Based in Perth, Western Australia, Victory Mines Limited (ASX: VIC) is a focused exploration company, with principal activities related to project acquisition, mineral exploration and development. To perform exploration activities, the Company uses a high standard of exploration methods.
VIC, which is focused on adding significant long-term shareholder value through the advancement of projects, has a number of investments and exploration assets, both local and international. Let us learn about these exploration assets.
Husky & Malamute, New South Wales
Husky (El 8666) and Malamute (EL 8667) cover 244 hectares and located circa 150km west of Dubbo.
During FY19 ended 30 June 2019, the Company shortlisted a drilling contractor as the preferred party to the inaugural drilling campaign at the Malamute exploration areas. Site visits were made to liaise directly with the landholders, resulting in the negotiation of sixteen land access agreements targeted towards ensuring the drilling program to progress smoothly with the full cooperation of the respective property owners. As the demand for cobalt and scandium remained relatively weak on a global level, the Board decided to scale back the plans.
Meanwhile, during the quarter ended 30 September 2019, VIC commenced a 40-hole drill program for approximately 2,000m at Malamute (EL8667) and Husky (EL8666) in order to obtain additional information about the scandium and cobalt deposits hosting potential of the tenements. The campaign is designed to deliver higher impact results at a relatively low overall cost.
Galah Well & Peperill Hill, Western Australia
The Galah Well & Peperill Hill projects are in a highly prospective region for nickel-copper mineralisation. Notably,
- St George Mining (ASX: SQG) has been successfully developing its Mt Alexander nickel-copper project and achieving respectable drilling results;
- Talisman’s (ASX: TLM) Sinclair Mine produced 38,000t of nickel during 2008-13.
During the financial year 2019, the Company focused on the review of previous studies consisting of the analysed aero-magnetic imagery, highlighting Peperill Hill and Galah Well to be near the intersection of few varying mineralised systems. The project areas are highly prospective for nickel-copper contained within sulphide and laterite mineralisation.
During the quarter ended September 2019, the Company undertook an initial field reconnaissance program, wherein:
- The field reconnaissance supported the VIC geology team to map the area and identify two Proterozoic dykes of the Widgiemooltha Supersuite – that intersect both projects and are prospective for nickel-copper sulphide mineralisation;
- Granites and mafic greenstone belts were also identified through mapping.
Bonaparte, Kimberley Region, Western Australia
Thorough desktop reviews of the Bonaparte project were undertaken by the Company during the year, which encompassed an analysis of the historical exploration and known geology, with the outcome of the review was the decision:
- To relinquish tenement E80/4964 and partially surrender E80/4901,
- The formulation of an exploration-drilling program for the remaining ground, and
- The initiation of a search for a strategic investor to form a joint venture to develop the Bonaparte project.
Earlier gravity survey work carried out at the Bonaparte project had validated the presence of 14 specific targets for copper anomalism reconciling with historic rock-chip samples.
Through the voluntary surrender of E80/4964 and partial surrender of 59 blocks of E80/4901, the board was in favour of maximising the potential of the Bonaparte project whilst reducing the cash burden on the Company during the September Quarter. Moving further, the Board has initiated the search for a strategic partner for the further development of the project.
VIC - Two Non-Core Assets
Bolivian Tin:
With rights to 8 tin tailings deposits in Bolivia, the Company has
- reviewed the Bolivian Tin project,
- developed an investor presentation,
- and established a data room.
The Company’s financial statements recognise no value for its Bolivian tin project in the light of the facts that the Company does not hold any tenements or equivalent mineral rights in Bolivia in connection to the project.
However, the Company is of the view that the substantial exploration data concerning the Bolivian tin project held with VIC would be of value to any entity who aspires to develop the project.
Laverton Tenure:
The Company performed a review of the geophysical data acquired and initiated research into determining a combination of drilling targets and areas for further work, inclusive of newer geophysical techniques that may be able to image zinc mineralisation directly. Victory Mines has since decided to seek the divestment of the Laverton asset outright to maximise shareholder value.
Corporate Team of VIC
At the end of the quarter ended 30 September 2019, the Company’s cash and cash equivalents stood at $ 62,000. For the next quarter ending 31 December 2019, VIC has estimated cash outflows of $ 515,000.
Additional highlights from the Company’s quarterly activities are:
- Completed capital raising program worth $116,000 (before costs);
- Fully underwritten rights issue commenced during the quarter, subsequently completed raising approximately $1,479,000 (before costs);
- Entered an option agreement with Carmichael Prospecting Company Pty Ltd to acquire prospective WA Copper tenement E45/5384.
The VIC stock last traded at $ 0.001 on 16 December 2019 with a market capitalisation of $ 2.96 million.
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