Two Mining Stocks With Quarterly Update: LEX And MAU

Two Mining Stocks With Quarterly Update: LEX And MAU

Lefroy Exploration Limited (ASX: LEX)

On 28th January 2019, Lefroy Exploration Limited released its quarterly report for the period ended 31 December 2018. Lefroy Exploration is engaged in gold exploration on two significant projects: Lefroy Gold project and Lake Johnston Project. Lefroy Gold Project, located South of Kalgoorlie, consists of Eastern Lefroy and Western Lefroy with highly prospective gold discoveries. Lake Johnston Project, adjacent to Emily Ann and Maggie Hays Nickel deposits, is characterized by potential gold and nickel deposits.

Lefroy reported $1.56 million used in operating activities (as compared to $0.84 million in Sept quarter), $8K used in investing activities (as compared to $6K million in Sept quarter) and $2.43 million from financing activities (with no flows in Sept quarter). The company maintained $1.39 million in cash and cash equivalents for the quarter. Total estimated cash outflows of $500K were recorded, including $230K on exploration and evaluation operations.

For the December quarter, Lefroy reported completing a ten-hole Reverse Circulation drilling program at the Lucky Strike Prospect within the Eastern Lefroy Gold Project, where multiple drill intersections confirmed a shallow oxide gold zone in an upper BIF unit and a new primary position in the lower BIF. Noteworthy gold intersections from Lucky Strike include: – 8m at 3.46g/t Au from 48m in LEFR087 incl. 2m at 5.08g/t from 49m, 2m at 6.22g/t Au from 32m in LEFR088,12m at 2.37g/t Au from 96m in LEFR098 incl. 3m at 6.35g/t Au from 101m.

Aircore drilling at Havelock, south of Lucky Strike, has demarcated new gold mineralization trend within BIF that has a 3Km open strike length. At Hang Glider Hill, a gold trend over 2Km of the strike has been identified in the northwest region of the Eastern Lefroy gold project. Airborne and ground-based geophysical surveys were continued at the Western Lefroy project, managed by Gold Fields Limited. Besides, the company signed an Asset Sale Agreement to sell the whole of its ownership interest in the Murchison Project.

The shares of Lefroy Exploration last traded at A$0.165 as on 25 January 2019 with a market capitalization of A$13.36 million. LEX has offered a negative return of 8.33% over the last six months.

Magnetic Resources NL (ASX: MAU)

On 28th January 2019, Magnetic Resources NL released its quarterly report for the period ended 31 December 2018. Some of the projects of the mineral exploration company include Magnetic Resources Leonora–Laverton Gold Projects, Laverton — Hawks Nest Project, Laverton — Mt Jumbo East Project, Leonora — Mertondale Project, Leonora — Christmas Well Project, Leonora — Mertondale Project and Birthday Patch Project. The company still holds stakes in prospective iron ore deposits with the focus on Mt Joy and Kauring.

Magnetic Resources reported about being $1.74 million used in operating activities (as compared to $800K million in Sept quarter), $1K used in investing activities (with no flows in Sept quarter) and $4.40 million from financing activities (with no flows in Sept quarter). The company maintained $3.22 million in cash and cash equivalents for the quarter. Total estimated cash outflows of $1.28 million were recorded, including $1000K on exploration and evaluation operations.

A total of 276 holes for 5324m were drilled, and 514 soil samples were collected during the December quarter. In the Laverton region, a total of 60 RC holes for 2940m were drilled, and 514 soil samples were taken at the Hawks Nest project, and 11 RC holes for 652m drilled at Mt Jumbo East. In the Leonora region, 11 RC holes for 610m and 194 RAB holes for 1122m were drilled at the Christmas Well project. The Company signed an agreement with Northam Iron Pty Ltd regarding the sale of the Company’s iron ore assets, providing for further payments totalling $1million and a sliding scale royalty with payments starting at $0.25/t for a sale price of $80.00/t or less. Post that for every increase in the sale price of $10.00/t the royalty rate will increase by $0.25/t.

The shares of Magnetic Resources last traded at A$0.185 as on 25 January 2019 with a market capitalization of A$35.33 million. MAU has offered an impressive return of 42.31% over the last six months.


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