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TMZ acquires Australia’s Highest Grade Undeveloped Silver Asset



TMZ acquires Australia’s Highest Grade Undeveloped Silver Asset

The prices of precious metals (gold and silver) have experienced slight pull back in recent months.

For many, particularly leveraged early stage stocks, this suggests a likely return to form in the early months of 2021.

This is especially true for silver stocks, as analysts believe the price of silver is poised to run hot next year.

According to Kitco analyst Peter Hug, “Once industrial demand picks up, more tailwinds for silver will push the metal closer to the $35 to $40 an ounce range next year.”

Thomson Resources (ASX:TMZ) could be positioned to capitalise on this precious metal resurgence, with an existing Gold portfolio and the pending acquisition of two silver assets.

Thomson is a NSW focused explorer, set to acquire 100% of two transformational silver assets in the first months of 2021, with due diligence to be completed in January.

The Webbs Project is Australia’s highest grade undeveloped silver asset and will be complemented by the Conrad Silver Project.

Historical workings show Conrad has a very large “in ground value”; one which the previous owner demonstrated to have value of almost one billion dollars.

Both projects have seen historic silver production and have a resource defined compliant with the JORC Code 2004 as follows:

  • Webbs: 1.5Mt @ 345g/t Ag Eq – 16.5 million ounces Ag Eq
  • Conrad: 2.65Mt @ 206g/t Ag Eq – 17.5 million ounces Ag Eq

Both silver projects are located in the New England Fold belt in NSW and combined, equate to an acquisition of over 30 million ounces of silver equivalent resources.

The projects will be acquired from the $207M capped Silver Mines Ltd (ASX: SVL), and as part of the acquisition, Silver Mines will hold ~ 19% of the issued shares of TMZ, which will be escrowed for 12 months. Silver Mines Managing Director Anthony McClure will take a board seat as a Non Exec Director.

The company is aiming to start aggressively expanding its silver resource base over the coming months, both organically and via acquisitions.

There is an experienced management team driving this agenda and it has been strengthened by the engagement of Global Ore Discovery, led by Stephen Nano.

Global Ore is assisting with running the due diligence process of on the silver assets and has a history of silver project generations that lead to takeovers.

Thomson stacks up

Thomson has a $30M market cap, and recently raised $6M, so appears well funded for near term exploration.

With the early stage nature of TMZ’s silver ambitions, the company is provided significant leverage to this metal heading into 2021, and compares favourably with other ASX listed silver stocks.

Its closets peer is Investigator Resources (ASX: IVR), which is currently capped at $63M. IVR’s South Australian Paris Silver Project has a resource of 9.3 million tonnes at an average 139 grams per tonne of silver and 0.6% lead for a contained 42 million ounces of silver and 55,000t of lead.

Thomson’s peers also provide a pathway to growth, favourably indicating how the market values silver ounces in the ground.

The company seems severely undervalued compared to its peers on a market cap vs silver grade basis, however once the transaction is completed and resource inventory grows, TMZ is expected to catch up.

Aside from silver, Thomson has a number of quality intrusion related gold systems in NSW and Queensland, where it is undertaking extensive rolling drilling programs that build on previous high grade results.

Silver, with a side of gold

 It is clear that Thomson exhibits ample upside moving into the new year.

TMZ is focused on building a strong silver resource base in 2021, whilst being supported by existing gold assets.

In the coming weeks, the company is set to complete its due diligence to acquire high grade, undeveloped silver assets, with the acquisition to be completed early in 2021.

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Minbos’ dedication to African food supply continues to grow



Minbos’ dedication to African food supply continues to grow

Minbos Resources Limited (ASX: MNB) last week announced a Memorandum of Understanding (MOU) with the International Fertilizer Development Centre (IDFC), which will work to develop and grow the Small Holder Farmer market in Angola.

The IFDC is an international non-for-profit organisation, dedicated to scientific innovations that increase global food production, protect the environment and empower Small Holder Farmers.

The organisation strives to improve the lives and productivity of Small Holder Farmers, and does so through running country-scale agricultural projects across Africa. These projects introduce farmers to improved agricultural practises, fertiliser technologies and facilitation of market access.

As crop yields grow in Sub-Saharan Africa, so too does the demand for key ingredients of food production such as fertiliser.

A severe demand for reliable sources of fertiliser is imminent, with fertiliser consumption expected to almost double in the next 10 years in Africa.

Minbos has worked in partnership with the IFDC for several years, most notably to help develop the company’s Cabinda Phosphate Product, which included developing market demand in one of the most prospective fertiliser regions globally.

Developing food security in Africa

Minbos is building a nutrient supply and distribution business that stimulates food security in Angola and the broader Congo Basin.

This project has the potential to impact the whole country by boosting fertiliser production and food security.

Indeed, the new MOA with IFDC provides the platform to develop a joint proposal for a multi-year project designed to support the development of the local fertiliser market in Angola.

Angola is one of the world’s great untouched agricultural regions, possessing over 35 million hectares of arable land, high rainfall and some of the lowest rates of fertiliser use globally.

Minbos hopes to leverage the IFDC’s innovative research and market expertise to identify sustainable solutions for soil and plant nutrition for the benefit of Small Holder Farmers, local communities and the environment.

Utilising strategic partners, the IFDC works with national and private parties to create or expand Small Holder fertiliser demand in parts of Angola.

Productivity gains are predicted to cause marketable crop surpluses, encouraging additional farmer investment in fertilisers.

More than four million Small Holder Farmers are expected to be reached by the IFDC Angola project, which will be underpinned by Minbos’ fertiliser production.

The Cabinda Phosphate Project will commence production at 50,000tpa.

Given the large Small Holder Farmer market in Angola and the IFDC’s strong record of delivering high-impact projects which boost fertiliser usage, demand is expected to exceed the nameplate capacity of 150,000tpa.

Commenting on the MOU, Minbos CEO Lindsay Reed said, “As the Company looks to enter production in early 2022, securing market offtake through a program that unlocks value for local Small Holder Farmers and government stakeholders, as well as Minbos shareholders, is key to our successful collaboration.

“This first step in developing a project to establish a new market in Angola marks another milestone for Minbos as we look towards production in early 2022.”

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Q&A With StockPal – VRX Silica (ASX:VRX)



Q&A with StockPal - Bruce Maluish, Managing Director of VRX Silica (ASX:VRX)


Watch Bruce Maluish, Managing Director of VRX Silica (ASX:VRX) and Jared Sim, Editor-in-Chief and Co-Founder of StockPal in this engaging Q&A with the following questions:

0:11 – What is your business about and why did VRX pivot to silica sand in 2017?

1:04 – How did your company cope with the COVID-19 pandemic and could you elaborate on the advancements made in the September Quarter?

2:12 – What projects are you currently working on and how do you see the silica sand market outlook to be steering VRX Silica’s business in the near future?

3:40 – What is your target timeline for commercialisation and where does its Boyatup Silica Sand Project currently stand?

4:42 – What is your firm’s competitive advantage in the silica sand market over other names in the space?

6:14 – Do you think a silica sand sector is developing in Australia and could you please shed some light on the company’s financial footing?

7:42 – How are you currently engaging with your investors and could you touch upon the company’s future plans?

Visit VRX’s website to learn more about their story:

Email if you are or represent a listed-company and is keen to be in our interviews.

Want to be on the list next time this company raises capital? Open an account with Fresh Equities and start exploring capital raises –

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Red Mountain to start gold drilling as it looks to acquire rare earths project



Red Mountain to start gold drilling as it looks to acquire rare earths project

After completing the required heritage clearance survey, and securing a reverse circulation (RC) drill rig for its maiden drill programme at its Mt Maitland high-grade gold project in Western Australia, Red Mountain Mining Limited (ASX: RMX) is set to start drilling.

The drilling program is planned for 18 holes for approximately 1300 metres and is scheduled to commence in the first week of November.

Historical mining delivered an average production grade of 19 g/t gold and the company expects there could be early stage share price catalysts on the horizon should the program go well.

RMX’s project is in close proximity to the $1.1 billion Westgold Resources Fortunum Gold Mine and its Bluebird Gold Mine to the south. It is also near the $800.3M capped Sandfire’s Monty Gold Mine and its Degrussa Copper Gold Mine.

RMX acquired the Mt Maitland project, which lies within the prolific Murchison Goldfields in July this year and is encouraged by a significant gold nugget found while prospecting within the Mt Maitland tenure.

The nugget points to the potential high-grade nature of the mineralisation at the Mt Maitland Project.

The Mt Maitland Project came with multiple drill-ready targets and historic production which averaged 19g/t Au.

Outstanding results from historic exploration at Mt Maitland include:

  • gold-in-soils: peak 2,724 ppb, anomalies over 13 kilometres of strike
  • rock chips: up to 62g/t Au, 8.8% Cu and 290g/t Ag channel sampling: 2.50m @ 22.7 g/t Au and 0.75m @ 61.8 g/t Au
  • Drill results include 13m @ 2.53 g/t from 9m, 2m @ 1.53 g/t from 13m

During the heritage survey, additional geological mapping was conducted which has assisted RMX to vector this maiden drill program.

Rare earth pick up

RMX is also in the throes of acquiring a new rare earths/nickel-cobalt project.

The company reached agreement with ARD Group (ARD), the vendors of the Mt Mansbridge heavy rare earths project, to favourably restructure the transaction that was voted down by shareholders in March 2020.

The Mt Mansbridge Project consists of three West Australian tenements containing targets prospective for HREE and nickel-cobalt.

Located in the Kimberly region of Western Australia, the project area is approximately 130 kilometres south-east of the township of Halls Creek and consists of three contiguous granted exploration licenses E80/5111, E80/5229 and E80/5413 which combined cover a total area of 280 square kilometres.

As indicated below, the tenements lie approximately 40 kilometres from Northern Minerals’ (ASX:NTU) flagship Browns Range project.

Shares in Northern Minerals have doubled in the last four months.

The project area has been subject to exploration activities since the 1970s, primarily for uranium, gold and diamonds which were all unsuccessful.

The presence of the REE mineral xenotime in the Killi Killi Prospect has been overlooked and RMX now see the opportunity to capitalise on this and determine whether there is an economically viable concentration of REEs.

As part of funding the exploration program at Mt Mansbridge, Red Mountain has received firm commitments to raise $360,000 (before costs) via a share placement to professional and sophisticated investors.

The Placement will be undertaken at 1.2 cents per share and is subject to shareholder approval.

The company is also encouraged by recent activity in the rare earths sector.

The $1.5 billion takeover bid for Lynas Corporation by Wesfarmers Limited (ASX: WES) and the recent speculation that China may restrict further material to the US has once again seen a surge in Rare Earth prices and renewed market interest and investor sentiment back to the sector.

With China currently responsible for more than 80% of global supply of rare earths, there are supply chain concerns as Beijing could use its dominant position as a rare earths exporter to the US as leverage in the trade dispute with the sector being the next front in the trade war.

This has resulted in a strong global interest in the identification and development of non-Chinese sources of rare earths to reduce the dependence on supply from China.

The future supply of heavy rare earths is critical in the development of high-tech applications and high-performance magnets used in electric vehicles and wind turbines.

The crackdown by Chinese authorities on the mining of ionic clay deposits in Southern China for environmental reasons, the lack of substitutes along with very few significant sources of heavy rare earths outside of China, has resulted in a favourable outlook for the commodities.

Other projects

Red Mountain has a number of other projects at various stages.

A preliminary groundwork exploration programme has been designed for prospective regions within the granted Koonenberry tenement EL8997, with land access agreements currently in the process of being finalised.

The Koonenberry Gold Project covers approximately 660 square kilometres, and is located in a geologic setting considered analogous to the prolific Victorian Goldfields located in south-eastern Australia.

The Koonenberry Gold Project adjoins Manhattan Corporation’s (ASX:MHC) Tibooburra Gold Project where Manhattan announced a new high-grade gold discovery in June.

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