Coffee with Samso Episode 183 is all about the Brothers Rare Earth Discovery.
Venture Minerals Limited (ASX:VMS) has made an exciting discovery in the Golden Grove district - a high-grade clay Rare Earth project that deserves attention. This project stands out due to its impressive depth of intercept and high-grade mineral content, placing it among the top-tier projects in Western Australia.
The REE Journey begins for Venture Minerals Limited
In April 2023, Venture Minerals announced the introduction of the Iron Duke REE project into the Brothers project on a Rooster Talk - Venture Minerals Limited (ASX: VMS) - Building a Rare Earth Portfolio in Western Australia. The REE story for the company was a slow build up over the last 18 months.
Chapters:
00:00 Start
00:20 Introduction
00:57 High Grade clay hosted REE discovery at the Brothers Project
02:00 Reason for high grade
07:01 Direction of the Big Brothers Project
09:46 Is the Big Brothers Project the focus for VMS?
11:02 Discussion on metallurgy
11:57 How should investors look at VMS?
15:38 News flow
18:17 Why VMS?
21:13 Conclusion
Rare Earth Market Status
The rise or fall of the REE market pricing is one of the key indicators for the fortunes of the Rare Earth exploration sector. Currently, the market is experiencing a bearish price sentiment, causing anxiety among many investors. It is evident that the bear is no longer in hibernation. One cannot argue that the bear is out of hibernation.
Many supporters of the bear fail to acknowledge that this market has emerged as a result of a geopolitical situation. In my opinion, the shifting focus of world politics has made metals like REE (rare earth elements) quite appealing. The future requirements for REE components will undoubtedly contribute to the growing demand in the market.
As experienced investors are aware, the real profits lie in the long term. This is a widely recognised truth that is often overlooked by investors in the mining industry. The mining sector operates on a timescale of decades, rather than months or years. While there have been a few exceptional cases like Nova Bollinger (Ni) and DeGrussa (Copper) that have yielded results within a shorter timeframe, they are rare occurrences.
What makes Venture Minerals a good bet?
Venture Minerals excels at developing diversified projects that consistently generate value even in challenging circumstances. I have reiterated this sentiment multiple times during my Coffee with Samso session with Andrew Radonjic, where we discovered the hidden value in their various projects.
Why and how do we continue to do this? This is where experienced management takes the lead. The Brothers project is a prime example of the value that can be achieved. Initially appearing as an outlier, through drilling, it has now emerged as a strong contender in the Rare Earth race.
The Decarbonisation Problem
The global community is determined to transition to clean energy usage, but the path ahead is expected to be challenging and time-consuming. Unfortunately, the progress towards this goal is hindered by a significant portion of the population that believes limiting mining activities is the key solution.
The days of "Non-Decarbonisation" thinking are long gone. It's clear that we have embraced a new way of thinking. Let me share an interesting experience I had in South Australia. I recently had a coffee with someone who proudly shared how the state has successfully transitioned to renewable energy. It's inspiring to see how we are moving towards a more sustainable future.
The transition towards a world with less reliance on 'dirty energy' is no longer a novel concept. It has become an anticipated and inevitable journey.
Samso's Conclusion
Andrew Radonjic has once again surprised us with his impressive skills. The Brothers project, which I initially believed had a high potential for success, has proven to be a remarkable endeavor. During our recent Coffee with Samso session, we delved into the project's historical drilling, which has added an intriguing element to its overall appeal.
The two drill holes that were announced was into bedrock which would have suggested that there could be more to come. The recent release has made that thought come true.
Is the Brothers project a standout? It's difficult to say at this point due to the unresolved metallurgical question. What I've gathered is that they will address this concern by demonstrating leaching. The amount of acid and other related factors will likely be the focal point of discussion.
Will this be the catalyst that brings Venture Minerals back to its former glory days as a favourite among retail investors? I don't believe so, at least not right away. While the numbers are promising, the market is currently flooded with numerous rare earth element (REE) stories, making it difficult for Venture Minerals to stand out.
It is crucial for the market to discern which projects will succeed and which will not. The previous debate between Ionic and Non-Ionic is no longer relevant, as we have emphasised multiple times. The discussion extends beyond just the Acid content.
Currently, I understand that there are multiple projects that possess distinct qualities, which I believe set them apart. In the case of Venture Minerals, their uniqueness stems from their location (close to the new Lynas story), the grade of mineralisation, and the depth at which it occurs. Unlike typical REE areas, Venture Minerals does not face potential land issues.
All these factors, in my opinion, makes Venture Minerals different.
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, and recently included additional, potential large-scale quantities of tin and boron within the current resource base, and extensively throughout the greater Mount Lindsay skarn system. The tin-borates have not previously been assessed in any mining studies. Borate minerals contain a large amount of Boron, a critical mineral in the solar panel industry. 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, SensOre (ASX:S3N) is farming in whilst Venture retains the REE rights, the earn-in includes drilling of the Vulcan High Grade REE Target. SensOre’s proprietary AI technology has already highlighted lithium and copper exploration potential at Golden Grove North. The Company has a significant Nickel-Copper-PGE landholding at Kulin with two highly prospective 20-kilometre long Ni-Cu-PGE targets within the Kulin Project, whilst recent exploration has identified clay hosted REE targets.
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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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