By Samso
The podcast currently has 294 episodes available.
In my five years of establishing the Coffee with Samso series, Allan Kelly strikes to me a a true mineral explorationist. To those that have followed the Samso journey and have watched Allan share his projects in Miramar Resources Limited, you will know that he speaks with great sincerity.
Our conversations on the Samso platform (see below for previous conversation) are always long form and it has always offered a great insight to the reasons why Alan is so passionate in the potential discovery. When you watch and listen to Allan talking about the projects, there is no doubt that he is enthusiastic nature is wanting the viewers to know what he is doing and why he is spending money into the project.
The Insights to Allan KellyIn this first episode of Coffee with Samso - Insights, we learn about Allan Kelly, the person. In an industry that takes no prisoners, it is hard for investors to know who is actually really trying to make a discovery. It is difficult to know if the person who is telling you the story is actually telling the truth or the real facts.
I have been an investor in this industry since my university days in 1987 and have been a willing participant in the mineral industry since 1992. Like everyone who is working in the mineral exploration industry, we are all trying to make that economic discovery. The rate of success is not very high and as Allan mentioned in the first minute of the introduction to this episode, that rate of success is very low.
So what makes us continue to work in mineral exploration? Why are the likes of myself and Allan Kelly continuing to be in the lime light and the brunt of all criticism? The questions that are being asked is why the Coffee with Samso Insights is beginning its journey.
Get yourself a coffee or your favourite beverage and watch or listen and get a better understanding of Allan Kelly:
Chapters:00:00: Introduction
05:13 How did Allan Kelly get into this industry?
09:04 Western Mining Interview
11:40 Work with Western Mining
13:18 Is the Development of Geological Skills still a common trait?
13:44 Western Mining was Unique for the time.
15:27 What traits do you need to stay in the mineral exploration industry?
17:05 The Keys to be a Mineral Explorationist.
17:35 Don't be afraid to say you don't know something.
18:22 What is the Core Asset required to do well in the industry?
19:03 Need to have Endurance, the "Non-Technical Asset" - "Non-Geological Assets"
21:18 The Andy Well Story
23:29 The many reasons why a project may not be discovered.?
24:30 How do you decide and manage which projects to leave behind.
29:56 The lack of Mineral Exploration and Mineral Discovery.
32:24 Does Criticism Ever Affect you Negatively?
34:26 The Gidgee Project and The Paleochannel Problem.
35:11 Is it Frustrating to be misunderstood about the Gidgee Project?
37:30 How do Investors understand Exploration Results?
41:23 How to understand lack of Mineralisation strike length
42:31 What is Allan's thoughts on the Mineral Exploration sector?
43:49 Lack of Patience from Brokers
45:03 Reasons why Allan is optimistic with Nickel and the Bangemall project.
50:57 Allan's last Words.
51:26 Conclusions
Previous Conversations with Allan KellyMineral Exploration - Creating Value Organically
Miramar Resources Limited (ASX: M2R) - Mineral Exploration Success - Discovery at Marylebone.
Miramar Resources Limited (ASX: M2R) Discovery at Gidji, Bangemall and Whaleshark
Miramar Resources Limited (ASX: M2R) Discovery at Gidji, Glandore and Whaleshark.
Miramar Resources Limited (ASX: M2R) - Surprises in the Bangemall: Carbonatites and IOCG
Project Updates at Miramar Resources Limited (ASX: M2R)
The AuMega Metals Limited (previously known as Matador Mining Limited) story has come a long way since our first conversation in April 2020. The developing story is now moving into the next phase as the 2024 field season is beginning.
In this episode of Coffee with Samso Episode 197, Sam share with us the philosophy of the company and the strategy for AuMega Metals and the reasoning behind the rebranding exercise. AuMega is well supported with an international miner, B2Gold Corp. as a major shareholder and that clearly show the confidence the shareholders have in the AuMega Metals Limited story.
Samso's ConclusionFor those readers who have been followers of the Coffee with Samso series, it is common knowledge that I am a big fan of the AuMega story (formerly Matador Mining Limited). I have always said that the biggest value adding process for shareholders is to look for your own discovery. Promoters in this space preach that the refurbishing of projects is more cost effective but in practice this is more of a myth that a reality.
The strategy by the management of AuMega is disciplined and with the stewardship of Justin Osborne (ex- Gold Road Resources) leading the technical search and the corporate influenced Sam Pazuki, I am in no doubt that the mineral exploration will prove their strategy to be fruitful.
The rebranding is clearly a means of aligning the company name with its purpose for finding large economical deposits. The projects that is in the portfolio is the reason why "Mega" projects will be discovered. This is what I call a mineral province play to ensure the largest probability to discover economical deposit.
As the new drilling season starts to take shape, the next phase of the results will be highly anticipated from the company's shareholders. With B2 Gold as a shareholder, one has to recognised that B2Gold is not here for a slim chance of discovery. The positioning is well thought and the target company is selected for its vast portfolio.
Tune in and start putting your thinking cap on and do some good old fashion DYOR.
Chapters:00:00 Start
00:20 Introduction
01:06 All About AuMega Metals Limited
02:48 Is Cape Ray still the Main Story?
04:26 Is there more love for companies like AuMega now?
07:01 Fair valuation due to a bearish equity market.
09:37 The need for District Scale Potential.
10:57 What have been the learnings from your exploration activities?
13:37 Long term exploration programs create the value for shareholders.
15:58 Short-Term and Long-Term Prize
18:14 Taking Risks and Exploration Success
20:40 What is the direction for Gold ?
23:09 Why is there a disconnect between gold equities and the gold price?
25:20 What are the Exit timing for potential investors?
27:48 News Flow for AuMega Metals
29:48 Why invest in AuMega ?
30:55 Big Brother Influence for Large Deposit Discoveries.
32:36 Conclusions
Commodity pricing has a history for being volatile and it is especially susceptible to sovereign risks. The ups and downs of the mineral resources sector on the ASX is a direct reflection of the volatile commodity chart. Pricing of commodities are constantly evolving and retreating which makes the fortunes of ASX companies in this sector exciting and depressing, depending on which the investor's circumstances.
In this episode of Samso Insights, we look at Terrain Minerals Limited (ASX: TMX). We speak with Justin Virgin who is the Executive Director of the company. I came across Terrain Minerals at the 2024 RIU Conference in Sydney. What looked like a non-descript booth became an interesting proposition when we Justin explained to me the different views on their projects.
Terrain Minerals main story is the potential for a Gallium player who has been flying under the radar. The Gallium sector is small but lucrative. Figure 1 below highlight the bullish nature of the pricing and it is forecast to continue on that trend in years to come.
Figure 1: Gallium price chart. (Source: https://strategicmetalsinvest.com/gallium-prices/)
From an exploration point of view, the projects that Terrain have a grassroots and there is no hiding form the fact that there is a lot of work to do and there are also a lot of room for error. Investors who look at Terrain from rom a valuation point of view and measuring risk as from that angle will like the market capitalisation of the company.
Check out the Samso Insight conversation with Justin and make your own decision.
Samso's ConclusionTerrain Minerals is one of those companies that you literally take a "punt". Personally, I like the Gallium but I don't know what is good and what is bad in terms of numbers. At the time of writing this blog, the company has released the results from their latest drilling. The numbers for the REE look ok but not mind blowing but I do not know how to comment on the Gallium numbers.
This would be a great opportunity for readers to give Justin a call and get it from the man himself.
Chapters:00:00 Start
00:20 Introduction
00:50 Justin introduce Terrain
02:38 The Gallium Story
03:58 What Kind of results are expected?
05:10 Is Saltbush the main project?
06:48 The Terrain Minerals Projects
09:14 Why Terrain Minerals?
10:30 Conclusion
As the copper price continue to reach all time high status (Figure 1), compnaies such as QMines Limited suddenly comes as an interesting proposition. The resource is small but a recent Pre-Feasibility study is showing that the number could work. In this episode of Samso Insights, we have Andrew Sparke giving us a run down on what could be a copper producer in Queensland, Australia.
Figure 1: Copper price chart. (Source: Trading Economics)
The supply issue for copper has long been talked about and the market seem to have finally caught onto the nearing desperate nature of supply. The aging copper mines are facing rising cost and some of the major mines are also facing sovereign issues. To add to the supply issue, several developing mines are facing question on jurisdiction.
I like companies like QMines as they are always undervalued and are constantly facing funding issues. As the market tightens, these stories begin to get noticed and their valuation begin to move. This is not an endorsement of QMines in any way, as there are still hurdles that could be deal breakers for the company. My comment is merely an observation that has stood the test of time historically.
Check out the Samso Insight conversation with Andrew and make your own decision.
Samso's ConclusionQMines is a company that may offer investors an opportunity to get in on the copper run.
A rising commodity story that is still early in its journey with many unknowns of trivial hurdles or deal breaker hurdles. Andrew has explained how the story should work but as we know, he is the Executive Chair and his thoughts would deemed to be slightly biased.
That being said, my view is that one has to look at the options out there in the market place for a story that will fit the current narrative of "Need More Copper". QMines, assuming that the numbers continue to stack up will be one of the ones on my watchlist. Fortunately for us punters, the low valuation of companies due to a bearish sentiment in commodities has somewhat naturally reduced our risk.
As for the copper price, if it is to be believed, has a lot of legs to go. Some narratives have gone further and put the copper price at level much higher than Figure 1. I agree that it will go higher but I don't have an understanding on how high.
There are no doubts that the old copper mines are facing rising costs and this is not a small margin. One must remember that if household living expenses are stated to have increased be in the 30% mark, the increase of 30% or more in a mine will make a big difference. I would say that the cost of mining any commodity at the depths that these old copper mines are at will be significant.
At the end of the day, DYOR is the key to any decision making and one has to keep a keen eye on the copper space. When you think about what the implication will mean, the opportunity for shareholder value adding is enormous.
Chapters:00:00 Start
00:20 Introduction
00:57 Andrew introduce QMines
02:45 Going through the details of PFS
07:05 The upside of Mt Chalmers.
09:36 Any Metallurgical Issues?
11:25 The Products
11:37 The Pyrite Value Story
12:57 Where is the disconnect with value and share price?
15:19 The issue of using Copper Equivalent number.
17:30 The Pros and Cons of taking a position in QMines.
23:17 The Copper Market
26:06 Why QMines?
20:57 Timing for Investors Exit?
27:43 THE CAPEX Advantage
28:45 Conclusion
Multi-element anomalism coincident with geophysical targets supports the concept of a new Mineral System Province at the Highway Project in South Australia.
ASX Release – 22nd May 2024
Highlights
Taiton Resources Limited (“T88”, “Taiton” or “the Company”) is pleased to announce that all samples from the recently completed UltraFine (UF) soil sampling program in March have now been returned. The completed soil program was undertaken across three prospects; Garfield, Pluto and Snoopy, at the Highway project (Figure 1).
The program consisted of a total of 1,197 samples (ex QAQC samples) and was Taiton’s first pass field-based assessment of selected prospects identified primarily from geophysical datasets.
A recent litho-structural interpretation of the Highway project highlighted the potential for multiple mineralisation styles derived from intrusive activity. These mineralisation styles include epithermal gold, molybdenum porphyry, and Iron-Oxide-Copper-Gold (IOCGs).
Figure 1. Location of prospects within Highway Project.
The UF program was successful in identifying multi-element anomalism across the three prospects and provide further support for the various mineralisation styles Taiton is pursuing within the Highway project. Due to the early stage of exploration Taiton is not limiting its search to one mineralisation style.
In my first conversation in June 2023 with West Cobar Metals Limited, I noticed the amphibolite basement for the Salazar project and asked how this could affect the mineralogy of the project. With nearly 12 months of work since that time, the benefits of the Newmont deposit are now coming to light.
In this episode of Coffee with Samso, Matt Szwedzicki shares with us the potential multi-commodity aspect of the Newmont deposit. The company has come a long way in substantiating its view on the new strategy in bringing light to the Titanium and Scandium part of the flow chart.
This is an unfolding story and credit goes to the management for looking at the alternative value of the Newmont project. The increasing tenure of the project means that the protection of the potential value adding process is now in safekeeping.
The potential extension of the amphibolite is now for West Cobar Metals to discover and if the Scandium and Titanium strategy holds ground, the shareholder value will be very interesting. Time will tell, but at least it is up to the company to find it.
Samso's ConclusionI have been fascinated with the West Cobar story as it is the only Rare Earth project that I have come across that has a amphibolite basement, or rather, one that has a non-granitic basement. This stands out even more when you know that the Esperance region does not appear to have an equivalent.
When I first talked to the company, I posed the question to management, what is the significance of the amphibolite? Does it come with other commodities (at that time they had a HPA resource sitting on top of the Newmont project)?
There is now a pathway for the company and it will be interesting where this leads to in terms of shareholder value. The scandium story is very interesting as I have had some experience of that sector nearly a decade ago.
If you watch the video and listen to Matt when he talks about the Scandium pricing mechanism, it is a revelation. For once, we have a market that is priced so high that it needs new supply to bring the pricing down so that it can create more supply and more use. It is not a matter of lack of demand, but that the sector needs supply.When you think about what the implication will mean, the opportunity for shareholder value adding is enormous.
Chapters:00:00 Start
00:20 Introduction
01:23 Update from Matt
01:43 More ground for Salazar
01:56 An updated exploration target
02:22 Realisation that Newmont is different
02:40 The Titanium Factor
02:59 Titanium Exploration Target
03:06 Presence of HPA
03:30 Flow Sheet
04:52 Titanium Mineral Study
06:05 What about this Scandium in Salazar?
07:32 Is Newmont more of a Critical Minerals project as opposed to a Rare Earth project?
09:02 Is there enough volume for the other commodities to be economical?
10:47 What triggers should investors look for to take a position in companies like WC1?
12:55 All about Scandium
14:40 Why is Scandium exciting?
15:43 The high pricing of Scandium.
16:41 Supply bottleneck may be changing
17:50 US Defense Department looking out for Scandium
18:24 Solid oxide fuel cell use of Scandium - green fuel transition
19:13 Where will the new mines come from - reasons why Newmont is the front runner
19:46 Newmont may have a potential positive metallurgical pathway
21:17 High grade vs. normal grade of Scandium
22:48 News Flow
24:43 A Natural pivot for WC1
25:49 Last words from Matt
26:57 Conclusion
Venture Minerals Limited (ASX: VMS) is now finalising a drilling program to infill the Jupiter project as they work to build a maiden JORC resource for the project. It is also now brining management to site to see for themselves the ease of having a potential mining proposition.
Managing Director, Andrew Radonjic and the Chair, Mel Ashton is sharing with us their thought on this episode of Coffee with Samso. There are no revelations but a reinforcement to investors and shareholders that the potential for a mining operation will come with Tier 1 infrastructure and potential partners or off-takers.
Remembering the Reasons to Focus on the Jupiter REE project.The fanfare on the Jupiter Rare Earth project is all about the ASX release by Venture Minerals on the 29th November 2023 (Jupiter Delivers over 7,000 ppm TREO assays from Maiden RC Drill Program) and the second round of results that was released on the 8th March 2024 (Jupiter Drilling Continues to Deliver Broad High-Grade REE Mineralisation including a Record NdPr Intersection of over 5,000 ppm). The investor interest that followed is now a
The share price has been very buoyant and when taken into context of the Rare Earth sector in general, Venture Minerals is doing very well. There is a keen interest in the market to see where this story will end up.
Check out the conversation with Andrew Radonjic below: Samso's ConclusionIn the lead up to the trip to the project, Andrew Radonjic had been taking a position that the location of the project could be a game changer and I have to say that it does make sense. The highway is within 2km from the edge of the tenement boundary, there is a gas
Chapters:00:00 Start
00:55 Introduction to Mel Ashto3
00:53 Updates on Jupiter
04:34 The Potential Size of the Jupiter Resource
08:55 Potential Strategy for Jupiter Project
11:52 Could there be other High-Grade "Cores"?
17:54 Discussion on Metallurgy
20:52 Location, Location Location
23:56 How can Venture take advantage of the REE Market?
25:57 What would the Exit look like for potential investors?
26:58 View on the Rare Earth Market over the next 12 months?
34:41 News Flow
38:00 Tin
39:11 Conclusion
As we move into the generation of clean energy, the topic of uranium mining is brewing in Australia, especially in Western Australia. The only state and territory in Australia where uranium can be mined is South Australia and the Northern Territory. The Western Australian government took a stance a few years ago to ban the mining of uranium and this has taken its toll on the industry. However, it does seem that the sentiment to overturn that decision is now softening.
The mining industry in Western Australia, by far the biggest player in Australia, is facing one of its biggest changes in 2024 and the change may only be starting. The nickel industry is hemorrhaging with the rise of the Indonesian nickel industry. The dominating nature of the nickel industry in Indonesia has taken the world by storm and the result for Western Australia and the rest of the world is that their own mines are now facing closure and a bleak future for those that are still in operation. The biggest player in the industry in Australia is BHP's Nickel West, which is certainly looking at closure and the loss of jobs and income for Australians.
2024 is absolutely turning out to be the year of changing fortunes for Australia in terms of being the commodity mecca of the world. There are real challenges that are not only restricted to nickel (almost a done deal), but there are also negative sentiments towards lithium, rare earths and finally iron ore.
The misfortunes in turn could create the necessary heat to make the Western Australian and in large part the Federal government bodies look seriously at uranium as an alternative mining breadwinner.
The World According to Jonathan FisherJonathan Fisher is the CEO of Cauldron Energy Limited (ASX: CXU) and this Samso Insight discussion is a good introduction to the challenges and the deep misunderstanding of the general population to uranium mining. Jonathan comes from a long history within the nuclear world and in this Samso Insight conversation, he is simply stating facts to explain the debate for the mining process and not about the building of nuclear power plants.
Jonathan just wants the myths to be taken out of the discussion and I agree with him that the conversations out in the world have been wrong and largely made erroneously to be facts.
Samso's ThoughtsThere is no doubt in my mind now that the mystery of Uranium Mining and the Nuclear Energy debate is shrouded by a lack of understanding and the perception created by the anti-mining fraternity (based on personal agendas). The narratives that Jonathan Fisher and all the other proponents for Uranium Mining are made simply to make right the wrongs of the loudest critic.
One can argue based on personal preferences but the greater good for uranium mining and hence the use of nuclear energy cannot be made by the few, but it must be made for the greater good of the whole decarbonisation outcome for planet Earth.
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DisclaimerThe information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints.
Read full Disclaimer.
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About SamsoSamso is a renowned platform that empowers dedicated investors to transform their investing journey. With privileged access to a wealth of up-to-date industry knowledge and advancements spanning various business sectors, you can stay informed and updated constantly. Engage actively with esteemed CEOs and influential thought leaders who are shaping industries, as they share valuable insights, unveil success strategies, demystify commodities, and predict market trends. Combined with your own due diligent Do Your Own Research (DYOR), this may guide you to make an impact on your financial future.
Coffee with Samso Experience
Venture Minerals Limited (ASX: VMS) has an extremely well-rounded portfolio of projects and the inception of the Rare Earth project a couple of years ago has worked extremely well for the company. The Rare Earth sector may have come and gone for the ASx but it is a breath of fresh air to see the technical success of the Jupiter REE project.
Anyone who has been following the ASX REE sector recently will know very well the bearish tone but those who have been on the Venture Minerals wagon, will think differently. You could put Venture Minerals on the top of the list for generating the most interest in the small-cap mineral explorers list.
The interest in Venture started with the ASX release on the 29th of November 2023 (Jupiter Delivers over 7,000 ppm TREO assays from Maiden RC Drill Program) and the much anticipated second round of results was released on the 8th of March 2024 (Jupiter Drilling Continues to Deliver Broad High-Grade REE Mineralisation including a Record NdPr Intersection of over 5,000 ppm) which generated another rush on the share price.
Figure 1: The Venture Minerals Limited (ASX: VMS) share price. (Source: Commsec)
In this episode, Andrew Radonjic gives us an update on the Jupiter Rare Earth project and we discuss why he feels the project stands out from the crowd.
Samso's ConclusionThe Samso platform has had the majority of the clay rare earth story on the ASX for the last couple of years. It has been a great journey from the beginning to now where I could effectively call a mature understanding of the industry. If we are all on the same page, the understanding now is all about the metallurgical results, and the chemistry of extraction.
In some way, we all know that the range of results from all the other clay REE players has been pretty consistent. There have not been too many outliers on the good or the bad end of the spectrum. If we consider this thought, the metallurgical results for Jupiter will be within range and there are some similarities to Mt. Weld, then Venture may have found themselves a project that could be more than interesting.
As Andrew pointed out in the end, it is all about the location. The drilling results are on the top end of the scale, the location is in proximity to Mt. Weld and the plant by Iluka, the metallurgical results which are still outstanding will most likely come within range or better and there are no logistical nor administrative obstacles in sight. With all that in mind, the Jupiter project must surely become a jewel in the DYOR category for ASX investors wanting an REE play in their portfolio.
I encourage you to watch and take notes because as I have always mentioned on the Samso platform, the one economical project in many non-economical projects that are in the market comes once in a while and if you can take the risk, do big-time DYOR.
Chapters:00:00 Start
00:20 Introduction
00:53 Updates on Jupiter
02:46 Discussion about the next drilling phase
04:04 What makes Jupiter stand out?
09:25 VMS in the current market
15:44 About the metallurgy
21:06 What could lift the REE market?
23:53 For investors looking to position themselves in VMS
29:01 Other VMS projects
32:45 News flow
35:59 Conclusion
The Rare Earth story is now reaching a stage where it is now all about the chemistry. Most followers of the sector are now assuming and accepting that companies will report minerals resources that will be large enough to sustain any operations.
What is unknown is the cost of the chemistry that will bring in the revenue and profits at the end of the exercise. I think in this episode of Coffee with Samso, Brett Hazelden makes a very compelling case for the OD6 Metals story. There is a lot of confusion in the market in terms of what is the end game for these clay rare earth projects.
Brett is a metallurgist and he comes from experience when he talks about the downstream process. For those viewers who are pondering about the Rare Earth sector, this is a must watch episode of Coffee with Samso.
Samso ConclusionAs many of you who have followed the Samso platform, you would have been watching a lot of Rare Earth stories lately. There is no doubt that the rare earth industry is very complicated and confusing which is primarily being fuelled by a cloud of uncertainty on the future. This is something that I had as well but you would have heard me mention this very often, recently, that the trip to the rare earth conference in Canberra has pretty much cleared it up for me.
My optimism that was derived from the conference is not an indication that the sector is going on a bull run. My thoughts are that the reality of a strong future for the demand of rare earths will be very profitable for the companies that stick to their work and are able to sustain their path with funding.
The ability to attract funding over the period is critical. In some ways, you could look at the this time of the market as a reset of the rare earth story, in terms of valuation. This is the time to do your DYOR. For all investors, if the commodity boom is around the corner and the rare earth metals are part of that run, then you would want to do some good research now.
Chapters:
00:00 Start
00:20 Introduction
01:03 2023 recap
03:32 Understanding the chemistry
07:14 Lowering the costs of production
09:45 Discussion about ESG
11:27 What is driving the economics of these clay projects?
15:46 Difference between Australia and South America - grade and processing route?
19:38 Takeaways from the Canberra REECon
26:16 What’s on the cards for 2024?
32:03 Discussion about the rare earth market price
35:14 News flow
36:04 Final thoughts
39:46 Conclusion
The podcast currently has 294 episodes available.