The hunt is on Multi-commodity, multi-project explorer Jindalee Resources Ltd. will not rest until it finds an investment opportunity worthy of its shareholders
In March, Perth-headquartered Jindalee Resources Ltd. (ASX: JRL) (“Jindalee”) told IRJ about the company’s hunt for its next big project; an investment opportunity warranting inclusion in its diverse portfolio which spans gold and iron ore (not to mention indirectly antimony and uranium). Throughout the year, Jindalee has forged ahead and searched both inside Australia and as far west as Morocco, as far north as Mongolia and as far east as Brazil, while maintaining its solid cash position despite market fragility and global economic uncertainty.
In keeping with the company’s clear idea of what will make a worthwhile undertaking, the search continues. As 2012 commences, all eyes are on where the team will find a quality asset meeting their criteria, honed by great technical expertise and team vision.
In its September quarterly, Jindalee states that it is confident these tireless efforts will be rewarded, and ahead of such a discovery, IRJ takes a look at how this company continues to safeguard shareholder financial commitment as it embarks on this exciting expedition.
Multiple opportunities in multi-commodities
Since listing in 2002, Jindalee has accrued an enviable reputation for portfolio-building, exploration and the handling of assets. As exemplified by the spin out of its former subsidiary, uranium explorer Energy Metals in 2005 (and the pleasing return Jindalee shareholders received from the friendly takeover by China Guangdong Nuclear Power Holding Company), this is a team that knows how to direct attention, time and funding to maximise opportunities and generate wealth for its shareholders.
With respect to the ongoing hunt, the company has maintained a strong platform to bring in new projects; finishing the September quarter with no debt, around $15 million in liquid assets (including approximately $8 million in cash and around $7.8 million held in shares in listed companies) and only 34.8 million shares on issue, offering investors attractive leverage should the search come to fruition.
Highlights from the company’s multi-commodity portfolio delivered more favourable outcomes, revealing the extent of existing projects housed within the company.
Jindalee in gold
At the Yilgangi project in the Eastern Goldfields (Jindalee 20 per cent interest project-carried to a Decision to Mine) (Newcrest 80 per cent and project management) the company and its joint venture partner are examining their options to maximise value.
At the Murchison project (a joint venture with Alchemy Resources with Jindalee’s 20 per cent interest free-carried to completion of a bankable feasibility study) excellent results at the Jeffery Well have indicated potential for large lode gold systems and narrow high-grade gold vein deposits, and a 3,600 metre infill drill program was underway at the time of reporting.
There is also the Mt Korong project in the northern Eastern Goldfields (Jindalee holds 87 per cent and manager status in the joint venture with Golden State Resources) and the group of tenements at Cardinia, 3 kilometres from Leonora (Jindalee 11 per cent free-carried through to completion of a bankable feasibility study, in a joint venture as part of Navigator Resources’ extensive Leonora Project holdings).
Jindalee in iron ore
At the Joyners project 30 kilometres west of Wiluna (where Jindalee holds 20 per cent interest now free-carried through to completion of a bankable feasibility study as part of a joint venture with Golden West Resources) September delivered a Proven and Probable reserve estimate for the entire iron ore project of 69.2 million tonnes at 60.3 per cent Fe, including 3.1 million tonnes at 61.7 per cent Fe of Probable Reserves; a project housing high grade, low impurity level mineralisation classified as Direct Shipping Ore (DSO).
Indirect and in good stead
Additional interests, indirectly filtering into the company’s multi-commodity portfolio, have also been bearers of good news throughout the year. Jindalee’s 10.1 per cent of issued capital (or 9.8 million shares) in Alchemy Resources (ASX: ALY) saw 2011 drilling at the Magnus project’s Central Bore prospect define a broad zone of gold mineralisation and highlight potential for a significant gold body through numerous high grade intercepts (including 9 metres at 7.2 grams per tonne, 9 metres at 7.8 grams per tonne and 4 metres at 25.8 grams per tonne).
Indirect uranium within the company portfolio has also been retained through Jindalee’s 14 million Energy Metals shares. Energy Metals continues to advance its ground across a number of different fronts.
The hunt in 2012
In retaining such a wealth of different interests within its portfolio—offering shareholders exposure to many projects, favourable means for de-risking interests, and maintaining a healthy balance sheet—Jindalee continues to seek out optimum value at every juncture. Its willingness to keep searching for the right next project is encouraging—demonstrating the team strength and focus involved in finding an opportunity worthy of its investors. As the company enters its tenth year since listing, a mere glance reveals that lining up the best opportunities towards maximising returns is something this group excels in. And if there’s one thing you can count on, it’s that when Jindalee’s next project takes shape, the company’s efforts will be celebrated.
www.jindalee.net
JRL Price at posting:
28.0¢ Sentiment: None Disclosure: Not Held
