VIDEO
Sowhat have we done? We have taken a deposit, which is located near Lake Grace inWestern Australia - it's only 300Km away to the south east in wheatbelt territory- and this project was thought to be (from the 2018 Resource that does exist)this low-grade deposit. Now it comes in with 180,000t of nickel and cobalt,it's at 0.64% nickel and 0.04% cobalt.
Whathas changed and what is so significant is we have been through a process that hasidentified multiple high-grade, high-quality products from what we generate. Sowhat I'm talking about is we are now in position where we are getting a high-gradenickel product off our vermiculite which is getting up to 4.5% nickel.
Nowto give context around that, there are some great rules of thumb - and I alwayslike to talk rules of thumb when talking different metals and things - is thatabout 2.5g/t of gold, when you look at pricing, is about the equivalent 1%nickel. And 2% nickel is the equivalent of 1% cobalt.
Sowhen we start talking 4.5% nickel – that’s significant when we start putting itin grade perspective.
Thesecond one I'll talk about, which we only announced recently, is identifying a completelyseparate stream in our cobalt. This is different to the cobalt that is justassociated normally with the nickel. This is a very distinct band - very easyto identify, very easy to mine, cobalt stream.
Nowit’s extensive – we’ll be doing more work on that into an MRE and where we'regoing there - but that stream has been able to be upgraded through theprocessing up into something that's almost 1.0% cobalt.
NowI suppose 1.0% doesn’t sound all that great. But then convert it to 2% nickel equivalentand think about it: If we’re already going to go mine the nickel, this thinghas no mining cost, and basically no processing cost. So you're gettingbasically free-carried for 2% nickel, or 5g/t of gold, right, if you go on theequivalents.
Butit's not just that. There's a third stream that's already been identified. Thework’s already in. We're getting a very high-quality magnetite nickel-chromiumproduct which is cleaning up very well, which is extremely low-silica - andthat's important for the stainless steel industry - but also it fits thecriteria certainly for looking into pigments, and also ballast material.
Sothis is another product that can command a premium.
Nowwe all know the market, particularly in some of the base metals and nickel hasbeen little bit more challenged than what we’d like. Now, the best drivers youcan have for dealing in any environment, you should always be looking toleverage your high-grade and high-value products.
Nowmost companies like to have one.
We'vegot three.
Twoof those three get basically a free-carry, right, because it's always going beone dominant that provides that.
Andthat's not even getting into the additional products the deposit’s got - whichis in its scandium, which is in its rare earths, and it's also got gold. We'vegot gold cleaning up to 4.3g/t. This in addition to everything else. And again,it's a free-carry.
Sowe’ve conducted an awful lot of work and this project is shaping up really well.And where we’re going with Quicksilver in itself is a very tactical approach tomoving forward into a Scoping Study. We've already got a lot of themetallurgical work done. The metallurgical work is actually already at a PFSlevel, and we'll be spending tactically along the way to progress Quicksilver.
Nowwhy is it important? The cobalt itself I’ll talk to. Cobalt is coming in at US$30,000/tat the moment, just for people's perspective. It is high-value - and that's at oneof its worst pricings in the last five years. The cobalt itself also has anextremely advantageous Ni-Co ratio which is actually very advantageous in thebattery industry. They need to actually dilute it down to get the right ratiosof nickel and cobalt - which makes it an extremely desirable product.
Butwe've also got Yuinmery which is located very close to Rox Resources who justupdated their MRE and are looking at a DFS.
Nowto give context, we're 11k's away on a fault offset and they have got 2.3Moz istheir new MRE at 4.4g/t, and we’ve basically got a nice, clean piece of territorythat's had a little bit of groundwork done on it, but certainly with the soilswork we did there last year there's been a multitude of additional targets identifiedthere.
NowYarrambee over the last 12 months hasn't had a lot of attention to it because ourpriority’s being on Quicksilver and then our secondary, Yuinmery. But certainlywill be looking how we advance and assess Yarrambee into the picture as well. Weare going to keep away from lithium, although we do have lithium tenements.
Butthe other thing we're going to do – and it ties into the background of who weare, and the management team, and what we do – so we want to grow not just Quicksilver,we want to grow Golden Mile.
Wewill be looking at additional assets we wish to bring into the Company. And thetwo targets we've got around and I'll talk to targets: one is early explorationtargets, and the other one is re-engineering. Now why do I like re-engineering?For the people who know me, and for the benefit of those that don’t - the lastproject that I was involved in re-engineering (and in fact I was lead in re-engineeringit) just sold last year for US$1.8B.
There'sa huge opportunity in identification of targets where people have not done theproper work at engineering level, to realise value. It's not just the one-off.I’ve done multiples of these over the years. And I'm happy to talk to peopleabout that afterwards over a beer.
Sothe important thing is we've got the experience in the executive and themanagement team. We have made might quite a lot of changes to where we were 12months ago with the Board and management. We've changed a lot of people out tobe a lot more streamlined, a lot more focused, a lot more disciplined. and verymuch looking at how we deliver on what we do.
Nowin saying that, the old question always comes up about, well right, where arewe at today? What's our market cap? What's the money like? They’re the questionsI get from shareholders and the like pretty much every day in my job.
Sojust to put everyone on the same page, we just raised another $1.06M which gotannounced this morning. We currently, when you look very simply at the Quarterly,plus what we expect back in R & D, plus the money we just brought in, thatsits about $1.8M. So we're sitting just a bit below $2M. Our market cap is only$5M. So we're basically on shell value for a company. The market hasn’t actuallyput value on the assets, which is a huge upside potential for Golden Mile as acompany.
Sowe're going to be driving Quicksilver, but being very tactical in ourexpenditure. We're going to be certainly looking at advancing our otherprojects. And then we are going to be looking for more and more things we can bring in to grow Golden Mile as well.
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