For those too tired to read today's Annual Report, here is the juice, my bolds:
Chair Roger Higgins said:
The Company agreed to acquire Sandfire Resources’ tenements in the Cloncurry-Cannington region which, once finalised, will place Minotaur in a strong land position in a prolific base metals belt and bring full ownership of the Altia mineral resource. Nearby, preparations are underway to resume drilling at Jericho in the new year, the motivation being management’s strong view that the mineral resource can be expanded and upgraded through directed drilling.
We welcome the news that AIC Mines Limited (ASX: A1C) has purchased outright the Eloise mine operation. The juxtaposition of the mine and Minotaur’s tenure highlights the base metal enrichment of the area and points to continuing prospectivity.Minotaur, through 2022, will be well positioned to pursue organic growth through asset improvement. Applying well-honed skills and experience in the region Minotaur is perfectly capable of determining an investment case for resource expansion and advancing Jericho development scenarios.
CEO Andrew Woskett said:
Joint venture activity at the Jericho deposit was put on hold while similar prospects were slated for closer examination. Work on the Eloise joint venture (OZ Minerals 70%; Minotaur 30%) occurred intermittently as permitted by cross-border restrictions. OZ Minerals funded newJV ground EM surveys and funded similar work on the new venture with Sandfire Resources (ASX: SFR) to explore Sandfire’s extensive Breena Plains tenement group adjacent to the Eloise JV ground. Results from Breena Plains revealed a significant basement conductor named ‘The Gap’, exhibiting strong geophysical similarities to the Jericho system pre-discovery. A proof of concept drilling campaign is arranged to test the feature.
Minotaur and Sandfire agreed that Minotaur shall purchase Sandfire’s tenement interests in the region, including Breena Plains. The transaction includes Sandfire’s 60% interest in the Altia zinc-lead deposit situated 3km west of Jericho and 4km south-west of the Eloise copper mining operation. For Minotaur, consolidation of assets in this area of prolific mineralisation provides an organic growth pathway. These transactions create, for Minotaur, a dominant regional land holding in highly prospective terrane and interests in significant mineral resource assets at Jericho, Altia and Sandy Creek, all of which deserve further exploration attention.
Minotaur is particularly of the view that the Jericho Cu-Au resource model can be substantially improved through targeted drilling within the current block model.
Sale of the nearby Eloise mine to AIC Mines1 (ASX: A1M) crystalises valuation of the Eloise mining operation which, having been in private ownership for decades, has not been visible to copper minded mining investors, until now. Minotaur recognises this as beneficial as it provides a direct yardstick against which the Jericho deposit can be publicly measured and assessedfor development viability. AIC Mines’ Prospectus details operating and orebody characteristics for Eloise, immediately relevant to Jericho given proximity, similar mineralogy, geology and geochemistry. As Minotaur works the Jericho resource upwards the task of building a development case can be supported by reference to the Eloise operation and production history.
The Highlands project north-west of Mt Isa, Queensland is to be vended into an initial public offering by Larvotto Resources for a mix of cash and shares, subject to listing in FY2022.
South of Charters Towers, Queensland, at the Windsor project IP trials in October 2020 were inconclusive causing a review of targeting methods. A groundwater copper isotope collection and analysis approach was adopted and is underway in collaboration with James Cook University.
South of Townsville, Queensland, Minotaur acquired the Pyramid Gold Project where past explorers proved the presence of several gold mineralised features along the Gettysberg fault corridor. The Gettysberg occurrence had been successfully drilled, returning an impressive array of high-grade gold assays but not satisfactorily pursued. Minotaur’s initial drilling confirmed historic grades and intersections and also identified several new IP chargeability responses, suggestive of sulphide development at depth. Arrangements to dill test each anomaly are in hand.
In South Australia, Minotaur’s Peake and Denison project now has drill locations determined and land access and Native Title cultural heritage clearances obtained in readiness for drilling.
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Ash here.
MEP - soon to be Breakaway - has a big slate of drilling activity in the year ahead. Drilling Jericho deeper is keen smart, now A1M owns Eloise. While A1M is drilling Eloise deeper, there comes a point where mining Jericho will prove superior to Eloise deeps.
The heavy rains in E Australia are likely delaying Breena Plains drilling. (I don't know) If there is something worthwhile there, MEP (Breakaway) will go berserk.
Ash
MEP Price at posting:
19.3¢ Sentiment: Buy Disclosure: Held
