Tony's RDM Research

Hi all,

I finally got my hands on this - great read and I'll be looking to top up with confidence now.



ASX CODE: RDM  SHARE PRICE: 8C


After touching a new 12mth high of 9.4c this week, RDM’s share price has corrected sharply and now provides an ideal buying opportunity at 8c. The correction was to be expected following a strong run in the share price and was nothing more than some panic as opposed to some poor drilling results (have to be drilling in the first place) or a lack of interest in Maronan. Capped at a paltry $13.9m it could be argued that RDM is one of/if not the best value speculative resource opportunity on the ASX. This will of course depend on the benefit of hindsight and what MEP come up with in the near-term in Cloncurry with Oz Minerals. I believe RDM offers speculators an almost unrivalled opportunity based on,


·Plans to drill the massive Irindina target in the Northern Territory in early June. RDM has identified a very strong conductor with the “real” chance of striking some iron sulphides and hopefully some economic mineralisation. The potential is enhanced with the Basil (MTH) deposit in the region, although RDM are targeting higher copper-cobalt grades. There has been increasing interest in cobalt juniors such as BPL, CNJ, BAR along with MTH and CAZ. The ratio of cobalt converts is still relatively low in comparison to lithium where you will find 160 juniors now saturating the space. Whilst there could be a number of false conductors, you don’t find monster deposits without drilling. Article on emerging cobalt scenario here

·There is currently interest in the Maronan zinc-silver and copper-gold resource in Queensland. This resource underpins RDM’s share price on its own, however I still believe that the market capitalisation should be higher based on the exploration potential of Maronan at depth and the fact it is in Australia and South 32 are running out of mine life at Cannington.

·RDM are also working up the Mount Skipper target with further gravity work required to take it to a drill ready status. Again this would represent a viable target for a JV and/or corporate activity.

·Lawn Hill is being worked up as a valuable project that is prospective for zinc. During my recent discussions with Rob Rutherford it was apparent that this project was fast becoming a favourite with some outstanding conductors already identified.





·The key for RDM is to generate a JV and/or cash from Maronan that will allow the company to drill a host of potential “company maker” projects,. One of the most prospective in the Gawler Craton is Pernatty Lagoon which is a deep target but a potential “company maker” in its own right. RDM have elected to focus on Maronan with limited cash resources, however an injection would allow this extremely exciting project to be drilled. Reminds me of when the old Minotaur Gold MNG drilled into Uranus (now called Prominent Hill) back in 2001. If Pernatty Lagoon was to be drilled there is a decent chance the share price would be higher so the risk/reward would still be attractive for those who purchase and are still holding!

·Below is a list of RDM’s other projects that are all at various stages of advancement



You would struggle to find a junior capped <$14m that is sitting on a valuable resource at Maronan and then has a suite of potential “company makers” to exploit over the medium-term. Whether Maronan, Irindina, Lawn Hill or Pernatty Lagoon provides the catalyst, RDM looks very cheap at 8c and the current share price weakness should be seen as an opportunity rather than a threat. Whilst RDM is far from a bandwagon jumper the Irindina copper-cobalt target likely to be drilled in early June could see the share price re-rated >10c as the cobalt juniors come in for greater attention. An outstanding BUYING opportunity at 8c with those selling not really understnading what could follow pending a successful outcome at Maronan.