We discuss recent developments and the future of Proto Resources (ASX: PRW). Final permits for Barnes Hill, the resource estimate, and other exploration work.
[download_link link=”http://www.caesarsreport.com/freereports/CaesarsReport_2013-01-21.pdf” variation=”blue”] DOWNLOAD REPORT [170kB][/download_link]
[gview file=”http://caesarsreport.com/freereports/CaesarsReport_2013-01-21.pdf”]
[download_link link=”http://www.caesarsreport.com/freereports/CaesarsReport_2013-01-21.pdf” variation=”blue”] DOWNLOAD REPORT [170kB][/download_link]
[fancy_header3]TEXT VERSION[/fancy_header3]
[margin20]
Corporate Summary
Currently, Proto has two nickel-cobalt development projects under management. The first is its flagship Barnes Hill project near Beaconsfield in northern Tasmania. The deposit has approximately 125M lbs of contained nickel and three million tonnes of iron ore as well as other elements such as cobalt and magnesium. Proto is targeting production in 2013 aiming to produce approximately 4,000 tonnes of nickel metal per annum.
Proto’s second project is the Kiefernberg nickel-cobalt-chrome deposit in the former East German state of Saxony. The deposit is the site of a former mine under the Communist regime and, like Barnes Hill, boasts excellent logistics.
Proto owns 50% of a technology company, Barrier Bay Pty Ltd., which is developing a revolutionary process for regenerating and recycling acid and water from metal-containing acidic solutions.
Barnes Hill
[fancy_list style=”arrow_list”]
- I’m wondering if you could provide us an updated timeline? When do you expect to start iron ore and NiCo exports from Barnes Hill?
[/fancy_list]
[fancy_list style=”bullet_list”]
- Proto is looking to commence iron ore sales in calendar year 2013 with nickel and cobalt sales to commence in calendar year 2014.
[/fancy_list]
[fancy_list style=”arrow_list”]
- What are the implications if Metals Finance does not meet its obligations and cannot come up with financing for the project? Will you regain 100% ownership of Barnes Hill?
[/fancy_list]
[fancy_list style=”bullet_list”]
- Proto has 100% of Barnes Hill right now. MFC will earn 50% by funding and commissioning the project into production. Proto has already signed with Caterpillar Financial and we are talking with other equipment suppliers like Dow Chemicals to be part of the project consortium. As such, I believe that the Barnes Hill project will be well supported investment wise.
[/fancy_list]
[fancy_list style=”arrow_list”]
- Which permits do you need and when do you expect to receive them?
[/fancy_list]
[fancy_list style=”bullet_list”]
- Proto already has a mining license granted. A final operating permit should only take 2-3 months to be issued once some other documentation is finalized. Proto is expecting to have this permitting in place on or around the middle of the calendar year 2013.
[/fancy_list]
[fancy_list style=”arrow_list”]
- The current resource estimate at Barnes Hill is 6.6Mt at 0.82% Nickel. Is there additional exploration potential to increase the mineral resources and thus prolong the life of mine?
[/fancy_list]
[fancy_list style=”bullet_list”]
- The 6 million tonne resource is an independently calculated resource estimate on approximately one third of the total ore body. The initial global resource at Barnes Hill was over 12 million tonnes and Proto believes that there is a lot of upsides left in the project. As such, Proto believes it is a long life project, going well past 10 years in production.
[/fancy_list]
Barrier Bay Technology
[fancy_list style=”arrow_list”]
- When do you expect you’ll be able to update the market about the development of this new technology to recover more iron ore, manganese, cobalt and nickel?
[/fancy_list]
[fancy_list style=”bullet_list”]
- Proto will be providing a full update before the end of February 2013.
[/fancy_list]
Kiefenberg and Kukes
[fancy_list style=”arrow_list”]
- What are your exploration plans for 2013 in Germany and Albania? Will you look for a JV partner?
[/fancy_list]
[fancy_list style=”bullet_list”]
- Proto will be conducting ground sampling and we will be talking to potential joint operators and partners of the projects to help fast track these solid projects.
[/fancy_list]
Why should investors invest in Proto Resources?
[fancy_list style=”bullet_list”]
- Proto is conducting quite valuable exploration in the first half of 2013 at the Mt Vetters project in WA, 30km from the gold mining capital of Kalgoorlie. Further, Proto will be commencing work on the large Mt Killara project, north of Apex Minerals NL (ASX:AXM). Proto will also be drilling a fourth hole into the Lindemans Bore project where copper and gold mineralisations have already been discovered in commercially interesting quantities. Since an all time low of $0.003 per share on the 24th December 2012, Proto has re-appreciated trading as high as up to $0.008 and I expect this strength continued and built on significantly over the next 6 months.
[/fancy_list]
[divider_top]
Disclosure: Proto Resources & Investements Ltd. is a sponsoring company. Please see our disclaimer for current positions.
