Coffee with Samso Episode 173 is all about Boron as Tin-Boron Rich Zones are identified at Mount Lindsay.
The recent release by Venture Minerals Limited (ASX:VMS) is adding more confidence to the Mount Lindsay project. Knowing that more tin could be realised via the association of Boron now makes Mount Lindsay a solid project.
Who is Venture Minerals Limited (ASX: VMS)?
In my very first Coffee with Samso with Andrew Radonjic, way back in October 2020, I had coined the company a Targeted Diversified Mineral Explorer. The basis of that title was because they have very promising targets. I know many people will say that is a long bow to draw but from an exploration point of view, I stand firm on my observation.
Chapters:
00:00 Start
00:20 Introduction
01:20 About Venture Minerals and Boron
04:14 Tin-rich borates in Mount Lindsay
12:02 Any potential metallurgical issues?
14:57 How much can be recovered from the cassiterite?
19:56 Uses of boron
23:18 Market shifts?
28:57 News flow
30:22 Why VMS?
31:56 Conclusion
Market Status
Currently, like many of the market participants, the share price has taken a battering. The journey has been one where at its peak of about AUD$0.16 in mid 2021, is now pretty much at its low (see Figure 1). The share price has moved since the latest release which appears to be giving the market some joy.
Figure 1: The share price chart for Venture Minerals Limited (ASX: VMS) over the last 3 years. (Source: Commsec)
What I feel is that the market is generally not a direct reflection on the perceived valuation of the company. In the exploration sector, this is more relevant as the potentials are never calculatable.
The current market capitalisation is around AUD33M. Some pundits may say that this is high for an explorer, but one have to understand that Venture has a iron ore resource that is at mining stage and a Tin an Tungsten resource that is at Feasibility Study stage.
Why does Samso like Venture Minerals Limited, in particular, the Mount Lindsay Mineral Province?
There are many companies that are currently in the market, but not all of them is reflecting my enthusiasm. As I have said many times, as an exploration geologist, I am always looking at the potential and with over 30 years of geology experience, working and learning about the industry, I have seen and heard many stories.
Over the years, I have learnt to identify projects that could have the best possible potential to bear fruits. What I see in Venture are projects that have those potentials. Look at the Thor project. I like the concept and the potential from the first Coffee with Samso. The latest on Thor project is that the Joint Venture partner has now targeted two new priority targets.
The Mount Lindsay project is one that needs no introduction. Venture is currently working on a Feasibility study for Mount Lindsay. This will take time and as they develop new concepts. What is being showcased is the potential endowment of the Province. When you look at the latest summarised geological plan (Figure 2), you will see why I call this the Mount Lindsay Mineral Province.
Figure 2: Mount Lindsay Project: Geology Map showing High Grade Tin-Tungsten Targets and Tin-Boron Skarns
For those readers that are not well versed with geology, what I want to represent with Figure 2 is that the area/province that I am referring to is well mineralised. There is a suite of metals that are being found. For this to happen, you need a mineral system that is sufficiently powerful and endowed to be present.
In my time showcasing Venture Minerals, I dont think that has been a focus for the company. I will not be surprised when that is a topic of conversation.
The Boron Story - Samso is Excited.
The Boron story is going to be a big asset for Venture. For those that are new to the Boron game, you will quickly find that Venture is in the big leagues. Granted that there is still a lot of questions, - is there an economic volume, is there an economic recoverable process...etc.
For Samso, the input credit and the potential ability to recover more tin in the process is the game changer. When you look at the major mining projects, it is very often the input credits of other products in the mine that makes the profitability of the mine. If you look at Olympic Dam, by far the biggest single mine in the world, it is the myriad of other metals that have extended the life of the mine.
Samso's Conclusion
Venture Minerals have been through a wild ride over the two years. There is no denying that there are shareholders who are disappointed with the journey lately but there are also shareholders that have bought at the lows and exited with a handsome loot.
The introduction of the Boron story is exciting. This could be the game changer for Venture. This will create a new dimension for the company as when you look at the market for Boron, it will be an eye opener. If the oncoming data about what Venture have in terms of the Boron is positive, we will be in for another ride.
Whichever shareholder you are, there is also some realities that make VMS a well balanced investment. When you look at the portfolio of projects, they are placed in every stage of the exploration game. You have early stage greenfield exploration such as Kulin and Golden Grove North. Thor which is in a joint venture with Chalice Mining is being explored but is free carried as Chalice is earning into the project.
Mt Lindsay and the Riley iron ore project is the next step up. Mount Lindsay has greenfield to "development". Riley is at mining stage. Riley is waiting for the right market timing and can be turned on when the time arrives.
So my thoughts on a company like this is, "its hedged at all ends". There are not too many companies in the sector with this kind of portfolio. I have spoken to many and I will be surprised that there is more than a handful with the well spread of projects like Venture Minerals.
When you have been in the sector for a long time, you appreciate these kind of odds. For this reason, I think that at market cap of 40M, Venture is definitely worth doing some lengthy research.
Andrew Radonjic has been in this game for a long time and when you look at the price chart in Figure 1, the risk of investing in the company is not ambiguous. One may say you can go to the casino and have the same odds, but as all investors in this sector, we beg to differ. Research and understanding your risk management is the key.
Understand the geology, understand the upside and downside and understand your own risk capability. For these reasons, I strongly recommend reaching out to Andrew and getting him to give you the low down on the company.
PODCAST
About Andrew Radonjic
Qualifications: BAppSc (Mining Geology), MSc (Mineral Economics), MAusIMM
Mr. Radonjic is a geologist and mineral economist with over 35 years of experience in mining and exploration, with an initial focus on gold and nickel in the Eastern Goldfields of Western Australia. Andrew has fulfilled a variety of senior roles which gave rise to three gold discoveries, totalling in excess of 3 million ounces in resources and resulting in 1.5 million ounces being produced. Since 2006 Andrew has been an executive director with Venture Minerals, which he co-led during the discovery of the Mount Lindsay Tin-Tungsten deposit in North-West Tasmania. He is also a founding co-director of Blackstone Minerals and the non-executive Chairman of Codrus Minerals.
About Venture Minerals Limited
Venture Minerals Ltd (ASX: VMS) has refocused its approach to developing the Mount Lindsay Tin-Tungsten Project in northwest Tasmania, already one of the world's largest undeveloped Tin-Tungsten deposits. With the recognition of Tin as a fundamental metal to the battery revolution and Tungsten being a critical mineral, Venture has commenced an Underground Feasibility Study on Mount Lindsay that will leverage off the previously completed open-pit feasibility work. At the neighbouring Riley Iron Ore Mine, the mine is prepared for a quick restart should the market conditions become favourable. In Western Australia, Chalice Mining (ASX: CHN) recently committed to the second stage of the JV which requires a further $2.5 million of expenditure over the next two years to earn a further 19% interest (for a total of 70%) in Venture’s South West Project. At the Company’s Golden Grove North Project, downhole EM has delineated a large conductor under High Grade Zinc-Copper-Gold drill intersections within the 5km long Volcanogenic Massive Sulfide Target Zone, along strike to the world class Golden Grove Zinc-Copper-Gold Mine. Venture has a significant Nickel-Copper-PGE landholding at Kulin with two highly prospective 20-kilometre long Ni-Cu-PGE targets within the Kulin Project.
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Disclaimer
The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer.
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