Rat's Rant 8/11/24 (The World's Biggest Wave Edition)NMR -...

Rat's Rant 8/11/24 (The World's Biggest Wave Edition)

NMR - Native Mineral Resources Limited today closed up 10% to finish at 3.5c on $260k stock traded. The reason they were up today was because they announced the acquisition of a comprehensive gold package located in QLD.

The acquisition includes the Far Fanning, Black Jack, Great Britian & Granite Castle Gold Projects along with a processing plant and associated infrastructure.

Far Fanning consists of 5 mining leases and contains an inferred resource to 2.3Mt @ 1.84 g/t Au for 138Koz gold.

Open pit mining at Far Fanning resulted in 450Kt being extracted from seven oxide pits along a 1,700m strike length, 11,000oz Au was produced at an average grade of 0.9g/t Au.

The Black Jack prospect is part of the Charters Towers project which includes 12 granted mining leases, the prospect covers three shallow oxide pits that sit above underground workings.

The Processing Plant and associated infrastructure is located across 5.2km2 of granted mining leases and freehold land held 100% by Maroon Gold and is currently in care and maintenance.

The plant is currently permitted as a 340Ktpa operation with a primary and secondary crushing system, 600kW ball mill, gravity circuit, CIL arrangement, elution system and gold room.

In consideration for the acquisition, NMR will pay up to $18.9m which is structured over 33 months with a 2% perpetual royalty on gold production, ensuring a manageable cash flow profile without diluting shareholders through new scrip.

I chatted with the boss Blake briefly today as it's a pretty exciting acquisition given what it comes with, no doubt be chatting with Blake again soon.

Some details on today's acquisition are listed below:

NMR acquires advanced Queensland gold projects in transformational deal

HIGHLIGHTS:

• Transformational Acquisition: NMR has signed a binding agreement with Collins St Convertible Notes Pty Ltd (Collins St) to acquire strategic assets, including the Far Fanning and Black Jack deposits—advanced, near-production gold projects in northern Queensland as part of a deed of company arrangement approved by creditors.
• Strategic Rationale: Positioned in the mineral-rich Ravenswood-Charters Towers region, the acquisition provides extensive exploration potential, a clear path to gold production, and significant upside through resource growth opportunities. The experienced NMR leadership team is well-equipped to advance these assets efficiently, leveraging a large portfolio of advanced gold projects and exploration targets.
• Strategic Payment Terms: The consideration for the assets total $18.9 million, structured over 33 months with a 2% perpetual royalty on gold production, ensuring a manageable cash flow profile without diluting shareholders through new scrip.
• High-Quality Resources:
• Far Fanning: Inferred Mineral Resource Estimate (MRE) of 2.3Mt @ 1.84g/t Au for 138,000oz of gold (JORC 2012)
• Additional advanced resources include:
• Great Britain Deposit: 1.54Mt @ 2.2g/t Au for 109,000oz gold (JORC 2004)
• Granite Castle Deposit: 0.76Mt @ 3.14g/t Au for 77,000oz gold (JORC 2004)
• Comprehensive Asset Package: The acquisition includes 17 granted Mining Leases, one Mineral Development License, six Exploration Permits, and the Black Jack processing plant in Charters Towers, which is currently in care and maintenance.
• Attractive Deal Structure: NMR secures 100% ownership of the tenements, processing facilities, and related assets with a minimal initial cash outlay and no scrip consideration.
• Targeted sampling results: Seven targeted samples from historic stockpiles at Far Fanning returned grades of between 1.56 and 72.5g/t Au. Samples were selectively targeted at quartz and sulphide veins located in oversize material on historic stockpiles as part of NMR’s due diligence at Far Fanning.
• Upcoming Work: NMR plans to complete resource definition and infill drilling at Far Fanning to improve confidence and support an MRE update and feasibility study along with a review of available data for Great Britain and Granite Castle.

NMR plans to advance exploration and undertake resource definition and infill drilling at Far Fanning to increase resource confidence, followed by an updated MRE and feasibility studies.

These efforts could fast-track NMR’s transition from explorer to gold producer.

NMR’s Managing Director, Blake Cannavo, commented:

“This acquisition is a transformative milestone for NMR. By securing two near-mine, advanced gold projects with robust resource potential, we are positioning ourselves to move rapidly towards production.

This deal propels us from a junior explorer to a potential gold producer in under two years, significantly enhancing value for our shareholders.”

The Far Fanning project (FF) consists of five Mining Leases (ML) covering an area of 2.6km2 granted to Fortified Gold Pty Ltd, a wholly owned subsidiary of Maroon Gold Pty Ltd (Maroon Gold).

Collins St has acquired the assets of Maroon Gold from the receivers of Ashby Mining and in accordance with the Agreement, will divest the assets to NMR and work alongside NMR to develop the assets.

FF is located 45km NE of Charters Towers and lies on five permitted Mining Leases (ML) with the main historical open pit is only 30m deep and was last operated in 2005.

Additionally, there was a small underground mining operation in the early 2000s.

A JORC 2012 MRE completed in 2021 updated the Inferred resource to 2.3Mt at 1.84 g/t Au for 138,000oz gold.

A 2019 scoping study pit optimisation demonstrated potential for a pit expansion to 115m depth

The Black Jack prospect is part of the Charters Towers project, which includes 12 granted MLs, held by Fortified Gold Pty Ltd, a wholly owned subsidiary of Maroon Gold, and is located 15km south of Charters Towers.

The Black Jack prospect covers three shallow oxide pits that sit above the historic Black Jack and John Bull underground workings that were worked intermittently from 1875 to 1889.

The main workings consisted of two shafts to depths of approximately 60m and 90m, and seven levels up to 170m long.

The ore shoot pitched to the southeast and reached a maximum length of 122m at a depth of 37m. The lode was up to 0.9m wide and is reported to have yielded in excess of 60g/t Au grades.

From 1886 to 1889, it produced 11,920t for 20,796 ounces of gold.