Why Anax Metals (ASX:ANX) made a splash today

Be the First to Comment Read

Why Anax Metals (ASX:ANX) made a splash today

Rising Anax shares
Image source: © Edhardream | Megapixl.com

Highlights 

  • Anax Metals Limited (ASX:ANX) has announced a JORC 2012 mineral resource estimate for the high-grade Evelyn Deposit.
  • ANX has also announced the results of the updated Scoping Study for the project.
  • The study has identified a Production target of 3.8 Mt of ore at an average grade of 2.47% zinc and 1.33% copper.

Australia-based mineral exploration company Anax Metals Limited (ASX:ANX) continues to achieve new milestones at the Whim Creek Project. In its latest update, the company has announced a JORC 2012 mineral resource estimate for the high-grade Evelyn Deposit Whim Creek Project in Pilbara.

According to the update, the overall resource estimates at the Evelyn deposit stand at 550kt at 2.19% Cu, 3.49% Zn, 0.8 g/t Au and 35 g/t Ag. The latest resource estimates drive the global resources at the Whim Creek Project to more than 10 million tonnes.

Triggered by the announcement, the Company's shares surged 9.3% during an intraday trading session on Monday to trade at AU$0.094 per share.

Additionally, ANX has also announced the results of the updated Scoping Study for the project which includes an increased production target based on the addition of the Evelyn Deposit.

Also Read: Two ASX mining shares for investors in January 2022

Updated Scoping Study

Anax had released its preliminary scoping study results in August 2021 based on its mineral resources at the Whim Creek, Mons Cupri and Salt Creek deposits. The updated study results now contain an increased production target based on the latest JORC 2012 Mineral Resources for the Evelyn deposit. The updated results also include:

Data Source: Company announcement (17 January 2022)

In addition, the updated Scoping Study indicates that the concentration circuit would produce 39kt Cu, 70kt Zn, 18kt Pb, 1.8Moz Ag and 14,300oz Au.

The study has identified a Production target of 3.8 Mt of ore with an average grade of 2.47% zinc and 1.33% copper. The key financial results demonstrate that copper will account for more than 55% of the project's revenue, followed by zinc (25% of the project revenues). Other metals likely to pay off are lead, silver and gold.

Whim Creek Project Revenue Sources

Data Source: Company announcement (17 January 2022)

Next Steps

The Scoping Study indicates a base case NPV (Net Present Value) of AU$227 million for the Whim Creek project. The NPV of the project has been estimated at a discount rate of 6%, with a range of AU$192 to AU$363 million.

The results of the Scoping Study depict Whim Creek as a technically sound project with potential to generate significant returns for shareholders. The Company has already started a definitive feasibility study and expects to complete it by mid-2022.

RELATED ARTICLE: 5 trends likely to dominate Australian markets in 2022

The miner also plans to take significant mine and project financing decisions in the second half of 2022 which could allow ANX to begin mining in early 2023.

Disclaimer

Speak your Mind

Featured Articles

Ad
kalkine logo

GET A FREE STOCK REPORT

Top Penny Picks under 20 Cents to Fit Your Pocket! Get Exclusive Report on Penny Stocks For FREE Now.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK