Tapping right Opportunities, Avenira Limited (ASX:AEV) under Spotlight


  • Avenira enjoys a dual commodity opportunity and pursues the Jundee South gold project in Western Australia and Wonarah phosphate project in Northern Territory. The company envisions to emerge as a gold producer and potentially a producer of phosphate products
  • Avenira commenced a drilling program in September 2020 at South Jundee gold project to test the Priority 1 and Priority 2 targets which were identified from the interpretation of historical drilling data and geophysical survey.
  • The South Jundee gold is located in the Yandal greenstone belt which hosts Northern Star’s Jundee Mine, the historic Bronzewing operations and other significant projects that have produced in excess of 12m oz of gold.
  • Avenira holds one of the largest phosphate projects in Australia with a total mineral resource of ~550 million tonnes. Avenira also owns the rights to Novophos which is an advanced technology to produce phosphoric acid.

While the global economies struggle with the repercussions of COVID-19, gold is positioned as a “safe haven” and potentially low-risk high-return investment.  During the pandemic, gold outshined almost all conventional investments and peaked at US$ 2,064 per ounce of the yellow metal on 6th August 2020.

Gold Price Rally a Shot in the Arm for Australian Mining Industry

As per the Resources and Energy quarterly September 2020 report, Australian gold exports are forecasted to surge to $31 billion in 2020-21, an uptick of 27% against the previous year. In 2019-20, gold exploration expenditure surged to a record high of $1.2 billion, almost 42% of all exploration expenses incurred across the Australian mining industry. The data outlines that the Australian mining industry is investing aggressively in gold exploration.

The strong gold demand necessitates the development of premium gold projects. With gold presenting a robust commercial proposition, a solid interest is anticipated in the gold projects.

Amid Pandemic, Food Security emerges as Critical Issue

The current pandemic has raised eyebrows on issues concerning food security across the globe. The growing global population and the limited availability of arable lands motivates agricultural activities to be more efficient and is showcased in the rising production per unit of land. It is no hidden fact that fertilisers are being used widely to boost crop production.

The Food & Agriculture Organisation (FAO) of the United Nations has estimated that the world needs to increase food production by 70% by the year 2050 to satisfy the hunger of an increased population.

Phosphate (P2O5) is a critical component of fertiliser which is credited to promote root development and blooming. The mineral is also widely used as an ingredient in livestock feed. The International Fertiliser Industry Association (FIA) forecast growth of 1.7% annually for the fertiliser demand in the medium-term. Further, both IFA and CRU anticipate the demand for phosphate and potash fertilisers to increase in excess of 2% a year.

Dual Commodity Opportunity – Avenira under Spotlight

ASX-listed Avenira Limited (ASX:AEV) is a gold and phosphate exploration and development company pursuing the Jundee South gold project in Western Australia and Wonarah phosphate project in Northern Territory. The explorer envisions to emerge as a major supplier of gold and high-quality phosphate products upon the development of the mineral projects.

Maiden Drilling Program at Jundee South

The wholly owned Jundee South gold Project covers an area of 720 km2 in the Yandal Greenstone Belt. Avenira recently commenced the maiden drilling program on its South Jundee gold project which includes an air-core and Reverse Circulation (RC) drilling program to test the high priority targets.

Good Read: Why Should Every Investor Closely Track Gold Price?

Further, Avenira has collected and interpreted the historical drilling data from 6,158 drill holes. Most of those holes were drilled vertically using Rotary-Air Blast (RAB) drilling method, which was the preferred drilling method across the Yandal Belt prior to 2000.

The major drawback of RAB drilling method is that it is prone to contamination when the drilling conditions are not optimal. Due to ample opportunities for near-surface discoveries and depressed gold prices in the past, only a few of the historical intersections with a higher anomalous grade have been subject to follow-up exploration work.

Avenira has classified the test targets into three priority targets for the drilling program. The drilling targets were identified from the interpretation of historical drilling data and geophysical survey.

The result from the preliminary data is encouraging, and the assay result will be made public soon.

Recently, Avenira raised a total of $3.4 million (before costs) through Placements and Entitlements Issue to fund its drilling and exploration program. Avenira issued 277.28 million new shares at $0.008 a share to raise $2.2 million (before costs) via Placement, with the remaining $1.2 million (before costs) raised through an Entitlement offer.





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