SILVER BULL CASE, page-69

Time to revive this Silver thread, Bulls!

Over at Red Metals, they are proposing a spin out and IPO of Maronan Metals: JORC Inferred Resource 30Mt @ 6.5% Lead and 106g/t Silver (3% Pb cut off grade)11Mt @ 1.6% Copper and 0.8g/t Gold (1% Cu cut off grade)

They characterise Maronan as a 'Cannington Style' deposit, naturally. The RDM Quarterly released 30 April says:

Maronan Metals Spin Out: Silver-Lead & Copper-Gold Mount Isa Inlier QLD

This quarter Red Metal announced its proposal to spin out the Maronan Project through the listing on the ASX of its wholly owned subsidiary, Maronan Metals Limited (MMA). The Company’s shareholders approved the spin out in April 2021.

MMA will be a new ASX listed company singularly focused on the exploration and development of the advanced Maronan deposit.

Maronan is a large base and precious metal deposit in the proven Mount Isa terrain of Northwest Queensland. With over 100 million ounces of contained silver, the Maronan deposit is one of the largest undeveloped silver resources in Australia.

Maronan has JORC 2012 compliant Inferred Resources of 30.8Mt @ 6.5% lead with 106 g/t silver (using a 3% lead cut-off grade) plus 11Mt @ 1.6% copper with 0.8 g/t gold (using a 1.0% copper cut-off grade). Refer to Red Metal ASX announcement lodged 27 October 2015 for details on the resource.

Mining studies taking into account the deposits exceptional metallurgical recovery, soft ore, high silver credits and favorable geometry suggest any potential mining operation may be highly profitable.

Advanced deposits located in low risk, mining friendly, jurisdictions are becoming a globally rare asset and the MMA IPO presents an opportunity for investors to secure an early stake in this emerging Australian mining asset.

MMA aims to raise up to $36 million to prove-up the shallower resources while testing exciting near surface and down plunge exploration concepts.

Red Metal believe the MMA initial public offer is priced at a significant discount to its ASX listed peers (SVL, G1A, IVR, ADT, RTR) and offers potential for significant near term growth for new investors.

Red Metal will retain approximately 50% of MMA, delivering increased value for Red Metal shareholders. Red Metal shareholders will also receive a priority entitlement to subscribe under MMA’s initial public offering. Veritas Securities Limited will act as Lead Manager to the capital raising.

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Ash here.

I don't hold RDM and for all I know, S32 has considered and rejected the project. Yet RDM is MC $35m or an S32 week's buy-back.

It would be nice to slip a Mt Isa region 'Cannington Style' project into the forward schedule ahead of Hermosa. The team at Cannington would know exactly how to develop it.

Ash