Cadence Minerals notes that the groundwater study has been completed by the Lake Giles Iron Project

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Cadence minerals (KDNC TO FOLLOW) took note of a statement by Macarthur Minerals in which it told investors that an airborne AEM survey (Fig. 1) has now been carried out by CGG Aviation to identify groundwater targets near the iron project of the Giles Lake in Western Australia.

Cadence owns approximately 1% of the issued stake in Macarthur, an Australian mining exploration company focused primarily on iron ore, nickel, lithium and gold in Western Australia.

The group said CGG Aviation had undertaken an airborne AEM study covering an area of ​​970 km2 by 1,322 linear kilometers with the aim of evaluating Rebecca’s paleovallee.

Rebecca’s system is expected to contain a large amount of groundwater and is not operated by other operators. The western part of Rebecca’s Paleovalley is located approximately 15 to 40 km east of Giles Lake and stretches 160 km north to south.

Figure 1. Tempest AEM survey area over Rebecca Valley, as mapped by Kalgoorlie 1: 1,000,000 sheet. Project GDA94, Area 50.

(Source: Macarthur Minerals)

The system is one of many paleovalleys buried in the gold fields, with others being mined by BHP’s Nickel West Project, Glencore’s Murrin Murrin Project, and Gold Road’s Gruyère Project.

Cadence explained how CGG mobilized to the site on March 10, 2021 and that the aerial survey took place over a period of 5 days during which electromagnetic data was collected.

The Tempest AEM system is suitable for conductivity mapping and has been used in the past to map the location, extent and subsoil topography of paleo-drainage systems.

The data will be interpreted by Rockwater hydrologists, experts in the application of hydrologic surveys, to define appropriate targets for groundwater exploration.

Commenting on the AEM survey, Andrew Bruton, CEO of Macarthur Minerals, said: “The airborne survey program of the paleovalley adjacent to the Giles Lake Iron Project will identify suitable drill targets for groundwater exploration to allow the company to test the quantity and quality of water. required to meet its magnetite processing requirements.

He added, “Macarthur is delighted to be working with CGG Aviation and Rockwater on this important component of work that will feed into the company’s feasibility study. “

The Giles Lake mineral resources include the Ularring hematite resource comprising indicated resources of 54.5 million tonnes at 47.2% iron and inferred resources of 26 million tonnes at 45.4% iron; and the Giles Lake magnetite resource of 53.9 million tonnes (measured), 218.7 million tonnes (indicated) and 997 million tonnes (inferred).

Cadence Minerals shares have risen nearly 30% since the start of 2021. Shares are up 2.70% this morning to 19p immediately after the announcement.

The survey conducted will identify suitable drill targets for Macarthur Minerals to test the quantity and quality of water required to meet its magnetite processing needs.

In a recent quarterly update, Macarthur said he was “well positioned” to meet his stated 2021 goals for Lake Giles, which include completing a feasibility study, entering into a commissioning contract. on the market and the progress of the financing conditions of the project from 2023.

Morgan Stanley analysts have also maintained a bullish scenario for iron ore prices in the coming years. In a recent report, analysts presented a “plausible scenario” of iron ore prices trading at over US $ 165 per tonne ($ 216 / tonne) for a three-year period through 2024.

“Growth in global iron ore production will accelerate in the years to come, ending the stagnation that has persisted since iron ore prices hit an average of $ 55 per tonne in 2015, the lowest of the decade, “predicts market analyst Fitch Solutions in its latest industry report.

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Amapá – 30% (after final agreement with bank creditors)

Candece plans to rehabilitate Amapá, including commissioning the required bank financing studies, shipping iron ore from the stockpile and restarting full operations.

The historic mining plan would mean that Amapá would produce at steady state an estimated production of 4.4 Mt of 65% iron and 0.9 Mt of 62% iron per year for about 14 years.

Cinovec – 16%

Cadence owns around 12% of the capital of European Metals, which, through its subsidiary Geomet, controls the exploration licenses awarded for the Czeach Cinovec Lithium project.

Cinovec, which is the largest hard rock lithium deposit in Europe, is strategically located to produce lithium for Europe with the aim of contributing to a sustainable supply chain for a leading global center for development and the manufacture of electric vehicles in Europe.

Diego Pavia, CEO of EIT InnoEnergy, said he sees Cinovec as “critical” for the development of the European energy storage industry and for achieving the EU’s climate targets for electrification of mobility and large-scale development of renewable energy storage.

Last week, the 19-hole resource drill program underway at the Cinovec project yielded good drilling results. Cadence Managing Director Kiran Morzaria told investors that the encouraging results “serve to underscore the overall quality of the Cinovec project”.

Yangibana – 30%

Last year, Cadence unveiled “exceptional” rare earth oxide grades in a report that highlighted positive drilling results on the Yangibana rare earth project in Australia, exceeding expectations for its drilling program. exploration of 20,000 meters planned for 2020.

Cadence, which owns 30% of three mining leases and six exploration licenses that are part of the Yangibana rare earth deposit, plans to advance the program through Q420.

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