Australian Mines Ltd (ASX:AUZ) isn’t a company that likes to mess around.
Since we introduced you to this sure-footed, sharply focused ASX developer back in August, AUZ has given us ample evidence that it likes to keep itself extremely busy.
AUZ is a company with a simple but high-impact objective: to emerge as a major global supplier of critically needed battery and technology metals.
It’s hoping to tap into the ongoing energy storage industry and the burgeoning battery-fuelled electric vehicle revolution… for both consumers and investors.
AUZ is doing this by developing two world-class, already JORC’d cobalt, nickel, scandium projects in NSW and Queensland: Sconi and Flemington. Each project is estimated to have a mine life of at least 20 years and has potential to provide 95% of the raw materials used in emerging battery technologies.
AUZ isn’t wasting a moment either. Since it first crept onto our radar, the company has been neck-deep in positive news flow.
As announced in September, AUZ is acquiring full ownership of the Sconi Cobalt-Nickel-Scandium Project in northern Queensland by signing an agreement with its JV partner, Metallica Minerals (ASX:MLM).
Sconi is considered the most advanced project of its kind in Australia, with mining approvals in place and a Bankable Feasibility Study (BFS) in progress as we speak, which is expected to be completed by April next year.
To give you an idea of what AUZ has in its hands, Sconi has been compared to the $673 million-capped CleanTeQ’s (ASX:CLQ) Syerston Project in terms of in-situ resource size and grade, metallurgy, geology and expected metal recoveries.
However, this is an early stage play and as such any investment decision should be made with caution and professional financial advice should be sought.
With its flagship project tracking along nicely, AUZ announced in September that a trial mining program has commenced at Sconi, with all appropriate mining and environmental approvals already in place to allow the company to expand to a full-scale mining operation.
An initial 20 tonnes of cobalt and nickel-rich ore is being extracted, with the material transported to AUZ’s Perth-based demonstration-size processing plant.
Based on the pilot-scale processing work recently undertaken, this 20 tonne bulk sample from Sconi is expected to produce up to 160 kilograms of battery grade nickel sulphate, 20 kilograms of commercial grade cobalt sulphate, and at least 5 kilograms of high-purity scandium oxide.
Encouragingly, the entire output from this initial run has already been allocated to potential international offtake partners.
Things are also shaping up at AUZ’s Flemington Cobalt-Scandium-Nickel Project, with a water license now secured, and a Preliminary Environmental Assessment (PEA) submitted — a major milestone towards the granting of AUZ’s mining lease, which covers an area of nearly 4000 hectares.
A key point to bear in mind is that Flemington is considered to be the direct western continuation of CleanTeQ’s Syerston ore body, separated only by a tenement boundary.
Syerston is one of the largest, highest grade, undeveloped nickel and cobalt resources outside Africa, and contains the world’s largest, highest grade scandium resource. What AUZ has in Flemington is regarded as the other half of that deposit.
Importantly, the scandium footprint at Flemington has also increased threefold based on assay results from a Resource extension drilling program.
That’s not all AUZ has going in its corporate repertoire. It has commenced a detailed airborne geophysical survey of its Thackaringa Cobalt Project, near Broken Hill in NSW. While its advanced projects remain AUZ’s central priorities, Thackaringa offers considerable exploration upside.
All in all, it’s been a fruitful couple of months for this $49.8 million-capped battery metals developer. And investors have clearly been paying attention — recent news has positively affected AUZ’s share price, with an increase of more than 50% since June.
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AUZ is also strategically capitalising on a fertile market that’s expected to see plenty more growth. The battery technology rally is in no danger of slowing down, with electric vehicle sales projected to grow to over 20 million by 2020.
Things will continue to heat up for the fast-moving AUZ as it makes the transition from development into production. The news will likely flow thick and fast, including completion of the processing plant construction and a Pre-Feasibility Study (PFS) for Flemington.
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