Assessing Victory Mines’ Bonaparte, Bolivian Tin and Laverton Assets and Global Scenario

  • Dec 24, 2019 AEDT
  • Team Kalkine
Assessing Victory Mines’ Bonaparte, Bolivian Tin and Laverton Assets and Global Scenario

Based in Perth, Western Australia, Victory Mines Limited (ASX:VIC) is an exploration company with projects spread across Western Australia and New South Wales. With principal activities involving project acquisition, mineral exploration and development, Victory Mines has 4 highly prospective cobalt tenements with significant leverage to scandium in New South Wales and Western Australia.

For more project details, do read Victory Mines’ Cobalt and Scandium Projects with Market Opportunity

Other metal projects of VIC apart from cobalt and scandium are mainly focused on copper, nickel, zinc, lead and tin. These commodities’ price post-2016 has shown upward trends, majorly nickel followed by copper, zinc and tin as shown below.

Commodity Price in USD/Metric Ton

Source: International Monetary Fund

Bonaparte, Bolivian Tin and Laverton Assets

VIC holds 100% of three base metal projects, i.e. Bolivian Tin, Laverton and Bonaparte projects acquired in 2014, 2017 and 2018, respectively.

The Bolivian mining projects were obtained through the acquisition of 100% of the issued capital of South American Tin Limited, which held 80% of the mining rights with remaining stake owned by the local mining cooperatives.

Laverton projects were acquired via a Tenement Sale Agreement with Empire Resources Ltd (ASX:ERL) under a cash consideration of $ 2,000 and 2% royalty payment on all metals produced within the tenement.

Bonaparte tenements were acquired under a deal involving a cash consideration of $100,000 to vendors and the issue of 20 million fully paid ordinary shares. The acquisition was valued at $ 904,500 and involved the issue of ~ 10 million bonus shares to the vendors on the performance milestone achievements i.e.

· Milestone 1: 5 million shares upon confirmation of a JORC probable reserve of 10 million pounds at 10% Cu or Zn or Pb equivalent

· Milestone 2: 5 million shares upon approval of a JORC probable reserve of 20 million pounds at 10% Cu or Zn or Pb equivalent

Bonaparte Project

The Bonaparte project is located ~ 70km north of Kununurra, Western Australia. It features high-grade, zinc-lead mineralisation with rock-chip assay results of up to 28% lead and 43% zinc. Geochemical anomalism of Zinc-Lead ± Copper found to be associated with syn-sedimentary normal faults like Lennard Shelf MVT style deposits.

The company has started the ground gravity survey program of ~ 100km2 along with the Redbank and Martins Gossan prospective areas and structural features defined from an EM survey completed in 2010 by a previous explorer.

A new copper gossan was discovered with a value of 15.95% Cu, 9 g/t Ag and 0.14% Zn, while previous sampling of rock chip resulted values of up to 53.8% Pb, 8 g/t Ag and 39.1% Zn at Redbank.

During FY19, VIC undertook thorough desktop reviews of the project along with an analysis of historical exploration and known geology. After the review, the company decided to relinquish tenement E80/4964 and partially surrender E80/4901. For the remaining ground, the company decided to formulate an exploration-drilling program, while looking for a strategic investor to form a joint venture to develop the Bonaparte project.

The previous gravity survey has verified there are 14 specific targets for copper anomalism that reconcile with historic rock-chip samples.

Bolivian Tin Project

VIC secured eight tin tailing deposits near Llallagua town of Potosi Department in southwestern Bolivia with an exploration target of 55.05 - 60.65 Mt @ 0.39 to 0.41% Sn.


During FY19, the company reviewed the Bolivian Tin Project and established the data along with an investor presentation. VIC has planned to sell this data to a third party interested in developing the projects or entering some other form of commercial arrangement, rendering economic return concerning the project.

VIC has not ascribed any value to the Bolivian asset in financial statements, and this is done in situations where the company does not hold any tenements or equivalent mineral rights concerning the project in Bolivia.

Laverton Project

Laverton project is located ~20km northeast of Laverton in Western Australia. VIC immediately planned a geochemical soil sampling program after the acquisition of E38/3075 tenements to check the previously defined anomalous areas on a 200 x 25m pattern or to sample new areas. For the same, a total of 758 samples were collected out of designed 810 samples due to the rainy weather affecting access to one area.

Several Cu, Ni and Au anomalies were identified across the project area: -

· Ni anomalies up to 1.25km in strike and 350 metres in width

· Cu anomalies up to 1.25km in strike and 250 metres in width

· Au anomalies up to 900 metres in strike

Nearly all the anomalies were appeared to be coincident with major geological structures, for which a ground EM Survey was commenced over the three areas of ~ 5.2 sq km.

The company has initiated research to determine a combination of drilling targets and areas for further work to include newer geophysical techniques to image zinc mineralisation directly. However, it has planned to divest the Laverton asset wholly to maximise the shareholder value.

Global Scenario

As per a report from the Department of Industry, Innovation and Science of the Australian Government, nickel consumption in the coming future is expected to outweigh nickel production, leading to price growth. Nickel price is projected to reach ~USD 15,800/tonne in 2020 and ~USD 16,500/tonne in 2021. Moreover, the boost in price is expected to continue, owing to expected surge in demand from stationary energy storage and electric vehicles (EVs).

Copper prices are also expected to witness modest growth, driven by rising consumption, constraint production and demand from EVs. The price is expected to increase by ~1.8% a year to reach USD 5,890/tonne in 2020 and USD 6,190/tonne in 2021.

According to the World Bank commodities price forecast, tin price is anticipated to increase to USD 18,850/ tonne in 2020 and gain pace later reaching USD 19,229 /tonne in 2021 and USD 20,822/tonne in 2025. Whereas, price of zinc and lead is expected to fall in 2020 due to subdued demand, which is expected to improve in the following years.

VIC is either planning to enter joint ventures or divest the projects to raise money to develop the three base metal projects. These tenements have deposit of Nickle, Copper, Tin and other metals, which will be beneficial in the longer term when the price of the commodity improves.

Stock Price Information

The stock of Victory Mines last traded at $ 0.001 on 23 December 2019 with a market cap of $ 2.96 million. The last one-month return of the stock stands at 50%.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. The above article is sponsored but NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) under discussion. We are neither licensed nor qualified to provide investment advice through this platform.

Source: International Monetary Fund

Bonaparte, Bolivian Tin and Laverton Assets

VIC holds 100% of three base metal projects, i.e. Bolivian Tin, Laverton and Bonaparte projects acquired in 2014, 2017 and 2018, respectively.

The Bolivian mining projects were obtained through the acquisition of 100% of the issued capital of South American Tin Limited, which held 80% of the mining rights with remaining stake owned by the local mining cooperatives.

Laverton projects were acquired via a Tenement Sale Agreement with Empire Resources Ltd (ASX:ERL) under a cash consideration of $ 2,000 and 2% royalty payment on all metals produced within the tenement.

Bonaparte tenements were acquired under a deal involving a cash consideration of $100,000 to vendors and the issue of 20 million fully paid ordinary shares. The acquisition was valued at $ 904,500 and involved the issue of ~ 10 million bonus shares to the vendors on the performance milestone achievements i.e.

· Milestone 1: 5 million shares upon confirmation of a JORC probable reserve of 10 million pounds at 10% Cu or Zn or Pb equivalent

· Milestone 2: 5 million shares upon approval of a JORC probable reserve of 20 million pounds at 10% Cu or Zn or Pb equivalent

Bonaparte Project

The Bonaparte project is located ~ 70km north of Kununurra, Western Australia. It features high-grade, zinc-lead mineralisation with rock-chip assay results of up to 28% lead and 43% zinc. Geochemical anomalism of Zinc-Lead ± Copper found to be associated with syn-sedimentary normal faults like Lennard Shelf MVT style deposits.

The company has started the ground gravity survey program of ~ 100km2 along with the Redbank and Martins Gossan prospective areas and structural features defined from an EM survey completed in 2010 by a previous explorer.

A new copper gossan was discovered with a value of 15.95% Cu, 9 g/t Ag and 0.14% Zn, while previous sampling of rock chip resulted values of up to 53.8% Pb, 8 g/t Ag and 39.1% Zn at Redbank.

During FY19, VIC undertook thorough desktop reviews of the project along with an analysis of historical exploration and known geology. After the review, the company decided to relinquish tenement E80/4964 and partially surrender E80/4901. For the remaining ground, the company decided to formulate an exploration-drilling program, while looking for a strategic investor to form a joint venture to develop the Bonaparte project.

The previous gravity survey has verified there are 14 specific targets for copper anomalism that reconcile with historic rock-chip samples.

Bolivian Tin Project

VIC secured eight tin tailing deposits near Llallagua town of Potosi Department in southwestern Bolivia with an exploration target of 55.05 - 60.65 Mt @ 0.39 to 0.41% Sn.


During FY19, the company reviewed the Bolivian Tin Project and established the data along with an investor presentation. VIC has planned to sell this data to a third party interested in developing the projects or entering some other form of commercial arrangement, rendering economic return concerning the project.

VIC has not ascribed any value to the Bolivian asset in financial statements, and this is done in situations where the company does not hold any tenements or equivalent mineral rights concerning the project in Bolivia.

Laverton Project

Laverton project is located ~20km northeast of Laverton in Western Australia. VIC immediately planned a geochemical soil sampling program after the acquisition of E38/3075 tenements to check the previously defined anomalous areas on a 200 x 25m pattern or to sample new areas. For the same, a total of 758 samples were collected out of designed 810 samples due to the rainy weather affecting access to one area.

Several Cu, Ni and Au anomalies were identified across the project area: -

· Ni anomalies up to 1.25km in strike and 350 metres in width

· Cu anomalies up to 1.25km in strike and 250 metres in width

· Au anomalies up to 900 metres in strike

Nearly all the anomalies were appeared to be coincident with major geological structures, for which a ground EM Survey was commenced over the three areas of ~ 5.2 sq km.

The company has initiated research to determine a combination of drilling targets and areas for further work to include newer geophysical techniques to image zinc mineralisation directly. However, it has planned to divest the Laverton asset wholly to maximise the shareholder value.

Global Scenario

As per a report from the Department of Industry, Innovation and Science of the Australian Government, nickel consumption in the coming future is expected to outweigh nickel production, leading to price growth. Nickel price is projected to reach ~USD 15,800/tonne in 2020 and ~USD 16,500/tonne in 2021. Moreover, the boost in price is expected to continue, owing to expected surge in demand from stationary energy storage and electric vehicles (EVs).

Copper prices are also expected to witness modest growth, driven by rising consumption, constraint production and demand from EVs. The price is expected to increase by ~1.8% a year to reach USD 5,890/tonne in 2020 and USD 6,190/tonne in 2021.

According to the World Bank commodities price forecast, tin price is anticipated to increase to USD 18,850/ tonne in 2020 and gain pace later reaching USD 19,229 /tonne in 2021 and USD 20,822/tonne in 2025. Whereas, price of zinc and lead is expected to fall in 2020 due to subdued demand, which is expected to improve in the following years.

VIC is either planning to enter joint ventures or divest the projects to raise money to develop the three base metal projects. These tenements have deposit of Nickle, Copper, Tin and other metals, which will be beneficial in the longer term when the price of the commodity improves.

Stock Price Information

The stock of Victory Mines last traded at $ 0.001 on 23 December 2019 with a market cap of $ 2.96 million. The last one-month return of the stock stands at 50%.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. The above article is sponsored but NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) under discussion. We are neither licensed nor qualified to provide investment advice through this platform.

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