✦ Tin-Boron Rich Zones have been identified at Mount Lindsay, plus the company's recent release is a boost to the confidence in its Mount Lindsay project.
Get to know Venture Minerals Limited (ASX: VMS)
Noel Ong, CEO of Samso had his very first coffee chat with Andrew Radonjic, Managing Director of Venture Minerals in October 2020. He saw the company as a Targeted Diversified Mineral Explorer then because of their promising targets.
And what is the company's market status?
Currently, like many of the market participants, the share price has taken a beating. The journey has been one where at its peak of about AUD$0.16 in mid 2021, is now pretty much at its low (see Figure 1). The share price has moved since the latest release which appears to be giving the market some optimism.
Figure 1: The share price chart for Venture Minerals Limited (ASX: VMS) over the last 3 years. (Source: Commsec)
For Noel, the market is generally not a direct reflection on the perceived valuation of the company. In the exploration sector, this is more relevant as the potentials are never calculable.
The current market capitalisation is around AUD33M. Some pundits may say that this is high for an explorer, but one has to understand that the company has an iron ore resource that is at a mining stage plus a Tin and Tungsten resource that is at a Feasibility Study stage.
What's up with Boron?
The Boron story is going to be a big asset for Venture. In fact, one could say Venture is in the big leagues in spite of pending questions about economic volume or its recoverable process.
The input credit and the potential ability to recover more tin in the process is the game changer for Venture Minerals.
When you look at the major mining projects, it is very often the input credits of other products in the mine that makes the profitability of the mine. A good example is Olympic Dam. By far the biggest single mine in the world, it is the myriad of other metals that have extended the life of the mine.
Tune in to what Andrew Radonjic, Managing Director of Venture Minerals Limited (ASX: VMS) has to share about the company's Age of Boron.
Listen to Mr. Radonjic here:
00:00 Start
00:20 Introduction
01:20 About Venture Minerals and Boron
04:14 Tin-rich borates in Mount Lindsay
12:02 Any potential metallurgical issues?
14:57 How much can be recovered from the cassiterite?
19:56 Uses of boron
23:18 Market shifts?
28:57 News flow
30:22 Why VMS?
31:56 Conclusion
What's there to get excited about the Mount Lindsay Mineral Province?
Noel is enthusiastic about this company, and for good reason.
Those in the mineral exploration industry will well know that it pays to identify which company has the best possible potential to bear fruits. For Noel, Venture fits the bill. Their Thor project caught his attention from the very beginning and the latest news on Thor is that the Joint Venture partner has now identified two new priority targets.
Mount Lindsay Project
Venture Minerals is currently working on a Feasibility Study for the Mount Lindsay project. Patience is a virtue in this industry. This process will take time as they develop new concepts. What is noteworthy is the potential endowment of the Province. Look at the latest summarised geological plan (Figure 2). It clearly shows the Mount Lindsay Mineral Province is well mineralised. There is a suite of metals that are being found. For this to happen, you need a mineral system that is sufficiently powerful and endowed to be present.
Figure 2: Mount Lindsay Project: Geology Map showing High Grade Tin-Tungsten Targets and Tin-Boron Skarns
Samso's Conclusion
Venture Minerals has been through a wild ride over the two years. There is no denying that there are shareholders who are disappointed with the journey lately but there are also shareholders that have bought at the lows and exited with a handsome loot.
The introduction of the Boron story is exciting. This could be the game changer for Venture. This will create a new dimension for the company as when you look at the market for Boron, it will be an eye opener. If the oncoming data about what Venture have in terms of the Boron is positive, we will be in for another ride.
Whichever shareholder you are, there are also some realities that make VMS a well balanced investment. When you look at the portfolio of projects, they are placed in every stage of the exploration game. You have early stage greenfield exploration such as Kulin and Golden Grove North. Thor which is in a joint venture with Chalice Mining is being explored but is free carried as Chalice is earning into the project.
Mt Lindsay and the Riley iron ore project is the next step up. Mount Lindsay has greenfield to "development". Riley is at mining stage. Riley is waiting for the right market timing and can be turned on when the time arrives.
So Noel's thoughts on a company like this is, "it's hedged at all ends". There are not too many companies in the sector with this kind of portfolio. Noel has spoken to many and he will be surprised that there is more than a handful with the well spread of projects like Venture Minerals.
When you have been in the sector for a long time, you appreciate these kinds of odds. For this reason, Noel thinks that at market cap of 40M, Venture is definitely worth doing some lengthy research.
Andrew Radonjic has been in this game for a long time and when you look at the price chart in Figure 1, the risk of investing in the company is not ambiguous. One may say you can go to the casino and have the same odds, but as all investors in this sector, we beg to differ.
Research and understanding your risk management is the key.
Understand the geology, understand the upside and downside and understand your own risk capability. For these reasons, Noel strongly recommends reaching out to Mr. Radonjic and getting him to give you the low down on the company.
About Andrew Radonjic
Qualifications: BAppSc (Mining Geology), MSc (Mineral Economics), MAusIMM
Mr. Radonjic is a geologist and mineral economist with over 35 years of experience in mining and exploration, with an initial focus on gold and nickel in the Eastern Goldfields of Western Australia. Andrew has fulfilled a variety of senior roles which gave rise to three gold discoveries, totalling in excess of 3 million ounces in resources and resulting in 1.5 million ounces being produced. Since 2006 Andrew has been an executive director with Venture Minerals, which he co-led during the discovery of the Mount Lindsay Tin-Tungsten deposit in North-West Tasmania. He is also a founding co-director of Blackstone Minerals and the non-executive Chairman of Codrus Minerals.
About Venture Minerals Limited
Venture Minerals Ltd has refocused its approach to developing the Mount Lindsay Tin-Tungsten Project in northwest Tasmania, already one of the world's largest undeveloped Tin-Tungsten deposits. With the recognition of Tin as a fundamental metal to the battery revolution and Tungsten being a critical mineral, Venture has commenced an Underground Feasibility Study on Mount Lindsay that will leverage off the previously completed open-pit feasibility work. At the neighbouring Riley Iron Ore Mine, the mine is prepared for a quick restart should the market conditions become favourable. In Western Australia, Chalice Mining (ASX: CHN) recently committed to the second stage of the JV which requires a further $2.5 million of expenditure over the next two years to earn a further 19% interest (for a total of 70%) in Venture’s South West Project. At the Company’s Golden Grove North Project, downhole EM has delineated a large conductor under High Grade Zinc-Copper-Gold drill intersections within the 5km long Volcanogenic Massive Sulfide Target Zone, along strike to the world class Golden Grove Zinc-Copper-Gold Mine. Venture has a significant Nickel-Copper-PGE landholding at Kulin with two highly prospective 20-kilometre long Ni-Cu-PGE targets within the Kulin Project.
Contact Venture Minerals Limited
Suite 3, Level 3
24 Outram Street, West Perth
Western Australia 6005
P.O. Box 1175,
West Perth, WA 6872
t/ +61 (08) 6279 9428
Disclaimer
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About the Author
Noel Ong, CEO of Samso tells compelling stories by engaging business leaders to reveal insights beneficial to the investment community.
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