RDM - Red Metal

[greggles]

Red Metal hit hard today after it announced that "no significant copper mineralisation was encountered" at its Leichhardt Project in north-western Queensland. It will now shift its drilling activity to the Lawn Hill region in its search for zinc.

Currently down 23.4% to 18c.

 

[noirua]

Junior explorer Red Metal 100% owns the Maronan silver-lead and copper-gold project in the Carpentaria province of Queensland, which has been estimated to contain inferred resources of 30.8Mt at 6.5% lead with 106g/t silver.

South of Maronan, Red Metal also holds the Mount Skipper lead-zinc-silver and copper-gold project in a joint venture with OZ Minerals (ASX: OZL).
OZ is earning a 51% stake in Mount Skipper, along with other greenfield projects focused on copper combined with gold, cobalt and nickel.
https://www.redmetal.com.au/

Presentation: https://www.redmetal.com.au/images/stories/pdf/A_20206_Corporate_Presentation_June2020.pdf

 

[noirua]

Junior explorer Red Metal 100% owns the Maronan silver-lead and copper-gold project in the Carpentaria province of Queensland, which has been estimated to contain inferred resources of 30.8Mt at 6.5% lead with 106g/t silver.
Based on drilling analysis, Red Metal also believes there is the potential for a large, higher grade Cannington-style silver-lead-zinc deposit and enriched copper-gold system existing at depth below the presently outlined resource.
South of Maronan, Red Metal also holds the Mount Skipper lead-zinc-silver and copper-gold project in a joint venture with OZ Minerals (ASX: OZL).
OZ is earning a 51% stake in Mount Skipper, along with other greenfield projects focused on copper combined with gold, cobalt, and nickel.

Gawler Craton

Red Metal Limited - an Australian mineral explorer

www.redmetal.com.au

Carpentaria Province

Red Metal Limited - an Australian mineral explorer

www.redmetal.com.au

Pilbara Province WA

Red Metal Limited - an Australian mineral explorer

www.redmetal.com.au

Coompana and Madura Provinces - Nullarbor Project

Red Metal Limited - an Australian mineral explorer

www.redmetal.com.au

 

[finicky]

The finest of timing for the Feb stock picking game by @noirua, Red Metal closing in on its highest daily trading volume for 5 years given its only luncheon time for the parastic class. Must be the 'Cannington style' silver prospect explosively combined with the reddit phenomenon? A long tiime pick of Tony Locantro and is included in his top picks for 2021.

not held

Daily

 

[finicky]

Lodged an after hours bid @ 0.095 for a chunk of RDM. Main motive was the Maronan lead-silver project briefly described by @noirua above. There's about 100m ozs of inferred silver resource so far @3oz/t and Pb grading at 6.5%. Soft ore, high metallurgical recovery. They think there is high potential for more at depth of higher grade and thickness. No work seems to have been done for a while, presumably because of cost of depth drilling. They are looking to spin out and float Maronan while initially retaining 50%. This company has done a great job of keeping share issuance low for an explorer and forming jvs on a few projects with Oz Minerals.

All data Quarterly chart:
Share price history suggests to me that buying around 10c offers a reasonable chance of a bag or two for the patient buyer prepared to wait for a few years. Then reduce to free carry. If it's hit by a crash I can double up @ 0.05 or so with acceptable risk. They are overdue for some luck, imo.

All Data Quarterly

 

[finicky]

Tony Locantro is sticking with RDM as an inclusion in his 2022 list of movers.
My primary motive for buying RDM is the Maronan Silver-Lead, Cu-Au spin-off prospect. However the September Quarterly throws this into doubt as the current market is not conducive. Looks like now they will peck away defining the high grade shallow areas and look for clues as to where to direct a few more pricey DD holes. They will more clearly update their strategy for Maronan in a few weeks.

Tony's 2022 hot specs

 

[Sean K]

Tony Locantro is sticking with RDM as an inclusion in his 2022 list of movers.

I watched his interview on the tube today and was interested in his picks.

What's his record like?

 

[finicky]

What's his record like?

Patchy I would guess but as you would expect from this end of the market. He goes to conferences (probably for the craic, drinks and nibbles) but gets to know the managements face to face. He advises a 'portfolio' approach, not just pick out one or two of his companies. Also exhorts clients to take profits along the way and I would imagine that anyone really doing that with patience has done well. As he says, you only need two or three screamers out of 10 stocks to be well ahead. He picked out Northern Star (NST) and Ramelius (RMS) when they were about 5c. A couple of his biotech picks did well for clients in 2020: EX1, PIQ; although I see a 2021 pick, CHM hasn't done anything. Maybe I've fallen for his promotion. The early selections of NST and RMS made a big impression on me as he was pretty much on his own publicly backing struggling goldies at the time. I think his recs are worth kicking the tyres.

 

[finicky]

Trying to get a bid filled @ 0.094 to double my holding in RDM.
The spin--out of the Maronan Pb/Ag Cu/Au project via listing as MMA on the ASX went off surprisingly well. They got $15m of subscriptions for the new company including oversubs. There will be no 'in species' distribution to RDM holders but RDM, the company itself, retains 50% of the shares of MMA.
MMA quotes on the ASX in two weeks, Friday Apr 29.

 

[finicky]

38.23 - Starts talking about the Maronan deposit that's been spun out of RDM and will soon list as MMA.
Maybe I'm succumbing to sales talk but this clip engendered the most excitement I've felt for this deposit. It's still a mystery as to what is at depth but he makes an early case for a Cannington analogue well. MMA has $15m to find out.
I only have exposure via Red Metals' 50% ownership of MMA at this IPO stage. Doubled my RDM holding.

 

[finicky]

Bid in for more @ 0.86, the low of the day so far.
Red Metals' holding in MMA alone is worth 0.097 at MMA's current price of 0.325

 

[finicky]

Sitting bid hit for more RDM @ 0.08
1 share of RDM gets the buyer an inferred 0.3 of a share of Maronan Metals (MMA) as RDM hokds 75m escrowed unquoted MMA shares (not showing up in the quoted market capitalization of MMA)
MMA is currently being bid @ 0.33, so buy 1 RDM at 8 cents get 10 cents worth of MMA + rest of RDM's projects, cash and jv with Oz Minerals is the primitive reasoning.

 

[finicky]

Jump in RDM today. Reached high at resistance of 9c before sputtering out.
They reckon they're onto outcropping REO 20 km SE of Mt Isa that has potential for "vast tonnage" and is susceptible to weak acid leaching (cheap and fast). Potential area of mineralisation 14 × 2 kms, thick intersections from surface. Someone else can assess the grades so far (TREO 1,500 - 2,000 ppm) - don't follow rare earths after a history with ARU.

Held

 

[finicky]

RDM smashed through resistance of 9c on high volume for this stock.
Now 11c intraday after reaching 12c. May not have legs but the main reason I hold this stock is the escrowed shares it holds in Maronan Metals (MMA) not some possibly flash in the pan flavour of the month RE find.

 

[noirua]

Red Metal Ltd | ASX: RDM

redmetal.com.au

13 NOVEMBER 2023
GIDYEA COPPER-GOLD PROJECT: DRILLING UPDATE

https://redmetal.com.au/wp-content/uploads/2023/11/RDM_ASX_Gidyea_Drilling_Update_Nov_2023_final.pdf

 

[finicky]

Hadn't noticed that Red Metal (RDM) has kicked off a bit over the last few weeks. Might have something to do with the vestment for RDM of some performance shares that were included in the spin out of Maronan Metals (MMA)
I have included a tan iine chart of MMA within the main weekly chart of RDM for comparison.
RDM now owns 53% of MMA if I've got it right and has referred to MMA as a "subsidiary".
Maronan recently published a step out high grade lead and silver hit of about 7m true width.
Don't have a strong opinion about it as very jaded with explorer specs. At least RDM has been exceptionally frugal with share issuance over the years and has achieved a few jvs with OZM and I think BHP in earlier times (see originating post on this thread). I also count it a coup that they got MMA floated off at 20c in a hard environment.

Held
A spec I'm actually ahead on

WEEKLY

 

[finicky]

Back to business. A few scattered impressions of the current state of this explorer - one of the very few I might risk a few more dollars on at the right price. Right price would be below the 8.5c of the recently fulfilled placement and rights issue.

So the recent surge of interest, now waning, might be more about their rare earth Syballa project than the Moronan silver/lead interest. There is also the impending drilling season for the BHP funded Yarrie prospect in the Patterson province. This is sited along a major regional 'crustal' strucure that is associated with Rio's Winu, Havieron and Telfer. Winu looks to be only 50kms SE of Yarrie and airborne electromagnetics and other geophys have presented a Havieron lookalike to drill into (its all in their Qtrly).

So RDM have their stake in Maronan (MMA) for silver, Syballa for RE and Yarrie for Au/Cu as active chances, $4.5m from the capital raise along with jv and govt funding and still a relatively low share issuance for a mature explorer.

Held

A promo bit about Syballa. From another source - apparently commercial viability here will turn upon favourable metallurgy for a heap leach operation?

 

[finicky]

Another prospect, Forrest. Vivid coincident magnetic and gravity anomaly. There's something down there, hope its not iron. Funded for $200,000 by W.A exploration initiative, close to major rail and airstrip. I approve this project. Visuals expected late Feb.

Held

 

[finicky]

Wowha - RDM is getting a second spike on the Syballa prospect, up 23% currently
Apparently the only way this hard rock (as distinguished from the ionic clay type of mineralisation) will work without uneconomic huge capital outlay is if met work like this can underpin a low acid, low temp, heap leach processing route.

Held

 

[finicky]

RDM @ 0.14

Finished on its high which seems not too bad, considering weaker hands who subscribed to the recent placement or rights issue can dump shares @ 13-14c and get back a lot of their contribution to the raise while effectively retaining the same number of shares.
Explanation: recently completed placement/rights offer was @ 0.085 but came with an attached half option per share bearing an exercise price @ 0.13. So at 13-14c subscribers can sell half the shares that they took up, book a profit on those, and fill in the blank with the 'free' option to exercise at the current price at their leisure.

Held

DAILY