Today’s Market View – Metal Tiger, Horizonte Minerals, Bushveld Minerals and more…

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SP Angel . Morning View . Friday 04 12 20

Risk sentiment strengthens ahead of US jobs data 

 

BlueRock Diamonds (LON:BRD) – BlueRock recovers 12.6ct diamond from its Kareevlei Diamond mine

Bushveld Minerals* (LON:BMN) – Invinity Energy Systems placing raises £2.05m for new Vanadium Redox Flow Battery development

Horizonte Minerals (LON:HZM) – Progress report on Araguaia nickel project

Metal Tiger (LON:MTR) – £257,000 investment in Marimaca Copper

Power Metal Resources* (LON:POW) – Field exploration commenced on the Kalahari Copper Belt

Kavango Resources (LON:KAV)

Tertiary Minerals* (LON:TYM) – Kaaresselkä drilling report extends mineralisation at depth and laterally

 

US dollar – selling continues as US 10-year treasury yields rise

The inevitable inauguration of Joe Biden combined with positive vaccine news is allowing funds to take on more risk (risk on) and take advantage of bargain valuations around the world.

The US and UK are racing to rollout vaccination programs as nations look to repair the economic catastrophe of the COVID-crisis

Chinese growth continues to highlight the disparity between itself and the West as most other nations struggle to contain their economic devastation

China is now being blamed for covering up the true mortality rate in Wuhan in the early stages of the crisis according to whistle-blowers leading Western leaders to underestimate the need for more extreme preparation.  We now also understand Wuhan was also in the grip of a Flu epidemic in January / February.

·       The US Federal Reserve has indicated official rates will remain at 0% out to 2024 with the 2% inflation target now seen as an average rather than a red line. Predictions for the average level of inflation over five years jumped to 2.25%

·       Inflation: We see China’s new demand for consumer goods a potentially inflationary as the West will now need to compete with Chinese consumers for goods.

Container shipping is booming again with two of the busiest ports in the US setting new records for inbound container traffic in recent months. We suspect this is largely driven by the rise in stay-at-home internet shopping.

Gold and other metals are likely to continue to gain as funds flow out of the US and the dollar falls

Equities continue benefit from ongoing bond sales as investors hunt for yield and for recovering stocks in service sectors.

Rio Tinto, BHP and Anglo American are making new highs on the back of strong iron ore, copper and other metals prices. Glencore is catching up fast.

Expect the miners to be major beneficiaries of stimulus programs and new Chinese consumer demand as metals prices continue to strengthen.

 

China continues to push consumer subsidies into the regions as part of its Dual-Circulation / Local stimulus drive

The strategy is driving growth in domestic appliances, air-conditioners, cars and consumer goods,

Strong demand for consumer goods with a high level copper content such as air-conditioners, cars, fridges etc is driving consumption of copper and aluminium

Copper is now looking at a probable 50,000t deficit for the year according to Antaike vs a 700,000t surplus forecast in October.

We reckon the deficit will widen in 2021 beyond expectations as once the Chinese get a taste for personal consumption we suspect the Chinese people won’t give up easily on their new found freedom to buy what they want, when they want it.

China has huge pent-up demand for consumer goods and relative austerity by many may now give way to splurge of consumer activity encouraged by government policies.

Once the consumer genie is out of the bottle the CPC might find it very hard to get the stopper back in till their credit cards are maxed out and the loan sharks move in.

Passenger car sales rose 5% in November to around 62k vehicles (PCA)

Property sales rose 20% yoy in China in November to Rmb1.3tn matching that seen in October. This in itself will help drive consumer demand as families move into new apartments.   

Sales of land in rose >20% yoy to Rmb 3.7tn YoY for the top 50 Chinese cities with another round of land sales in and around the major cities expected this month.

 

Iron ore trades at 7-year high of US$137/t after Vale production downgrade to 300mt and lower 2021 estimates

Iron ore futures hit record highs on insatiable Chinese demand

Prices continued to surge this week, with futures in both Singapore and Dalian hitting their highest ever as Chinese demand continues to strengthen.

Despite Chinese demand remaining resilient, Australian weekly exports have slowed, while Vale trimmed its production guidance for this year and took a conservative approach for its 2021 estimate.

Meanwhile, Chinese port inventories have continued to decline, falling 1.6mt to 124.5mt this week, according to Mysteel Global.

Futures in Singapore climbed as much as 6.3% to $141/t, while the contract in Dalian rose 3.7% to close at the highest since trading started on the exchange in 2013 (Bloomberg).

China can not afford to cut iron ore imports from Australia with so much uncertainty from Vale in Brazil

 

LG Chem battery recalls extend to residential energy storage

LG Chem has recalled RESU 10H battery products due to fire safety concerns. 5 separate incidents in the US have reported thermal events causing limited property damage.

The recall affects battery systems containing cells produced from 2017-2018 and will affect 5% of Sunrun’s BrightBox battery installations.

The Resu 10H packs have 10KWh Li-ion cells. LG Chem Li-ion batteries have been the cause of recalls across EV and utility storage segments.

GM recalled 69,000 vehicles following fires in Chevy Bolt vehicles equipped with LG Chem LI-ion batteries.

Hyundai have also recalled 77,000 KONA EVs equipped with LG Chem cells.

 

IGTV:   Copper price rise: https://youtu.be/mdPXTup15VY

VOX – 25/11/20: https://www.voxmarkets.co.uk/media/5fc0b908bc74c922485f4fb0/?context=/listings/LON/EEE/multimedia/

US Election, China growth policies Solgold*, Mkango*, Rainbow Rare Earths*: https://youtu.be/YKk5-kVpVGE

EV revolution, gold and other ideas (Interactive Investor): https://www.youtube.com/watch?v=ja0IdjszfCc

Metals Markets: Are they totally dependent on stimulus? (IG TV): https://youtu.be/TOiSwRpgfKM

*SP Angel act as nomad or broker or nomad and broker to companies mentioned in the above videos.

 

Dow Jones Industrials +0.29% at 29,970

Nikkei 225 -0.22% at 26,751

HK Hang Seng +0.40% at 26,836

Shanghai Composite +0.07% at 3,445

 

Economics

 US – Senate majority leader Mitch McConnell said that compromise deal was “in reach” on a bipartisan relief package.

The news follows previous announcements by Democratic leaders who agreed to reduce their package targets and support the latest proposal.

NFPs are out later today with estimates for the economy to have added 475k jobs in November (v 638k in October) and unemployment rate pulling back only slightly to 6.8% (v 6.9% in October).

Labour force participation rate that affects the unemployment rate is expected to remain unchanged at 61.7%.

The data that is likely to miss the latest surge in new infections that see new restrictions put in place with December numbers to look significantly worse, Bloomberg reports.

Joe Biden is expected to ask Americans to mask for 100 days in an effort to reduce the spread of the virus.

“I’m going to issue a standing order that in federal buildings you have to be masked… transportation, interstate asportation, you must be masked, airplanes and busses, et cetera,” he said.

The proposal comes on the back of rising cases with the US reporting a record 200,000 new infections yesterday and hospitalisations are at their highest.

 

Pfizer cut its vaccine production target in half to 50m for this year due to supply chain for the raw materials’ challenges.

“Scale-up of the raw material supply chain took longer than expected,” the Company said.

Additionally, Pfizer cited later-than-expected results from the Company’s clinical tiral.

50m vaccines, assuming a two doses regimen, covers 25m people.

 

Germany – Factory orders regained its pandemic related losses and posted a 0.8% growth over February levels in October as a rebound in the manufacturing sector continued despite the second wave of infections.

Orders were up 2.9%mom helped by the nation’s carmaking industry.

Supply chains appear to be relatively unscathed while a recovery in international trade also helped the momentum, FT reports.

 

France – 1m people are expected to be vaccinated in January, predominantly those that in old people’s houses, with a further 14m to be treated in February and the rest of the population in the spring.

 

South Korea – 600 new coronavirus cases were reported on Friday, the highest in nearly nine months.

A surge in new cases lead to concerns that further restrictions may be necessary to slowdown the spread of infections.

The capital city area is currently under level 2 social distancing rules out of five-tier scheme.

“If we enter into level 3 of social distancing, all economic activities will effectively grind to a halt,” acting Seoul mayor said.

 

Brazil – Q3 GDP came in below estimates with the economy outlook remaining challenging as the virus again on the rise and the government is playing down further prospects of emergency aid.

President Bolsonaro signalled his cabinet plans to stop monthly subsidies to informal workers amid concerns about increasing debt.

Bloomberg estimates the economy to drop 4.8% this year, less than its other regional peers like Argentina, Chile, Mexico and Colombia, before recovering 3.5% in 2021.

GDP (%qoq): 7.7 v -9.6 in Q2 and 8.7 est.

GDP (%yoy): -3.9 v -10.9 in Q2 and -3.5 est.

 

Turkey – The government is opting for a Chinese vaccine ordering as many as 50m doses from Sinovac Biotech.

The Turkish government is expected to start certification work after the Chinese company releases results from its phase-three study in about 10 days, according to Health Minister.

“Inactivated vaccines” including one offered by Sinovac are more trustworthy because they implement more established technologies compared to the alternatives such as mRNA vaccines that yielded good results in the short term, but longer term risks remain unknown, the Minister said.

 

Greece – The government will keep lockdown measures in place for an extra week to December 14 following a slower than predicted drop in COVID-19 cases.

This is the second extension that were initially expected to end on November 30.

 

UK car sales fall 27.4% YoY in November

Sales amounted to 114,000 cars last month, as ‘click and collect’ delivery methods were used amid England’s second lockdown.

 

Currencies

US$1.2157/eur vs 1.2123/eur yesterday.  Yen 103.93/$ vs 104.32/$.  SAr 15.182/$ vs 15.319/$.  $1.346/gbp vs $1.340/gbp.  0.743/aud vs 0.743/aud.  CNY 6.529/$ vs 6.558/$.

 

Commodity News

Precious metals:         

Gold US$1,842/oz vs US$1,841/oz yesterday – Gold set for first weekly gain in four on weak US dollar

Gold prices stayed firm on Friday as the US dollar continued to wane, sliding -0.16% against the €, and on track for its worst week since early November.

The dollar index has fallen -1.32% so far this week, making gold cheaper for holders of other currencies.

US stimulus talks progressed yesterday, as a $908bn coronavirus aid plan gained momentum in the US Congress as conservative lawmakers expressed their support.

Vast amounts of stimulus have supported gold prices throughout the pandemic, as investors view bullion as a hedge against inflation.

Gold prices have risen ~3% this week, while silver prices have risen over 6% to $24.20/oz over the same period.

Gold ETFs 106.9moz vs US$107.1moz yesterday

Platinum US$1,049/oz vs US$1,028/oz yesterday

Palladium US$2,333/oz vs US$2,418/oz yesterday

Silver US$24.21/oz vs US$24.13/oz yesterday

           

Base metals:  

Copper US$ 7,755/t vs US$7,675/t yesterday –

Copper spot TC/RC touched a five year low of US$48.7/t in China as smelters compete for copper concentrates

Aluminium US$ 2,042/t vs US$2,036/t yesterday

Nickel US$ 16,085/t vs US$15,990/t yesterday

Zinc US$ 2,772/t vs US$2,760/t yesterday

Lead US$ 2,047/t vs US$2,047/t yesterday

Tin US$ 18,890/t vs US$18,765/t yesterday

           

Energy:           

Oil US$49.7/bbl vs US$48.4/bbl yesterday

Oil prices strengthened as OPEC+ agreed to ease oil output cuts by 500,000 barrels in January

This is seen as a compromise with OPEC+ expected to continue with current cuts of 7.7m bpd until March but there were some dissenting voices within the Group including the UAE suggesting they could not continue much longer at current levels.

The 7.2m bpd production cut installs confidence in the market that OPEC will exit their production cuts in a coordinated way which is positive for prices in 2021 according to Goldman Sachs. Monthly meetings are expected to be held to discuss the next steps.

Brent Crude was up 2.1% to $49.75/barrel and WTI rose 1.8% to $46.48/barrel.

The futures curves is signalling tighter supply and a brighter outlook. February Brent Crude futures rose 92c to $49.63/barrel.

A Reuters poll of 40 economists/analysts forecast Brent average prices of US$49.35/bbl next year as participants suggest prices will struggle to maintain upward movement next year as winter lockdowns endure and impact the demand outlook

Positive news out of the US as momentum gains behind a $908bn coronavirus aid plan.  President Biden has shown his support for the plan and Democrats seem to be prepared to make some concessions about the scope of the plan.

The deal includes a $300 of weekly federal unemployment payments and a pay check protection program for small businesses.  

US Crude inventories fell 679,000 barrels last week according to the EIA, US production rose 100,000 barrels, the highest level since May according to the same report.

 

Natural Gas US$2.484/mmbtu vs US$2.709/mmbtu yesterday

EIA data showed natural gas inventories down 1Bcf for the week ending Nov 27. Expectations had been for a 13Bcf decline for the week.

Inventory is now at 3.939Tcf, +343Bcf compared to the same time last year and +290Bcf above the 5yr average.

January futures fell -9.8% to $2.507 per million British thermal units.

US natural gas consumption is expected to decline as expected this year according to the EIA

The weather is expected to be warmer than normal throughout most of the US for the next two weeks according to NOAA

Uranium US$29.50/lb vs US$29.55/lb yesterday

 

Bulk:   

Iron ore 62% Fe spot (cfr Tianjin) US$132.5/t vs US$131.2/t

Chinese steel rebar 25mm US$611.9/t vs US$613.1/t

Thermal coal (1st year forward cif ARA) US$61.0/t vs US$61.7/t

Coking coal swap Australia FOB US$135.0/t vs US$136.0/t

           

Other: 

Cobalt LME 3m US$32,390/t vs US$32,390/t

NdPr Rare Earth Oxide (China) US$67,006/t vs US$65,566/t

Lithium carbonate 99% (China) US$6,279/t vs US$6,252/t

Ferro Vanadium 80% FOB (China) US$27.0/kg vs US$27.0/kg

Ferro-Manganese high carbon 78% Mn US$1,320/t vs US$1,265/t

Tungsten APT European US$220-225/mtu vs US$220-225/mtu

Graphite flake 94% C, -100 mesh, fob China US$510/t vs US$480/t                

Graphite spherical 99.95% C, 15 microns, fob China US$2,475/t vs US$2,475/t

Spodumene 6% Li2O min, cif (China) US$380/t vs US$375/t

 

Battery News

Indian EV take up showing positive signs

The Tata Nexon EV has sold 2200 units in just 10 months to November, 1000 units sold since August. Tata Motors has a 74% share of the Indian EV market.

The Indian government has set a deadline of 2030 for a halt to the sales of new ICE vehicles but this is only a government target not part of legislation.

The Indian Government has announced plans to install 69,000 e-charging kiosks at petrol pumps nationwide.

India plans to retain its import tax rate of 5% for certain types of batteries including EVs until 2022, but will then increase it to 15% to support local manufacturing.

The government has been reviewing Federal think tank proposals that $4.6bn of incentive should be offered to companies manufacturing advanced batteries by 2030.

 

Welsh government invest £30m into EV charging

The Welsh government is has announced a proposal to invest £30m over 5yrs into EV charging infrastructure.

The government aims to provide all electric car and vans users with good access to EV charging by 2025.

Today only 0.17% of vehicles on Welsh roads are electric.  

The strategy suggest the needs for 30-50,000 fast chargers and 3,500 rapid or ultra-chargers need to be installed.

In the 2020/21 budget the government included £29m to transition to low emissions vehicles. The government has also committed to a zero emissions bus and private hire taxi fleet by 2028.  

 

Company News

BlueRock Diamonds (LON:BRD) 46.75p, Mkt cap £4.25p – BlueRock recovers 12.6ct diamond from its Kareevlei Diamond mine

BlueRock Diamonds reports the recovery of a 12.6ct diamond from its Kareevlei Diamond Mine in the Kimberley region of South Africa.

The stone should sell for >$50,000 and is evidence of the continuing potential for the recovery of large diamonds from the Kareevlei

Conclusion: The recovery of the stone should hopefully mark the move into kimberlite containing better quality diamonds with the mine having worked through a difficult area in recent months.

*SP Angel act as nomad and broker to BlueRock Diamonds

 

Bushveld Minerals* (LON:BMN) 13.02p, Mkt cap £150m – Invinity Energy Systems placing raises £2.05m for new Vanadium Redox Flow Battery development

(Bushveld Energy holds 50% Enerox Holdings Limited (50% other investor) which holds 90% of Enerox GmbH along with 8.71% in Invinity, pre the Invinity Energy Systems placing).

Invinity Energy Systems report placing of £20.5m of shares at 50p/s.

Bushveld Minerals holds a significant stake in Invinity and has a first right of refusal over the supply of vanadium electrolyte to Invinity VRFB batteries.

Conclusion: The strength of the placing highlights raised interest in Grid scale battery storage and the application of VRFB batteries in this area.

*SP Angel acts as Nomad and broker to broker to Bushveld Minerals

 

Horizonte Minerals (LON:HZM) 6.55p, Mkt Cap £100.7m – Progress report on Araguaia nickel project

Horizonte Minerals has provided a progress report on its Araguaia ferro-nickel project in Brazil confirming that capital and operating costs remain in line with those forecast in the feasibility study and that value engineering work, including improvements to the plant design and flowsheet, are now complete.

The company has previously disclosed expected capital investment of US$443m for the initial phase of the project producing approximately 14,500tpa of nickel contained in 52,000tpa of ferronickel with cash costs equivalent to US$3.08/lb of contained nickel

A subsequent, second phase of the project includes the flexibility to double production to 29,000tpa of contained nickel by the addition of a second rotary kiln electric furnace in the third year of the project

The company also confirms that environmental and social programmes are already underway “in preparation for … [the] …construction phase” and that is continuing to make progress towards securing project finance.

As well as the previously announced US$325m senior project finance facility, which is moving towards “credit approvals and execution of definitive facility documentation in 2021”, Horizonte Minerals is “in advanced negotiations to secure long-term offtake agreements for the Project and continues to engage with a number of prospective investors”.

“The Company has also negotiated a non-binding, conditional term sheet with one major cornerstone equity investor, subject to amongst other things, completion of the full financing package”.

Horizonte Minerals explains that “Due to the impact of ongoing Covid-19 related lockdowns on financial markets, the Company now anticipates completing the full project financing package in H1 2021, with construction commencing shortly thereafter” although the company cautions that its’ timetable is conditional upon any further disruption caused by the Covid19 pandemic.

As it moves towards the completion of finance and commencement of construction, Horizonte Minerals “has undertaken a comprehensive recruitment programme in both London and Brazil. The corporate team has expanded to provide additional support in the areas of finance, communications and investor relations, and key hires in the Araguaia owner’s team have been made. The owner’s team now includes leading ferro-nickel, construction and operational technical management in Brazil”.

Commenting on the technical, human resources and financing progress, CEO, Jeremy Martin, explained that they had “further de-risked the Project and give us clear visibility on how we will deliver a successful, tier-one nickel project”.

Conclusion: Progress with engineering optimisation, project finance and staffing move the Araguaia project further towards the commencement of construction after the financing is secured which is expected to take place during H1 2021.

 

Metal Tiger (LON:MTR) 26.5p, Mkt Cap £40.2m – £257,000 investment in Marimaca Copper

Metal Tiger reports that it has invested C$447,161(approximately £257,000) in Canadian-listed Marimaca Copper which is progressing the Marimaca Copper project in Chile. The Metal Tiger investment forms part of a C$29m fundraising currently underway to help develop the Chilean deposit.

Acccording to Marimaca’s May 2020 presentation, the Marimaca deposit currently has a measured and indicated oxide copper resource of 70mt at an average grade of 0.52% with a potentially low waste:ore ratio of 1.1:1.

The oxide resource is understood to be underlain by primary sulphide mineralisation.

Marimaca recently completed a preliminary economic assessment of the project based on open-pit mining and SX/EW recovery of copper cathode which showed  “a US$640 million post-tax NPV8 (real) assuming a US$3.45/lb flat long-term copper price, with a post-tax IRR of 38.0%”.

Recent approval for the construction of up to 365 drill-pads positions Marimaca “to drill first targets in early Q1 2021”.

 

Power Metal Resources* (LON:POW) 2.15p, Mkt cap £20m – Field exploration commenced on the Kalahari Copper Belt

Kavango Resources (LON:KAV) 2.85p, Mkt cap £5.5m

Power Metal has commenced exploration fieldwork on the South Ghanzi Project, on the Kalahari Copper Belt (KCB) in northwest Botswana. The two prospecting licenses at South Ghanzi are held in a 50% owned strategic joint venture with Kavango Resources, as announced September 2020.

The JV’s highly prospective South Ghanzi licences are strategically placed in the centre of the KCB, a strata-bound copper-silver trend extending over 1,000km along the northern boundary of the Kalahari carton in Botswana and Namibia. The JV’s highly prospective South Ghanzi licences are strategically placed in the centre of this trend and in close proiximity to other exploration targets and resource projects.

Field based exploration activities targeting the discovery of sedimentary copper deposits have recently commenced under the operational management of Kavango, with both soil sampling and ground magnetic geophysics surveys which seek to delineate regional targets for future AEM surveying.

335 soil samples have been taken across six lines, totalling 33.5km.The samples were sieved to 50 microns and are now being analysed using a portable XRF Analyser. Selected samples will then be sent to a laboratory for further testing.

Ground magnetic surveys were also conducted over 68.8km, with the survey covering a number of sub-outcropping redox boundaries- typically associated with copper mineralisation. Line spacing was set at 200m, with 10m-station spacing. The survey data is now being processed and plotted.

Results from the laboratory testing of the soil samples and the reprocessing of the ground magnetic data are expected later this month.

The JV expects to conduct AEM surveys over prospective sections of the South Ghanzi project in the New Year, and will work towards test drilling of shallow targets once a 3 dimensional exploration model has been developed following the completion of the aforementioned exploration activities.

In recent years, the KCB has attracted substantial exploration interest, including Cupric Canyon Capital’s Zone 5 deposit, which hosts a Total Mineral Resource of 91.7mt @ 2.1% Cu & 14g/t of silver. In July, Cupric raised US$650m  for the construction of the Khoemacau Starter Project with previously announced plans to begin mining Zone 5 in mid-2021.

Michael Foster, CEO of Kavango Resources, commented: The region has become one of the world’s foremost frontiers for copper exploration, hosting a number of world-class discoveries. We are targeting similar geological formations that have been shown to host economic deposits elsewhere on the KCB.

Paul Johnson CEO of Power Metal Resources has previous experience exploring in the area, commenting: Personally, I am delighted to return to the Kalahari Copper Belt and follow a similar pathway with this programme to that leading to the discovery of the T3 copper deposit in 2016 whilst I served as CEO of Metal Tiger PLC, a joint venture partner in that discovery.”

Conclusion: Power Metal and Kavango have taken further steps to progress exploration on the KCB, an area which is proven to hold world-class copper-silver deposits. Copper prices are currently sitting at a 7-year high, and we expect prices to remain elevated in 2021 and potentially beyond given the need for new copper discoveries. We look forward to lab results of the soil samples and reprocessing of the ground magnetic data, expected later this month.

*SP Angel act as Nomad and broker for Power Metal Resources

 

Tertiary Minerals* (LON:TYM) – 0.26p, Mkt cap £2.1m –Kaaresselkä drilling report extends mineralisation at depth and laterally

Yesterday, Tertiary Minerals drew attention to the announcement by Canadian-listed Aurion Resources of assay results from its recently completed 12 holes (2,401.3m) drilling programme at Kaaresselkä in Finland where Tertiary Minerals retains royalty interests, including a US$1/oz pre-production royalty on inferred resources identified on the property, US$2/oz on indicated resources and US$3/oz on measured resources as well as a 2% NSR on any future production

The drilling tested potential strike and depth extensions to mineralised zone in four target areas, Vanha, Lampi South, Lampi North and Tienvarsi.

The company’s announcement highlights results from holes KS20001 and KS20002 both of which were drilled on the Vanha target where historic drilling showed shallow intercepts of gold mineralisation within 50m of surface at grades of 4.88g/t gold over a width of 2m; 1.2g/t over 1m; and 1.21g/t over 4m.

Hole KS20001 intersected 1.52g/t gold over a width of 2.85m from a depth of 306.5m as well as a shallower intersection of 1.71g/t gold over 1.15m from a depth of 296.4m and “several intervals with elevated (>0.1 g/t) gold values”.

The company says that hole indicated that the mineralised zone is sub vertical and continues “to at least 230 m vertical depth … [and that the] … drill hole also intersected previously unknown parallel zones of alteration and deformation that returned 0.93 g/t Au and 1.08% Cu over 0.65 m from 40.70 m down hole and 0.26 g/t Au and 1.20 % Cu over 3.10 m from 85.85 m down hole”.

Hole KS20002 was located approximately 60m west of KS20001 and also “targeted the depth extension of gold mineralized zones identified in historic exploration. The drill hole intersected 1.85 g/t Au over 5.50 m from 199.00 m down hole including 8.91 g/t Au over 0.95 m from 199.00 m down hole”.

A third hole at Vanha, KS20003, located 300m east of KS20001 “returned an intercept of 1.27 g/t Au over 4.00 m within a wider zone of strongly deformed and altered mafic volcanic rocks and graphitic schists … [and Tertiary Minerals says that] … The three drill holes extended the gold mineralized zones to 200 m depth and 600 m strike length along the east-west trending structural corridor coinciding with the Sirkka Shear Zone. The mineralization at Vanha is open to depth and towards east”.

The remaining holes at Lampi South, Lampi North and Tienvarsi “tested several gold indications in the western part of the Kaaresselkä prospect area. Several drill holes intersected zones of altered and deformed mafic volcanic and sedimentary rock units with varying levels of gold ranging from nil to ~3 g/t Au over narrow widths” however it appears that for the present the most encouraging area for exploration is at Vanha.

*SP Angel act as Nomad and Broker to Tertiary Minerals

 

Analysts

John Meyer – [email protected] – 0203 470 0490

Simon Beardsmore – [email protected] – 0203 470 0484

Sergey Raevskiy –[email protected] – 0203 470 0474

Joe Rowbottom – [email protected] – 0203 470 0486

 

Sales

Richard Parlons –[email protected] – 0203 470 0472

Abigail Wayne – [email protected] – 0203 470 0534

Rob Rees – [email protected] – 0203 470 0535

Grant Barker – [email protected] – 0203 470 0471

 

 

SP Angel                                                            

Prince Frederick House

35-39 Maddox Street London

W1S 2PP

 

*SP Angel are the No1 integrated nomad and broker by number of mining brokerage clients on AIM according to the AIM Advisers Ranking Guide (joint brokerships excluded)

+SP Angel employees may have previously held, or currently hold, shares in the companies mentioned in this note.

 

 

Sources of commodity prices

Gold, Platinum, Palladium, Silver

BGNL (Bloomberg Generic Composite rate, London)

Gold ETFs, Steel

Bloomberg

Copper, Aluminium, Nickel, Zinc, Lead, Tin, Cobalt

LME

Oil Brent

ICE

Natural Gas, Uranium, Iron Ore

NYMEX

Thermal Coal

Bloomberg OTC Composite

Coking Coal

SSY

RRE

Steelhome

Lithium Carbonate, Ferro Vanadium, Antimony

Asian Metal

Tungsten

Metal Bulletin

 

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