Amaroq, Arc, Rome & Helix...
...Assays are arriving, and fingers are crossed!
Good Morning Team and Welcome to Thursday.
While we wait for the Chancellor to announce her cunning plan to market tax rises as a Growth Budget, I want to briefly highlight the assays about to land at four companies.
For those invested, this is high stakes stuff.
Let’s dive in.
Amaroq Minerals…
…has now completed its 2024 exploration field season in Greenland (where it remains the largest strategic landholder in the country). For reference, operational expertise means AMRQ will itself likely become the drilling contractor of choice for all Greenland landholders - and those in need of a JV will naturally choose the business as its partner.
I interviewed CEO and scholar Eldur Ólafsson at an investing event several weeks ago and the man exudes confidence.
The 8,601-metre exploration programme has been completed ahead of schedule - including first drilling of the high-grade Nanoq gold target alongside the historic Josva copper mine:
Gold Exploration
Nalunaq Gold Project (100% Ownership)
Drilled 2,895m (11 holes) targeting the Target Block Extension Zone.
Reassessed and resampled historical drill holes, including the newly discovered 75 Vein; collected surface samples from the Main Vein and 75 Vein.
Exploration laid the foundation for an underground drill program and the updated Mineral Resource Estimate; expected shortly.
Eagle’s Nest Gold Target
Expanded exploration to Eagle’s Nest, located 30km north of Nalunaq.
Sampling returned grades up to 34g/t Au, with potential for a high-grade orebody.
Proximity to the Nalunaq processing plant (construction almost completed).
Just look at that shiny Gravity Circuit and Ball Mill installation:
Nanoq Gold Project
Completed scout drilling programme; potential high-grade orogenic gold system (130m across two holes).
Previous channel samples showed grades up to 175g/t Au over 0.8m.
Exciting potential for major high-grade resource development.
Strategic Minerals and Other Exploration
Stendalen Copper-Nickel Project (51% Ownership through Gardaq JV)
Completed 4,773m of remote exploration drilling, supported by a 40-person remote camp.
Downhole electromagnetic survey completed, with assay results expected soon.
Potential magmatic sulphide bodies identified from geophysical anomalies.
South Greenland Copper Belt Exploration
Conducted geological reconnaissance and drilling across the 120km-long South Greenland Copper Belt.
Spanning four exploration licenses and one pending application.
Targets include copper skarn, copper/molybdenum porphyry, and epithermal systems; geochem results expected soon.
Josva Copper Mine
Initial drilling (212m across two holes) at the historic Josva copper mine.
Aimed to confirm downdip and along-strike continuity of high-grade copper skarn system.
Target North (Copper/Gold)
Completed scout drilling (501m across two holes) at the intermediate-sulfidation epithermal system. Core samples currently undergoing assay testing.
VP Exploration James Gilbertson enthuses:
‘We are incredibly excited by the progress we've made across our portfolio this year…This work will help us to both expand our Nalunaq resource and unlock the high-grade potential of Nanoq…Perhaps most exciting, is our growing understanding of the scale and mineralization diversity within the 120km-long South Greenland Copper Belt. The belt spans from deep copper skarn systems to epithermal system, and we are only beginning to scratch the surface of its true potential.’
As a reminder, first gold is to be poured this quarter, the MRE upgrade for Nalunaq is expected imminently, and the strategic minerals exploration arguably has a decent shot at discovering the next Voisey’s Bay.
Investors are soon going to be treated to masses of assays (if ALS can ever sort out their global backlog!). Beyond this, back of a fag packet maths indicates the company will be printing money when production starts to ramp up in the middle of next year.
For more from me on Amaroq, consider the in-depth investment case, or the tl;dr version for those short on time.
AMRQ is also putting out some snappy marketing videos - catch them on the company’s Twitter feed.
Arc Minerals…
…is about to go big or go home. I am reliably informed that assays from the Virgo licences in Botswana (which form the ‘guts’ of the deposit) are very close to being announced.
It’s now common knowledge that both MMG and BHP are interested in an acquisition - MMG as its massive investment into Khoemacau means buying more potential ore is an obvious strategic choice - and BHP because the major is already doubling down with nearby Cobre.
When assays of the 562kg sent to ALS by snail courier come in over the next few days, keep an eye out for any silver results. Scout drilling returned up to 3.65% Cu and 24 g/t Ag in one sample back in January - and while all eyes are focused on copper, Khoemacau is a copper-silver mine.
BHP and Cobre are also exploring for both copper and silver.
What we really want to see is copper/silver grades that are similar to the Khoemacau licences surrounding Virgo as this will be conclusive proof that we have the same geology. As a reminder, initial indications are very promising.
Then it’s off to the races.
And drilling will continue until a suitable offer is received.
In Zambia, we’re in the ‘endgame’ now - as far as 2024 in concerned. The rainy season will be upon us shortly; but assays from the Anglo JV will also be landing shortly.
More widely, I believe that Anglo’s wider plans for Zambia will be revealed next month (before BHP can make its renewed bid at the end of November) - and it would not surprise me to see the Royal Visit at the same time.
I’ve already speculated on Anglo’s plans here, though it’s also worth noting that exploration licences adjacent to the JV’s are up for grabs.
For someone about to make a grand entrance?
For the wider ARCM investor case, click here.
Rome Resources…
…is about to motor. I recently covered what I consider to be a truly exceptional investment case for an early-stage explorer, but this morning’s investor call has put any lingering doubts to bed.
Rome is about to engage in active talks with a well-known strategic investor to take perhaps a 10% or 20% stake in the company. This should help both to ensure the already well-financed company retains a financial edge, but also to create some competitive tension when an asset sale comes (as, at present, Alphamin may think it can make a low ball offer).
Spoiler - it can’t.
As data released thus far indicates mineralisation length is more than sufficient, the only question is on grades. Material is currently being assayed by ALS in Johannesburg (perhaps adjacent to the ARCM material).
It may even be the same technician assessing the results!
Anything similar to Alphamin grades (i.e. world-leading), and it’s payday. Bear in mind, Bisie North may even be larger than Bisie - and there’s all sorts of metals at play other than tin.
There will be enough assays within the next month to make an educated guess at what the maiden resource estimate might be - and then the real thing within a few weeks thereafter.
Helix Exploration…
…remains in my view the best helium play for 2024 (though it will have competition with Pulsar when the rival re-enters Jetstream #1).
After some Mowry shale issues (now resolved) at the Clink #1 well at the Ingomar Dome Project on the Montana Helium Fairway, production casing has now been run to some 8,130ft and cemented.
The company will now run cased-hole wireline prior to perforating target zones for testing, with samples of any gas recovered sent to an external laboratory for gas composition analysis.
Helix plans to test multiple formations from the bottom of the hole upwards, noting that:
‘If initial results of a perforation are positive the Company will report gas composition to the market and perform an extended well test on the interval before moving on to the next horizon.’
As a reminder (though this is a drastic oversimplification) there are four formations to test for both helium and hydrogen: Amsden, Charles, Flathead & Pre-Cambrian.
Chairman David Minchin notes:
‘The initial findings in the Amsden, Charles, and Flathead formations look very encouraging, and I am optimistic about the potential that these formations hold. We look forward to updating the market with first gas to surface.’
And then there’s Rudyard - where an announcement must be imminent.
The bottom line
It’s worth noting that these companies have differing levels of risk vis-a-vis their investment case & market cap.
Amaroq can (and will) hit some superlative results and also the occasional duster. That’s the nature of mass-scale exploration by a mid-tier titan.
Arc’s investment case is really the circa $90 million JV with Anglo American, but the near-term share price will be hugely affected by these Botswana assays.
Rome is drilling two prospects (Mont Agoma and Kalayi) with four diamond drill rigs between them. There has to be decent results here as while the company is well capitalised, the investment case hinges on these twin prospects.
Helix does have another bite of the apple in Rudyard, but the truth is that expectations for Ingomar remain heightened; this is reflected in the share price action of the past few days. Success will see all-time-highs.
And I am wishing success for all four!
On a personal note, I am coming close to being overwhelmed by daily correspondence - I will get back to you, no matter the query - but if it’s been more than 24 hours, please send a reminder!
Have a great day.