20 Mining Companies to follow for 2025 – Part 2 (F-Z)
Readers need no reminding its been another indifferent year for UK markets, and another poor one for AIM.
Nearly 90 companies have left the exchange in the past year, leaving not much more than 700, the fewest since 2002: 1,694 companies were quoted at the market’s 2007 peak.
Such is the dark mood that a forecast by investment bank Peel Hunt that up to a third of small and mid-cap AIM businesses could be bought up next year, rendered vulnerable due to a lack of liquidity and depressed valuations, might be the best bet for many investors.
That is perhaps rather too bleak. AIM head Marcus Stuttard, noting that so far this year 40pc of all capital raised across Europe’s growth markets has come from AIM, said that ‘Over almost 30 years, AIM has supported more than 4,000 companies to raise nearly £135bn in equity capital, enabling pioneering businesses to fund innovation, create jobs and drive growth.’
With appropriate reforms, and a more favourable low interest rate economic environment, things could be different. Of the more than 250 European start-ups generating $100m to $500m in revenue, almost half are based in the UK. Britain has a world class scientific research base, and a strong record of innovation in blooming sectors such as AI, fintech and biotech. Markets need to try harder to attract them.
In the meantime those companies that do list on AIM offer opportunities for the diligent researcher, many of them, as our roundup suggests, in the energy and resources sectors.
All of these resources and more are well represented in our selection of companies to look out for in 2025. As we noted in our introduction to Part I of our mining roundup, it’s 2024 has been a trying time for most natural resources small caps.
Here we consider the prospects for 10 more small cap miners.
MetalNRG now known as Atlas Metals
Formerly known as MetalNRG, Atlas Metals (AIM:AMG) has sent investors on a rollercoaster ride over the past few months.
The company changed its name earlier this month following a proposed reverse takeover of a producing copper project in Morocco’s Atlas Mountains. The acquisition generated considerable investor interest, sparking a 500pc surge in the refreshed company’s value. But AMG has come plunging back down to Earth in the past few days after failing to raise funds for the deal within the specified timeframe.
AMG signed a binding sale and purchase agreement in October to acquire the entire issued share capital of Compagnie Minière de Oumejrane (CMO), a company with mining operations throughout Africa, and part of the Managem Group. The deal would give AMG full ownership of the producing, cash generating and profitable Oumejrane copper mine, located in the Eastern Anti-Atlas of Morocco. The operation comprises four operating underground mines, two active open pit mines, and a process plant that has produced 21pc grade copper concentrates since 2014. CMO also owns four exploitation licences. Oumejrane generated $28m revenue in 2023.
AMG said: ‘This will be a transformational transaction for the Company, giving us 100pc equity ownership of a fully operational, producing and profit generating copper mine. Beyond the immediate gains, this strategic move opens the door to substantial upside potential and a wider relationship with the Managem Group.’
However, the takeover was subject to AMG raising up to £15m. Just before Christmas the company announced that ‘in light of feedback from prospective institutional investors in connection with the Placing and market conditions, it has been unable to do so within the timeframe allocated in the SPA.’ Managem has therefore terminated the SPA with immediate effect, and AMG has not been able to draw upon the $25m convertible loan note facility the company had arranged to complete the acquisition. AMG said: ‘The Company is now examining possible alternative options to which may allow it to continue to engage in the closing of the Acquisition. However, as noted previously, there can be no certainty that the transaction will be successfully completed.’
Though the CMO acquisition remains fundamental to AMG’s investment case, the company has other interests.
AMG retains assets from MetalNRG, notably the Gold Ridge Project, a set of historic gold mines in covering 138 hectares on the lower southern slopes of the Dos Cabezas Mountains over a 1.8 km strike within prospective 5km long vein swarm. The licence’s Gold Prince mine produced approximately 22,000 oz through to 1996. AMG has delineated a viable 1.74 g/t of gravity recoverable gold from the waste dump outside the Project’s level 6, comprising 2,498 tonnes containing 5.25 kg (169 ounces) of gold. The company is seeking earn-in partners to enable further development of the asset.
AMG retains an 9.9pc interest in the IMC-Uranium Project in Kyrgyzstan owned by International Mining Company Invest. The Project was on hold until this year, when Kyrgyzstan legislators approved a bill lifting the ban on prospecting, exploration, development and mining uranium and thorium in the Republic. AMG’s internally estimated NPV of the project was, prior to the moratorium on uranium mining in the country, approximately $250m (based on current prices of $91/lb for uranium).
The company also maintains a 3pc equity stake in the Lake Victoria Gold Project in Tanzania. The venture’s primary focus is the Tembo Gold project adjacent to Barrick Gold’s 20 Moz Bulyanhulu Mine. An independent Resource Estimate and Geological report has classified a Resource of 200,000 oz for the drilling undertaken to date. An independent feasibility study indicates an economic open cut Reserve of 44,000 oz at 2.9 g/t for the two ore zones so far explored.
Since the CMO deal fell through AMG’s share price has collapsed from 48p to 11p at the time of writing, with a market cap of £1.63m. Existing shareholders have been burned, but at this low price the company may entice investors willing to bet that it can resurrect the acquisition.
Ferrexpo
Shares in Ukraine-based iron ore company Ferrexpo (LON:FXPO) has more than doubled in recent weeks amid speculation that the incoming Trump administration will be able to broker a deal to end the conflict with Russia. The company has also impressed markets through its resilience in maintaining production in the face of Russia’s ongoing attacks on Ukraine’s power network, and a downturn in global iron ore prices.
FXPO produces high grade iron ore pellets, a premium product for the international steel industry that enable reduced carbon emissions and increased productivity for steelmakers when converted into steel, compared to more commonly traded forms of iron ore. A major supplier to the global steel industry for more than half a century the company maintains a global customer base of premium steel mills. FXPO is a major contributor to the Ukrainian economy accounting, for 4pc of export revenues in 2021 and employing a local workforce of more than 10,000. The company has several mines, the largest being the open pit Poltava Mine with a JORC-compliant Ore Reserve of more than one billion tonnes of iron ore, the equivalent of over 50 years of remaining mine life at the current rate of production.
The company’s H1 results showed it has continued to demonstrate resilience through the war, retaining its entire workforce whilst increasing production and ensuring exports to our customers around the world. With access to Ukrainian Black Sea ports returning, FXPO was able to bring idled production capacity back on line and export to its customers via seaborne routes, facilitating its best production result since the start of Russia’s invasion.
Total commercial production for the first six months of 2024 increased by 75pc to 3.7 million tonnes, comprising 3.3 Mt of pellets and 0.4 Mt of commercial concentrate. Total sales increased by 85pc to 3.8 Mt, of which 1.8 Mt were exported through Ukrainian Black Sea ports. Revenues increased by 64pc to $549m due to increased sales volume, although prices were lower than in 1H 2023. Profit after tax increased by 104pc to $55m. Interim underlying EBITDA increased by 24pc to $79m, reflecting the net effects from higher sales volume and lower realised prices and higher production costs, principally driven by rising energy prices in Ukraine. The company ended the period with a $112m net cash position, comprising $115m of cash and cash equivalents, and minimal financial debt of $4m.
FXPO has had to cope with continued Russian attacks on Ukraine’s power supply, and a downturn in global iron ore prices. Production costs increased due to higher energy costs, expanded mining activities, maintenance and repairs. The company is hopeful that domestic electricity supply will improve as power plants that were shut for maintenance come back on-line.
The company has also adjusted to changes in its supply patterns. The Ukrainian government has mandated large enterprises to import 80pc of their electricity needs from neighbouring European countries. FXPO is currently sourcing electricity from our European neighbours, but at a higher cost. The company is hopeful about sustaining production levels provided that seaborne exports continue to be safe and viable in an environment where iron ore prices are subdued and costs under pressure.
FXPO reported robust production results for the third quarter to the end of September 2024. Total production for the quarter was 1,397,698 tonnes, comprising 1,269,727 tonnes of pellets and 127,971 tonnes of 67pc iron concentrate. Total production for the nine months to the end of September 2024 was 5,125,034 tonnes, a 47pc increase compared to the comparable period last year. To mitigate the pressure on margins, the company focused on sales of higher quality iron ore products to customers in close geographical proximity. This included expanding its customer base in the MENA region. The company has been encouraged by increasing iron ore prices on the back of an improvement in sentiment, spurred on by announcements of economic stimulus measures in China.
FXPO currently trades at £1.13p, up 30pc this year, with a market cap of £650m.
First Class Metals
First Class Metals (LON:FCM) entered into a conditional agreement this year to speed exploration of gold, nickel, lithium, and rare earth elements (REE) prospects in Canada.
FCM commands a vast land package in the Hemlo Mining Camp and North West Ontario, benefiting from excellent proximity and geological vectors from neighboring mineral-rich zones.
The company’s flagship North Hemlo property, extending across 414 claims covering 87 km2, has significant gold occurrences and drill-proven nickel-copper sulphides. A high-definition magnetic survey of more than 4,000 line km has shown additional linear anomalies that require systematic exploration.
The Pickle Lake Project, comprising 33 single cell mining claims covering 700 hectares on the Eastern flank of North Hemlo Project, contains a 600-long soil/VTEM anomaly known as ’West Pickle Lake’ proximal to identified nickel anomalies. FGM has a joint venture with Palladium One, which has the option to earn-in to an 80pc interest in the claims subject to a three-year work programme commitment. To date a total of 32 holes totalling 6,766 meters have been drilled in the vicinity of the West Pickle Lake Discovery. Drilling continues to expand the strike of the mineralisation. With the discovery remaining open into the west, FGM will examine the possibility that the discovery continues onto the North Hemlo prospect.
The 70 km2 Sunbeam Project hosts the historic Sunbeam Mine, which operated from 1898-1905 and was reportedly mined at an average grade of 12.2 g/t gold. The Project now contains three parcels of claims: the central Sunbeam area, the peripheral ‘English Option’, and a parcel of 119 claims contiguous to the northeast. The historic mine has only been subject to minor modern-day exploration, with the structure hosting the deposit remaining open in all directions and at depth.
The Zigzag Project, a hard rock lithium prospect encompasses a six-unit claim group covering a historic lithium occurrence and other mineralised sites. The pegmatite historically was reported to be more than 800 metres long and up to 18 metres thick. It remains open along strike and to depth and is yet to be fully evaluated. The occurrence’s potential remains largely untapped and remains open along strike and at depth. Historic drill holes along the occurrence have returned significant lithium intersections. Results from initial prospecting programme of 39 grab samples were very encouraging, with 19 samples reporting over 1pc lithium oxide. The Project is also prospective for tantalum, gallium and caesium.
The Esa property, with 86 claims, covers 20.6 km2 some 11 km northeast from the Barrick Hemlo gold mine. Esa sits between the Cedar Lake Pluton and Musher Lake Plutons. Such intrusions are significant drivers of mineral-rich fluids and often found in close association with economic mineralisation. FGM’s exploration permit allows for the stripping of overburden in selective areas along the shear zone where soil samples have indicated strong gold and the pathfinder element anomalism.
FCM initiated field work on its projects this summer. The company’s work has been funded through equity raises as well as sale of certain properties, raising a collective £435,000. As at 30 June 2024 the company held £83,006 cash
But the company’s most significant news came last month with the announcement of a conditional subscription agreement with asset manager The Seventy Ninth Group, according to which the Group will take a 51.2pc interest in FCM for approximately £2.18m. FCM said: ‘The deal will provide FCM with an enhanced capability to unlock the potential of our northern Ontario assets. This investment demonstrates the strength of our proposition, particularly against the challenging backdrop of UK capital markets. Securing funding of this nature is essential to advancing our exploration efforts and building shareholder value. With the backing of Seventy Ninth Group, a supportive partner with global reach, we are well-positioned to drive forward our projects efficiently and responsibly.’
FCM currently trades at 1.9p with a market cap of £2.12m.
GEM Resources
GEM Resources (LON:GEMR), which rebranded this year from URA Holdings to reflect a renewed focus on coloured gemstone mining and exploration, continues to work to bring South Africa’s historic Gravelotte Emerald Mine back into full production.
During its peak in the 1950s and 1960s Gravelotte emerged as one of the world’s largest emerald mines, producing nearly 113 million carats from 1929 to 1982. Large-scale production at Gravelotte ceased in the 1980s leading to the mothballing of extensive infrastructure. GEMR is committed to revitalising the mine, integrating advanced mining technology to unlock untapped emerald reserves and enhance production efficiency.
An independent financial model for the Gravelotte mine published this year indicated a net present value of more than $22m, based on the current inferred JORC resource of the two pits now being operated (amounting to 29 million carats), along with a small portion of the larger JORC exploration target over the rest of the licence area. The model, which assumes a mine life of 17 years for this particular area, shows an estimated profit before tax of $79.5m over the mine’s life, a IRR of 76pc, and a payback period of 2.5 years. The exploration target for the overall licence is up to 344 million carats. Gravelotte is currently positioned for staged mining operations, leveraging established infrastructure and extensive historical data. Much of the extensive mine site infrastructure has recently been refurbished or upgraded in preparation for the restart of operations.
GEMR recommenced emerald production at the mine in April, with processing and sorting soon moving to a recovery level of more than 80pc. By July processing was proceeding at approximately 60-70 tonnes per day, with an average emerald grade of around six grams (30 carats) per tonne. Historically Gravelotte has been known for producing small, good colour stones, but production to date has included several larger emeralds. Auction sales will be conducted through Bonas, the world’s largest independent GEMRstone tender house.
An operational update earlier this month reported that the refurbishment of and upgrades to the processing plant had been successfully completed. During the first two weeks of operation (following the upgrades), the processing plant achieved an average increase of approximately 45pc in processing capacity, translating to an average of approximately 100 tonnes of ore processed per day.
The success of the plant upgrades has enabled the company to progress to the projects second phase, the reactivation of mining operations in the mine’s Cobra Open Pit. GEMR says this marks ‘a critical step toward securing a steady supply of high-grade ore for processing and further enhancing the quality and quantity of emeralds recovered.’
In tandem with bringing Gravelotte back online, GEMR acquired a 65pc share in Curlew Emerald Project located in the Pilbara Region of Western Australia, financed by a £425,000 placing. Curlew is currently an active small-scale open-pit emerald producer, particularly known for especially large emeralds, with significant potential to scale up and expand, a process we are already undertaking. The Mine is currently producing emeralds on a small scale with significant potential for expansion. The property is adjacent to Eastern Resources, which has identified high-grade lithium deposits. Eastern Resources has expressed interest in exploring the site further, which is compatible with ongoing emerald mining operations.
GEMR also has two large-scale exploration licences covering 1,284 km2 in north east Zambia. Licences include prospectively viable quantities of high-grade graphite, coltan (containing niobium and tantalum), lithium, and rare earth elements. The licence area includes the well known Njoka graphite deposit with an exploration history dating back to 1933. The minerals present are located at or are close to surface.
GEMR’s most recent interims, for the six months ended 30 June 2024 reported a cash balance of £716,000. The company currently trades at 0.6p with a market cap of £1.82m.
Guardian Metal Resources
Guardian Metal Resources (AIM:GMET) has surged more than 200pc this year as the company has proved up the value of a cluster of Nevada-based projects prospective for the critical metals tungsten, gold, lithium, copper and silver.
The company’s flagship Pilot Mountain Project, which may prove to be the largest undeveloped tungsten prospect on US soil, is an advanced exploration and mineral resource definition stage venture located in Mineral County in western Nevada. Pilot Mountain comprises four existing mineral deposits, Garnet, Good Hope, Gunmetal and Desert Scheelite, all of which possess significant skarn-style tungsten-copper-silver-zinc mineralisation.
Pilot’s first diamond core drillhole assay results intersected three zones of highly significant tungsten mineralisation together with ancillary zinc, silver and copper. Individual standout very high-grade assay results included 1.37pc tungsten trioxide (108.7 to 110.2 metres downhole depth) and 1.44pc tungsten trioxide (114 to 115.5 metres downhole depth), ‘some of the highest ever single drill assay results achieved across Pilot Mountain to date’. Core sample assay results returned upper limit of detection results for 20 tungsten samples at more than 3,000 ppm, and 15 zinc results at more than 10,000 ppm, three silver results at more than 100 g/t, and one lead result of more than 10,000 ppm.
Another batch of drillhole assay results published last month reported further very high-grade tungsten and copper intersections. Individual standouts included a high-grade assay result of 1.5m @ 5.02pc copper, representing the second highest drilled copper assay results achieved from Pilot Mountain to date. The vast majority of the intercepts are located entirely within the planned pit shell and represent a significant upgrade from the low grade block model that occupied the area beforehand..
Earlier this month GMET derisked the Project further by purchasing water rights for a permit in the Kibby Basin Valley, directly adjacent to Pilot Mountain Project. GMET said: ‘Water rights are a crucial requirement for mine development and ongoing operations. When the opportunity arose to purchase the water rights within the basin directly adjacent to Pilot Mountain we jumped at the opportunity as this represents a significant derisking step for our flagship asset. With these rights now in hand, we push forward with further confidence towards our goal of being the only domestic US miner of the critical defence metal, tungsten.’
GMET’s other headline project, Garfield, is a copper-gold-silver prospect consisting of 65 lode mining claims covering 5.4 km2, also located in Mineral County. The Kibby Basin Lithium Project which – as noted above – is close to Pilot Mountain, covers two claim packages prospective for lithium brine mineralisation. The project’s southern claim package is less than 250 metres from a 2022 drillhole which returned a significant 169 metre interval of lithium brine determined to be open in all directions.
A ground magnetic geophysics survey undertaken early in the year delineated three significant magnetic high anomalies in proximity to surface mineralisation, two located within the project’s High-Grade zone, and one magnetic anomaly located within the southwestern part of its Power-Line zone. Analysis indicated ‘they are likely related to large buried magnetic bodies at depth’, providing support for the company’s belief that the significant copper-gold-silver mineralisation found at surface within the two zones is related to a buried copper porphyry system.
Rock sampling has returned ‘exceptional and consistent high-grade copper-gold-silver results’, including up to 15.56pc and 9.58pc copper equivalent, with seven of the eight samples returning more than 1.75pc copper equivalent. The ground magnetic geophysics survey completed over the zone highlighted a buried magnetic anomaly proximal to the high-grade rock sample results, ‘pointing to the potential for the Freeze Zone to host a mineralised porphyry system’.
Postulating that the additional porphyry target indicated that ‘multiple mineralised porphyry centres may exist across the Project’, GMET stated four main named target zones, Power-Line, High-Grade, Pamlico and Freeze, with varying porphyry, skarn- and epithermal affinity. The company is finalising preferred drill target locations, with permits to be submitted to regulators shortly.
Earlier this month GMET closed on the acquisition of another venture prospective for tungsten, the Tempiute Tungsten Mine & Mill in south-central Nevada. Due diligence has confirmed the presence of ‘a robust tungsten-rich skarn-type mineralising system at Tempiute with historical reference to underexplored mineralised breccia pipes as well as porphyry zones, pointing to the potential for significant exploration upside at the Project.’
GMET raised £2,154,074.58 ($2.75m) in August in support of ongoing development. The company currently trades at 28p with a market cap of £35m.
Jangada Mines
Brazilian focused mining project development company Jangada Mines (AIM:JAN) has leaned into its wider critical minerals portfolio this year as the slowdown in global iron ore prices has delayed development at its flagship Pitombeiras vanadium titanomagnetite (VTM) Project.
Pitombeiras is a fully-owned high-grade vanadium, titanium, iron ore development venture with the potential for open pit extraction. Work undertaken by JAN over the past five years has advanced the Project to the point of production decision, with a potential lead time from commencement of mine construction to cash flow estimated at between six to nine months.
A 2021 Mineral Resource Estimate of 8.26 Mt over three of the prospect’s known eight anomalies. Pitombeiras has Measured and Indicated Resources of 5.10 Mt at 0.46pc vanadium oxide, 9.04 pc titanium oxide, and 46.06pc ferric oxide; and an Inferred Resource Estimate of 3.16 Mt at 0.44pc vanadium oxide, 9pc titanium oxide and 45.86pc of ferric oxide. Significant upside remains as resources have been defined on only three out of eight known targets over a total area of 1,958 hectares. A 2021 Preliminary Economic Assessment published in 2021 highlighted the Project’s robust economics and excellent potential to become a profitable producer of ferrovanadium concentrate.
Development has effectively been on hold this year due to the unfavourable iron ore pricing environment, but following a revaluation JAN recognised that its promise extends beyond its iron ore resources, with its high titanium and vanadium content offering potential transition commodities. With reported recovery rates of 86.73pc for titanium oxide, 91.19pc for ferric oxide and 95.88pc for vanadium oxide the company believes ‘the project could be transformative’. JAN’s next steps will include upscaling testwork to deliver an additional economic study to further explore the project parameters
JAN has a 3.6pc investment in Fodere, a UK minerals technology company, which has developed new and innovative commercial processes and applications in extractive metallurgy, to extract titanium dioxide, vanadium pentoxide and other valuable products from low-grade ores and waste stockpiles. Following successful pilot-scale testing, the company is now developing a pre-commercial plant to further test the scalability of this technology. JAN says financial projections for Fodere ‘are highly promising, both for its South African tailings project and for its potential application at Pitombeiras.’
JAN has another significant investment in Blencowe Resource Plc (LSE:BRES), which has an emerging portfolio of key battery metals projects located in northern Uganda, Africa. Its primary projects include Orom-Cross, a potential world class graphite project both by size and by end product quality, with a JORC Resource of 24.5 Mt. A 2022 Pre-Feasilibily Study provided a Net Present Value of US$482m, capex to first production of $62m, average EBITDA of $100m per annum and a return of $1.1bn in free cash over a 14 year mine life. Another, Akelikongo, is a nickel sulphide and copper project that has had $15m spent on exploration to date by previous JV owners Rio Tinto and Sipa Resources.
JAN says its investment in Blencowe ‘is proving to be timely’, fuelled by the robust dynamics of the graphite market. Metallurgical testing of a 600-tonne bulk sample study at Orom-Cross has successfully demonstrated the conversion of raw materials into battery-ready products.
Last month Blencowe accepted an invitation to join the prestigious international SAFELOOP consortium managed under the European Commission’s €100bn Horizon Europe Programme, focused on the European Union’s renewable energy transition. JAN says ‘SAFELOOP represents a transformative opportunity for Blencowe and its Orom-Cross Graphite Project in Uganda, positioning the project as a critical supplier in the European EV supply chain with exclusive access to premium pricing contracts, large-scale offtake commitments of up to 100,000 tonnes annually, and strategic partnerships with tier-one European gigafactories and EV manufacturers.’ Orom-Cross will serve as an exclusive supplier of natural flake graphite concentrate for all anodes used in SAFELOOP Gen3 Li-Ion batteries, providing a high-quality source for this critical component. SAFELOOP pricing expected to be significantly higher for graphite than for similar concentrate sold into Asian markets.
The company currently trades at 0.8p with a £2m market cap.
Landore Resources
Landore Resources (AIM:LND) has continued to define the potential of a set of licences prospective for gold and battery metals its fully owned 22,037 hectare Junior Lake Property in Ontario, Canada.
LND’s flagship Junior Lake prospect is the 100pc-owned BAM Gold Project, which has an NI 43-101 compliant resource estimate of 1.5 Moz gold, including approximately 1.0 Moz gold in the Indicated and 0.5 Moz gold in the Inferred Category at a 0.3 g/t cut off. LND is working to crystallise value from BAM’s last estimated NPV of $333.6m based on a $1,800/oz spot price (from a 2022 Preliminary Economic Assessment). The company is undertaking technical studies to increase its understanding of BAM’s geological model with a view to starting a highly targeted 3,500 metre drilling programme ‘in early 2025’. Following this, the company wants to upgrade BAM’s resource estimate and the PEA to reflect the project’s increasingly attractive economics in light of today’s gold prices, which are significantly higher than those used for the last PEA.
The company is using the data already collated on BAM to build a clearer picture of the geological model and increase understanding of where the high-grade mineralisation is located. The focus is along strike to the east of the existing BAM deposit, with the aim of adding to the existing knowledge base of the geological profile. The Deposit has the potential for initial development to be progressed as a low cost, bulk tonnage, open pit operation.
The BAM Gold Project is only the most prospective of several licences situated in the Junior Lake Property.
The B4-7 Nickel-Copper-Cobalt-Platinum-Gold Deposit, a kilometre from the BAM Gold Deposit, hosts mineralisation within a sub-vertical massive sulphide vein with stringers, net-textured and disseminated sulphides in the immediate hanging wall. The B4-7 deposit outcrops at surface with an upper 150 metres of deposit amenable to lower cost open pit mining. The most recent resource estimate for B4-7 Deposit An upgraded resource estimate for B4-7 Deposit in 2018 reported an Indicated 3,292,000 tonnes (1.20pc nickel equivalent), and Inferrered 568,000 tonnes (1.26pc nickel equivalent) for a total of 46,661 tonnes of contained metal.
The VW Nickel Deposit outcrops at surface with an upper 150 metres of deposit amenable to lower cost open pit mining. Metallurgical studies indicate nickel concentrate grades and recoveries ranging from 14pc nickel at a 74pc recovery rate to 10pc nickel at an 80pc rate. A MRE reports Indicated 1,080,000 tonnes (0.71pc nickel equivalent and an Inferred 180,000 tonnes (0.68pc nickel equivalent).
The Lamaune Gold prospect consists of a conceptual exploration target of 1,350,000 to 1,650,000 tonnes, containing between 40,000 and 50,000 ounces of gold at 0.3g/t cut-off. ts proximity to the Lamaune Iron deposit has the distinct advantage that almost every drill hole intersects both deposits, with resultant economic savings.
LND has advanced the BAM Gold Project this year through the completion of planned technical activities designed to enhance the project’s existing geological model, identify potential gaps and maximise understanding of the orebody architecture. Work has included a structural geology study; infill sampling of historical drill core in areas of interest identified following reinterpretation of the existing geological model; targeted channel sampling focusing on known outcrops along strike to the east of the currently delineated BAM deposit; planning for a 3,500 metre drilling campaign to target highly prospective extensions of previously undrilled mineralised domains and areas of interest identified within the previous mineral resource estimate; planned gold deportment studies and additional metallurgical test work; and a soil sampling programme focusing along strike to the east of the existing BAM Deposit: anomalies generated from the soil sampling will be used for future exploration drill targeting to expand the existing gold resource.
LND intends to use the significant data already available on BAM over the coming months to establish a clearer picture of the geological model and better understand where the high-grade mineralisation is situated before commencing the drilling programme.
LND’s most recent results, for the six months ended 30 June 2024 reported cash of £2,096,773 and no debt. The company supercharged its finances in June with a £3.68m raise.
LND currently trades at 4p, up more than a third this year, with a market cap of £12.5m.
Lexington Gold
Lexington Gold (AIM:LEX) has continued to elaborate and expand its interests in South Africa’s Witwatersrand gold fields and a set of historic gold mines in North and South Carolina.
LEX holds its interests in South Africa through a 76pc stake in White Rivers Exploration (WRE), a major tenement holder in the Witwatersrand gold fields, with 10 prospecting right applications and a cluster of existing licences. The Witwatersrand fields have accounted for more than a third of the world’s total gold production since 1886, and together represent the world’s largest single gold producing district, with estimates production of more than 2 billion ounces of gold during over a century of mining, with approximately 1.2 billion ounces remaining. WRE’s internal estimates suggest its licences offer more than 37 million ounces of non-code compliant gold resources.
LEX’s US interests comprise licences focused some of the most historic sites from the 19th century Gold Rush:
The Jones-Keystone Project area was initially mined by small scale prospectors from 1852 until the mid-1930s. There is evidence of widespread gold mineralisation with grades ranging between 0.5 g/t to 2.5 g/t within a structurally complex setting typical of the Carolina Super Terrane.
The Carolina Belle Project has several greenfield to brownfield exploration prospects with well-defined and potentially continuous zones of low sulphidation epithermal gold mineralisation identified from historic mines and surface workings. There is potential to extend existing zones of gold mineralisation along the lithostratigraphic horizon and discover additional feeder veins and alteration associated with a larger system.
The Argo Project comprises a number of shallowly worked historic pits and trenches with potential for systematic surface prospecting and mapping to define extensions to known mineralisation. The application of modern exploration techniques for epithermal or vein style mineralisation would include surface geochemistry, ground geophysics and drilling.
Mines at the Jennings-Pioneer Project produced 45,000 ounces of gold through 1852-1859. The area offers several greenfield exploration prospects with well-defined and potentially continuous zones of gold and base metal mineralisation. There is potential to define VHMS style mineralisation and discover additional feeder veins.
This year LEX has progressed its Bothaville Project in South Africa, array results from a drill programme confirming the presence of a potentially significant gold system. Initial observations indicate the potential presence of mineralisation in three of the four mother holes drilled.
Another significant South African development was the renewal of the Jelani Resources Joint Venture (JV) Project for another two years, and the publication of an Independent JORC (2012) Mineral Resource Estimate stating a total 6.02 Moz of gold – with 2.95 Moz attributable to WRE – with an average grade of 6.47 g/t gold.
LEX is also pursuing a new South African venture through an agreement with Gold One Africa, which holds a Mining Right in Ventersburg, Virginia and Henneman in the Free State Province, South Africa, covering approximately 13,837 hectares, adjacent to WRE’s prospecting rights. Gold One Africa’s exploration activities have defined a 4.31 Moz Mineral Resource on its project comprising an Indicated Mineral Resource of 23.49 Mt at 3.81 g/t gold (2.88 Moz) and an Inferred Mineral Resource of 12.85 Mt at a grade of 3.23 g/t gold (1.33 Moz).
The planned collaboration ‘will focus on exploring potential opportunities for shared infrastructure, management expertise, capital raising and economies of scale, with the aim of ultimately establishing and developing a world-class gold deposit in the region.’ Last month the partners published an independently calculated Exploration Target of 1.39-3.55 million ounces of contained gold at grades between 2.82 g/t and 3.44 g/t. Potential uranium and silver by-products were also identified.
In the US LEX has completed a drilling programme at the Jennings-Pioneer Project, targeting gold mineralisation. All three target zones of the licence’s Barite Hill prospect were successfully intersected, with assay results confirming the strike and down plunge continuation a gold mineralisation trend.
The company currently trades at 3.6p with a market cap of £14m.
Panther Metals
Panther Metals (LON:PALM) is an exploration company listed on London’s Main Market, pursuing three sharply defined Canadian prospects prospective for a range of base and precious metals.
PALM focuses on the discovery of commercially viable mineral deposits in established mining jurisdictions with potential for rapid scalability. The company draws on the latest exploration technologies and analysis of extensive geological data to define drilling targets as quickly as possible.
PALM’s fully-aowned flagship Obonga Project, acquired in 2021, covers 90pc of the district scale Obonga Greenstone Belt in northwest Ontario, spanning a total area of 291 km2. The Belt is prospective for base metals including copper, zinc, lead and nickel, and precious metals including gold, silver and platinum group metals (PGM). Minerals such as lithium and graphite are also present. PALM has shifted Obonga’s potential into focus, advancing the Project from a greenfield target area to a well defined prospect with clearly delineated base metal VMS and graphite discoveries. Five prospective primary targets have been identified so far: Wishbone, Awkward, Survey, Ottertooth and Silver Rim.
This summer PALM began an airborne drone magnetic geophysical survey over the Project area to gather high-resolution magnetic data for the definition of 3D models that will help refine planned drill hole orientations. Exploration work has also been undertaken on the Awkward and Awkward East prospect areas, targeting numerous surface occurrences of graphite noted in historical reports, and the mapping of strike extensions related to the wide graphite mineralisation intersected by exploratory drilling. Rock units at a number of localities displayed distinct tourmaline veining, a metamorphic hydrothermal mineral that often forms in association with graphite and with gold.
The Dotted Lake Project, acquired in 2020, and like Obonga fully-owned by PALM, extends 36.9 km2 across a largely unexplored area of the Schreiber-Helmo Greenstone Belt, prospective for base metals including nickel, cobalt, copper and zinc, and precious metals such as gold, silver and PGM. The Project is located 16 km north of Barrick Gold’s Hemlo Gold Mine which has produced over 22 Moz of gold over 30 years to date, and 9 km from GT Resources’ discovery at West Pickle Lake focused on the Tyko One Belt.
Last month 3D inversion modelling and conductive plate modelling of PALM’s airborne geophysical survey data reinforced and supplemented identified base metal, PGE and gold anomalies. Grid analysis has identified target zones of significant structural complexity presenting preferential sites for the development of mineral deposits. Electromagnetic conductor 3D plate modelling has highlighted two parallel conductors, situated on the northern flank of the ultramafic intrusive complex, and 21 prioritised drilling targets.
A diamond core drilling programme has confirmed ‘the presence of the buried ultramafic intrusive system as modelled from geophysical inversion data and as associated with anomalous soil geochemical sampling results’. Early geological core logging indicates the presence of nickel, chrome and copper bearing minerals and quartz veins prospective for gold. Earlier this month PALM reported further samples had been submitted for analysis. Drilling has intersected a variety of lithologies, including the ultramafic intrusive complex, with geological core logging noting serpentinite alteration, chromite layering, the presence of nickel, chrome and copper bearing minerals and quartz veins prospective for gold. The drill rig is remaining on site to allow for a speedy mobilisation to site in early 2025 on the back of positive results.
PALM has significant stakes in two other companies, focused on Canada and Australia.
Earlier this year PALM spun out another Canadian venture, the Big Bear Project, into a a new company, Fulcrum Metals PLC (AIM:FMET), in which it retains a 12.38pc interest, and the right to a 2pc Net Smelter Return (NSR). Listed on the AIM market, FMET aspires to become a leader in the sustainable reprocessing of tailings through disruptive technology and processes. The company’s primary focus is to make an economic discovery on its flagship Schreiber-Hemlo Properties, and to establish the prospectivity of its wider Ontario and Saskatchewan portfolio with a view to securing potential joint venture and/or acquisition interest.
PALM also has a 7.74pc interest in an Australian subsidiary, Panther Australia (ASX:PNT), currently engaged in a 7,000 metre drilling programme covering 10 targets over 35 km of continuous strike at the Laverton Gold Project in Western Australia. The finds from the latest round of work underscore the highly under-explored gold-rich potential of the greater Laverton Gold Project area.
The company’s current work is supported by a placing of £375,000 undertaken in May. PALM made significant gains earlier this year, rising to 140p, before falling back to 84p at the time of writing, taking the company’s market cap to £3.53m.
Power Metal Resources
Power Metal Resources (AIM:POW) has continued to maintain a fast-evolving portfolio of resource projects in North America, Africa, Saudi Arabia and Australia prospective for precious, base and strategic metals. The company seeks large scale metal opportunities offering district scale potential.
POW’s interests range from early-stage greenfield exploration to later-stage prospects currently subject to drill programmes. POW’s philosophy is to develop projects internally or through strategic joint ventures until they become ready for disposal through outright sale or a separate listing, thereby crystallising the value generated from the company’s internal exploration and development work. POW has a 62.06pc holding in market favourite GMET, covered above, focused on Nevada-based projects prospective for tungsten, gold, lithium, copper and silver.
Prospective investors should take care to review the company’s continually developing portfolio carefully. In summary, POW interests include the following priority exploration and potential exploration project joint ventures.
It has a 30pc interest in a joint venture with UCAM to develop a set of uranium properties covering 914,714 km2 within and surrounding the prolific Athabasca Basin in Saskatchewan, Canada. Earlier this month an exploration update for the Drake Lake-Silas Uranium Project identified a coincident gravity low slightly offset from a magnetic high, interpreted as being related to a potential iron-oxide-copper-gold mineralised intrusive body.
POW has a 87.71pc stake in the Molopo Farms Complex Project in Botswana, prospective for nickel, copper and PGEs. Exploration programmes have demonstrated significant potential for a major nickel-platinum group element discovery or discoveries.
The company has full ownership of the Tati Project in Botswana, prospective for gold and nickel. Geochemical soil sampling assay results published this year confirmed the presence of three significant gold-in-soil geochemical anomalies of more than 500 ppb gold. Of the 446 samples collected, 29 samples returned assay results of 100 ppb gold or above.
POW also owns outright the North Wind Project in North America prospective for lithium. Several pegmatites have been identified, with five pegmatite samples collected: assay testing is ongoing with the results determining the next steps of the work programme.
Other investment holdings include an 83pc stake in Power Arabia, established to encompass all of POW’s activities across the Arabia Gulf, with several binding MoU’s for potential joint ventures in negotiation stages. POW is currently undergoing a pre-IPO financing round to fund activities in the region, with a view to a listing on the London capital markets in due course. A binding earn-in agreement has been signed with RIWAQ Al-Mawarid for Mining, a special purpose subsidiary of EV Metals Group, focused on the development of the Saudi supply chain for critical raw materials from the exploration, mining and processing of minerals and metals. Earlier this year non-binding Heads of Terms were signed with ASX listed Alara Resources Limited and Awtad Copper for POW to invest up to $740,000 to earn a 12.5pc stake in the Block 8 concession in Oman, prospective for copper and other metals including zinc, silver and gold. Field work is expected to commence imminently.
POW has a 26pc stake in First Class Metals (LON:FCM), focused on gold and base metals Ontario, and a 60pc holding in First Development Resources, focused on gold, copper, REE, uranium and lithium prospects in Western Australia. An exploration strategy is being developed to systematically test identified targets. Other interests include fully-owned ION Battery Resources Ltd, exploring for lithium and graphite in Canada, and a 20pc stake in New Horizon Metals Pty Ltd, exploring for copper, uranium and gold in Queensland and South Australia.
POW currently trades at 13.75p with a market cap of £15.68m.
