Developing the world class Butcherbird Manganese Project, Element 25 Limited (ASX:E25) witnessed excellent progress in the quarter ending 30 June 2020. The PFS and maiden reserve published during the period showcase-
- Maiden Proved, Probable Ore Reserve of 50.55Mt at 10.3% Mn containing 5.22Mt Mn (4.28Mt Recoverable Mn).
- PFS returns a pre-tax Net Present Value8 of Nominal $441M (Real $283M) and IRR of Nominal 255%, (Real 223%).
- Low capital requirement of $14.5M plus $9.2M working capital
- Average annual operating cashflow of $32.1M for years 1-5
- Simple payback period 6 months from start of operations
- 42-year mine life based on Measured and Indicated Resources
Post the PFS, a water bore drilling programme commenced, final Access Agreement was signed and sub-sampling of diamond core from BBDD016 drilled into Coodamudgi manganese resource returned high grade manganese values of up to 42.3%Mn from surface with low impurity levels.
After the quarter, E25 received firm commitments from sophisticated, professional, and institutional investors to raise up to a total of $3.5M (before costs) and is conducting a SPP to existing eligible shareholders to raise up to $1.5M.
E25 was trading up 1.17% at 11:56 AM AEST.
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Outreach and future of cannabis stocks As countries liberalise regulation for medical and recreational use of cannabis, it is predicted that the industry would grow sharply in upcoming years The global cannabis market stands currently at around $8 billion and it is expected that the hemp derived CBD market to hit approximately $22 billion by 2022.
Key Players in the sector Althea Group Holdings Limited (ASX: AGH) and Cann Group Limited (ASX: CAN) are amongst the top players. Other Australia cannabis market players are- MGC Pharmaceuticals Ltd (ASX: MXC), Elixinol Global Limited (ASX: EXL), THC Global Group Limited (ASX: THC), AusCann Group Holdings Limited (ASX: AC8)