Resources Top 5: Black beauty bolts out the gate on cracking manganese study
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Here are the biggest small cap resources winners in early trade, Thursday August 18.
A stock favourite of Argonaut Metals and Mining research analyst George Ross, this manganese explorer is surging this morning after releasing scoping study results for the Flanagan Bore Manganese project in WA’s eastern Pilbara region.
Increasingly manganese producers are looking to find a niche in supplying high purity stuff to the EV market, where the metal is a major component in long range nickel-cobalt-manganese batteries.
According to BCA executive director Brendan Cummins, the nickel, cobalt, manganese chemistry accounts for about 70% of EV global sales and within those nickel cobalt manganese batteries, the manganese can be 10-30% of the battery, depending on the chemistry, which is 90kg depending on the vehicle.
The company’s scoping study level economic evaluation released today shows a 20-year mine life, strong cash flow and solid returns, with a low capital start-up requirement to produce manganese concentrate mined from a large indicated mineral resource of 104Mt at 10.5% manganese, containing 11Mt of manganese.
This includes a higher-grade subset, comprising an indicated mineral resource of 33Mt at 12.8% manganese across the FB3 and LR1 deposits.
“The scoping study results clearly demonstrate significant value from a future mine development at Flanagan Bore,” Cummins says.
“The key financial metrics are robust and in line with the company’s strategy of discovery and delivery through de-risking the project as we progress the development schedule.”
(Up on no news)
This ~$21.5m market cap is catching some big waves this morning on no news whatsoever but earlier this month the company acquired exploration ground from a private investor group adjoining the Koolyanobbing Greenstone Belt – which will be renamed Koolyanobbing Metals Project (KMP).
Not only is the project under-explored, ASQ considers it prospective for lithium, gold, nickel, and copper with an 800-sample soil sampling program in the works, and an extensive pegmatite outcrop rock chip sampling program aimed at discovering spodumene mineralisation.
Limited work has extended the swarm of outcropping pegmatites with associated lithium pathfinder elements to a potential strike of over 17km, up from an original 6km.
MMG dived head-first into lithium at the beginning of the year when it acquired the large ‘Scotty’ sediment-hosted lithium project in Nevada for $2m.
Today, the Torian Resources (ASX:TNR) spin-off has secured an option to acquire the Brisk Lithium project in the prolific James Bay lithium district of Quebec, emerging as the hard rock capital of North America.
Covering six prospects over some 98.5km2, the Brisk project is host to several known pegmatite outcrops and is within close proximity to the La Grande Complex – one of the world’s largest hydroelectric developments providing carbon free energy for future mine development.
Along trend from Patriot Battery Metals’ (TSXV:PMET) Corvette Project and Winsome Resources’ (ASX:WR1) Cancet Project, the vendor of the Brisk project is DG Resource Management, which also generated the potentially world-class Corvette Lithium Project owned by Patriot Battery Metals.
MMG CEO Adam Ritchie says this announcement is powerful in two ways.
“Firstly, we are signalling our intent to move into the highly fertile grounds of the James Bay Lithium District, and we are doing it in partnership with the highly respected and in-country Dahrouge Group.
“As the founding geological team behind the lithium bearing pegmatites of the Corvette Project, Dahrouge’s insights behind the Brisk Lithium Project must not be underestimated.
“Local in-country geological support is fundamental to our success and the deal structure shows long-term and ongoing commitment from our new partner.”
Battery-focused CMX has a dual focus — exploring the ‘Eyre Peninsula’ halloysite, kaolin and manganese projects and developing its HiPurA high purity alumina (HPA) processing tech.
Today, shares are on the up and up – about 30% at the time of writing on news that it will build a HPA pilot plant after a pre-feasibility study confirmed the viability of the company’s proprietary HiPurA® technology.
The PFS indicates the 50tpa pilot plant requires capital expenditure of $2.5 million with a contingency of $410,000.
ChemX completed the commissioning of the individual stages of its HPA micro-plant prior to the conclusion of the second quarter and has submitted samples to an accredited laboratory for assaying.
Upon receipt of assays, any adjustments to the purification steps that may be required will take place at the company’s recently secured larger facility in Perth, Western Australia.
(Up on no news)
Shares in this ~$12.55m market cap explorer are SCORCHING this morning.
The company wrapped up drilling of its third wedge hole on the Lake Torrens IOCG Project, albeit hampered by technical issues, weather, and personnel disruptions due to Covid.
Lake Torrens is currently held 49% by Tasman and 51% by FMG Resources, a wholly owned subsidiary of Fortescue Metals Group (ASX:FMG).
Fortescue has also given notice to Tasman that it intends to sole fund its interest to 80% pursuant to the terms of a farm in and joint venture agreement.