STTCOMP BGS, FA Long
Gold & Lithium Spodumene explorer in Mali, Africa.
Market Cap: $43.74m / Cash: $7m
Detailed Description/Catalyst
Gold
* Randgold set to take the option to mine Birimian’s long-held gold tenements near the Morila Mine in Mali. These tenements were originally purchased from Randgold during the gold bear cycle in 2012.
* "Morila will make a payment of $1,000,000 to Birimian and pay a royalty of up to 4% of gold produced from the Area of Interest. Feasibility studies and mine permitting are expected to take approximately six months to complete, leading to possible mine development early in the new year."
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http://imagesignal.commsec.com.au/d...nZXNpZ25hbC9lcnJvcnBhZ2VzL3BkZmRlbGF5ZWQuanNw
* As this is a Royalty deal with Randgold, it will be low maintenance for Birimian and will not interfeer with the exploration/development of their other assets.
* Birimian is currently reassessing the gold deal in an effort to ensure the gold deal is in the best interest for shareholders.
"Birimian has also commissioned a legal review of its option agreements (with Randgold) as part of its internal review."
http://imagesignal.commsec.com.au/d...nZXNpZ25hbC9lcnJvcnBhZ2VzL3BkZmRlbGF5ZWQuanNw
* "The target potential for the combined areas at Ntiola, Viper, and Koting is estimated to be, 8Mt @ 1.5g/t for ~400,000oz gold".
These deposits are 25 klm from the Morila mine offering a low cost, medium grade, bult tonnage, highly profitable deposit.
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* Market Cap breakup:
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* Potential Revenues:
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* Nuff said…
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Lithium
* Best drill results outside of Greenbushes:
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* Newly added lithium concentrator plant and additional outcropping to be further explored in the August PFS and future exploration program.
* Resource currently at:
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* Resource potential:
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* Peer comparison:
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Under new management
* Having held the Gold tenemants for 5 years and the Lithium tenemant for 1.5 years, the question needs to be asked as to why Birimian hasn't performed yet?
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* I'd always heard the saying "people 1st, resource 2nd"… I think I've just learned why.
* April 17 had seen Birimian in the darkest place ever with the removal of 2 directors through a 249D vote and the resignation of the 3rd director.
Then the new management team discovered the following issues:
http://imagesignal.commsec.com.au/d...nZXNpZ25hbC9lcnJvcnBhZ2VzL3BkZmRlbGF5ZWQuanNw
* I’ve spoken to management in early June and late June and the one thing I was told is that there were no new skeletons found in the closet.
New auditors have just been appointed and have had the chance to go through the books and no further issues have been identified.
Having met the MD James McKay I’m tipping that his conservative nature influenced the above noted issues and that they are a “worst case” scenario.
* Trading is expected to recommence on the 31
st July and as no further issues have come to light or been raised, I believe Birimian simply needs to rectify what was outlined above and detail to the market what the outcome was.
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01869815
* Future announcements to include:
- New drill campaign for Target 1&2, also further testing of Sangar and North/South extension of the West/East deposits.
- Auger drill results for the Main/West/Sangar Zones
- Rock chip assays for Targets 1 & 2
- Forecast resource target estimate for Target 1&2
- Gold assays from Koting
- JORC for Viper/Koting from Randgold
- Resolution of the unpaid creditor (tax liability) and a realisation that the $1.5m value was an absolute conservative number
- PFS with financials (NPV calcs)
- Meta testing on a wider sample of drill cores
- Hiring of appropriate lithium technical personnel
- Potential sprucing of the gold deal
- Potential investment from funds/institutions (watch for the Corporate Presentation announcement)
- Potentially bringing in M. Foteos in a board capacity
- Potentially penning a deal with either MOU party; Tongdow or First Battery
* If you find my write up a little cumbersome, you can visit the following link which is a little outdated but professionally written:
Page 31-32 of the document:
https://www.resource-capital.ch/fileadmin/reports/2017/final_Lithium.2_en_.pdf
***DISCLAIMER: I'm drunk when I write these up so please don’t take as financial advice.***
