FYI. Great read from today. Exciting times ahead for all who believe. Hope the momentum can be sustained by some news soon.
Mining NewsTuesday 19 February 2019
Venturex has a spring in its stepA RISING copper price and a lack of global copper development projects bodes wellfor Venturex Resources’ chances of success.
A report by RFC Ambrian, released in November, highlighted the dearth of copperdevelopment options globally, which left established copper producers with fewacquisition options.
That sentiment was echoed by Morgan Stanley in a bullish report released last week.MS sees copper rising to US$3.12 per pound by the end of the year, up from itscurrent level of $2.87/lb.
In addition, the bank sees a 2.4% drop in mine production this year and a 1.6% risein demand, which "is sufficient to tighten the market, jolting it from its finely balancedstate into outright deficit".
Those points might explain the strong run in Venturex's share price so far this year.Shares in the company, which are 19%-owned by leading mid tier gold producerNorthern Star Resources, are up by more than 42% since the start of January. It isunderstood there may have been some asset-level interest in Venturex's SulphurSprings copper-zinc project in Western Australia'sPilbara region.
Managing director AJ Saverimutto told the Resources Rising Stars Summer Series inMelbourne last week that a partial project sell-down was an option underconsideration.
The company has been working with BurnVoir Corporate Finance on funding theproject and has reported strong interest.
"We've got nearly 11 banks in there," Saverimutto said."We've also got the option to do bonds."
The Australian government's Northern Australia Infrastructure Facility is alsoconsidering funding the project.
Saverimutto said he had also held talks with 20-30 potential offtakers.
Venturex released a robust definitive feasibility study for Sulphur Springs in October.
Total capital costs are estimated to be A$169 million, including pre-strip, for a 1.25million tonne per annum operation to produce around 15,000t of copper metal,35,000t of payable zinc per annum.
The project has a mine life of 10.3 years, based on a life-of-mine inventory of 12.6Mtat 1.4% copper and 3.6% zinc, or a copper equivalent grade of 3.5%.
Saverimutto said it was equivalent to 5 grams per tonne gold."Five grams per tonne gold is high for an open pit," he said.
The company has also identified potential ways to lower capital costs, includingusing gas instead of diesel.
A project manager is expected to be appointed to oversee Sulphur Springs'development by the end of the month.
Earlier this month, Canaccord Genuity lifted its price target for Venturex from 55c to60c per share.
"While the project offers robust margins at conservative metal prices, it also offersexceptional leverage to higher metal prices, and with a company-defining yearahead, we maintain a speculative buy recommendation," analyst Tim McCormacksaid.
Venturex shares last traded at 25c.
