A1M - AIC Mines

[greggles]

There is movement at the station...

Volume isn't too far above average but the supply is drying up. A1M is tightly held.

Inaugral drilling program at the Lamil Project commences this quarter. The DeGrussa/Monty style multi-element surface geochemical anomaly at the Curara Well Joint Venture at the Marymia Project is scheduled to be drill tested in the December quarter.

Positions are being quietly taken in A1M IMO. DYOR.

 

[greggles]

This is my small cap mining pick for the next 12 months.

Watch this space.

She's about to pop. Drilling currently going on at the Lamil Project. A1M has been flying under the radar for a long time. First round of drilling results due soon.

 

[greggles]

Some slides from yesterday's Investor Presentation for those that missed it.

Market cap of $32 million with $7.7 million in cash and $2.2 million in listed investments. The Directors own 24.6% of the company. Josef El-Raghy is the Chairman.

All it is going to take is one good assay result and we're off.

I'd be interested in what others think of this one.

 

[greggles]

I was expecting drilling results from the Lamil Project to be announced before the end of November, but they are yet to be released.

This was from the Quarterly Activities Report announced on 22 October:

The first round of assays from the aircore and RC drilling are not expected to be received until late November 2020.

They can't be far away now, unless there has been a delay at the lab.

 

[greggles]

Phase 1 wide-spaced reconnaissance drilling at the Lamil Project was completed in mid-December.

Hoping for some results to start coming through in January. It all still feels very positive and I remain optimistic.

 

[Trav.]

Phase 1 wide-spaced reconnaissance drilling at the Lamil Project was completed in mid-December.

@greggles unfortunately there wasn't much interest shown in the announcement, SP up 2.6% on the day.

Final results due March so are you expecting some sideways movement until then, or is there some other activity elsewhere? I think the Marymia project has a similar timeline so march might be the month.

 

[greggles]

@greggles unfortunately there wasn't much interest shown in the announcement, SP up 2.6% on the day.

Final results due March so are you expecting some sideways movement until then, or is there some other activity elsewhere? I think the Marymia project has a similar timeline so march might be the month.

I think A1M is going to trade between 30c and 40c until they have some kind of drilling success. What impresses me about this company is how prospective its projects are and the experience of its management team.

Drilling has now commenced (see today's announcement) at the Curara Well Joint Venture to test a surface geochemical anomaly which displays striking similarities to the nearby DeGrussa and Monty copper-gold VMS deposits.

There is also follow up drilling at the Lamil Project coming up soon.

2021 is going to be a very interesting year for A1M. Whether they hit a major deposit remains to be seen, but the projects they are drilling are highly prospective and the management team very experienced, and in my view that's a good recipe for drilling success.

 

[greggles]

A1M requested a voluntary suspension yesterday pending an announcement to the market regarding a "proposed transaction, being an acquisition". This has come out of nowhere, but I admit to being very curious as to what it is all about. Presumably we will know soon.

 

[bux2000]

Yes well that just proves the effectiveness of my now tried and tested system with what I am guessing a 98% success rate. It is a shame others could not benefit in some way from my obvious success.
After holding on to A1M for seemed like decades....... well 17/04/2020........ sold them last Tuesday for a small loss , kicking myself for my obvious stupidity for not selling earlier close to the high.

There you go then....you can only say Bugger and carry on

bux

 

[greggles]

Yes well that just proves the effectiveness of my now tried and tested system with what I am guessing a 98% success rate. It is a shame others could not benefit in some way from my obvious success.
After holding on to A1M for seemed like decades....... well 17/04/2020........ sold them last Tuesday for a small loss , kicking myself for my obvious stupidity for not selling earlier close to the high.

There you go then....you can only say Bugger and carry on

bux

Well, nobody knows what the proposed acquisition is, or whether it will end up being good for A1M, so you may have sold at the right time. It's too early to tell. I felt like this company had a lot of potential, but then it kind of went to sleep and in the absence of news it was sold down.

In any case, we will find out very soon what this acquisition is all about, so stay tuned...

 

[bux2000]

Well, nobody knows what the proposed acquisition is, or whether it will end up being good for A1M, so you may have sold at the right time. It's too early to tell. I felt like this company had a lot of potential, but then it kind of went to sleep and in the absence of news it was sold down.

In any case, we will find out very soon what this acquisition is all about, so stay tuned...

Hi Greg,

Yes I guess buying shares is a bit like buying a bag of potential, at least that is what my wife tells me after 40+ years of searching for mine.

bux

 

[greggles]

AIC Mines acquires the Eloise Copper Mine in North Queensland from FMR Investments Pty Ltd for $27 million dollars, transforming the company from an early stage explorer to a producer. Details of the acquisition are below.

It will be interesting to see how the market reacts when A1M starts trading again, but this acquisition could be a game changer for the company. They will own a profitable mine that will not only generate profit for the company from day 1, but will fund exploration to extend the mine life and also exploration and development of their other projects. This should mean no further cap raises to fund exploration.

A1M will remain suspended from trading until a $30-$35 million capital raising, to fund the acquisition and provide working capital, is completed in October.

Exciting times for A1M.

 

[greggles]

Article from the AFR about the Eloise Copper Mine acquisition

The most interesting paragraph in the article:

But the built infrastructure at Eloise makes AIC Mines a potential consolidator of the famous base metal region around Cloncurry, where a host of nearby copper assets lack their own processing infrastructure.

With AIC owning the processing infrastructure, I imagine it would be easy to pick up stranded copper deposits in the Cloncurry district for dirt cheap prices and then mine and process them at Eloise. Someone at another forum suggested that the paragraph above was a clear reference to MEP's Jericho JV with OZL and the very extensive tenements MEP controls around the Eloise mine.

I imagine there are many others that would also fit the bill.

 

[greggles]

The drill rig is back at the Lamil Gold-Copper Project for a 10,000 metre RC drilling program which will cover four high priority target areas. They are reducing the drilling spacing in the hope of hitting some mineralisation after further refining targets based on results from the maiden program, which was drilled later last year..

I still think this is a very promising area and think they are in with a good shot this time around, but the proof will need to be in the pudding. The pudding in this case is the assay results.

Drilling has already commenced so I suspect we will start seeing some results next month.

 

[Dona Ferentes]

Article from the AFR about the Eloise Copper Mine acquisition

With AIC owning the processing infrastructure, I imagine it would be easy to pick up stranded copper deposits in the Cloncurry district for dirt cheap prices and then mine and process them at Eloise. Someone .. suggested that the paragraph was a clear reference to MEP's Jericho JV with OZL and the very extensive tenements MEP controls around the Eloise mine.

I imagine there are many others that would also fit the bill.

there's another AFR article today, and A1M gets a mention for the same reason

Soul Patts (SOL) are talking to investors about a potential spin out of Round Oak Minerals (formerly known as Copper Chem on the SOL books)

Round Oak has as its flagship asset the Jaguar zinc, copper, silver and gold mine in WA , previously owned by IGO Limited, and it also has two old mines located in the copper district between the Queensland towns of Mt Isa and Cloncurry.

Round Oak also has a sizeable package of exploration acreage south of Cloncurry, meaning it will likely be a close neighbour of AIC Mines (A1M).

A longer term growth option is the Stockman deposit in the Victorian high country near Omeo. Soul Patts paid IGO Ltd $32.2 million for Stockman in June 2017 on the promise it would pay IGO up to a further $15 million based on production royalties.

Soul Patts mulls copper spin-out

Another established copper miner could be headed for initial public offering on the ASX, thanks to Washington H. Soul Pattinson.

www.afr.com

 

[greggles]

A1M raising up to $40,000,000 through the issue of 160,000,000 FPO shares at 25c per share. The funds will be used to fund the Eloise Copper Mine acquisition, provide working capital and fund further exploration at the Lamil and Marymia Projects.

To get this capital raise away at 25c is impressive given that A1M is currently trading at 24.5c. Being currently suspended from trading helps I guess.

I think the acquisition of the Eloise mine is a smart move for A1M and will provide them with additional revenue to make further acquisitions and to continue exploration efforts. If management is smart, and I think they are, they can easily grow the company from here with what they will have after this capital raise.

 

[greggles]

A1M has been re-instated to official quotation today after the Eloise Copper Mine acquisition and $40 million capital raising and the share price has hit a high of 41c and is currently trading at 37c. The company has been transformed from an explorer to a copper producer with cash generating processing infrastructure in the Cloncurry district.

This is really a new beginning for A1M and I expect to see management capitalise on the company's new assets by snapping up tennements and making acqusitions in the Cloncurry district and surrounding areas.

 

[greggles]

A1M has hit 45c today and the sell side is looking particularly barren. The next major catalyst will be assay results from drilling at the Lamil project and the Marymia project. Both drilling programs were completed last month so we should see results before the end of 2021.

 

[greggles]

Sunsuper becomes a substantial shareholder in A1M with 3,768,093 shares held (5.48%).

Recent definition drilling of the Eloise Deeps has revealed wide, high grade intersections.

Chart looking very bullish. Watch this space.

 

[bux2000]

I have entered A1M as one of my choices for the CY 2022 competition.
As you can see above @greggles has spent some time researching A1M. I would like to thank him for his research and pass on again how much I appreciate his sharing.
I held A1M for some time only to sell it shortly before a trading halt and the announcement of the Eloise Copper Mine acquisition, buying back in recently.

bux