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Matador Mining scoping study sets foundations for development: Hartleys

Matador Mining Ltds (ASX:MZZ) recent scoping study for the Cape Ray Gold Project in Newfoundland, Canada, provides a solid platform for future growth as a standalone mining and processing operation.

The preliminary economics indicate the project has positive financial metrics over an initial mine life of seven years with capital payback during the first 1.75 years of the projects life.

Perth-based financial services company Hartleys has reiterated its price target of 38 cents per share for Matador (current price: 24 cents), highlighting upside to come.

The following is an extract from Hartleys research update on Matador:

Matador Mining Limited (MZZ) has released a Scoping Study for the Cape Ray Gold Project in Newfoundland, Canada. The study is underpinned by a new, recut resource of 837koz @ 2g/t Au that allows for an underground component at two of the four deposits making up the Central Zone, maximising the economics of the project. MZZ will produce 484koz Au over a 7-year LOM t..

Matador Mining Ltds (ASX:MZZ) recent scoping study for the Cape Ray Gold Project in Newfoundland, Canada, provides a solid platform for future growth as a standalone mining and processing operation.

The preliminary economics indicate the project has positive financial metrics over an initial mine life of seven years with capital payback during the first 1.75 years of the projects life.

Perth-based financial services company Hartleys has reiterated its price target of 38 cents per share for Matador (current price: 24 cents), highlighting upside to come.

The following is an extract from Hartleys research update on Matador:

Matador Mining Limited (MZZ) has released a Scoping Study for the Cape Ray Gold Project in Newfoundland, Canada. The study is underpinned by a new, recut resource of 837koz @ 2g/t Au that allows for an underground component at two of the four deposits making up the Central Zone, maximising the economics of the project. MZZ will produce 484koz Au over a 7-year LOM through a 1.2Mtpa plant, and receive an additional ~A$26M in silver credits. Average annual production is ~69koz with ~88kozpa produced in the first 4 years, and ~44kozpa thereafter. Preproduction capital and development costs total ~A$167M with underground development to cost ~A$7M in Year 3 and again in Year 5. LOM sustaining capital, which includes pre-stripping on a number of pits, will total ~A$40M. AISC is expected to be in the region of US$776/oz (~A$1,273/oz).

Updated resource and new mine inventory


The new resource stands at 837koz @ 2g/t Au and is broken into open pit (0.5g/t cut-off) and underground (2g/t cut-off) components, with the exception of the lower grade PW Zone at Central and Window Glass Hill resource, which are stated at a 0.25g/t cut-off. The previous resource, from February 2020, was wholly open pit focussed and comprised 1.2Moz @ 2.2g/t Au. While the new resource has seen a 29% drop in contained ounces from reworking some of the Central Zone, and in terms of confidence, has 43% of ounces in the Indicated category compared to 58% in the February 2020 resource; however, it maximises the mineable ounces in a preliminary mine inventory. The 503koz inventory comprises a modest 29koz @ 3.5g/t Au underground component which bolsters project economics, with the rest in open pits averaging 2g/t Au. The new resource converts to a mining inventory at ~58% with 43% of LOM production sourced from Inferred material, highlighting a requirement for further drilling, like all projects at this stage of development.

How does the Study Stack up to our Expectation?


The study broadly meets our expectation. Given the previous resource released in February was intended to underpin the Scoping Study, we did not previously model an underground. The mine inventory is slightly smaller than we anticipated but will certainly grow with further drilling at Cape Ray. As higRead More – Source

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Argonaut Resources directors show faith in company by participating in oversubscribed SPP

Argonaut Resources NL (ASX:ARE) directors have demonstrated their faith in the company’s copper-zinc strategy by participating in the recently closed share purchase plan (SPP).

Independent non-executive chairman Patrick Elliot purchased more than 4.465 million shares at 0.55 cents per share in an indirect interest.

He now holds 5,876,159 shares in that interest with another 20,324,574 held in a separate indirect interest.

Independent non-executive chairman Malcolm Richmond acquired more than 5.454 million shares in a direct interest, increasing the number held in this interest to almost 15 million with another 1 million held in an indirect interest.

Overwhelming response to SPP[hhmc]
The company was overwhelmed by the response to its SPP which closed early and more than twice oversubscribed with the target subsequently increased to $2.5 million from $1.2 million.

Subscriptions in excess of $3 million were received and as a result, the SPP was closed with immediate effect.

Money ..

Argonaut Resources NL (ASX:ARE) directors have demonstrated their faith in the company’s copper-zinc strategy by participating in the recently closed share purchase plan (SPP).

Independent non-executive chairman Patrick Elliot purchased more than 4.465 million shares at 0.55 cents per share in an indirect interest.

He now holds 5,876,159 shares in that interest with another 20,324,574 held in a separate indirect interest.

Independent non-executive chairman Malcolm Richmond acquired more than 5.454 million shares in a direct interest, increasing the number held in this interest to almost 15 million with another 1 million held in an indirect interest.

Overwhelming response to SPP


The company was overwhelmed by the response to its SPP which closed early and more than twice oversubscribed with the target subsequently increased to $2.5 million from $1.2 million.

Subscriptions in excess of $3 million were received and as a result, the SPP was closed with immediate effect.

Money raised under this SPP and from the recently completed $2.7 million share placeRead More – Source

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Strickland Metals shares jump 39% ahead of drilling base metal target near DeGrussa

Strickland Metals Ltd (ASX:STK) shares surged 39% today ahead of its maiden drilling program at the Doolgunna Project, which will include a diamond drilling program that is likely to begin by the end of this month.

As a part of the program, a minimum of four diamond holes will be drilled to a depth of 500 metres to test a VMS target similar to the nearby DeGrussa deposit of Sandfire Resources (ASX:SFR).

Heritage survey[hhmc]
Exploration activity has recommenced on the Doolgunna Project following completion of heritage surveys to allow land access to areas where the company wishes to complete exploration drilling.

The target for drilling is a compelling base metal prospect that exhibits geological characteristics that are interpreted to be similar to Sandfire Resources’ DeGrussa deposit about 30 kilometres to the east of the project.

The prospect has a 3-kilometre-long electromagnetic conductor that lies below an outcropping copper-zinc gossan that has been mapped over a 1.2-kilomet..

Strickland Metals Ltd (ASX:STK) shares surged 39% today ahead of its maiden drilling program at the Doolgunna Project, which will include a diamond drilling program that is likely to begin by the end of this month.

As a part of the program, a minimum of four diamond holes will be drilled to a depth of 500 metres to test a VMS target similar to the nearby DeGrussa deposit of Sandfire Resources (ASX:SFR).

Heritage survey


Exploration activity has recommenced on the Doolgunna Project following completion of heritage surveys to allow land access to areas where the company wishes to complete exploration drilling.

The target for drilling is a compelling base metal prospect that exhibits geological characteristics that are interpreted to be similar to Sandfire Resources’ DeGrussa deposit about 30 kilometres to the east of the project.

The prospect has a 3-kilometre-long electromagnetic conductor that lies below an outcropping copper-zinc gossan that has been mapped over a 1.2-kilometre strike.

Diamond core drilling


The company plans to start the diamond core drilling by the end of this month.

A multi-purpose drill rig has been contracted to enable the minimum planned program wRead More – Source

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Pan Asia Metals has positive discussions on plans for Thai lithium project

Pan Asia Metals Ltd (ASX:PAM) has had positive discussions with authorities in Phang Nga Province, Thailand, including the provincial government, for its Reung Kiet Lithium Project.

PAM has submitted a presentation covering all aspects of the project including methods of ongoing exploration, conceptual mining and concentrate production, and the potential for downstream value-adding industries in Phang Nga and Thailand.

The presentation and subsequent discussions were aimed at assisting Phang Nga Provincial Government in their considerations for the proposed mining and industrial development areas.

Provincial Government discussions[hhmc]
Pan Asia was recently invited by the chief executive officer of the Phang Nga Provincial Administrative Organisation (PAO), a Phang Nga Provincial Government coordinating body, to represent PAM and the Reung Kiet Lithium Project.

The meeting was also attended by the head of Phang Nga Provincial Industry along with the representatives of the Phang Ng..

Pan Asia Metals Ltd (ASX:PAM) has had positive discussions with authorities in Phang Nga Province, Thailand, including the provincial government, for its Reung Kiet Lithium Project.

PAM has submitted a presentation covering all aspects of the project including methods of ongoing exploration, conceptual mining and concentrate production, and the potential for downstream value-adding industries in Phang Nga and Thailand.

The presentation and subsequent discussions were aimed at assisting Phang Nga Provincial Government in their considerations for the proposed mining and industrial development areas.

Provincial Government discussions


Pan Asia was recently invited by the chief executive officer of the Phang Nga Provincial Administrative Organisation (PAO), a Phang Nga Provincial Government coordinating body, to represent PAM and the Reung Kiet Lithium Project.

The meeting was also attended by the head of Phang Nga Provincial Industry along with the representatives of the Phang Nga Provincial Public Works and Town Planning Office.

Phang Nga Provincial Industry head has been appointed by the Phang Nga governor as chairman of the Phang Nga New Town Planning Committee.

During the meeting, the chairman of the committee conveyed its support for the Reung Kiet Lithium Project.

PAO wants to ensure that the requirements of the Reung Kiet project are incorporated into the town planning committee’s zoning plans to ensure that the project can progress once exploration and feasibility results prove positive.

“Can bring opportunities”


PAM managing director Paul Lock said: “We have been working hard in Phang Nga province and we are very happy with the positive reception that the Reung Kiet Lithium Project is receiving from the Phang Nga Provincial Government and surrounding communities.

“Reung Kiet is strategically located and based on peer feasibility work the project is positioned to potentially be one of the lowest-cost suppliers of lithium chemicals in the global peer group.

“This is a project that can bring substantial opportunities and value to Phang Nga and Thailand.”

Pan Asia is planning its second Reung Kiet drilling program with expectations that this will begin in the coming months following the conclusion of the current Khao Soon drilling program.

Potential cost curve leader


Reung Kiet is a hard rock project with lepidolite rich pegmatites chiefly composed of quartz, albite and lepidolite with minor cassiterite and tantalite as well as other accessory minerals including some rare earth.

Lepidolite does not require roasting and has a suite of by-products which are recoverable at the concentrator and processing stages of the flow sheet.

Peer feasibility work has Read More – Source

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