Member Info for Arbroathsmokey

Friday greetings to all you well informed Kendrick investors. I come from the Altona Rare Earths board. Hope you don’t mind the interruption. Well done to you all!

We (Altona shareholders) also have a LREO resource contained in a carbonatite intrusion (along with lots of other goodies). Our main problem is that no one currently seems to be buying our shares for some unbeknownst reason.

I was wondering if one or two of you would consider being awfully nice and perhaps buying a few? Thanks.

I like Charles Archer. He seems a safe pair of hands to manage PR. My personal concern is that he reminds me a bit of an analyst called Paul Kavanagh ( I think) who, back in the day, promoted tech companies like Kewill Systems. Happy days. This is from Google.

Charles Archer's View on Mining PR

Archer is a vocal critic of poorly executed or overly aggressive public relations in the junior mining sector. In his commentary regarding resource plays, he emphasizes several key points about corporate communications:

Over-Promising Red Flags: He flags "overly aggressive marketing" from CEOs or PR representatives as a major warning sign to run from an investment.

The Perils of Promotional Hype: He warns against management teams that market their assets as "the best thing since sliced bread" or promise billions in revenue with minimal capital outlay.

Hi gemrusty,

I doubt they would have known that one of the waste streams from the processing plant would be comprised of rare earths components that partitioned/concentrated to potentially economic levels for recovery. Rare earth elements dispersed at uneconomical concentrations are ubiquitous. They (we) got lucky but I think this only became evident when the process scheme had been piloted.

Continuing the KEN comparison theme…

KEN have today announced a NPV ‘estimate’ for their resource almost identical to Altona Rare Earths upside NPV from 3 years ago (based on 10% discount rate). Not surprising because theirresource is similar ( but unproven).

They never seem to use Altona in their comparison tables. Good luck to them.

From translation…

‘Mina da Lagoa Salgada will create about 300 direct and more than 700 indirect jobs, reinforcing local employment and offering new opportunities for young people and workers in the region. Whenever possible, the hiring will privilege residents of Grândola, Alcácer do Sal and Alentejo Litoral.’

‘ The project includes vocational training programs, essential to qualify the population and support the fixation of young people, creating skills that remain in the region’.

Good to see Redcorp are attempting to influence the local population and politicians.

In hindsight, KEN management have played their cards very well to obtain their fund raise and good for them. My understanding is that they need the funds to obtain a formal JORC resource and attract further investment. Overall, it is good for REE investors that they are making a strong case for investing in proven rare earth resources.

The market must eventually remember that REE already have a JORC resource of a similar magnitude to the KEN estimate (above grade), the luxury of secure funding from the US government, a JORC resource for fluorspar (with declared NDAs with potential financing partners), a JORC resource for gallium, potential heavy rare earths reserves, and a Mozambique copper/silver exploration exploration license (comparable to one of Serval resources better opportunities).

My understanding is that KEN and REE differ because the KEN ‘sunny uplands’ story is that their below grade rare earth reserves may be much larger (when proven) and their jurisdiction carries less risk. Good luck to both companies, the future market for rare earth concentrate will be big enough for both companies.

Https://minadalagoasalgada.pt/emprego-e-progresso/

Apologies. I meant 2p warrants

395094 added. Reached my self imposed limit so no more for now. Unless there is a change in notified interest then the selling maybe due to warrant conversion and then selling of resultant shares. The supply of warrants is finite (and the 2.5 p warrants will expire within 12 weeks regardless). I am going to to let them flush through and then take stock. What else has changed?

It’s an opportunity in my opinion. Just picked up 403,500 at less than 2.5p. I can afford to patiently wait for value to be realised.

… Taking silver as an example.

The economic concentration of silver in host rock is highly variable, generally requiring a minimum grade of 150–300 grams per tonne (g/t), or about 5–10 troy ounces per ton, for mines solely focused on silver. However, because roughly 75% of global silver is produced as a by-product of base metal mining (copper, lead, zinc), the economic cutoff grade can be significantly lower (sometimes less than 35 g/t Ag) if other valuable metals are present.

My understanding is that fluorspar concentration in the host rock is 20%. Gallium is contained at 50ppm (wt) in the fluorspar host rock and also in host rock outside of the fluorspar envelope hence there is a lot of it but the processing economics would differ significantly. A standalone fluorspar project is very likely to be economic and there is a massive opportunity if gallium can also be recovered from the fluorspar tailings. Favourable standalone gallium project economics are dependent on the ongoing technical studies (and may be assisted by independent work funded by third parties). 50 ppm is good for a precious metal project. I am assuming g/t is equivalent to ppm (wt) but I could be wrong. Happy to get shot down in flames.

Apologies. It is 15% not 10%. Again, this doesn’t concern me. I actually think it’s a good thing because it provides stability.

Mozambique is considering a law change that obliges the state owned mining company to own at least a 10% equity stake in mining projects. It was debated in their parliament in the first week of May. Personally I don’t think that is a bad thing at all but it may have spooked some investors. (Some gold mining companies got burned when Burkina Faso and Niger egregiously nationalised their mines- many of those mines ceased working due to technical issues so everyone was a loser).

The Growth Capital Facility (GCF) RNS advised that the proceeds would be used to support the work programs described in the Fluorspar/Gallium MRE and the continued implementation of the Company's diversification strategy. Sesana is part of that strategy.

I think it is a reasonable expectation that Altona will draw on the GCF to progress Sesana project drilling and satisfy their contractual commitment. Therefore, it is reasonable to expect that Altona management plan for the share price to increase 33% to 4p to allow them to fund the project.

Altona management has access to information that we do not have access to e.g., as speculation, it is in the public domain that Altona have entered at least one NDA with a European entity operating in the fluorspar sector for collaboration across extraction, offtake, and staged project-level funding. The share price must increase if (or when) market is informed of a commercial agreement. That is only one example.

Alternatively, there is a very slight risk that Altona management went full on genius and they have completely lost control of funding.

(Apologies if I am posting information that is widely known. Hope it helps someone new).

Hi Scott,

The only news that I am aware of was released on 27/01/25 when Altona entered into a final agreement to acquire 85% of the tenement. The CEO advised that the project is in the environmental permitting stage during an interview 11 months ago.

“Can you share project highlights of the Sesana project in Botswana? What can we expect out of this project in the near-term?”

“Sesana is a very exciting copper (and silver) project. It is in the Kalahari Copper Belt, a very “hot” copper province of Africa, with strong M&A potential considering the recent A$40M deal between BHP and Cobre, and the fact that MMG, currently producing from its Khoemacau Zone 5 mine located just 25km from Sesana, seeks to expand its production capacity. A key feature of the Kalahari Copper Belt is that copper silver mineralization occurs along the contact between two sedimentary formations which have strikingly different geophysical signatures. As a result, the position of the areas of potential (the contact zones) is well identified from regional airborne geophysics. The Sesana licence is located on one of these contact zones and was one of very few such licences still available when Altona acquired it.

The project is currently in the environmental permitting stage. Altona will use an array of airborne and ground geophysical methods to narrow down on drilling targets, with the first drill-holes expected by the end of his year.”

Phase 1 required Altona to pay $50,000 in Altona shares to earn 51% by committing a minimum of $100,000 to geophysics.

Phase 2 to earn 70% requires $50,000 cash and $100,000 in Altona shares by committing to $400,000 drilling a minimum of 2,000m. So, I would guess that the company is now focusing on obtaining the necessary permits and allocating funds to start drilling.

Timelines were advised in the RNS but I am not aware of how binding they are.

Hi tbow

'Does it say "by road" somewhere ?'

Yes. From page 168 of the 'Report for Altona Rare Earths Plc Monte Muambe Competent Person's Report and Scoping Study Project Number JB207282

April 2024 '.

'All ROM mineralisation reports to the beneficiation plant. First stage planned recoveries are 60%, which will produce a concentrate with 10% TREO. This concentrate product will report to the on-site hydrometallurgical plant, where planned recoveries of 80% will be realised. A refined, final MREC product,

with planned purity of 55% TREO, will be produced by the hydrometallurgical plant. The MREC will be stockpiled, bagged in 1 t bulk bags and then transported in 20 ft containers (by road) to Beira port. At the port the bags will be unloaded, warehoused and then loaded onto ocean going vessels. '

...

Copper

An exploration opportunity. The Sesana Copper-Silver Project in Botswana is 25 km from MMG's copper-silver mine. Situated on a recognised regional contact zone for copper deposits. If Altona fund and execute a drilling campaign that makes a discovery, then they could monetise by selling to the owner of the adjacent mine.

3 of 4??. I got it wrong.

Gallium (and potentially heavy rare earths)

JORC MRE status 11.73 million tons at 54.7 g/tons gallium oxide for 641 tons of gallium oxide contained. Gallium mineralisation extends beyond the fluorspar and REO envelopes hence the tonnage of the gallium resource is higher than the fluorspar resource. Less than 20% of the anomaly has been drilled so the resource will increase as the project matures. Gallium is a strategic and critical metal whose supply is currently constrained by being produced as a byproduct from processing other metals (mostly in China).

The Monte Muambe gallium MRE is unique (a first for a carbonatite host). Altona are funding on-going gallium metallurgy test work to confirm whether a potentially viable pathway to gallium recovery exists.

Rare earths were sampled as part of the fluorspar and gallium MRE preparation. Results showed that the samples contained 3,200 ppm TREO and 1,300 ppm HREO, a HREO/TREO ratio of 40% (significantly higher than that of the Monte Muambe rare earths deposit which contained a HREO/TREO ratio of approximately 5%). Individual HREO concentrations in the Monte Muambe fluorspar and gallium ore sample are like those reported in the resource statement of the Lofdal (Namibia) heavy rare earths project, which is a project supported by the Japanese Government and Toyota Tusho. Heavy rare earths (including dysprosium, terbium, and yttrium) are classified as critical minerals due to their essential role in enhancing the performance of neodymium magnets. Compared to light rare earths, heavy rare earths are scarce and of higher strategic importance.

The company has initiated mineralogical/testing/process studies and may incorporate heavy rare earths into a future MRE update (Altona management did not want this work to impact the fluorspar and gallium MRE schedule).

Note the use of tons to describe weight.

...

Acid grade Fluorspar

JORC MRE status: 716,000 tonnes contained, with an exploration target of up to 3.2 million tonnes and further upside potential beyond the current MRE. Additional drilling is expected to materially increase the MRE and could support an operation producing up to 100,000 tonnes per year. This drilling is not planned immediately but is expected to form part of the project’s DFS once (when?) the ongoing scoping study confirms viability. Metallurgical results are likely to be favourable, as the relevant processing and separation technologies are well established. Fluorspar is a critical mineral facing a forecast global supply deficit. Funding to advance the project through detailed design, mine construction and into production may be achievable with minimal dilution to existing shareholders. In my view, this project provides a backstop that helps de-risk the company’s other projects.