King River Resources Limited (ASX: KRR) is riding high on positive investor sentiments, soaring by 16.667% during today’s trading session, driven by recent progress made by the company in relation to Prefeasibility Study undertaken on its 100%-owned Speewah Specialty Metals (SSM) Project, located in the East Kimberley of Western Australia (WA).
This morning, the company released an update on its SSM project, wherein it highlighted the recent developments it has made in some areas other than the metallurgical testwork. The PFS study conducted on the SSM Project is currently examining the optimum process route to extract vanadium pentoxide(V2O5), titanium dioxide (TiO2), iron oxide (Fe2O3) and other high-value commodities.
In terms of additional drilling on the existing mining lease, the company informed investors that it has recently commenced a 31-hole (for 1,600m) Reverse Circulation drill programme on an existing Mining Lease (M80/267) at the Junction prospect located in close proximity to the existing vanadium resources.
Location of the Junction Prospect and Mining Leases at Speewah
(Source: Company Reports)
The company has been sending samples to the assay laboratory, to be reported in due course. It is expected that the definition of additional resources on a Mining Lease could help accelerate the development in the future.
The company further pointed out that its Como Engineers are currently seeking indicative pricing on other sulphuric acid plants suitable for the SSM Project. In order to effectively deal with the generated waste, the company is engaging a Tailings storage facility expert to develop the most environmentally sustainable strategy to deal with the waste.
It has been speculated that around 70% of the mined material will be rejected at the beneficiation stage and may be replaced back into the mined pit. The magnetite gabbro host rock to the mineralisation has very low sulphide content and very low Thorium and Uranium elements.
To shed some more light on further resource amendment, the company informed that it is engaging with independent professionals to report Alumina (Al2O3) and Magnesia (MgO) in its database in order to include these values in the PFS.
As part of the PFS, the company is also undertaking a global marketing study of the suite of products that the company is targeting.
After completing the Prefeasibility Study, the company is planning to use the publication of technical and financial information to identify appropriate partners that are interested in jointly funding a Definitive Feasibility Study. It is expected that DFS would include scaled up pilot plant programs, alternative production scale scenarios and pre-development applications, helping the company in future developments.
After completing the DFS, the study partners will jointly share ownership of all the technical knowledge surrounding the project. Further, they will have an option to acquire a majority of direct equity in the Specialty Metals Project by providing future funding.
With recently reported encouraging initial HPA precipitation test results and excellent initial precipitation efficiencies of iron oxide and titanium dioxide products, the SSM Project now holds a significant value for the company. Till-now, the Board is pleased with the progress of the Prefeasibility Study at SSM Project and is currently formulating the best commercialisation strategy for the development of the project.
Mt Remarkable Project Update
Besides SSM project, the company is also progressing well with the development of its Mt Remarkable Project, which is located 200km southwest of Kununurra.
Last month, the company’s wholly-owned subsidiary, Whitewater Minerals Pty Ltd was granted an additional Exploration Licence number E80/5133, which surrounds the Mt Remarkable discovery tenement number E80/5007, as depicted in the figure below.
Map showing newly granted tenement E80/5133, existing Mt Remarkable tenement E80/5007 (Source: Company Reports)
Through sampling on both E80/5007 and the newly granted E80/5133, the company intends to identify additional mineralised vein sets/structures prior to the commencement of RC drilling, which is scheduled to take place in September quarter.
The company has already completed a detailed review of the 2018 exploration and drilling programs at the Mt Remarkable Project, with an emphasis on understanding the nature and controls on the epithermal style of gold mineralisation.
With its 2018 Trudi Main Zone grid drilling campaign, the company has already identified new high-grade gold mineralisation areas, increasing the value of the Mt Remarkable Project. It is believed that the new high-grade gold zones are likely to have distinct geochemical and alteration signatures/halos. In late 2018, at the eastern most edge of the Trudi grid, a new high-grade gold zone (best result of 4m @ 19.88g/t Au including 1m @ 69.30g/t Au – KMRC194) was discovered, confirming the company’s belief that the multiple high-grade shoots exist at Trudi and are yet to be discovered.
The next phase of drilling will test the following targets:
- Trudi Main
- Trudi Main Deeper
- Trudi East Extension
- New Veins
- Targets generated by 2019 reconnaissance.
During the 2019 March quarter, the company used $463,000 of net cash in operating activities, which included $323,000 spent on exploration and evaluation and $141,000 on administrative and corporate costs. At the end of the March quarter, the company had cash and cash equivalents of $3,682,000.
As at 31st December 2018, the company had current assets of $4,270,733 and current liabilities of $131,541, with total net assets of $18,697,235.
At market close on 27th June 2019, the company’s stock was trading at a price of $0.028, up 16.67%, with a market capitalisation of circa $29.73 million. The counter opened the day at $0.026, reached the day’s high at $0.029 and touched a day’s low at $0.026, with a daily volume of ~3,380,226, significantly more than annual average volume of 1,662,247 (as per ASX).
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