{australien_flagge}As you can see, war and inflation fears can be strong drivers of stock prices, at least when it comes to vital resources like potash or wheat. Nickel stocks have also been in focus recently. Now copper seems to follow. Several Australian copper juniors provided a foretaste this week with price jumps of 100% to 200%: Culpeo (CPO), Tempest Minerals (TEM) and Recharge (REC). The mere prospect of drilling success has boosted the share prices – assay results are still pending for the above-mentioned stocks.
Already, the mining investment community in Perth is speculating on which might be the next copper high-flyer. “Tennant Minerals (ASX: TMS; FRA: UH7A) has been a frequent response from mining circles in Perth,” is the response from Barry FitzGerald, the longtime author of a weekly column on the influential site https://www.resourcesrisingstars.com.au. FitzGerald is one whose voice carries weight, having reported on the extractive industries for 30 years. In fact, he is the first recipient of the Diggers & Dealers Media Award in 2003 is a committee member of the Melbourne Mining Club, a nonprofit organization formed to promote debate in the industry.
We can well understand his arguments: Tennant Minerals, unlike the aforementioned companies, has already presented high-grade assay results from its discovery, including 50 meters of 2.7% Cu and 0.52 g/t gold. Buoyed by the discovery, the company raised A$4.5 million in a placement this week – without the usual options. Demand was apparently huge (>A$10 million) and there were some investors who got nowhere near the allocation they wanted. Incidentally, the price of the placement was AUD 0.045. When the trading halt was announced, the stock was trading at AUD 0.058. Trading is expected to resume on Monday. Bets are being taken on how the stock will open.
Otherwise, FitzGerald recites the familiar facts we’ve already reported on www.goldinvest.de: “Bluebird is in a good neighborhood. The historic Peko mine, 20 km to the west, produced 147,000 tonnes of copper at a grade of 4% and 414,000 ounces of gold at a grade of 10 g/t, while the neighboring historic Nobles Nob mine yielded 1.1 million ounces of gold at an average grade of 17.3 g/t.”
Figure 1: Cross-section of recent high-grade copper-gold discovery at the Bluebird brownfield project in the Northern Territory.
As reported, Tennant Creek has already announced another drilling program at the Bluebird discovery. The company intends to test the upward and downward extension of the high-grade ore body. Specifically, geologists believe that previous diamond drilling at Bluebird has only penetrated the transition to primary sulfide mineralization, so the high-grade copper-gold shoots at Bluebird could be just the upper zone of a much larger, deeper deposit.
In addition, Tennant has now identified twelve other targets that have a similar geopyhsical signature to Bluebird. This regional Blue Sky will be further refined during the upcoming campaign using drone-based surveys (see Figure 2).
Figure 2: The Bluebird discovery may have siblings – and certainly ones larger than Bluebird itself. This is the exploration thesis of Tennant Minerals.
Conclusion: Tennant Minerals happens to come along at just the right time with its high-grade copper-gold discovery. There are two scenarios for further exploration in our view. The first is that the Bluebird discovery could grow into a stand-alone deposit. The second scenario is that Tennant Minerals finds more Bluebirds – let’s call it the Blue Sky scenario. Both options are exciting. We’ll stay tuned to Tennant Minerals.
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According to §34b WpHG and according to paragraph 48f paragraph 5 BörseG (Austria) we would like to point out that principals, partners, authors and employees of GOLDINVEST Consulting GmbH hold or may hold shares of Tennant Minerals and therefore a possible conflict of interest exists. We also cannot exclude that other stock letters, media or research firms discuss the stocks we recommend during the same period. Therefore, symmetrical information and opinion generation may occur during this period. Furthermore, there is a consulting or other service contract between Tennant Minerals and GOLDINVEST Consulting GmbH, which means that a conflict of interest exists.
