The Perth-based Meteoric Resources NL (ASX: MEI) is a metals and mining sector company engaged in the exploration of mineral tenements across Australia and Canada. Its key interest lies in platinum, gold, copper, cobalt, diamond, iron, nickel, and palladium properties.
At the beginning of trading on March 15th, 2019, the company called a trading halt for its securities on the ASX to release two important announcements that were immediately shared with the market. Following the ASX releases, the securities of the company continued trading. At the end of the market session, the MEI stock closed at AUD 0.013, shooting up by 18.18% indicating an intra-day gain of AUD 0.002 with ~ 3.46 million shares traded.
The first announcement entailed the results received from the recently completed first-ever diamond drilling carried out at the Company’s high priority target Joyce Cu-Co Au Project, situated in West Ontario, Canada. The drill program was completed in January 2019 by Chibougamau Diamond Drilling Company under the supervision of project partners Orix Geoscience and comprised a total of four holes (492 metres). It targeted historic trenching results containing values up to 0.3% Co, 11.0% Cu and 8.07 g/t Au, along with coincident airborne EM and magnetic anomalies directly associated with trenching results. Besides, drill hole JR-19-04 intersected 1.845% Cu over 0.61-metre from 50.19-metre downhole.
However, the results achieved are not considered too validating and supportive to the encouragement that the company received from surface sampling, specifically for the gold and cobalt values which are low. For the future exploration programs, the main focus will be the coincident EM-magnetic anomalies lying beneath the thin cover in the east.
The initial eight-hole drilling program for 500 metres targeting zones immediately below massive sulphide outcrops had commenced earlier in the year with the drilling rig mobilised to the site on January 11th, 2019.
Simultaneously, the financial report for the half-year ended December 31st, 2018 was released as the second announcement. As per the results posted, the Group posted a net loss after tax of $ 1.073 million, down on $ 5.499 million recorded in the prior corresponding year (pcp) ended December 31st, 2017. Besides, the Group’s net assets amounted to $ 2.109 million as compared to $ 3.129 million as of June 30th, 2018.
The operating activities resulted in massive net cash outflows of $ 1.238 million majorly due to payments for exploration & evaluation expenditure ($ 848.6k) and payments to suppliers, consultants and employees ($ 415.2k). The investing activities contributed $ 12,839 to net cash inflows. At the end of the period, the net cash and cash equivalents stood at $ 2.073 million at the back of $ 3.299 of cash million available at the beginning of the period.
To date, the company’s Canadian project portfolio comprises seven cobalt projects- six located in areas in Eastern Ontario historically known for silver and cobalt production and one in West Ontario, targeting cobalt-copper-gold mineralisation. In Australia, Meteoric Resources is part of the Webb Diamond Joint Venture (18% interest) with Geocrystal Pty Ltd (82% interest) for the evaluation of a large 400-km2 kimberlite field; and holds interest in the Warrego Project for copper-gold exploration and also a Babbler licence over EL30701 for gold deposits located 34 km ESE of Tennant Creek.
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