MineLife Resource Report

A couple of coverage junior gold plays with strong production ambitions that are benefitting from growing market interest as the A$ gold price continues its climb. Astral Resources (ASX: AAR) - up 92% since August - is pursuing commercialisation of its flagship Mandilla Gold Project just south of Kalgoorlie, which hosts a total Resource of 37Mt at 1.1g/t Au for 1.265M oz of gold. Following a recent $25M raising, AAR is well funded through to completion of both a Pre-Feasibility Study (PFS) and Definitive Feasibility Study (DFS) at Mandilla. Rox Resources Limited (ASX:RXL) - up 41% since August - is pursuing commercialisation of its flagship Youanmi gold project near Mt Magnet, with Pre-feasibility Study (PFS) results forecasting a low AISC of A$1,676/oz, which compares with a current spot price of A$4,097/oz. Youanmi is a relatively high-grade deposit, with a maiden Ore Reserve comprising 546koz at 4.4g/t Au. A Definitive Feasibility Study (DFS) is set for release in 2025. #gold #equities #ausbiz #resources #commodities #mining #exploration

An encouraging graphic from the perspective of the junior resource sector. The ASX Small Ordinaries Resources Index (AXSRD) has been proven to be extremely volatile this year, but has nevertheless recovered strongly since its low for the year reached in September. This in turn has almost completely reduced the performance disparity between it (blue line - up 11.83%) and the ASX All Ordinaries Index (red line - up 11.97%) over the year so far. Major positives that have helped the junior sector recently have been the first US interest rate cuts, implementation of some concrete China economic stimulus measures, accompanied by a simultaneous recovery in industrial commodity prices - particularly for iron ore, copper and crude oil. Even the bombed-out lithium space has seen a modest recovery in the light of Rio’s acquisition of industry heavyweight, Arcadium, which has focused investor attention on other candidates that could be on the radar. Meanwhile, investment metals - gold and silver - continue to hit fresh highs. #gold #silver #exploration #commodities #investment #ausbiz

Coverage stock Metro Mining Ltd (ASX:MMI) represents one of the few independent ASX bauxite plays available to investors. Significantly, the company is benefitting from a couple of really important catalysts, which are reflected in its sharemarket performance. Firstly, recent optimisation work at its Bauxite Hills Mine near Weipa in Queensland is delivering on the anticipated increased production capacity. A a new monthly shipment record of 780,000 Wet Metric Tonnes (WMT) was achieved during the month of September 2024 – which represents an increase of 8% on August 2024 and a 35% increase from September 2023. Also during the month of September, MMI achieved new daily mining record of 32,617 WMT, along with a new Ocean-Going Vessel (OGV) total loading time record, with a 200,000-tonne vessel completed in nine days. Overall production and shipment guidance for 2024 is set at 6.0 to 6.4 million wet metric tonnes, fully underpinned by firm off-take contracts. MMI is also benefitting from supply challenges in the bauxite market, out of China and Guinea in particular, which in turn has led to an escalation in both alumina and aluminium pricing. Operators of alumina refineries are sensibly looking for alternative sources of bauxite supply, which enhances MMI's market position. #equities #ausbiz #bauxite #alumina #aluminium #commodities #resources #mining #exploration

Coverage stock Auric Mining Limited (ASX:AWJ) is a junior gold explorer and producer that hosts a portfolio of projects within the Eastern Goldfields of Western Australia. What sets the company apart from its peers is its relatively low-risk incremental growth strategy, based upon self-sustaining and sequential development at each of its planned gold operations. Encouragingly, this strategy has begun to resonate with investors. A good example of this conservative approach can be seen at the company’s first mining development, its Jeffreys Find Gold Project, which hosts a Resource of 47,200 oz Au that has been mined since July 2023 in partnership with BML Ventures Pty Ltd (on a 50/50 profit-share basis). BML is a privately-owned company based in Kalgoorlie with a strong track record of funding, developing, and operating shallow open-pit gold mines. Under the agreement with BML, mining and toll milling costs are first be paid out of gold sales revenue from Jeffreys Find, with the remaining excess surplus cash then split 50/50 between AWJ and BML. With BML handling the mining operations, AWJ has been able to realise returns from Jeffreys Find far more rapidly than if it was operating the project on a stand-alone basis, in turn allowing it to take full advantage of record A$ gold prices, which is reflected in its strong share price performance over the past 12 months. #gold #equities #ausbiz #commodities #resources #mining #exploration

Coverage stock Melbana Energy Limited (ASX: MAY) is an upstream oil and gas exploration company with its project focus on Cuba. We introduced MAY to our coverage universe during September 2021, based on its maiden exploration drilling program that ultimately identified the Alameda oil discovery, located within the onshore Block 9 PSC. The block comprises a large onshore acreage (comprising 2.1% of Cuba's total area) situated on the north coast, 140km east of Havana. MAY was carried for 85% of the cost of the initial two-well drilling program, whilst retaining a 30% stake. MAY closed up 53% in Wednesday's trade following the release of its field development plans. The Alameda-1 well has significantly exceeded pre-drill expectations, and the Alameda discovery is now being subject a full field development program, maiden commercial oil production expected during Q1 2025. MAY's focus is on the development of new production wells within the shallower Unit 1B reservoir in order to increase the rate of production from the 46 million barrels of Contingent Resource (100% share, Best Estimate) as quickly as possible. To fund this work, MAY will utilise its existing cash reserves ($12.4M cash as at the end of the June Quarter), supplemented by revenue from oil sales. The plan is to truck the oil to oil storage tanks at the Matanzas Supertanker port. #oil #energy #commodities #resources #Cuba #equities

Coverage stock Rimfire Pacific Mining Limited (ASX: RIM) (initiated @ 2.3c in 2016) has provided an important update with respect to exploration activity at the Bald Hill Prospect, located within its Broken Hill Project in NSW. RIM is currently undertaking a 6-hole/1,000-metre diamond drill program at Bald Hill, designed to test the significance of a very strong magnetic anomaly, which is interpreted to be a potential extension to previously drilled high-grade cobalt (Co) and copper (Cu) mineralisation. The Bald Hill magnetic anomaly trends NNE, dips to the southeast, and has a near-surface extent of 450 x 400 metres, extending to a vertical depth of approximately 300 metres below surface. 3D modelling suggests that the anomaly plunges to the southeast, with RIM’s 2023 diamond holes just “clipping” the top of the anomaly. Encouragingly, the first two holes in the program have successfully intersected multiple broad zones (downhole widths) of sulphide mineralisation, 100 – 200m away from previous high-grade cobalt drill intercepts (assays awaited). The project’s cobalt and copper prospectivity are highlighted by the presence of Havilah Resources’ (ASX: HAV) Mutooroo Copper Cobalt Gold Deposit 35km to the southwest of Bald Hill and Cobalt Blue’s (ASX: COB) Broken Hill Cobalt Project 10km to the south. #copper #cobalt #commodities #resources #exploration #mining #ausbiz #equities #NSW David Hutton FAusIMM

Coverage stock West African Resources (ASX: WAF) (initiated @ 8c in 2015, now $1.415) has delivered another strong production and financial result for H1 2024 from its flagship Sanbrado gold mine in Burkina Faso, producing 107,644 ounces of gold at an ASIC (All-In-Sustaining-Cost) of US$1,223 per ounce. Gold sales during H1 2024 were fully unhedged and comprised 101,954 oz at an average price of US$2,199/oz. WAF’s investment case is centred around consistent ongoing production, together with its ability to successfully deliver its next major gold project, Kiaka, and return funds to shareholders when it reaches full commissioning from CY2026. Sanbrado has established WAF’s reputation as a company that can develop mines and become a reliable producer. Site construction activity at Kiaka is undergoing a major ramp up, with the project importantly fully funded to first production. WAF is on the path to becoming a +400,000 ounce gold producer from 2025 to 2032. #gold #equities #resources #mining #ausbiz #commodities #exploration

Interesting to see that New Zealand today has committed to passing laws by the end of this year that will reverse the current ban on offshore oil and gas exploration, and will also take urgent steps to remove regulatory hurdles to import liquefied natural gas (LNG) amid energy shortages. The current exploration ban has been in place since 2018 on activity outside of the onshore Taranaki Basin. #exploration #commodities #resources #oil #gas

As we've previously highlighted, one of the most important factors driving gold's ascent to record levels has been the corresponding growth in global debt. And this is not an overnight phenomenon, in fact over the past quarter of a century (1999 - 2024) gold has risen at an average of 8% annually. Debt meanwhile has grown exponentially, particularly during the post-GFC and post-covid periods. Global debt hit a new record during Q1 2024, increasing by $1.3 trillion in just three months to $315.1 trillion. Since the onset of the covid pandemic, global debt has surged by 21%, adding $54.1 trillion to the global total. In the USA, debt servicing costs are now more than defence spending, and the interest bill is set to rise further. Consequently, the government may need to raise taxes or cut spending in order to tackle its debt. Even more concerningly, about a third of emerging markets have not recovered from the pandemic, with per capita income standing beneath levels seen in 2019. Yet emerging market debt levels are also at a record of $105 trillion, climbing by $55 trillion over the last 10 years. #gold #debt #economy #resources #commodities #investment

Some interesting conclusions from independent US energy research consultancy, Thunder Said Energy. Based on their calculations, their estimate of the total cost of ownership for electric vehicles (EVs) remains 40% higher than for Internal Combustion Engine (ICE) vehicles, at US$7k/year versus US$5k/year, based on a data-file that aggregates key pricing and performance metrics for 50 vehicles. The key reasons are: +55% higher vehicle purchase costs, 25% shorter lives, and 30% higher insurance costs, offset by -60% lower fuel/charging costs. For comparison, Thunder Said estimates that EVs are now cost competitive per unit of horsepower (bottom right chart), but remain 2.5x more expensive per km of range (bottom left) and 40% more costly per cubic metre of passenger volume (top right). #electricvehicles #EVs #commodities #resources