The Pick Magazine is published independently for executives in the resources sector.
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Right now, it would be fair to say the leash has ‘been loosened’ on optimism towards lithium with a healthy dose of speculative promise built into stocks.
Take a walk down St Georges Terrace in Perth, and you would struggle to be more than 10 metres from a trader bullish on the longterm lithium story.
JP Morgan metals and mining team has recently underpinned the wave of positivity with its abrupt rethink on some big-name ASX lithium companies under its mandate.
Their reconsideration reckons a 19 per cent a year increase in demand for lithium over the coming ten years, on a compound annual growth rate basis, based on demand for electric vehicles and batteries.
Pilbara Minerals (ASX: PLS) is a critical player in the lithium industry and owns the largest hard-rock lithium operation in the world.
The company has a clear pathway to production in a metal that is forecast to remain a critical element in the new energy future.
Lithium companies have been witnessing significant gains over the past year, and Pilbara’s stock has doubled over 52 weeks as global demand for lithium continues to run at record rates.
For the year, production increased by 34 per cent, revenue increased by 577 per cent and an operating profit of $561 million and EBITDA of $841 million, shipping over 51,000 tonnes of batteries at an average price of $2382 per tonne.
The last financial year was a doozy generating over $1.18 billion in revenue and exporting around 361,000 dry metric tonnes.
Pilbara says its disciplined long-term strategies are paying off.
“What we see is positive from all the indicators … starting with our customers, strong demand remains from all corners,” the company stated at the time.
Meanwhile, producers globally have declared ramping demand fuelled by motivated governments in developed economies fearful that failing to meet climate change targets will soon outstrip supply.
Australia, abundant with hard rock lithium, most ideal for batteries, is in the spotlight as the number of electric cars sharply increases.
But as those on a waiting list for their new car will attest, this robust demand is currently held on a leash by the persisting COVID hangover.
TheemergingGascoyneprovince.
What we see is positive from all the indicators … starting with our customers, strong demand remains from all corners.
Concerningly, when supply eventually returns to normal, aging cars combined with rising EV demand could easily see last year’s record 2 per cent move away from combustion engines rise to unimaginable levels in a concise amount of time.
Consumers will be keen to move over to electric, especially if energy prices remain high, which bodes well for companies such as Pilbara Minerals.
Voltaic Strategic Resources (ASX: VRS), Mt Monger Resources (ASX: MTM), and Kingsland Minerals (ASX: KNG) are both positioned to perhaps be the next big lithium story.
VRS recently listed on the ASX, holding a suite of battery and precious metals projects in Western Australia’s emerging Gascoyne critical metals province.
VRS will explore its promising Ti Tree lithium project which is contiguous to Arrow Minerals – Malinda Li Project (23m @ 0.98%, 2m @ 1.71%, & 1m @ 2.0% Li2O).
The Ravensthorpe project is prospective for a suite of battery metals, including lithium, graphite, nickel-copper-PGE, REE and gold mineralisation. The region has numerous active mining operations and exploration projects, including Allkem’s Mt Cattlin lithium mine.
• Three critical tenement applications were granted, significantly expanding the
• Ravensthorpe project area to over 1,400km2
• Multi-element potential for clay-hosted REE, lithium-bearing pegmatites and sulphide nickel mineralisation
I don’t think so!
Newly appointed Magnis Energy Technologies Ltd (ASX: MNS) Chief Executive Officer, David Taylor, believes the battery technology and materials is a vital component of the hot “green energy” market.
Mr Taylor was named Magnis CEO in June following an extensive global search. He brings 30 years of international experience leading the development and growth of businesses and major projects across the renewables, energy, property, construction, transport, environmental and social infrastructure sectors.
That makes him a perfect fit for Magnis which is building a lithiumion battery production business for the electrification supply chain, while also progressing a sizable graphite mining operation in Tanzania.
Speaking shortly after officially taking up his new role in August, Mr Taylor said Magnis’s strategic positioning has seen the company do things a little differently.
“Many Australian investors are likely well attuned to exploration and
development companies proving up a resource of critical minerals to supply the emerging battery technology space. While this is certainly important, it is also vital to understand battery cathode and anode producers have highly specific requirements for the materials they use, which influences production decisions.
“Magnis, which is in the midst of commencing commercial production at its joint venture battery plant, is well attuned to the constraints placed on downstream manufacturers. These lessons have not only seen the company carefully partner with battery specialists but also influences activities at our Tanzanian project.
“It would be remiss of me not to mention Magnis’s experienced and diverse board, who bring broad sector experience across many different industries, capable of guiding the long-term future strategy of the company.“
The company’s US-based subsidiary Imperium3 New York, Inc (iM3NY) operates a gigawatt-scale lithium ion battery manufacturing project in Endicott, New York.
Magnis along with its joint venture and technology partner Charge CCCV LLC (C4V) are the major shareholders in iM3NY which has recently commercialised C4V’s patented technology to produce green credentialed lithium ion battery cells.
Magnis also has a minority stake in C4V and has exclusively licensed their anode processing technology with an aim to produce high performance anode materials utilising very high purity natural flake graphite concentrate feedstock from its Nachu Graphite Project in Tanzania.
Mr Taylor said the company’s vision is to enable, support and accelerate the green energy transition critical for the adoption of electric mobility and renewable energy storage.
There is no doubt this is one of the world’s most dynamic markets. According to the International Energy Agency, global sales of electric cars doubled in 2021 to a record 6.6 million and are firming for another ground-breaking year in 2022.
Further downstream, Magnis recently revealed significant results from its Li-ion technology partner C4V’s extra fast charging battery programme, testing 7 amp hour commercial graded cells.
These cells are developed using bio-mineralised lithium mixed metal phosphate (BMLMP) technology, which delivers superior battery life with fast charge capabilities while containing no nickel or conflict metals such as cobalt and is patented by C4V.
The 7 amp hour extra fast charging programme which commenced in early 2022 tested the cells with a 20 minute-charge and 20 minute-discharge process.
Earlier results from an initial fast charge assessment led to C4V introducing a unique step in its battery manufacturing process without changing any cell components or the cell design. The unique step was implemented to enable enhancement of the battery cycle life.
To date, the EFC results received have been very exciting with only a three per cent initial capacity loss after more than 2600 cycles.
The plan is to take this programme to over 3000 cycles and then run new programmes at higher charging currents to achieve a 10-minute charge and then on to a 6-minute charge.
Complementing the exciting battery production activities, Magnis recently completed an update to its 2016 Bankable Feasibility Study for its Nachu graphite project in Tanzania and confirmed the project continues to demonstrate strong financial and technical viability.
“The update to the BFS demonstrates that the Nachu Graphite Project represents one of the best graphite production opportunities in today’s market,” Mr Taylor said.
“The project will produce a high quality, sustainable product that requires minimal purification, placing Magnis in a strong competitive position relative to others in the market.
“Our high purity graphite concentrate will provide lithium-ion battery manufacturers and other industrial customers with an attractive and competitive alternative to current sources in the global market.
“With existing offtakes in place, and discussions with other major offtakers in key sectors well advanced, we are confident that the project will be strongly supported by project funders. Initial
The update to the BFS demonstrates that the Nachu Graphite Project represents one of the best graphite production opportunities in today’s market.
discussions with funders have commenced, and we have received positive responses in relation to the overall bankability and attractiveness of the project.”
Mr Taylor says an extremely important foundation of the Magnis business is its focus on ESG credentials and meeting sustainability commitments.
“In terms of the environment, we’re really focused on producing some of the greenest and most sustainable products in the world. For example, our cell manufacturing plant in New York is predominantly powered by renewable energy.
“We’re also focussed on revitalising the community. The Endicott facility is actually the former IBM campus and there is a lot of local technology experience in the area which we are keen to leverage.
“Meanwhile at both New York and Tanzania we are fixated on minimising waste, recycling a lot of the products that come out of the actual process. We’re committed to making a positive impact in the communities that we operate.
“And this is no better demonstrated by the work that we’ve been doing in Tanzania as part of the Nachu project to support improvements in housing, in education and also in skills development.
With a number of big news announcements likely on its mining and technology developments, Magnis is definitely a company to follow.
“We are finding mineralisation outside that area of historical working, showing us that the old timers didn’t find everything.
The lithium market is hot right now because there is simply insufficient availability, with more than half of the world’s increasing short supply coming from hard rock Spodumene in Western Australia.
Despite recent economic challenges, tin’s increasing demand from the electronics sector is pushing the limits of global production due to the lack of investment by large miners – a situation made all the direr by recent coronavirus outbreaks disrupting output, particularly in Indonesia and Malaysia.
Long-term sentiment among the small number of analysts covering the tin market remains bullish based on this anticipated short supply which has been underpinned by a realisation from global manufacturers that tin is a critical manufacturing component - primary used as solder in all electronics - that will be holding a whirlwind of new M2M, IoT and AI products already applying pressure to stockpiles around the globe.
Interestingly, tin is already classified as a critical mineral in the United States but is interestingly not yet in the European Union. However, the fact that China has been stockpiling tin for some time is a stark wake-up call for everyone else.
Following ore sorting testwork returning 98% recovery, Sky Metals CEO Oliver Davies is understandably keen to continue drilling his Company’s Tallebung bulk tonnage tin project in New South Wales, focussing on exploration upside to increase tonnage throughput for production in the coming years.
His Company hopes to produce between 2000 and 4000 tonnes of tin concentrate per annum, with continuing exploration a significant determining factor of the final expected throughput.
And signs on the upside are good, with recent exploration confirming more than 1.6km of tin-tungsten mineralisation extending along strike in both directions.
Mr Davies said the most recent results raise more questions than it gives answers with no apparent geological reason why the mineralisation will not remain consistent along strike.
“Constrained historical workings most likely being the main reason for the discontinuation.
“How much is there, and how much drilling is needed to realise this extensive resource remains unclear.
So, we have had to go back with more drilling to try and fill out these extensions and see how big it is.
The size of this remains an exciting proposition, particularly with the tin grade quality remaining consistent and enormous cost-saving benefits likely from ore sorting for a future bulk tonnage operation shedding two-thirds of sorted material before downstream processing.
There is a vast potential production cost saving already ultracompetitive by world standards at around $1 a tonne.
And as exploration and project development unfold, Sky is also working hard in the background on logistics and marketing arrangements, having already discussed smelting options with external providers overseas.
It is a part of the business SKY is keen to progress because of the premium price of 55% to 65% tin concentrate commanding well above 90% pay abilities while reducing freight costs.
“We are less than 60 kilometres from the nearest train line, which could take it to a port,” Mr Davies said.
So, we are close to the infrastructure required, and already onsite, we have a lot of infrastructures we can tap straight into.”
SkyMetalsCEOOliverDavies.
The International Energy Agency predicts that demand for lithium-ion batteries for portable power devices, energy storage and particularly EVs could lead to demand outstripping supply in less than three years.
Red Dirt Metals (ASX: RDT) is a handful of companies developing newly discovered hard rock lithium projects in WA – projects critical for avoiding an extended lithium squeeze within the next few years and capable of putting the brakes on global decarbonisation trajectories in the coming decades.
The Company aims to be Australia’s next big lithium producer, focusing on the rapid development of its Mt Ida Lithium Project near the Menzies in the state’s goldfields following aggressive exploration since acquiring 26 tenements from Ora Banda Mining in 2021.
More than 65,000 metres of drilling (about half the distance from Washington, D.C. to New York City) since the acquisition has led to the discovery of multiple high-grade open lithium deposits and clear sight to a final investment decision for the project early as next year.
This timely achievement was significantly boosted in the last days of September when the extended exploration recorded the best intercept to date of 28.9 metres for 1.92 per cent lithium (Li2O) and 187ppm Tantalum oxide (Ta2O5) from 318.5 metres.
At the time of publication, Red Dirt has published its MRE for a total of 12.7Mt @ 1.2% Li2O as spodumene concentrate 6% heads north of US$5000 per tonne, making speed to market the critical factor.
The Company believes it has the gravitas to expedite the project’s development, which remains highly prospective for discoveries and a “massive value-add” because Metallurgical testwork demonstrates remarkable lithium recoveries and simple processing capability.
The highly experienced technical team share an aggressive approach wasting little time getting underway with Pre-Feasibility Study planning with the testwork ongoing and the results to be included as part of the study.
Meanwhile, the commercial team is advancing offtake supply negotiations, including possible supply structure arrangements with future partners.
“We must get this asset into production as fast as possible,” Red Dirt Managing Director
“Key components of this story include offtake partners, strategic partners, and a clear development pathway,”
“The asset is on granted mining tenure in Western Australia and placed in an excellent geographical position being close infrastructure with freight access available from the Esperance or Geraldton ports.
“The size, simplicity, and continued highly prospective nature of this project combined with the fact that it all exists in a prime location within tier-1 mining jurisdiction are the factors that excite me most.”
The Company will now shift the drilling focus towards regional exploration and the maiden drill programme at the recently acquired Yinnetharra Project in November this year.
Having already made several play opening discoveries in Western Australia’s offshore Bedout sub-basin, Carnarvon Energy (ASX:CVN) has unveiled its top 20 exploration prospects in the basin, with potential to unlock a further 1.5 billion barrels of oil equivalent (boe).
The Perth-based energy exploration and development company made a string of successful discoveries in the basin over the last decade, with the Roc, Phoenix South, Dorado and Pavo finds.
The 2018 Dorado discovery marked the largest oil find on WA’s North West Shelf in 30 years, independently assessed to contain a gross 344 million boe in best estimate contingent resources.
This was followed up with the nearby Pavo oil discovery in 2022, which is estimated to hold a further 45 million boe of best estimate contingent resources and could be developed through a low-cost tie-back to Dorado.
Carnarvon CEO Adrian Cook explains these recent finds have only scratched the surface, with the Company’s Bedout sub-basin acreage containing multiple
prospective, but still untested, play fairways.
“We have identified more than 100 prospects across our four Bedout sub-basin permits, which we hold in a joint venture partnership with operator Santos Ltd,” he says.
“We have assessed the top five prospects in each of these permits to hold a combined mean prospective resource of over 1.5 billion boe, and with more than 80 other prospects in our portfolio there’s plenty of running room left in the basin.”
Given the Company’s drilling success rate of nearly 70% in the basin, Cook is confident further drilling will add to Carnarvon’s already extensive resource base in the Bedout.
“Several prospects are now being highgraded for potential near-term drilling campaigns,” he adds.
“Discussions are ongoing with our partner to determine where we focus our drilling, and we look forward to sharing those plans as they unfold.”
Those plans could include proving up the low-risk Pavo South accumulation, adjacent to this year’s successful Pavo discovery well.
A find at Pavo South could add a further 67.9 million boe of mean prospective resources and would de-risk several other nearby prospects, such as Tornin, which is estimated to hold gross mean prospective resources totalling 60.7 million boe.
Another near-term drilling candidate is Ara, a potential 202.4 million boe gas prospect in WA-435-P, estimated to hold nearly 600 billion cubic feet of gas, along with 100 million barrels of associated condensate.
A discovery at Ara would derisk other nearby prospects with the potential to hold several trillion cubic feet in aggregate gas resources. This would also provide further confidence for the gas-focused second phase of development at Dorado.
Meanwhile, the Starbuck and Flint prospects in WA-436-P are on-trend with Pavo-1 and have been estimated to hold a combined 132 million boe of mean prospective resources.
This could then unlock other prospects in WA-436-P, such as Arthur, which Carnarvon estimates holds 72.9 million boe in gross mean prospective resources.
Front-end engineering and design for the proposed Dorado field development is largely complete and the project is close to being final investment decision ready.
The Phase 1 field development plan envisages production from a wellhead platform connected to a floating production, storage and offloading vessel (FPSO) with a design capacity to process 100,000 barrels of oil per day.
Pre-development work has also commenced for the Pavo discovery, which could be tied-back and developed through the Dorado infrastructure.
Development at Dorado is the first step in unlocking the full potential of the Bedout sub-basin, with the 1.5 billion boe potential of the top 20 exploration prospect showing there is lots more to explore.
Estrella Resources (ASX:ESR) has found itself in a highly desired position with a significant nickel discovery and a near-term producing asset on its hands to possibly provide cashflows for future exploration and development.
Estrella’s wholly-owned Carr Boyd Nickel Project, located 80km north of Kalgoorlie, is a major focus for the company after it made a significant nickel and copper discovery while drilling into the T5 target in late 2020.
The project covers the Carr Boyd Layered Complex, a 75sq km mafic igneous complex which hosts several nickel and copper sulphide occurrences – the most significant being the Carr Boyd Rocks mine.
Drilling success at Carr Boyd has continued unabated since the T5 success as the company undertakes further exploration into what is already a very large layered intrusive.
“I have been around for 20 odd years in the nickel exploration game, and we have found a few things, but I have never been involved in a discovery of this type and certainly nothing that has the size potential of this nickel-copper intrusion,” Managing Director Chris Daws said.
“These deposits can be very large globally. This is where you want to find nickel and copper…you want to find them in these intrusions. We have a very committed and experienced team and I am extremely excited to be involved with them at Carr Boyd and look forward to continued success in the future.”
Comprising three Mining Leases and six Exploration Licenses, Carr Boyd is an emerging area of geological significance following the intersection of massive nickel-copper sulphides.
The project includes the historic Carr Boyd mine, which consisted of two mineralised pipes that produced over 200,000 tonnes of nickelcopper ore.
Most recently, Estrella has focussed on the T5 prospect which produced a series of significant massive sulphide hits.
In late September, Estrella revealed a maiden T5 JORC 2012-compliant Mineral Resource Estimate (MRE) which underpins an Exploration Target of between 5Mt and 7Mt at 0.7% - 1.5% nickel for 35,000 - 105,000 nickel tonnes and 0.3% to 0.5% copper for 15,000 - 35,000 copper tonnes.
Mr Daws said the initial MRE for T5 is a significant milestone for Estrella and the Company has taken a major step in quantifying a sizeable Exploration Target for the Carr Boyd basal contact.
“We will continue to progress with systematically testing the 16km of basal contact at Carr Boyd, as well as test for possible sulphide occurrences above the basal contact such as those at the Carr Boyd Nickel Mine, with drilling and geophysics.”
In addition, Estrella is ramping up work at its Spargoville Nickel Project located 20km Southwest of Kambalda which it hopes to transition into a near-term producing asset.
Estrella has recently wrapped up Spargoville resource and metallurgical drilling with robust assay results paving the way for an updated Resource Estimation at the 5A mine, the first potential producing asset at Spargoville via an open pit cutback operation.
Completion of drilling allows Estrella to proceed with bulk sampling while a Definitive Feasibility Study (DFS) along with mining approvals is slated for December 2022 with start of mining earmarked for 2023.
“Estrella has sought to broaden its focus to include the Spargoville project and the 5A nickel deposit precisely because it contains high-grade mineralisation at a time when the price and underlying fundamentals of nickel demand are strong,” Mr Daws said.
“The progress we have made to date positions Estrella to meet its target of bringing Spargoville into operation next year should the DFS be favourable.”
Ben Weber has more than 15 years of experience in the financial services industry. His background includes portfolio construction, quantitative trading to large and mid-cap investments.
Ben is predominantly focused on small caps and emerging markets, providing capital solutions and market strategy to listed and PreIPO companies. His clients include wholesale investors as well as ASX listed companies having built long-term and successful relationships.
Barclay Pearce Capital is an Australian and UK-based provider of advisory services to privately owned businesses as well as small to medium-sized public and ASX listed companies. Ben joined the team at the start of 2021.
Tietto remains on track to pour first gold at its 3.45 million-ounce Abujar Gold Project in Côte d’Ivoire by the end of this year, becoming West Africa’s next gold producer. It has been a remarkable and impressive run for this company which fully funded Abujar through to gold production without incurring any debt.
Despite the challenges of operating in Africa, and most of its development occurring during a global pandemic, Tietto has continued to hit its milestones and timelines for Abujar. Its Definitive Feasibility Study for Abujar, completed in 2021, demonstrated potential to produce 260,000oz in the first year of production with 1.2Moz forecast production over the first six years of operation. At an all-in sustaining cost of US$804 an ounce, the project delivers robust economics with significant upside to the gold price, basing its DFS on US$1,407/oz.
It has achieved considerable resource growth from less than 1Moz when it listed on the ASX in early 2018 to its latest Mineral Resource Estimate of 3.45Moz including Ore Reserves of 1.45Moz. It has grown resources economically, establishing its own fleet of diamond drill rigs for some of the lowest cost drilling at about US$35 per metre.
With an aggressive 100,000m drilling campaign underway and highgrade results such as 1.1m at 2,853 grams per tonne gold from 38m delivered from recent work, Tietto is poised to continue to grow the gold inventory at Abujar to a project of scale that is likely to attract attention from larger players in the sector.
Recent changes at Fertoz provide new momentum for this organic fertiliser company, which expanded operations into carbon capture last year. Daniel Gleeson, a former executive at US-based agricultural technology and science company Syngenta, took over the role of CEO earlier this year, with more than 20 years’ experience in agribusiness across M&A, due diligence and integration, research and development, and portfolio and geographical expansion. Fertoz has boosted its management team further in recent months with two US-based appointments – new CFO Emma Davidson and Werner Pienaar joining as Sales Director North America, based in Idaho.
With a $5 million capital raise completed in recent months, Fertoz is focused on accelerating its development of Fertoz Carbon including recruitment, project advancement and technical reports, while also continuing to build out its North America organic phosphate team. It is nearing construction of a fertiliser pellet plant in Montana, USA and a reforestation project in South East Asia is also progressing on track.
Fertoz delivered record phosphate sales in 1H CY22 and its order book in 2H is expected to exceed sales for full year 2021. That outlook demonstrates just how well this company is positioned to scale up its business and execute its expansion plans as we see continued growth opportunities in regenerative agriculture and global carbon projects.
Amid global economic uncertainty, gold’s hedging power makes its value unquestionable. True, prices have endured inflation pressure. Still, Australia’s 270,000 kilograms, with the majority coming from Western Australia, are positive, with sentiment turning and investors looking for value and projects close to production with prices steadily increasing.
Ausgold stands ready to become the country’s next mid-tier gold miner with its mammoth Katanning Gold Project currently in the Feasibility Study. It offers increased scale and massive exploration opportunities to deliver a much larger mine.
The 100% owned regional scale project spreads across 5,500km2 of premium ground containing a rapidly expanding 2.16-million-ounce Resource and a Reserve of 1.28Moz, making it only one of the most significant undeveloped open-cut gold projects in Australia.
A recent pre-feasibility study confirmed that KGP is a uniquely positioned WA mining operation offering clear cost advantages relative to its access to low-cost power, which recently has been a challenge for mining project economics.
The project’s exciting momentum under the transformative leadership of its Managing Director, Matthew Greentree, seems unstoppable.
Through the ongoing success of extended exploration and accommodating mine optimisation Matt and his team are showing an upside in exploration alone, amounting to over 1.5Moz in recent years.
It is a trend the Company believes will be sustained throughout the downhill run toward production — making for an attractive proposition for those looking for a position in a high-quality project.
“The PFS demonstrates that Katanning will be a mine,” Mr Greentree said.
And with extra tonnes imminent, the team is focused on increasing the head grade for the 3tpa production circuit.
Mr Greentree said contingency had been factored through good metallurgy providing around 10 per cent reserve in the oxides reserve, which will increase with optimisation improvements.
“Optimisation for the oxide was left out of that calculation, and our mill will already process 6 million tonnes of oxide each year,” he said.
We know this project can deliver a large EBITDA profile, low technical risk, low upfront and longer-term CAPEX, for a high-margin operation.
“The other factor is increasing the number of high-grade ore through the mill. There are several opportunities to do this from some of our satellite operations and potential underground Resources that run at a higher grade, which significantly increases gold production.”
Drilling-focused growth is underway across its regional scale tenement targeting the resource expansion and growth within Central and Southern Zones.
But the upside will also come from beneath ground with down dip chasing deep drilling, presenting potential critical mass for underground mining in the Northern Zone and across its extended holdings of gold and even critical mineral potential.
“With significant scale already delivered, the team has clearly shown it understands the geology and how to unlock even more value,” Mr Greentree said.
“If people are looking for a reason to buy in, they only need to consider the significant scale we’ve already delivered from a team who knows the geology and how to unlock more value.
“In sync with that is productivity gains through project optimisation and definitive feasibility studies amid a gold macro emerging offering a Company and project which is undervalued compared to peers today.”
Anovel partnership between green finance and reporting compliance gives clarity, confidence, and convenience for businesses on their ESG journey.
ESG funds are on track to pass US$37 trillion by the end of 2022, nearly double what they were in 2016.
The move toward mandatory ESG reporting requirements is gaining momentum in Australia in line with the rest of the world.
The pressure towards compulsory compliance comes amidst increasing concern that current voluntary reporting regimes are inadequate, particularly concerning climate-related risks and opportunities.
It seems likely that mandatory ESG reporting will soon be a reality for Australian companies moving from a state-by-state piecemeal approach to compulsory compliance, providing benchmarked transparency on climate-related risks and opportunities.
The will of companies to do the right thing may not be the most challenging obstacle. Instead, the sometimes-overwhelming nature of the ESG in its current form seems to be the critical challenge.
This means providers offering a clear roadmap to achieve ESG criteria that can access capital from complying funds have never been more in demand.
Light green fund managers Eden Partners recently joined with specialist ESG leaders Parvate Collective to offer one-stop investment readiness.
Firmer ESG standards make this partnership’s role more important than any other time by offering a clear roadmap to achieve ESG criteria that can access capital from complying funds.
Eden Partners provides specialist funds management overseeing the Eden Global Natural Resources UCITS Fund, which is classified as an ESG ‘Light Green’ under Article 8 of the European Union Sustainable Finance Disclosure Regulation (SFDR).
Co-founder Nicholas Boyd-Mathews is the fund’s, Chief Investment Officer.
“We are delighted to be able to continue to progress Eden fund’s reach whilst maintaining the expected standards in ESG for our current and targeted investment companies,” he said.
“Parvate Collective is a well-matched partner in this, given that they report on ESG and help train and guide companies through the roadmap and execution phase of ESG credentials.
“It is an exciting time in ESG fund management, where we see many opportunities in Australia and overseas.”
TAILORED ESG PROGRAMS AND STRATEGIES.
Parvate Collective ManagingDirector JimAllenby
BY COLIN HAY
European Metals Holdings (ASX:EMH) is progressing towards development of the globally significant Cinovec lithium/tin project in the Czech Republic with a view to supplying battery-grade lithium hydroxide and lithium carbonate to battery manufacturers.
The company, which holds a 49% economic interest in Cinovec, is honing in on the finalisation of a Definitive Feasibility Study (DFS) while discussions with potential offtake partners and project finance participants are also making good headway.
Earlier this this year, the company unveiled an updated Prefeasibility Study (PFS) which delivered outstanding results.
• Annual production of battery grade lithium hydroxide monohydrate modelled to increase from 25,267 tpa to 29,386 tpa, an increase of 16%.
• NPV (post tax) increases from US$1.108B to US$1.938B, an increase of 74.9%, based upon a lithium hydroxide price of USD17,000 per tonne which is significantly less than the current price.
CinovecisideallylocatedtofueltheEuropeanEVmarket.
Li2O and 0.05% Sn and an Inferred Mineral Resource of 294.7Mt at 0.39% Li2O and 0.05% Sn.
Combined, the project is modelled to contain 7.39 million tonnes lithium carbonate equivalent and 335.1kt of tin.
The Measured Mineral Resource has been declared to cover the first 25 years mining at an output of 29,386tpa of lithium hydroxide.
This makes Cinovec the largest hard rock lithium deposit in Europe, the fifth largest non-brine lithium deposit in the world and a globally significant tin resource.
Metallurgical test-work has already produced both battery-grade lithium hydroxide and battery-grade lithium carbonate, in addition to high-grade tin concentrate at excellent recoveries.
The Company, founded in early 2021, has already grown a significant base of listed and non-listed clients.
Co-Founder and Managing Director Jim Allenby has been focused on building this ‘pragmatic brand’, bringing to life a philosophical approach conceived over more than seven years of working in the industry.
“Since meeting Nic some six months ago, it was always my ambition to work with him as a well-aligned fund and fund manager for our clients,” he said.
“Nic and the Eden team’s experience and history in ESG is truly world-class, and we are delighted to be working alongside them to guide companies through the requirements for ESG and green funding.”
Since meeting Nic some six months ago, it was always my ambition to work with him as a wellaligned fund and fund manager for our clients.
• Post tax IRR of 36.3% and a payback period of 2.5 years from the commencement of production.
• Up-front capital cost due to backfilling plant and additional capital costs to produce 29,386 tpa lithium hydroxide increased to US$644m.
• The 2022 PFS Update assumes the life of mine extraction of 13.1% of the Measured and Indicated JORC Resources at Cinovec and only 7.1% of the total JORC resource.
• Use of tailings for backfill will result in a far smaller environmental impact, further enhancing the project’s already strong ESG credentials.
Life Cycle Assessment shows Cinovec has the potential to be one of the lowest carbon lithium battery chemical producers, globally.
Cinovec hosts a globally significant hard rock lithium deposit with a total Measured Mineral Resource of 53.3Mt at 0.48% Li2O and 0.08% Sn, Indicated Mineral Resource of 360.2Mt at 0.44%
Cinovec’s large lithium and tin reserves and its location in the heart of one of the hottest electric vehicle markets in the world has made it a particularly important part of Europe’s clean energy future.
In addition to its prime location, the project is well serviced by infrastructure with a sealed road adjacent to the deposit, rail lines located five km north and eight km south of the deposit, plus there is an active 22 kV transmission line running to the historic mine.
Importantly for European Metals, while recent lithium prices have been trending skywards, market fundamentals suggest this is no flash in the pan.
Leading market analysts Benchmark Mineral Intelligence’s Lithium Ion Battery Database predicts battery demand in Europe – the second biggest market behind China — is set to increase at an annualised rate of 40.1 per cent between 2020 and 2025.
As the sales of electric vehicles globally increase, so too will the demand for the raw materials required to construct these vehicles and in particular, lithium ion batteries.
The sizable tin resource at Cinovec should not be undervalued, with MIT labelling tin as the base metal most likely to be impacted by new technology.
Already the holder of a major position in the gold rich Pickle Lake region in Ontario, Canada, Ardiden Limited (ASX: ADV) recently expanded its exploration holdings even further, securing a dominant landholding.
Considered by locals as Ontario’s last great frontier, Pickle Lake is the most northerly area in the region to host year-round road access, an opportunity Ardiden has already taken advantage of through its strategic examination of its acreage position.
The newly staked tenure has increased Ardiden’s flagship Pickle Lake project by 25% to an imposing 1,088 square kilometres and provides it with continuous coverage of a highly prospective geological formation, known as the Uchi Belt.
The Belt has produced over 30 Moz of gold to date and is home to some of the world’s largest gold miners, including Barrick, Newmont, Kinross and Evolution Mining, which operates the globally renowned Red Lake mine.
Ardiden believes Pickle Lake offers the best opportunity to provide near-term shareholder value and the additional eight new exploration permits gives the company further high-value targets, while also consolidating its already sizable land holding across three zones, known as the Western, Eastern and Southern Hubs.
The Western Hub has been of particular focus for the explorer, where the drill bit has been whirring across the area’s multiple highly prospective targets in 2022.
A total of 43 drill holes for 5,939 metres along 20km of the Western hub have been completed in Ardiden’s most recent campaign.
The exploration has had particular emphasis on the Bear Head fault zone, a ~50km geological feature which is closely associated with Barrick’s historic Golden Patricia mine (619,796koz @ 15.2g/t Au). Ardiden’s Dorothy-Dobie deposits and the Tonsil and Esker prospects surround the mine on all sides.
Recent diamond drilling results have identified broad mineralised zones, particularly at Dobie, where the company encountered 8.5 metres grading 4.05 grams per tonne of gold from a depth of 92.5 metres. This impressive hit was part of a broader envelope of 26.51 metres at 2.1 grams per tonne of gold from a depth of 77.8 metres.
Results from the Dorothy prospect earlier in the year hit similarly broad mineralised intersects, where the company reported 30.65 metres at a grade of 1.57 grams per tonne of gold from a depth of 31.85 metres.
Ardiden Exploration Manager Haydn Daxter said the latest results have confirmed the targeting strategy along the Golden Patricia trend and supports the company’s broader vision at Pickle Lake as it better understands the controls of gold mineralisation.
“These new results allow us to build confidence around our geological model. The remaining 11 completed holes from the Western Hub drill programme are expected to be reported in October as final assay results arrive from Canada and are analysed.”
The company says the drilling success at four of Ardiden’s gold prospects along the Western Hub underscores the expansive upside to the remaining gold prospects held by the company..
These new results allow us to build confidence around our geological model.
jurisdictions, specifically, more than 30 years of combined Board experience in Tanzania.
OreCorp (ASX: ORR) has confirmed the top-notch conditions of its prime asset, with a Definitive Feasibility Study that positions it to capitalise on its world-class Nyanzaga gold project.
Nyangaza, a gold system situated in the well-established and highly prospective mining region of north-western Tanzania, is successfully de-risked following the release of OreCorp’s DFS in August 2022.
The company’s strong management profile, coupled with the impressive Nyanzaga system and robust economic model, resulted in four independent research reports positioning the ORR price target between $0.84 to $0.95c per share, considerable upside to its price at the time of the DFS.
Financial firm Euroz expresses this sentiment, with latest research stating, “ORR is a unique developer offering potential for +250koz pa production from a single mine.”
VisiblegoldinEskercore.
Recently, Ardiden sold its remaining 20% free-carried interest in the Ontario lithium projects - consisting of Seymour, Root, and Wisa lithium properties - to ASX-listed Green Technology Metals (ASX:GT1).
The sale will boost Ardiden’s coffers by up to $18.5 million, consisting of $16 million cash upfront and $2.5 million payable once a JORC Mineral Resource of 20Mt has been delineated within the joint venture area, with proceeds from the sale to be used in expanded exploration activities at Pickle Lake.
Ardiden retains ~13 million shares in GT1, representing 5.14% of the shares on issue with a market value of around $10 million.
OreCorp’s Matthew Yates said, “Nyanzaga’s DFS has delivered impressive results across all key metrics, demonstrating it can produce more than 242koz of gold per year for 10 years at a low all-in sustaining cost of less than US$1,000/oz, with annual gold production peaking at 295koz in Year 6.”
The DFS estimated a pre-production capital cost of US$474 million with Nyanzaga gold production to deliver a short payback period of 3.7 years post-tax. OreCorp is targeting an attractive concurrent open pit and underground mining schedule, which will produce the optimal economic outcome. Typically, the options of open pit and underground mine within a high-grade gold resource like this allow for operational flexibility over the life of the mine and protect company profits through gold price fluctuations.
OreCorp aims to fully finance the project by early 2023 with a target for first gold in the second half of 2025. OreCorp’s Board and management team has a track record of successful project acquisition, development, operation and value creation in African
In research by Bell Potter, it agrees financing is a ‘key catalyst’ for the project’s success, and the project is located “in a region that is experiencing a resurgence in investment by the world’s largest mining companies”.
Bell Potter research stated: “The NGP has scale, strong margins and the potential for Resource growth and mine life extension in an established gold mining region. ORR screens favourably on key project and valuation metrics compared with its ASX-listed peers, with the NGP one of the most advanced, largest scale and highest grade development projects in the group.”
Other analysts also rated the project highly.
Argonaut’s research said the DFS “reinforces our view that Nyanzaga is one of the best-undeveloped gold projects globally”.
Canaccord Genuity said, “We maintain our SPEC BUY rating, with Nyanzaga remaining among the ASX’s highest quality gold development projects, in our view.”
Asea change is needed if Europe reduces its reliance on fossil fuels and Russian energy. Still, as it stands, developing efficient and sustainably integrated hard rock lithium projects is necessary if the European Union is to become the first carbon-neutral continent by 2050.
Infinity Lithium (ASX: INF) has made significant advances with its fully integrated San José Lithium project in Spain, with recent positive developments giving clear sight towards making a final investment decision on a fully integrated battery-grade lithium hydroxide supply chain by as early as 2023.
The project will be EU’s second biggest hard rock lithium rock resource, producing up to 20,000 tonnes of battery-grade lithium hydroxide from the site over the next 26 years, which could be a game changer for European energy transition aspirations.
The payoff for the Company will go far beyond initial expectations, with the spot price on lithium more than quadrupling since the release of its scoping study in October last year, with the price reaching recent highs of around US$85,000/t.
Even at a modest, long-term price average for the life of mine at US$25,000 at tonne, the qualitatively shifting economics of this energy transitioning commodity is still 47 per cent higher than initial expectations.
And the feedstock should be plentiful, coming from at least 111.3 million tonnes of JORC resources defined in 2018, above 1000 parts per million cut-off grades in the Cacares municipality part of the province in Spain, about two and a half hours drive from Madrid.
Final mine design and test work will determine the extent of drilling to confirm this well-known resource’s size as part of its definitive feasibility study while remaining optimistic about future findings based on
54 holes drilled to date, showing consistent mineralisation and open in all directions at depth.
As a function of ongoing permitting, the Company has been pursuing a legal case to re-access the ground for resourceconfirming drilling and to lodge a resource exploitation concession in 2023.
It has made recent significant headway on obtaining an essential research permit, removed from its grasp following a protracted legal stoush with the City Council halting fieldwork at San José.
providing optionality over the location of our industrial plant within our project area while also acting essentially as an environmental impact assessment scoping document.
“This means, from a political sense, the relevant departments can assess our project before the decision before the courts.”
• steady-state average of 19,500 tonnes per annum of battery-grade lithium hydroxide over a life of 26 years
• pre-tax net present value of $US811 million, and a pre-tax internal rate of return of 25.6%, giving it a payback of just 3.2 years
This means, from a political sense, the relevant departments can assess our project before the decision before the courts.
Infinity CEO Ryan Parkin says the matter remains before the courts. Still, the Company can now rapidly move forward following recent advice that it can lodge an exploitation concession (mining licence) despite the pending outcome of the case.
“We have all the parties locally and regionally calling for the assessment of the project now,” Mr Parkin said.
“So, on the 28th of September, we were able to present an Initial Document
• Total life-of-mine revenues come in at $US7.9 billion
• The study assumed an average price of $US17,000 per tonne with C1 cash costs of $US6,399/t, including a 20% contingency for underground mining operational expenditure.
The tailings production footprint for the project has been significantly reduced against Infinity’s 2019 pre-feasibility study, with more than 60% of tailing, which previously would have sat at the surface, now planned for paste infill underground.
The reduction in the surface impact is all the more impressive because the output from San José increased by more than 25 per cent in the new scoping study measured against the 2019 PFS. The study outlines an average run-of-mine of 2 million tonnes per annum.
Western Australian innovation company Engentus was spawned from inventor Brian Bradshaw’s vision of a nut that eliminates the risk of severe injuries and damaged equipment when removing bolted fasteners. Large forces are often involved in installing and removing bolted fasteners. Far too often, nuts will seize onto the bolt with onerous and risk-bound gas-axing, the only practical solution to remove the nut.
Building the first revolutionary lateral release nut in his workshop that he would call Segnut, he realised that he had engineered out the need for unsafe nut removal methods, which developed into the industry standard for safety, helping to improve the well-being of workers in all industrial industries.
Following the Segnut, Engentus was formed in 2015, proceeding to develop tools putting safety first while also managing to increase productivity.
It is the passion that led to Segnut that has inspired a complete life cycle tooling range, including the signature product, the TopTorque Precision Reactionless Bolting System.
LESS NOISE & RATTLE AND NO HAND-CRUSH HAZARDS
Impact wrenches, also known as “Rattle guns”, are commonly used to install and remove bolted fasteners. However, they do not offer the level of torquing accuracy that is demanded in today’s maintenance practices and, true to their name, blasting an average of 105 decibels of noise, they are capable of causing irreversible hearing loss in less than five minutes of exposure.
Even worse, there is evidence that workers exposed to vibration and noise simultaneously are more likely to suffer hearing loss than workers exposed to the same noise level alone.
Exposure to both vibration and noise is also understood to increase musculoskeletal problems.
Whilst torque multiplier-type tools (aka nut-runners) offer a far superior alternative to rattle guns, they do require a reaction arm to counter the large forces involved in the bolting process – inherently creating a handcrush hazard. Hand injuries are the most common workplace injury and can have a devastating and long-lasting effect on injured workers.
INDUSTRY LEADERS AND THE NEW WORK HEALTH SAFETY REGULATIONS ARE DEMANDING BETTER SOLUTIONS.
The quieter and safety-improved TopToque system builds upon Norbar’s proactive maintenance technology, incorporating safety, control and accountability.
Engentus Managing Director David Izzard says “safety first design” is fundamental to helping to reduce workplace injuries.
“TopTorque was conceived at its outset as a step up in bolting accuracy and safety practices,” Mr Izzard explains.
“The changing landscape in Work Health Safety regulations requires everybody to identify and improve safe working practices.
“Inherently, the TopTorque system does this and brings a new level of precision and accountability to a wide range of industries.
“The lighter, smarter, and more flexible TopTorque tooling system enables today’s diverse workforce to perform critical maintenance functions that historically have required heavy manual handling and specialised skills.
“Engentus remains an engineered solutions focussed company and takes pride in developing strong and enduring partnerships such as with our product distribution partner Konnect Fastening Systems (part of the Coventry Group ASX: CGL); BHP WAIO; H&B Mining; Ready Resources; Elastomers; Joest and many others”.
Engentus has been shortlisted for the Department of Mines, Industry Regulation and Safety Work Health Safety Invention of the Year awards, to be announced on October 28.
With one of its most successful 12-month periods in growth and profitability under its belt, Perthbased construction company WestStar Industrial (ASX:WSI) has now set its sights on even greater success in FY23.
Through its wholly-owned subsidiaries, SIMPEC and Alltype Engineering, WestStar provides industrial project solutions centred around engineering, fabrication, construction and maintenance services within the resources, energy, oil and gas, petrochemical, water and infrastructure sectors.
The company has come off a cracking FY22 where it delivered a 153% year-on-year increase in revenue to ~$181.8 million, 166% year-on-year increase in EBITDA to $9 million and NPAT of $4.3 million.
Contracted revenue awarded during FY22 came in at $237 million with significant existing order book carried forward to FY23 with consolidated Group forward contracted revenue now totalling $120 million.
Importantly, WestStar has a strong tender pipeline of $1 billion, providing the company with significant confidence of further success over the coming months.
WestStar Industrial Group Chief Executive Officer and Managing Director, Robert Spadanuda, recently noted the current strong macro investment cycle for Capex in the company’s target markets presents a solid pipeline of opportunities.
He said WestStar continued to demonstrate its ability to deliver an increased level of construction activity over the financial year despite global logistic challenges and availability of workforce in Western Australia.
“Despite these challenges, WestStar continues to deliver positive results, he said. “Through substantial investment and support, WestStar possesses the capability to tender, execute and deliver specialised multi-discipline engineering and construction solutions across mining, oil and gas, energy, infrastructure and industrial sectors on a significant scale.
“WestStar Industrial is already in possession of significant works under contract and in various stages of completion for delivery in FY23. To date, the company has received ~$61 million of awards for this financial year and combined with its significant order book carried forward from FY22 sees ~$120 million of contracted revenue for the year ahead.”
The company continues to evaluate synergistic mergers and acquisitions to continue its strategy of accessing new geographies and industry segments.
Mr Spadanuda said due to the company’s ability to deliver works for several of its completed and current significant flagship projects (Iron Bridge Wet Plant, Talison Greenbushes, Tianqi Lithium, First Quantum Minerals, Lynas Rare Earths, APA Group, AGIG) WestStar had seen an acceleration of tendering activities in Western Australia’s battery mineral sector (nickel, lithium and rare earth producers).
“WestStar continues to strengthen its position, operationally, geographically and financially. Investors can expect the company to advise the market in the coming months as these contract opportunities are awarded,” he added.
“The company continues to evaluate synergistic mergers and acquisitions to continue its strategy of accessing new geographies and industry segments.”
It is noteworthy that WestStar maintains a strong balance sheet basis, nil debt and access to government export bonding through Export Finance Australia to assist in execution of its growth strategy.
“Buoyant economic conditions forecasted for the resources, energy and infrastructure sectors continue to provide the company with an ever-impressive pipeline of opportunities.
During the year we have completed and significantly advanced major milestones on key projects,” Mr Spadanuda added.
WestStar is firing on all cylinders with its subsidiaries SIMPEC and Alltype Engineering landing and completing a number of significant projects in recent times.
The company’s specialist onshore construction and asset management arm, SIMPEC continues to advance works on the Iron Bridge Magnetite project, the Group’s largest contract win to date, and the progress achieved to date on the project for SIMPEC is a remarkable achievement.
The SIMPEC business achieved a number of record milestones during the year, with the team achieving circa $130 million in revenue, delivering over one million man-hours across all project sites, employing over 700 personnel.
Meanwhile, Alltype Engineering continues to grow sustainably across multiple industry segments, successfully delivering significantly larger and more complex projects for a broad range of clients, particularly in energy, water and resources.
Most recently, Alltype was awarded a new contract for the SMPE&I fabrication and installation of the Kiln Feed Hood and Waste Gas Treatment circuit at the Lynas Rare Earths Processing Facility in Kalgoorlie valued at ~$33 million.
We continue to develop our reputation as a well-respected, safe, cost competitive Group delivering reliable solutions to our clients.
“The investment made by WestStar to acquire this business in 2020 prior to the COVID-19 pandemic continues to be rewarded with access to a differing base of core clients and geographical opportunities,” Mr Spadanuda said.
The company is confident its strategic plan will continue to deliver upon the growth strategy across the Group, all whilst successfully navigating COVID-19, tight labour market recruitment challenges and rising prices of materials.
“Our continuing growth at a profitable rate clearly demonstrates WestStar as a sustainable contracting business,” Mr Spadanuda said. “There is always more work to do with continual improvement in overhead recovery and strengthening margins across the Group through excellent operational execution.”
With a strategic focus on access to Critical Mineral tendering activities in Western Australia’s battery mineral sector (nickel, lithium and rare earth producers) and increased capacity to win new contracts, there is no limitation to opportunities.
“We continue to develop our reputation as a well-respected, safe, cost competitive Group delivering reliable solutions to our clients,” Mr Spadanuda said. “We will continue to attract and retain an experienced workforce with diverse skillsets in growing markets and aligned cultural outcomes.”
Mr Spadanuda said the company continues to investigate endto-end solutions through synergistic mergers and acquisitions to complement the strategy of accessing new geographies and industry segments.
New World Resources (ASX:NWC) is ticking all of the boxes as it moves, strategically, to bring back to life the historic, high-grade Antler Copper Project in Arizona, USA. The company has successfully satisfied a number of milestones at Antler since it acquired the project in 2020.
One important milestone occurred in November 2021, when, following an initial 18 months of drilling at the Antler Project, the company declared a maiden JORC resource of 7.7Mt @ 2.2% Cu, 5.3% Zn, 0.9% Pb, 28.8 g/t Ag and 0.18 g/t Au. On a copper-equivalent basis this comprises 7.7Mt @ 3.9% Cu-equivalent – making it one of the highest-grade copper projects in the world.
The most recent of those milestones was the move to a PreFeasibility Study (PFS) phase following the promising outcomes of a robust Scoping Study.
Key Outcomes from the Scoping Study include:
• Mining a total of 9.3Mt from an underground mining operation at a rate of 1.0Mtpa over an initial 10-year forecast operating life.
• Modest pre-production capital expenditure of US$201m (including US$36.5m contingency).
• Revenue of approximately US$2.0bn (A$2.8bn) over the forecast initial operating life.
• Free cash flow of US$952m (A$1.36bn) over the forecast initial operating life (un-discounted, pre-tax).
• NPV7 of approximately US$525m (A$750m; pre-tax).
• IRR of 42.0% (pre-tax).
Multiple opportunities were also identified to enhance the economics, including delineating a larger mineral resource which could extend the operating life and/or facilitate greater annual production targets.
New World recently further highlighted the upside potential at Antler with significant new assay results from three deep exploration holes drilled to test for extensions of the “Main Shoot”.
The Main Shoot comprises a steeply plunging zone of thicker, very high-grade mineralisation that extends well below the historical underground workings at Antler, which were most recently operational in 1970.
All three holes intersected thick, high-grade mineralisation. The best results were returned from the deepest hole drilled at the Project to date – from which significant results included:
• 21.3m @ 3.3% Cu, 4.4% Zn, 1.4% Pb, 64.8 g/t Ag and 0.72 g/t Au from 1057.2m (21.3m @ 5.3% Cu-equivalent). This interval included an extremely high-grade zone at the base of that intercept, which comprised:
• 7.8m @ 7.6% Cu, 10.6% Zn, 0.1% Pb, 38.2 g/t Ag and 1.30 g/t Au from 1070.7m (7.8m @ 11.3% Cu-equivalent).
The new results increase the down-dip extent of the Antler Deposit to more than 1,000m.
The mineralisation remains completely open at depth, and extensional drilling continues.
“The Antler Copper Deposit keeps on getting better and better the more we drill!” Managing Director and CEO, Mike Haynes, said in announcing the new results.
“We are clearly onto a very significant VMS deposit! And with the mineralisation remaining completely open at depth, we are continuing to drill deeper and deeper to continue to expand the resource base.
“We have assays pending for several holes drilled to test the depth extensions of the adjacent South Shoot. We anticipate receiving those assays in the coming weeks. We’ll then update the JORC Resource so we can complete further mine design work on that updated Resource as part of the Pre-Feasibility Study.
“It is highly likely we’ll be assessing a significantly greater production profile and/or a longer mine life in our PFS than we evaluated in the recent Scoping Study. That is likely to further enhance what are already very robust economics for developing the Project.”
New World Resources clearly has the exciting Antler project firmly by the horns as it progresses towards development.
project CAPEX of US$74.8M and an All-in Sustaining Cost of below $30/lb U3O8.
The fundamentals of the uranium market are solid, and they continue to get stronger, driven governments worldwide are becoming starkly aware - particularly those in cold climates - renewable power will not be able to deliver the required energy.
Nuclear and hydropower form the backbone of low-carbon baseload electricity generation, providing three-quarters of global low-carbon generation, according to the Nuclear Power in a Clean Energy System Fuel report from May 2019.
The global response has been palpable, with the UK, China and even Japan, and others spearheading a global shift in sentiments towards nuclear energy. As the climate crisis worsens, the discussion intensifies over what role nuclear power should play in fighting it.
The 2021 edition of the World Nuclear Association’s ‘Stated Policies Scenario’ is forecasting a nuclear capacity growth of over 26 per cent from 2020 to 2050 (reaching about 525 GWe), meaning a reliable supply of uranium will be needed to meet demand which is forecast to rise to 79,400 metric tonnes of elemental uranium (MTU) in 2030 and 112,300 MTU in 2040. In 2021, global uranium demand from nuclear reactors was estimated at 62,500 MTU.
The move has been fuelled by the acceptance of uranium by leading nations as the only alternative to fossil fuels to deliver a sustainable baseload power source capable of supporting 65 to 75 per cent of global renewable energy targets.
With Tiris Resources’ recent beneficiation pilot plant providing a great example by confirming up to 600 per cent upgrade of uranium grade and just a fraction of the resources utilised, Aura’s COO Will Goodall is understandably upbeat.
“We converted 19Mlbs U3O8 at 100ppm cut off to Measured and Indicated status to support the Reserves (8.8Mlb at 175ppm cutoff) in Feasibility Study production targets, and there is plenty of scope to increase this proportion.
“The infill drilling this year has been undertaken to push the proportion of the measured and indicated resource up to support expanded production targets and make the best use of the resource.
“So, if anything, we should say that historic drilling hadn’t converted the optimal number of Inferred Resources to M&I.
“We have a high level of confidence with a 65 per cent conversion of hitting or coming close to our target because while the mineralisation on the short scale is variable – on the long scale is consistent, which will give us sufficient material to expand our aspirational 3 million pounds per annum production rate.”
“Our focus is to become one of the first greenfield uranium producers in over a decade. New reactor builds are being announced with almost unprecedented regularity, adding to the fuel supply requirements.
This acceptance paints a rosy picture for quality uranium producers to meet energy producers’ demand for reliable supply.
Aura Energy (ASX: AEE, AIM: AURA) is expecting the Final Investment Decision (FID) on its 800,000 pounds per annum Tiris uranium project in the low-risk jurisdiction of Mauritania by early 2023 and mammoth expansion following.
Aura’s Tiris project is one of uranium’s few near-term development prospects. The project’s Definitive Feasibility Study (DFS) highlights the potential for the planned mammoth upgrade leading to low
Uranium will have a colossal role in meeting the planet’s ongoing energy needs. The numbers have been in for a while, leaving world leaders with the challenge of shifting public sentiment over their inevitable nuclear future.
The war in Ukraine is fueling supply disruptions for energy and related commodities worldwide. The intrusion comes when covid-weary nations are forced to consider the role of nuclear power to avoid future energy poverty. Australia accounts for just under one-third of the world’s most considerable uranium resources.
Kingsland Minerals (ASX: KNG) Managing Director Richard Maddocks hopes their work is advancing exploration at the Cleo uranium project — one of four exploration projects held in the Northern Territory that may contribute to the nation’s commanding position as a dominant supplier of the world’s critical minerals into the future.
The Pine Creek Region has an exciting story of uranium exploration and production. Initial work at Cleo was completed in the early 1980s, which led to the discovery of uranium mineralisation in the area. — unbelievably, it was mainly left unexplored as the company involved went off instead in pursuit of other commodities.
The prospective geology lies close to a granite-graphitic shale contact, a well-defined zone for uranium mineralisation. The history and rocks combine to make a compelling case for a thorough investigation, according to Mr Maddocks.
A previous company acquired the land four years ago, which was introduced
into the Kingsland float in 2021. Drilling began this year, and the initial exploration results are recognised with the potential and upside of uranium mineralisation.
The maiden drilling program consists of approximately 3,800m of reverse circulation (RC) drilling and 900m of diamond. The initial results from the RC drilling have delineated broad, high grade intersections of uranium mineralisation. Diamond drilling has commenced and is targeting deeper extensions to the mineralisation.
“We are very excited by the results received to date and the future prospects for developing the project.” said Mr
“The previous exploration work not only had significant results for uranium but also for copper and very early-stage exploration models for graphite mineralisation.”
Copper and graphite are also essential components of any electric-powered
energy source. Kingsland Minerals plans to begin programs for both in 2023.
The NT projects are well-placed to access Asian markets, with Pine Creek just 225km south of Darwin.
“The region contains fantastic infrastructure, a history of mining and no ongoing land access issues, which leads it to be a fantastic opportunity for exploration and further development work in the future.”
Kingsland Minerals has been listed on the ASX since June 22, 2022. They are currently trading at $0.19, with a $2.8 million enterprise value using cash at the bank on June 30.
“When we look at equivalent companies, our peers in the uranium exploration scene, we see they have significantly higher market capitalisations.
“We believe that with our exploration success, based on our recently released results and the upside and potential of copper and graphite, we will see our share price grow dramatically in the next 12 to 18 months.”
Rare earth elements (REEs) have been in the news consistently due to their increasing importance in our day-to-day lives. Most of the global REE mining is in China, but due to the rising geopolitical risks, international suppliers are looking to other markets to source their rare earth.
Arafura Resources (ASX:ARU) grabbed headlines in May when it signed a deal with Hyundai in Korea to supply a large portion of neodymium-praseodymium (NdPr) oxide production from its 56Mt Nolan’s Bore project in Australia’s Northern Territory.
Management expects the electric vehicle industry to be the biggest driver of demand for its products. Electric vehicles are expected to grow by 60 to 70pc in 2022, up from 6 million sold in 2021.
Growth EVs will be around 30 to 40pc in 2023, providing plenty of opportunity for the Company to grow its revenue.
Meanwhiles wind energy industry is predicted to be another more extensive user growing by around 30pc over the next four years and then by another 13pc a year until 2030.
A NEW WORLD
Green protocols are driving governments planning to spend record amounts to increase renewables 20-fold in places such as Europe.
In most cases, NdPrs are needed to make powerful permanent magnets fundamental for electric motors and wind power turbines to generate 300 gigawatts of energy targeted by the European Union by 2030.
This canyon is not filled with expectations.
It will reach 45 kilotonnes between now and 2030, creating another exciting opportunity for Arafura.
Australia, having met its Large-scale Renewable Energy Target in 2019, is ramping up pressure from high energy users to drastically reduce reliance on fossil fuels.
As more renewable energy is produced beyond the 33,000 GWh target, the number of LGCs generated will continue to increase, leading to an oversupply in the market that will significantly reduce their value. Futures markets indicate that LGC prices will fall significantly over the next ten years, with some analysts predicting that their value will fall to zero by the time the RET expires in 2030.
Renewable Energy Target (RET) is a Federal Government policy designed to ensure that at least 33,000 gigawatt-hours (GWh) of Australia’s electricity comes from renewable sources by 2020 is no exception, as the government significantly reduces the economy’s carbon intensity. Significant demand for EVs, solar panels, and technology such as medical equipment, for example, MRI machines, from Australian consumers bode well for Arafura.
Neodymium-praseodymium (NdPr) is a critical rare earth element, the rare primary earth produced and sold into a significant supply gap.
This canyon is not filled with expectations. It will reach 45 kilotonnes between now and 2030, creating another exciting opportunity for Arafura.
NdPr is versatile — used in everything from drivetrains, vehicles, wind turbines, consumer electronics, e-mobility, air conditioners, and robotics. It is an integral part of the global electronics supply chain, making it very important that the supply for the element
