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Update On Lithium Partnership with Mineral Resources Limited at The West Spargoville Project
Marquee Resources Limited (Marquee or the Company) (ASX:MQR) wishes to advise the market that the binding Term Sheet with Mineral Resources Limited (ASX:MIN) (MinRes) announced to the ASX on 02 June 2022 has been amended to extend the due diligence period by 1 week, to a total of 5 weeks. All other terms of the Term Sheet remain unchanged and are outlined again below.
Key Terms:
- MQR and MinRes have entered into a legally binding term sheet for a Farm-in and Joint Venture agreement at the West Spargoville Project in Western Australia.
- The Agreement is conditional on MinRes completing due diligence on the Project within 5 weeks.
- MinRes has the right to acquire an initial 25% legal and beneficial interest in the lithium rights (Initial Farm- in Interest) by funding all exploration and development activities and completing a feasibility study for the Project, including a JORC compliant resource (Initial Farm-in Obligation) within 24 months (Initial Farm-in Period).
- In performing the Initial Farm-in Obligation, MinRes will fund: at least $1,000,000 of exploration and development activities on the Tenements by 31 December 2022; and the $500,000 cost to exercise the Fyfehill Option.
- Marquee will be responsible for managing the implementation of the exploration and development activities on the Tenements during the Initial Farm-in Period.
(Processing Farm-in)
If MinRes elects to proceed with the Processing Farm-in, it has the right to acquire an additional 45% legal and beneficial interest in the lithium rights by funding the Project until the point of a final investment decision on a mine development for the Project (FID). MinRes will provide complete mine to port services to the JV including: mining; design, construction and operation of a processing plant; on-site power generation; haulage of product to nominated port facilities; marketing of product and shipment of product to purchasers.
(Mine Gate Sale Farm-in)
If MinRes elects to proceed with the Processing Farm-in, it has the right to acquire an additional 26% legal and beneficial interest in the lithium rights by funding the Project until the development, construction and commissioning of a mine and related facilities. MinRes will build, own and operate all plant, equipment and infrastructure for the mining operations and buy lithium bearing ore from the JV for a mine gate sale price to be established on commercially competitive and industry standard terms.
About Mineral Resources Limited
Mineral Resources Limited (ASX: MIN) is a Perth-based leading mining services provider, with a particular focus on the iron ore and lithium sectors in Western Australia. Using technical know-how and an innovative approach to deliver exceptional outcomes, Mineral Resources has become one of the ASX’s best-performing contractors since listing in 2006. For more information about our business, please visit www.mrl.com.au.
Forward Looking Statements
Statements contained in this release, particularly those regarding possible or assumed future performance, costs, dividends, production levels or rates, prices, resources, reserves or potential growth of Marquee Resources Limited, are, or may be, forward looking statements. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. Actual results and developments may differ materially from those expressed or implied by these forward-looking statements depending on a variety of factors.
This ASX Release has been approved by the Board of Directors.
Click here for the full ASX Release
This article includes content from Marquee Resources Limited (ASX: MQR), licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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Marquee Resources
Overview
Marquee Resources (ASX:MQR) is a fully funded junior exploration company focused on its battery metals assets in Western Australia and the United States. Its diversified portfolio includes assets containing lithium, copper and rare earth elements - essential metals for battery manufacturing - as well as gold.
Global demand for battery metals is projected to reach $20.5 billion by 2027, growing at a compounded annual growth rate of 8.2 percent from 2020 to 2027, according to Allied Market Research, This growth is attributed to the exponential growth of the electric vehicle (EV) market, with two million EVs sold worldwide just in the first quarter of 2022, up 75 percent compared to the same period in 2021, along with continued market demand for consumer electronic devices.
Many of Marquee Resources’ assets are in advanced exploration stages, with highly encouraging exploration results.
The company’s flagship project is the West Spargoville Lithium Project, located in the prolific Southern Yilgarn Lithium Belt in Western Australia, and contains hard-rock lithium deposits. Marquee Resources has partnered with Mineral Resources Limited (ASX: MIN) to explore and develop the project. Mineral Resources has extensive experience operating hard-rock lithium mines and brings technical and operational expertise to the project. The West Spargoville Lithium Project has already yielded encouraging exploration results.
Marquee’s other encouraging lithium assets include Clayton Valley Lithium and Kibby Basin Lithium projects, both containing lithium brine and building additional excitement for lithium potential. Results from the 2022 drill program at Kibby Basin have returned high levels of lithium-bearing sediments along with dissolved lithium in the groundwater, with up to 924 parts per million (ppm) lithium from the two exploration boreholes (KB 22-01 and KB 22- 02) that were completed.
The company’s additional projects target other critical battery metals such as rare earth elements and copper. Its Lone Star Copper-Gold project is currently undergoing a 6,000-meter diamond drilling program. Marquee’s 2022 drill campaign at Lone Star intersected a wide mineralised envelope of up to 150 meters at 0.5 percent copper, with high-grade mineralised zones up to 19.8 meters at 2 percent copper. As many zones in the deposit remain open and untested, there is significant potential for additional mineralization, combined with historical diamond and percussion drill hills indicating high-grade deposits of copper and gold.
In October 2022, Marquee announced its maiden mineral resource estimate for the Lone Star Copper-Gold Project containing indicated mineral resource of 9.7 Mt at 0.45 percent copper and 0.24 g/t gold, and inferred mineral resource of 3.5 Mt at 0.31 percent copper and 0.20 g/t gold.
Marquee Resources is led by strong management with experience in natural resources and corporate administration. Charles Thomas, executive chairman, has over 15 years of experience in capital markets and structuring corporate transactions. Dr. James Warren, chief technical officer, has worked in leadership roles managing technical operations. George Henderson, non-executive director, has extensive experience in equity capital markets dating back to 2004. Anna Mackintosh, company secretary, has 26 years of commercial experience in compliance and finance roles for natural resource companies.
Company Highlights
- Marquee Resources is an Australian fully funded exploration company targeting battery metals with multiple assets in advanced exploration stages.
- The company’s flagship project is the West Spargoville Lithium Project, which has already yielded encouraging exploration results.
- Marquee Resources is in partnership with Mineral Resources Limited (ASX: MIN) to explore and develop the West Spargoville Lithium Project, and the companies have accelerated this farm-In agreement with MinRes acquiring an initial 25 percent interest in the lithium rights at WSP by funding $4.8 million on exploration activities at the project in less than 12 months.
- The company’s Kibby Basin project is located near the only producing lithium mine in the United States and contains encouraging geologic properties that indicate the presence of lithium brine.
- The company has additional projects that target lithium and other battery metals, such as copper, gold, and rare earth elements. Historical and current exploration assays indicate high-grade deposits of target metals.
- A management team leads Marquee Resources with directly relevant experience in natural resource markets, corporate administration and corporate finance.
Key Projects
West Spargoville Lithium
The Western Australian flagship project is located in the prolific Southern Yilgarn Lithium Belt. The asset is near multiple producing lithium mines, including the Bald Hill Mine and Mt. Cattlin Mine. Historical exploration data indicates a 2.4 kilometer long anomaly rich in lithium deposits. The project has slated non-stop exploration drilling until the end of 2022.
Project Highlights:
- Encouraging Exploration Results: Deep ground penetrating radar results indicated significant potential for lithium-bearing pegmatites. Interpretation of these has helped identify targets for follow-up drill testing.
- Auger Program Awaiting Lab Results: An auger geochemistry drilling campaign consisting of approximately 3,200 holes was recently completed.
- 2022 Drill Campaign: A drilling campaign was conducted in 2022, with 122 holes of reverse circulation (RC) drilling completed for 18,687 meters, and 391 aircore drills (AC) for 19,156 meters. Assays are currently pending results. Drilling will recommence in early 2023, following up on anomalous intercepts.
- Near World-Class Lithium Deposit: The Earl Grey deposit is located west of the deposit and contains similar geological formations as the primary West Spargoville project area.
Lone Star Copper & Gold
The company's copper and gold project is located in Washington State and contains a 3-kilometer-long mineralization trend of copper-gold deposits. The project has multiple past-producing mines and previous exploratory drill holes. Following the completion of the approximately 6,000-meter Phase 1 diamond drill program, Marquee Resources announced maiden mineral resource estimate for the Lone Star Copper-Gold Project containing indicated mineral resource of 9.7 Mt at 0.45 percent copper and 0.24 g/t gold, and inferred mineral resource of 3.5 Mt at 0.31 percent copper and 0.20 g/t gold.
Project Highlights:
- Robust Infrastructure: The project has road access and water access and is located only minutes away from a community.
- Exiting Mill Being Refurbished: A mill located 11 kilometers away is undergoing refurbishment before commencing operations.
- Encouraging Historical Data: Previous exploration data indicates copper deposits up to 2.4% from 19 meters and 1.4 g/t gold at 7.6 meters.
- 2022 Drill Program: Intersected a wide mineralised envelope of up to 150 meters at 0.5 percent copper, with high-grade mineralised zones up to 19.8 meters at 2 percent copper.
Kibby Basin Lithium
Kibby Basin is located in Nevada, 60 kilometers north of Ablemarle's operating lithium mine. The project covers 2,560 acres, and Marquee has full water extraction permits necessary for lithium-brine extraction. The project is in advanced exploration stages and has a drill rig carrying out 24/7 exploration currently.
Project Highlights:
- Geological Structure Indicative of Lithium Brine Deposits: Kibby Basin contains a 7.4 kilometer long structure with a similar geological structure as Ablermarle’s prolific lithium mine.
- Basin May Contain Layers: Early exploration results indicated an extensive enough basin to potentially contain multiple layers of aquifers, which is favorable for high-grade lithium brine. Additionally, the project has substantial water resources available.
- Fully Permitted and Exploration Underway: The project has received all necessary permits, and the company is currently carrying out a robust drilling program. The company suspects that this project will complement its nearby Clayton Valley Lithium Project.
- 2022 Drill Program Results: High levels of lithium-bearing sediments along with dissolved lithium in the groundwater, with up to 924 parts per million (ppm) lithium from the two exploration boreholes (KB 22-01 and KB 22- 02) that were completed.
Clayton Valley Lithium
Clayton Valley covers 12 square kilometers in Nevada and contains both lithium brine and clay. Like Kibby Basin, Clayton Valley is near Albemarle’s productive lithium mine. Kangari Consulting LLC completed a comprehensive review of the project and surrounding area, prompting Marquee to commence a two-phase exploration project. Marquee will commence a two-phase exploration program in the first half of 2023, consisting of detailed geological mapping and drilling.
Project Highlights:
- Cater to U.S. Lithium Consumption: The asset is located in a great location to service the U.S. domestic market with scalable, staged development that can be developed to cater to increasing demand.
- Near Tesla’s Gigafactory: Clayton Valley is 3.5 hours away from Tesla’s Gigafactory Number 1, a significant producer of lithium-ion batteries.
- Encouraging Exploration Results: Existing data indicates the presence of high-grade lithium ranging from 2.9 mg/l at 10 feet to 11.6 mg/l at 110 feet. Additionally, the project has substantial water resources to support lithium extraction and processing.
Redlings Rare Earths
The Redlings Project is located in Western Australia, 150 kilometers away from Lynas’ (ASX:LYC) Mount Weld Project. The 100-percent-owned project covers an area of approximately 108 square kilometres of tenure with historical samples of up to 7.8 percent TREO.
Auger sampling recently completed identified additional rare earth element bearing dykes. According to executive chairman Charles Thomas, "There is a very good potential to identify a part of the system that hosts an economic deposit."
Exploration drilling is set to restart in the first quarter of 2023, to follow up on targets generated by the successful 2022 auger program.
Project Highlights:
- Historic sampling results: Rock-chip samples up to 7.8 percent TREO.
- Location: In proximity to Lynas’ Mount Weld Mine where a new exploration program has been established after samples returned high grade REE assays.
- Promising exploration strategy: Recent drilling identified structures on the location of known REE-bearing carbonatitic dykes; drilling intersected a 25km structural zone of pink, frenetic, alteration intruded by multiple carbonatitic dykes.
Mt Clement Gold & Antimony Project
The Mt Clement Project is located 30 kilometers southwest of Black Cats (ASX:BC8) Paulsens gold mine, at the western end of the Ashburton Basin in the northern Capricorn Orogen of Western Australia. The project represents a genuine greenfield opportunity in one of Australia’s most underexplored regions.
Project Highlights:
- Underexplored Region: Consists of 360 square kilometers of tenure prospective for syngenetic gold antimony mineralisation, a poorly understood and underexplored mineralisation style in Ashburton Basic, Western Australia.
- Geological team recently completed a field mapping and reconnaissance expedition with a more extensive exploration program planned for 2023.
Management Team
Charles Thomas - Executive Chairman
Charles Thomas is the founding director of Marquee Resources and was the managing director of the company until 2019, when he then assumed the role of executive chairman. Thomas is also an executive director and founding partner of GTT Ventures, a leading boutique corporate advisory firm based in Australia. He holds a Bachelor of Commerce from UWA majoring in corporate finance. Thomas has worked in the financial service industry for more than 15 years and has extensive experience in capital markets as well as the structuring of corporate transactions. Thomas has sat on numerous ASX boards spanning the mining, resources and technology space. His previous directorships include, among others, AVZ Minerals Ltd (ASX:AVZ), Force Commodities Ltd (ASX:4CE) and Liberty Resources Ltd (ASX:LBY), where he was responsible for the sourcing and funding of numerous projects. Thomas is currently the non-executive chairman of Viking Mines Ltd (ASX:VKA), non-executive chairman of High Tech Metals Ltd (ASX:HTM) and non-executive director of Chase Mining Corporation Ltd (ASX:CML).
Dr. James Warren - Chief Technical Officer
Dr. James Warren is a geologist with extensive experience in the mineral resources sector and has held a variety of technical, operational and leadership roles spanning from greenfield target generation to production. Warren commenced his career in the Eastern Goldfields working at Gold Fields’ ST Ives operation in exploration and underground positions. He then completed his PhD, focusing on Kunanalling and Zulieska shear zones, while working at Phoenix Gold Limited (previously ASX: PXG). Warren was a key member of their exploration team until their takeover by Evolution Mining Limited. Warren then worked in the Mineral and Hydrothermal Geochemistry team at the CSIRO, when he was appointed as exploration manager of Echo Resources Ltd (Echo). At Echo, Warren oversaw the exploration strategy and growth of Echo’s resource base to over 1.8 Moz and was involved in the development of their corporate strategy and promotion.
George Henderson - Non-Executive Director
George Henderson is a corporate lawyer and founding partner of AGH Law. Henderson primarily acts for clients in relation to capital raisings (including IPOs, back door listings and secondary offerings), mergers and acquisitions (including takeovers and private share or asset sales), and ASIC and ASX compliance. He has particular experience in the resources and technology sectors, for both local and international clients. Henderson graduated from the University of Western Australia with degrees in law and commerce (corporate finance and financial accounting). Since graduating, Henderson has also obtained a graduate certificate in applied finance at Kaplan Higher Education.
Daniel Moore - Non-Executive Director
Daniel Moore (BEcon/LLB) was formally the CEO of Centenario Lithium. He has extensive experience in equity capital markets since 2004, previously with Wilson HTM and Morgan Stanley, focused on emerging companies. He has held non-executive director roles at iCollege (ASX:ICT), Coronado Resources during its RTO with Race Oncology (ASX:RAC), and Stratum Metals during its RTO with Locality Planning Energy (ASX:LPE).
Anna Mackintosh - Company Secretary
Anna Mackintosh, B.Com (UWA) CPA, also serves as company secretary of TAO Commodities Ltd (ASX:TAO) and Global Vanadium Ltd (ASX:GLV). Mackintosh has over 26 years of commercial experience including 11 years with BHP, 10 years with AFSL holder Kirke Securities Ltd as compliance manager, finance manager and responsible executive. Mackintosh was previously the company secretary/CFO of Kalia Limited (ASX:KLH) (2009 -2018 formerly GB Energy Limited) and Applabs Technologies Ltd, and financial controller at Force Commodities Ltd.
Burley’s Pilbara Iron Ore Assets Advancing
Burley Minerals Limited (ASX: BUR, “Burley” or “the Company”) advises that a heritage protection agreement has been signed with Yindjibarndi Aboriginal Corporation over the Broad Flat Well exploration license area. Heritage surveys are planned for late-April/early-May 2024.
HIGHLIGHTS
- Broad Flat Well
- Heritage Agreement signed with Yindjibarndi Aboriginal Corporation. Heritage survey planned for the second quarter of 2024.
- Additional Channel Iron Deposit (CID) areas identified within the Broad Flat Well tenement.
- Cane Bore
- The Cane Bore Conservation Management Plan was submitted and is now under review by the Department of Biodiversity, Conservation and Attractions.
- Flora and fauna surveys were completed in 2023.
- More than 30km of potential remnant Channel Iron Deposits (CID) identified.
Burley Minerals Managing Director and CEO, Stewart McCallion commented:
“The signing of the Heritage Protection Agreement with the Yindjibarndi Aboriginal Corporation is an important step towards exploring the Broad Flat Well tenement. Burley has applied for drilling permits at Broad Flat Well, and now we will be working with the Yindjibarndi on implementing heritage surveys.
“The review of the Cane Bore Conservation Management Plan by the DBCA is also a significant milestone and we are confident with veracity and completeness of the document. Once the Conversation Management Plan is approved, we anticipate a clear path through to the grant of the exploration license by DEMIRS. We will submit our plans for drilling thereafter. In the meantime, we intend to complete additional data collection and any site work possible. There are extensive, mesa- forms throughout the Cane Bore exploration area as seen in the historic sampling. These Channel Iron Deposits are high-lying, and readily accessible; we intend to commence RC drilling when statutory approvals are received.
“The development of the Conservation Management Plan, and execution of agreements with aboriginal corporations underscores Burley’s commitment to mitigating environmental impacts of our work and ensuring protection of aboriginal heritage.”
BROAD FLAT WELL – 100% INTEREST
Locations and Setting
The Broad Flat Well exploration license, E47/4580, is located approximately 115 km from Karratha and is accessible by the sealed Roebourne - Wittenoom Road, as illustrated in Figure 1. Broad Flat Well is also only 260kms from Port Headland.
Figure 1: Broad Flat Well Location Plan showing only 115km by sealed highway from Dampier.
Rock Chip Sampling and Geology
A mapping and rock chip sampling programme was completed in 20231. Thirty-six (36) rock chip samples were collected from the tops of mesa-form hills which are interpreted as remnant mid- Miocene Channel Iron Deposits (CID) related to the Fortescue River palaeo-drainage system. An earlier sampling programme was completed by API Management between 2006 and 2008.
Click here for the full ASX Release
This article includes content from Burley Minerals Ltd., licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Canary Capital Finds Auric Mining a ‘Compelling Investments Case’
Auric Mining (ASX: AWJ) is a “compelling investment case” poised for significant growth driven by the potential of its two flagship projects, Jeffreys Find and Munda Gold, Sydney, Australia-based investment management and corporate advisory firm Canary Capital wrote in a new equity research report.
“AWJ is our preferred ASX-listed company to participate in the current favourable macro environment for gold,” said the report prepared by Paul Hart and Arun Sengupta, both directors at Canary Capital.
The report noted the remarkable progress made by AWJ - transitioning from tenement acquisition and ASX listing to mining and cash flow generation in just under three years - earning $4.77 million in cash from Stage One of the Jeffreys Find gold mining project. More than 9,741 ounces of gold have been mined and sold from Jeffreys Find to date.
A picture of the Jeffreys Find ore body showing gold mineralisation location evidenced by darker zones
AWJ has also completed a scoping study for the Munda gold project, showing exceptional economics and a path to cash flow generation of approximately $77 million.
“Despite the significant cash flow potential of the company’s projects, the current market capitalisation is just $20.3m. We view this as presenting investors with an opportunity to invest in AWJ at a fraction of the real intrinsic value of the company,” the report said.
Highlights of the report:
- AWJ has made remarkable progress in a span of just under three years since its ASX listing and the acquisitions of assets.
- Cash generated from Stage One production at Jeffreys Find, which totals $4.8 million, will fully fund AWJ in 2024 as it develops Stage Two production, which is expected to generate between $6 million and $8 million for the company.
- Munda’s exceptional economics, with a projected positive cash flow of $76.9 million over a 13-quarter mine life based on a conservative gold price assumption of A$2,600/ounce.
- Munda will commence operations with a three-month starter pit and a low capital investment of $1.3 million and a working capital investment of approximately $6.0 million.
- Munda is projected to generate around $8.7 million in surplus cash for AWJ, depending on the results from the current drill program.
Read the full analyst report here.
This content is intended only for persons who reside or access the website in jurisdictions with securities and other applicable laws which permit the distribution and consumption of this content and whose local law recognizes the scope and effect of this Disclaimer, its limitation of liability, and the legal effect of its exclusive jurisdiction and governing law provisions [link to Governing Law section of the Disclaimer page].
Any investment information contained on this website, including third party research reports, are provided strictly for informational purposes, are general in nature and not tailored for the specific needs of any person, and are not a solicitation or recommendation to purchase or sell a security or intended to provide investment advice. Readers are cautioned to seek the advice of a registered investment advisor regarding the appropriateness of investing in any securities or investment strategies mentioned on this website.
31 December 2023 Full Year Financial Results. Auric Generated $4.22 Million Net Operating Cash
Auric Mining Limited (ASX: AWJ) (Auric or the Company) is pleased to provide its financial statements for the year ending 31 December 2023.
- Financial year posts a maiden profit of $1,313,644.
- Adjusted maiden profit after one off write-down is $2,845,638.
- Net cash from operating activities is $4,223,898.
2023 Full Year Financial Report
Managing Director, Mark English, said “We’ve topped off an outstanding 2023 with a maiden adjusted profit of $2.8 million. The net cash from operating activities resulted in a surplus of $4.22 million, a terrific result.
“We benefited from a rising gold price as we undertook Stage One mining at Jeffreys Find. The mining performed better than expected with production of 9,741 ounces of gold selling at an average of $3,006 per ounce. Six months of mining generated almost $10 million in surplus cash for Auric and its JV partner, BML Ventures Pty Ltd of Kalgoorlie. Mining at Jeffreys Find has commenced for the 2024 year. The first processing is scheduled at the Greenfields Mill in mid-late April 2024.
“The past 12 months has seen us become self-funding for 2024. We are a dynamic small gold company with a pipeline of mining activities, that will generate cash for the Company and our shareholders,” said Mr English.
Click here for the full ASX Release
This article includes content from Auric Mining, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Auric Mining a ‘Gold Story’ to Watch, Analyst Says
Australian mining analyst Gavin Wendt has identified junior gold explorer and producer Auric Mining (ASX:AWJ) as a stock to watch, citing the company’s “gradual market re-rating” and its appeal as a low-risk, fully-funded operation with cash flow from its 50 percent stake in Jeffreys Find gold project.
Gold mining at Jeffreys Find commenced in July 2023, with AWJ’s joint venture project BML Ventures handling the mining operations on a 50-50 profit-share basis. Jeffreys Find has an indicated and inferred gold resource estimate at 0.5 grams per ton (g/t) cut-off grade of 1.22 million tons @ 1.22 g/t for 47,900 oz gold.
“By being prepared to retain a 50 percent stake in Jeffreys Find net cash flows, AWJ has avoided the time, complexity and costs of mobilizing equipment and hiring contractors independently, as well as eliminating the requirement for it to fund its proportionate share of working capital for the project,” Wendt stated in his report.
Stage Two mining at Jeffreys Find already began in early March 2024, with the aim of extracting at least 300,000 tons of ore, which is 70 percent more than Stage One, which Wendt said could realize net cash proceeds of approximately $8 million for AWJ.
Stage Two of gold production at Jeffreys Find commenced in early March 2024. (Image courtesy of Auric Mining)
Highlights of the report:
- AWJ is a gold story worth watching as the company continues to realize cash flows from its 50 percent stake at Jeffreys Find gold production in a JV with BML Ventures.
- Through the JV, wherein BML handles the mining operations on a 50-50 profit-share agreement, AWJ avoided the time, complexity and cost of mobilizing equipment and personnel, and eliminated the need to fund its share of the working capital.
- AWJ has the advantage of gaining quicker returns from the Jeffreys Find project, and leveraging the current strong gold price environment, and allowing the company to focus on advancing its Munda project to production by late 2024 to early 2025.
For the full analyst report, click here.
This content is intended only for persons who reside or access the website in jurisdictions with securities and other applicable laws which permit the distribution and consumption of this content and whose local law recognizes the scope and effect of this Disclaimer, its limitation of liability, and the legal effect of its exclusive jurisdiction and governing law provisions [link to Governing Law section of the Disclaimer page].
Any investment information contained on this website, including third party research reports, are provided strictly for informational purposes, are general in nature and not tailored for the specific needs of any person, and are not a solicitation or recommendation to purchase or sell a security or intended to provide investment advice. Readers are cautioned to seek the advice of a registered investment advisor regarding the appropriateness of investing in any securities or investment strategies mentioned on this website.
Lincoln Unveils 1.2 Billion Tonne Eyre Peninsula Green Iron Project and Commences Partnering Process
Lincoln Minerals (ASX: LML) is pleased to announce it will commence a partnering process for its large-scale Green Iron Project on the Eyre Peninsula in South Australia, which is underpinned by the recently announced 1.2 billion tonne (Bt) magnetite resource1. A review by Lincoln’s new Board and management team has highlighted the development potential of this large-scale multi deposit magnetite project, known as the “Green Iron Project”., which Lincoln has held since 20182.
- Portfolio review by new management team validates significant scale of Lincoln’s Green Iron Project on South Australia’s Eyre Peninsula, underpinned by 1.2 billion tonne magnetite resource1.
- Previously completed studies contemplated production scenarios of 3 – 10 million tonnes per annum of magnetite concentrate analysing all aspects of project development, including mining, processing, logistics, port, power and water.
- Previous incomplete feasibility studies demonstrated the project’s favourable metallurgical properties, including high recoveries, high resultant iron ore grades and favourable grind size characteristics.
- The commencement of a partnering process for Lincoln’s Green Iron Project is the first step towards unlocking shareholder and regional value from its magnetite resource. The Company understands the local Eyre Peninsula community has an interest in our projects and Lincoln looks forward to working constructively with the community to develop this important Green Iron Project.
- Recent initiatives aimed at decarbonising Australia’s steel industry are expected to support third party project interest, noting plans by the SA Government to update its magnetite strategy, in which Lincoln has been requested to participate.
- Project partnering process aimed at advancing the project to Definitive Feasibility Study (DFS) status and complete approval documents to commence imminently, overseen by Lincoln Director Julian Babarczy.
- Value realised from Lincoln’s Green Iron Project will fund and fast-track development of the Kookaburra Graphite Project, the Company’s core asset and primary focus.
The Green Iron Project partnership process, which Lincoln is launching today, seeks to identify a funding and project partner for advancing the Green Iron Project to operational status. The initial phase involves progressing the project to Definitive Feasibility Study (DFS) status and completing necessary approval documents. It is important to note that previous DFS-level studies and regulatory approvals were not finalized, although were well advanced. The goal of the partnering process is to realise value for shareholders and potentially secure funding for the Kookaburra Graphite Project (KGP) while minimizing equity dilution for Lincoln shareholders.
Lincoln Director Julian Babarczy said, “We believe there is substantial potential value in Lincoln’s 100%-owned Green Iron Project, which in our view is currently not reflected in Lincoln’s share price, due to a lack of awareness by the market of the scale and attractiveness of previous study outcomes. During the strong iron ore pricing environment of 2010-2012, the project attracted significant funding as well as strong engagement from major steel companies, however project advancement halted due to the retracement of iron ore prices in subsequent years.
Following our review of the project, it is clear it has a compelling and significant scale, with detailed yet incomplete, advanced stage feasibility studies undertaken on all aspects of the project showing the potential to produce a very high-quality magnetite end-product with favourable metallurgical characteristics, ideal for the production of green steel in the region. I look forward to overseeing this important partnering process for the Company in the months ahead.”
Lincoln CEO Jonathon Trewartha said,“Magnetite, with its environmental advantages, has emerged as an appealing option for sustainable, low carbon steel production. Lincoln’s Green Iron Project, focused on producing a coarse-grind, high-grade iron ore concentrate, is expected to attract interest from potential steel producers, as has been the case with other peers in the region. The project’s unique properties, positive environmental impact, and proximity to established infrastructure and workforce contribute significantly to the project’s attractiveness.”
“Lincoln Minerals has recently unearthed a wealth of assets during an extensive review of the company’s overall portfolio. Among these are the iron ore assets, which represent just one facet of Lincoln’s underlying value and potential. Additionally, we are in the final stages of evaluating Lincoln’s Uranium assets, which we look forward to updating shareholders on shortly.”
“While we remain focused on development of our Kookaburra Graphite Project, our aim is to deliver maximum value to our shareholders and realise value from assets within our broad portfolio in the best interests of shareholders.”
Overview of Lincoln’s Green Iron Project
Lincoln’s Green Iron Project encompasses iron ore rights for a large-scale magnetite project on the Eyre Peninsula in South Australia, with a JORC Mineral Resource estimate of >1.2 Bt of magnetite iron ore, which has demonstrated strong metallurgical recoveries and a high-quality end product (as displayed in Table 1).
Table 1: Combined Total Mineral Resources by Resource classification##For further details relating to Lincoln’s magnetite resource, please refer to ASX release dated 21 March 2024, titled “1.2Bt Eyre Peninsula Green Iron Project Partnering Commences”.
Mineral Resources & Metallurgy1
Underpinning Lincoln’s Green Iron Project is a magnetite Total Mineral Resource of 1.2 Bt at a head grade of 25.7% Fe, which is considered significant due to the optimal location of the resource, the strongly supportive metallurgical characteristics, the overall potential scale of the project as well as the recently emerged preference for high quality magnetite feedstock for green steel production.
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Warriedar Resources Limited (ASX: WA8) – Trading Halt
Description
The securities of Warriedar Resources Limited (‘WA8’) will be placed in trading halt at the request of WA8, pending it releasing an announcement. Unless ASX decides otherwise, the securities will remain in trading halt until the earlier of the commencement of normal trading on Monday, 25 March 2024 or when the announcement is released to the market.
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ASX Compliance
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This article includes content from Warriedar Resources Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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