The Newswire

Your daily serving of financial goodness

Newcrest Mining Joins Alice Queen's Search for Next 'Cadia Valley'

Newcrest Mining Joins Alice Queen's Search for Next 'Cadia Valley'
The exploration potential of Alice Queen’s Looking Glass Project and recently acquired Mendooran tenement has been elevated after securing a farm in agreement with Newcrest Mining.
Mar 15, 2017 By Simon Herrmann Tags: ASX, Gold, AQX

Australian gold and copper exploration company Alice Queen entered into an agreement with Australia's largest gold producer Newcrest Mining to advance exploration at the company's Mendooran Project. Newcrest has the right to earn up to an 80% interest in the project by incurring exploration expenditure of at least $10 million. Alice Queen also upgraded its exploration target at the Horn Island Pit following a successful exploration program in 2015 and 2016.

Improved Exploration Potential for AQX

The exploration potential of Alice Queen’s Looking Glass Project and recently acquired Mendooran tenement has been elevated after securing a farm in agreement with Newcrest Mining. Newcrest can earn an interest of up to 80% in the Mendooran tenement by incurring exploration expenditure of at least $10million over nine years. With a $1million spend mandatory over the next 24 months, Alice Queen is expected to benefit from accelerated activity at Mendooran. At its Horn Island Project, historical drill data covering the abandoned open pit has been incorporated into a revised exploration target of 8.5 – 10.0 Million tonnes @ 2.7 – 3.0 g/t gold for 800 – 880 koz’s of gold. This target excludes regional prospects outside the main open pit area.

Whilst the Newcrest JV mitigates funding demands, Alice Queen is still reliant on external capital to continue exploration at Looking Glass and Horn Island. There is no guarantee that the required funds can be procured at favourable conditions for existing shareholders. Drilling activities at its various exploration projects are subject to high technical risk and their economic merit has yet to be established.

Newcrest JV & Technical Data Provide Foundation

Alice Queen offers speculative exposure to gold and base metals markets through its exploration assets in QLD and NSW. The Newcrest JV validates management’s strategic exploration plan and recent technical studies at Horn Island provide a foundation for demonstrating its economic potential. Principal risks include procurement of funding and technical exploration risks. Guided by the principal discoverer of the Cadia Valley deposit, Alice Queen remains focused on the discovery and delineation of large orebodies and we maintain coverage for the company’s exploration potential.

About Alice Queen

Alice Queen Ltd is an Australian minerals company focused on gold and base metal exploration in NSW and QLD. Its flagship asset is the Horn Island Gold Project (84.5%) located in the Torres Strait (QLD) and the Looking Glass / Mendooran projects situated NSW. Since we initiated coverage on 13 September 2016 to monitor exploration activities, Alice Queen has executed a Heads of Agreement (‘HOA’) with Newcrest Mining to farm-in on the Mendooran tenement.

Share this article

Simon Herrmann Author: Simon Herrmann Mar 15, 2017

Simon is a financial analyst at independent research firm Wise-owl specialised in small-mid cap growth opportunities and ethical investment opportunities. Simon's aim is to disrupt the cliché approach to investment decision making as he believes that socially and environmentally responsible behaviour is a necessity to long-term wealth creation. Simon has a deep fundamental understanding of the global financial landscape and has compiled 300+ research reports, valuations and corporate appraisals. Simon is commonly featured in major media outlets and his research is published weekly in The Australian.

Northern Cobalt banks on lasting cobalt boom

Northern Cobalt Limited (ASX:N27) is the latest cobalt exploration company to list on the ASX. Seeking to raise up to $6 million, should investors consider this junior explorer?

Author: Simon Herrmann Aug 07, 2017

Errors

Sign Up for Free Trial
Subscribe
Recent Tweets
Recent News