Strategic Investor

Marimaca, the Chilean-focused copper developer, has announced a C$20 million equity investment by Mitsubishi Corporation. Proceeds from the Strategic Investment will be used to advance and accelerate the development of the Marimaca Copper Project This is unequivocal good news particularly given the fact they paid an 11% premium to the VWAP (7.8% to last night's close). They will hold a c.5% stake including issued and outstanding shares – Mitsubishi will receive one common share and one warrant e

Updated MRE Released

Marimaca has released a Mineral Resource Estimate (“MRE”) for the Marimaca Oxide Deposit located in the Antofagasta region of northern Chile. This updates the MRE released in October last year and incorporates 28,374m of new drilling data. The MOD database now consists of 139,164m of drilling completed since discovery in 2016. The new drilling data was largely targeted at conversion of Inferred Resources to the Measured and Indicated categories and, as such, can be considered successful – see ta

A Bigger, Better $1bn Copper Project

The Marimaca copper project sits at low altitude, 25km from the Chilean port of Mejillones, with easy access by road to the port and to the bigger town of Antofagasta c.40km away. The company has been working on the project for several years and have already released one BFS. They are now updating this following the publication of a MRE in November last year detailing a 140Mt measured and indicated resource grading 0.48% CuT with a further 83Mt of inferred resource at 0.39% CuT containing a tota

High Grade Sulphides Intersected

Marimaca has announced a significant drill hole result which intersected high grade primary sulphide mineralization down-dip of oxide mineralization at Marimaca Oxide Deposit (MOD). Full drill hole intersection of 240m at 1.01% CuT from surface in two separate zones of oxide and primary sulphide. The true width of the mineralisation is unknown at this stage. However it is a step in the confirmation of an large scale potentially economic ore body below and adjacent to the current c.1Mt of co

New MRE Double the Size of the Resource

Marimaca has just announced its new Mineral Resource Estimate for the Marimaca Oxide Deposit located in the Antofagasta region of northern Chile, 22km inland from the Port of Mejillones. The 2022 MRE demonstrates significant resource growth over the 2019 MRE and marks an important step‐change in the scale of the Project, supporting a potential production rate higher (50-60kt pa) than proposed in the Preliminary Economic Assessment released in August 2020 (35-40kt pa).

Newly Discovered Oxides at Mercedes

Marimaca, the Chilean-focused copper developer, today announced that is has intersected near-surface copper oxide mineralisation at its Mercedes target located 1km north of the main Marimaca Oxide Deposit (MOD). The intersections are from 8 holes as part of a 17-hole shallow RC discovery drilling program at Mercedes. This is a continuation of the company's broader exploration strategy on multiple targets on the company's license area which is approximately 20km from the coastal port of Mejillon

Newly Discovered Oxides at the Cindy Target

Marimaca, the Chilean-focused copper developer, yesterday announced that is has intersected near-surface copper oxide mineralisation at its Cindy target located 5km north of the main Marimaca Oxide Deposit (MOD). The intersections are from two holes as part of a nine-hole shallow RC discovery drilling program at Cindy. This is a continuation of the company's broader exploration strategy on multiple targets on the company's license area which is approximately 20km from the coastal port of Mejill

Further Extensions below the MOD

Marimaca, the Chilean-focused copper developer, today has announced the extension of the mixed oxide-secondary sulphide zone below the PEA pit limits at the Marimaca Oxide Deposit (MOD). We believe these extensions have the potential to increase the size of the leachable resource at the MOD which may support a larger/longer operation than the 40ktpa proposed in the PEA for which we have an NPV of US$515m (equivalent to C$7.2/sh) at $3.15/lb copper price. The company is currently progressing towa

New Oxide Target at Roble

Marimaca, the Chilean-focused copper developer, today has announced the definition of a new, large scale, copper geochemical anomaly at the Roble Target, which it plans to drill test over the coming months. The key asset remains the 40kt pa Marimaca oxide deposit which is progressing towards a fresh PFS for which we have an NPV of US$515m at $3.15/lb copper price. There is no value being accorded by the market to the exploration upside from results such as these today. We remain buyers of high c

More Sulphide Mineralisation below MOD

Marimaca, the Chilean-focused copper developer, today announced assay results from the first hole of a five hole drilling program to test the limits of mineralisation at the Marimaca Oxide Deposit (MOD) as well as targeting sulphide mineralisation below it. The results from this first drill hole encountered a larger-than-anticipated zone of sulphide mineralisation (chalcopyrite and minor chalcocite). The assay results on the remaining four holes are expected by the end of this month. To refresh;

Promising results at Cindy

Marimaca, the Chilean-focused copper developer, yesterday announced results from a rock geochemistry and reconnaissance mapping program its Cindy Target, which is located 5km to the north of the company’s flagship Marimaca Copper Project. This is a continuation of their broader exploration strategy on multiple targets on the company’s license area just over 20km from the coastal port of Mejillones in Chile. We see Cindy as currently the most prospective of the 7 targets; all of which showed up u

More Revealed Below the MOD

Marimaca, the Chilean-focused copper developer, today has announced results from an induced polarisation (IP) survey at its Marimaca Copper Project. This is part of their broader exploration strategy on multiple targets on its license area just over 20km from the coastal port of Mejillones in Chile. The core of the company still comprises the Marimaca project which the company is developing into 40kt pa mine with an NPV of US$518m at $3.15/lb copper. However there is huge potential being reveale

Magnetic Survey a Potential Game Changer

Marimaca has announced the results of its latest magnetic survey. Following on from the success of its magnetic exploration efforts at Marimaca, where a large scale anomaly was discovered below the oxide ore body, the company has flown a drone across the northern part of its license area. The results have been startling with four large scale anomalies identified of a similar size or larger than the Marimaca Sulphide Target (175 million m3 or c. 475Mt according to company estimates) – see Figure

Phase 4 Metallurgical Results

Marimaca, the Chilean-focused copper developer, today has announced results from its Phase 4 metallurgical testing which confirm the assumptions used in the recently published PEA (4th August 2020) and have identified areas for optimisation.

Further thoughts on the PEA

Following our note on Marimaca’s publication of its PEA (4 th August 2020) we have had time to look at how the Marimaca Project compares with other greenfield copper projects whilst finessing our model to reflect the findings of the PEA more accurately. These exercises reveal that whilst Marimaca is small it is “well formed”, potentially delivering one of the highest, if not the highest, returning copper projects (IRR of 33.5%) in the world. The ore body is also favourable from a financial aspec

NextSource Materials - Initiation

NextSource is uniquely positioned to build a leading vertically integrated position, ex China, in the supply of Lithium-ion battery anode material which is essential for the Energy Transition. The company is commissioning phase 1 of its world-class Molo graphite mine in Madagascar and is in the final permitting process for its first Battery Anode Facility (BAF) to be located in Mauritius. The company is backed by Vision Blue, established by Sir Mick Davis, former CEO of Xstrata. On our calculat

Falcon Oil & Gas - Funding a Multi TCF Resource

Falcon has raised gross proceeds of US$8.9m via a placing and subscription at a price of 6p/share and the granting of overriding royalty interests. The net proceeds, together with Falcon’s existing cash resources (cUS$4.3m) will be used to fund Falcon’s net share of 2024 capex (cUS$9m) associated with the 40MMscf/d Shenandoah South Pilot Project, including the drilling, stimulation, and flow testing of two 10,000ft horizontal wells. The funds will also enable Falcon to fund its share of the cost

Morning Note – 22 April 2024

Sintana Energy Inc. (TSX-V: SEI): Constrained test rate of 14 mboe/d at Mopane-1X. 10+ bn boe in place confirmed.

• Multiple tests over multiple zones in multiple horizons were run at the Mopane-1X exploration well. The flows achieved during the well test reached the maximum allowed limits of 14 mboe/d. The flow rate was constrained by the size of the available surface facilities. • The AVO-1 horizon encountered at Mopane-1X and Mopane-2X are in the same pressure regime, suggesting that the entire area (8 km diameter) between the two wells is connected. Overall, in the Mopane complex alone, and before dril

Touchstone Exploration+ (TXP, House Stock at 44p) - Closing of expanded bank facilities

Alien Metals - Hancock Project, Mining Lease Granted

Alien today reports intraday that the Western Australian Government has granted a mining licence for the Hancock iron ore project for a 21-year term. The granting of the mining licence is the latest milestone delivered by Alien as it advances the project towards development and production.

SP Angel Morning View: Copper prices hit $9,700/t as China smelts concentrates for zero charge Tc/Rc

Jubilee Metals - Operational Update Q3 FY2024

Jubilee today reports its Q3 and third quarter operational results from its expanding operations in Zambia (copper) and South Africa (chrome and PGM). South Africa is on a growth trajectory with record chrome production of 409kt in the quarter (Q2 FY2024 381kt) and a monthly record in March of 145kt and production YTD of 1.13Mt (0.94Mt). Jubilee is well underway to its annual target capacity of 2,1Mt/yr especially with the new 300kt/yr chrome plant at Thutse expected to be operational in August

Jersey Oil & Gas (JOG LN) - Share price fall creates opportunity

Since November, the JOG share price has moderated from a high of 250p to current levels of 149.5p. This is despite JOG having now made significant progress towards FID on its c.70mmboe Buchan project, with FID upcoming later this year. In our view this share price move is unjustified, with current levels further enhancing the value on offer, and making an attractive opportunity for investors.

Trinity Exploration and Production - Reserves Reduction but Solid Core Business

Trinity has announced a c28% reduction to its 2P reserves following a YE23 review. Despite the decrease in the Company’s 2P reserves, Trinity’s core business remains robust, with a reserves/production ratio of >12.5 years at YE23. Whilst there is significant potential for growth within the current portfolio, this will be difficult to unlock from the current balance sheet and we believe further financing will be required. We update our target price to 76p (from 202p), a c85% premium to the curren

SP Angel Morning View: Gold resilient as US interest rates climb on long-term inflation concerns

Transition to Mining Operator

Adriatic Metals has announced their transition from mining contractor to mining operator at Rupice. The transition is expected to continue to benefit the development and productivity rates being achieved at Rupice mine, as well as result in cost efficiencies and improved HSE standards. The company has also announced a short-term loan facility with Orion of $25m, that is drawable at the option of the company in Q3/4 this year.

Hybridan Small Cap Feast - 22 April 2024

22nd April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: 16 April 2024: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radi

I3 Energy (I3E LN) - Canada royalty assets sale

I3 has announced the sale of the majority of its royalty interests in Canada, for US$24.8m cash. This allows the company to fully repay amounts drawn on its debt facility and create a working capital surplus, giving I3 significant additional funding flexibility going forward

Clean Power Hydrogen - New customers and licensees circling…

CPH2 has released FY23 results with the company completing the period with a slightly lower cash outflow from operations and a higher cash balance than forecast. Looking ahead, with a new and improved technical and engineering team, the company has committed to completing Factory Acceptance Testing of its first MW scale electrolyser, the 0.5MW MFE110, within the next three months. In our view, this will be a major milestone for the company which will demonstrate that its unique technology can be