Don’t Miss This Opportunity

The Digger - 22-Jul-2019

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The Digger does not endorse, approve, or have responsibility for the particular offer or statements made.

Copper exposure has becoming important with the rise of electric vehicles, battery storage, new transmission technology and other green energy innovations which are highly copper-intensive according to Rio Tinto’s Chief Executive Officer Jean-Sebastien Jacques. This was part of the announcement of its development plans for Resolution, the large copper project that Rio owns with BHP in Arizona and he also added that we need to prepare now to meet this future demand.

Indeed in April this year the Chief Executive of Rio Tinto’s copper and diamonds division, Arnaud Soirat, brought a dramatic perspective when he said, at a CRU conference in Chile last month, that the world will need the same amount of copper in the next 25 years as it has produced in the last 500 years if expected global demand is to be met.

Elsewhere Reuters reported that Tesla expects world-wide shortages of copper and other metals required for electric vehicle batteries. Tesla’s global supply manager for battery metals, Sarah Maryssael, attributed the shortages to underinvestment in the mining sector stating that that electric vehicles need up to 80kg of copper, approaching four times that of a medium-sized petrol vehicle. The number of electric vehicles on the road is obviously growing. According to Morgan Stanley analysts, sales of electric vehicles should increase five-fold to 10.2 million by 2025. The research company IDTechEx, which does work for the International Copper Association, forecast the electric vehicle market will grow to a massive 52 million annual sales by 2029.

The focus on copper has led the corporate sector to aggressively seek copper projects which are material in terms of size. Evidence of this trend includes Oz Minerals $444m takeover of Avanco and Canadian Copper Mining Mountains $93m takeover of Altona Mining in 2018 followed by recent deals including Sandfire Resources recent $167m proposed merger with Mod Resources. Even with less advanced projects there has been a trend of larger companies keen to secure positions in projects such as Oz Minerals investing $36m in Cassini Resources Musgrave projects as well as ‘loan carry’ Minotaur Exploration with its work on the Jericho project.

It is evident that exposure to large copper projects at the ‘right price’ is becoming increasingly difficult and this is why Tartana Resources has a primary focus on its large copper porphyry exploration targets at its Tartana Project, 40 km northwest of Chillagoe in northern Queensland. Executive Chairman Steve Bartrop tells The Digger that while copper has been mined from a shallow open pit by Solomons Copper over a period of a decade until 2014, very little work has been done to quantify the opportunities represented by the copper mineralisation at depth.

The company has commissioned SRK to quantify a conceptual open pit exploration target based on a combination of past drilling, the results of a geophysical IP survey and an extensive copper in soils anomaly. The company published the exploration target earlier this month and it is available on its website at www.tartanaresources.com.au.

Figure 1. The Geophysical IP anomaly (green shape) and the mineralisation extending below the open pit (red zone).

Importantly for Company, while it will aggressively explore this target and hopefully elevate it into significant copper play, it does have other projects capable of generating a sustainable cash flow to keep the Company well-funded. This is important as many investors participating in the junior resource sector often experience dilution as companies run out of money with exploration costing more than expected and results being less definitive at the early stages of an exploration programme. One of these cash flow options is Tartana’s ability to restart the existing copper plant to produce copper sulphate for sale to local consumers including mines (it is a flotation reagent) as well as for stock feeds.

Tartana Resources is conducting an IPO which closes on the 26th July 2019. Investors can view the prospectus at www.tartanaresources.com.au. To participate in the current public offering of shares please read the Tartana Prospectus and complete the on-line application form which is linked to Boardroom share registrar services.

This article has been drafted on the basis of information contained in the Prospectus issued by Tartana Resources Limited ACN 126 905 726 on 24 June 2019. This article is not intended to provide a summary of the offer of securities made under the Prospectus. It does not constitute an offer of shares or financial advice. Anyone who wants to acquire shares under the Prospectus must read the Prospectus and must complete a paper application form accompanying the Prospectus or the electronic application form available at ww.tartanaresources.com.au/investor-centre. A person should consider the Prospectus in its entirety before deciding whether to apply for any shares. The shares offered under the Prospectus are of a speculative nature. They carry no guarantee in respect of return of capital, return on investment, payment of dividends or the future value of the shares. For information on the Projects and corresponding risks, potential investors should read the Prospectus in its entirety and, if in doubt, consult their professional advisors before investing.