TAW 0.00% 31.0¢ tawana resources nl

Article: AMAL - "Expect it to show up on investor screens now",...

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    Article: AMAL - "Expect it to show up on investor screens now", says Canaccord

    Following the maiden resource estimate, stockbroker Canaccord Genuity in Australia sent a note to clients. Excerpts from the note by Nathan McKay, its MD (Australian Sales):

    "The maiden resource at Bald Hill exceeds our expectations, and should more than support development of the project ... noting likelihood of low start up capex (A$30-40m) due to existing plant and infrastructure.

    Note that this resource will likely be supplanted by a larger estimate in the coming months once more drilling is factored in (target of 20-50Mt by end 2017).

    Unlike the rest of the sector TAW have locked in prices over 2018-2019 at US$880/t for 6% product, with development costs fully funded via the recent prepayment.

    Expect TAW/AMAL to show up on investor screens now with the maiden resource – with the project the next in line (GLOBALLY) to achieve concentrate production, this could see a further upward momentum for the stock/s. "

    Other points (the technical ones) from Nathan McKay's note:

    · Independent estimate of 12.8Mt at 1.18% Li2O and 158ppm Ta2O5 using 0.5% Li2O cut off (using a 200ppm Ta2O5 cutoff the tantalum resource grade increases to +300ppm Ta2O5).

    · 36% is in the indicated category – expect this to increase with more infilling of Inferred

    · High grade tantalum resource of 9Mt at 304ppm Ta2O5, including 5.7Mt at 311ppm Ta2O5 not included in the lithium resource (this compares to prior Tant resource of 3.4Mt at 315ppm)

    · Importantly, 80% of the reosurces occur in a 100m interval from 30m below surface – has postive implications for strip ratios

    · Resource only covers 20% of the Southern pegmatite swarm – significant potential exists to increase resource footprint (exploration target of 30-50Mt at 0.9-1.4% Li2O)

    · Feasibility study results imminent (mine scheduling was the last component to be completed for the study, which was pending the resource)
 
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