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Coffee with Samso Episode 19 with JP, Galan Lithium Limited (ASX: GLN) The Brine Lithium sector is something that I have never really looked at in detail.  I was a shareholder in one stock but it was during the rising market so I did not do too much research. However, after talking to JP from Galan Lithium Limited (ASX: GLN), I am very impressed with what they have to offer.  The whole sector is interesting. It is kind of like the iron ore industry in terms of the tonnage.  There is simply a heap of resource and the process of extracting the lithium is straight forward. Having this Coffee with Samso with JP definitely was the highlight of all my sessions.  I say this as I learned the most from this discussion. A special thank you goes out to David Tasker (Chapter One Advisors) for lending me Jake Barker who took care of the videography and the bulk of the editing.  Sure made life so much easier. Projects The Company’s projects are located within the South American Lithium Triangle in the Hombre Muerto Basin, one of the most important and prolific salt flats in Argentina and indeed the world. The basin is known to have the lowest impurity levels of any producing Salar in Argentina and has been in production for over 20 years. Several areas are targeted within the Project with the main focus being Candelas, in the south-east margin of the basin. Both areas have direct access to the salar including areas shallowly covered by recent alluvium. At Candelas, the target is approximately 15km long deltaic channel, which is the main access channel for lithium charged waters from source rocks to the south of the basin. The Candelas area adjoins Galaxy’s Sal de Vida project to the south. The Company is aiming to estimate a maiden JORC resource as soon as practicable. The Company is also investigating the various processing options open to it, with a view towards maximising the potential to directly produce battery-grade lithium carbonate the results of which will assist in the design and commissioning of a pilot plant. Corporate Information Market Capitalisation: 25M (July 2019) Outstanding Shares: 129M (July 2019) Top 20 Shareholding %: 49% (July 2019) PODCAST 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. www.samso.com.au If you find this article informative and useful, please help me share the information.  I try and write about topics that are interesting and have the potential to be of investment value.  It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au. About Samso

Mining clay is not what your typical mining conversation would be about if one is talking shop over a beer with friends.  Over the last 30 years in this industry, the connotation of being a geologist is all about mining. I will say that the mention of clay would not be part of that conversation.  If you mention industrial minerals, you would have them confused.  Imagine mentioning the term Halloysite-Kaolin. Interestingly, if you mention the mining of clay to those in the industry, you will be told that this has been happening for centuries.  What will come as a surprise to my non-mining Malaysian friends is that Malaysia or at least South-East Asia do mine a lot of clay.  I have been looking at this commodity for a while.  I think I looked at this in the early 2000s, but I will say that my understanding of the market, especially in the last decade is lacking. Hence, you can imagine my surprise when I looked into Andromeda Metals Limited (ASX: ADN).  Looking back, I should have taken more notice and looked at it more seriously.  The most significant disadvantage of being in this industry is thinking you know better.  I mean, mining clay, what is so special. After all, this has been happening for decades and centuries.  What could be so exciting? Andromeda Metals Limited (ASX: ADN) (source: Andromeda Metals website) Andromeda Metals (previously Adelaide Resources) was incorporated on 23 December 1993 and subsequently listed on the ASX on 11 September 1996. The Company’s head office is in Adelaide, South Australia. Andromeda Metals’ vision is to be a sustainable industrial minerals producer of high-quality halloysite-kaolin and high purity alumina material. The company aims to provide shareholders with a sustainable financial return on their investment in the Company. ADN has projects covering 6,102 km2 within 22 exploration licences located in South Australia, Queensland, Western Australia and the Northern Territory. The flagship and darling for the company would undoubtedly be the Poochera Halloysite-Kaolin project. What is Halloysite -Kaolin? An excellent question as I don’t even know how to spell it!  Well, let’s see what Wikipedia says: Halloysite is an aluminosilicate clay mineral with the empirical formula Al2Si2O5(OH)4. Its main constituents are aluminium (20.90%), silicon (21.76%) and hydrogen (1.56%). Halloysite typically forms by hydrothermal alteration of alumino-silicate minerals.[4] It can occur intermixed with dickite, kaolinite, montmorillonite and other clay minerals. X-ray diffraction studies are required for positive identification. It was first described in 1826 and named after the Belgian geologist Omalius d’Halloy. Halloysite is more for the High Purity Alumina or HPA part of the market.  It is the high end.  Kaolin is principally used to make chinaware and “simpler” products.  As described in several resources on Halloysite, the main focus is to get to the HPA market, which is slowly approaching as the next best thing. The Poochera Project. As one that prides in finding these non-descript projects that have hidden value, I am totally “pissed” that I did not get in when first introduced.  Why am I saying this?  Well, the project is straightforward — a white pile of clay mined with a loader and a truck.  I may have described it too simplistically, but if you get through all the jargon, it is that simple. Corporate Information Market Capitalisation: Approximately 83M (20/08/2019) Outstanding Shares: 1.3B (20/08/2019) Top 20 shareholding: 41% (2019) My Thoughts Like all these “next best thing” market, I am not overly convinced that it is going to be the Holy Grail.  How many of these Holy grail markets have we seen in the last few decades?  The only one that has come in and created a large new community is that of the Internet.  For those that are sceptics on what I have mentioned, look at graphite, graphene, lithium, cobalt, tantalum, tungsten…the list goes on. I am not saying that there is no demand.  What I am saying is that there is a difference between futuristic product demand and real current demand.  Lithium has an existing demand. However, the hype for a futuristic demand will be debated.  The profitability of a lithium producer is not worthwhile to debate. We all know that they will make money eventually as the lithium market will get squeezed, the supply shortages will guarantee a goof profit for producers. In terms of Andromeda Metals, I do believe that they have a great product.  They are now sitting on a market capitalisation of 80M based on no mining and a good story.  Are they worth the current value of 80M or the potential of higher values, my short answer is an overwhelming yes, for now?  Why?  It’s simple. They have a product that is required, and it is not that expensive to mine and deliver.  The market loves the story, and the perception of “off-takes” meaning products selling is working.  Will we see some consolidation on the price till the mining and real delivery happen, yes. Where I can be very wrong here is that the market perception does not allow it to fall and instead hold the current position.  I have seen this happen before, but if the final execution never happens, the price will fall.  If the market keeps it at the current levels, I suspect that the level of risk will be higher.  Market sentient has a history of keeping things where they may not be technically viable. Do I think that the company strategy is right? I will have to say yes as I know Rhod Grivas. Rhod has been in several great success, and I am sure he has plans in place.  For the very least, I do feel that management is not going to be the issue.  Like it or not, the content of the management group is essential.  For those “experts” who tell you that management is not that important, they are in for a big shock. Conclusion Andromeda has the market’s attention.  The momentum is on their side, and this is a very positive component of a reasonable share price.  The steady newsflow is helping the market pundits excited in anticipation of more positive news.  If I had to play the devil’s advocate, I would say that the market capitalisation of AUD80M before a scoping study on mining is probably getting to a temporary roof. What I want to see is a good pull back from the current pricing.  This thinking is probably one that comes from a trading perspective.  The old, let it come back and take a rest trading mentality,  take a few steps to consolidate for the next move.  This move creates a sense of relief that the pressure is not boiling. The “off-takes” are good. However, as we have seen in the past, the Iron ore “MOUs” was not a good outcome.  The other drawback is that you are not mining a rare as hen’s teeth commodity. What is the positive side of the equation?  As I have said, it is a simple mining process.  What they need to do is deliver a scoping study that is going to show the dollars.  They have the buyers, and they will get the funding, they need to show to the world a useful spreadsheet calculation. People in the mining sector refer to the term “free dig”.  When you look at the previous photographs of the area, it will be easy picking for the machines so mining cost will be minimal. If this scoping study shows promise, Andromeda is going to reach much higher values.  A lot higher than the current market capitalisation value of AUD80M. 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. www.samso.com.au If you find this article informative and useful, please help me share the information.  I try and write about topics that are interesting and have the potential to be of investment value.  It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au. About Samso

Coffee with Samso Episode 21 with George Bauk, Northern Minerals Ltd (ASX: NTU) The Rare Earths industry is commonly misunderstood.  Rare Earths or REE have recently gained a lot of interest in the media mainly due to the attention created by the US-China trade war.  Most punters in the market are not aware that there is a second aspiring REE producer on the ASX in Northern Minerals Limited (ASX: NTU).  Several months ago, I learned that the REE industry is primarily about permanent magnets. Northern Minerals Limited is focussed on becoming the first significant producer of the heavy rare earth (HRE), dysprosium outside of China. The Company has a large landholding in Western Australia (WA) and the Northern Territory (NT) that is highly prospective for this element. Its current portfolio consists of three projects, the Browns Range and John Galt projects in WA, and the Boulder Ridge Project located in the NT. Of these projects, Northern Minerals’ 100% owned Browns Range Project (the Project) is its flagship project, where it has a number of deposits and prospects containing high-value dysprosium and other HREs, hosted in xenotime mineralisation. Dysprosium is an essential ingredient in the production of NdDyFeB (neodymium dysprosium iron-boron) magnets used in clean energy and high technology solutions. As a result of increasing global demand for these applications, dysprosium supply is critical. PODCAST 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. www.samso.com.au If you find this article informative and useful, please help me share the information.  I try and write about topics that are interesting and have the potential to be of investment value.  It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au. About Samso

Coffee with Samso Episode 22 with Simon Paull, Castillo Copper Limited (ASX: CCZ) Late last year, I wrote about Castillo Copper Limited (ASX: CCZ) which announced some great results from their Cangai Copper Mine.  I was immediately intrigued. However, things did not go well for them. There were some environmental issues which appear to have been sorted out with their reinstatement to the Australian Stock Exchange (ASX).  Cangai Copper Mine in northern New South Wales is still one of Australia’s highest grading historic copper mines with a JORC inferred resource of 3.2Mt @ 3.35% Cu. A few months of hibernation and lots of “discussions” the company has a new strategy and a new team.  Most times, these new strategies are a lot of hot air, but what Castillo has come up with is very interesting.  The talk about the three-pillar plan and I have to say it is not unattainable. The rebirth has brought in a new project within Zambia’s well known “Copperbelt.” The two Zambian projects named, Mkushi & Luanshya, are adjacent to producing copper mines, which enhances the upside appeal for Castillo’s assets. The Luanshya project is south of three mines owned by Hong Kong-listed, China Nonferrous Mining Corp (HKG: 1258; Market Cap: A$1bn), that produced nearly 6,000t of copper in 2018 with total JORC compliant reserves at 52.3Mt @ 1.26% Cu. A key feature is the underlying geology is the same, comprising the Lower Roan Group, which is well known to host copper mineralisation. In addition, emerging explorer, UK-based Moxico Resources’ Mimbula Project has Lower Roan Group structures within its tenure and a JORC compliant resource at 61Mt @ 1.18% Cu. We understand from industry sources that Moxico Resources successfully secured Pre-IPO funding of US$32m which delivered it an implied US$80-90m enterprise value. The current plan is for Moxico to IPO on the London Stock Exchange in early 2020. Meanwhile, Castillo is looking to do a listing on the London Stock Exchange at the end of this year.  The company is supported by London stockbrokers Si Capital. In this episode of Coffee with Samso, the conversation is all about the business of copper and a company looking for a new direction. PODCAST 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. www.samso.com.au If you find this article informative and useful, please help me share the information.  I try and write about topics that are interesting and have the potential to be of investment value.  It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au. About Samso

Coffee with Samso Episode 23 with Alex Molyneux, Galena Mining Limited (ASX: G1A) The business of lead has long been a mystery to me. I did not realise the extent the equity market has forgotten the lead sector.  It was my meeting with Alex Molyneux recently that made me curious enough to invite him to a Coffee with Samso.  I am very glad he accepted as he has brought a lot of information to the table.  In this session of Coffee with Samso, Alex Molyneux has demystified the concept of this industry.  Alex has made me think that we may be missing out on a great opportunity to get into the lead sector. There is a great amount of resource that is being shared.  I encourage readers to take the time to watch and listen intently to his take on a rarely understood investment opportunity.  Did you know that lead plays an important role in the EV story? Galena Mining Limited (ASX: G1A) (Source:  Galena Mining) Galena Mining Limited floated on the ASX in September 2017. The company owns 100% of the Abra base metals deposit located in the Gascoyne Region of Western Australia. The Abra deposit was discovered in 1981 and remains one of the biggest undeveloped lead deposit in the World. Abra is within a granted mining lease. ​Galena completed a very successful drilling campaign in Q4 2017 with high-grade mineralisation intersected in every one of the 12 holes. These results have allowed the estimation of a new 2012 JORC compliant Resource in March 2018 of: ​This is 11.2Mt (Indicated and Inferred) @ 10.1% lead and 28g/t silver within 36.6Mt (Indicated and Inferred) @ 7.3% lead and 18g/t Silver. Galena has completed a Pre-Feasibility Study in September 2018 and is now on the pathway of a Bankable Feasibility Study PODCAST 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. www.samso.com.au If you find this article informative and useful, please help me share the information.  I try and write about topics that are interesting and have the potential to be of investment value.  It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au. About Samso

Coffee with Samso Episode 24 with Ian Mclelland, CEO, Proactive This episode of Coffee with Samso is all about Proactive. Ian Mclelland, who is the CEO of Proactive, was kind and brave enough to have a coffee with me.  As most would know, the content that is produced by Samso is published by Proactive. So it was a great privilege to have a coffee with Ian, and learn first hand about Proactive. Surprisingly, the things that Ian had to say was very consistent with Samso. This comment was heartening as it means the views of Samso is current. The conversation was free-flowing, and I am sure you will find it engaging as well. Proactive Proactive enables companies and investors to connect intelligently. Proactive is one of the fastest-growing financial media portals in the world, providing breaking news, commentary and analysis on hundreds of listed companies and pre-IPO businesses across the globe, 24/7. And, uniquely, their renowned multi-media business is complemented by quality events management, smart investor relations delivery and a highly respected research offering. PODCAST 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. www.samso.com.au If you find this article informative and useful, please help me share the information.  I try and write about topics that are interesting and have the potential to be of investment value.  It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au. About Samso

Coffee with Samso Episode 25 with Ed Turner, CEO, Kingwest Resources Limited (ASX: KWR) Over the last two decades, there has not been enough exploration to keep pace with the depleting resources of ongoing mines.  The recent M&A activity with producers in the Eastern Goldfields is proof that if you cannot find more resources, you buy them.  If I am not mistaken, this championing of more exploration has been echoed for the last twenty years.  There have been discoveries. However, industry experts will agree that there is still a large gap between what is required and what is produced. Kingwest Resources Limited (ASX: KWR) is one of those companies that are putting words with their wallets. A raise of AUD4M recently with an oversubscription of an additional AUD6M is very promising.  The company is exploring the highly prospective Menzies Goldfields looking to replicate the high-grade nature of historical mine production. In this episode of Coffee with Samso, I speak to Ed Turner, the CEO for the company. We talked about the company and why the Menzies projects are of great interest to investors.  I should say that I am curious about what they will uncover in this area.  As a die-hard exploration geologist, I am waiting in anticipation of some results. Podcast 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. www.samso.com.au If you find this article informative and useful, please help me share the information.  I try and write about topics that are interesting and have the potential to be of investment value.  It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au. About Samso

Coffee with Samso Episode 27 with James Marsh, Andromeda Metals Limited (ASX: ADN) In my opinion, Andromeda Metals Limited (ASX: ADN) is one of those companies that have a story so simple the market cant understand.  I spoke to James Marsh a few months ago after I published my article on their “clay” business – A simple business in mining Clay – Andromeda Metals Limited (ASX: ADN).  In that conversation, I got my first insight into what could be driving the surge in the share price.  I was not sure why a “clay” business could harvest all the market interest.  I have known about the clay story for a while as there are a lot of known kaolin resources in Western Australia.  These resources have never been successful due to logistics.  James and I spoke for a while and we agreed to try and catch up for a Coffee with Samso one day. Well, that day has happened in the beautiful city of Adelaide.  The conversation was very engaging and we had the longest ever Coffee with Samso.  This is a testament to how effective it is to get a story out with the Coffee with Samso format.  This is one of the most interesting conversations as I learnt a lot from James and the Kaolinite industry and how Halloysite is positioned in this market. What I can say is that Andromeda Metals has some very natural barriers to entry for new players.  The company is very lucky to have someone who knows the end product market and at the same time have had over 30 years of experience with Halloysite.  I don’t think these parameters are easily replicated… PODCAST 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. www.samso.com.au If you find this article informative and useful, please help me share the information.  I try and write about topics that are interesting and have the potential to be of investment value.  It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au. About Samso

Coffee with Samso Episode 26 with Scott Williamson, Blackstone Minerals Limited (ASX:BSX) Blackstone Minerals Limited (ASX: BSX) have been working hard on the Ta Khoa Nickel project since Scott Williamson had the last Coffee with Samso.  I have always liked nickel and I still think that the good times are not here yet.  What Scott and his team are trying to define is a Nickel Sulphide deposit that will be payable to mine.  As in the property investment strategies, location is the most important component which will determine the ingredients within the rock types.  I do feel that Blackstone Minerals are in the right address and the recent drilling proves that they are taping some good mantle materials. Form a geological point of view, these are critical components.  I do agree that there may be some sovereign issues but from what I am hearing, these are not creating any barriers.  As in these developing countries in Asia, economic development is of the utmost importance.  I have many business associates who tell me that Vietnam is no longer a sleepy place. Things are booming and the labour costs are no longer as they were in the past.  I am not saying that they are Western standards but they are definitely signs of economic growth. I have always enjoyed my conversation with Scott and this is another great conversation as we learn of the discovery of Platinum, Palladium and Gold discovery in their recent exploration.  Mobilisation of multiple rigs to the site is a great sign that money is going into the ground. It is a great update on Blackstone Minerals and their journey to develop the Ta Khoa Nickel Project. Podcast 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. www.samso.com.au If you find this article informative and useful, please help me share the information.  I try and write about topics that are interesting and have the potential to be of investment value.  It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au. About Samso

Gold mining in the Pilbara has been hit and miss for the previous decades.  If you look into the history of gold in the Pilbara, there is no doubt there have been many “gold mining” events.  However, I would never describe gold mining in the Pilbara as a provincial size.  I would call it spotty and sporadic over the many decades.  The focus back onto the Pilbara as a source for gold mining is only recent.  The re-focus is due primarily to the last gold conglomerate rush that was created initially by Artemis Resources Limited (ASX: ARV) and Novo Resources Corporation (TSX: NVO).  That gold rush has since disappeared, but the remnant debris is the appearance of some exciting gold stories.  These are not new stories but more rejuvenation of some old projects that may now become interesting due to the rising gold price. In amongst the myriad of stories, some have interesting aspects.  The Pilbara is a callous place for juniors with a tradition of shallow pockets and long arms, but it does bring some signs of possibilities to the process.  The only real producer was the Paulsens’s gold mine, and that is now a shadow of what it was.  In 2001, AGSO (Geoscience of Australia) quoted the following, “Bamboo Creek deposit (7.05 t Au total production; Williams,1998), the Golden Spec deposit (2.06 t Au to 1987) and the Lynas Find district (3.8 t). More importantly, however, significant Au resources have been defined at the Golden Eagle deposit (6.67Mt @ 1.96 g/t Au for 10.1 t Au), the Klondyke deposit (9.95 Mt @ 1.0 g/t Au for 10.0 t Au) and the Indee area (4.96 Mt @ 2.08 g/t Au for 10.3 t Au).” In some past conversations, I was told that the Paulson mine never really made money. It was marginal at best and creative accounting made it better than it was in reality.  I don’t know how much that was the truth and how much was a creative conversation… 🙂 Let’s have a look at some of the participants that I think is worth discussing. Kairos Minerals Limited (ASX: KAI) (source: www.kairosminerals.com.au) In the Pilbara, Kairos’ flagship asset is the advanced Mt York deposit which is located ~100km south-east of Port Hedland. Together with the nearby Iron Stirrup and Old Faithful deposits, this forms the cornerstone of the Company’s Pilbara Gold Project.  These deposits, some of which were mined historically in 1994-1998 by Lynas Gold NL, are located directly adjacent to the world-class Pilgangoora lithium mining complex (Pilbara Minerals and Altura Mining). On 23 May 2018, Kairos announced an updated Resource for these centrally located deposits, including Mt York, Iron Stirrup and Old Faithful.  The global Mineral Resource estimate at the Pilbara Gold Project is now 14 million tonnes at 1.3g/t gold for 643,000 ounces of contained gold. I was at one of the presentations and I was pretty impressed with the story.  Kairos suffers from the stigma of being one of the “conglomerate companies” which is common for all the players during that period of time.  In fact, almost every company in the Pilbara chasing gold suffers from that even if you were not involved.  Terry Topping, the Managing Director strikes me as a true exploration geologist and I was impressed with the presentation.  I took notice of the story so that makes him a great presenter and I like the way he thinks. Although Mt York is the main attraction, they have another project called Croyden that I liked. Croyden is an exploration stage play and will be far from the word “production” but it has a story worthy of some DYOR. The story is that there are a series of nuggets that are found along a ridge that seems to be NOT “Conglomerate” related.  In the valley, there are “watermelon seed” shaped nuggets found but these nuggets are definitely of different genesis.  There is a major regional structure that is striking NE-SW which could be a source of “primary” mineralisation, well at least a source of cooking ingredients.  In generality, I agree with Terry’s comments that this is most likely to be a sedimentary primary gold story.  It’s not a conglomerate story. Calidus Resources Limited (ASX: CAI) (source: www.calidus.com.au) The Warrawoona Gold Project is in the East Pilbara district of the Pilbara Goldfield of Western Australia, approximately 150km south-east of Port Hedland and about 25km south-east of the town of Marble Bar. Historically fragmented ownership has held back the development of the area. Calidus now controls the entire Warrawoona Greenstone Belt with a total of 780km² under its control. Since listing in mid-2017 with a resource of 411kozs, the Company has undertaken a systematic modern approach to exploration and tripled the resource base to its current 1.25 million ounces. Calidus completed a Pre-Feasibility Study (PFS) in early July 2019 confirming the Warrawoona Gold Project will be a robust operation with strong financial returns. The compelling technical and economic outcomes of the PFS have led the Board to immediately approve the commencement of a Definitive Feasibility Study (DFS), which we are aiming to complete by Q3-CY2020 to allow an investment decision to be made in late CY2020. The DFS will incorporate results from an extensive resource drilling programme (infill and extensional) to expand the current resource base and increase its confidence. I know very little about this deposit but from what I have read, this is a story that is developing slowly.  The research does show that the basaltic and ultramafic rocks of the Warrawoona Group are one of the most important hosts to gold mineralisation in the Pilbara. Looking at the latest presentation where the Feasibility cost of AUD1,159oz appears to make this operation very interesting.  With what is happening in the world events, and the inflationary nature of paper money, there is not much chance of the gold price going too far south of the current level of AUD2,200 oz. What I like about the nature of this project is the length of the strike.  Interestingly, all the four companies that I have chosen have these great strike length of mineralisation.  I don’t see many of these kinds of projects in other areas.  What is good in the Pilbara is the lack of cover. For example, the Klondyke project is mineralised from the surface. Artemis Resources Limited (ASX: ARV) Carlow Castle is located 28 km north-east of Artemis’ Radio Hill processing plant, via gazetted roads, and approximately 45 km by road east of the city of Karratha. Access is via the Northwest Coastal Highway and then by the unsealed Cheratta road which passes through the Project area. The gold-cobalt-copper mineralisation at Quod Est and Carlow Castle South is hosted in chloritic shear zones within the predominantly Archean mafic sequence. The ore zones appear partially oxidised above 20m with sulphides extending to depth. The primary sulphides are chalcopyrite, cobaltite and pyrite. The presence of chalcocite in some samples indicates supergene enrichment in the upper portions of the sulphide zone. The structural environment of the area is complex; Quod Est strikes north-south and dips steeply to the east whereas Carlow South strikes east-west and dips steeply to the north. Artemis has redrilled the deposit with a total of 24,721.6 m drilled on regular grids during 2017 and 2018. I have always said that gold is where you find it.  How it got there can be worked out when you have the time and money to have that luxury.  I am not sure why but Carlow Castle has me intrigued as there are no gold deposits that have copper and cobalt associated, especially in this part of the Pilbara. I was introduced to Carlow as a cobalt project and later learned that it is maybe more a gold deposit.  As a cobalt project, I think it is the only one that is of significance in Australia.  How this deposit differs to the other companies in this comparison is the lack of drilling to test the strike length.  Like all the other projects we have mentioned, there is a strike of 30km that Carlow Castle sits on.  Only 1.2 km of that strike has been drilled. Carlow has a current resource of 7.7 million tonnes (Mt) at 1.06 g/t Au, 0.51 %Cu, and 0.08% Co.  I think that the significance of the CU-Co-Au mix makes this deposit interesting.  As most readers of my Insights will know, I am a big fan of the “base-metals” suite.  Carlow castle sits in a known nickel province, and a well-known prospector has an adjacent tenement that is prospective for PGE.  Hence, the base-metal part is not significant, but to me, the gold piece is a bit out of the ordinary.  There are numerous reports of nuggets discovered and small miners in the area, but there have been no significant discoveries recorded. One of the key issues with this deposit is the separation of the gold and the copper.  Artemis has completed a preliminary metallurgical test work and has shown that this could be done efficiently.  A large portion of the gold component ranging up to 48% is recoverable using gravity separation.  The non-gravity gold is recoverable in sulphide concentrates as a by-product using standard floatation. DeGrey Mining Limited (ASX: DEG) (source: De Grey Mining Limited) De Grey’s Pilbara Gold Project is approximately 60km south of Port Hedland in the Pilbara Region of Western Australia. The Company’s current exploration program is focused on the upgrade and expansion of known resources, as well as in the discovery of new deposits. Overall, the Pilbara Gold Project has excellent potential to define significant additional resource ounces along the 200 km plus strike length of mineralised shears zones, throughout the greater than 1,500 km² landholdings. To date, approximately 10% of the shear zones have received detailed shallow RC and diamond drilling to a nominal depth of 100-150m defining ~ 1.7Moz (JORC 2012*) of gold resources (ASX Announcement 16 July 2019). De Grey considers the extensive strike length of untested and gold anomalous shear zones together with the discovery of gold nuggets associated with previously unrecognised conglomerate targets as one of the most under-explored and prospective regions of Australia. The Project is well served by infrastructure since it is close to the regional centre of Port Hedland, a gas pipeline, two railways and is traversed by the Great Northern Highway. Conclusion I chose these four companies to have a discussion because I think they all seem to have similar projects and of a similar style.  They are all juniors and have a project with a decent amount of resource ounces.  There are a lot of similarities to each other.  I left Northern Star (ASX: NST) out of the list as they are a different beast.  What they have in the Pilbara appear to be refractory and only they can make it work.  If any of the four companies have the refractory factor you can take them off the list. I wrote about DeGrey Mining in April 2019 entitled, Finally a Real Gold Project in the Pilbara?- De Grey Mining Limited (ASX: DEG), and I mentioned that this was a good project with A-Grade shareholders.  I still think that this is the case but I sense that the company is struggling to make this happen.  I have not looked at the logistics of the company recently but with the resources and the potential of the area, I am very disappointed to see the result.  There is talk about Board turbulences but I think this one may be heading for hard times.  This could be one of those instances when another owner or two is required to make the “7th company” theory true. As I mentioned, I know the least about Calidus Resources but they seem to me to have the best looking numbers.  Their PFS seems to be pointing to all the right numbers and only time will tell if this is going to happen. Grades look good so they should avoid the Millennium Minerals Limited (ASX: MOY) tragedy (should never have happened). The dark horse could be Kairos Minerals.  Their Mt York deposits have the numbers but I think this may not work.  I don’t mean that the deposit is not good, I feel they need a lot of money to make that work. Piecemeal fundraising in this part of the world is not going to go very far.  As opposed to my previous discussion (Coffee with Samso – Episode 026 – Blackstone Minerals Limited (ASX: BSX) Developing the Ta Khoa Nickel Project in Vietnam.) with Blackstone Minerals Limited (ASX: BSX), their dollar does go very far in Vietnam. The project I like is the Croydon Project even though it is an early-stage exploration project.  I like it because they could actually bring something new to the table.  Unfortunately, that will take time and most importantly, money.   The potential of this project is what I am excited about.  The fact that there is so much free gold being found in samples makes this unique.  Nuggets that clearly appear to be from two different sources cannot be ignored.  The nuggets can be clearly observed to be fundamentally different in form and structure is going to be the hardest thing to understand.  If Terry and his team work this puzzle out, they could actually find their form of Lassiter’s Reef. In my humble opinion, I think the strategy for Kairos Minerals is to try and get the production story happening for Mt. York and then go seek investors in Non-China Asia.  There are a lot of punters who want this kind of story.  My last roadshow there showed me that there are still many people who are waiting to invest in this sector.  When they get this funding and get Mt. York to work, they will have the funding to explore Croydon properly. Carlow Castle is my favourite. I like it because it is a deposit that is different (Best undiscovered project: Carlow Castle an unconventional Gold-Cobalt-Copper mineral Project). A recent article in Economic Geology mentioned that this deposit is older and different from the others in the region.  I agree with them as I have mentioned earlier due to the chemistry.  Artemis has a very simple process, drill and drill and drill. They will absolutely get more resource and they have a highway as a mineralised strike.  When they have over the million-ounce stage, they have the Radio Hill Plant ready to go to work. Carlow Castle and Radio Hill plant will be a joint strategy for the company as things move on.  Like many things in life, there is a Ying and Yang, and for Artemis, it is money.  They need money to drill and then it is a no brainer to production.  Unlike Artemis, the other three companies are not 28km from Karattha and have all the simple pleasures of logistics, utilities and low cost of manpower.  This is why Carlow Castle is my favourite of the three.  The project is well lined up. All they need is to upgrade the resource so that the PFS and the DFS will bring in the production investments. Artemis Resources has taken a wild ride of late.  The recent capital raise to pay off the debt was a great success and Ed Mead must take a lot of that credit.  Speaking to Ed over the years, he is a creative guy and I am sure the forthcoming challenges of raising more money to develop Carlow Castle will be achieved.  This will be the next hurdle for the company. Hence, apart from De Grey, there are going to be hard choices to make on which horse to bet.  Personally, I like Carlow Castle as I feel Artemis is undervalued for what they have. My second choice would be Kairos Minerals as discovery at Croydon and restructuring of strategy on Mt. York will definitely bring re-valuation of their share price. In third place is Calidus as they are prone to a revaluation when they get mining. Currently, they are in a hibernation mode as the market figures them out. NOTE: Samso is not a shareholder of any of the companies mentioned.  Samso is also not commissioned to write this Insight. 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. www.samso.com.au If you find this article informative and useful, please help me share the information.  I try and write about topics that are interesting and have the potential to be of investment value.  It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au. About Samso

I have always thought that the Heap Leach process was for deposits that were substandard and for those that cannot raise good capital for a  “decent” mining process.  It was a recent discussion with an associate about the treatment of transitional and oxide ores in a low-CAPEX manner that I decided to do some homework.  The conversation was pretty non-engaging and straightforward until he mentioned theTujuh Bukit Mine in Indonesia.  He told me that the Heap Leach pad has about eight million tonnes of material on it.  That is one big pile of dirt. Although, I have always known about this process as a cheap means of extracting gold, nickel, REE and copper ores. What I did not realise was the sophistication that has been applied, learned and developed over the years.  What little I did know was that the ores are mainly low-grade and must have the specifications attuned to the process.  One of the main attributes required is the ability to be permeable, and preferably the ore is of an oxide nature. That was the moment that made me curious enough to realise that this is a serious process and not just for the likes of small-time miners.  And, of course, more reading has made me realise that this is more than a serious operation with the extensive leaching processes in the USA, Chile and Peru.  The Heap Leach process is so advanced that there are practically hundreds of article written about all aspect of the process.  The way they “pile” up the ore is also sophisticated.  The copper players in Chile, the worlds largest copper mine, the Escondida Mine has a leach pad for the sulphide ores and another for the oxide ores. The diagram below gives some context of the size of these Heap Leach pads.  I am not sure if the Escondida one is bigger than the featured image from the Tujuh Bukit Gold mine in Sumatra, Indonesia.  Suffice to say these are an excellent example of the success of the Heap Leach process. To give some context of what I mean by a giant mine, the photo below is that of the Escondida Copper Mine.  Imagine the low-grade nature that is analogous with Porphyry deposits and the associated large amount of ore that is treated with a Heap Leach process.  In some literature, the Heap Leach process is also described as being more environmentally friendly than traditional mineral processing methods. History of Heap Leaching. (source: A Brief Note on the Heap Leaching Technologies for the Recovery of Valuable Metals, 2019, Thriveni Thenepalli, Ramakrishna Chilakala, Lulit Habte, Lai Quang Tuan  and Chun Sik Kim; Sustainability 2019, 11, 3347; doi:10.3390/su11123347). Heap leaching is one of the oldest and the most traditional mining process used to extract valuable metals from specific minerals. This is a hydrometallurgical process in which the solution is applied for the dissolution of minerals from the ore that is used for the extraction of metals. Originally, heap leaching was practised 500 years ago. Georgius Agricola published a book De Re Metallica in 1557 and reported that the heap leaching process was finished in a 40-day cycle. Since the middle of the 16th century, heap leaching was practised in Hungary for copper extraction.  In 1969, gold heap leaching began in Nevada (birthplace of modern heap leaching) and in the middle of the 20th century, the United States Bureau of Mines began applying this technology. Gold and silver heap leaching first began at Cortez in 1969. Currently, 37 different heap leaching operations are active worldwide for the production of gold, which is estimated to be around 198 tons per year. What is Heap Leaching? According to Wikipedia,  it is a simple process. The mined ore is usually crushed into small chunks and heaped on an impermeable plastic or clay lined leach pad where it can be irrigated with a leach solution to dissolve the valuable metals. While sprinklers are occasionally used for irrigation, more often operations use drip irrigation to minimise evaporation, provide more uniform distribution of the leach solution, and avoid damaging the exposed mineral. The solution then percolates through the heap and leaches both the target and other minerals. This process, called the “leach cycle,” generally takes from one or two months for simple oxide ores (e.g. most gold ores) to two years for nickel laterite ores. The leach solution containing the dissolved minerals is then collected, treated in a process plant to recover the target mineral and in some cases precipitate other minerals, and recycled to the heap after reagent levels are adjusted. Ultimate recovery of the target mineral can range from 30% of contained run-of-mine dump leaching sulfide copper ores to over 90% for the ores that are easiest to leach, some oxide gold ores. The significant advantage of the heap leaching method over conventional leaching and recovery techniques is that heap leaching consumes less than 0.3 ton of water for one ton of ore. What do you leach? (Source: Wikipedia) Heap leaching is an industrial mining process used to extract precious metals, copper, uranium, and other compounds from ore using a series of chemical reactions that absorb specific minerals and re-separate them after their division from other earth materials. Similar to in situ mining, heap leach mining differs in that it places ore on a liner, then adds the chemicals via drip systems to the ore, whereas in situ mining lacks these liners and pulls pregnant solution up to obtain the minerals. Heap leaching is widely used in modern large-scale mining operations as it produces the desired concentrates at a lower cost compared to conventional processing methods such as flotation, agitation, and vat leaching. Additionally, dump leaching is an essential part of most copper mining operations and determines the quality grade of the produced material along with other factors. Due to the profitability that the dump leaching has on the mining process, i.e. it can contribute substantially to the economic viability of the mining process, it is advantageous to include the results of the leaching operation in the economic overall project evaluation. This, in effect, requires that the key controllable variables, which have an impact on the recovery of the metal and the quality of solution coming from a dump leaching process. The process has ancient origins; one of the classical methods for the manufacture of copperas (iron sulfate) was to heap up iron pyrite and collect the leachate from the heap, which was then boiled with iron to produce iron(II) sulfate. Some Examples of Major Heal Leach Pads Several major projects around the world are using this method of extraction.  As mentioned, the major proponents of this process are miners of gold and copper porphyry deposits and these are in the USA, Chile, Peru and Indonesia.  These deposits are mainly lower grade and have a large tonnage.  Interestingly, the other gold mining countries such as Australia, South Africa and Canada do not seem to practice this form of processing as much.  In terms of weather, the dry arid nature of Australia would be ideal, especially the low rainfall parts of the drier parts of Australia. Tujuh Bukit Project According to the company website, the Tujuh Bukit Project consists of 2 (two) distinct mining development opportunities: firstly, the low capital cost, low operating cost and low technical risk Heap Leach Project, which entered the production  at the beginning of 2017; and secondly, the potential future development of the world-class Porphyry Project subject to the successful completion of required technical, environmental and social studies. The heap leach pad working inventory of 3 Mt at 0.72 g/t gold and 8 g/t silver containing 0.07 Moz of gold and 0.8 Moz of silver. The heap leach pad is considered to be a working inventory because the active ore placement lift has a planned 150-day leach cycle to realise 100% of the estimated total recovery. In addition to this planned leach cycle, there is potential for additional recovery of metal as the leach solution percolates through the underlying lifts. As of 31 December 2017, the Heap Leach Oxide Project Mineral Resources are 106 Mt at 0.73 g/t gold and 24 g/t silver containing 2.5 Moz of gold and 80 Moz of silver. Escondida Copper Mine (Source; Wikipedia) Escondida is a copper mine in the Atacama Desert in Antofagasta Region, Chile. The Escondida deposit is one of a cluster of porphyry coppers in an elongated area about 18 km north-south and 3 km east-west. It is associated with the 600 km long West Fissure (Falla Oeste) system, which is in turn associated with most of the major Chilean porphyry deposits. A barren, leached cap, in places up to 300 metres thick, overlies a thick zone of high-grade secondary supergene mineralisation of the main orebody, largely chalcocite and covellite, which in turn overlies the unaltered primary mineralisation of chalcopyrite, bornite and pyrite. At mid-2007, Escondida had total proven and probable reserves of 34.7 million tonnes of copper, of which 22.5 million tonnes is estimated to be recoverable. Total resources (including reserves) were 57.6 million tonnes of copper, of which 33.0 million tonnes should be recovered. Exploration continues. Sulfide ore, which contributes 77% of the recoverable copper reserve, is crushed and milled in one of the two concentrators and the copper concentrate is separated out using froth flotation. Approximately 86% of the copper is recovered. It is piped down to the port of Coloso, where it is dewatered before shipping. Oxide ore, 4% of recoverable copper, is crushed, agglomerated and then acid leached in large heaps, and the copper is recovered from the leach solutions as copper cathode in a solvent extraction/electrowinning (SX/EW) plant. Recovery is 68%. The low-grade sulfide ore contributes 19% of recoverable copper. It is also crushed and dumped on large heaps, but here the leaching occurs through oxidation induced by microorganisms. The copper is also recovered by SX/EW. Is Heap Leaching something of the Past? In July 2019, Kinross Gold Corporation (TSX:K; NYSE: KGC) (“Kinross”) announced an agreement with N-Mining Limited (“N-Mining”) to acquire Chulbatkan, a high-quality, heap leach development project for $283 million, including approximately $113 million in cash and approximately $170 million in Kinross shares. In addition, N-Mining will have the right to economic participation equivalent to a 1.5% net smelter return (NSR) payment and contingent consideration linked to future reserve additions (www.globenewswire.com). Chulbatkan is located in the industrialised district of Khabarovsk Krai, Far East Russia, approximately 15 kilometres southwest of Udinsk, a settlement on the Amgun River and has year-round transportation access. The projects have indicated resources of approximately 3.0Moz and have an estimated AISC of USD$ 550oz. CAPEX is expected to be in the USD500M mark.  The mine is expected to be low cost, and the processing is focused on a Heap Leach process. The examples I have given above are very big, but on a smaller scale, there are also participants looking at a cheap alternative to mining.  An example is Tatana Resources, a company at the time of research was quoted as looking to list on the ASX.  They have a smaller Heap leach process that is looking to extract copper from oxide ores.  In my time in the Eastern Goldfields, I had seen many such operations.  In 2015, Pheonix Gold Limited (ASX: PXG), taken over by Evolution Mining Limited (ASX: EVN), announced a Feasibility study to progress with a Heap leach strategy with their Castle Hill project.  They reported an AISC of AUD913, and in essence, that is a good result for very low-grade ore. Conclusion This has been an interesting article to write as there is more to the topic than I realised.  Although I am not in the mining world, the whole topic is intriguing and shows that perception can be very deceiving.  I think most people who read or invest in this industry are in the same situation.  We know enough to be dangerous is a phrase I use to say when we know just enough to make a fool of ourselves.  In a simple way, Heap Leach works really well for ores that are oxide in nature and are permeable.  The way the pile is constructed or rather the design of the leach pad is the next most important aspect.  Recovery is normally lower than your conventional treatment methods, but the cost, the capital cost of the process is also significantly lower. The operational cost would also be lower as you require less water, energy and chemicals. As it is always the case, when you learn something about what you think is little known or little publicise, it becomes so in your face you wonder why you never picked up on it.  As most people would have noticed, the mining grade is lowering, and mines are going deeper.  As I was promoting in 2009, the time for a revaluation of gold is coming as mines get deeper and the cost of production follows that curve.  When you look at my recent article, Gold in the Pilbara- The Players and their Story, there are many deposits around the world who are isolated due to the fact that it is too expensive to process. Alternative means of processing have to come into play soon or the gold price would be ascending very quickly.  World and economic situations around the world are already pointing to a rising gold price.  There is no alternative to hedging against inflation at the moment.  If paper money becomes too inflationary and how would you flock to safety.  Apart from gold, what would be safe?  Gold has no alternative to safety unlike how you would have an alternative to fossil fuel, electric vehicles and hydrogen cells…etc Rising gold price will help create alternatives but I think if one can find projects that are amenable to Heap Leaching,  profitability will be assured.  With that comes happy investors and that leads to happy management.  And we all know what that leads to, a happy spouse and a happy world… 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. www.samso.com.au If you find this article informative and useful, please help me share the information.  I try and write about topics that are interesting and have the potential to be of investment value.  It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au. About Samso

Coffee with Samso Episode 28 with George Bauk, Northern Minerals Limited (ASX:NTU) I believe that the REE market has large gaps between investors that really understand the market and those that think they do.  I am very comfortable to say that I fall into the latter group as I have not invested in this sector before. This episode of Coffee with Samso has George Bauk from Northern Minerals Limited (ASX: NTU) talking to us about recent news on the REE market.  There has been a lot of news lately about US government discussions with Australian counter agencies in regards to a realignment of priorities with the REE industry. I do hear a lot recently that there is a demand for investing in REE companies.  As I have mentioned in the previous Coffee with Samso with George, most investors don’t really know what this REE do.  Permanent magnets are the main story and there are still investors out there that realise the urgency to get into this business but they are still unclear of the reasons. PODCAST 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. www.samso.com.au If you find this article informative and useful, please help me share the information.  I try and write about topics that are interesting and have the potential to be of investment value.  It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au. About Samso