Coffee with Samso Episode 163 is all about Rare Earths.
Venture Minerals Limited (ASX:VMS) has just made several announcements on the discoveries of Rare Earths on their Golden Grove North and Mount Lindsay project.
The mass discoveries of REE recently is testament to the fact that Rare Earths are not very Rare. Most retail investors are not too concerned about the facts and the viability of REE projects as they jostle for trading opportunities. Many of these investors are only interested in the strategy of "selling dreams".
One cannot begrudge this trading strategy. Trading to sell dreams has made a lot of investors' money. I don't work well with that system. I always end up with the short straw. I take my advice from a friend and mentor Geoffrey Donohue who taught me not to flow with the sentiment of the market but DYOR. Like all the great investors that we hear about, they are all into real facts and great management.
Like all businesses, there are some that will be around for a long time and there are those that dance on tables now, but are never in the spotlight when the tide subsides. The best of these quotes are those from Warren Buffet.
When I look at Venture Minerals, with the recent announcements, the first thing that came to my mind was whether this could be the catalyst that Mt Lindsay needs to get going. A credit to the mining cost that would give the tin and tungsten the boost for profitability. One of the best words used in the mining process is credits.
Mining of the REE will be at the same stage as any other proposal to mine Tin and Tungsten so the excitement will be how much of the REE will contribute to the bottom line.
In many other REE projects, they will need volume and logistics. Venture will be adding the REEs to an existing mining schedule which will likely create credits to any spreadsheet.
When you look at the Cadia Gold Copper Mining Project, the most profitable gold mine in Australia, its All In Sustaining Cost (ALSC) is negative. In January 2021, Newcrest announced a record AISC of negative US$6 ($7.83) per ounce of gold due to higher copper prices and sales volumes, along with the timing of sustaining capital expenditure (Australian Mining).
Cadia produces gold doré from a gravity circuit and gold-rich copper concentrates from a flotation circuit at Cadia. The gold dore is then refined at the Perth Mint and concentrates are piped to a dewatering plant at nearby Blayney and sent by rail to Port Kembla in New South Wales for export. The Molybdenum Plant is expected to deliver an additional revenue stream in the form of a molybdenum concentrate which will be a by-product credit to AISC per ounce. ---- Newcrest Website
This is one of the most productive mines in Australia but it took a long time from discovery to production. At one stage, there was talk that this project was not going to get the tick of approval. Cadia was a closed mine since 1929 and only rejuvenated in 1992. Production as we know it did not happen immediately.
Hence, when I hear all the negative narratives about Venture Minerals, I would like to remind viewers that all the great projects in the world today did not happen overnight. The tin and tungsten strategy has not disappeared. The resurgence of the REE sector is mainly due to the recent changing geopolitical positions. The jostling for the biggest bully in international politics is just beginning.
This will impact Venture immensely as tin, tungsten and REE are key players in the critical and essential sectors. I sense that the resurgence of Tungsten may not be far away. Tungsten, in economical amounts, are indeed rare. The importance on the military side of things will make Tungsten take the spotlight.
Coupled with REE and tin, I think Venture is definitely worth putting on your watch screen and DYOR.
Take time and listen to Andrew Radonjic, Managing Director of Venture Minerals talk about the latest discoveries of REE in their projects.
Chapters
00:00 Start
00:20 Introduction
00:55 News about Rare Earths prospects.
02:12 What are the learnings from the discoveries?
05:27 How do you want investors to see Venture Minerals?
11:12 A good geology setting for carbonatites?
13:54 How do you see the Rare Earths market going forward?
17:38 Updates on other projects - Kulin and Thor.
23:02 Are we in the phase of new discoveries?
27:22 News flow.
30:48 Why Venture Minerals?
33:35 Conclusion
PODCAST
About Andrew Radonjic
Qualifications: BAppSc (Mining Geology), MSc (Mineral Economics), MAusIMM
Mr. Radonjic is a geologist and mineral economist with over 30 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 has been co-leading during the discovery of the Mount Lindsay Tin-Tungsten deposit. Andrew is a founder and recently was a director of Blackstone Minerals Limited (ASX: BSX).
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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