Korab Resources (ASX: KOR) is a mining and exploration company with operations across Australia and overseas. It explores for magnesium carbonate, phosphate, cobalt, copper, nickel, gold, silver, zinc as well as lithium. Some of the company’s active projects are as follows:
- Winchester Magnesium Carbonate Deposit at Batchelor, in the Northern Territory, is operated by Korab's subsidiary Ausmag Pty Ltd. It has ~17 million tonnes of resource @ 91% MgCO3 (JORC Code compliant) with excellent infrastructure including sealed highway, gas pipeline, rail, potable water and high voltage power. Production is targeted to begin by the second half of 2019 subject to Ausmag Pty Ltd (quarry operator and Korab’s wholly owned subsidiary) obtaining necessary permits and approvals.
Along with its use in the production of refractory materials necessary for producing steel, cement, and glass; magnesium carbonate’s demand has lately shot up after the introduction of high-capacity rechargeable magnesium-ion batteries for electric vehicles, expected to be commercialised within next 2 years; potential markets being the European Union, China, the US and India.
- Geolsec Phosphate Rock Mine, also located in the Northern territory and ~ 70 km south from the port of Darwin, is operated by Geolsec Phosphate Operations Pty Ltd (100%-owned subsidiary). In addition to the basic infrastructure, the project features outstanding logistics.
- Bobrikovo Gold and Silver Project, located in Eastern Ukraine in the Lugansk Province, has a JORC Code compliant resource of 3.3 million ounces of gold and 16.3 million ounces of silver. The oxide and transition zones of the project are planned to be developed into an open cut mine.
- Batchelor and Green Alligator Project is located in Northern Territory’s Rum Jungle Mineral Field. So far, the drilling, rock chip sampling and soil geochemical surveys have confirmed extensive cobalt (up to 0.5% Co), copper, nickel, zinc and lead mineralisation. Besides, it also hosts the historical gold mine (Sundance) that produced gold at a head-grade of ~ 10 g/t Au.
- Mt Elephant Project situated south of Paraburdoo in Western Australia, is at an early stage of exploration with a key focus on copper and gold.
Source: Company’s 2019 March Quarterly Report
Korab Resources recently released its Quarterly Results for the three months to 31 March 2019. The company worked on progressing Winchester Magnesium Carbonate to production, and an updated Feasibility Study was released on 5 April 2019.
During the period, Korab conducted discussions, negotiations and meetings with potential buyers of raw MgCO3 rock, caustic calcined magnesia and dead-burned magnesia; potential contractors and suppliers for Winchester quarry; potential buyers of Bobrikovo Project. Exploration and evaluation of current mineral assets also continued, including various Group projects. As a result, the operating cash outflows amounted to AUD 134K.
On 17 Jan 2019, Korab executed an agreement with Poland-based producer and supplier, ZM Ropczyce SA for an offtake and co-operation regarding funding, research, development, markets expansion and development of new projects. On 24 April 2019, the company and its subsidiaries Australian Copper Pty Ltd and Australian Copper Holdings Pty Ltd informed to have executed a term sheet with Great Fingall Mining Company NL and extended the option (to 21 October 2019) for GFMC to purchase the Mt Elephant Project.
In the last four months, Korab reported placements including 2 million shares at 2.5 cents each on 7 January 2019 and ~ 2.343 million shares at 3.5 cents each to un-related exempt investors on 29 April 2019. Funds would be directed towards working capital, the progression of project permitting and reducing liabilities.
The KOR stock was trading today (24 May 2019) at AUD 0.027 with market capitalisation of AUD 8.4 million.
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