Breakaway Research recently released an update report for Elysium Resources Limited on the 28th July 2015, which was mentioned in an article by Elise Shaw from the Australian Financial Review on the 29th July 2015, 'Broker Watch: Natitas, OrotonGroup, Elysium Resources, insurance'.
To view the article, visit the Australian Financial Review Website:
As written by Breakaway Research on Elysium Resources Limited (July 2015)
Current $1.26m rights issue to potentially fund activities through to end of Burraga Copper Project Feasibility Study.
Significant progress towards development of the Burraga Copper Project.
This includes a resource upgrade, which returned Measured and Indicated resources of 1.36Mt grading at 0.9% copper.
Further resource expansion drilling planned, with a number of promising near mine targets.
EIS well advanced, with completion expected in late 2015.
Free cash flow from the planned Burraga operation will be used to fund Elysium’s ongoing exploration activities over highly prospective properties in NSW and Indonesia.
Board and Management with considerable project development experience, and significant shareholdings in Elysium Resources.
Elysium Resources continues to make progress on its 100% owned Burraga Copper Project in the Central West of New South Wales. Key advancements include progress on the permitting and EIS, and completion of a resource upgrade, with 80% of resources now in the Measured and Indicated categories.
Work to date has also highlighted the exploration and resource expansion potential of the project. The Company will be testing a number of targets as part of a planned resource expansion drilling programme, which if successful should significantly add to current resources and increase project life past the current estimated +4 year life and hence enhance the economics.
Successful project implementation should allow Elysium to self-fund exploration activities over all of its prospective properties, and any exploration success should significantly drive the Company’s value.
We continue to rate Elysium as a SPECULATIVE BUY – key price movers will be success in the planned upcoming drilling, and negotiation of an equitable funding/offtake package to develop Burraga.
Elysium Resources Limited (“Elysium”, ASX: EYM) is an Australian mineral exploration company whose core business is exploring for large, high-quality
copper and gold deposits in the rich mineral provinces of Australia and Indonesia.
Elysium is currently focussing activities on its Burraga Copper Project, located southeast of Bathurst in the Central West of New South Wales, and
centred over the historic Lloyds Mine, which produced some 470,000t of ore at over 4% copper. The strategy involves developing a low capex, 300ktpa
operation to initially treat historic tails and slag, and then develop an open pit to mine and treat approximately one million tonnes of in-situ
Free cash flow from the envisaged +4 year operation will be used to fund ongoing exploration activities on the Company’s exploration assets, including a number of high quality gold and copper targets in the Burraga tenements. Other exploration tenements include Malang in the highly prospective Sunda Arc of Indonesia, which has returned promising early stage exploration results.
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About Elysium Resources
Elysium Resources Limited (ASX:EYM), with its tenements located in the rich mineral provinces of Australia and Indonesia, is focused on its core business of exploring for large, high quality copper and gold deposits. The Company's aim is to increase shareholder wealth through capital growth and dividends, by advancing projects from exploration through to development and into profitable operating mines. (Source: Elysium Resources Limited Website: http://www.elysiumresources.com.au/corporate/about-us).
Horseshoe South E52/2569
This tenement is 5.5km2 and lies 4km to the south of the Horseshoe Lights Mine in Western Australia which is a VMS style high grade copper ore body. Over the past several years, Horseshoe Metals Ltd (ASX:HOR) has been delineating extensions to the south plunging ore-body with a consistent flow of encouraging results to the market. As recently as May 27, 2013, HOR reported copper results as high as 10% under the existing pit.
Malang (IUP: 180/005/IUPE/421.302/2013)
The Company has agreed terms with Gata Sumbar Daya in Indonesia to explore the Malang project in East Java, some 60km to the south-east of the city of Malang.
Gata, headed by highly regarded geologist Mr Adi Maryono, will partner EYM and provide local exploration and administrative expertise on its Indonesian projects. Mr Maryono is a long standing associate of EYM’s Chief Technical Advisor Neb Zurkic, having worked together on Newmont Mining’s world class Batu Hijau and Elang deposits. Mr Maryono led the team that took the Elang deposit in Indonesia from early discovery and delineated a giant world-class deposit with reported resources of ~25.3M ounces of gold and ~16.3B pounds of copper. Mr Maryono has previously held management positions at BHP, having led the site team who discovered Reko Diq in Pakistan with a reported endowment1 of ~41.7M ounces of gold and ~53.3B pounds of copper.
Burraga Project EL6463
Consists of approximately 84 square kilometres (28 units) and has within its boundaries the village of Burraga, which is a short distance from the Lloyd’s Copper Mine. The Lucky Draw Gold Mine is located in the north-east sector of the tenement.
The Lloyds Copper Mine produced 19,443 tons of Copper from 469,626 tons of ore implying a recovered grade of 4.14% Cu, between 1880 and 1920, then intermittently up to 1961. The initial focus for copper exploration is the confirmation of extensions to the original Lloyds Mine ore body.
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