MarketOpen(ed) Issue #7

A HISTORY OF INQUIRY

Richard Maddocks

A life of colossal discoveries

DREAMING OF SWIFTY

The Lizard King takes comfort in Swifty after the stock market drops like a rotten sack of potatoes after a promising start to the week.

A LIFE OF DISCOVERY

Richard Maddocks, the managing director of Kingsland Minerals, has been following a family tradition in geology, which has resulted in the discovery of his 30year career.

03 OPEN(ED) SHORTS

Despite another forgettable week for many ASX listed hopefulls, MTM Critical Metals, Burley Minerals and hard to spell oil and gas play Sacgasco all had a half decent run.

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THE LIZARD KING

Markets opened with optimism on the week, with good jobs figures coming from the US, and ASX investors got themselves ready for the RBA to keep its cash rate on hold. Then, Wall Street fell after a business survey showed the wrong numbers and the RBA threw investors a rate hike curve ball. And the ASX may as well have been playing checkers. According to ASIC, the exchange will keep the CHESS system in place, and the financial regulator will undoubtedly watch our trading. Well, not mine! I lose all my money above the board, thank you very much. Speaking of CHESS, if you come at the queen, you best not miss, and Aerison Group found this out the hard way, collapsing after unsuccessfully trying to settle a claim with Gina Rinehart’s Roy Hill iron ore operations. But that is all I am willing to write about when it comes to Ms Rinehart, with the terror of an instant reveal of a Mr Burns-like team of high-priced lawyers as ever-present as eagle attacks in my humble lizard brain. A predicted wave of mining mergers and acquisitions continues to bubble. Hopefully, shareholders can see better returns than PGA golfers, who must be furious after turning down hundreds of millions to retain the dignity of a preachy organisation that swiftly took Saudi cash as soon as terms were correct.

Trump predicted precisely what would happen last year to the half-dozen real people who use Truth Social, but his real challenge remains to find a good nickname for Ron

DeSantis. Well, that and the indictment. It has undoubtedly been a busy week for the cult-like following of single-minded obsessives that desperately search for meaning in everything their leader does – I’m, of course, talking about Taylor Swift fans. Like Adani, Taylor went into damage control after a short call as some unsavoury comments from her new beau emerged. However, her brief dalliance with Matty Healy gave hope of a superstar romance to every maladjusted edgelord who fancies himself a comedian – me included.

An overall gloomy week for the ASX but a decent week for our miners as materials led the way with a 4.4 per cent sector gain, which is what we all like to see, right folks?

A history of inquiry

Richard Maddocks, an avid history lover, once witnessed the discovery of dinosaur fossils outside of Alberta in Canada – now he is measuring the scale of a gigantic prehistoric graphite discovery in Australia’s Northern Territory.

Richard Maddocks was exposed to geology from a young age due to his family’s interest in the subject. He inherited old geological diagrams created by his grandfather in 1919, which remind him of his family’s passion for the field. Richard has been fortunate enough to pursue a career in geology for over 30 years, and he is excited to reach the peak of his career with his latest discovery.

“My father was studying at the University of Alberta in Edmonton, in the middle of an area well known for its dinosaur fossils. During a summer, a friend of my father’s found dinosaur fossils on their land while the ice was melting. My interest in natural history increased tremendously after he gave me the day off from school to watch a palaeontologist from the town’s Museum examine the fossils.”

“The fossils turned out to be from a duck-billed dinosaur, which you can imagine would be a surreal experience for an 8-year-old who was already fascinated with these creatures, much like other children at that age.”

From formative times, Maddocks has grown to become an industry-r,espected mining geologist who has worked for some of the world’s largest mining companies and has made significant discoveries throughout his career. He now manages the Kingsland team and is pleased with their recent discovery of potential graphite in Australia’s Northern Territory.

“You can make a big difference at a large compa-

ny, but I preferred to work as part of a small team where you make and live by your daily decisions. Working in a small exploration enterprise like Kingsland has made it a simple process to move the focus from uranium at Allamber to the Leliyn graphite discovery nearby.”

The Leliyn Graphite discovery spans 20km and contains an estimated 200-250 million tonnes of graphite with high levels of graphitic carbon and flake sizes of up to 160 microns. This graphite is highly sought after for battery anode material as the demand for electric vehicles increases, and graphite prices are expected to rise significantly. The discovery is timely as demand for graphite is projected to surpass current supply levels by over 600 per cent by 2035. The graphite project is just 250km from Darwin Port, with direct rail access and existing infrastructure. With a long history of mining and exploration, the project has the potential to become a world-class project.

“I’ve served as a chief geologist in several mines, including Thunderbox Gold Mine, Kanowna Belle Gold Mine, Lake Johnston Nickel Mine and Paddington Gold Mine,” Maddocks says. “I have recently been consulting, specialising in resource estimation and project assessments. I can deliver top results for any mining project with my expertise.”

What’s your background?

I graduated from RMIT in Melbourne in 1987, and since then, I’ve worked in production and development roles in Western Australia, South America, and Papua New Guinea, assessing projects worldwide. I’ve been a chief geologist at several mines, fo-

cusing on resource estimation and project assessments. Your career in geology could have taken various paths. Can you share why you ultimately chose to mine?

I completed my graduation in 1987 when there were abundant job opportunities for geologists in WA due to the flourishing gold mining industry. Mining seemed a natural progression, following in the footsteps of my grandfather, who hailed from Maldon, a gold mining town in central Victoria. My grandfather had often recounted stories of the gold rush in the early 20th century, and my childhood visits to Sovereign Hill further piqued my interest in gold

mining. My first job involved working underground on the Golden Mile in Kalgoorlie, an old-fashioned mining site at the time with handheld tools, rails, one-tonne skips, and underground shafts. This experience made me realise my passion for gold mining, which has a rich history, fascinating geology, and technological advancements.

How did you start your career in mining geology in the 1980s? What changes have you observed in the industry since then?

The mining industry has come a long way, with computerisation being a significant transformation allowing more precise approaches. It is fantastic to see the progress

made through experimentation, and it’s remarkable to compare the present day to the 1980s.

Mining techniques have improved in the past 35 years. Computers now play a crucial role in providing accurate control and estimation methods, whereas primitive methods like paper records were used before computer modelling became available in the 1980s.

Are modern advancements more exciting, or have we lost some charm?

I don’t think so. Learning and trying new things is always exciting. I enjoyed going underground daily while working in gold mines in my previous jobs. It was always fun to observe and discover something new on every shift. Although I’m not working underground anymore, I still experience the same feeling of excitement in other aspects of my work. There are new challenges every day, and it’s just as thrilling.

What do you find most exciting about using the tools you have available for your work today?

As the managing director, I am thrilled to see the company’s growth. Our share price is essential as it reflects the public’s perception of our company’s value. Witnessing an increase in our share price and company growth is highly rewarding, and it motivates me to work towards building a successful and sustainable company.

If people who know you well were asked to describe your personality, how would they do so? What do you think their perception of you would be?

I have extensive experience and believe in working with honesty, conscientiousness, and level-headedness. Before making any decisions, I ensure that I gather all necessary evidence. I also prioritise working collaboratively and maintaining a positive relationship with my team members. We work closely together and function as a cohesive and effective unit.

How did you first become involved with Kingsland?

I have a long-standing professional relationship with Nick Revell, one of the directors, spanning almost 25 years. We collaborated at Paddington Goldmine in the late 1990s and have stayed in touch on and off through various work-related matters. Through Nick, I met Bruno Seneque, another director. Our discussions about Kingsland began around 2 1/2 years ago, and we worked

together to assemble the tenement package. Working with trusted friends has been a fulfilling experience, and the project has been successful thus far.

Can you share your experience transitioning from uranium to graphite during your journey upwards?

We made an easy decision to focus exploration on the Leliyn graphite project after seeing outstanding historical drilling results and realising the massive potential of the area. It’s not often that you get to work on a world-class project, and I’ve been fortunate in the past with gold to have done this. Now, there’s another opportunity to work on a world-class ore body but with graphite. What knowledge have you gained during your journey?

As a junior explorer, your success depends on the projects you take on, so it’s essential to stay flexible and agile. It’s crucial to always be on the lookout for opportunities, to raise funds at the right time and keep your business going. Recognising and taking

advantage of these opportunities can position you for success. Graphite, for example, was once a niche market, but it’s now gaining momentum, and we’re taking advantage of that potential. It’s important to remember that you must have a strategy in place - it’s essential to be agile and knowledgeable enough to recognise when you can take advantage of commodity prices. However, it’s also important not to constantly switch your focus to whatever has the highest price quote at the time. By staying flexible and having a strategy, you can position yourself for long-term success.

Man & Machine In Sync:

Based on your understanding, if everything goes smoothly according to plan, how long do you estimate it will take to bring this project into production?

From Superbike racing to Exploration at Comet Lithium’s Liberty Project

It’s important to remember that the process is still in its early stages and has many hurdles to overcome. The next crucial step is to delineate a resource, which is anticipated to happen either later this year or next year, pending the metallurgical test work results that will determine the best course of action. If the exploration proves successful, is the location suitable for downstream processing and export?

phitic schist is a positive thing, especially since it is of a size and quality that makes mining relatively easy. However, the next step is metallurgy, which we still need to test.

Do you have the right team of experienced professionals for this project?

Was it challenging to persuade the board to switch from uranium to graphite?

It was easy because it’s such a fantastic deposit, and I mean it; it sells itself this deposit, its size, and the location of it. It sells itself. We’ve been lucky to be in the right place at the right time, but you make your own luck, and we’re doing that. How cofident are you on the consistancy of the flake size?

We have limited samples, but previous explorers discovered medium-sized flake graphite in one hole. This gives us confidence that there is flake graphite present. Our next step is to conduct more drilling to assess the size and distribution of the graphite grade and flake size, as well as other characteristics. Although it’s still early, we’re off to a good start knowing that flake graphite is present here.

The location is ideal as it has a port, railway lines, gas pipelines, and high-voltage electricity lines, making it well-equipped for development if it were to progress.

Can you clarify how valuable the graphite deposit is and why it has production potential? I’m interested in its mineral makeup.

We have discovered a significant amount of graphitic schist, including some medium-sized flake graphite. Though we have yet to conduct thorough metallurgical testing, we are confident in the potential of our findings. We still await reliable data from actual test work, but the indications have been positive. Have you become more confident as you continue to interrogate the strike?

We have been drilling and have found good intersections, as we announced a week or two ago. Having a large deposit of gra-

Our board comprises skilled individuals with experience in exploration, development, production, and business. They include two geologists, and each member has diverse knowledge to oversee our operations. Nick and I focus on geology, Bruno handles commercial and corporate aspects, and Mal Randall has extensive corporate experience as chairman.

Exciting times are ahead. What can we expect for Kingsland for the rest of the year?

We’re drilling to get resources and doing metallurgical test work. We’ll have results by year-end. It’s a lengthy project, but we’ll prioritise completing the necessary test work. Most of this year will be spent analysing drilling results and getting preliminary metallurgical results. Converting a small portion of the exploration target to a Mineral Resource can still result in a significantly sized resource compared to other Australian projects.

Is Kingsland interested in pursuing a career as a developer and explorer, or are they seeking partnership opportunities for these pursuits?

The focus now is on getting the Mineral Resource, and if we are successful in doing this

and we’re successful in providing favourable metallurgy, we’ll see what happens after that. Many companies,like car manufacturers, are starting to invest in some of the upstream ends of their business, investing in lithium and graphite companies. So, we’d be open to that. But you know it’s early days.

There’s a long way to run with this project. What’s the status of your other projects? Our projects focus primarily on uranium and graphite, but we also have potential for copper and gold. The price of uranium is showing positive signs of increase, and we’re keeping an eye on this. As a new company, we have yet to have the opportunity to explore all our options fully, but we have many possibilities for targeting different commodities in the future. We will continue to work on these projects and determine our approach in the coming years.

A Family Tradition

Maddock’s grandparents attended Melbourne Teachers College and studied geology at Melbourne University, which was situated next to the campus back then. His grandfather kept some old notebooks containing geology sketches from excursions around suburban and rural areas near Melbourne, dating back to 1919. About 30 years later, his father also studied first-year geology while pursuing his arts degree at Melbourne University. Following their footsteps, Richards used the same notebooks for his research and excursions while studying for his geology degree in the early 1980s. He was amazed to visit the exact locations and see the areas where his grandfather once stood and did his drawings – it felt like looking at a family photo or a familiar picture on the wall. Richards’s childhood memories of collecting rocks were supported by his father and grandfather, who encouraged him to pursue higher education. His grandmother, a primary school teacher, even remembered the chemical formula for various minerals, learned during her first-year geology studies in 1919. Richards is proud of his family’s heritage, especially his grandfather’s interest in mining, and he remembers him asking about the prospects of the mines he was working at when he visited him from Kalgoorlie. Although his grandparents are no longer with us, their legacy lives on.

chIn Sync:

MTM CRITICAL METALS

Paydirt at Pomme Project

(ed)Shorts

BURLEY MINERALS SACGASCO LIMITED

Early Bounty for Burley Cashed up for Cadlao

The market took little notice, but it was a cracking start to drilling for MTM Critical Metals at Pomme after its first diamond hole struck 500 metres of visual mineralisation. The Canadian rare earth and niobium play might have to wait for grades for investors to take note. Still, they could be significant given the vibrant red in the core samples – and MTM already sees vindication in its confidence to make an important discovery.

In another early victory for a Canadian campaign, the first three drilling holes at Chubb returned with intersections over 1.2% lithium oxide for Burley Minerals. Chairman Bryan Dixon said such results in a brief period were a significant milestone for the company. It builds up a high-grade spodumene zone, and spodumene is also evident in the unassayed drill holes – leading Burley to the conclusion of southeast extensions lying at greater depths.

Sacgasco inarguably won on Wednesday with a share price ascending by 133 per cent after striking a deal with a state-owned subsidiary to get drilling on a dormant Filipino gas field which once produced at a peak rate of 6000 barrels a day. The target is 6.2 million barrels of economically recoverable oil. Sacgasco should be able to round up a few more bucks to make it a reality with an energy-hungry government at its back.

Man & Machine In Sync:

‘He was having a go’ is a unique Australian expression that doesn’t necessarily imply winning but giving it your all. Those familiar with Mike Ferreira’s superbike racing days knew he was always fully committed to doing just that.

Mike has seen and lived the speed of superbike racing zooming at 300 kilometres per hour to the safe and slow pace of a drilling program at many a mining project. Both lifestyles are opposites. The glamorous life of superbike racing requires grit, resilience, obviously speed, no margin of error, and supernatural focus. On the other hand, mining forces you to go slow, needing a high safety standard, working through rough terrain with steel cap boots. It also demands laser sharp focus, which Mike has developed in spades. He brings this to his game every day, either on the ground or in the boardroom, where the speed of things picks up.

Comet Lithium President & CEO

Mike Ferreira is an Ontario boy born and raised. Still, he has

made Quebec his home since 2012 and is about to lead a 10-strong crew to their first field exploration program at the Liberty Project in the province’s lithium-rich Trieste formation.

If location has a premium, Liberty ticks all the boxes. The project shares the fence with Winsome’s Adina project in Quebec, which recently discovered abundant bearing lithium-bearing pegmatite in multiple drill holes, just 700 meters from the Liberty border.

Mike and crew will be spending 4 weeks at the Mirage Outfitters Camp, situated about 60 km north of Liberty, which they’ll be sharing with crews from Winsome and Patriot Battery Metals which has a big discovery in another part of James Bay.

The Liberty field exploration program is 10 months in the making, with focused insight from a High-Resolution magnetic survey backed up by high-resolution satellite imagery. Comet Lithium is bringing further rigour by utilising the same geoscientist who has provided multiple services to neighbouring Lithi-

um exploration sites. During the four-week exploration program, crews will be testing an important 2.75-km-long and 500-metre-wide magnetic low corridor, which early insight suggests is on strike with Winsome’s pegmatite system. Field crews will also spend a decent amount of time in the project’s north half, identified as 6.5 km magnetic contrast. Finally, the team wants to validate the hypothesis that the two systems, “South Primary Structure” and “North Secondary Structure”, are connected.

Comet Lithium’s Mr. Ferreira commented, “The presence of a low magnetic signature is trending in line with Winsome’s current drill campaign. My team and I are committed to a rigorous field campaign that will lead quickly and seamlessly into a first-ever drill program. We look forward to testing the interpretations and possibilities. We’re determined to deliver shareholder value in 2023 through focused, effective work on the ground that results in an exciting new drilling discovery at Liberty.”

From Superbike racing to Exploration at Comet Lithium’s Liberty Project