Jim's Mining Letter - October 5, 2024

Interesting announcements last week

Kavango Resources (KAV.L KVGOF) announced an update on its ongoing Phase 1 stratigraphic drill campaign at the Karakubis copper project in Botswana's Kalahari copper belt. The company’s analysis of intersections from its first five holes is said to have identified the same stratigraphic sequences at Karakubis as those believed to be present around the Sandfire Resources (SFR.ASX SFRRF S2Z.F) Motheo mine and similar to the MMG (1208.HK MMLTF) Zone 5 deposit. Motheo and Zone 5 are two of the largest known copper deposits in the Kalahari copper belt. Per the company, all five holes demonstrate evidence of both functioning structural "trap-sites" and substantial hydrothermal alteration, an important indicator that the ground at Karakubis has been subjected to the correct processes for the accumulation of large-scale copper-silver deposits. Through pXRF analysis, Kavango says it has confirmed the presence of copper, silver, lead and zinc mineralisation in all five holes it has drilled. The combination of these four metals is stated to be encouraging for the company's continued exploration for a major commercial discovery. Based on the promising results of the first five holes, Kavango is now conducting further geophysical surveying to narrow down its target list for future drilling. These surveys will be completed in parallel with the remainder of the current 5,000 metre diamond drill programme…more

Gateway Mining (GML.ASX) updated regarding the sale of the gold rights at its Montague East project to Brightstar Resources (BTR.ASX) for A$14 million in cash and shares. The transaction has now been completed and as a result, the company has received the A$5 million cash consideration as well as A$7 million worth of fully paid Brightstar shares. The current market value of the 466,666,667 shares is A$8.4 million. The deferred consideration of $2 million worth of fully paid Brightstar shares is payable upon the achievement of key milestones, being the commencement of commercial gold production at Montague East or the delineation of a 1 million ounce JORC compliant mineral resource. Gateway retains 100% of all other mineral rights in the sale tenements, also retaining legal and beneficial ownership of the tenements which make up Montague West which are not part of the transaction. Per the company, the transaction strengthens Gateway’s balance sheet, allowing it to focus on ongoing gold and base metals exploration at the Montague Range project while targeting new value-accretive growth and business development opportunities. Brightstar now is planning a drilling program to commence at Montague East in late October, targeting infill and extensional targets within and proximal to the mineral resources located at its advanced Whistler and Montague-Boulder deposits. Completion of the acquisition adds a further 9.6 million tonnes @ 1.6 grammes per tonne gold (0.5 million ounces of gold) to Brightstar’s JORC mineral resource estimate for a total mineral endowment now owned by Brightstar of 38.3 million tonnes @ 1.6 grammes per tonne gold (2.0 million ounces of gold).

Kincora Copper (KCC.V KCC.ASX BZDLF) announced that it has executed final agreements that provide Woomera Mining (WML.ASX) with the right to earn into Kincora’s wholly owned Mongolian subsidiaries and thereby obtain exposure to the Bronze Fox copper-gold project, located in the Southern Gobi copper belt. All approvals and conditions precedent have now been met, including the finalisation of the second tranche of Woomera’s A$1.7m capital raising. Drilling will now shortly commence for an initial 2,250-3,250 metre diamond core program planned before year end, targeting a shallower higher-grade structural zone, to also increase the existing resource base and support an application for a second mining license for the full Bronze Fox project. Woomera has issued 180 million shares and 180 million options to Kincora, making it the largest shareholder in Woomera. This program is expected to achieve a number of significant value catalysts and highlight Bronze Fox’s strategic value as the fourth major porphyry district in the Southern Gobi copper belt…more

Pantera Minerals (PFE.ASX) announced completion of the 3D static geological model, delivered by SLB, that details the subsurface geology and reservoir characteristics of the Smackover lithium brine project. The development of a 3D static geological model is seen by the company as a critical step in de-risking and optimising exploration planning, workflow and project development. The project now covers a land position of over 26,000 net leased acres of lithium brine prospective ground in the Smackover formation, Arkansas, a known high grade lithium brine formation. A total of 243 oil and gas wells were found to be drilled within the model extent of which 38 wells penetrated the Upper Smackover formation and contained raster log information. These wells were selected for digitisation and well log harmonisation and for use in the 3D static modelling, which also used data from 13.34-line miles of 2D seismic and 481 gravity stations. The subsurface model confirms that the company’s project has the potential to host a large and world-class lithium brine resource, analogous to neighbouring super majors Exxon Mobil and Equinor/Standard Lithium, both with advanced lithium brine projects. Leasing to the north and west of the Pantera acreage position is said to be seeing a new and aggressive push from multiple parties.

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