KNG - Kingsland Minerals

[System]

Kingsland Minerals Ltd is a mineral exploration and development company with a focus on Australian high grade uranium, copper and gold projects, including the acquisition of attractive exploration and development resource projects.

The Company's projects comprise the following:

(a) Allamber uranium and copper project in the Northern Territory;
(b) Shoobridge uranium and gold project in the Northern Territory;
(c) Woolgni gold project in the Northern Territory;
(d) Mt Davis copper and gold project in the Northern Territory; and
(e) Lake Johnston Nickel and Cobalt Project in Western Australia.

It is anticipated that KNG will list on the ASX on 31 May 2022.

Kingsland Minerals - Kingsland Minerals

Kingsland Minerals has built an exciting exploration portfolio of projects that focus on Copper, Uranium & Gold in the Pine Creek region of the NT.

www.kingslandminerals.com.au

 

[Dona Ferentes]

Listing date	31 May 2022 ; 11:00 AM AEST ##
Company contact details	Kingsland Minerals - Kingsland Minerals Kingsland Minerals has built an exciting exploration portfolio of projects that focus on Copper, Uranium & Gold in the Pine Creek region of the NT. kingslandminerals.com.au Ph: +61 8 9381 3820
Principal Activities	Mineral exploration and development
GICS industry group	TBA
Issue Price	AUD 0.20
Issue Type	Ordinary Fully Paid Shares
Security code	KNG
Capital to be Raised	$5,500,000
Expected offer close date	18 May 2022
Underwriter	Not underwritten. Westar Capital Ltd (Lead Manager).

 

[Sean K]

I don't know a lot about graphite projects. Any experts out there?

The exploration target seems pretty large. Any comparisons for something like this with this grade?

 

[Sean K]

This got smashed yesterday for the above results which was very strange. All it did was confirm previous RC drilling and take some cores to be sent off to the lab to confirm that the ore body can be turned into battery grade graphite.

I've rechecked the exploration target, which is just a smallish section of the total strike and it looks reasonable to me. If it's around 25Mt of contained flake graphite it could be in the top few graphite projects in the World, and it's not in Africa.

So, I guess the met testing is going to be critical in where this goes. If it's viable, and the dimensions are further proven, it could be quite valuable.

They have some loose lips on this ship though. The spike in May caused a 'please explain' from the ASX and they said, nothing to see here. A week later, drill results came out that were very good, confirming graphite over very large widths at high grade.

The grade seems quite exceptional on the surface of it. SVM's project in Mali has only 1% ish graphite and this is 5-10%.

So, I think the market is holding back because of general malaise in graphite projects and a question mark on whether this ore body can be made into purified spherical graphite.

I've taken a small punt. Wait, make that gamble, that the met might be OK.

With an $11m MC there might be some upside.

Or, it's crap.

 

[Sean K]

KNG had a rare up day yesterday....

 

[peter2]

It's all about the met. If it can't be processed into battery grade material then it's only good for pencils. (ref Stockhead).

 

[Sean K]

It's all about the met. If it can't be processed into battery grade material then it's only good for pencils. (ref Stockhead).

Haven't seen the Stockhead article.

Came out with a few good intersections proving up their exploration target. 200m @10% graphite is quite exceptional when compared to other deposits.

It seems to be open at depth so their exploration target in this small zone along the schist could be adjusted up if they drill some deeper holes. Could easily be 300-400m deep.

Syrah are obviously way ahead of anything else on the list of graphite projects but this could come in second with their initial MRE.

Yes, just needs the met to be good enough.

Mr Market isn't convinced in it, still trading around $10m MC.

 

[Sean K]

Haven't seen the Stockhead article.

Found it here.

Yep, it's making it battery quality which is the key. The info they have here is from the company itself.

The sooner they get some met results back the better. A bit of a gamble until then, but if it's proven that it can be battery grade the horse will have already bolted perhaps. Up 30% or so on the above ann today. Makes me feel a little bit better after selling SXG a few days before it shooting up 80%...

 

[Sean K]

MC still just $15m, EV about $12m, they might need some more cash soon. Thought they might have done a raise after that last result.

Holding up after the spike, but might do the standard thing and retreat between anns.

 

[Sean K]

Might be better than pencils @peter2

Seems like it might be a decent graphite deposit for something that was supposed to be a uranium project.

 

[explod]

I like the potential here, in today at 28cents. We'll see lol.

 

[Sean K]

I like the potential here, in today at 28cents. We'll see lol.

I've been trying to find an equivalent project to do a peer to peer comparison to quantify the arbitrage on the potential tonnes in graphite to EV and I can't really find one.

The closest I have found in regard to potential contained graphite are:

Black Rock have 200Mt @ 7.8% for about 16Mt in Tanzania and have an MC of $90m.

Volt have about 22Mt of contained graphite in Malawi at higher tonnage but much lower grade and are about $30m MC.

I'm not sure what discount you put on Malawi and Tanzania projects but it would be a fair wack.

KNG EV is currently about $10m so if it comes out with a similar MRE to these two and it's sitting near Pine Creek on the railway to Darwin, it should be re-rated.

The major risk - that the graphite couldn't be made battery quality, seems to have been squashed, if you believe their report...

 

[Sean K]

Gallium is selling at about $700kg so I guess this is OK. Would be nice if they converted this into gold, nickel or copper equivalent which would make more sense to me.

 

[Sean K]

EVs poised to send graphite price into overdrive amid big supply deficit​

---

Outlook is good news for Kingsland and its big NT graphite find

Not sure if Barry has read the last ann regarding the met.

 

[Sean K]

This should have come out on Monday.

On a peer comparison this is about half the MC of others. Looks like it's going to be a top 5 graphite deposit in the World. Only the Voice could have stopped this being a good buy.

 

[Dona Ferentes]

top 5 shareholders hold 33 per cent, with top 20 at 56 per cent

 

[Sean K]

Good intersections confirming the potential exploration target of this 5km long part of the 20km schist. Their exploration target could possibly be 4 x what they're plucking.

They're not drilling in two sections which they calling 'stock dams' in this announcement which is a bit confusing. They called these areas "dam exclusion zones' in previous announcements. I'm suspicious that these are restricted areas they can not drill in or include in the MRE due Q1 23. They don't look like they've got any water in them to me, but if they're critical to livestock watering during the year after the wet season then I'm not sure how they mine it without finding water for stock somewhere else. That's if my assumption about these areas actually are 'dams' for stock.

 

[Sean K]

I watched the Resources Rising Stars Summer Series (what a dick of a name) Presentation this week and was generally impressed with the MDs presentation. Although these guys had set themselves up to find other minerals they've brought on a consultant who knows pencils so they should be edging in the right direction.

He confirmed during the QA that the larger 'dam exclusion zone' area probably won't be in the initial MRE due in Q1 24, but the other one to the west probably will be. There's an historical hole in the middle of the dam that they're going to analyse but whether that gets into the MRE or not sounds very doubtful to me. Will be up to the independent geologist doing the MRE.

Still, while the exploration strike is estimated to be 5km it looks like the holes they have drilled cover maybe 4 to 4.5km in length even excluding the big dam. So, the exploration target - MRE might be at the lower end of their numbers. Plus, the overall grades look to be at the lower end too, so 6-8% will be very good.

Anything around 150Mt @ 6% would be a good start I think.

If they can then drill out the big dam area in the dry (if the cattle let them) and then prove the remaining 15km strike of the schist is also mineralised to the same extent, could be quite a large deposit.

Still need the met to be proved up of course.

Anywho, I've topped up a few more today. Bit of a dart throw, but hey, it's nearly Xmas.

 

[Sean K]

The strike is obviously consistent with these results. They probably should put a couple of holes further along strike to test the entire prospect to excite the market. Maybe 4 holes, one every 3-4km to the north. That can't be hard. I'll turn up with my own pick and shovel to assist. Similar intersections along the entire 20km would turn this into a globally significant deposit. EV still around $10m. I haven't seen such an arbitrage in a while.

 

[Sean K]

My superspec pick for the 2024 comp because I think the met will be better than pencil quality and it's floating under the radar with a low MC compared to peers with comparative deposits. I anticipate the anticipated initial MRE early next year but the upside will be when they put some holes in the next 15km of the schist to the north making it 4 x as large so by year end might be a $40m MC. Or, it's just pencils.