MMA - Maronan Metals

[System]

Maronan Metals Limited holds a 100% interest in the Maronan lead-silver copper-gold project (Maronan Project), an emerging large base metal deposit in the world class Carpentaria Province in Northwest Queensland. A maiden, JORC 2012 compliant, Mineral Resource Estimate for Maronan was reported by ASX listed, Red Metal Limited (RDM) in 2015.

In April 2019, as part of a corporate restructure by Red Metal Limited (RDM), ownership of EPM 13368, which makes up the Maronan Project, was transferred to the Company. The Maronan Project is located in Queensland, approximately 60 kilometres south-east of the town of Cloncurry and 156 kilometres from Mt Isa.

On 15 March 2021, RDM announced its intention to undertake a non-standard partial spin out and initial public offering of the Company, which was approved by RDM Shareholders at a general meeting of RDM Shareholders held on 25 January 2022.

It is anticipated that MMA will list on the ASX during April 2022.

Home

www.maronanmetals.com.au

 

[Dona Ferentes]

Listing date	29 April 2022 10:30 AM AEST ##
Company contact details	http://www.maronanmetals.com.au/
Principal Activities	Minerals exploration
GICS industry group	TBA
Issue Price	AUD 0.20
Issue Type	Ordinary Fully Paid Shares
Security code	MMA
Capital to be Raised	$5,500,000
Expected offer close date	22 March 2022
Underwriter	Not underwritten. Veritas Securities Limited (Lead Manager)

 

[finicky]

The debut will be interesting. They now have the money, ~$15m I think, to have a serious go at drilling the depths of the maronan deposit where they suspect a rich feeder zone might be found, a la Cannington - a mini Cannington perhaps, with high grade silver/lead and a separate parallel deposit of gold/copper.

Little RDM couldn't afford the funds to do it but somehow, by the mysterious mechanism of a spin-out IPO, enough money was attracted for an over subscription. I am only participating so far via a holding in RDM which retains 50% of the IPO shares of MMA as payment for its divestment of Maronan.
At present, not at great depth, they have a resource of a good amount of Pb, around 6% I think, along with 100m ozs of Silver @ 3 oz/t

I have posted this discussion vid on the RDM board but its worth reposting here for a speculative explanation by a geo who is perhaps doing a bit if a sales job, but there is much factual and explanatory content and I must admit I caught the enthusiasm. Starts at about 36.50

 

[finicky]

Wondered why stagnant old RDM was up 17% today - RDM is holding 50% of the MMA shares listed today.
At Red Metal's SOI of 250m (rounded up), one RDM share gets you 0.3 of an MMA share if my sums are right.

This has all much surprised me. Firstly that they were able to spin off Maronan for maximum subscriptions @ 0.20 raising $15m b4 costs. And now that they have come on the board at over the ipo price.

 

[Dona Ferentes]

highest ever silver grades, says the announcement.
.
HIGHLIGHTS
• Latest drilling at Maronan has returned further wide intercepts of high grade silver with lead mineralisation within the shallow Starter Zone
• Results include an individual assay returning 872g/t silver - the highest ever recorded from the project
• Significant intercepts from the Eastern Horizons include:
o 21.15m @ 5.0% lead, 195g/t silver (), including
• 6.15m @ 6.9% lead, 517g/t silver (), and
• 2.0m @ 10.4% lead, 851g/t silver ()
o 4.20m @ 6.6% lead, 327g/t silver, 0.15g/t Au
o 5.10m @ 6.9% lead, 121g/t silver ()
o 4.07m @ 7.7% lead, 170g/t silver (), plus
o 10.0m @ 4.5% lead, 112g/t silver ()
.

..close to lowest ever price says the chart.

 

[greggles]

Those grades look good. Why is MMA trading near its lows? I'm looking for explorers with exposure to silver and this one seems to be coming up with the goods. General market sentiment? Lead price dragging it down?

 

[finicky]

Yes, general exploration company sentiment perhaps and few get excited by lead, or silver these days. But it might also have to do with the number of escrowed shares that Red Metal (RDM) holds in MMA since the spin out. Without checking I think it was 75m shares, and again without checking, escrowed for 24 months from Apr 2022? Maybe some of the MMA float subscribers @ 20c abandoning ship.

Held (only through RDM holding)

 

[finicky]

These early (maiden) metallurgy results from Maronan are looking good.
84% silver recovery to a concentrate is good from my limited experience of chasing silver or silver co-product miners from an earlier era. Also the richness of the concentrate looks strong at 50% Pb and somewhere around 47oz/t Ag. They say that they anticipate improvement on that too by tweaking the flotation reagents and dialling up gravitational. The grind is medium-fine with medium-soft ore.
There is also the separate copper-gold sulphide concentrate information.
Remind that at current outstanding issuance Red Metal (RDM) owns 53% of MMA which will change when MMA raises capital again.

MMA Not Held
RDM Held

 

[philw]

MMA compared to its peers. May11th metals/forex spot prices and May 10th closing prices

 

[finicky]

MMA @ 0.33 late in the day, up 17%
MMA can be considered a silver 'play' with over 100m ozs in its 2024 MRE (see above spread sheet)
As mentioned I am participating via Red Metal's (RDM) 53% ownership of MMA at current level of MMA's share issuance.

MMA: Not Held

DAILY