Brunswick Exploration. Wares has a Bachelor of Science and an honorary doctorate in earth sciences from McGill University.
John Burzynski - Executive Chairman
John Burzynski most recently served as the chairman, chief executive officer and a director of Osisko Mining where he led his team in the discovery, development and sale of the Windfall Gold project to Gold Fields Ltd. for C$2.2 billion. Burzynski has over 35 years' experience as a professional geologist on international mining and development projects. He was one of the three original founders of Osisko Mining which developed and sold the Canadian Malartic mine in 2014 to an Agnico Eagle Mines Limited and Yamana Gold Inc. partnership for C$3.9 billion , and created Osisko Gold Royalties (today a C$5 billion company). Burzynski was a co-winner together with Sean Roosen and Robert Wares of the Prospectors and Developers Association of Canada (PDAC)'s "Prospector of the Year Award" for 2007 and the Northern Miner's "Mining Man of the Year" for 2009; and the "Prospector of the Year Award" for 2024, among numerous other awards. Burzynski holds a Bachelor of Science (Honours) degree in geology from Mount Allison University , and a Master of Science in exploration and mineral economics (MINEX) degree from Queen's University. He is a registered P.Geo. in Québec, a Fellow of the Royal Canadian Geographical Society and an honorary colonel with the Royal Canadian Air Force. He currently serves as chairman and a director of O3 Mining.
Don Njegovan - President
Don Njegovan most recently served as chief operating officer at Osisko Mining prior to its sale to Gold Fields. He was previously a director of St. Andrew Goldfields until it was acquired by Kirkland Lake Gold in 2016 and is currently on the board of directors of Cornish Metals. He was formerly managing director of Global Mining at Scotiabank from August 2010 to June 2014. Njegovan was a Toll Cross Securities Inc. investment banker from June 2005 to July 2010. Njegovan has over 30 years of experience in the mining industry, starting in 1989 for Hudson Bay Mining & Smelting Co. He holds a Bachelor of Science in mining engineering from Michigan Technological University and a Bachelor of Arts from the University of Manitoba.
Blair Zaritsky - Chief Financial Officer
Blair Zaritsky most recently served as the chief financial officer of Osisko Mining. He is a chartered professional accountant and has over 20 years of Canadian public practice experience, with exposure to various types of engagements and clients, gained through managing audit engagements of publicly listed companies traded on the Toronto Stock Exchange, TSX Venture Exchange, and Canadian Securities Exchange. Zaritsky obtained his chartered professional accountant designation in 2003 and holds dual Bachelor of Arts degrees in accounting and economics from Brock University and Western University, respectively. Zaritsky currently serves as a director of STLLR Gold.
Amanda Johnston - Vice President Finance
Amanda Johnston most recently served as the vice-president of finance of Osisko Mining. She is a chartered professional accountant and has over 20 years of experience in the mining industry and audit and assurance groups. Johnston obtained her chartered professional accountant designation in 2013 and holds a Bachelor of Accounting (Honours) Co-Op degree from Brock University. Johnston currently serves as a director of Metalla Royalty & Streaming.
Alexandria Marcotte - Vice President Exploration
Alexandria Marcotte most recently served as vice-president of project coordination of Osisko Mining. She is a professional geologist registered in Ontario with over 15 years of progressive senior level experience working internationally for senior and junior companies. Marcotte holds an Honours Bachelor of Science degree from the University of Toronto and an MBA from the Schulich School of Business. She currently serves as a director of Angel Wing Metals.
Lili Mance - Vice President, Corporate Secretary
Lili Mance has served as the corporate secretary of Osisko Metals since 2018. She also served as vice-president and corporate Secretary of Osisko Mining. She has 30 years of experience in the financial, wealth management and resource industries serving in a legal, compliance and corporate secretarial capacity. Mance spent 18 years with the Dundee group of companies in various increasingly senior level legal and compliance roles and its various public and private subsidiaries. Mance is a member of the Institute of Corporate Directors and has been a member of the Governance Professionals of Canada since 2004.
Jeff Hussey - Director and CEO of Pine Point Mining Limited
Jeff Hussey has 32 years of professional experience in the mining industry. He has worked in both open-pit and underground mine operations at various stages of mine life, from start-up to mine closure, and more recently, working in mineral exploration and development projects. He spent 19 years with Noranda/Falconbridge. His mine operation experience includes work at the Brunswick No. 12 mine, Gaspé Copper mines, the Antamina mine start-up in Peru, as well as the Raglan mine in Northern Québec. As a senior scientist with the Mining Technology Group at the Noranda Technology Centre in 2002, he enhanced his network in the metallurgical research and mining innovation fields. As a consultant since 2007, Jeff Hussey and Associates has helped junior mine development companies by offering exploration, mining, and geo-metallurgical support services. These include Champion Iron Mines, Focus Graphite, Puma Exploration and Starcore International in Mexico. While at Champion Iron Mines, he participated in building significant high-quality iron ore resources, completing feasibility studies and participating in raising more than $70 million for corporate development. While working with Focus Graphite, development responsibilities included a feasibility study and associated work with community stakeholders and governments. Hussey has a Bachelor of Science in geology from the University of New Brunswick.
Anthony Glavac - Chief Financial Officer
Anthony Glavac has more than 17 years of experience in financial reporting, including over 12 years in the mining industry. Since August 2017, Glavac has served as vice-president, corporate controller for Falco Resources. He previously served as director of financial reporting and internal controls at Dynacor Gold Mines, and interim chief financial officer at Alderon Iron Ore. Before joining Alderon, Glavac spent 10 years at KPMG, working with both public and private companies, providing audit, taxation, strategic advisory and public offering services. Glavac is also involved with other public companies in the mining industry.
Ann Lamontagne - Vice-president, Environment and Sustainable Development
Ann Lamontagne is a civil engineer who obtained her doctoral degree in mining environment from Laval University in 2001. She has worked in the mining industry for over 25 years as a consultant for geotechnical, water management, hydrogeology, and environmental projects. She has been involved in the development of several mining projects where her expertise has been invaluable in minimizing environmental risks throughout the mine planning process, from initial design through to closure and reclamation. Lamontagne has also been involved in many R&D projects with mining companies, including Nouveau Monde Graphite, Troilus Gold, and Mason Graphite.
Killian Charles - Strategic Advisor
Killian Charles has been president and CEO of Brunswick Exploration since 2020. Prior to this, he was vice-president, corporate development for Osisko Metals, where he now remains as a special advisor. Charles was a mining analyst at Laurentian Bank Securities and at Industrial Alliance Securities (Broker) for six years. He also worked as a manager of corporate development at Integra Gold, until its acquisition by Eldorado Gold in 2017. Charles received an undergraduate degree in Earth and Planetary Sciences from McGill University.
Burrendong Minerals Limited IPO
Impact Minerals Limited (ASX:IPT) is pleased to announce that the Prospectus for an Initial Public Offering of Burrendong Minerals Limited (proposed ASX code: BIG) is now available at the following page on Impact’s InvestorHub:
https://impactminerals.com.au/burrendong-priority-offer and at https://www.burrendongminerals.com.au/
- The Prospectus for an Initial Public Offering (IPO) of shares in Burrendong Minerals Limited, who have the right to earn an interest in Impact’s highly prospective Commonwealth project in the prolific Lachlan copper-gold province in New South Wales, is now available.
- Impact’s shareholders have a priority entitlement of $2 million in the IPO and all shareholders and other interested parties are encouraged to review the prospectus.
- Burrendong will issue shares at 20 cents per share with a one-for-two free attaching option exercisable at 25 cents within 36 months of listing. Enterprise Value of $4.3 million on listing.
- Should Burrendong list on the ASX, Impact will retain a 49% interest in Commonwealth and receive a cash payment of $275,000. It will also be the largest shareholder in Burrendong with a 12.5% shareholding. Burrendong may acquire a further 24% interest in the Commonwealth Project by expending $5 million within three years of listing.
- Burrendong is to own all or a share of three resources at Commonwealth, Silica Hill and Galwadgere that are all open at depth and along trend and which will be the focus of a fully permitted significant drill programme to commence shortly after listing.
- The resources contain a combined 120,000 ounces of gold, 3.3 million ounces of silver and modest tonnages of copper, zinc and lead.
- High-grade drill results from previous work to be followed up in the drill programme include:
Main Shaft: 5.7 metres at 3.8 g/t gold, 347 g/t silver, 10.8% zinc and 3.7% lead including 0.5 metres at 4.9 g/t gold, 917 g/t silver, 10.2% zinc and 4.6% lead.
Commonwealth South: 8 metres at 5.1 g/t gold, 20 g/t silver, 1.3% zinc and 0.5% lead including 0.5 metres at 34.3 g/t gold, 40 g/t silver, 5.8% zinc and 2.3% lead; and 4 metres at 41.8 g/t gold (1.3 ounces per tonne), 93 g/t silver, 5.5% zinc and 2.3% lead.
Silica Hill: 22.5 metres at 1.7 g/t gold and 276 g/t silver; including 0.3 metres at 1.8 g/t gold and 4,200 g/t (135 ounces or 0.42%) silver; and also including 0.8 metres at 13.6 g/t gold and 40 g/t silver.
Galwadgere: 53 metres at 0.55% and 0.75 g/t gold, including 6 metres at 1.0% copper and 2.15 g/t gold; and 5 m at 1.98% copper and 3.9 g/t gold.
Impact Minerals Managing Director Dr. Mike Jones stated, “The Burrendong Minerals IPO presents an exciting opportunity to participate in one of Australia’s most prolific mineral belts—the Lachlan Copper-Gold Belt in New South Wales, which is home to major deposits like Cadia-Ridgeway and recent discoveries such as Boda-Kaiser. Once listed, Burrendong will take control of our exceptionalCommonwealth gold-silver-copper project, which has been on hold due to our focus on the Lake Hope High Purity Alumina project. It is appropriate for Burrendong to conduct further exploration with Impact to maintain a significant interest in both the new company and the project. Burrendong’s maiden drill program will target extensions to known high-grade resources, particularly the very high- grade massive sulphide bodies found at Main Shaft. We have always believed that Main Shaft has strong similarities to the world-class Eskay Creek Project in British Columbia’s Golden Triangle, one of the world’s premier mining sites. This belief is why we have made an effort to retain a significant interest in the new company and the project. I encourage all shareholders and other interested parties to review the Burrendong prospectus on our InvestorHub.”
Burrendong is looking to issue 25 million shares to raise $5 million at $0.20 per share with a free one- for-two attaching option exercisable at 25 cents within 36 months of listing. The funds will be used to explore a prospective tenement package in the prolific Lachlan copper-gold belt in New South Wales, including Impact’s Commonwealth Project under a share sale agreement. This agreement also provides Impact shareholders with a priority entitlement of $2 million, as detailed at the end of this report (ASX Release March 19th 2024).
If Burrendong lists on the ASX, Impact will receive a cash payment of $275,000, a 12.5% shareholding in Burrendong, and a 49% interest in Commonwealth. Within three years of listing, Burrendong can earn a further 24% interest in the project by spending $5 million (ASX Release March 19th, 2024).
Burrendong will have an Enterprise Value of $4.3 million on listing should the minimum amount of $5 million be raised.
About Burrendong’s Projects
Subject to listing, Burrendong will hold tenements covering 675 km2 in the heart of the Lachlan Fold Belt, home to numerous world-class copper-gold mines, such as Cadia-Ridgeway (>30 Moz of gold and > 10 Mt copper), North Parkes (5.5 Moz gold and 4.5 Mt copper), and Cowal (>15 Moz gold). Recent discoveries have also attracted attention to the region, particularly the Boda-Kaiser copper-gold porphyry deposit (8.3 Moz gold and 1.5 Mt copper) located adjacent to Commonwealth (Figure 1).
Burrendong will control three resources, all of which comply with the JORC 2012 Code and contain 120,000 ounces of gold, 3,300,000 ounces of silver, and 30,250 tonnes of copper (Figure 2). The resources are at Commonwealth Mine and Silica Hill, part of the Commonwealth project, and Galwadgere, located 10 km along the trend to the south of Commonwealth (Figure 1). On listing, Burrendong will purchase a 100% interest in Galwadgere from Sky Metals Limited (ASX Release: SKY July 14th 2023).
Click here for the full ASX Release
This article includes content from Impact Minerals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
British Columbia Creates New Ministries for Energy and Mining
British Columbia (BC) has introduced two new ministries designed to focus on advancing its goals for clean energy and critical mineral development.
Premier David Eby announced on November 18 the restructuring of the former Ministry of Energy, Mines, and Low Carbon Innovation, which will now be split into the Ministry of Energy and Climate Solutions and the Ministry of Mining and Critical Minerals.
The changes reflect the province's commitment to addressing climate change and seizing opportunities in critical mineral production to support the global energy transition.
Under the new structure, the Ministry of Energy and Climate Solutions will oversee BC’s energy policies to ensure its alignment with climate goals, specifically under the Paris Agreement. The Climate Action Secretariat, which coordinates the province’s climate initiatives, will also now operate under this ministry. Adrian Dix, previously responsible for health, will lead it.
The ministry will manage the electricity, alternative energy and petroleum resource sectors, while also working to expand the province's electricity and low-carbon energy projects. This will include oversight of major projects such as the North Coast Transmission Line and BC Hydro’s Capital Plan.
Meanwhile, the Ministry of Mining and Critical Minerals, led by Jagrup Brar, will focus on enhancing the province's mining capabilities, particularly in critical minerals like copper, lithium and rare earth elements.
BC’s focus on critical minerals aligns with global trends as the demand for materials such as lithium is projected to grow significantly, driven by the transition to low-carbon energy systems. These materials are essential for the renewable energy infrastructure critical for the ongoing energy transition, as well as technologies such as lithium-ion batteries and electric vehicles.
Government data suggests that copper demand could double by 2050, creating opportunities for BC to attract investment and generate employment, particularly in rural areas.
Brar, who previously served as Minister of State for Trade, is expected to prioritize regulatory reforms and streamline project approvals. The ministry will oversee the advancement of 17 critical mineral projects and work to modernize the Mineral Tenure Act to meet regulatory requirements, including Indigenous consultation standards.
The provincial government sees the critical minerals sector as a driver for economic growth and a contributor to North American energy security goals. However, it has acknowledged the need to address environmental concerns and Indigenous rights as part of the development process.
The creation of a dedicated mining ministry has been welcomed by industry leaders. The Association of Mineral Exploration and the Mining Association of British Columbia (MABC) view the restructuring as a step toward attracting investment and addressing long-standing issues such as permitting delays and regulatory uncertainty.
Michael Goehring, CEO of MABC, stated that the new ministry offers an opportunity to modernize regulations and ensure environmental standards are upheld.
“Recognizing the urgent need to modernize and speed mine permitting, the NDP platform committed to guaranteed permit review timelines while maintaining environmental and safety standards,” he added.
Keerit Jutla, president of the Association of Mineral Exploration, emphasized the significance of streamlining permitting processes and the importance of meeting guaranteed timelines for reviews.
“In order for BC to realize its full potential as a natural resource leader, a whole-of-government approach will be needed to ensure it is built holistically, and representative of all of B.C., urban and rural,” Jutla said.
With more than 1,100 exploration and mining companies headquartered in Vancouver, British Columbia is a hub for the global mining industry.
The province’s ability to meet domestic and international demand for critical minerals is expected to bolster its economy and position it as a leader in sustainable resource development.
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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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