Aegis CommentsOutlook: It is ZGM’s intention to generate cash...

Aegis Comments

Outlook: It is ZGM’s intention to generate cash flow from gold mining in Central QLD as soon as possible. This cash flow would be re-invested in other exploration projects to grow the business and increase shareholder wealth. ZGM has two advanced projects: the Lucky Break Mine and an option over the Belyando open pit mine. Preliminary drill campaigns have been completed at both projects and the results will be used to plan more extensive programs that will determine future planning.

Catalysts: ZGM is a new listing without a history. It is focused on QLD, particularly exploring for copper-gold on tenements that cover part of the Drummond Basin and part of the Anakie Inlier. The latter hosts many copper-gold prospects, like direct shipping copper ore was mined from Mt Clifford near Sapphire. ZGM’s Lucky Break mine has a breccia zone outside the pit grading 6-28g/t. Here there is scope to define a resource leading to early production. There is also no option over the Belyando open pit.

Risks: Most of the tenements that Zamia has an interest in are in the early stage of evaluation so that the risk of not finding an ore body is high. There is potential for Native Title claimants to restrict access to certain areas and slow the pace of exploration. A shortage of drill rigs could also delay campaigns. The equity markets could become very risk adverse. This would make it difficult for most junior explorers to raise capital to fund ongoing activities.