Minbos Resources Limited (ASX: MNB) is an ASX listed metals and mining company based in Australia. The company has a specific interest in the exploration and development of phosphate ore within the Cabinda Province of Angola and Rare Earth Elements in Madagascar. It aims to strategically target low-cost mineral projects.
Overview of the quarter
On 29th April 2019, the company released a quarterly activity report for the quarter ended March 2019. The company used its explorer system to gather high-resolution helicopter magnetic and radiometric data by New Resolution Geophysics (NRG). The target locations were two blocks within the Ambatofinandrahana licence area.
Results of the geophysics interpretation are as mentioned:
June Quarter 2019 Work program
- Radiometric anomalies have confirmed to be strongly correlated to rare earth occurrences at Ankazohambo which was confirmed by drilling in 2018
- One radiometric anomaly was delineated at approximately 800m in length on the eastern ridge at Ankazohambo, and another approximately 1.5 km in length on the western ridge
- In the western area, three radiometric anomalies were identified. The largest anomaly was Marovoalavo in the south.
- Preparation for Soil Sampling: Handheld XRF soil sampling program at Ankazohambo and Marovoalavo is intended to be completed in May to test the radiometric anomalies.
In 2018, The company carried out soil sampling using a handheld XRF at Ankazohambo which resulted in effective identification of rare earth mineralisation.
Cabinda Rock Phosphate:
The Angolan National Directorate of Mineral Resources has assured to revoke the Mineral Investment Contracts Prospecting for Phosphate Rock in Cabinda. The time to revoke contracts was stated to be under at the end of the 60-day notice period at the end of April.
Minbos has entered into an option with Tana Minerals Ltd under which it can acquire a 90% stake of the shares in MRE Mining (Mauritius) Limited (MRE). There is a condition upon the transaction and depends upon obtaining all the necessary regulatory and shareholder approvals apart from other conditions.
Cabinda Rock Phosphate Project
The company has 50% interest in the project which spans across 2000Km2. The remaining 50% is held by a private company Petril Phosphates Limited. The company has invested over $20 million in eight years in this project covered by Mineral Investment Contracts
The company used a total of A$187,000 for the operating activities, the highest cash expense being incurred on staff cost, which led to the cash outflow of A$103,000. Other expenses were incurred on administration and corporate costs, payments for exploration & evaluation etc.
The company used net cash of A$28,000 for the investing activities, and no cash has been used or received from financing activities. At the end of the quarter, the company had net cash of A$2.49 million in the balance sheet which is down from the cash of A$2.71 million at the starting of the quarter.
The company also estimated the future cash outflow for the next quarter which stood at A$250,000. It estimates the payments towards exploration and evaluation to increase to A$110,000 from the current exploration and evaluation cost of A$24,000.
The market capitalisation of the company is A$5.65 million. The 52-week high and low of the stock is A$0.004 and A$0.001 respectively. The last traded price of the stock is A$0.001 as on 29th January 2019.
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