Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Any idea when can we expect to receive drilling results from Zambia? Incredible that the share price is so low with a strong copper price and the expectation that drilling results from Zambia should be fantastic.
Taken from Reuters:
"BEIJING/HANOI (Reuters) - BHP Group (NYSE:BHP)'s proposed $39 billion buyout of Anglo American (JO:AGLJ) is a big bet on copper that could spark a scramble for mining assets as a bullish demand outlook and tight supply for a mineral crucial to the energy transition sends prices to multi-year highs".
Second buy of the day for me.
Tweet from Orosur confirms OMI intends to start drilling as early as May and it is purchasing its JV partner Minera Monte Aguila. So OMI is not only getting ANZA back but also getting other applications that Monte Aguila obtained on its own. Those applications are very prospective and if I am not wrong they are close to ANZA. Looking very exiting for the next 12 months.
"Contrasting this, however, Orosur
may well be open to discussions with Agnico regarding the possibility of it entering an amended/updated joint
venture agreement for co-development of the Project".
It seems the main change is that Orosur actually may be able to have Agnico Eagle coming back as a partner as the project could be to handed back in its entirety. Also we could receive information which was not disclosed before as Monte Aguila did not agree. Drilling and good results is what will make a sinificant difference to the share price and it could re-start before the end of Q2 2024. I am happy to hold and add more.
Taken from Turner Pope's research
Regaining complete control of such a significant asset presents exciting opportunities
Orosur appears to be about to land the deal it has been seeking. The Group was always clear that it was prepared to
pay for this, but only in the form of a share of the positive cashflow generated from the mine once it has been built
and producing. Used to working on extended schedules, the proposed consideration appears to reflect Newmont
and Agnico’s confidence that Anzá is a prospective world class asset and that it will eventually give them more
than their money back, even if (under the terms of the original JV at least) they are not prepared to share its risk of
development (which for a pre-resource asset requiring continuing exploration success, permitting and mine
construction etc., clearly remains high).
Clearly, even if Orosur had been able to independently invest in the Project sufficient to regain 51% of the JV, no
other party would consider entering the fray while Newmont and Agnico retain a seat at the table. This would be
in no party’s interest, so it is perhaps understandable that they are now willing to hand it back in its entirety. More
excitingly for Orosur, this now opens a number of viable options through which the Project may be developed,
including to: (i) Go it alone; (ii) Sell it outright; or (iii) Bring in a new partner. All of these, of course, must ultimately
hinge on the wider market appetite.
Importantly for investors, being freed of the strict disclosure constraints/editorial oversight imposed by Newmont
and Agnico, once it has got its ‘feet back on Colombian ground’ Orosur is likely to be far more transparent and
communicative regarding its own development plans. This could include more detail about the extensive work
already undertaken by MMA, their extensive results and a view regarding overall prospectivity. Given its scale and
global position, Newmont considers it important to retain, to the extent it can, ‘a finger in the pie’ of all and any
potential world-class gold prospects.
Even if it will now not be directly involved in the Project’s future development, Newmont nevertheless still retains
an indirect participation through its c.14.21% ordinary shareholding in Orosur (which originally came from its
I
Taken from Turner Pope research note:
Orosur has taken an important first step toward resuming 100% ownership of
the Anzá Project (‘Anzá’ or ‘the Project’), targeting completion of a transaction
(‘the Transaction’) by the end of April 2024. The proposed consideration, as
set out in the letter of intent (‘LOI’) entered with Minera Monte Águila SAS
(‘MMA’), includes a net smelter return (‘NSR’) royalty of 1.5% plus cash
payments of up to US$15 million payable upon meeting certain agreed (but as
yet undisclosed) production thresholds. Recognising the development steps
that need to be taken to reach such a stage (including production of a bankable
feasibility study (‘BFS’), permitting, construction, etc.) still remain, perhaps, 7
to 10 years away, such deferral considerably derisks the Project for
shareholders. Orosur, in exchange, will regain complete control of a now datarich, potentially world-class opportunity that is clearly much more valuable
than what was handed to the JV some years back. In anticipation, the Board
is already planning for re-assumption of ownership and operatorship, which
appears particularly timely against a background of record gold prices and a
greater willingness amongst the international mining community to invest in
Colombia once again. With a number of ‘walk up’ drill-ready targets already
presented, on-site operations could even re-start before the end of Q2 2024,
possibly in tandem with initial discussions with potential development
partners. Retaining a forward cash runway sufficient to immediately
prioritise such work, the first results could arrive quite rapidly.
It seems very good news to me. I bought some shares this morning. The fact that payments are dependant on production is a good oportunity for OMI. Brad claims to know what went wrong at Pepas and it seems eager to beging drilling there.
It seems the update from Reabold resources is relevant to PXEN. I am not invested in Reabold but has some PXEN shares.
Reabold Resources plc, the oil & gas investing company with a diversified portfolio of exploration, appraisal and development projects, is pleased to note that the Italian Government has approved a decree to boost the country's renewable energy production and energy security at the meeting of the Council of Ministers held on 27 November 2023 (the "Decree").
The Decree provides incentives to build plants for energy production from renewable sources, such as the liquefaction of natural gas; the release of new licences for the exploitation of gas fields aimed at providing gas to industries with high gas consumption, at competitive prices; incentives for LNG terminals and incentives for carbon dioxide storage programmes. The Decree is already in force and Italy's Parliament has 60 days to ratify it into a definitive law.
Glad I bought yesterday. About to break the down trend line at 0.57, next stop 0.63.
The progress with the licenses is worrying. Brad said during the last webinar they were waiting for the public audience but looking at the Website of the Agencia Nacional de Mineria it seems they went backwards. They must be regretting not sorting out this issue before the change in government.
Número de evento Fecha evento Radicado/Expedido por Descripción Número de documento Nombre del documento Fecha ejecutoria Especificación
370945 01/AGO/2022 ESCORPION S.O.M Subsanar solicitud de propuesta de contrato de concesión
155132 14/SEP/2020 SIGMSIGM System Admin Evaluación de propuesta de contrato de concesión
141528 14/SEP/2020 ESCORPION S.O.M Completar radicación de propuesta de contrato de concesión
141527 14/SEP/2020 ESCORPION S.O.M Radicar solicitud de propuesta de contrato de concesión
I might be wrong; but, it looks to me that the reference to two additional holes being underway at Pepas is copy paste from RNS on 21 October 2022 rather than meaning Agnico is back drilling Pepas. From 21 October RNS: “Two holes are currently underway from new pads to attempt to better define the geometry of this mineralised body”
In principle the government does not seek to return to a state-monopoly of the mining sector.
Room for everyone
He also noted that Mali’s minister of mines, energy and water, Lamine Seydou Traore, vowed that the creation of Sorem does not seek to return to a state-monopoly of the mining sector.
From Mining.com
https://www.mining.com/mali-forms-new-state-owned-miner/
Coming from oversold should see a decent move hopefully towards the 30p. NT to buy now in HL
Agnico is at ANZA for the long term. 150 workers, 4 rigs. Brad is entirely happy that Monte Aguila is deemed to have elected to go into phase 2. Confirmation a formality now.
Entering Phase 2 would trigger a US$2m payment to Orosur within 30 days of MMA electing (or being deemed to have elected) which, together with further qualifying expenditure of US$20m would earn them an additional 14%.
Brad is pretty sury MMA is deemed to have elected progressing to phase 2. Hopefully tomorrow we get an RNS.
Phase two basically confirmed. "by their actions and words they are moving forward". Plans for 8-9 million next year.
It does not need to happen tomorrow but it is clear they are staying.
Very good to see progress with applications. Results from Guaimarala seems pretty good and they should move there later this year.
What a difference from Yesterday.
Awesome
Interesting to see that the three holes which found difficult conditions and which were terminated at shallow depths could potentially indicate that work is being carried
out on geological major structures.
From Turner Pope
"So far, nine holes have been completed, attempted or are underway at Pepas, across approximately 1 kilometre of strike of the
main structural corridor defined by the Aragon and Tonusco faults, targeting a range of lithologies and geological features. Three
of these holes encountered difficult drilling conditions from broken ground related to major structures, however, which resulted
in them being terminated at shallow depths. This is not particularly unusual and potentially indicates that work is being carried
out on geological major structures".
Turner Pope note that:
1. Today’s assay exploration
results from Pepas provide further support to the argument that it remains a highly prospective, potentially enormous target... Such
data increasingly points to the theory that the primary mineralisation may be contained within an intermediate-sulfidation
epithermal system.
Buritica has an epithermal system.
2. Potential for the Western Hinge.
Today’s near-surface discovery follows identification of high-grade structure at depth (MAP- 098, was as detailed on 8 March
2022); both are highly significant albeit, necessitating a large amount of infill drilling to establish the extent of the mineralisation,
while also testing the fold hypothesis to potentially open up the western hinge
3. Surpassed finding at los Cerros:
Indeed, Newmont and Agnico’s decision to work in this region of Colombia is likely to have been influenced by Los Cerros’
successful Quinchia Gold Project, after its Tesorito South porphyry target returned some exceptional intercepts, including 102m
@ 2.11 g/t Au from 28m.
4. If JV partners enter into phase 2, unlikely to have a raise in the near future.
Considering also that it would then be left with
a relatively strong cash position, and the fact that the two recently acquired early-stage South American projects incurred very
low entry costs with only limited burn anticipated for the first two or three years of operation, the Board is likely to be comfortable
with their balance sheet at this time.
Research note release now:
Indeed, with
today’s results suggesting potential for what could be a ‘game changer’ in terms of the
Project’s grading and scale, it would now be something of a surprise if Orosur does not
imminently find itself diluted down to 35%. This of course would not only trigger a
milestone payment of US$2m, but also significantly raise confidence in respect to the
Project’s future route to commercialisation.
Manage to grab some at the bell. Tonight at close of business or tomorrow we should receive an RNS confirming phase 2. Then the clock will start ticking. JV partners will have to make a $2m to OMI within 30 days and have the new JV settled. Brad Said that the new JV company are already defined in the original agreement, and can only be altered if OMI agree.
Something is sure, this is not a sell the news update as tomorrow or tonight should receive the actual confirmation of Phase 2.