Venture Minerals Limited (ASX: VMS) - Potential High Grade Clay Story.
Coffee with Samso Episode 183 is all the Brothers Rare Earth Discovery.
The discovery of a high grade clay Rare Earth project by Venture Minerals Limited (ASX:VMS) in the Golden Grove district needs to be noticed. The depth of intercept and the high grade is up amongst the top tier projects in Western Australia.
The REE Journey begins for Venture Minerals Limited ?
In April 2023, the Venture Minerals announced the introduction of the Iron Duke REE project into the Brothers project on a Rooster Talk - Venture Minerals Limited (ASX: VMS) - Building a Rare Earth Portfolio in Western Australia. The REE story for the company was a slow build up over the last 18 months.
Chapters:
00:00 Start
00:20 Introduction
00:57 High Grade clay hosted REE discovery at the Brothers Project
02:00 Reason for high grade
07:01 Direction of the Big Brothers Project
09:46 Is the Big Brothers Project the focus for VMS?
11:02 Discussion on metallurgy
11:57 How should investors look at VMS?
15:38 News flow
18:17 Why VMS?
21:13 Conclusion
Rare Earth Market Status
One of the first indicator of the fortunes of the Rare Earth exploration sector is the rise or fall of the REE market pricing. As we all concurrently, the market is looking at a bearish price sentiment which has created anxiety for many investors. One cannot argue that the bear is out of hibernation.
What many the supporters of the bear is forgetting is that this market has been created out of a geopolitical situation. The current changing focus of world politics, in my opinion has made metals such as REE attractive. The future needs of the REE components are going to add to the demand in the market.
AS all investors know, the long term is where money is made. This is a well know fact and again, investors forget that the mining game is all about the long term. The mining sector is measure in decades and not months nor years. There are mines that have happened in years, such as Nova Bollinger (Ni) and DeGrussa (Copper), but they are few and very far in between.
What makes Venture Minerals a good bet?
What Venture Minerals does best is to create diversified projects which continue to create value when it seems insurmountable to find value. I have said this many times about when I first had a Coffee with Samso with Andrew Radonjic and finding the value in the numerous projects.
Why and how can do continue to do this? This is where experienced management comes to the front of the game. The value in the Brothers project is prime example. How did they come up with a project that looked liked an outlier but with drilling, it is now possibly standing out to be a contender in the Rare Earth race.
The Decarbonisation Problem.
The world is intent on achieving a state where there is clean energy use but the journey is going to be long and hard. The whole concept of achieving that level is not being helped with the persistent sectors of the population believing that restricting mining is going to be the solution.
There is no going back to the old ways of "Non-Decarbonisation" thinking. This is something that is established. I had a coffee with someone in South Australia and he was proudly telling me about the way the state has gone to renewable energy.
The process of creating a world of less "dirty energy" is now no longer news. This is an expected path.
Samso's Conclusion
Andrew Radonjic has pulled another rabbit out of his hat. The Brothers project is one that I certainly did think had a great chance for some glory. In our last Coffee with Samso, we discussed that the historical drilling would make this project very interesting.
The two drill holes that was announced was into bedrock which would have suggested that there could be more to come. The recent release has made that thought come true.
Does this make the Brothers project a stand out? I dont think one can say that now as there is still the issue of the metallurgical question. What I have learnt is that they will come back and show that it will leach. How much acid.,...etc. will be the main topic of conversation.
Is this something that will carry Venture Minerals back to its glory days when it was a darling for retail investors, I think not immediately. I like the numbers that have come up but I think the market is saturated with a lot of REE stories.
The markets needs to understand what kind of project is going to make the grade and what will not. The initial Ionic vs. Non-Ionic debate is now a thing of the past as we have discussed many times, there is more to the discussion than the Acid content.
What I know now is that there are several projects that have something different that I believe make them unique. For Venture Minerals, it is their location (proximity to the new Lynas story), the grade and the depth of mineralisation. They are not in the typical REE areas and there are no potential land issues.
All these factors, in my opinion, makes Venture different.