SP Angel Morning View -Today’s Market View, Monday 2nd December 2024

Base metals steady as copper struggles to climb above $9,000/t

MiFID II exempt information – see disclaimer below

Oxford Mining Club Winter Drinks – TONIGHT – from 5:00pm

• Oxford Mining Club Winter Drinks
  • Waldorf Hilton Hotel, Aldwych, London
• There are a few miners in town and the drinks evening promises to be a major event.
• We are sponsoring so please feel free to contact us for a discount code to the drinks.
• To register for Winter Drinks: https://www.eventbrite.co.uk/e/the-oxford-mining-club-winter-drinks-reception-tickets-1073600751749?aff=oddtdtcreator

Aterian plc* (ATN LN) – Sedimentary-hosted copper grades at Tata project in Morocco

Condor Gold* (CNR LN) – Acquisition timetable starts following receipt of two non-binding offers

Castillo Copper (CCZ LN) – Disposal of NSW copper project to focus on Harts Range uranium, niobium and rare-earths project

De Grey Mining* (DEG AU) – All-share takeover from Northern Star Mining for A$5bn

East Star Resources (EST LN) – Geochemical soil anomalies defined in the Snowy licence, Kazakhstan

Goldstone Resources* (GRL LN) – Convertible note update

Orosur Mining* (OMI LN) – Assays from Pepas return 67m at 5.6g/t Au

Power Metal Resources* (POW LN) – Update on Uranium exploration

Strategic Minerals* (SML LN) – Tin & tungsten retained as ‘Critical’ minerals for the UK

Thor Explorations (THX LN) – Segilola exploration results

Base metals steady as copper struggles to climb above $9,000/t

• Metals were red this morning, with copper at $8,991/t, zinc sliding 0.5% and aluminium also weak.
• Nickel fell 1.2% to $15,820/t.
• Chinese benchmark bond yields fell below 2% for the first time in 22, with persistent deflation weighing on China.
• Beijing’s recent US$1.4tn stimulus package has failed to boost market sentiment, weighing on the Yuan and metal purchasers’ in the international market.
• Iron has also been steady for the past month or so, hovering above the $100/t market.

Gold ($2,634/oz) hovers lower as markets look to Non-farm payrolls on Friday

• Gold prices have been hovering below $2,650/oz having staged a sharp rally on Friday.
• The rally tracked a jump in US Treasuries, with the 10 year yield sliding below 4.2% from 4.5% in October.
• The dollar rally has paused, after the Yen climbed on more hawkish expectations for the Bank of Japan.
• Non-farm payrolls on Friday will be closely watched, following last month’s 12k additions, thought to be impacted by hurricanes.
• Reuters-polled economists expect 183k additions, with a beat expected to weigh on gold, whilst a miss may pressure yields and lift gold.

Exploration within the mining sector rose in October according to S&P data

• A recent rise in financing activity led by gold miners and explorers in October points towards are recovery in exploration
• While exploration expenditure has risen from a Summer low the October figure remails 5% down yoy, principally due to a falloff in exploration for lithium along with industrial minerals and base metals.
• Base metals and other speciality commodities also saw substantial recovery from low levels in September
• The S&P Global Market Intelligence Pipeline Activity Index rose 45% mom in October.
• Funds raised by junior and intermediate companies nearly quadrupled to $1.61bn in October,
• All commodity groups saw gains, led by gold with the total number of transactions rising to 315 from 198 in September,
• There were 97 transactions >$2m in October from just 39 in September with five deals > $50m vs just one in September.
• The gold sector saw 177 financings in October vs 101 in September with two transactions of >$50m in October.
• Base Metals saw a 150% jump to $411m raised in October led by copper with a 260% rise to $311m in 70 transactions.
• Drilling: the number of holes drilled fell 19% despite a 23% rise in drilling for gold as speciality metals drilling holes fell 64%.
• We now expect the number of holes and meters drilled to rise following the uptick in financing.

We recommend investors consider: Capital Drilling, Ausdrill, GeoDrill. Foraco International, Major Drilling Group, Master Drilling Group, Mitchell Services, Orbit Garant Drilling

Economics

US – President elect Donald Trump threatened 100% tariffs for BRICs countries if countries start increasingly trade away the US$.

• “We require a commitment from these Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar or, they will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy,” Trump wrote on his social media platform.

China – Private manufacturing sector gauge beat estimates in November showing an accelerating growth in the sector.

• Both domestic and export new orders climbed strongly during the month.
• Survey showed better underlying demand conditions as well as increased stockpiling ahead of US election results.
• Some front loading may continue on expectations for a potential of increased tariffs once new administration in the US comes in next January.
• The labour market remained in a contraction.
• Manufacturing PMI (Nov/Oct/Est): 51.5/50.3/50.6

Germany – VW workers are protesting at nine Germany plans over pay and job cuts.

• Production is expected to be suspended for several hours today.
• The Company said it had taken “targeted measures in advance to ensure emergency supplies” and keep the impact on production “as low as possible”.
• The Company has been struggling with rising costs and slowing demand amid increased competition from overseas producers including Chinese manufacturers.
• European auto manufacturers have been under pressure today extending annual share price declines with Renault down >4% on fears the French government may collapse over budget gridlock while Stellantis that owns Peugeot, Fiat and Jeep was down nearly 8% after announcement that CEO Carlos Tavares is stepping down.

France – France’s far right National Rally will back a no-confidence vote against the government in the coming days unless there is a “last minute miracle”, RN President said.

• Previously, Marine Le Pen lading NR gave PM Michel Barnier until Monday to meet their budget demands.
• Barnier dropped plans to increase power taxes with NR also looking for the government to index all pensions in line with inflation that authorities were reluctant to do to cut spending.
• EUR is trading lower this morning hovering around 1.05 levels.

UK – Property prices climbed at the fastest pace in two years supported by solid wage growth and falling mortgage rates, latest Nationwide data showed.

• Prices were up 3.7%yoy in November, up from 2.4% the previous month.
• That was the strongest reading since November 2022.

Georgia – Opposition leader was arrested early on Monday amid a stand off between protesters and police.

• The protests were sparked by the government’s announcement last week it was suspending talks on joining the EU.
• Tensions have been building for months as the ruling party Georgian Dream declared victory in parliamentary elections and the Parliament passing laws on ‘foreign agents’, a highly selective and discriminative bit of legislation.
• Critics called election results invalid citing credible exit polls that projected 41-42% of the vote for Georgian Dream that ultimately won 54%.
• One of the commentators called current stalemate in Georgia as a choice between following Belarus route post protests in 2020 or potentially Ukraine in 2013-14.

Currencies

US$1.0501/eur vs 1.0574/eur previous. Yen 150.17/$ vs 150.14/$. SAr 18.150/$ vs 18.059/$. $1.269/gbp vs $1.271/gbp. 0.649/aud vs 0.651/aud. CNY 7.271/$ vs 7.234/$.

Dollar Index 106.43 vs 105.90 previous

Precious metals:         

Gold US$2,628/oz vs US$2,656/oz previous

Gold ETFs 83.1moz vs 83.2moz previous

Platinum US$940/oz vs US$944/oz previous

Palladium US$969/oz vs US$989/oz previous

Silver US$30.2/oz vs US$30.6/oz previous

Rhodium US$4,575/oz vs US$4,575/oz previous

Base metals:   

Copper US$8,929/t vs US$9,016/t previous

Aluminium US$2,580/t vs US$2,607/t previous

Nickel US$15,790/t vs US$15,990/t previous

Zinc US$3,076/t vs US$3,053/t previous

Lead US$2,059/t vs US$2,076/t previous

Tin US$28,600/t vs US$28,730/t previous

Energy:           

Oil US$72.6/bbl vs US$72.9/bbl previous

• The US Baker Hughes rig count was down 1 to 582 units last week (-43 or 7% y/y), with oil rigs down 2 to 477 units (-28 y/y) and gas up 1 to 100 units (-16 y/y), as the State of Wyoming lost 1 rig w/w to 18 units (+2 y/y).

Natural Gas €49.0/MWh vs €46.0/MWh previous

Uranium Futures $77.0/lb vs $77.1/lb previous

Bulk:   

Iron Ore 62% Fe Spot (cfr Tianjin) US$105.5/t vs US$104.6/t

Chinese steel rebar 25mm US$491.6/t vs US$495.9/t

HCC FOB Australia US$204.8/t vs US$204.0/t

Thermal coal swap Australia FOB US$134.5/t vs US$138.0/t

Other:  

Cobalt LME 3m US$24,300/t vs US$24,300/t

NdPr Rare Earth Oxide (China) US$56,867/t vs US$57,021/t

Lithium carbonate 99% (China) US$10,314/t vs US$10,367/t

China Spodumene Li2O 6%min CIF US$790/t vs US$790/t

Ferro-Manganese European Mn78% min US$985/t vs US$985/t

China Tungsten APT 88.5% FOB US$338/mtu vs US$338/mtu

China Graphite Flake -194 FOB US$440/t vs US$440/t

Europe Vanadium Pentoxide 98% US$5.0/lb vs US$5.0/lb

Europe Ferro-Vanadium 80% US$26.3/kg vs US$26.3/kg

China Ilmenite Concentrate TiO2 US$303/t vs US$305/t

China Rutile Concentrate 95% TiO2 US$1,121/t vs US$1,127/t

Spot CO2 Emissions EUA Price US$64.9/t vs US$64.9/t

Brazil Potash CFR Granular Spot US$287.5/t vs US$287.5/t

Germanium China 99.99% US$2,825.0/kg vs US$2,825.0/kg

China Gallium 99.99% US$430.0/kg vs US$430.0/kg

Battery News

Reeves’ luxury vehicle tax to hit EVs

• Under Chancellor Rachel Reeves’ plans, EVs registered after 1^st April 2025 with a list price of more than £40,000 will liable for additional vehicle excise duty (VED).
• It will cost £425/year and is liable for five years from the start of the second year of ownership.
• All EV owners, no matter the cost of the vehicle, will have to pay standard VED for the first time from next year.
• It will cost £10 in the first year of registration and then the standard £195 a year after that.
• Industry groups are continuing to lobby Rachel Reeves on the basis that £40,000 does not necessarily equate to luxury in the EV market as the list price is quite often higher than that of their petrol/diesel counterparts.
• Research by the Society of Motor Manufacturers and Traders (SMMT), estimates that 70% of new EVs will be liable for the luxury tax.

China continues to dominate global EV and battery markets

• CATL and BYD continued as leaders in the global EV battery market with a combined share of 52.2% in Q3.
• CATL were responsible for 35.2% of those shipments, with BYD contributing 17.0%.
• Global battery shipments reached 258.5GWh in Q3, according to SNE Research.
• In the battery EV market, Tesla just about maintained a lead over BYD with an 18.5% and 17.5% share respectively.
• In the global plug-in hybrid market, China accounted for 80% of sales, with BYD holding a market share of 40.1%

BYD’s second car carrier operational, carrying 5,000 EVs to Europe

• BYD Changzhou is the automaker’s second vessel, owned by BYD, to export EVs to Europe and other global markets.
• The vessel is on its way to Europe having loaded 5,000 BYD EVs at the ports of Lianyungang and Taicang.
• BYD Changzhou has a load capacity of 7,000 vehicles.
• The company expects to have seven other roll-on-roll-off vessels in operation over the next two years.

Company News

Aterian plc* (ATN LN) 52.5p, Mkt Cap £4.9m – Sedimentary-hosted copper grades at Tata project in Morocco

(Rio Tinto jv has the option to invest US$7.5m in two stages to earn up to 75% in the HCK lithium and tantalum hard rock prospect in Rwanda)

(Rwanda: Aterian holds an effective 100% stake in the Musasa Mining Licenses plus a 70% interest in Kinunga Mining Limited which holds the HCK licence alongside HCK Mining Company Limited which has a 30% interest.)

(Botswana: Aterian also holds a 90% in Atlantis Metals which holds its licenses in Botswana). (Morocco: Aterian holds 100% on all licenses held in Morocco)

• Aterian, report results from their Tata copper project, in the western Anti-Atlas Mountains in Morocco, ~165km southeast of Agadir and 50km from Managem’s new Tizert copper mine.
• Tizert resource is ~57mt 1.03 % Cu and 23 g/t Ag Tizert mine.
• Visible copper mineralisation is now seen extending within two mineralised stratigraphic horizons along an 18km strike (32km in total). A further 13km of mineralised strike remains untested.
• Mineralisation across up to 8.5m apparent thickness is seen within the basal Adoudou Formation
• Sampling shows up to:
  • 1.50 % Cu, 0.97 Cu %, and 0.32 % Cu from an 8m thick carbonate sequence,
  • 1.02 % Cu, 0.51 % Cu, and 0.48 % Cu from an 8.5 m thick carbonate sequence,
  • 0.94 % Cu returned from younger Lower Cambrian sediments.
  • 7.02 % Cu within a 2m mineralised interval and 0.87 % Cu over 8m apparent thicknesses in previous sampling.
• Additional discoveries on the Tata project include copper mineralisation of up to 8.5 m and 6 m apparent thicknesses in the south and north of the project in addition to 8m with 0.87% copper previously reported apparent mineralised thicknesses.
  • “The copper grades, as reported, are considered economic and in line with expectations for advancing a large-scale project that demands target generation and drilling.”

Conclusion:  Today’s results show Tata to be a promising prospect in Morocco.

*SP Angel acts as Broker to Aterian Plc

Condor Gold* (CNR LN) 31.5p, Mkt Cap £49m – Acquisition timetable starts following receipt of two non-binding offers

(Condor Resources holds 100% of the La India gold mining project)

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• In response to press speculation, Condor Gold has confirmed that it has received two non-binding offers “which may lead to an offer for the entire issued and to be issued capital of Condor”.
• The potential acquirers are reported to be the Canadian listed Calibre Mining, whose operations include the Limon gold mine in Nicaragua, and AIM Listed Metals Exploration which operated the RunRuno project in the Philippines.
• Condor Gold cautions that there “can be no certainty that any firm offer will be made, nor as to the terms on which any firm offer might be made”.
• Condor Gold first announced that it would entertain approaches from potential acquirers in November 2022.
• Condor Gold’s principal asset is its fully permitted advanced development La India gold project in Nicaragua and the surrounding exploration ground.
• The 2022 feasibility study for La India describes the development of an open-pittable mineral resource of “8,693 kt at 3.2 g/t gold for 893,000 oz gold in the indicated mineral resource category and 3,026 kt at 3.0 g/t gold for 291,000 oz gold in the inferred mineral resource category … [with an additional] … underground MRE … [of] … 979 kt at 6.2 g/t gold for 94,000 oz gold in the indicated mineral resource category and 5,615 kt at 5.0 g/t gold for 98,000 oz gold in the inferred mineral resource category”.
• The 2022 Feasibility Study for the development of an open-pit mine at La India showed that, at a gold price of US$1,600/oz (currently ~US$2,580/oz), an initial capital investment of US$105.5m generates an after-tax NPV_5% of US$86.9m and IRR of 23% from a project producing an average of over 81,000oz of gold annually for the first six years of an 8.4year mine life.
• Sensitivity analysis disclosed by the company in September 2022 indicated that at a higher gold price of US$2,000/oz, still well below current levels, post-tax NPV_5% increases by around 2.4x, to US$205.2m generating an IRR of 43%.
• Today’s announcement confirms that Metals Exploration and Calibre Mining “are required, by no later than 5.00 p.m. on 29 December 2024, being 28 days after the date of this announcement, to either announce a firm intention to make an offer for Condor in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer”.

Conclusion: Condor Gold has now secured two non-binding offers requiring formal confirmation or withdrawal by 29^th December.  Current gold prices are substantially higher than those used by the company in its 2022 Feasibility Study and we await news of any binding offers from the two contenders with interest.

*SP Angel acts as a broker to Condor Gold

Castillo Copper (CCZ LN) 0.55p, Mkt Cap £8m – Disposal of NSW copper project to focus on Harts Range uranium, niobium and rare-earths project

• Castillo Copper confirms the disposal of its Cangai copper mine project in northern New South Wales to ASX listed Infinity Mining.
• The transaction was announced in October and has now received the approval of Infinity Mining’s shareholders.
• Infinity Mining will issue “40m shares and 20m options (5-years @ $0.07 exercise price) as consideration for the acquisition”.
• Chairman, Ged Hall, explained that “This is excellent news as it coincides with CCZ shortly changing its name to New Frontier Minerals and rechannelling efforts into developing the Harts Range Uranium, Niobium and Rare Earth Elements Project in the Northern Territory”.
• The refocussing of the company has seen the sale of its Broken Hill West project in NSW and the company retaining its “non-core assets – Broken Hill East Project in NSW and Mkushi Copper Project in Zambia – until they are sold”.

Conclusion: The disposal of the Cangai project progresses the company’s strategic focus on its Harts Range project in the Northern Territory.  We await news on progress of exploration there and on the fate of the remaining non-core arrest in NSW and Zambia.

De Grey Mining* (DEG AU) A$1.97, Mkt Cap A$4.7bn – All-share takeover from Northern Star Mining for A$5bn

• De Grey, which has been developing the Hemi project in Western Australia’s Pilbara Craton, has agreed a takeover from Northern Star Mining.
• De Grey shareholders will receive 0.119 new Northern Star shares, a 37% premium to closing price on Friday.
• The acquisition values De Grey at A$5bn based on Northern Star’s closing price on Friday.
• Hemi is expected to produce 530kozpa over the first 10 years of the 12 year LOM.
• Hemi reserves stand at 121mt at 1.5g/t Au for 6moz, with resources of 310mt at 1.4g/t Au for 13.6moz.
• Federal and state environmental approvals are pending.
• The Hemi DFS currently expects a 10mtpa plant with 800ktpa POX circuit.
• DFS anticipates a c.US$870/ounce AISC.
• Pro forma reserves to stand at 27moz Au.
• Deal is expected to close April/May 2025.

*An SP Angel analyst holds shares in De Grey Mining

East Star Resources (EST LN) 1.25p, Mkt Cap £4.4m – Geochemical soil anomalies defined in the Snowy licence, Kazakhstan

• East Star Resources reports that geochemical soil sampling has outlined extensive anomalies on its Snowy licences in Kazakhstan.
• A 5km x 1km anomaly has been identified in an area which coincides with an “alteration signature from the multispectral imagery and directly along strike from an artisanal gold mine” while second 2km x 2km anomaly “with porphyry potential, has been identified through strong molybdenum (“Mo”) and bismuth (“Bi”) pathfinder elements”.
• The company considers that the results of exploration on the Snowy licence area “warrants further exploration for potential epithermal gold and copper porphyry systems”.
• Follow-up “verification of the targets and geological mapping over the areas identified by the soil geochemistry … In the Central Target area … will aim to identify veining consistent with a porphyry system at explorable depth, whilst mapping of the East Target … will look for veins and textures supportive of epithermal mineralisation”.
• “If the field mapping supports the target styles of mineralisation, a likely next step would be geophysics in the form of an Induced Polarity (IP) survey designed to directly target disseminated sulphide mineralisation”.
• Chris van Wijk, Technical Director, said that the “geochemical data is consistent with that seen proximal to other mineralised systems and worthy of further exploration
• Today’s announcement outlines the geological context of the Snowy licence area describing its location “on the western end of the paleozoic Balkash-Ili volcanic arc … [which] … is known to host multiple copper and gold rich porphyry and skarn deposits with the best-known examples including Aktogai-Aidarly and the Kounrad mine (~650Mt @ 0.59% Cu), which is located some 230km to the south of the licence”.

Conclusion: Identification of two coherent geochemical anomalies provides a foundation for future exploration of the Snowy licence area of Kazakhstan with initial follow-up  expected to include geological mapping and induced-polarisation geophysics.

Goldstone Resources* (GRL LN) 1.2p, Mkt Cap £8m – Convertible note update

• The Company released an update regarding an unsecured Bleu Gold International convertible loan note due for repayment.
• £2.7m in principal and accrued interest was due for repayment on 30 November.
• The note issued in January 2023 with a nominal amount for £2.4m and a 3.25p conversion price.
• Under the terms, the Company has five business days to complete the payment.
• The Company is in discussions with the lender and other parties regarding a potential variation and extension to the terms.

*SP Angel acts as broker to Goldstone Resources

Orosur Mining* (OMI LN) 5.6p, Mkt Cap £11m – Assays from Pepas return 67m at 5.6g/t Au

(Anzá 100% indirect ownership proposed)

• Orosur has now received assay results from its first hole at Pepas following the reacquisition of Anza from Newmont/Agnico Eagle.
• Orosur is currently drilling an 800m programme over six to seven holes, aiming to identify the geometry of the Pepas mineralisation.
• The Company has now drilled the first hole of this new programme, PEP012.
• The hole was collared adjacent to high-grade artisanal mining tunnels and intended to scissor the initial discovery hole to develop a better understanding of geological orientation.
• PEP012 Result:
  • 66.75m at 5.64g/t Au from surface
  • Including 2.7m at 11g/t Au, 2m at 7g/t Au, 1.45m from 11g/t Au and 12m at 10g/t au
• The Company suggests that ‘lithologies and structures in the hole are indicative of a major epithermal system and warrant further study.’
• The hole reportedly identified similar mineralised tufts as seen at PEP001, with multiple fractures, veinings, sulphides and alteration identified.
• The hole mineralisation ended at 67m downhole depth, with the hole terminated at 93m.
• A second hole was drilled from the same pad, rotated 51 degrees eastward to explore for mineralisation and structural controls from an alternative direction.
• A third hole will be drilled from a different pad.

Conclusion: Orosur reports highly encouraging results from their recently reacquired Anza project in Colombia, where they are drilling the Pepas target. Drilling is primarily intended to identify the geological orientation of high-grade mineralisation identified from a previous programme. Today’s results are very positive given the grade, width and depth of mineralisation. Importantly, management expects the two subsequent holes should provide further understanding of the orientation of mineralisation, which should support step out drilling to gain an understanding of the scale of potential deposit.

*SP Angel acts as Nomad and Broker to Orosur Mining

Power Metal Resources* (POW LN) 15.2p, Mkt cap £17m – Update on Uranium exploration

CLICK FOR PDF

• Power Metals provides an update on its Drake-Lake Silas project.
• Additionally, the Company has renamed its exploration JV with UCAM to Fermi, recognising nuclear reactor physicist Fermi Exploration.
• The Company has gained airborne magnetic and gravity geophysical surveys for Drake Lake-Silas at no cost.
• The data shows a coincident gravity low offset from a magnetic high.
• This is interpreted as potentially being an IOCG-mineralised intrusive body.
• Previous rock chip sampling showed elevated copper and uranium.
• The Company has now identified five targets for additional work, with assay results pending from fieldwork sampling in September.
• The 2024 fieldwork season at Drake Lake included biogeochemical samples, 299 soil samples and 106 radon samples at the Duck Lake Target.

Conclusion: Power Metals and JV partner UCAM continue to progress their uranium exploration JV, now renamed Fermi. Geophysics has identified a gravity anomaly with potential for an IOCG-style deposit. Assay results from soil sampling is pending and we look forward to further updates going forward.

*SP Angel acts as Nomad and Broker for Power Metal Resources

Strategic Minerals* (SML LN) 0.28p, Mkt Cap £5.0m – Tin & tungsten retained as ‘Critical’ minerals for the UK

• On Friday, Strategic Minerals drew attention to the publication of the UK’s 2024 assessment of Critical Minerals.
• The Assessment, published by the British Geological Survey, updates the 2021 ‘UK Criticality Assessment’ which identified 21 minerals and expands the list to 34 minerals maintaining the place of both tin and tungsten, which are principal components of the company’s Redmoor project.
• Redmoor’s current “JORC (2012) compliant, mineral resource estimate of a High Grade Inferred Resource of 11.7 Mt at 0.56% Tungsten Trioxide (WO₃), 0.16% Tin, & 0.50% Copper” was issued in 2019 and recent additions to the exploration area and re-examination of the historic drilling suggest the potential for this to expand.
• Director, Peter Wale, said that the report makes “clear there is significant potential to continue to push for increased support for the establishment of domestic sources of critical minerals for metals that the UK is naturally endowed in, such as tungsten and tin”.
• The announcement also makes clear that Strategic Minerals, through its local subsidiary at Redmoor, Cornwall Resources Limited, was an active industry participant in the consultations leading to the ‘UK Criticality Assessment 2024’, published by the UK Critical Minerals Intelligence Centre.

Conclusion: Critical minerals are designated in many jurisdictions, including the UK, EU, USA, Australia and Japan and we are not surprised to see tin and tungsten continue to feature.  Following recent expansions of the exploration area around Redmoor and review of the historic drilling we look forward to further news on Strategic Minerals’ plans to investigate the potential to expand the resource base.

*SP Angel acts as Nomad and Broker to Strategic Minerals

Thor Explorations (THX LN) 17.4p, Mkt Cap £111m – Segilola exploration results

• Nigerian gold producer Thor reports exploration results from their Segilola gold mine, where they are aiming to boost reserves underground.
• The Company has been drilling to target the down-plunge potential below the current mined open pit extents.
• Today the company reports true width intervals of:
  • SNMDD014: 2.1m at 3.5g/t Au from 299m
  • SNMDD015: 0.7m at 3.7g.t Au from 159m
  • SNMDD015: 2.1m at 1.2g/t Au from 121m
  • SNMDD016: 3.1m at 4.1g/t Au from 306m
  • SNMDD018: 1.4m at 3.9g/t Au from 232m
  • SNMDD019: 1.1m at 3.4g/t Au from 223m
• Company believes the ‘initial drilling results have validated the proof-of-concept high-grade targeting model.’
• Company believes that the minimum underground mining width can be achieved at a suitable grade.
• Company also believes there ‘is justification to continue with an expanded drilling programme.’
• Thor will also explore the potential to deepen the pit and extend the open pit mine life incorporating today’s results.
• Management will now conduct optimisation studies to incorporate the new drilling results alongside a higher gold price.

 LSE Group Starmine awards for Q3 commodity forecasting:

No.1 in Precious Metals: SP Angel mining team awarded No 1. ranking for Previous Metals forecasting in LSEG Quarterly Starmine Award for Reuters Polls Q3 2024

No.2 in Base Metals: SP Angel mining team awarded No 2. ranking for Base Metals forecasting in LSEG Quarterly Starmine Award for Reuters Polls Q3 2024

No.1 in Copper:  “The winner of the 2020 Fastmarkets Apex contest for copper was the team at SP Angel comprising John Meyer, Sergey Raevskiy and Simon Beardsmore, with an accuracy score of 93.8%”

No1. In Gold:  “SP Angel’s trio took the top spot for the gold price prediction throughout the year, with an accuracy score of 97.59%”

The SP Angel team also ranked 1st in Palladium, 3rd in Tin and 5th in Silver in the fourth quarter of 2020

Analysts

John Meyer – John.Meyer@spangel.co.uk – 0203 470 0490

Simon Beardsmore – Simon.Beardsmore@spangel.co.uk – 0203 470 0484

Sergey Raevskiy –Sergey.Raevskiy@spangel.co.uk – 0203 470 0474

Sales

Richard Parlons –Richard.Parlons@spangel.co.uk – 0203 470 0472

Abigail Wayne – Abigail.Wayne@spangel.co.uk – 0203 470 0534

Rob Rees – Rob.Rees@spangel.co.uk – 0203 470 0535

Grant Barker – Grant.Barker@spangel.co.uk – 0203 470 0471

SP Angel                                                            

Prince Frederick House

35-39 Maddox Street London

W1S 2PP

*SP Angel are the No1 integrated nomad and broker by number of mining brokerage clients on AIM according to the AIM Advisers Ranking Guide (joint brokerships excluded)

+SP Angel employees may have previously held, or currently hold, shares in the companies mentioned in this note.

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SPA research ratings – Based on a time horizon of 12 months: Buy = Expected return of more than 15%, Hold = Expected return between -15% and +15%, Sell = Expected return