CR1 11.5% 11.5¢ constellation resources limited

Simple Summary of CR1

  1. 1,905 Posts.
    lightbulb Created with Sketch. 1433
    Sorry to barge in with a new thread, but tonight I thought I would look into CR1 and write (mostly copy+ pasted materials) a summary of the company to help me better understand what I am potentially investing my money into...

    To be honest, I have never heard of Constellation Resources (CR1) before, but am now intrigued with its low MC, quality of management, its project, and a certain poster here whom I respect very much and thanks to him has brought CR1 to my attention...

    This will be quite a short summary, as I see we only have one project...BUT...

    The Company’s focus is on the Orpheus Project in the Fraser Range of Western Australia, in addition to identifying and evaluating new opportunities in the resources sector.

    Currently, we have:

    https://hotcopper.com.au/data/attachments/3231/3231839-5338bc77341a92427da9f808416b399a.jpg


    The Orpheus Project:

    The Orpheus Project comprises six tenements covering approximately 558km2 in the Fraser Range province of Western Australia. In the Fraser Range, certain Proterozoic mafic intrusion suites are prospective to host nickel-copper sulphide mineralisation. The region is currently experiencing high levels of exploration activity for nickel following the Nova, Silver Knight, Mawson and Lantern discoveries.

    The Orpheus Project includes a 70% interest in three mineral exploration licences (E28/2403, E63/1281 and E63/1282) and one mineral exploration licence application (ELA63/1695).

    The granted exploration licences form part of a joint venture between the Company (70%) and Enterprise Metals Limited (“Enterprise”) (30%, ASX: ENT). Pursuant to the joint venture agreement, the Company is responsible for sole funding all joint venture activities on the tenements, which form part of the joint venture, up to completion of a bankable feasibility study.

    Additionally, the Company has a further 100% interest in two exploration licences (E28/2738 andE28/2957).

    https://hotcopper.com.au/data/attachments/3231/3231778-1f428fbaeec136fc2f797b1f5ae9804e.jpg

    Pursuant to the Joint Venture Agreement between the Company and ENT, the Company is required to sole fund all activities on the Joint Venture Tenements until completion of a Bankable Feasibility Study.

    The AFO is considered prospective for nickel, copper and gold, and has attracted significant exploration since the discovery of the Nova deposit in 2012 in mafic and ultramafic rock types.

    Recent field assessment has confirmed three priority targets (two nickel-copper sulphide targets and one gold target) on tenements E63/1281 and E63/1282. Gravity surveys completed in 2017 have resulted in the identification of two priority nickel-copper sulphide targets on E28/2403.

    Within E63/1281, previous drilling has intersected disseminated to blebby magmatic nickel-copper sulphides (uneconomic) at the Plato prospect. This represents a significant proof of concept for the exploration rationale searching for magmatic nickel-copper sulphides in the area.

    Ok, so lets have a look at the recent AC drilling program on tenement E28/2403...

    As per ANN 08 March, 2021:

    The high priority follow-up infill AC drilling is comprised of 20 holes totalling 2,200 metres and will be undertaken to improve the definition of the grade distribution at several of the established Ni-Cu-CoPGE geochemical footprints, with the northern Eyre Anomaly being a priority due to the current lack of drilling. The drill program will aim to infill each anomaly to approximately 100m centres in the first instance with the potential need for tighter patterns in certain areas. The processed AC results will be utilised in conjunction with existing results to optimise the locations of an anticipated Reverse Circulation drilling and downhole electromagnetics program.

    As of 22 April, 2021:

    The latest AC infill drilling program was completed during March for a total of 1,535 metres with 13 effective holes reaching basement of a proposed 20-hole program. The infill drilling program targeted a number of Ni-Cu-Co-PGE geochemical footprints including the extensive (3km by 0.4km) Eyre Anomaly. Assays for the latest AC program are pending. The Company plans to recommence AC drilling this quarter, with an aim to complete the northern Eyre Anomaly infill holes to approximately 100 metre centres. The results from the current and proposed AC drilling programs will be processed to optimise the locations of an anticipated reverse circulation (“RC”) drilling and downhole electromagnetics program.

    Also, as per Ann 29 April, "The Company intends to undertake Downhole Electromagnetic (“DHEM”) survey on future Reverse Circulation (“RC”) drillholes. DHEM has proven to be the most effective tool to vector towards improved sulphides in areas by peer companies in the area experiencing similar levels of conductive overburden".

    So this is what we have:

     Completion of 15 infill air-core (“AC”) drill holes over tenement E28/2403, assays pending. (Hopefully not too far away)
     Additional petrological samples continue to return trace levels of magmatic nickel-copper (“NiCu”) sulphides in multiple holes over the extensive Eyre Ni-Cu-Co-PGE anomaly. With previously reported petrology, trace levels of nickel sulphides can now be mapped in a fertile intrusive unit
    over a 2km strike length, confirming scale prospectivity.

    https://hotcopper.com.au/data/attachments/3231/3231815-7e6338dbfde9d080e997075aff6f1b93.jpg

    Combined with previously reported Eyre Anomaly petrology results at the southern end of the anomaly, the magmatic Ni-Cu sulphide occurrences have now been identified over a 2km strike length (refer ASX announcement dated 19 January 2021 for further details). The Ni-Cu sulphide occurrences in addition with the associated pathfinder (Ni-Cu-Co-PGE) regolith anomaly, both track along the base of an interpreted
    large, and highly prospective fertile olivine bearing intrusion suite. The link between nickel sulphides with associated pathfinder geochemistry is considered highly promising. The results underscore the nickel sulphide fertility of the intrusions and its prospectivity to potentially host an economically viable deposit in the tenement area.

     Ni-Cu soil anomaly at the historic McPherson Prospect on southern tenement E63/1282 found to have coincident late time VTEMMax conductor following review of historical geophysical dataset.

    The Company recently completed a review of historic and newly released open file work programs over its tenement, E63/1282 and as such has reassessed the prospectivity of the historic McPherson Prospect (“McPherson”) located in the north-east corner of the tenement. McPherson is a coherent Ni-Cu soil anomaly that resides directly above a north-west trending magnetic unit that could represent a favourable intrusive unit to host nickel sulphides. McPherson is located 30km south west of Independence Group Limited’s Nova nickel mine...

    https://hotcopper.com.au/data/attachments/3231/3231818-5b3d4d932ebbbe5155e415a770a32a49.jpg

    AND... In light of the recent review (open file geophysical datasets recently completed by Russell Mortimer from Southern
    Geoscience Consultants review), a high priority surface high powered moving loop electromagnetic survey (“MLTEM”) has been approved by the Company to cover the McPherson soil anomaly and ground truth selected airborne electromagnetic anomalies of interest. The proposed MLTEM survey comprises of 13 lines for 14.5kms and is expected to commence in the coming weeks (Figure 4). If a MLTEM bedrock conductor of interest is identified, RC drilling is proposed as the next step as cover is not thought to be excessive.

    Looks like a fair bit of new on the way biggrin.png

    Lets have a quick look at Management and their skin in the game:

    https://hotcopper.com.au/data/attachments/3231/3231827-d2d20da585c4a48ffa41b4c0ebb1d2c6.jpg
    Does he have any skin in the game?

    As per Ann 17 March (Appendix 3Y), Peter now has 800,000 Ordinary fully paid shares in CR1, not to mention 166,666 (Listed options with an exercise price of $0.20 each and expiring 31 July 2021), 300,000 (Unlisted incentive options with an exercise price of $0.30 each and expiring 9 October 2021) AND 400,000 (Unlisted incentive options with an exercise price of $0.40 each and expiring 9 April 2022)...

    From this, I would say that he has quite an incentive to deliver for shareholders

    But let's just calculate his 800,000 shares from an SOI of 35,824.141... This means that Peter owns 2.2% of the company...

    I also like the fact that the Top 20 own almost half of the company:

    https://hotcopper.com.au/data/attachments/3231/3231852-3a9c2fae49a8abde0cf7a64b2c98d5d2.jpg

    And probably more now as the latest Top 20 hasn't been published yet by the company...

    *If you are reading this Peter, I would highly suggest that you provide shareholders with such a valuable investor resource on a monthly basis (Include a Top 20 section on your website under Investors) as do my other favorite companies....

    I will research the Top 20 in more depth in coming days and post my research... This, for me personally, is very important in making an investment decision and I trust Peter will see the added value in providing shareholders with this very important info

    Our finances?

     Cash at bank of $3.18 million and no debt as of 31 March 2021, well-funded for planned activities (I personally don't see a Capital Raise likely at this stage in the game) And might I add, 3.8 Mil for a MC of 13 Mil... WOW biggrin.png

    https://hotcopper.com.au/data/attachments/3231/3231842-62b3e35f4dbf6075a17ec462cfcc8286.jpg
    Current SOI 35,824.141 due to the addition of roughly 200,000 issued securities as per recent Appendix 2A Announcements...

    I am now quite officially interested in CR1, and looking forward to some company transparency (Top 20 monthly) before I decide to invest large amounts of my hard earned money...

    But besides this one shortcoming, I see a lot of potential on CR1, great management, sin in the game, highly prospective project etc etc...
 
watchlist Created with Sketch. Add CR1 (ASX) to my watchlist
(20min delay)
Last
11.5¢
Change
-0.015(11.5%)
Mkt cap ! $5.739M
Open High Low Value Volume
11.0¢ 11.5¢ 11.0¢ $4.385K 39K

Buyers (Bids)

No. Vol. Price($)
2 74600 12.0¢
 

Sellers (Offers)

Price($) Vol. No.
15.0¢ 63000 3
View Market Depth
Last trade - 11.41am 29/03/2024 (20 minute delay) ?
CR1 (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.