The �Steak or Sizzle?� blog comments on each of the top five performing resources stocks in the prior week. 

�Sell the sizzle, not the steak� is a famous sales adage. The sizzle is the showily attractive distraction from the quality of the meat. Sizzle plays on the emotions of buyers.

�All sizzle and no steak� is a reference to excitement which fails to measure up to expectations of quality.

Resource sector investors are constantly confronted by choices requiring them to distinguish between �steak� and �sizzle�.

Each commentary offers an opinion about whether recent unusually strong price performance is 'sizzle' or �steak� .

Being steak or sizzle does not necessarily say anything about near term investment returns. But sizzle can only take a company so far. Ultimately, steak is needed to sate the appetite of investors for something financially nourishing.

Commentary Archive:  2017 2018 2019 2020 2021 2022

End of December Summary

FULL YEAR 2017

See below for links to previous comments on the companies which showed the best investment returns during 2017.

Ardea Resources did not register as a top performing stock in any of the weekly, monthly or quarterly ratings during 2017 but built performance through the year with a notable tripling in share price during February and a subsequent doubling in October after listing in February under the banner of having "the developed world's largest cobalt resource".  The company also had precious and base metal exploration interests in New South Wales.  It raised additional capital during the year and reported a cash balance of $12.1 million at the end of October to enable  ongoing drilling and work toward a pre-feasibility study.  Verdict: Steak.

QUARTER ENDED 31 DECEMBER

See below for links to previous comments on the companies which showed the best investment returns during the December quarter.

 

 

 

 

MONTH ENDED 31 DECEMBER

See below for links to previous comments on two of the companies which showed the best investment returns during the December quarter.

Aruma Resources was quizzed at the end of December by ASX about the reason for recent unusual share trading activity.  Directors said they were not aware of anything that should have been announced but pointed to having disclosed in late November that a drilling program was to commence at its gold exploration properties near Kalgoorlie in Western Australia (and for which no results have as yet been released).  Verdict: Sizzle.

Fe announced that it had commenced drilling at a property in the Democratic Republic of the Congo prospective for copper-cobalt mineralisation.  The company had purchased the property in November from Cape Lambert Resources (also among the best five performing stocks during the month), its largest shareholder with a 45% interest.  The company had reported cash assets of $232,000 at the end of September 2017 with only $3,000 allocated to exploration expenses in the December quarter.  At the end of December, the company announced that it was about to undertake a placement to raise up to $1 million at a price which would be 59% below the price at which its shares had last traded.  Verdict: Sizzle.

Cobalt Blue Holdings, a spin-off of Broken Hill Prospecting which continues to hold a 49% joint venture interest in its Thackaringa project, has been on a rising share price trend since mid-November while the company has been reporting geophysical survey results from its cobalt exploration interests near Broken Hill.  Subsequent drilling has been geared toward estimating an upgraded resource in early 2018 and a pre-feasibility study in the middle of the year.  The company raised an additional $2.5 million after having reported cash assets of $5.1 million at the end of September 2017. 

 Week ended 22 December 2017

THEME OF THE WEEK: More Batteries

Haranga Resources announced an agreement to purchase a 100% interest in a tenement 25 kilometres west of Laverton in Western Australia where drilling has shown nickel-cobalt mineralisation.  The scrip based acquisition is conditional on a rights issue and share consolidation.  The $1.5 million company had previously reported being left with cash of $269,000 at the end of September 2017 after having spent nothing on exploration but $1.1 million to cover administration and corporate costs in the prior nine months.  The company had announced in June that it would sell its iron ore exploration interests in Mongolia which had previously been the focus of its attention.  Verdict: Sizzle.

China Magnesium Corporation did not make any announcement which might account for the additional investor interest in the company in the past week. At its annual general meeting at the end of November 2017, the managing director spoke about the company�s plans for lithium exploration in the Greenbushes area in Western Australia as well as plans to recommence magnesium production in 2018. Metal production in China has been disrupted by regulatory measures to curtail environmental damage. The most recent price appreciation is consistent with the trading range of shares since early November. Verdict: Sizzle.

Duketon Mining labeled the results of a drilling program at its Golden Star property in Western Australia �a major new discovery�. Gold grades in the range of 1.6-9.4 g/t were encountered over a distance of 500 metres starting 20 metres below the surface. The company has other gold and nickel exploration interests in Western Australia. It is relatively well positioned financially with a $3.6 million cash position at the end of September 2017 and anticipated spending of $0.6 million in the December quarter.  Verdict: Steak.

PepinNini Lithium announced that it had completed a single borehole at its Argentine brine project and expects to receive results before the end of 2017 (i.e. within two weeks). The company has redefined itself as �the battery company� having previously presented itself as a central Australian exploration specialist. The company had expected to spend $700,000 in the December quarter after having ended September with cash assets of $1.5 million. Verdict: Sizzle.

Broken Hill Prospecting experienced unusually strong investor interest immediately following its general meeting of shareholders on 21 December 2017. In his meeting presentation, the managing director of the company painted a picture of a significant share price re-rating during the 2018 with a notional share price five times higher as a result of its holding in Cobalt Blue, a recent spinoff, and demonstrated corporate skills which would contribute to further deal making. The company had cash assets of $3.4 million at the end of September after one-off proceeds from the sale of assets of $3.1 million and before expected quarterly expenditures of $262,000.  Verdict: Sizzle.  

 Week ended 15 December 2017

THEME OF THE WEEK: Batteries

Laramide Resources, a Canadian-listed company with uranium exploration interests in Queensland and north America, barely trades once a month in Australia through its Chess Depositary Interests leaving it with an Australian market value of less than $1 million.  On its home exchange, the company has produced a return of 126% since late October and 44% since the end of November.  The illiquidity in the Australian market often means local price action bears little relationship to what is happening on its home exchange although the recent move has brought the two prices more into line than had been the case for several months.  Verdict: Steak.

Legend Resources announced anomalous nickel-copper-cobalt assays at its Fraser Range property. The company compared its results favorably with those from the Nova-Bollinger discovery at an equivalent time in its exploration program. After spending $1.2 million in the September quarter, the company retained cash assets of $5.4 million positioning it well to further its exploration interests. Verdict: Steak.

Global Geoscience announced that it had successfully demonstrated a heap leaching process for its Rhyolite Ridge lithium-boron mineralisation in Nevada. The approach potentially reduces capital and operating costs associated with the project.  The results will be an input into a feasibility study being prepared for the company which already has a market value of $426 million in anticipation of development. Cash assets amounted to $5.6 million at the end of September 2017. Verdict: Sizzle.

Anson Resources confirmed that it was on track to produce its first lithium carbonate in April 2018 at its proposed project site in Utah. Although supposedly nearing production, the company also highlighted that it was only just about to commence its first stage drilling program. The drilling will access a historical oil wellhead to reach brines for sampling.  The company held cash assets of $1.2 million at the end of September 2017 after having raised $1.2 million in new funds during the quarter.  Verdict: Sizzle.

Comet Resources announced that it had commenced drilling for graphite at its Springdale property in Western Australia.  The company also said that it would target potential cobalt-nickel mineralisation.  The move has pushed the company�s market value to $23 million.  The company had $1.6 million in cash on hand at the end of September 2017 after having raised $0.6 million during the preceding quarter. Verdict: Sizzle.

 Week ended 8 December 2017

THEME OF THE WEEK: Ontario Resurgence

Ishine International Resources announced that it had acquired an option to purchase a 70% interest in an Ontario zinc project which had ceased production in 1998 shortly after opening.  The value of the scrip based transaction, if completed, would be $2.9 million.  The acquisition is conditional on the company also completing a $2.5 million capital raising.  At the end of September 2017, the company had cash assets of $541,000.  In its activities report for the September quarter, the company disclosed that it had been undertaking desktop studies on tenements held in Western Australia and that it was searching for new project opportunities.  The company does not have an exploration or development track record.  Verdict: Sizzle.

Sabre Resources is usually a lightly and infrequently traded stock which attracted buying through the week with a value of approximately$ 20,000.  The company had cash assets of $84,000 at the end of September 2017 after having borrowed $130,000.  The company expected to spend only $56,000 in the December quarter.  The company holds exploration tenements in Namibia prospective for copper and zinc.  The company�s fortunes had been affected adversely by a lengthy delay in receiving tenement renewals from the Namibian government.  Those matters had been resolved in August but the company had not made any public disclosures about its prospects since and before its annual meeting in mid-November.  Verdict: Sizzle.

Cape Lambert Resources did not make any public disclosures about its investments which might explain the unusually strong investor interest during the week.  Already in December, the volume of shares traded has exceeded the total for any month, with the exception of only three, since 2000.  Directors did announce the appointment of a German investment banker to the board of the company citing his prior appointment to the board of European Lithium after which the share price of that company rose by 400%.  In a published presentation prepared for the Mines and Money conference in London at the end of November, the company emphasised its focus on cobalt, lithium and uranium properties in the Democratic Republic of the Congo and Zambia.  The leaders of the company have a long history as project promoters but no technical or development skills to match their presently targeted activities.  The company held cash assets of $613,000 at the end of September 2017.  Verdict: Sizzle.

Thor Mining has benefited from a rising price trend since late October for a 286% net gain. The company has mineral projects in the USA and Australia prospective for tungsten. It also has copper exploration interests in South Australia, gold related activities in the Northern Territory and lithium prospects in the USA. In its activities report for the three months to September 2017, the company also referred to possibly having gold and lithium related opportunities in the Pilbara. The disclosure, issued at the beginning of November, came at an opportune time with significant interest being shown by investors in recent discoveries in the region resulting in large price fluctuations among companies with the targeted exposure.  Verdict: Sizzle.

Golden Deeps announced that it had agreed to buy two cobalt projects in Ontario. The company suggested that it can add value to historical exploration efforts through the application of new geophysical techniques. The company has been attempting to reposition itself as a participant in the energy storage space.  The company reported having cash assets at the end of September 2017 of $68,000.  The company raised $824,000 in association with the acquisition.  Verdict: Sizzle.

 November 2017

THEME OF THE MONTH: More batteries

Of the highest returning companies during November, the following are commented upon below:

European Lithium was unable to throw any light on the cause of its share price performance when queried by ASX.  The company did release a new presentation to be used in Europe in the last week of November and which outlined plans for a lithium project located in Austria.  The project, dating from exploration activity in the 1980s, was acquired through a reverse takeover in September 2016.  The company anticipates completing a pre-feasibility study in the first quarter of 2018.  According to the company�s activities and financial report for the three months ended September 2017, it had cash assets of $300,000 with plans to spend $1.3 million in the upcoming December quarter.  The company raised $2.1 million during October.  Verdict: Sizzle.

Cohiba Minerals attracted unusually strong investor interest during the week despite there being no fresh disclosures to explain the new buying.  During the September quarter, the company had completed acquisition of Cobalt X.  However, Cohiba announced at the start of November that a mining licence application covering tenements in which the acquired company had an interest had been withdrawn after being unable to obtain required third party consent.  The most recent share price performance has been a recovery from the fall in price which occurred in early November following the release of the license application news.  The most recent price fluctuation could suggest some further impending news.  The company held cash assets of $1.7 million at the end of September 2017.  Verdict: Sizzle.

Week ended 1 December 2017

THEME OF THE WEEK: Only One Real Discovery

Orion Metals was unable to offer any explanation for the outstanding share price performance in the last week of the month when queried about reasons for the rise by ASX.  The stock, which has usually traded no more frequently than once a week over the past year, attracted exceptionally strong interest during the last days of November.  Over 95% of the outstanding shares in the company were held by three entities with connections to Chinese business interests, according to company disclosures.  In its last quarterly activity report for the three months ended August 2017, the company stated that �there was no on-ground exploration conducted this quarter�.  The company is nominally engaged in rare earth and gold exploration in Western Australia and Queensland.  It had $281,000 in cash assets at the end of August after having raised $200,000 in additional funding during the quarter.  Foreshadowed expenditure over the three months ended November was $309,000.  Verdict: Sizzle. 

Quantum Resources announced that it had entered into a memorandum of understanding with Far Resources under which the two parties would collaborate on assessment and development of adjacent properties in Manitoba on which the companies have identified lithium mineralisation.  The company had also issued an updated report on progress toward completing due diligence on a portfolio of properties in Alaska prospective for gold and nickel-copper-cobalt into which it is looking to farm-in.  The company�s bank balance at the end of September 2017 amounted to $869,000 with foreshadowed December quarter expenditures of $330,000.  Verdict: Sizzle. 

Queensland Bauxite combines mineral development with a 55% interest in a cannabis producing and marketing company. The company announced that hemp food products had become legally available for human consumption in Australia from 12 November.  The company also announced that its cannabis investment had acquired an interest in a hemp seed processing group in a move to vertically integrate the business.  Verdict: Sizzle. 

St George Mining announced drill results from its Mount Alexander property in Western Australia (see below). Verdict: Steak.

Lepidico had shown strong returns through the first half of October and again through the first half of November with a relatively modest gain later in the month.  Lepidico has portrayed itself as a technological leader in using its own innovative hydrometallurgical technique for the treatment of mica ores to extract lithium carbonate.  Interest in Lepidico was spurred in October by Galaxy Resources, another lithium development company, taking a stake in the company.  Galaxy also participated in a subsequent entitlement offer.  The Galaxy backing will facilitate funding of Lepidico�s own development efforts. Verdict: Steak.

 Week ended 24 November 2017

THEME OF THE WEEK: A Real Discovery

St George Mining announced that it had intersected sulphide mineralisation with preliminary grade estimates of 5.5% nickel and 2.1% copper at its Mount Alexander property in Western Australia. The company subsequently announced that it would extend its drilling program to take advantage of the momentum gained from the discovery. The company is moderately well financed with cash at the end of September 2017 of $2.5 million and planned expenditures of $1.4 million in the December quarter. The company has also made a $1.8 million claim under the R&D tax incentive scheme.  The decision to extend its exploration program is likely to result in increased near term spending and a need for additional funding. This will be more easily achieved following the reported drilling result. In September, the company issued bonus options to shareholders which, after last week�s share price movement, are in the money. With a capital raising potential of $5 million, the options will provide longer term funding flexibility but are not due to expire until September 2020. Verdict: Steak.

Draig Resources announced that it had intersected visible gold and 5 metres at 37.5 g/t while drilling within its Bellevue gold project.  The prospect which sits in the northern part of the Norseman-Wiluna belt in Western Australia had been mined historically but operations were shut down 20 years ago. Further drill results are pending. The company had $0.7 million in cash assets at the end of September 2017 with another $2.6 million due in October from the second tranche of a capital raising. The company expected December quarter spending of $1.3 million leaving it in need of another capital replenishment in the early part of 2018.  Verdict: Steak.

Ventnor Resources received a query from ASX about the reasons for its share price performance but said, in response, that it did not have any information which was not publicly available already. Directors pointed to an earlier statement that the company had been investigating a silica sand mining opportunity in Western Australia to supply glass and concrete manufacturers in the Asia Pacific region. Previously, the company had been engaged in a range of base metal and gold exploration ventures in Western Australia. The company had limited financial resources with cash assets of $830,000 at the end of September 2017 with budgeted expenditure of $245,000 in the December quarter.  Verdict: Sizzle. 

Spectrum Rare Earths announced that it had raised $0.9 million to kick start a program of exploration on a Pilbara gold prospect. The company has characterised the current state of its work there as �preliminary investigations�. An exploration permit is yet to be granted. The company had cash assets of $520,000 prior to the capital raising. The company�s prior involvement in rare earths and uranium has been abandoned. Verdict: Sizzle. 

Crater Gold Mining announced that it had negotiated a $4 million unsecured loan facility with its major shareholder. Although the first $1 million can be drawn down at the option of the company, the balance of the funding is subject to the agreement of the lender. Prior to the funding arrangement, the company had reported cash assets at the end of September of $0.4 million with December quarter budgeted expenditures of $1.78 million. The funding will facilitate activity at the company�s Crater Mountain gold project in Papua New Guinea. Earlier in the month, the company had reported drilling results from a polymetallic deposit in north west Queensland. Verdict: Sizzle. 

 Week ended 17 November 2017

THEME OF THE WEEK: Cobalt!

Venture Minerals has base metal exploration interests in Western Australia.  The company announced that it had commenced a maiden drilling program targeting nickel and copper sulphide mineralisation.  Subsequently, the company announced that it had secured an exploration licence for a property along strike from a recent nickel-cobalt discovery.  The company ended the September quarter with cash assets of $1.5 million after having raised $0.9 million from new share issues during the quarter.  Verdict: Sizzle. 

Nex Metals Exploration did not make any specific disclosure during the week which might have precipitated the company�s share price performance. The company had previously announced that it had commenced a trial to process gold-rich tailings at a site in Western Australia. The company had cash assets of $0.6 million at the end of September 2017. Verdict: Sizzle. 

Great Boulder Resources announced that it had intersected copper-nickel-cobalt mineralisation east of Laverton in Western Australia. The company had received results from nine holes out of a 20 hole maiden drilling program. The company is in a relatively strong financial position to follow up this activity and other gold-related targets with cash assets at the end of September 2017 of $3.9 million. Verdict: Steak.

Winmar Resources announced that it had withdrawn from its Lomero polymetallic project in Spain after its joint venture partner entered administration and the company was unable to exercise control. Winmar announced that it would seek to acquire alternative mineral assets. To assist in its new endeavours, the company completed a $492,000 capital raising. The company also announced measures to cut its operating costs.  It had finished of the September quarter with cash assets of $205,000.  Verdict: Sizzle. 

Quest Minerals was reinstated to trading after having been suspended during the prior week and announcing that it had agreed to acquire a business with a portfolio of cobalt and gold exploration tenements in Austria. The transaction will involve issuing 426 million shares and 65 million options in addition to the company�s existing 106.7 million outstanding shares. The company intends to raise $4.5 million to supplement its $712,000 cash holdings at the end of September 2017. Previously, the company had been engaged in gold exploration near Sandstone in Western Australia. It had also reported vanadium and titanium in assay samples.  Verdict: Sizzle. 

 Week ended 10 November 2017

THEME OF THE WEEK: More Battery Frenzy

Redbank Copper was reinstated for trading after having been suspended during the prior four weeks for having failed to lodge its annual accounts. The company holds tenements prospective for base metals in the Macarthur River region of the Northern Territory. After having spent $140,000 on exploration in the three months to September 2017, it had cash assets of only $2,000 remaining at the end of the quarter. The company�s chairman has agreed to lend the company up to $1 million until such time as it is able to raise additional equity funds.  Verdict: Sizzle. 

Astro Resources, which has exploration interests in Western Australia focused on mineral sands and diamonds and has recently acquired exploration properties in Nevada, did not make any specific disclosures likely to have a share price impact. It had reported previously that had cash assets at the end of September 2017 of $5,000 after having spent $61,000 in the prior quarter on exploration. The company trades infrequently with turnover in the past week valued at $14,002.  Verdict: Sizzle. 

Hampton Hill Mining did not make any specific disclosure during the week to explain the rise in share price. Its principal activity is an earned 25% interest in the Millennium zinc project in Western Australia managed by Encounter Resources. After having completed its $2 million spending obligation in the September quarter, the company had remaining cash assets of $30,000. The company also had investments with a market value of approximately $4 million which could be realised to fund its ongoing activities. Verdict: Sizzle. 

Archer Exploration is a South Australian focussed mineral explorer where it plans to establish an integrated graphite mining and graphene production operation. Its South Australian interests have also included copper, manganese and magnesium exploration.  The company reported cobalt grades of 0.94% from one of its South Australian properties based on rock chip sampling. It has also recently reported cobalt and copper anomalies at North Broken Hill following rock chip sampling. The company had cash assets of $1.03 million at the end of September 2017 after having spent $353,000 on exploration during the prior quarter and with the budgeted total spending of $940,000 during the December quarter. A share purchase plan to raise up to $2.25 million has been announced. Verdict: Sizzle. 

Elysium Resources announced that it had completed due diligence on an acquisition of gold and base metal properties in the Pilbara region of Western Australia, first foreshadowed in late October having already flagged that it would favour gold over base metals in its 2018 exploration efforts. Previously, the company�s primary interest had been in properties prospective for copper-gold mineralisation in central New South Wales. The company�s decision-making appears indicative of a weak commitment or an insufficiently strong intellectual underpinning to its exploration efforts.  With the new spread of interests, the company would have been at risk of losing focus with the consequence of having to make choices about the allocation of capital and spreading its management over a broader geography. The company has flagged a change in name to reflect its new priority in the Pilbara region and the downgrading of its New South Wales efforts. At the end of September 2017, the company held cash assets of $1.9 million to further its exploration activities after having raised $2.2 million from an issue of new shares during the quarter. Verdict: Sizzle. 

 Week ended 3 November 2017

THEME OF THE WEEK: More Battery Frenzy

Gulf Manganese Corporation reported progress toward completion of its ferro-manganese smelting hub in west Timor, in its quarterly activities report. The company announced that it had entered agreements to purchase ore for the startup smelting operation in 2018.  Meanwhile, it expects to ship its own ore in late 2017.  The company�s strategy involves a staged increase in smelting capacity as market development permits.  The company also advised that it had completed the final $1.5 million tranche of a funding round dating from June 2017. At the end of September, the company held cash assets of $3.6 million with expected December quarter expenditure of $3.15 million.  Verdict: Steak.

Anson Resources announced that it had executed a memorandum of understanding with a Chinese group to assist in the development of the company�s lithium brine project in Utah. The Chinese party also took an $800,000 equity stake in the company currently capitalised at $29.5 million. The company had also announced that the Utah state government had given the company permission to commence drilling activity in the fourth quarter of 2017.  Verdict: Sizzle. 

Liontown Resources announced that initial rock chip sampling at a recently acquired property in Western Australia had recorded high-grade lithium mineralisation of up to 4.6% Li2O. Previous exploration work in the area had focused on gold and nickel.  The company had cash assets of $925,000 at the end of September 2017.  Verdict: Sizzle. 

Sundance Resources retains a large but stalled iron ore development in Cameroon which also requires extensive rail and port construction for its commercial viability. In its September quarter activities report, the company said that it had seen increased interest in the project from companies able to participate in the infrastructure components and capable of helping with funding.  At the end of September 2017, the company had cash assets of $2.3 million after spending $0.6 million in the prior quarter. Verdict: Sizzle. 

Blina Minerals announced that it had acquired exploration interests in an area of Chile with a history of high-grade cobalt mineral discoveries. The company, currently capitalised at $3 million, agreed to issue 1.05 billion shares, an increase of 36%, in stages to secure its interest in the properties. The company had $340,000 in cash assets at the end of September 2017 with estimated expenditures of $167,000 in the December quarter.  The company has pre-existing gold exploration interests in Burkina Faso which it has characterised recently as �highly prospective�. Additionally, the company reported that it had been reviewing new projects in Australia and overseas. Verdict: Sizzle. 

October 2017

THEME OF THE MONTH: Batteries

Of the highest returning companies during October, the following are commented upon elsewhere:

Kogi Iron aspires to be a steel producer in Nigeria. The company was queried by ASX in mid-October about the reason for its unusually strong share price rise but declared it had no information which had not already been disclosed. The company reported later in the month that it had shipped a sample of ore from Nigeria to South Africa for testing. The company had cash assets of $771,000 at the end of September 2017 after having raised $963,000 and before anticipated spending in the December quarter of $590,000.  Verdict: Sizzle. 

Sayona Mining has acquired lithium related interests in Quebec and Western Australia, the latter of which is also in the vicinity of recent gold nugget discoveries which has prompted a rush of companies into the region. The principal focus of the company is its Quebec lithium interests which are progressing toward a feasibility study. At the end of September 2017, the company had cash assets of $413,000 with anticipated December quarter spending of $1.7 million. The company has a $4.9 million rights issue under way. Verdict: Sizzle. 

 Week ended 27 October 2017

THEME OF THE WEEK: WA Gold Frenzy

Stone Resources Australia is an infrequently traded stock with gold exploration interests in the Laverton region of Western Australia.  The company�s June quarter activities report comprised two sentences in four lines of text. The company has received unusually strong investor interest in the past six trading days during which time share turnover has been several times higher than normal monthly volumes.  The company has not disclosed any information which might have caused the added activity.  The company had previously reported having only $64,000 in cash assets at the end of September 2017.  Shortly after, the company had said that a party related to its largest shareholder had agreed to provide a $500,000 convertible loan. Verdict: Sizzle. 

Petrel Energy announced that drilling in Uruguay had confirmed oil shows in sand at a depth of 793 metres. The results are too insignificant to excite views about production potential but are worthy of comment for being the first onshore exploration well in the country for 30 years. The company announced that it would be seeking to raise up to $5.4 million after having finished the September quarter with cash assets of $592,000 and budgeted expenditure in the December quarter of $5.3 million. Verdict: Sizzle. 

Lake Resources has made several recent references to preparations to commence drilling at a lithium brine project in Argentina. The latest disclosure at the end of the week referred to the final step in the drilling approval process involving local community consultations having been completed. The company had $1.4 million in cash available at the end of June 2017 with expected expenditure of $509,000 in the already completed September quarter. Verdict: Sizzle. 

Elysium Resources announced that it had entered into a binding agreement to purchase exploration interests in Western Australia prospective for gold and base metals and covering Witwatersrand formations which have created excitement as the source of recent nugget discoveries in the Pilbara region. The transaction will more than double the number of shares on issue and include the need for a capital raising. At the end of June 2017, the company had available cash assets of $922,000 prior to spending $524,000 during the September quarter. Verdict: Sizzle. 

Andromeda Metals announced an agreement under which it would acquire up to 11 exploration licence applications in the Pilbara region of Western Australia. The company also announced commitments from investors to subscribe $1.98 million to permit recommencement of exploration activities. The company joins the rush into the region after the Novo Resources discovery referred to in earlier posts over the past six to eight weeks. The company had previously been primarily interested in South Australian exploration interests. It had cash assets of $268,000 at the end of June 2017. Verdict: Sizzle. 

 Week ended 20 October 2017

THEME OF THE WEEK: Inexplicable

Target Energy did not make any formal disclosure which might have accounted for the recorded share price rise.  As reported previously in the �Steak or Sizzle?� blog, Target Energy has been seeking to restructure its North American business.  With a sub-$5 million market value, the company will be especially highly leveraged to any improvement in U.S. oil market conditions or changed expectations about the speed of its asset restructuring.  Verdict: Sizzle. 

Resource Mining Corporation attracted significantly greater investment interest in the past week than it is used to receiving.  During October, its share turnover has been more than ten times the level in preceding months.  Having been queried by ASX about reasons for the rise, the company said it did not have any relevant information that had not already been disclosed.  The company�s sole focus has been a nickel laterite project in Papua New Guinea.  At the end of June 2017, the company had cash assets of just $51,000 and had budgeted to spend only $92,000 in the September quarter.  The company is 47% owned by a Hong Kong based investor.  Verdict: Sizzle. 

Australian Mines was queried by ASX about why its share price has risen so significantly.  The company said that it had nothing to disclose but drew attention to the disparity between its own market value and that of another company with a similar cobalt-nickel resource.  The managing director of the company referred to having received feedback at an investment conference in Hong Kong about the opportunity for arbitrage between the two companies.  The prices of both have risen through October on unusually strong share turnover.  Verdict: Sizzle. 

Lepidico did not disclose any new information to account for the share price rise.  The company had dispatched a prospectus for a rights issue immediately prior to the increased investor interest but additional share purchases would not have improved the entitlement to participate in the issue.  New funds are expected to go to completion of technical studies to demonstrate the effectiveness of the company�s technology used to process lithium-bearing ores and to continue related exploration activities.  The effectiveness of the Lepidico technology has not been demonstrated in full scale operations although tests have shown that it can process previously untreatable ores containing lithium.  Earlier in the month, Galaxy Resources took a 12% stake in the company via a $2.9 million share placement at one-third of the company�s closing price on Friday.  Verdict: Sizzle. 

Hampton Hill Mining is an infrequently traded stock with zinc exploration interests in the Pilbara region of Western Australia.  The company did not making any specific disclosures which might account for the change in market value.  The company had cash assets of $75,000 at the end of June 2017 with foreshadowed expenditure of $185,000 in the recently concluded September quarter.  The company had a partially used finance facility from interests associated with its directors on which to draw.  The share price rise occurred with turnover worth only $1,000 in the only trade of the month so far.  Verdict: Sizzle. 

 Week ended 13 October 2017

THEME OF THE WEEK: One Weekly Gem

Castle Minerals announced that it had secured the rights to acquire an 80% interest in two licence applications in the eastern Pilbara of Western Australia.  The tenements were described as having been the source of nuggets discovered by fossickers. The proposed acquisition coincides with a rush to acquire rights in the Pilbara region after reports from Novo Resources that it had discovered Witwatersrand type mineralisation on its tenements sparked large revaluations in market values among companies with interests in the area. Castle Minerals reported having cash assets of $289,000 at the end of June 2017. The company did not have any particular exploration focus having been in the process of reviewing opportunities across a range of commodities and countries.  Verdict: Sizzle. 

Nex Metals Exploration announced that it had received approval for a trial processing of ore from its Kookynie gold tailings project north of Kalgoorlie.  The company held cash assets of $718,000 at the end of June 2017 after having received $1.04 million to finalise the sale of the Kookynie gold project.  The company has said that it continues to evaluate projects but that they �need to show exceptional value� in the current commodities market.  Apparently, that had not been a criterion for past investments.  Verdict: Sizzle. 

Lakes Oil announced that it had put a proposal to the Victorian state government under which it would begin exploration for gas using conventional drilling techniques to help alleviate the increasingly acute shortage of gas for power generation. Lakes Oil, which had extensive properties prospective for oil and gas in the state, has been blocked from exploration by a government ban on all forms of gas exploration. While the proposal by the company is a seemingly reasonable way for both parties to work together, the overtly political nature of the ban may prevent the government giving way. The possibility of a breakthrough raises hope that something may eventuate but there has been no reported response from the relevant minister to the communication from the company making a judgement about the likelihood of a change premature.  A sensible government would permit a �Steak� rating for Lakes Oil.  Verdict: Sizzle. 

Uranium Equities announced that a review of historical auger sampling results from its Dundas project near Norseman in Western Australia had shown a lithium and beryllium anomaly. The company had been reviewing all of its tenement data for gold prospectivity, including for the Dundas area which was acquired in June 2017. The company had previously flagged a change in name to reflect its pursuit of a wider commodity exposure than the uranium orientation which had been its principal focus. The company had $146,000 at the end of June 2017 with the intention of spending $215,000 in the September quarter. In the past week, the company announced that it had raised $570,000 to pursue copper-gold and lithium exploration interests in Western Australia and the Northern Territory. Verdict: Sizzle. 

Mustang Resources, which is scheduled to conduct its first ruby gemstone tender at the end of October 2017, announced that it had accumulated an inventory for sale in excess of 350,000 carats. The tender will be a critical step in guiding expectations about the longer term revenue potential of the company although it has yet to make any formal disclosures about its sustainable ruby production. Proceeds of the sale will contribute to the formal definition of a resource at its Mozambique mining tenements. Having spent $10.9 million in 2016/17, the company�s cash assets had declined to under $400,000 by the end of June 2017 with upcoming expenditure of $3.4 million. The company has raised relatively small amounts to fund ongoing activities.  With the large share price rise in the past week and a strong marketing campaign based around its unique investment offering having been undertaken, a significant capital raising should be expected despite the proximity to receipt of its first revenue. Verdict: Steak.

 Week ended 6 October 2017

THEME OF THE WEEK: New Directions

Kalamazoo Resources announced that it had acquired options to purchase three gold projects in the Pilbara region of Western Australia.  In making its announcement, the company highlighted the proximity of the properties to those of Novo Resources and an array of other explorers caught up in the excitement over the possibility of a Witwatersrand type mineralisation in the region.  The company has 90 days in which to exercise the options for which it has paid $150,000 and issued shares valued at $200,000 enabling it to acquire interests of between 80% and 100%.  On exercise, payments of $150,000 and $250,000 in cash and shares, respectively, will be required.  One million dollars will be payable upon estimating a 50,000 oz resource.  The company had $3.6 million in cash assets at the end of June 2017 after having raised $6.1 million in new equity in the past year.  The company spent 43% of its 2016/17 outlays on exploration.  Verdict: Sizzle. 

Traka Resources has exploration interests in Western Australia.  In September, the company said that exploration drilling was about to commence at its Latitude Hill and Ravensthorpe properties. The former is subject to a 70% earn-in by Chalice Gold which is seeking to identify what it has described as Nova/Bollinger style mineralisation. The latter includes a joint venture north of Mt Caittlin prospective for lithium and tantalum.  The company did not disclose any further details to which the large increase in market volumes in the past week could be attributed although interest had risen considerably through the latter part of September. Traka Resources held cash assets of $855,000 at the end of June 2017 with expected expenditure in the September quarter of $268,000 of which 44% was to cover exploration activity. Traka relies on free carried interests in its properties for its investment appeal.  Verdict: Sizzle.  .

Mount Burgess Mining announced that the first phase of diamond drilling at its Nxuu lead-zinc-silver prospect in Botswana �will commence soon�. The anticipated program will build on exploration drilling in 2011 as a precursor to a feasibility study in 2018.  At the end of June 2017, the company had cash assets of $126,000 after having raised $183,000 in the quarter and before anticipated expenditure of $112,000 in the following three months. Verdict: Sizzle. 

Inca Minerals had reported grades in excess of 6% zinc and 4% lead from underground channel samples at a mineral concession in Peru. It subsequently reported grades of between 15% and 41% zinc from a second source.  The site of the mineralisation had been worked on a small scale historically. The company which had raised $6.2 million during 2016/17 raised a further $250,000 in July although it had ended June with cash assets of $3.1 million. It had expected to spend $1.1 million over the last three months.  Verdict: Steak.

Emu, with gold exploration interests in Utah and Chile, did not make any significant disclosure of new information but lodged a document entitled �Introducing EMU� with the ASX in which it outlined its business strategy. The company�s primary focus is now on a gold target in Chile after its pursuit of a Carlin-style gold system in Utah fell short of its objectives. The company is scheduled to commence soil sampling in November 2017 and drilling in December.  This is a very early stage venture even for a sector steeped in very early stage exploration objectives. The document lodged with the ASX appeared designed to attract attention and could be best described as being what you say when you do not really have anything significant to say.  The company has $2.7 million to spend on its next steps including $470,000 in the September quarter, three quarters of which was expected to be on exploration activities.  Verdict: Sizzle. 

Month ended 30 September 2017

 Quarter ended 30 September 2017

Year to date 30 September 2017

 Year ended 30 June 2017

 Week ended 29 September 2017

THEME OF THE WEEK: Pilbara Gold Rush

DGO Gold has been caught up in the ensuing gold rush after Novo Resources and Artemis Resources reported finding nuggets on their Pilbara region exploration tenements (see below).  The finds appear to have attracted considerable interest with reports of individuals heading to the area with metal detectors.  The discoveries themselves are insufficient to enable an assumption that sustainable mining operations are possible.  The inconsistency and unpredictability of the finds will make funding mining activity for a publicly listed company difficult.  That is not to say that periodic new finds will not keep interest alive and produce multiple trading opportunities for equity investors.  Verdict: Sizzle. 

De Grey Mining announced that he had increased its estimated Pilbara region gold resource by 207,000 ounces to 1.2 million ounces. Earlier in the week, the company had also announced the discovery of gold nuggets at its Pilbara properties playing into the excitement generated by Novo Resources and Artemis Resources following their identification of �Witwatersrand� style gold mineralisation.  At the end of the week, the company had requested a trading halt pending the release of an announcement on Monday.  Verdict: Sizzle. 

Kairos Minerals is another one of the companies caught up in the frenzy over Pilbara gold nuggets (see below).  At the end of the week, the company said it would start an exploration program within a week.  Being able to report multiple gold nugget finds may create considerable interest but still leave an insufficient basis upon which to draw a conclusion about the prospects for a commercially sustainable mining project.  Verdict: Sizzle. 

Hamoa Mining did not make any disclosure to precipitate the recorded share price gains although the company has gold-related tenements in the Pilbara.  It had reported having only $10,000 in cash assets at the end of June 2017 leaving it to rely on debt funding from its chairman.  The company has said it expects to spend $750,000 in the September quarter. Verdict: Sizzle. 

Venturex Resources is another company caught up in the Pilbara gold rush.  It has tenements which cover interpreted extensions of mineralisation within the properties of De Grey Mining. The company had reported $960,000 in cash assets at the end of June 2017 with anticipated spending in the September quarter of $1.41 million. These companies with gold exploration interests in the region are now highly likely to refresh their funding to take advantage of the intense interest arising from frequent reports of nuggets being discovered.  Verdict: Sizzle. 

 Week ended 22 September 2017

THEME OF THE WEEK: Repriced Oil Exploration

Norwest Energy, prospecting for all oil in the Perth Basin in offshore Western Australia, reported intersecting hydrocarbon bearing reservoirs at its Xanadu-1 well. The company has a 25% interest in the well on which further work must now be carried out to clarify the nature of the discovery. The company�s financial resources remain limited with only $542,000 available at the end of June 2017 and anticipated spending of $350,000 in the current quarter. During the quarter, the company raised additional funds of $1 million to meet near-term expenses. Verdict: Steak.

Gladiator Resources disclosed in July 2017 that the company had conducted no exploration activity in the preceding quarter and had no interest in any mining or exploration tenements. The company had, however, entered into an agreement to acquire gold exploration properties in Western Australia in exchange for 5 million shares in the company with a market value of $15,000 at the time. There have been no subsequent disclosures about the transaction but the company did advise the market that it had raised $150,000 through a share placement. At the end of June 2017, the company reported having cash assets of only $92,000. Verdict: Sizzle. 

Jacka Resources is an oil and gas exploration company with minor interests in a range of African properties and cash assets at the end of June 2017 of $398,000. Exploration expenditure in the quarter had ceased with upcoming corporate spending of $200,000. Trading volume increased strongly in the past week but, when queried by ASX about reasons for the heightened activity, the company was not able to identify any reasons.  More broadly, prices of oil exploration stocks have increased recently with signs of having broken above a previous downtrend associated with weak crude oil markets.  Verdict: Sizzle. 

Kairos Minerals reported that a field assessment of its exploration tenements had identified rocks consistent with the nearby gold discoveries by Novo Resources and Artemis Resources (see below). Interest in the region has led the company to fast track further field work to take advantage of other companies wishing to access the area.  A week earlier, the company had raised $1.71 million after having been left with $1.4 million at the end of June 2017 and needing $750,000 to meet upcoming spending commitments.  Verdict: Sizzle. 

Triangle Energy (Global) has had a rising price trend since late July 2017 during which time it has been among the best performing stocks in the sector. Triangle has a 30% interest in the Xanadu-1 well in which Norwest Energy (see above) is the operator and holder of a 25% interest.  Verdict: Steak.

 Week ended 15 September 2017

THEME OF THE WEEK: Ideas Without Funding

Dark Horse Resources has disclosed ambitious plans to identify and develop pegmatite mineralisation in Argentina with a view to meeting growing demand for lithium. To that end, the company made an announcement at the end of the week that its managing director had actually visited its Argentine properties during late August-early September. It may take up to two years for the company�s plans, all going well, to lead to a resource estimate. The company�s move on lithium involves divesting coal and related power interests which had been its earlier focus. At the end of June 2017, the company had cash assets of a $294,000 and near-term anticipated cash outflows of $200,000 leaving a question about its ability to do justice to any portfolio of exploration properties.  Verdict: Sizzle. 

Emperor Range Group is a very infrequently traded stock with a $1.35 million market value and a focus on exploration interests in China. Over 90% of the outstanding shares in the company are owned by three Chinese-connected investors.  The company only spent $43,000 over the first six months of 2017.  Verdict: Sizzle.

Wolf Minerals has a tungsten development underway in southwest England with an end 2017 target to establish a sustainable production base after previously falling well short of nameplate capacity. At the end of August, the company had announced the receipt of additional funds from an existing financial backer but has not made any significant disclosures to validate a higher market value. The tungsten price has, however, been improving benefitting a range of other tungsten-related investments.  Verdict: Sizzle.

Pancontinental Oil and Gas announced that it had negotiated a capital injection into a subsidiary engaged in offshore Namibian oil and gas exploration giving Pancontinental an effective 20% residual holding. The company has been caught up in the share price weakness facing the oil and gas exploration sector.  The recent share price action for Pancontinental coincides with some improvement in sector prices. Verdict: Sizzle.

Diatreme Resources has a mix of exploration properties extending across Western Australia, South Australia and Queensland. The company announced that it had entered into a non-binding memorandum of understanding with a Chinese engineering group for completion of a bankable feasibility study for its Cyclone zircon project in Western Australia near the South Australian border. The agreement covers assistance with sourcing of equity and debt funds through Chinese institutions. The company has reported having only $51,000 available to fund its activities at the end of June 2017. At the end of July, the company said that it was in the midst of raising additional capital but has since made no announcement about the adequacy of its cash resources. Verdict: Sizzle.

 Week ended 8 September 2017

THEME OF THE WEEK: Mostly Hope

Valor Resources has been building share price momentum since of the end of August when it had reported exploration results from its Berenguela copper-silver project in Peru. The company had highlighted intercepts of 8 metres at 2.95% copper and 3 metres at 5.42% in a manganese oxide orebody. Silver content exceeded 4,000 g/t in the latter intersection. During the latest week, the company disclosed further detail about the drill results confirming the high-grade intercepts. The company appears to have encountered a high grade zone within one of a possible network of mineral lenses with further modeling necessary to clarify its understanding of the regional geology. The company had $2.0 million in cash assets at the end of June 2017 with which to carry out its exploration efforts after having raised $2.2 million during the preceding quarter. Verdict: Steak.

Tungsten Mining had been on a rising share price trend (commented on below) since mid-July before an acceleration in the speed of the rise in the past week. Questioned by ASX about the reason for the latest rise, the company said that it had no information to disclose although directors drew attention to the large rise in tungsten prices which had occurred recently as a possible reason for the fresh investor interest. Verdict: Steak.

Astro Resources announced that it had agreed to purchase 100% of a gold-silver project in Nevada to complement its mineral sands, diamond and base metal exploration interests in Western Australia. The company has been financially stretched and will struggle to do justice to its exploration interests. At the end of June 2017, the company�s meagre cash assets of only $7,000 required it to rely on borrowings to keep the corporate doors open. Whether the company will be able to convince investors that the quality of its assets warrant funding is yet to be seen.  Verdict: Sizzle.

Ventnor Resources has base metal exploration interests in Western Australia but made no fresh disclosure in the past week to warrant the unusually strong share price performance.  The infrequently traded stock also attracted unusually high turnover. The gain came after the company had struck historically low price levels leaving the higher share price at the end of the week little different from the price which had prevailed over the previous six months.  Verdict: Sizzle.

MRG Metals has had gold and base metal exploration interests in Western Australia and Queensland. The company also has a farm-in agreement with Mandalay Resources covering a base metal exploration property in Sweden under which MRG can acquire a 50% interest over three years. In the event of a discovery, in an unusual agreement, Mandalay has an option to buy back the MRG interest leaving some uncertainty about the nature of the company�s exposure to exploration success. In August, the company outlined plans to commence drilling in the near term. Despite not having made any announcements more recently about its activities, the company attracted unusually heavy investor interest through the week with volumes over the first few days of September approximating those in August as a whole.  The company had limited cash assets of $588,000 at the end of June 2017. Verdict: Sizzle.

 Week ended 1 September 2017

THEME OF THE WEEK: Struggling

Red Mountain Mining benefited from a surge in trading activity. Having been queried about the market action, the company was unable to identify a reason for the heightened interest. The company which had a long history in the Philippines has given up on its gold exploration initiatives in favour of a cobalt-copper project in the Democratic Republic of Congo. Finalisation of the Congo earn-in agreement has been postponed on several occasions.  The company had also had lithium exploration interests in the USA but drilling results at the brine prospects have not justified further work.  Verdict: Sizzle.

Genesis Minerals announced drilling results from properties currently held by Metallo Resources over which Genesis holds options to purchase. The results from the company�s Murchison district tenements are regarded as good enough to warrant proceeding with the purchase. Reported intersections have included 17 metres at 3.36 g/t of gold and 9 metres at 18.8 g/t. The May 2017 purchase agreement was subject to an initial proof of concept exploration program. The company is well positioned financially with cash assets of $4.2 million available at the end of June 2017.   Verdict: Steak.

Real Energy Corporation has been pursuing development of a Cooper Basin gas project aimed at the emerging gas shortage in eastern Australia. The company has been testing its Tamarama-1 well and has negotiated a memorandum of understanding with Santos for the processing of gas. There was no new disclosure to precipitate last week�s price action but the company did release a presentation suggesting that it will have been speaking with investors about its prospects.  Verdict: Steak.

Global Petroleum benefited from a surge of investor interest without having made any specific announcement about its business activities.  The company�s primary exploration efforts are in offshore Namibia.  Verdict: Sizzle.

Sundance Resources was dramatically affected by the cyclical slump in iron ore prices which prevented it financing a major iron ore development in Cameroon. Efforts to negotiate financing and construction agreements with Chinese parties have continued while prices have been cyclically low with the company retaining hope that the major infrastructure project involving rail and port facilities as well as a mining hub can proceed.  The company is under some pressure from the government to show progress or possibly lose access to the tenements.  It has made no specific announcement about development progress but has foreshadowed a capital raising through a share purchase plan issue to assist in near term needs. Verdict: Sizzle.

 August 2017

THEME OF THE MONTH: Breakthrough Prices

Of the highest returning companies during August, the following were commented upon previously:

Apollo Consolidated made several announcements during the month about gold exploration progress at prospects near Kalgoorlie in Western Australia. The company reported intersections of wide zones of strongly sulphidic alteration.  The company also reported that down-hole electromagnetic surveying had identified off-hole conductors.  Assays of up to 17.8 metres at 15.95 g/t were reported from one hole with 28 metres at 2.41 g/t recorded from a second.  The company is in a relatively strong financial position having reported cash holdings of $9.2 million at the end of June 2017.  Verdict: Steak.

Draig Resources reported that it had reviewed data sets from historical workings at the Bellevue gold mine near Leinster in Western Australia. The data examination is intended as a precursor to a program of field work with geophysical analysis assisting in the identification of drill targets around historical tailings and instances of more shallow mineralisation. Later in the month, the company announced that it had received commitments from investors for $3.3 million in fresh equity financing part of which is subject to shareholder approval.  The company had cash assets of $1.7 million at the end of June 2017.  Verdict: Sizzle.

 Week ended 25 August 2017

THEME OF THE WEEK: More Undercapitalised Efforts

Cougar Metals had been earning a 50% interest in a Madagascan graphite project as well as having interests in Brazilian lithium.  The company announced at the start of the week that it had received an extension of time within which to meet its obligations under the graphite project farm-in agreement.  Subsequently, the company received increasingly strong investor interest before being placed in a trading halt on the last day of the week, presumably pending a clarifying announcement about the source of the renewed interest in the company.  Verdict: Sizzle.

DGO Gold drew attention to its land position southeast of Karratha in Western Australia following discovery of gold nuggets by Artemis Resources in the same region. Both Artemis and DGO have highlighted the geological similarities between the discoveries in Western Australia and other occurrences of mineralisation in gold-rich regions of South Africa. The company sees the recent finds as consistent with its own exploration approach which has remained subject to validation with the help of outside consultants. After raising $942,000, the company had cash assets remaining of $959,000 at the end of June 2017 to carry on its exploration program which, with administration costs, was expected to cost $298,000 during the September quarter. Verdict: Steak.  

Pacific Bauxite had conducted a general meeting of shareholders in the week before to approve prior issues of shares and to replenish its future share issuance ability after which it received a strong surge in investor interest. Following a query from the ASX about reasons for the share price rise, the company referred to the recent commencement of exploration activity and renewed investor sentiment about aluminium-related investments.  Earlier in August, the company had been granted a prospecting licence covering areas in the Solomon Islands prospective for bauxite. At the end of June 2017, the company reported having cash assets of $455,000 while expecting to spend $376,000 in the following three months raising the likelihood of it needing additional capital in the near term. Verdict: Sizzle.

Cannindah Resources reported that its exploration efforts at the Piccadilly gold exploration site in Queensland had resulted in evidence of mineralisation over a wider area than had previously been discerned. The company is operating on a tight budget with only $318,000 available to spend at the end of June 2017 after having raised $300,000 through a convertible note issue. Expected expenditure on exploration in the September quarter was just $75,000 with $120,000 to go on administration and corporate costs suggesting it is under-resourced financially to do justice to its exploration potential.  Verdict: Sizzle.

Triple Energy rose from the lowest share price in the 12 year history of the company leaving it very close to the lower end of its historical trading range. The Chinese coal bed methane project developer had received a query in the past fortnight from the ASX asking about the adequacy of the company�s cash resources.  In response, the company indicated that it would continue to rely on the support of its largest shareholder to provide finance and assist in capital raising as it has done before.  Verdict: Sizzle.

 Week ended 18 August 2017

THEME OF THE WEEK: Premature Excitement

Artemis Resources, a Western Australian gold explorer, announced that it had finalised a joint venture agreement with Novo Resources Corp covering a part of its exploration tenements near Karratha. The announcement on Wednesday came several days after the company�s share price had commenced to rise. Queried about the rise by the ASX, the company said it that it had expected the deal to remain confidential until it had been finalised.  The company�s share price has more than quadrupled since mid July during which time it has reported high-grade gold conglomerates. Verdict: Steak.

Metals Australia has a portfolio of exploration interests including uranium in Namibia, base metals in Western Australia and lithium in Quebec.  There was no company-specific news during the week to attract the fresh investor interest which helped the company�s share price to recover from levels previously reached in late 2016.  Verdict: Sizzle.

NMG Corporation has tenements prospective for gold in Ghana which have been subject to renewal and, as a result, have attracted a minimal spending commitment from the company which has also announced that directors would forgo their fees until the financial position of the company has improved. The company had $0.48 million in cash at the end of June 2017 but announced on 11 August that it had raised $200,000 in a placement. The subsequent share price rise in the infrequently traded company came from a handful of low value trades.  Verdict: Sizzle.

Atrum Coal, whose market value had declined by over 80% in12  months, announced that it had appointed an experienced Canadian executive as managing director of the company. Subsequently, the company announced changes to the non-executive directors on its board.  The company has been seeking to develop anthracite interests in British Columbia. Progress in terms of timing and size of development has fallen short of what the company had originally portrayed as its potential when attracting investors. The company�s comments have not indicated a significant improvement in the outlook for international markets with sales having been limited to North America without any penetration of the long-promised Asian buyers.  The most recent share price action indicates some momentum improvement but only a minor recoupment of losses over the prior year. Verdict: Sizzle.

OM Holdings received a query from the ASX during the week about the rise in its share price. There was no company-specific information to explain the rise but the company did point to an announcement by the owners of the Woodie Woodie manganese mine that they intended to recommence operations following an improvement in market conditions. Comments on an earlier period of strong market performance (during the week ended 9 December 2016) can be found here. Verdict: Steak.

 Week ended 11 August 2017

THEME OF THE WEEK: Undercapitalised Efforts

Oil Basins reported a reassessment of historical data relating to oil and gas resources in the vicinity of its Bass Strait exploration interests in relatively shallow water off of the Victorian coast. Significantly larger conventional gas potential has been identified from reprocessed data by a newly appointed consultant. The company�s financial position, with cash assets of only $58,000 at the end of June 2017, will limit the extent to which it is able to initiate an appropriate exploration effort without some combination of capital raising and farm-out agreement. The infrequently traded company attracted a large increase in trading interest in the last day of the week.  Verdict: Sizzle.

Force Commodities announced that it had executed heads of agreement with a state-owned company and a privately held group to acquire 70% interests in licences over areas within the Democratic Republic of Congo prospective for lithium, tin and tantalum mineralisation. The agreement remains subject to conditions including completion of a technical due diligence and shareholder approval. The transaction involves a combination of cash, shares and assumption of vendor liabilities. The number of new shares to be issued will approximate 50% of the number currently outstanding in the $11 million company. The company had previously reported that it held cash assets of $478,000 at the end of June 2017 suggesting that it will need to raise additional capital in the near term and possibly before it is able to conduct any meaningful exploration activities over the newly acquired properties. The company had expected to spend $415,000 in the September quarter of which $318,000 was to cover administration and corporate costs.  Verdict: Sizzle.

Triangle Energy attracted consistently higher trading volumes throughout the week without having made any specific announcement to spur new investor interest.  The company did release an investor presentation in which it outlined exploration and development plans for its oil and gas interests in the Perth Basin of Western Australia. The company reported positive operational cash flows in the June quarter leaving it with cash assets at the end of the period of $2.2 million following a capital raising of $1.5 million. With a market capitalisation of $15 million, the company�s present cash flows remain expensive.  The company�s ultimate attractiveness will rest on a more aggressive exploration effort or on its ability to source product from other companies drilling in the region and wishing to utilise an expanded regional processing centre operated by Triangle Energy approximately 350 kilometres north of Perth.  Verdict: Sizzle.

Zinc of Ireland announced at the end of the week that drilling had commenced at its Kildare zinc prospect in Ireland.  There were no details to disclose. Earlier in the week, the company had announced receiving �significant interest� from sophisticated investors prepared to take up a shortfall in a poorly subscribed rights issue. Other than expectations about the possibility of favourable drill results being reported in the near future, there was no obvious connection between what the company had disclosed and the market reaction. At the end of June 2017, the company held cash assets of $1.4 million prior to its targeted rights issue raising of $1.6 million and expected spending of $0.68 million in the September quarter.  Verdict: Sizzle.

Tungsten Mining announced that it had received environmental approvals from the Western Australian and Australian governments enabling its Mt Mulgine tungsten project in the Murchison region to remain on track for production in 2018.  Investor interest during the week had predated the announcement continuing a strong upward trend evident since early July and commented on below for the week ended 21 July 2017.  Verdict: Steak.

 Week ended 4 August 2017

THEME OF THE WEEK: Fresh Starts

Pelican Resources has no currently operating mines or exploration interests. It has been in a prolonged negotiation over the sale of mineral interests in the Philippines which has most recently been delayed by government regulations limiting the shipment of the lateritic nickel ores present on the tenements in question. The share price performance, based on a small number of trades in an infrequently traded stock, has coincided with the recent rise in the price of nickel metal. Verdict: Sizzle.

King River Copper received a query from the ASX about the share price rise experienced by the company.  It was unable to point to any specific reason but, in replying, highlighted interest by investors in the Speewah mineral resource in Western Australia where the company had originally begun exploring for copper-gold mineralisation.  Subsequently, assays showed a vanadium resource which has been estimated at 4.7 billion tonnes grading 0.3% vanadium pentoxide and 2.0% titanium.  The vanadium find has prompted studies into whether the mineral can be commercially processed.  The company had cash holdings of $716,000 at the end of June 2017. Verdict: Sizzle.

Impact Minerals reported visible mineralisation from diamond drill holes at its Silica Hill prospect in New South Wales where the company is seeking to identify high-grade feeder zones to an existing gold-silver discovery. The company has said that the metal composition of the mineralisation is consistent with the edges of a high grade feeder zone which, if demonstrated, would confirm the company�s interpretation of the nature of mineralisation in the region.  Assays have not yet been completed. The company had cash assets of $1.9 million at the end of June 2017 after having completed a capital raising during of the month.  It expected to spend $810,000 in the September quarter. Verdict: Steak.

Sabre Resources has been exploring properties in northern Namibia for copper although it is currently awaiting approvals from the government to renew existing exploration licences.  Its minimal levels of expenditure have been associated with compilation of the relevant documentation required for the mining licence applications which would allow continuation of exploration and evaluation activities. The cash holdings of the company at the end of June 2017 were only $66,000.  Verdict: Sizzle.

Red 5 announced a new growth strategy involving consolidation of mineral properties prospective for gold in Western Australia after having spent many years attempting to bring a Philippines gold mine into production. A succession of operational shortcomings, unfavorable natural conditions and uncertainty about the regulatory environment have either hampered or forced closure of the Siana mine development from time to time.  The company has agreed to purchase an operating gold mine and mill about 900 kilometres northeast of Perth in the Leonora-Leinster gold district where it could establish a regional processing hub.  The company has also agreed to buy non-core assets from Saracen Mineral Holdings within the region. Completion of the transactions is expected at the end of September 2017.  The $33 million market cap company intends to raise $12.5 million to meet its purchase obligations which also involve the vending companies taking large stakes in Red 5. The company had cash assets of $13.2 million at the end of June 2017. Verdict: Steak.

 July 2017

THEME OF THE MONTH: Still Searching

Changes in strategic direction as companies have looked for new lines of business have been among the principal sources of investment returns among the best performing stocks during July. In the majority of cases among the five best performing stocks, the resulting share price has remained close to the average in the prior several months suggesting that gains have been a reaction from unusually low prices. 

New Talisman Gold Mines, reviewed on 14 July 2017, was the only one of the five companies being rewarded for pursuing a development commitment. 

South Pacific Resources, reviewed on 14 July 2017, appeared to have little financial capacity to add value to its PNG oil and gas assets suggesting investors were anticipating a change in its financial position. 

Mindax, reviewed on 28 July 2017, confirmed it would be on the lookout for new opportunities after it had received commitments for new capital. 

American Patriot Oil and Gas, reviewed on 28 July 2017, had foreshadowed looking for new businesses in which to invest. The company went into trading halt at the end of the month after the share price had risen but before it had made any announcement about an acquisition to validate the share price rise.

Avonlea Minerals has assembled a portfolio of lithium exploration interests in the Democratic Republic of Congo.  Avonlea has a 60% interest in one project acquired in May 2017 and which the company has described as being the Escondida of lithium.  Mining which began in the area in the early 1900s ended in the 1980s.  The Katanga mining region in which the project is located has been the destination for significant amounts of Chinese direct investment raising the chance of a Chinese partner being found to facilitate development. The company has outlined a highly aggressive development timetable which only the most experienced of managers is likely to achieve.  Verdict: Sizzle.

 Week ended 28 July 2017

THEME OF THE WEEK: Searching for Cobalt

Mindax, a company with iron ore and gold interests in western Australia, released its quarterly activities and cash flow reports which showed that it had finished the June quarter with a available funds of only $22,000. The company confirmed that it had negotiated a funding package to raise approximately $3 million through a member of its board. The company also disclosed that no significant geological work had been undertaken during the quarter and that it will undertake a search for new opportunities after completing its refinancing. Verdict: Sizzle.

Riedel Resources completed a share placement to raise $0.55 million and announced a rights issue to raise $1.4 million. Its cash assets at the end of the March quarter were $1.02 million. The company also announced that it had agreed to acquire interests in northern Spain which would involve it exploring for cobalt, copper, nickel and gold. The company is able to earn an interest of up to 90% through exploration and development expenditure of at least two million euros over three years. The Spanish mineralisation has been subject to historical mining activity dating from the nineteenth century. The company simultaneously replaced two directors to help �drive its new direction of securing and developing cobalt and tech-energy metal opportunities in key European lithium-ion battery markets�.  Verdict: Sizzle.

Blackstone Minerals announced that it had agreed to acquire a 100% interest in a Canadian property hosting cobalt and gold sulphide mineralisation. The company reported assays showing cobalt grades ranging between 0.9% and 4.4%. Gold grades of 12-73 g/t had also been recorded. The company highlighted the connection between cobalt and demand for lithium-ion batteries. The transaction involved an exchange of equity and the company meeting liabilities of the vendor amounting to C$700,000 over six months. Previously, the company�s efforts had been directed at the gold prospects in Western Australia. The company holds cash assets of $2.6 million. Verdict: Sizzle.

Pilot Energy completed a 1:50 capital consolidation and released its June quarter activities report which outlined the status of the company�s oil and gas exploration interests in Western Australia. The company disclosed that it had cash assets of $630,000 at the end of June with estimated cash outflows in the September quarter of $447,000. Despite the magnitude of the rise, the resulting share price remained within the range in which it has traded since late 2016.  Verdict: Sizzle.

American Patriot Oil and Gas has been seeking to acquire conventional producing oil and gas onshore prospects in the USA.  In April, the company had said that it was reviewing potential transactions but has subsequently not disclosed any outcomes from its investigations. The company held cash assets of $1.5 million at the end of March with expected spending of $270,000 during the June quarter for which it has not yet released a report. U.S. oil and gas exploration stocks were on a modest upward trend during the week after a prolonged period of falling prices.  Against a sector gain of 4%, expectations about a change in company prospects appear to have risen without obvious reason.  Verdict: Sizzle.

 Week ended 21 July 2017

THEME OF THE WEEK: Small Strategic Steps

Tungsten Mining announced that it had agreed to purchase the modular processing plant originally bought by Pilbara Minerals to process ore from its Tabba Tabba tantalum project. Tungsten Mining intends using the plant at its proposed Mt Mulgine tungsten project in the Murchison region of Western Australia. Since being decommissioned after a decision to abort development of Tabba Tabba, the plant has been stored near Port Hedland. Consideration for the transaction is $600,000 of which 50% will be due in cash and 50% in Tungsten Mining shares. The company has foreshadowed tungsten production within two years. The company held cash assets of $3.6 million at the end of March 2017 with expected June quarter expenditure of $650,000. Verdict: Steak.  

GWR Group announced that it was commencing to drill at its Wiluna West gold prospect in Western Australia. Assay results are expected in late August. The company has a memorandum of understanding with Blackham Resources which may allow it to process ore through Blackham�s Wiluna mill operated in association with its Matilda mine. The company, which held cash assets of $6.7 million at the end of March 2017, also holds a 13.3% stake in Tungsten Mining NL ( see above). Verdict: Sizzle.

Castillo Copper announced that it had signed an agreement to purchase all the shares in an unlisted company which holds properties prospective for copper and cobalt in New South Wales and Queensland. The vendor company shareholders will accept 55 million Castillo Copper shares and a 3% royalty giving them a 12% stake in the purchasing company. Earlier in the month, the company had completed acquisition of another company with copper-cobalt interests in New South Wales and Queensland.  The newly acquired assets will complement its pre-existing holdings including copper exploration interests in Chile. The majority of the share price gain in the past week, which took the market value of the company to $9.7 million, occurred before the company made its acquisition announcement on the last trading day of the week. The company which held cash assets of $186,000 at the end of March 2017 subsequently conducted a $1 million capital raising. Verdict: Sizzle.

Tanga Resources announced trench and pit sampling results from its Hanang gold project in Tanzania. Surface sampling produced grades of 14-36 g/t of gold from within 3 metres of the surface. Changes in Tanzania�s mining laws have created uncertainty for investors although early stage exploration activities of the type being conducted by the company have not been disrupted. The company had cash assets of $524,000 at the end of March 2017 after having raised $530,000 during the quarter.  It had foreshadowed spending $ 420,000 in the June quarter.  Verdict: Sizzle.

New Age Exploration experienced an upsurge in share trading volumes in the latter part of the week without any public disclosures to explain the increased interest. The company had previously given back all the gains which had led to a tripling in its market value and being among the top performing stocks in the sector during October-December 2016. The company is scheduled to begin drilling to increase the size of its Lochinvar coal resource near the English-Scottish border in the fourth quarter of 2017. A scoping study has been completed. The company held cash assets of $1.6 million at the end of March 2016. Verdict: Steak.

 Week ended 14 July 2017

THEME OF THE WEEK: Bottom of the Cycle Volatility

South Pacific Resources holds conventional and unconventional oil and gas exploration interests in Papua New Guinea but, at the end of June, had almost exhausted its financial capacity with cash holdings of only $43,000. In response to a query in February from ASX about its financial state, the company said that it would be able to meet its financial needs from a combination of public markets and directors of the company. Relatively high trading volumes in June and another burst of interest in the last week in the infrequently traded company suggests expectations of better things to come. The most recent rise has occurred after the company�s shares traded at a record low level.   Verdict: Sizzle.

New Talisman Gold Mines had released a pro forma resource and reserve statement in accordance with ASX listing rules and followed up with a resource upgrade from its Talisman Deeps project in the Coromandel region of New Zealand. The zone being explored has resulted in a resource doubling from a 2004 estimate to 312,800 ounces at a grade of 21.98 g/t. The company had NZ$5.8 million in cash at the end of March 2017 to further its exploration and development plans. The company intends to refurbish historical mine workings after reassessment of the data from earlier mining activities with promising indications of being able to successfully extract gold from the mineralised vein material.  Verdict: Steak.

Classic Minerals announced that the company had identified a new high-grade zone at its Forrestania gold project in Western Australia. Grades in excess of 4 g/t included 7m at 4.95 g/t from 138m including 3m at 10.0 g/t gold from 141m and 4m at 4.66 g/t from 76m. The latest drilling had targeted mineralisation outside the current resource model and beyond the existing pit design. The company also announced that it had acquired a 100% interest in two nearby exploration licences to extend its interests in the region. The company had cash assets of approximately $1 million in early April as well as a $1 million equity standby facility.  Verdict: Steak.

Kangaroo Resources has interests in a portfolio of producing, developmental and exploration coal assets in Indonesia. The company delivered a comprehensive analysis of its business at its annual general meeting in mid-May but has not said anything publicly since then other than to announce the appointment in the past week of two new directors. Both appointees, including a senior finance executive of six years standing, are well qualified. The recent share price rise maintains prices within the range of outcomes since the beginning of June. Verdict: Sizzle.  

Coziron Resources is engaged in iron ore exploration in Western Australia. The recent share price history of the company has tracked the improvement in iron ore prices through the first few months of 2017, their subsequent decline and more recent modest rebound since late June. With greatly reduced numbers of iron ore explorers, the company could be seen by investors as one of the few remaining proxies for movements in the price of the underlying commodity without serious expectations of foreseeable development success. In April, the company said that it had cash equivalent assets of $0.8 million to fund its exploration efforts which were expected to cost $0.65 million in the quarter ended 30 June 2017.   Verdict: Sizzle.

 Week ended 7 July 2017

THEME OF THE WEEK: New Strategies

Adavale Resources has no cash and, on its own admission, has not gone beyond consulting a Google earth map in its recent exploration efforts. The infrequently traded company with coal exploration interests in Indonesia inexplicably attracted midweek buying interest. The company completed a capital restructuring at the end of April which had resulted in the installation of a new group of directors whose four million options over Adavale shares granted on their appointment were pushed into the money by last week�s market activity. Earlier comments.  Verdict: Sizzle.

Target Energy announced that it had completed a capital restructuring which will enable it to retain access to its U.S. oil production assets while looking for a buyer. The company is attempting to extricate itself from a failed business model based on borrowing against the security of a high crude oil price.  See the earlier commentary.   Verdict: Sizzle.

Poseidon Nickel announced that it had entered into a non-binding joint venture agreement with ASX-listed Aphrodite Gold to combine its own unutilised processing plant with the mineral resources of the latter about 65 kilometres away in Western Australia. The move signals the company�s disenchantment with the nickel market outlook and a more favourable view about the profitability of gold production. Poseidon has foreshadowed potential output from the joint venture of up to 150,000 ozs in concentrate. Production, according to the company, could start within 12 months of financing being arranged to fund necessary plant modifications at its mothballed nickel ore processing facility. The company has disclosed an ambition to establish a regional refractory ore processing centre as it looks forward to a reorientation of the industry away from oxide ore. Aphrodite will benefit from the deal by being able to avoid construction of its own processing plant.  There is some wishful thinking in this still non-binding agreement but it would contribute positively to corporate value if consummated. Verdict: Steak.

Jervois Mining announced that the company had completed a $1 million equity raising to help fund its nickel-cobalt deposit at Young in New South Wales. The company has also announced that it has taken up shares and options in ASX-listed Elementos which could give it as much as a 10.3% holding in the developer of the Cleveland tin project in Tasmania. Jervois Mining directors have cited a new policy to take �strategic holdings in promising resource projects with proven management capability� while pursuing development of its nickel-cobalt opportunity. The company has cited the connection of both tin and cobalt to the expected growth in the number of electric motor vehicles. Verdict: Sizzle.

Lithium Australia announced that a new study has confirmed it can treat mica ores to extract lithium carbonate while achieving an operating cost of up to $10,000/tonne of lithium carbonate. The company�s estimates have been based on a scalable pilot plant.  Full-scale production will require the company to source mica ores which, in many mining operations, have hitherto been discarded as an uneconomic source of minerals.  The company has also announced that it will start drilling for lithium mineralisation at a targeted pegmatite deposit at its Ravensthorpe property in Western Australia. n infrequently traded stock which only partially recovering after weakness on small volume and no fresh publicly disclosed information. The company has four project areas being readied for drilling in Queensland and New South Wales prospective for gold. The company announced in mid-May that renewal of one of its New South Wales exploration licences had been refused by the Minister for Planning and Environment. The company is on a tight budget with estimated exploration spending in 2016/17 of $250,000 with only a trivial amount actually spent on field work and only $450,000 in the bank at the end of March 2017 after having borrowed $700,000 during the year. Plant verification is a necessary step but the progress to date remains insufficient to anticipate future production.  Verdict: Sizzle.

Six months ended 30 June 2017

 Year ended 30 June 2017

Month ended 30 June 2017

 Quarter ended 30 June 2017

The make-up of the end-June rankings has generally reflected the composition of the earlier weekly rankings. Click on a company description in the tables above to read the relevant weekly commentary.

1.  Activex has not featured in the weekly ratings despite a strong quarterly showing reflecting relatively steady gains since the beginning of April (and earlier gains dating back to February).The $35 million company commenced field work on gold exploration properties in Queensland during the March quarter.  Its share price performance would also have received a boost from a share buy back program which permitted repurchase of up to 18 million shares although it has reported that only 99,801 have been bought and cancelled.  See here for an earlier commentary on the company's activities. Verdict: Steak.

 Week ended 30 June 2017

THEME OF THE WEEK: Weak Recoveries

Australian United Mining is an infrequently traded stock which only partially recovering after weakness on small volume and no fresh publicly disclosed information. The company has four project areas being readied for drilling in Queensland and New South Wales prospective for gold. The company announced in mid-May that renewal of one of its New South Wales exploration licences had been refused by the Minister for Planning and Environment. The company is on a tight budget with estimated exploration spending in 2016/17 of $250,000 with only a trivial amount actually spent on field work and only $450,000 in the bank at the end of March 2017 after having borrowed $700,000 during the year. Verdict: Sizzle.

King River Copper announced during the week that it would commence a 2,500 metre RC drilling program at its Speewah copper-gold project in the Kimberley region of Western Australia. In the previous week, the company had described its progress toward a scoping study into the production of vanadium pentoxide and titanium dioxide at Speewah. After having spent $1.3 million on exploration in the first three quarters of 2016/17, the company reported that its $6,000 in cash assets at the end of March 2017 would be supplemented by a $1.1 million equity raising. Expenditures in June, including a loan repayment, were expected to be $426,000. Verdict: Sizzle.

Wavenet International holds exploration tenements east of Kalgoorlie in Western Australia being assessed for gold and base metals. Only trivial amounts have been spent on exploration in the past year with the company ending March with only $1,000 in the bank. The company reported having loan facilities of $750,000 from which it expected to spend just $5,000 on exploration in the June quarter.  All of the gain for the week in an infrequently traded stock occurred on the last day after not having traded over the previous fortnight.  Verdict: Sizzle.

Rey Resources has oil exploration interests in the Canning Basin and Perth Basin in Western Australia. Drilling from the Wye Knot oil prospect showed oil, according to a 21 June company report. The company had previously announced that it had acquired the 50% interest it did not already own in the Derby Block in the Canning Basin. The purchase has given the company a P90 recoverable resource of 9.37 trillion cubic feet although, at the end of March 2017, it held cash assets of less than $500,000 limiting the scope of its exploration activities without attracting a funding partner.  Verdict: Steak.

Petrel Energy reported on drilling activities at its Cerro Padilla oil and gas properties in Uruguay where the operator had apparently encountered difficulties requiring adjustments to its approach and a delay in outcomes. The share price rise in the last week occurred in the immediate aftermath of a larger decline following the company reporting its difficulties and as oil prices were weakening. In May, the company had raised $2.5 million to help fund its anticipated spending of $3.4 million in the June quarter. Sizzle Emperor Range Group simply showed a sign of life. It announced a change of registered address after having replaced a non-executive director with a Chinese lawyer. The disproportionate share price reaction on a $1600 trade left the share price of the infrequently traded company little changed from its 20 week average having previously fallen on similarly small trading volumes earlier in June.   Verdict: Sizzle.

 Week ended 23 June 2017

THEME OF THE WEEK: Resuscitation

Emperor Range Group simply showed a sign of life. It announced a change of registered address after having replaced a non-executive director with a Chinese lawyer. The disproportionate share price reaction on a $1600 trade left the share price of the infrequently traded company little changed from its 20 week average having previously fallen on similarly small trading volumes earlier in June.   Verdict: Sizzle.

Wollongong Coal was advised at the end of May that the contract mining company serving its Wongawilli coal mine had been placed into administration. As a result, the Jindal steel controlled company has had to cease mining operations but the majority shareholder wishes to restart. The usually infrequently traded company benefited from unusually large stock turnover which resulted in the company�s share price returning to a level little different to its average over the past 20 weeks.   Verdict: Sizzle.

Black Mountain Resources which has undergone more role transformations than Laurence Olivier announced that it had sourced additional funding of $1 million to underpin a Ugandan vermiculite mining and sales operation. Last week�s improvement left the share price below its average over the past 20 weeks.   Verdict: Sizzle.

Crater Gold Mining reported that an independent valuation of its Papua New Guinea gold mining assets had been completed. The company�s auditor had questioned reported asset values contained in its half year financial statements after operating outcomes had fallen short of what had been planned. The company disclosed that the mid-point in the valuation range would have resulted in an impairment charge. Against this background, the somewhat surprising rise in share price implies that expectations may have been for something worse. The upgraded $8.7 million market value of the company is consistent with the $8.0 million preferred externally assessed value.   Verdict: Sizzle.

Syndicated Metals reported that the sale of its Queensland copper assets had been completed. The $2.3 million cash payment is to be applied to the company�s Western Australian gold exploration properties. After the company completed acquisition of the Monument gold property in Western Australia in August 2016, it flagged that it would abandon its Queensland copper exploration efforts in favour of the gold strategy. Despite the positive share price response, the resulting market value remained below the 20 week share price average. Verdict: Sizzle.

 Week ended 16 June 2017

Realm Resources, the majority owner of the Foxleigh coal mine in Queensland, had not traded on the ASX since September 2016 after ASX concluded that the company had to obtain shareholder approval before undertaking a change in the nature of its business (see below). Realm Resources released an update on operations at the Foxleigh mine and dispatched a notice of meeting at which shareholders will be asked to bring the company into compliance with ASX requirements. Without the shareholder approval, Realm Resources would be forced to unwind the Foxleigh acquisition. Verdict: Steak.

Enterprise Metals has benefited from exploration activity on its Doolgunna property by Sandfire Resources. Drilling commenced in April. Sandfire has announced that it has identified a highly conductive electromagnetic anomaly in conditions similar to the Degrussa sequences. Sandfire has said it will immediately move to test the anomaly with a diamond drill hole. Sandfire can earn a 75% interest in the Enterprise tenements which are currently 100% held by Enterprise. Verdict: Steak.

Equus Mining reported initial results from drilling at its Los Domos gold-silver project in Chile. Equus is one of many companies pursuing a change in strategic direction in search of a speedier development path.  The company dropped a Chilean thermal coal mine development in favor of precious metals in October 2016 by acquiring rights to the Los Domos project in exchange for an earn-in and the issue of shares. Mandalay Resources operates in the region which hosts gold bearing quartz veins. Following the company�s initial drill hole, it reported visual indications of precious and base metal mineralisation without as yet having any assays. Drilling continues based on previous mapping and geochemical sampling. At the end of March 2017, the company held cash assets of $691,000 with an approval to raise a further $1.7 million. Verdict: Steak.

Pan Pacific Petroleum announced that it had entered into a scheme of arrangement under which Zeta Resources would purchase all the outstanding shares in Pan Pacific it did not already own. Pan Pacific had previously disposed of its minority interests in oil and gas properties in New Zealand and Vietnam leaving it with cash assets and investment holdings in other resource companies. The company was trading within 3% of the foreshadowed bid price for its shares under the scheme which the two companies expect to implement in late October.   Verdict: Steak.

Axiom Mining announced that it had commenced negotiations with the Solomon Islands government about the terms and conditions for development of the Isabel nickel project.  It had also arranged working capital finance to fund needed spending. In conjunction with the switch in its strategic focus, the company is in discussions to dispose of its portfolio of exploration tenements in Queensland. Verdict: Sizzle.

 Week ended 9 June 2017

Argo Exploration holds shares in a London-listed oil and gas exploration company operating in the USA. The value of the holding in Parthenon Resources is more than twice the market value of Argo itself. The company does not hold any other exploration or operating assets. The company held cash assets of $280,000 at the end of March 2017 with anticipated cash outflows to cover administration costs of $30,000 in the June quarter. Against that background, the company�s shares trade intermittently with the resulting illiquidity causing occasionally large share price movements.  Verdict: Sizzle.

Carbine Tungsten reported that surface sampling over New South Wales properties prospective for gold resulted in assays ranging up to 35.1 g/t. The area of work southeast of Broken Hill had been subjected to historical mining of quartz veins dating from the 1930s. The company is testing whether sulphide mineralisation exists on the margins of the quartz veins. The company has a longstanding tungsten development property in Queensland which it has shifted to the development backburner as it works on the assumption that its development rests on longer term decisions among tungsten metal users to diversify their purchases from Chinese companies which currently dominate supply. The company has also embarked on a search in Chile for potassium and lithium mineralisation as an alternative business strategy. Verdict: Sizzle.

Intra Energy Corporation reported that it had reached an operating rate of 600,000 tpy in May at its Tanzanian thermal coal property, consistent with what the company had outlined in mid-May (see below). The company also reported that it had received a letter from the government requesting it to move ahead with plans to develop power generation facilities in the country. Verdict: Steak.

Southern Gold operates a gold mine in Western Australia and holds gold exploration tenements in Western Australia and Korea. The company announced that shareholders would receive a 3 cents per share distribution in August equivalent to a yield of 9.2% and a payout ratio of 10%. The company also announced the results of surface sampling to assist identification of future drill targets on ground within its Korean exploration interests where the company is seeking to verify the extent of gold/silver mineralisation around historical mine workings. Verdict: Steak.

Exterra Resources announced that it would merge with Anova Metals through an exchange of scrip within a scheme of arrangement. The two companies are working on the assumption that the combination will have a market value in excess of the sum of the two and be treated more seriously by investors. Merging companies always say this but the results frequently differ if genuine value is not being created by the transaction.

The $60 million sum of the market values of the two companies already assumes a near term production start and possibly higher output than the 45,000 ounces a year currently anticipated during 2018.  Statistically, the market tends to place a lesser value on multiple exploration opportunities within the one corporation than might have been applied if spread across a larger number of companies.   Exploration interests are also discounted when held within an existing producer.

Exterra, the smaller of the two entities, rose in price while the larger and more advanced company lost 22% of its market value. The relative price movements are consistent with the PortfolioDirect statistical analysis of market price drivers.  Exterra shareholders have made a one-off gain without strong evidence of a basis for future share price appreciation. Verdict: Sizzle.

 Week ended 2 June 2017

Meteoric Resources was in a trading halt for a week while two announcements subsequently contributing to record trading volumes were made. ASX and TSX listed Chalice Gold Mines announced that its first diamond drill hole testing geophysical targets on a Meteoric Resources property in the Northern Territory encountered copper-gold mineralisation. Chalice is able to earn a 70% interest by spending $800,000. Meteoric announced that it was to acquire a Canadian company with rights to western Quebec properties prospective for cobalt. Historical exploration work had focussed on nickel and copper mineralisation. The company plans to raise $1.4 million in association with the acquisition. At the end of March 2017, it had cash assets of $427,000 after having raised $455,000 and having virtually ceased exploration activity. Verdict: Sizzle.

BBX Minerals reported results from a program of metallurgical testing of minerals from the company�s Tres Estados project in Brazil. The property contains gold-platinum-palladium-silver mineralisation. The company said that the test work can be adapted for commercial extraction. Previous testing had produced inconsistent results which mitigated against commercial application. Verdict: Steak.

Auking Mining which had changed its name from Chinalco Yunnan Copper Resources earlier in the week reported that the board of the company would acquire a 30% interest in a company with an option to purchase mining concessions in Mexico prospective for gold and silver. Drilling is expected to commence in August 2017. Auking can raise it holding in the company to 50%. Directors of Auking have referred to the transaction as an initial step �to transition to a mid tier mining group with a range of project interests in highly prospective regions� after quitting its exploration interests in the Mt Isa region. Verdict: Sizzle.

Clancy Exploration has a portfolio of mineral exploration properties in New South Wales on which it has spent just under $248,000 over the first nine months of 2016/17. The company had cash assets at the end of March 2017 of $1.6 million but directors appear reluctant to spend the funds on its existing tenements saying in their activities report for the three months ended March 2017 that �the search is continuing for a project to secure the Company�s future�. They said, then, several opportunities were under consideration but have since made no announcements about their intentions. Verdict: Sizzle.

Haranga Resources announced that it had agreed to sell its interest in the Selenge iron ore project in Mongolia after what it described as �a sustained period of investor disinterest in the project�. The company is to receive $4.6 million over 12 months subject to a range of approvals. The company is now searching for other opportunities. At the end of March 2017, the company had cash assets of only $56,000 and was attempting to arrange alternative short term funding. Verdict: Sizzle. Verdict: Steak.

 May 2017

Nido Petroleum, which has been engaged in oil and gas exploration efforts in south east Asia, received a notice foreshadowing the compulsory acquisition of all the outstanding shares in the company from BCP Energy International. The move followed a rights issue which led to the acquiring company holding more than 96% of the Nido shares. The share price move was consistent with the proposed acquisition price which was also the subject of an independent expert report. Verdict: Steak.

Meteoric Resources was in a trading halt for a week while two announcements subsequently contributing to record trading volumes were made. ASX and TSX listed Chalice Gold Mines announced that its first diamond drill hole testing geophysical targets on a Meteoric Resources property in the Northern Territory encountered copper-gold mineralisation. Chalice is able to earn a 70% interest by spending $800,000. Meteoric announced that it was to acquire a Canadian company with rights to western Quebec properties prospective for cobalt. Historical exploration work had focussed on nickel and copper mineralisation. The company plans to raise $1.4 million in association with the acquisition. At the end of March 2017, it had cash assets of $427,000 after having raised $455,000 and having virtually ceased exploration activity. Verdict: Sizzle.

FYI Resources which has had interests in Western Australian uranium exploration and potash exploration in Laos and Thailand announced that it would be taking a 100% interest in a high purity alumina project in Western Australia. The share based transaction will occur in several tranches based on milestones leading to a prefeasibility study to be completed by the end of March 2018. The company has said that the move will occur in parallel with its potash strategy. Despite the initial price reaction, its share price remains below where it had been during the second half of 2016 and throughout 2012-14. The company does not appear to have any of the technical skills needed to process the kaolin it proposes to mine and meet the exacting quality standards required by users of the refined material. Verdict: Sizzle.

Enterprise Metals has benefitted from commencement of a drilling program by Sandfire Resources on the Doolgunna prospect in the Bryah Basin area in Western Australia. The targeted mineralisation is thought to also host Sandfire�s Degrussa and Monty copper/gold deposits. Under the terms of a farm-in agreement from October 2016, Sandfire is able to earn up to a 75% interest in the Enterprise project area. Enterprise had previously identified uneconomic mineralisaton on the property consistent with VMS style deposits which are thought to host mineralisation in the region. With only $294,000 in the bank at the end of December 2016, Enterprise has had limited financial resources to do justice directly to the Doolgunna prospects with directors in favour of putting more emphasis on the assets of sister company Enterprise Uranium (now Alto Metals). Verdict: Steak.

African Energy Resources holds a portfolio of three thermal coal properties in Botswana linked to development projects supplying power to Zambia and South Africa. The company was queried at the end of the month by the ASX about the unusual share market activity associated with its stock. It said that it had no information that had not already been released. However, it also pointed out that First Quantum Minerals, a joint venture partner on one of the power ventures, had recently announced progress in receiving government approvals for its power project. The share price rise in the last week of the month does follow on from less dramatic but steady rises since mid January during which time several important steps furthered the development prospects of the company which also disposed of certain Zambian uranium assets. Verdict: Steak.

 Week ended 26 May 2017

Intra Energy announced that its Tanzanian thermal coal production had risen to its current operating capacity of 600,000 tonnes a year.  It also confirmed its intention to have begun operating at its expanded capacity of one million tonnes a year by August 2017.  It had produced 273,414 tonnes in 2016. While the company is establishing itself as a coal producer in a region looking to expand its energy production, it has also flagged its intention to move into lithium and graphite production although it does not have currently prospective deposits with which to fulfil this ambition.  The most recent rise in the share price leaves the company with a market value less than half of what it had been in late February before doubts had arisen about the security of the company�s position following threats from government officials that it might lose a part of its resource.  Verdict: Steak.

Protean Energy has been involved in a mixture of energy related activities including development of wave power technology and, more recently, marketing of vanadium battery storage systems. It has also been seeking to develop a presence in solar projects. The company had been in the midst of a rights issue to raise $3 million after having run down its available cash assets to $473,000 at the end of March.  After ASX announced the suspension from quotation of the share offer, the share price rose on an extremely small single trade. Verdict: Sizzle.

Manhattan Corporation has been seeking to develop a uranium deposit in Western Australia where the newly elected government has flagged its unwillingness to support development of new uranium mines. The company which had cash assets of just $35,000 at the end of March is in the midst of a share purchase plan for existing shareholders with a potential to raise up to a maximum of $1.3 million.  The share price rise occurred on the back of a single trade which pushed the share price above the issue price of the shares under the offer. Verdict: Sizzle.

Laconia Resources which had just $21,000 in cash assets at the end of March announced that it had completed a rights issue to raise $393,000 through a combination of eligible shareholders participating and commitments for the placement of shortfall shares.  The company has exploration interests in Botswana which were acquired in January 2017 partly conditional on being able to also raise $2.4 million from sophisticated investors.  The company has base metal exploration interests in the Pilbara on which activity has ceased. Verdict: Sizzle.

Enegex has attracted another surge in interest (see comments for 5 May) apparently based on its strategic step toward battery storage minerals. Enegex holds a 14.875% interest in Western Australia offshore petroleum retention lease WA-54R covering the historic Cornea discovery, first drill tested by Cultus Petroleum and Shell over 15 years ago.  The company with cash assets of $476,000 at the end of March 2017 had only spent $11,000 on exploration in the first nine months of 2016/17.  Reflecting the company�s difficult strategic position, it disclosed in its March quarter activities report that it was �seeking to become involved in innovations that are transforming the storage of energy�. The company did not disclose any specific initiatives to move in this direction but mentioned lithium, cobalt and graphite. Verdict: Sizzle.

 Week ended 19 May 2017

Enterprise Metals has benefitted from commencement of a drilling program by Sandfire Resources on the Doolgunna prospect in the Bryah Basin area in Western Australia.  The targeted mineralisation is thought to also host Sandfire�s Degrussa and Monty copper/gold deposits.  Under the terms of a farm-in agreement from October 2016, Sandfire is able to earn up to a 75% interest in the Enterprise project area.  Enterprise had previously identified uneconomic mineralisaton on the property consistent with VMS style deposits which are thought to host mineralisation in the region.  With only $294,000 in the bank at the end of December 2016, Enterprise has had limited financial resources to do justice directly to the Doolgunna prospects with directors in favour of putting more emphasis on the assets of sister company Enterprise Uranium (now Alto Metals).   Verdict: Steak.

Oro Verde announced that the first phase of drilling at the Topacio gold prospect in Nicaragua had been completed where a 340,000 oz resource has previously been inferred.  The company did not release any results but foreshadowed moving ahead with the next stage of a drilling program.  Under the terms of a farm-in agreement, Newcrest mining can earn a 75% interest by funding up to US$7.9 million with Oro Verde managing the exploration during the farm-in period.  The share price action appears to be anticipating the release of drilling results due during the May/June period. Verdict: Sizzle.

Comet Resources had reported results of a reconnaissance aircore drilling program at its Springvale graphite project in Western Australia where it has identified mineralisation over several kilometres in February.  The company had foreshadowed further drilling and metallurgical test results in the first half of 2017.  At the end of April, the company reported that metallurgical test work had shown grapheme could be produced from the Springvale ore by electrical exfoliation. Drilling is ongoing.  The lastest share price action has pushed prices back to where they had been at the end of March 2017.  Comet is potentially among the category of companies whose successive announcements designed to keep interest alive draws diminishing investor responses. Verdict: Sizzle.

Challenger Energy had been seeking to develop shale gas deposits in South Africa which have been subject to delays as the South African government reconsiders its development policies. The market has reacted positively to reports emanating from South Africa that the government was on the verge of approving exploitation of gas resources in the area in which Challenger Energy has been engaged. The possibility of government action allowing development enhances the value of the company�s assets while still leaving doubts about the timing and conditions which might attach to any approval.  The company reported on legislative progress in its quarterly activities report at the end of April. The latest share price action has left prices below where they had been at the end of March 2017 following earlier media speculation about the government�s intentions.  Challenger is potentially another among the category of companies whose successive announcements to keep interest alive draw diminishing investor responses. Verdict: Sizzle.

Key Petroleum has a portfolio of oil and gas exploration interests in Western Australia and Queensland near existing discoveries in the Perth, Canning and Cooper Basins.  The Cooper Basin tenements were purchased under the terms of an agreement with Beach Energy in February 2017.  At the end of the week, the company disclosed that it would entertain any offers for its Canning Basin interests.  While the company has made no specific announcements, the share price action has coincided with an apparent switch in emphasis away from Western Australia and toward the east coast where growing shortages of gas as a result of restrictions on exploration are pushing energy prices higher and making development, where it can occur, more attractive. Verdict: Sizzle.

 Week ended 12 May 2017

Nido Petroleum, which has been engaged in oil and gas exploration efforts in south east Asia, received a notice foreshadowing the compulsory acquisition of all the outstanding shares in the company from BCP Energy International.  The move followed a rights issue which led to the acquiring company holding more than 96% of the Nido shares.  The share price move was consistent with the proposed acquisition price which was also the subject of an independent expert report.  Verdict: Steak.

FYI Resources which has had interests in Western Australian uranium exploration and potash exploration in Laos and Thailand announced that it would be taking a 100% interest in a high purity alumina project in Western Australia.  The share based transaction will occur in several tranches based on milestones leading to a prefeasibility study to be completed by the end of March 2018.  The company has said that the move will occur in parallel with its potash strategy.  Despite the initial price reaction, its share price remains below where it had been during the second half of 2016 and throughout 2012-14.   The company does not appear to have any of the technical skills needed to process the kaolin it proposes to mine and meet the exacting quality standards required by users of the refined material. Verdict: Sizzle.

Bougainville Copper is the listed holding company for the long closed Panguna copper mine.  The company confirmed that it was not in possession of any information that might have been the cause of the unusual price action after it had been queried by the ASX as to its reasons although it did refer to media reports about the island government lifting the mining ban on certain areas in which other companies were interested. The island government has been moving tentatively toward a resumption of mining at Panguna which had been opposed by local landowners who had initiated a civil war over its operation and whose approval will be necessary for any resumption of operations.  The company had previously been stripped of its right to mine. A resolution of demands for island independence from Papua New Guinea is also likely to interfere with any near term consideration of a mining resumption. Verdict: Sizzle.

Longreach Oil holds a 50% interest in a Surat Basin petroleum lease and a 20% interest in a company holding the remainder, which it is seeking to sell. The company also holds a 5% interest in US emerging telecommunications company Starlogik. The $7.3 million market value company is seeking to raise its position in the latter to 100%.  The company reported that it had cash assets amounting to only $3,000 at the end of March 2017 after having ceased exploration expenditure. Verdict: Sizzle.

Minbos Resources retains interests in phosphate development opportunities in Angola for which it has completed a feasibility study to which it has referred as �bankable�.  Previously announced plans to merge with its joint venture partner have been delayed.  There has been no announced corporate or project events which might have led to the re-pricing of the company in the past week which, in any event, leaves the company share price below where it had been between November and mid March. Verdict: Sizzle.

 Week ended 5 May 2017

Enegex Limited holds a 14.875% interest in Western Australia offshore petroleum retention lease WA-54R covering the historic Cornea discovery, first drill tested by Cultus Petroleum and Shell over 15 years ago.  The company reported that it held cash assets of $476,000 at the end of March 2017.  It had only spent $11,000 on exploration in the firs nine months of 2016/17.  Reflecting the company�s difficult strategic position, it disclosed in its March quarter activities report that it was �seeking to become involved in innovations that are transforming the storage of energy�. The company did not disclose any specifc initiatives to move in this direction but mentioned lithium, cobalt and graphite. VeVerdict: Sizzle.

Adavale Resources, with Indonesian coal assets, reported that shareholders had approved a capital restructuring involving Jun Moon Limited which had agreed to take over a debt owing to the company�s chairman.  The new investor has been described by the company as �strategic� although, other than being a source of capital, no other benefits to existing shareholders have been disclosed.  As the company�s shares trade infrequently, its market value is subject to occasional large moves which is what has happened on this occasion. Verdict: Sizzle.

Mount Ridley Mines, an exploration company with a focus on nickel sulphide targets in southern Western Australia, reported resumption of exploration activity with the drilling of three electromagnetic targets. The drilling is in the form of diamond tails to RC drilled pre-collars. The company also reported identifying a new area of conductivity coincident with previous areas of interest which would be the subject of a later drilling program.  The company had $1.2 million in cash assets at the end of March 2017 after having spent $1.9 million over the first none months of 2016/17.  The company also disclosed that it had lodged an application for a $1 million government research and development rebate. Verdict: Steak.

Longreach Oil holds a 50% interest in a Surat Basin petroleum lease and a 20% interest in a company holding the remainder which it is seeking to sell. The company also holds a 5% interest in US emerging telecommunications company Starlogik. The $7.3 million market value company is seeking to raise its position to 100%.  The company reported that it had cash assets amounting to only $3,000 at the end of March 2017 after having ceased exploration expenditure. Verdict: Sizzle.

Silver City Minerals, a Broken Hill region explorer, reported �high grade� iron oxide gold and copper mineralisation at its Copper Blow prospect located approximately 20km south of Broken Hill.  The site is a historic small mine which has been the subject of successive exploration campaigns over many years. The Silver City work is based on a reappraisal of historic drilling and geophysical studies in the context of modern ore deposit formation models.  The company was yet to drill its own holes or set a timetable for follow-up work.  It suggested that there was potential for cobalt, molybdenum and rare earth elements in the muineralisation. Verdict: Steak.

 April 2017

Kangaroo Resources, seeking to develop coal deposits in Indonesia, benefited from consistently stronger investment interest through April. Although the company was queried during the month by ASX about the reasons for the resulting price action, it did not identify any reasons.  At the end of the month, when the company released its March quarter activities statement, directors disclosed that they had received legal advice about how to structure acquisition of certain assets, to conform to Indonesian foreign ownership rules, to effect transactions foreshadowed in 2010.  The delay is indicative of the sometimes complex legal issues confronting companies attempting resource development in Indonesia.  Even after the company completes the restructuring, which it is yet to do, investors may entertain doubts about its acceptability to the government and the likelihood of other parties acquiescing to the new arrangements. The company also said that it would release an updated resource and reserve statement during the second quarter of 2017.    Verdict: Sizzle.

Spitfire Materials announced that it has acquired Admiral Gold, an unlisted company with gold exploration interests in Western Australia and Queensland. The company had been engaged in exploring for manganese in the Pilbara and defining a limestone resource in Zambia before acquiring a gold exploration property in Western Australia in late 2016.  The company has said that, as a result of the merger with Admiral Gold, the latter will appoint its two principals to the board of the combined company in place of two existing directors of the public company.  Both new directors have been involved in Pilbara Resources as a result of having previously vended their Papua New Guinea mining exploration interests into the company before abandoning them in favour of a failed deal to mine tantalum. The company appears to have been earmarked as a new vehicle for their activities.  Rock chip sampling has been undertaken at the Northern Territory prospect where a geophysical anomaly has also been identified. Verdict: Sizzle.

Kin Mining announced that it had discovered a high grade zone of gold mineralisation at its Leonora gold project in Western Australia.  Intercepts include grades as high as 37.6 g/t over 16 metres from 47 metres including 5 metres at 117 g/t.  The high grade bedrock intersection is said by the company to be continuous for at least 500 metres. Drilling has extended to a vertical depth of only 70 metres.  The area had been the source of gold from shallow supergene resources raising the possibility of a much larger mineralised system than had previously been suspected.  Verdict: Steak.

Planet Gas released a series of reports through April describing progress at its Silver Star-1 gas exploration well in which the company has a 12.5% free carried interest.  Joint venture partners Senex Energy and Origin Energy hold the remaining share.  The Cooper Basin well which was expected to cost A$15M was to be drilled to a depth of 3,600 metres. The well has been targeting prospective Permian age sandstones on a permit with 3D seismic coverage northeast of the Moomba gas field in South Australia.   At the end of April, the company reported that drilling had reached its target depth.  The partners now plan to drill a horizontal section of 1,500 metres with multi-stage fracture stimulation. Verdict: Steak.

Talga Resources produced a 140% return since mid-March during which time the company entered into a series of graphene marketing agreements and initiated testing of graphene applications as it has positioned itself as a technology company.  Strategically, the company is downplaying the importance of its mining activities as it develops a range of applications using graphene for licensing. The recent announcements represent necessary steps toward achieving its business goal.  Whether the steps are sufficient is still subject to being able to demonstrate an appropriate revenue stream. The company does have cash assets of $6.2 million but, without revenue, a market value in excess of $150 million has a considerable amount of success already embedded. Verdict: Sizzle.

 Week ended 28 April 2017

Lincoln Minerals disclosed at a conference that its Kookaburra Gully graphite prospect on the Eyre Peninsula in South Australia was at an advanced stage and set to be Australia�s only graphite mine.  The company is targeting �development start-up� in late 2017 or early 2018 after making its submissions for final approval in mid 2017. The company described its feasibility study and environmental assessments as �essentially complete�.  Ore reserves have not been defined and the company is still considering production rate, capital and operating costs and its target market segments. At the end of March 2017, the company held cash reserves of $2.99M after spending $1.9 million on exploration and evaluation over the nine months ended March.  Based on its own description of its current status and current financial resources, the company appears to be well short of commencing construction within seven months and has provided insufficient information from which to conclude that it can meet its declared target of producing up to 40,000 tonnes of high purity graphite annually.   Verdict: Sizzle.

Spitfire Materials announced that it has acquired Admiral Gold, an unlisted company with gold exploration interests in Western Australia and Queensland.  Previously, the company had been engaged in exploring for manganese in the Pilbara and defining a limestone resource in Zambia before acquiring a gold exploration property in Western Australia in late 2016.  The company has said that, as a result of the merger with Admiral Gold, it will appoint its two principals to the board of the combined company in place of two existing directors of the public company.  Both new directors have been involved in Pilbara Resources as a result of having previously vended their Papua new Guinea mining interests into the company before abandoning them in favour of a failed deal to mine tantalum. The company appears to have been taken over to be used as a new vehicle for their activities.  Rock chip sampling has been undertaken at the Northern Territory prospect where a geophysical anomaly has also been identified. Verdict: Sizzle.

Strandline Resources, which has held exploration interests in Australia and Africa covering mineral sands, nickel, gold and copper, reported signing an exploration joint venture agreement with Rio Tinto Exploration covering a part of its tenement holdings located on the southern Tanzanian coast. Under the terms of the agreement, Rio Tinto can spend up to US$9M and make further cash payments of US$1.75M to earn a 75% interest in the selected tenements. With access to cash of less than $2 million with which to undertake exploration efforts over an extended portfolio, Strandline Resources must continue to raise capital either through the issue of more shares or by bringing in project partners. Verdict: Steak.

Artemis Resources reported being able to identify multiple high grade cobalt, copper and gold zones from the assay results from a drilling program at its Carlow Castle project in Western Australia.  The company reported grades of 3-7% cobalt occurring between 53 and 55 metres.  While the results appear to have contributed to a rise in the share price of the company, the gain follows a near halving of the market value of the company during March and April during which time the company was arranging funding to complete the purchase of the idled Radio Hill mine and concentrator formerly operated by Fox Resources to deplete a modest sulphide resource.  Artemis has referred to the potential of the Radio Hill asset to facilitate development of a cobalt-bearing prospect as it seeks to position itself to take advantage of the current investor interest in the battery related metal. Verdict: Sizzle.

Coppermoly reported �extremely encouraging� exploration results from its Mt Nakru copper-gold prospect on the island of New Britain in Papua New Guinea. The results from five diamond holes were interpreted as showing the extension of a copper mineralised system defined at Nakru some 1.5km away. The results, subject to further drilling and interpretation, raise the possibility of a meaningful mineralised system with development potential. Verdict: Steak.

 Week ended 21 April 2017

Queensland Mining Corporation shares rose in price immediately after the company released its quarterly activities statement for period ended March. The company said it had initiated a scoping study based on a 2005 feasibility study on its White Range copper exploration property in central Queensland. The company expects to complete the new study during May 2017.  The company is relatively well positioned financially with $3.78 million in cash at the end of March and still active in the field having spent $1.7 million on exploration activities during the first nine months of 2016/17.  There are six deposits comprising the project with the study investigating how to optimise their development.  The earlier study covering four deposits had indicated annual copper cathode production of 15,000 tonnes over a mine life of a little over six years.  Verdict: Steak.

Kin Mining announced that it had discovered a high grade zone of gold mineralisation at its Leonora gold project in Western Australia.  Intercepts include grades as high as 37.6 g/t over 16 metres from 47 metres including 5 metres at 117 g/t.  The high grade bedrock intersection is said by the company to be continuous for at least 500 metres. Drilling has extended to a vertical depth of only 70 metres.  The area had been the source of gold from shallow supergene resources raising the possibility of a much larger mineralised system than had previously been suspected. Verdict: Steak.

Pan Pacific Petroleum announced its intention to sell its 5% holding in a Vietnam offshore oil and gas property to Repsol for US$5 million leaving the company with cash assets of approximately US$16 million and in search of new assets within the range of its funding capability.  The latest sale follows earlier asset sales by the company. While the share price response to the transaction was positive, the market value has remained within the bounds of the trading range over the past 12 months.  The company has hinted that possible future investments may be outside the oil and gas space leaving investors to speculate about the future direction of the company. Verdict: Sizzle.

Stavely Minerals, a Victorian based explorer with more recently acquired exploration interests in northern Queensland, reported a �thick zone of strong near-surface gold mineralisation� immediately south of its Stavely property. The interpretation was based on results from a single diamond drill hole which included an intersection of 30 metres at 1.4 g/t Au from a down-hole depth of 47 metres. The result and interpretation is consistent with adjacent drilling results. The overall market response has been quite modest.  The discovery occurred shortly after the company�s share price had neared historically low levels.  Since the discovery, the company�s share price has remained within the prior trading range. Verdict: Steak.

Talga Resources has produced a 100% return since early March during which time the company has entered into a series of graphene marketing agreements and initiated testing of graphene applications as it has positioned itself as a technology company.  Strategically, the company is downplaying the importance of its mining activities as it develops a range of applications using graphene for licensing. The recent announcements represent necessary steps toward achieving its business goal.  Whether the steps are sufficient is still subject to being able to demonstrate an appropriate revenue stream. The company does have cash assets of $6.2 million but, without revenue, a market value in excess of $150 million has a considerable amount of success already embedded. Verdict: Sizzle.

 Week ended 7 April 2017

Gullewa has a range of gold-related exploration interests in Western Australia but has not disclosed any information recently which flags either exploration or development progress. The recent price action leaves the relatively well funded company with $2.6 million in cash at the end of December 2016 still trading largely in the price range it has occupied for most of the past year. The length of the company�s December quarter activities statement (just one and a half pages) is indicative of an absence of underlying dynamism. Verdict: Sizzle.

Triple Energy is a China focused oil and gas company with coal bed methane interests in Shaanxi province. At the end of the week, after the rise in share price, the company announced that it would raise $480,000 from Chinese sophisticated investors. No development progress has been reported. Verdict: Sizzle.

Oil Basins is a $1.4 million market value company holding $333,000 in cash with a portfolio of exploration interests in the Canning, Gippsland and Carnarvon Basins. The company made a presentation in Hong Kong summarising its current state of play and the Australian market prospects for gas without committing to any development or exploration plans.  The company presentation flagged a future corporate recapitalisation and name change. Verdict: Sizzle.

Triangle Energy has oil and gas production interests in Western Australia from which it generated revenue of $6.9 million but made a cash loss of $1.3 million in the six months ended December 2016. The company announced that it would raise its stake in the Cliff Head oil field located in the offshore Perth Basin and outsource operations to an external party from which it would also draw financial support. The moves are intended to improve financial outcomes and are potentially a step in the right direction. Verdict: Steak.

Anglo Australian Resources has more than doubled in value since mid-March after having received commitments for a $615,000 share placement. The company is nominally engaged in gold and base metal exploration in a portfolio of Western Australian tenements. In practice, the company�s exploration progress has been heavily constrained by a financial position which left it with just $5,000 in cash at the end of December 2016 after exploration expenditures of only $191,000 over the six months ended December, including just $66,000 in the final quarter of 2016.  Verdict: Sizzle.

 March Quarter 2017

Beacon Minerals executed an agreement to purchase the Jaurdi gold prospect in Western Australia subject to completion of due diligence. The company subsequently reported the completion of 78 air core and RC drill holes on the eastern limb of a flat lying gold mineralised paleochannel. The results defined an extensive thick accumulation under 8 metres of cover.  Verdict: Steak.  PortfolioDirect Report: None.

Southern Hemisphere Mining, which had cash holdings of only $459,000 at the end of December 2016, raised $130,248 through the issue of new shares. The company has had no clear business strategy since having completed a pre-feasibility study on a Chilean manganese deposit in 2010 and having failed to progress the project significantly further.  The company reported having spent only $5,000 on exploration in the December quarter.  Two of the investors participating in the December share placement were appointed to the board of the company.  One of the appointees disclosed that �the focus of the Company going forward will be to identify new and exciting exploration or production opportunities in Australia and elsewhere�.  The two new directors appear to have taken control of the $5 million company with a minimal outlay.  The market response appears to have been predominantly speculative and an endorsement of the change despite it leaving the bulk of shareholders without any clear view of the directors� intentions.   Verdict: Sizzle.  PortfolioDirect Report: None.

Mustang Resources, moving toward ruby mining in Mozambique, completed a plant relocation and dispatched a maiden parcel of 6,221 ct of recovered stones to the United States. A parcel of five "special" stones included two 24 ct rubies. The results are consistent with the stated development plan of the company. Verdict: Steak.  PortfolioDirect Report: 30 September 2016.

Summit Resources had been among the best performing stocks in the sector in the first weeks of 2017 with a tenfold rise in its share price as it rode the wave of interest in uranium-related investments.  The company holds resources in Queensland without development approvals. Paladin Energy has an 82% interest in the company.   By late February, the company had give up the majority of the earlier share price rise.  When queried by ASX in February about the source of the unusually elevated interest in the stock, the company said it had no information to explain the rise. Verdict: Sizzle.  PortfolioDirect Report: None.

Queensland Bauxite had been engaged in developing a bauxite deposit for export from northern Queensland although relevant government approvals appear to have delayed what the company had portrayed as a straightforward process with minimal capital investment requirements.  On 3 March, the company announced that it had acquired a majority stake in a medical cannabis research and hemp growing company.  The move appears wholly opportunistic.  It signals the abandonment of its long held desire to mine bauxite and throws into doubt, in any case, whether the one company can credibly manage such diverse business interests.  None of the directors of the company have technical mining or geology technical backgrounds.  Their broad-based transactional backgrounds are consistent with the changed strategic direction.   Verdict: Sizzle.  PortfolioDirect Report: None.

Week ended 31 March 2017

Challenger Energy had been seeking to develop shale gas deposits in South Africa which have been subject to delays as the South African government reconsiders its development policies. The market has reacted positively to reports emanating from South Africa that the government was on the verge of approving exploitation of gas resources in the area in which Challenger Energy has been engaged. The possibility of government action allowing development enhances the value of the company�s assets while still leaving doubts about the timing and conditions which might attach to any approval.    Verdict: Sizzle.  PortfolioDirect Report: None.

Discovery Africa, seeking to develop graphite properties in Africa, has requested a trading halt to give directors time to prepare a response to the ASX about the reason for the recent price performance.  The price action accompanying unusually large share trading volumes suggests that certain investors have access to information not generally available. Verdict: Sizzle.  PortfolioDirect Report: None.

Southern Hemisphere Mining trading volumes remained highly elevated after the strong share price performance in the week ended 24 March (see below).  The company issued a statement to the ASX highlighting the improved state of the copper market and the application of copper to energy storage technologies while highlighting its Chilean property connections.  The company made a vague statement about �realising short term value� from the existing assets being a priority �whilst working on identifying new and exciting exploration or production opportunities� without outlining any steps toward development. Directors are giving every indication of still being in search of a strategy. Verdict: Sizzle.  PortfolioDirect Report: None.

Comet Resources received a query from ASX about the reasons for the recent share price performance of the company but directors said they did not have any additional information that might have impacted the price.  In February, the company had reported results of a reconnaissance aircore drilling program at its Springvale graphite project in Western Australia where it has identified mineralisation over several kilometres.  The company had foreshadowed further drilling and metallurgical test results in the first half of 2017.  Unusually high volumes accompanying the higher prices suggest rising expectations of an announcement. Verdict: Sizzle.  PortfolioDirect Report: None.

Fe Limited reported that a program of soil sampling at its Mt Elvire tenements in the Yilgarn �has returned disappointing results� having �not highlighted any significant mineralisation within the tenements�.  While admirably honest but ostensibly bad news, the company coupled its announced failure with a statement that it would now divert attention to �several cobalt opportunities in the DRC and Zambia that have been offered�.  In seeking to keep hope alive, the company has sought to take advantage of the near term faddish market behaviour involving cobalt. Verdict: Sizzle.  PortfolioDirect Report: None.

Week ended 24 March 2017

Southern Hemisphere Mining, which had cash holdings of only $459,000 at the end of December 2016, raised $130,248 through the issue of new shares. The company has had no clear business strategy since having completed a pre-feasibility study on a Chilean manganese deposit in 2010  and having failed to progress the project significantly further.  The company reported having spent only $5,000 on exploration in the December quarter.  Two of the investors participating in the December share placement were appointed to the board of the company.  One of the appointees disclosed that �the focus of the Company going forward will be to identify new and exciting exploration or production opportunities in Australia and elsewhere�.  The two new directors appear to have taken control of the $5 million company with a minimal outlay.  The market response appears to have been predominantly speculative and an endorsement of the change despite it leaving the bulk of shareholders without any clear view of the directors� intentions.   Verdict: Sizzle.  PortfolioDirect Report: None.

Cannindah Resources has been unable to implement any material exploration plans with cash holdings of only $45,000 at the end of December 2016. During March, the company has struck an access agreement allowing it to test the viability of small scale mining within an area in Queensland in which quartz veins have historically been mined for gold.  Within a few days, the company reported a series of gold-bearing rock chip samples. The company has not had to outlay any funds to the vendor of the exploration rights who will be entitled to a 7% royalty from future production.  The company has not provided the necessary technical context to enable an assessment of the merits of the find or the geological potential of the prospect. Verdict: Sizzle.  PortfolioDirect Report: None.

RMG Limited which has had copper exploration interests in Chile and an option over a Queensland zinc property restructured its business in September 2016 with a new Beijing based investor taking a majority position.  The stated aim of the new investor was to use the company as a platform to acquire and fund mineral projects.  An investment banker was appointed chief executive. Early in March, the company announced that it was going to conduct due diligence on an operating copper mine in China with a view to taking a stake.  It completed a placement in the last week to raise A$1.178M to help restructure its outstanding debt and provide additional working capital. Verdict: Sizzle.  PortfolioDirect Report: None.

Orion Metals reported that it had conducted no mineral exploration over the three months ended February 2017. The company holds tenements prospective for gold and rare earth elements in Queensland and Western Australia. The company said it continues to evaluate its existing tenements before deciding on future strategy.  The company had a cash balance of $435,000 at the end of February.  Three shareholders own over 90% of the company leaving it extremely illiquid and prone to exaggerated responses to small-scale market speculators. Verdict: Sizzle.  PortfolioDirect Report: None.

Thomson Resources had disclosed a farm-in agreement in November covering its Bygoo tin project in New South Wales.  Under the terms of the agreement, the North American investor could earn a 51% interest through a series of staged payments amounting to A$3 million and a further 21% for A$22 million until 1 October 2018. The company had $105,000 at the end of December 2016 and would be heavily dependent on the joint venture payments.  On 17 March, the company announced that its joint venture partner was seeking to assign its rights, subject to certain conditions including a need to raise additional capital, to a Canadian listed company.  The agreement entered into by Thomson Resources is another example of financially stretched companies in the sector struggling to pursue opportunities despite limited access to funding. In this case, the plan involved two cash-poor entities combining in the hope of creating a well funded company.  The market reaction, on a small number of shares traded, suggests a belief by some investors that Thomson Resources is more secure with the backing of a listed company than with its originally chosen partner. Verdict: Sizzle.  PortfolioDirect Report: None.

Week ended 17 March 2017

Planet Gas reported that it had commenced drilling the Silver Star-1 gas exploration well in which the company has a 12.5% free carried interest.  Joint venture partners Senex Energy and Origin Energy hold the remaining share.  The Cooper Basin well which is expected to cost A$15M is to be drilled to a depth of 3,600 metres. The well is targeting prospective Permian age sandstones on a permit with 3D seismic coverage northeast of the Moomba gas field in South Australia.   The partners plan to subsequently drill a horizontal section of 1,500 metres with multi-stage fracture stimulation to follow.  Verdict: Steak.  PortfolioDirect Report: None.

Pepinnini Minerals has switched its corporate emphasis from Australian base metal exploration to South American lithium.  The market performance in the past week was associated with a record number of shares being traded. Two day turnover accounted for more than 20% of the outstanding shares in the company. In response to a query from ASX about the unusual trading activity, the company said it had no information that had not been disclosed. Earlier in the month, the company had raised $240,000 through the issue of new shares.  The placement followed the company�s announcement that a vertical electrical sounding survey had indicated the potential for lithium bearing brines at its tenements in northwest Argentina. Further work is required to establish whether aquifers contain   mineralised brine and have the right mix of salts.  Later, studies will be needed to determine whether any brine can be extracted on a commercial basis. The experience of others, including Orocobre whose production start was delayed several years and is yet to reach its targeted production, suggests considerable technical risks with a shortage of experienced personnel an important constraint on operational success. Verdict: Sizzle.  PortfolioDirect Report: None.

Genesis Resources reported that it had completed a A$2.96M capital raising after receiving funds from an underwriter to a rights issue after less than $50,000 had been taken up by eligible shareholders.  The funds were earmarked for working capital and to evaluate a low grade gold prospect in Macedonia where the company has committed to its joint venture partner to spend up to US$7.5 million. Verdict: Sizzle.  PortfolioDirect Report: None.

Augur Resources reported that it had received commitments from investors to provide funds of up to A$1.2M.  The funds would enable exploration activities at a lateritic nickel prospect in New South Wales where the company is now highlighting a 0.05% cobalt content and test work to separate cobalt from nickel.  The company has also disclosed that it will exercise an option to participate in a joint venture exploration tenement in Chile where there is historical evidence of gold-silver veining. While the company does have a background in gold exploration, its interest in cobalt appears opportunistic. Verdict: Sizzle.  PortfolioDirect Report: None.

Anglo Australian Resources reported that it had raised A$615,000 through an issue of shares to fund early stage gold exploration near Kalgoorlie in Western Australia. The company had completed a structural interpretation and ground magnetic survey in 2016 which highlighted several targets for subsequent drilling.  The company has also flagged a desire to spend a part of its funding on other exploration interests in Western Australia which would likely leave it financially stretched or unable to complete the necessary exploration work in a timely manner. Verdict: Steak.  PortfolioDirect Report: None.

Week ended 10 March 2017

Surefire Resources announced, in mid-February, that it had acquired a 90% interest in a gold and base metal prospect at Kooline in the Ashburton region of Western Australia.  The company�s share price had traded somewhat higher since the announcement but the reason for the precise timing of the rise in the last week was unclear. The Kooline prospect contains historical workings from small scale mineralised veins probably not conducive to a commercially viable resource.The company, as Black Ridge Mining, had a single early stage gold exploration tenement in Western Australia without any notable qualifications to bring the Kooline prospect to life.  Verdict: Sizzle.  PortfolioDirect Report: None.

Kogi Iron had experienced a dramatic rise in price over the past two weeks to post its highest share price since April 2016.  A week earlier, the company had disclosed that authorities had granted two mining licences for the company�s Agbaja low grade laterite iron ore and steel project in Nigeria.  The company�s aspiration to be an African steel maker comes with no technical backgrounds and consequently being reliant on external parties who have advised that the company will be unable to meet it previous development timeline.  In any case, the company�s disclosures are somewhat confused insofar as it said on 30 January 2017 that a definitive feasibility study �originally due for completion in June this year� would be delayed until �late into the first half of 2017�.  Verdict: Sizzle.  PortfolioDirect Report: None.

Thor Mining PLC reported a 51 metre long intersection of scheelite mineralisation with copper at its Pilot Mountain tungsten prospect in Nevada in the USA. The second hole in a round of drilling came after the first hole terminated without intersecting mineralisation.  A third hole has been commenced after the better than expected result designed to test for extensions of the deposit.  Assays are yet to have been received. Verdict: Steak.  PortfolioDirect Report: None.

Queensland Bauxite had been engaged in developing a bauxite deposit for export from northern Queensland although relevant government approvals appear to have delayed what the company had portrayed as a straightforward process with minimal capital investment requirements.  On 3 March, the company announced that it had acquired a majority stake in a medical cannabis research and hemp growing company.  The move appears wholly opportunistic.  It signals the abandonment of its long held desire to mine bauxite and throws into doubt, in any case, whether the one company can credibly manage such diverse business interests.  None of the directors of the company have technical mining or geology technical backgrounds.  Their broad-based transactional backgrounds are consistent with the changed strategic direction.   Verdict: Sizzle.  PortfolioDirect Report: None.

Iron Road has been seeking to move ahead with a multi-billion dollar iron concentrate development in South Australia by attracting Chinese development partners.  A need for a secure source of power will have made any commitment difficult in the light of the state�s chronic power shortages which have led to blackouts and threats by other miners to halt development or expansion plans.  Market liquidity has improved significantly since the beginning of February seemingly with improved investor sentiment about the prospects for the iron ore market although the company will almost certainly fail to make an investment case without a solution to South Australia�s electricity shortages. Verdict: Sizzle.  PortfolioDirect Report: None.

Week ended 3 March 2017

Magnum Gas and Power takeover target Bombora Natural Energy announced the acquisition of a 10% interest in an onshore stranded gas prospect in California which had been drilled in 1982 as an oil play. The partners are evaluating how to re-enter the historic well and are awaiting results from surrounding drill programs before making a commitment to proceed. Australian companies have been repeatedly attracted by the size of Californian oil and gas markets but, as late entrants, have often had to rely on assets discarded by others and which have needed specialised skills or access to new technologies.  Magnum and its partners appear hopeful about the prospects at the Alvares gas field but have not identified any unique technical or operating insights of their own from which they might benefit. The share price response reflects a highly illiquid market for Magnum Gas and Power shares.     Verdict: Sizzle.  PortfolioDirect Report: None.

Western Mining Network announced acquisition of an option to buy into historically active Slovakian cobalt mining  assets.  The targeted prospect containing minor nickel sulphide in veins with attendant cobalt dates from 1780 with sporadic small scale copper and iron vein mining occurring most recently at the end of the nineteenth century.  The geology is not conducive to the formation of a commercial deposit of copper, nickel, antimony, mercury or cobalt.   The company received the lowest possible rating when reviewed by PortfolioDirect in July 2014.  The share price has fallen by 99% since mid 2015 as the company has appeared to lose its strategic direction and its ambitious plans to enter the graphite mining and processing industry have failed to materialise. Under the proposed terms of the transaction, the company will more than double the number of shares on issue as well as committing to a 2% net smelter royalty on production.  Verdict: Sizzle.  PortfolioDirect Report: July 2014.

Redstone Resources raised $0.43M through an equity issue during the week to fund an exploration drilling program at the Tollu copper prospect in Western Australia. The prospect was last drilled in 2015 when a series of modest scale copper oxide resources were identified and a 3.8Mt 1.0% copper resource estimated.  The company, which has disclosed an exploration target of 31-47 Mt of mineralisation, outlined a future exploration program in August 2016 but what can be achieved within its current budget has not been disclosed. Boosting its resource estimate may enable a stronger funding base for a more concerted exploration program in the region in which it is operating. Verdict: Sizzle.  PortfolioDirect Report: None.

Spectrum Rare Earths completed a share placement to raise $0.6M after having spent only $4,000 on exploration over the six months ended December 2016 and finishing 2016 with cash of $154,000. Despite the company�s name, its primary exploration interest is now a gold property in the eastern Kimberley region of Western Australia in which it can earn a 51% interest. A review of historic data had identified high grade gold intersections which a re-start of exploration activity will be looking to repeat. The company remains underfunded and will be looking for sufficiently interesting intersections by the middle of 2017 to help replenish its funding base.  Verdict: Sizzle.  PortfolioDirect Report: None.

Summit Resources had been among the best performing stocks in the sector in the first weeks of 2017 with a tenfold rise in its share price as it rode the wave of interest in uranium-related investments.  The company holds resources in Queensland without development approvals. Paladin Energy has an 82% interest in the company.   By late February, the company had give up the majority of the earlier share price rise but seemed to recapture some of the earlier interest in the past week.  When queried by ASX in February about the source of the unusually elevated interest in the stock, the company said it had no information to explain the rise. Verdict: Sizzle.  PortfolioDirect Report: None.

Week ended 17 February  2017

Macphersons Resources reported drilling results from its Boorara project 10km east of Kalgoorlie in Western Australia. After testing the down dip extent of mineralisation at the Southern Stockwork prospect, the company reported an intersection of 163 metres downhole grading 4.29 g/t Au from a hole drilled oblique to the prospective mafic host rock. Two high grade intervals are contained within the interval which, if top-cut to 24 g/t Au, yields an overall grade of 1.94 g/t.  The results were described by the company as showing a �Mt Charlotte� alteration assemblage with stacked quartz veins hosting visible gold. Mt Charlotte contained a 6Moz precious metal inventory.   Verdict: Steak.  PortfolioDirect Report: None. <

Target Energy, with oil and gas assets in Louisiana and Texas, has been attempting a corporate reorganisation after the effective failure of its business model which relied heavily on a continuation of high oil prices and access to debt funding to grow its earnings base. Low liquidity in the market for the company�s shares means occasionally large, albeit unsustainable, gains in response to unusual numbers of transactions.  The company�s predicament has not changed.  It has reported the expiry of 265.76 million listed options which are likely to expire worthless.  This removes a potentially dilutive event but also eliminates the prospect of a capital infusion from their exercise. Verdict: Sizzle.  PortfolioDirect Report: None.

Adavale Resources, with Indonesian coal assets, reported that it had issued shares to a new investor as part of a previously announced capital and debt restructuring plan. The investor which has taken over a debt owing to the company�s chairman has been described by the company as �strategic� although, other than being a source of capital, no other benefits to existing shareholders have been disclosed.  As the company�s shares trade infrequently, it market value is subject to occasional large moves when a transaction occurs. Verdict: Sizzle.  PortfolioDirect Report: None.

Cokal Limited, which has been seeking to develop coal assets in Indonesia, has made no announcement about its activities since its quarterly activities report at the end of January in which it reported ongoing activity needed to prepare an application for a mining permit.  The recent rise in the share price has coincided with a strong rise in share turnover approaching the highest volumes traded since June 2015 and November 2013. trong>Verdict: Sizzle.  PortfolioDirect Report: None.

GTI Resources, a Western Australian exploration company with diverse interests, had announced completion of a share placement to raise just $100,000 at the start of the month.  The company reported having cash assets at the end of December 2016 of $37,000 after having spent only $6,000 in the quarter and $68,000 over 12 months on exploration.  Record high share turnover since the beginning of 2017 suggests expectations on the part of at least one party of a change in the fortunes of the company. Verdict: Sizzle.  PortfolioDirect Report: None.

Week ended 10 February  2017

Summit Resources is riding the wave of interest in uranium-related investments and has been among the best performing stocks in the sector since mid-January with a tenfold rise in price since the beginning of 2017. The company holds resources in Queensland without development approvals. Paladin Energy has an 82% interest in the company with a value of $117 million, equivalent to more than half the market value of Paladin Energy itself. In response to an ASX query about the rise in its share price, the company said it was not aware of any reason.  Verdict: Sizzle.  PortfolioDirect Report: None.

Corazon Mining has reported exploration results at its Lynn Lake nickel prospect in Manitoba, Canada. Five diamond holes which were directed at a geophysical anomaly at the Frazer Lake Complex (located 5km southwest of historical mine workings) intersected massive sulphides with textures consistent with the style of the exploration target.  While assays are awaited, a program of downhole geophysical surveys is underway. Verdict: Steak.  PortfolioDirect Report: None.

Korab Resources reported the presence of cobalt at its Bachelors prospect in the Northern Territory. The cobalt appears to be located within the weathering profile of deformed mafic igneous rocks. There is no evidence to suggest the presence of a continuous zone of enrichment. Verdict: Sizzle.  PortfolioDirect Report: None.

Bass Strait Oil reported a 33% increase in oil production from an onshore Indonesian asset in which the company has a conditional 55% interest.  Completion of the pending acquisition, which is to be backdated to October 2016, is subject to the agreement of the company�s shareholders. The lift in output to 700 bpd was attributed to a recent program of well optimisation. The field is located in the prolific South Sumatra Basin. Verdict: Steak.  PortfolioDirect Report: None.

Ram Resources, which had built a portfolio of exploration interests in the Fraser range area of Western Australia, announced that it had acquired an option to take an 80% stake in an early stage zinc prospect in Ireland. Although the Keel zinc prospect was described as "advanced", it is held under two prospecting licences with drilling dating as far back as 1963 by major mining companies not having led to a sufficiently attractive discovery. The interest will be through staged payments of over A$6M, a 75% increase in the number of shares on issue by the company and minimum spends on the project. There has been no independent valuation of the terms of the transaction which is subject to due diligence.  The company has cited a zinc market deficit to justify the transaction although recent data are showing that the anticipated rebalancing of the zinc market is more modest than had been anticipated (http://www.mining-journal.com/opinion/from-the-capital/what-happened-to-mine-closures/) The company has no prior history of mining deposits of this style or undertaking exploration in Ireland. Verdict: Sizzle.  PortfolioDirect Report: None.

January  2017

Beacon Minerals executed an agreement to purchase the Jaurdi gold prospect in Western Australia subject to completion of due diligence. The company subsequently reported the completion of 78 air core and RC drill holes on the eastern limb of a flat lying gold mineralised paleochannel. The results defined an extensive thick accumulation under 8 metres of cover.  Verdict: Steak.  PortfolioDirect Report: None.

Peako (formerly Peak Oil and Gas) had been an oil and gas exploration company with interests in the Philippines. While the company continues to describe itself as a diversified energy company, it has refocussed attention on an exploration tenement in the Paterson region of Western Australia which had been part of its portfolio of exploration interests when it listed on the ASX in 2009.  The region hosts the Kintyre uranium property. The strong investment return was not obviously attributable to any event but may be consistent with recent market interest in uranium related investments.   Verdict: Sizzle.  PortfolioDirect Report: None.

Hill End Gold appointed a lead manager to raise $1.4 million to fund gold-related exploration activities at the historic Hill End goldfield in NSW although, at the company�s annual general meeting in November 2016, the company had declared an aim �to acquire direct and indirect interests in attractive mineral projects to build a significant mining company�to reduce our reliance on the Hargraves and Hill End projects�.  Directors appear to be exciting interest through the appearance of activity while actually losing focus on their primary development assets.   Verdict: Sizzle.  PortfolioDirect Report: None.

Mustang Resources, moving toward ruby mining in Mozambique, completed a plant relocation and dispatched a maiden parcel of 6,221 ct of recovered stones to the United States. A parcel of five "special" stones included two 24 ct rubies. The results are consistent with the stated development plan of the company.  Verdict: Steak.  PortfolioDirect Report: 30 September 2016.

Champion Iron reported near the end of the month that work was progressing on the completion of a feasibility study into a resumption of iron ore mining at Bloom Lake in Quebec, an asset acquired by the company in April 2016.  Earlier in the month, the company had disclosed that it did not have any information to explain the reason for the share price rise. The company�s feasibility study is set for completion in the March quarter of 2017 quarter.  Verdict: Sizzle.  PortfolioDirect Report: 30 September 2016.

Week ended 3 February  2017

Orion Metals is an effectively dormant rare earth elements exploration company with $513,000 in cash assets at the end of November 2016 looking for more favourable funding conditions before being able to commit to exploration activity.  As the company has not released any information since its quarterly activities report in December, the share price movement, accompanied by above average volumes traded, appears the result of speculation about an upcoming event or a bet on improved rare earth market conditions.    Verdict: Sizzle.  PortfolioDirect Report: None.

Beacon Minerals reported the completion of 78 air core and RC drill holes on the eastern limb of a flat lying gold mineralised paleochannel at Jaurdi in Western Australia. The results defined an extensive thick accumulation under 8 metres of cover. Verdict: Steak.  PortfolioDirect Report: None.

Crossland Strategic Metals outlined a plan to merge with its joint venture partner to move to a 100% interest in the Charley Creek rare earths prospect in the Northern Territory.  The company has referred to �currently responding to ASIC queries in advance of regulatory approvals of the draft Notice of Meeting for the intended EGM to approve the acquisition� without offering any details of the terms of the transaction.  The merger plan appears to be a defensive step as neither partner is in a financial position to fund exploration with Crossland itself having just $71,000 in cash after having borrowed $1.1 million from directors during the nine months to September to shore up exploration efforts. Verdict: Sizzle.  PortfolioDirect Report: None.

Summit Resources is riding the wave of interest in uranium-related investments and, for the second consecutive week, is among the best performing stocks in the sector. The company holds resources in Queensland without development approvals. Paladin Energy has an 82% interest in the company with a value in excess of $70 million, equivalent to nearly one-third of the market value of Paladin Energy itself. While volumes traded have been relatively high by the standards of the company, the share price movement in the past week has been driven with values traded of less than $40,000. Verdict: Sizzle.  PortfolioDirect Report: None.

EMU NL reported that an initial program of surface geochemical sampling at its Vidalita gold prospect in Chile had shown precious metal anomalism supported by the presence of pathfinder metals. While early stage, the results are consistent with the company interpretation of a gold mineralised epithermal system. Verdict: Steak.  PortfolioDirect Report: None.   

Week ended 27 January 2017

Hill End Gold has appointed a lead manager to raise $1.4 million to fund gold-related exploration activities at the historic Hill End goldfield in NSW although, at the company�s annual general meeting in November 2016, the company had declared an aim �to acquire direct and indirect interests in attractive mineral projects to build a significant mining company�to reduce our reliance on the Hargraves and Hill End projects�.  Directors appear to be exciting interest through the appearance of activity while actually losing focus on their primary development assets.   Verdict: Sizzle.  PortfolioDirect Report: None.

Dateline Resources reported in mid-December that Southern Cross Exploration had moved from a 19.41% interest in the company to a 43.49% holding following the issue of securities relating to the acquisition of a portfolio of small historic gold properties in Colorado. The properties have no defined resources to underpin a development decision. The company has no experience in the management of assets of this type or operations in the United States.  The company has made no comment on the reasons for the recent share price activity. Verdict: Sizzle.  PortfolioDirect Report: None.

Flinders Mines reported that a rail consortium had completed an agreement with the government of Western Australia covering the potential development of a transport corridor close to a company-held iron ore resource in the Pilbara region. The proposed corridor, terminating north of the resource, is at a very early stage in planning but offers a potential alternative to an existing rail link between Tom Price and Dampier. Verdict: Steak.  PortfolioDirect Report: None.

GME Resources reported an operating profit of A$5.94M from the completion of a processing campaign to treat stockpiles of gold-bearing ore at its Devon property in Western Australia. Rehabilitation of the site is now underway.  The company did not outline any plans for the use of the funds. The company also reported progress toward development of a nickel-cobalt resource highlighting the potential for the use of mine output in the manufacture of lithium-ion batteries. Verdict: Steak.  PortfolioDirect Report: None.

Summit Resources is riding the wave of interest in uranium-related investments. The company holds resources in Queensland without development approvals. Paladin Energy has an 82% interest in the company with a value approaching $30 million. With the consequentially low market liquidity, the share price rise occurred with stock to the value of only $18,500 changing hands. Verdict: Sizzle.  PortfolioDirect Report: None.

Week ended 20 January 2017

Mustang Resources, moving toward ruby mining in Mozambique, completed a plant relocation and dispatched a maiden parcel of 6,221 ct of recovered stones to the United States. A parcel of five "special" stones included two 24 ct rubies. The results are consistent with the stated development plan of the company.  Verdict: Steak.  PortfolioDirect Report: 30 September 2016.

Petrel Energy was unable to throw any light on the reason for its recent share price performance in a response to an ASX query.  Late in December, it had disclosed that it had let a contract to drill four gas exploration wells in Uruguay although drilling will commence later than originally planned.  The company has completed a significant body of work on its tenements, defining conventional and unconventional plays, identifying gas markets and defining contingent resources from historical drilling. Verdict: Steak.  PortfolioDirect Report: None.

Kalnorth Gold Mines reported that it had appointed an advisory firm to assist in the disposal of its Kalpini gold prospect. Development of the company�s Lindsays prospect was terminated in the December quarter. Verdict: Sizzle.  PortfolioDirect Report: None.

Metals Australia reported that, consistent with an earlier interpretation, a literature review had confirmed the presence of lithium minerals at the company�s Lac La Motte prospect in Quebec. The company has a background in uranium exploration in Namibia but no experience in lithium exploration or mining development in Canada. Verdict: Sizzle.  PortfolioDirect Report: None.

Toptung had reported completion of several steps toward the commencement of a drilling program at its Torrington tungsten and topaz prospect in New South Wales in December. There had been no immediate share price response to the news that drilling was set to commence during the week of 23 January.  The company has no prior involvement in development design, assessment or product marketing of tungsten products. Verdict: Sizzle.  PortfolioDirect Report: None.

Week ended 13 January 2017

Peako (formerly Peak Oil and Gas) had been an oil and gas exploration company with interests in the Philippines. While the company continues to describe itself as a diversified energy company, it has refocussed attention on an exploration tenement in the Paterson region of Western Australia which had been part of its portfolio of exploration interests when it listed on the ASX in 2009.  The region hosts the Kintyre uranium property. The strong investment return in the past week is not obviously attributable to any event but may be consistent with recent market interest in uranium related investments.   Verdict: Sizzle.  PortfolioDirect Report: None.

Laramide Resources completed the acquisition of two exploration properties in New Mexico prospective for uranium. The properties which have regulatory approval for development have historic resources and a feasibility study prepared by a recognised consulting firm. The properties were acquired with staged cash payments and a production royalty. The Toronto based company has existing uranium exploration interests in Queensland and Utah in the USA. Verdict: Steak.  PortfolioDirect Report: None.

Uranium Equities holds exploration tenements in the Northern Territory in a recognised mineralised province containing large scale uranium deposits. A granted tenement at Nabarlek is situated in a geologically prospective position with encouraging alteration and geophysical anomalism. Verdict: Steak.  PortfolioDirect Report: None.

Coppermoly is currently undertaking a  drilling program at its Mt Nakru tenement on the island of New Britain, PNG where it had previously reported copper anomalism. No results from the current program have been released.  The company had unexpectedly received notice from PNG regulatory authorities in November that two other exploration licences would not be renewed. The recovery in the share price of the company is consistent with the seasonal pattern benefiting other companies in the sector leaving it within the trading range which had prevailed for the prior 10 months. Verdict: Sizzle.  PortfolioDirect Report: None.

Kimberley Diamonds applied to the ASX in December to have its securities delisted following shortfalls in its operating performance, an acknowledged need to obtain additional funds to allow the company to implement its production plans and cessation of mining activity at its Lerala diamond mine in Botswana. The company has not made any announcements about its activities since receiving permission from the ASX in late December to proceed with its delisting but did ask for a trading halt during the week after the rise in its share price. Verdict: Sizzle.  PortfolioDirect Report: None.

2016 Full Year Outcome

Realm Resources, backed by the Taurus investment group, acquired a majority interest in the Bowen Basin Foxleigh coal property in August although the ASX has subsequently deemed the transaction a backdoor listing resulting in the current suspension of the company from the exchange pending compliance with relevant listing rules.  The Foxleigh property comes with existing low volatile PCI coal production. A resource statement released in December pointed to marketable reserves of 39.2Mt.  A conventional truck and shovel operation with a dedicated wash plant would be linked to the Dalrymple Bay export coal loader by existing rail infrastructure. Verdict: Steak.  PortfolioDirect Report: None.

Argosy Minerals executed a farm-in agreement to earn a 90% interest in the historic Rincon lithium-bearing brine property in Argentina.   The company has said it is aiming to start and complete construction of lined evaporation ponds by the end of the first quarter of 2017 and finish a lithium carbonate pilot plant by the end of the third quarter.   Sometimes, company executives put forward fast track development plans to impress potential investors about their determination to succeed. �Fast track� is often a euphemism for �highly improbable�.    Against the pitfalls faced by others and the backdrop of how quickly development actually occurs, the timetable built into the ambitious Argosy Minerals game plan seems an unrealistic stretch.  Verdict: Sizzle.  PortfolioDirect Report: None.

Global Geoscience directors seemed to have given up on mineral exploration in April 2016 when they were enthusiastically embracing an e-commerce future but, by May, the company was acquiring a historical lithium-boron exploration property in Nevada.   After investors endorsed the company�s commercial nimbleness by subscribing $6 million, it conducted a limited drilling program and hastily defined a relatively low confidence resource in late 2016.   Lithium carbonate occurs within distinct units of the boron silicate mineral searlesite, leaving the directors of Global Geoscience and their investors to ponder the metallurgical challenge of how to competitively isolate the lithium from accompanying boron. Verdict: Sizzle.  PortfolioDirect Report: None.

Cougar Metals reported having a letter of intent to earn an 85% interest in Brazilian exploration tenements prospective for lithium. Previously, the company had been exploring for gold and base metals in Western Australia and Canada.   Cougar Metals, like the other lithium neophytes at the top of the performance ladder, lack prior experience in lithium exploration, project development or sussing out specialty chemical customers.  Verdict: Sizzle.  PortfolioDirect Report: None.

Hannans commenced drilling for nickel in the Forrestania-Mount Holland region in Western Australia after turning its back on fruitless Swedish exploration efforts through a demerger of its European assets.   In what looked like a sigh of relief, all the market gains occurred prior to completion of the corporate action.    Recent statements that the company would also look out for lithium exploration targets on its prospective nickel properties signaled an urge to hop onto the bandwagon to enliven interest.    Hannans, too, warrants being thought of as having an over reliance on sizzle for its unusually strong investment returns. Verdict: Sizzle.  PortfolioDirect Report: None.

December 2016

Winmar Resources is attempting a switch from iron ore to base metals in response to changed market conditions.  It reported mid month that land access to drill test its Lomero base metal prospect in southern Spain had been obtained.  A downhole electromagnetic conductor has been defined on the property secured in August.  The pyritic lode with historical copper workings contains gold credits. Deeper extensions to the defined lodes are being targeted for a larger scale project. The company has a limited background in base metals exploration but no operating experience in Spain within the senior management. Verdict: Sizzle.  PortfolioDirect Report: None.

Athena Resources share price gains occurred in the fisrt half of the month after it said it had signed a formal sale option agreement with a Hong Kong based company covering its Byro iron prospect in the midwest region of Western Australia. The agreement follows the company having entered into a binding term sheet for the conditional sale of the project on 11 January 2016.  As part of the transaction, the company received A$1M from the Hong Kong company which also nominated a director to the board.  Athena may also be entitled to royalty payments under certain circumstances but, as an option agreement, any development plans are in the hands of the options holder.  Verdict: Sizzle.  PortfolioDirect Report: None.

Dateline Resources reported at the end of November that, subject to satisfactory due diligence, it had acquired a second historic small scale underground gold prospect in Colorado. The deposit which was discovered in 1895 has processing facilities rated at 150-200 tonnes per day at the Sooner Luck Strike Mine. There are no details on when mining ceased or the condition of the mill. The announcement follows the acquisition of another small historic working 50 km away.  The company has no background operating in this region or in the rehabilitation and management of such small scale underground mines where operational success usually requires identification of a sufficient quantity of previously neglected and accessible high grade ore. Verdict: Sizzle.  PortfolioDirect Report: None.

Deep Yellow has been on a re-pricing path since October when the company announced it had entered into an agreement with an affiliate of a US-based investment firm to raise $1.42M through the issue of an additional 15% of ordinary shares.  The company referred to the arrangement as a �strategic relationship� which implies more to come about future dealings.  At the same time, the previous managing director of Deep Yellow was replaced by the former head of Paladin Energy, another company involved in developing uranium properties in Namibia.  The company has a credible exploration program with a resource base capable of eventual commercial production in a sector with underpriced assets given demonstrable longer term growth in uranium usage. Verdict: Steak.  PortfolioDirect Report: July 2015. 

Stone Resources completed a placement of securities to partly fund an exploration drilling program at gold exploration properties in the Laverton area in Western Australia and foreshadowed a further placement of stock to employees of the company. The properties in question are the subject of a non binding heads of agreement still subject to finalisation.  There is insufficient publicly available information from which to conclude anything about the prospectivity of the deposits. Verdict: Sizzle.  PortfolioDirect Report: None.

 23 December 2016

Talon Petroleum is an infrequently traded stock which reported negative operating cash flow from minority positions in two operating wells in Texas during the September quarter.  The investment return in the past week has reflected a single share transaction with a value of only slightly more than $100.   Verdict: Sizzle.  PortfolioDirect Report: None.

Stone Resources completed a placement of securities to partly fund an exploration drilling program at gold exploration properties in the Laverton area in Western Australia and foreshadowed a further placement of stock to employees of the company. The properties in question are the subject of a non binding heads of agreement still subject to finalisation.  There is insufficient publicly available information from which to conclude anything about the prospectivity of the deposits. Verdict: Sizzle.  PortfolioDirect Report: None.

Antilles Oil and Gas reported a new Perth-based substantial shareholder. The company�s founding director and an experienced oil exploration executive left the company in February. The current management of the company, which has a boutique capital advisory background, will have to redefine a future strategic direction.  Verdict: Sizzle.  PortfolioDirect Report: None.

Reedy Lagoon Corporation has reported acquisition of a right to buy three applications for exploration permits in Nevada covering lithium brine deposits. The move appears similar to that of numerous other companies without any history of involvement in the development of lithium prospects or the sale of specialised chemical products. Verdict: Sizzle.  PortfolioDirect Report: None.

Xstate Resources reported the acquisition of a minority interest in two onshore producing oilfields in California. The company has undertaken due diligence on the property including a commissioned external review of reserves. The company has expressed optimism about the production potential of the acquired properties due to their proximity to operating wells. The company has reported funding commitments for A$25 million to complete acquisition and undertake future development expenditure. Verdict: Steak.  PortfolioDirect Report: None.

 16 December 2016

Uranium Equities recently held its annual meeting of shareholders where, among other company business, a number of uranium mineralisation exploration targets in the Northern Territory were described. With cash resources of only $384,750 at the end of September and expected spending at a quarterly rate of $241,500, the company is heavily constrained in executing a meaningful exploration program despite what appears to be an attractive exploration portfolio.   Verdict: Sizzle.  PortfolioDirect Report: None.

Norwest Energy recently presented a review of exploration activities in the North Perth Basin of Western Australia. Three prospective targets were described but funding arrangements with potential earn-in partners remain unresolved. Verdict: Sizzle.  PortfolioDirect Report: None.

Strike Resources reported that it had entered into a conditional sale agreement covering its Peruvian iron ore properties with a diversified Chinese corporation. The agreement requires the completion of due diligence by 30 April 2017, final documentation and regulatory approvals. The company would stand to gain A$13.5 million from the transaction but Chinese buyers have been notoriously unreliable under similar circumstances leaving finalisation of the deal to depend heavily on the state of the iron ore market near the deadline. Verdict: Sizzle.  PortfolioDirect Report: None.

Mount Ridley Mines recently released the executive summary of an independent technical review which supported a company view that the Mt Ridley prospect shares some geological similarities with the Fraser Range although the company reported that equipment failures at drillhole MRDd018 has delayed hole completion until the new year. Until at least then, the prospect and the geological context of the region will remain unclear. Verdict: Sizzle.  PortfolioDirect Report: None.

Indo Mines is another example of bottom of the cycle leverage.  At a presentation to shareholders, Indo Mines reviewed its tenements including its idled Indonesian iron sands property. Trial operations commenced in May 2012 but a series of mechanical and technical failures coupled with a deteriorating iron ore market resulted in the stalling of a small scale mine and plans for a larger scale operation. Several design and market testing activities are underway without  evidence of this work leading to a better developmental outcome than in prior years. Verdict: Sizzle.  PortfolioDirect Report: None.

 9 December 2016

Athena Resources said it had signed a formal sale option agreement with a Hong Kong based company covering its Byro iron prospect in the midwest region of Western Australia. The agreement follows the company having entered into a binding term sheet for the conditional sale of the project on 11 January 2016.  As part of the transaction, the company received A$1M from the Hong Kong company which also nominated a director to the board.  Athena may also be entitled to royalty payments under certain circumstances but, as a option agreement, any development plans are in the hands of the options holder.  Verdict: Sizzle.  PortfolioDirect Report: None.

Dateline Resources reported that subject to satisfactory due diligence, it had acquired a second historic small scale underground gold prospect in Colorado. The deposit which was discovered in 1895 has processing facilities rated at 150-200 tonnes per day at the Sooner Luck Strike Mine. There are no details on when mining ceased here or the condition of the mill. The announcement follows the acquisition of another small historic working 50 km away.  The company has no background operating in this region or in the rehabilitation and management of such small scale underground mines.  Operational success at such historical mine openings require identification of a sufficient quantity of accessible high grade ore.   Verdict: Sizzle.  PortfolioDirect Report: None.

New Age Exploration had released a presentation at the end of November outlining a work program in the forthcoming year at its Redmoor tin joint venture in Cornwall.  The company had earlier restarted exploration at its Lochinvar coking coal property.  However, the most recent price appreciation, coming a month later, appears to be related more generally to improved market conditions with both coal and tin prices having improved through the month. While recently higher commodity prices will improve project values, the company does not currently have identifiable markets, a sufficiently well defined resource base or the requisite complement of skills to implement near term project development.  Verdict: Steak.  PortfolioDirect Report: None.

OM Holdings recovered from mid-November share price losses which had followed a doubling in price in the first half of November.  Prior to the initial improvement in market value, the company had reported its first quarter results since the end of voluntary administration in late August. Reported production at its Chinese ferrosilicon plant was above nameplate capacity. Strong manganese market conditions were noted by the company although there were no plans outlined at the time to resume mining at the idled Bootu Creek mine near Tennant Creek in the Northern Territory. Verdict: Steak.  PortfolioDirect Report: 26 June 2015.

Kidman Resources defined a maiden resource at its Earl Grey lithium prospect in Western Australia. The resource, estimated to an indicated and inferred confidence level, extends from surface to a depth of 300 metres. The company recently signed an access agreement to use a nickel ore processing mill located 100 km away to potentially treat lithium ore. The evolution of Kidman Resources as a lithium explorer and mine developer follows earlier decisions to exit gold and base metal properties.  In common with other companies embarking on a lithium mining strategy in response to recently strong market conditions, company management does not have a track record indicating an understanding of or relevant skills in lithium mine development and the production of acceptable quality product. The mill over which the company has a processing option is designed to treat much softer nickel sulphide ores. Verdict: Sizzle.  PortfolioDirect Report: 15 October 2015.

November 2016

Red Mountain Mining appointed a technical consultant to help it assess a lithium exploration property in Utah. The company recently sought a new direction in lithium (and raised new funds) after its gold development in the Philippines was stalled. The company has no direct experience in the highly specialised business of lithium brine exploration, evaluation or development. Nor does it have first-hand experience in the USA where an array of Australian companies have come unstuck having bought lesser quality assets in the mistaken belief that doing business in the USA was easier than working elsewhere. Verdict: Sizzle.  PortfolioDirect Report: None.

Reedy Lagoon Corporation was capitalised at $3.5 million after a near quadrupling in the share price of the company through November reflecting the potential among the smallest companies for strong leverage to even minor changes in business conditions.  The company completed a $314,000 capital raising but also reported that work on a gold prospect in Victoria would be delayed due to uncertainties over the tenure of the property matters. Meanwhile, the company reported that it was investigating lithium investment opportunities although the project to which the company referred as being under investigation at the end of October is no longer on the agenda. With little financial capacity to acquire assets or fund evaluation programs, the company faces difficulty is fulfilling its ambition to source projects near production.  With three clear changes in business strategy during 2016 alone, the company is an extreme example of a business looking for a strategy. Verdict: Sizzle.  PortfolioDirect Report: None.

Equator Resources announced the acquisition of an initial 80% interest, with an option to move to 100%, in an exploration property in Ontario, Canada. The property includes small historical silver working dating from 1908-1912 when silver and nickel-cobalt arsenate minerals were mined. Mine dumps include traces of secondary cobalt arsenate minerals formed from the weathering of the other minerals. The property purchase is subject to a due diligence report.  The company� prior exploration interests were in the Northern Territory in Australia.  Equator Resources has no specialist exploration skills relating to the evaluation of mineralised systems under consideration.  Nor does it have a background of building operations in Canada.  The pursuit of cobalt related activities reflects the current favourable sentiment about metals connected t the manufacture of batteries. Verdict: Sizzle.  PortfolioDirect Report: None.

Nex Metals Exploration experienced a relatively modest share price improvement against the backdrop of a price decline in excess of 95% since early 2012.  In its quarterly activities report released at the end of October, the company referred to evaluating prospects covering gold and base metals but that �projects need to show exceptional value for the Company to proceed to any type of acquisition arrangement�.  Meanwhile, the company is evaluating a gold tailings project in Western Australia although it has not offered any evidence of the technical or financial merits of any development plan. Verdict: Sizzle.  PortfolioDirect Report: None.

Champion Iron reported that a feasibility study evaluating the merits of restarting of the company�s Bloom Lake iron mine and concentrator in Quebec is underway.  The asset was acquired from Cliffs in April 2016.  The company reported expenditure of A$4.65M in the September quarter to maintain the property on a care and maintenance basis.  The Quebec government is funding a separate study covering key rail infrastructure in the area. Verdict: Sizzle.  PortfolioDirect Report: None.

25 November 2016

Top End Minerals secured an option over a 60% interest in a suite of base metal properties and a small zinc refinery (rated at 10,000tpa) in central and Northern Myanmar. The option costing US$43M has been granted by a company privately held by Australian and Chinese investors. The company�s announcement contains little information relating to the nature of the resources, the regulatory status of the tenements or the financial attributes or operating status of the facilities. The company which has hitherto been involved in base metal exploration in the Northern Territory has no significant mine operating experience nor familiarity with an improving but still challenging political environment in Myanmar.  Verdict: Sizzle.  PortfolioDirect Report: None. 

 TTE Petroleum reported that it had farmed out is Blue Ridge exploration property in Texas. The farm-in partner will carry TTE for five obligation wells. TTE is now seeking new investment opportunities. Verdict: Sizzle.  PortfolioDirect Report: None. 

Thompson Resources reported that it had secured a farm-in and joint venture agreement for its Bygoo tin prospect which is the historic Ardlethan workings in central NSW. The partner will earn 51% interest from staged payments of up to $3M by the end of November 2017. The joint venture partner has an option to acquire an additional 25% interest in the property. The arrangement should see some activity at what is potentially the most attractive of the company�s assets. Verdict: Steak.  PortfolioDirect Report: None. 

Red Mountain Mining appointed a technical consultant to help it assess a lithium exploration property in Utah. The company recently sought a new direction in lithium (and raised new funds) after its gold development in the Philippines was stalled. The company has no direct experience in the highly specialised business of lithium brine exploration, evaluation or development. Nor does it have first-hand experience in the USA where an array of Australian companies have come unstuck having bought lesser quality assets in the mistaken belief that doing business in the USA was easier than working elsewhere. Verdict: Sizzle.  PortfolioDirect Report: None. 

Inca Minerals reported completion of a share placement to existing investors following exploration results 15 km from its Riqueza zinc prospect in Peru. The company reported the presence of base metals at mine dumps and underground access points at historical mine workings. The presence of metals in historic mine dumps and spoils is unsurprising and is not necessarily an indication of exploration potential. Verdict: Sizzle.  PortfolioDirect Report: None. 

18 November 2016

Viking Mines announced agreements to acquire historic small scale open pit tin and tungsten mining properties in southern Thailand each of which is associated with lithium-bearing minerals.  The company has conducted confirmatory rock chip sampling of dumps and outcrops of pegmatite rock. Having floated on a gold prospect in Ghana on which the company conducted limited work, it has little experience in the industrial minerals industry to distinguish it from others seeking to develop lithium properties.  Nor, more generally, does the company have an exploration track. Verdict: Sizzle.  PortfolioDirect Report: None. 

Auroch Minerals reported filing exploration licence applications over tenements in Namibia prospective for lithium. The tenements are close to historical small scale industrial mineral workings with reported lithium mineral production. An initial program of geological mapping is under consideration. Since the end of October, the company�s share price has risen by as much as 100%.  Earlier in November, the company reported the results of gold exploration activities in the Norseman area of Western Australia. The company does not have a background in industrial minerals or exploration experience in Namibia. Verdict: Sizzle.  PortfolioDirect Report: None. 

Gulf Manganese Corporation resumed trading during the week after finalising terms for a US$10M investment in its proposed manganese smelter at Kupang, West Timor, Indonesia.  The company�s share price had previously recovered from a sharp fall in value during October with a 40% share price rise a week earlier.  The continued strength reflected greater optimism about the commercial potential of the venture. Verdict: Steak.  PortfolioDirect Report: None. 

Bassari Resources is awaiting grant of a Mining Permit for its Makabingui gold project in Senegal. At the end of October, since when the market value of the company has climbed by as much as 100%, the company reported �significant progress� following a three month review of the permit terms by the Senegal Ministry of Finance and the inclusion of negotiated amendments. Verdict: Steak.  PortfolioDirect Report: None. 

New Age Exploration reported a restart of activities at its Lochinvar coking coal prospect following receipt of research and development funding from the UK Government in July and further improvement in international coal market conditions. The company completed a scoping study two years ago which must now be reviewed and updated before development plans are furthered.  While recently higher coal prices will improve project values, the company does not currently have identifiable markets, a sufficiently well defined resource base or the requisite complement of skills to implement near term project development.   Verdict: Steak.  PortfolioDirect Report: None. 

11 November 2016

Tiger Resources is a beneficiary of the recent dramatic rise in copper prices.  Since late October, copper prices have increased by as much as 21%.  Coincidentally, the company�s ASX listing was reinstated after it received a US$10M bridging finance facility to cover anticipated production shortfalls and remedial works following a leak from the intermediate leach solution pond at the Kipoi mine in the Democratic Republic of Congo. Over the first three quarters of 2016, the company produced copper at an annualised rate of 24,259 tonnes at an all-in sustainable cost of $1.64/lb but the company has regularly suffered from variability in electricity supply and operational shortfalls.   Verdict: Steak.  PortfolioDirect Report: None. 

Atlas Iron is another company to benefit from the recent recovery in metal prices.  Since the end of October, the price of iron ore for delivery in China has risen 26% to significantly exceed the budgeted price outcomes on which Atlas Iron had planned its financial outcomes and on which it had based its debt reduction plans.  Shipments of 4.1Mt of ore in the September quarter enabled sufficient cash flow to reduce company net debt to $89M from A$257M at the end of the March quarter. Verdict: Steak.  PortfolioDirect Report: None. 

Black Mountain Resources was relisted on the ASX following a capital raising to support the acquisition of a vermiculite project in Uganda. The company has had a chequered history since coming to market as a North American silver mine developer in 2012 and consistently falling short of its business targets.  Without a more significant change in personnel heading the company, there is no reason to expect a change in the company�s track record. Vermiculite is a low value horticultural market input requiring operational scale and established marketing relationships. The company has no prior involvement in specialist industrial minerals markets.  Nor does it possess the necessary African operating experience. Historical governance practices are also a cause for concern. Verdict: Sizzle.  PortfolioDirect Report: None.

 Estrella Resources has acquired a company with lithium exploration and development rights over a property in Western Australia. The property, located south of the former Wattle Dam gold mine, is prospective for gold. The company has commenced sampling and had identified rock chip samples with anomalous lithium.  The company proposes to raise funds to carry out exploration activities. The company has no prior history or relevant expertise in lithium production or related activities. The lithium related acquisition follows the company�s review of a range of undisclosed non-resource and resource investment proposals as the company evidently sought to buy a new business strategy for which it can sustain funding. The company retains two copper exploration tenements in Chile. Verdict: Sizzle.  PortfolioDirect Report: None. 

 Paringa Resources is a beneficiary of the improved investment market sentiment toward coal.  Additionally, following the definition of a new coal seam at the company�s Poplar Grove property in Western Kentucky, the company has reported plans to secure finance for a development decision in early 2017. The company has appointed the former chief executive of Aston Resources to the role of chief executive officer to work with the previous incumbent. It has also recruited an experienced US coal industry executive as a non executive director.  Verdict: Sizzle.  PortfolioDirect Report: None.   

4 November 2016

Blackgold International, a Chinese based thermal coal producer with four operating properties in China, disclosed a scheme implementation agreement on 28 October with an existing shareholder. The 4.5 cents per share cash offer for all of the outstanding shares in the company was a 115% premium to the last closing price of the company.  Verdict: Sizzle.  PortfolioDirect Report: None. 

Intra Energy Corporation reported record monthly sales at its Tancoal mine in Tanzania. Sales of thermal coal are made to a local cement plant and regional customers. The company has demonstrated skills in operating a working coal mine in east Africa.  While monthly sales of 29,767 tonnes are modest by historical industry standards, the company reported on 26 October that it had signed a memorandum of understanding relating to the construction of a coal fired power station adjacent to the mine. The market revaluation of the company commenced in early October since when the  market value of the company has increased by 178%. Verdict: Steak.  PortfolioDirect Report: None. 

Greenpower Energy has allowed longstanding coal exploration tenements in the Latrobe Valley of Victoria to expired without renewal after concluding that the development prospects were to poor to warrant retention. The company had previously reported a lithium and rare earth elements exploration initiative in Guyana. The company has no lithium exploration experience or working experience in Guyana.  In early October as the change in business direction became evident, the market value of the company increased by 620%. Verdict: Sizzle.  PortfolioDirect Report: None. 

Bathurst Resources announced that it had acquired a portfolio of operating coal mines and prospects located on the Buller Plateau of the South Island of New Zealand and two mines located on the North Island. The company issued convertible debt and term debt to the value of NZ$31.9M to fund its 65% share of the acquired assets. The assets offer the company access to export markets for low ash metallurgical coal in addition to new domestic customers for thermal product. The company has demonstrated core skills in the operation of coal operations in New Zealand.  The latest market gain takes the total return over three months to 525%. Verdict: Steak.  PortfolioDirect Report: None. 

Prairie Mining announced a �strategic co-operation agreement� covering the financing and construction of an underground coal mine at the Jan Karski property in Poland. A bankable feasibility study is planned for mid 2017. The company purchased a second Polish coal property early in October with hard coking coal exploration target. The company has conducted mine permitting and related coal exploration activities in Poland since 2012 when it shifted focus from base metal exploration. Any potential coal production will be some years off owing to the scale of the necessary shaft sinking activity.  Core skills in coal mining have yet to be demonstrated although the company will have some time to make the transition.  The market value has doubled since the beginning of October. Verdict: Sizzle.  PortfolioDirect Report: None. 

28 October 2016

Deep Yellow announced it had entered into an agreement with an affiliate of a US-based investment firm to raise $1.42M through the issue of an additional 15% of ordinary shares.  The company referred to the arrangement as a �strategic relationship� which implies more to come about future dealings. 

In any event, the investment has been enough to gain a board seat and, at the same time, the previous managing director of Deep Yellow was replaced by the former head of Paladin Energy, another company involved in developing uranium properties in Namibia. 

The resulting share price change appears an overreaction although the Deep Yellow share price had underperformed Namibian uranium neighbour Bannerman Resources, for example, since the beginning of 2016. The Deep Yellow price gains had started before the recent announcement, as reported in the 23 October edition of �Steak or Sizzle?�. After the sharp re-pricing of Deep yellow, the performance difference between the two Namibian companies has narrowed to less than 10 percentage points.

The PortfolioDirect judgement expressed on 23 October remains: the company does have a credible exploration program with a resource base capable of eventual commercial production in a sector with underpriced assets given demonstrable longer term growth in uranium usage. Verdict: Steak.  PortfolioDirect Report: July 2015. 

New Age Exploration reported, subsequent to the rise in price, that its joint venture partner in the 50% held Cornish Redmoor tin prospect had completed a �600,000 capital raising through the issue of 12% more shares. The joint venture partner has various corporate and developmental activities including a rare earths prospect and a magnetite tailings recovery operation. New Age Exploration itself has several project options, including an exposure to British coking coal which the company highlighted in a presentation released on 24 October against the backdrop of stronger global coking coal markets.  A link from these activities to the price changes is difficult to perceive clearly. Verdict: Sizzle.  PortfolioDirect Report: None. 

ADX Energy reported an increase in contingent resources at the Nilde field located in waters off Sicily in Italian waters. The field is a historic discovery and FPSO development which was abandoned with the onset of low oil process. The current resource appraisal follows a reinterpretation of the available geological information from historic exploration and production wells. The company is managed by a team of professionals with strong offshore exploration and development capabilities. A more extensive resource underpins the prospect of better returns from any redevelopment plan.  Verdict: Steak.  PortfolioDirect Report: None

OM Holdings had been restored to the control of directors after a deed of company arrangement was concluded in August 2016. The company had been placed in voluntary administration on 4 January following deterioration in manganese markets and as the company was bringing on-stream its ferrosilicon plant in Sarawak. In the June quarter, ferrosilicon production had exceeded nameplate capacity with sales of 30,568 tonnes. Operations at the company�s Northern Territory manganese mine have been suspended since December 2015.  The company reported on its September quarter activities at the end of last week after the majority of the stock price rise had occurred tempting some thought that investors may have been expecting positive news.  In any event, with generally stronger commodity markets than at the end of 2015, some re-pricing of the company will have been warranted. Verdict: Steak.  PortfolioDirect Report: June 2015

Galilee Energy reported results from a horizontal gas production well drilled in a 400 metre long section of Betts Creek formation coal at its 100% held Glenaras gas project on ATP 529 in central Queensland. Details of this outcome were included in the company�s activities report for the September quarter released several days after the most recent price rise had commenced.  Cyclically low pices reached in July would have also been turned by improved energy market conditions.  Solid flow rates are supporting company efforts to engage with gas buyers, principally for export LNG markets. Pilot testing will continue until the end of 2016. The company has demonstrated capabilities in gas exploration and development initiatives, principally in Queensland and Texas and Kansas although North American activities have now ceased. Verdict: Steak.  PortfolioDirect Report: None

23 October 2016

Greenpower Energy has been looking to apply Victoria�s brown coal resources to unconventional non-power uses but the recent share price move dating from 13 October coincides with an announcement that it intends to commence field work at the Morabisi lithium prospect in Guyana which it has likened to the Pilgangoora deposit of Pilbara Minerals.  The company is yet to show that it has any special insights into lithium exploration and lacks experience in mine development. 

Earlier, Greenpower Energy had reported positive results from a plant trial using humic (fulvic) acid derived from bench scale test work using Victorian brown coal, heat and oxygen. The trial saw a 4% crop yield and a significant reduction (53%) in tomato fruit rot. More extensive plant trials are planned in conjunction with Monash University in 2017. The target of this work was the domestic broad acre and cereal fertiliser markets.

While it risks spreading itself too thinly and confusing investors about its intentions, there is a chance of announcements in coming months which take advantage of the current lithium euphoria. Verdict: Sizzle.  PortfolioDirect Report: None.     

Metals Australia announced an agreement to acquire four exploration properties from an Australian private company prospective for lithium and graphite in the vicinity of Val d�Or in Southern Quebec. The Canadian properties are historic discoveries with sampled outcrops. The company must pay $70,000 in cash and issue 150 million shares at a deemed price of 0.2 cents a share to the vendor as well as grant options over another 150 million shares for which no value was attributed.  The company had cash of only $56,000 at the end of June 2016.  It has now completed a placement to raise $950,000.

The company says it plans to explore its Manindi base metal prospect in Western Australia and undertake initial work in Quebec suggesting a risk of strategic indecision, management overreach and overhead inflation. The company has no track record in hard rock exploration. Metals Australia has also explored for uranium in Namibia, holding the Mile 72 prospect since May 2005. Verdict: Sizzle.  PortfolioDirect Report: None.     

Activex reported early stage exploration results at the Gilberton gold prospect 50km from the operating Kidston gold mine in northeast Queensland. A program of reconnaissance geochemical assays using a portable XRF gun was undertaken, defining clear signatures of pathfinder elements but the technology employed is not sufficient to detect the presence of gold mineralisation. The company also reported the results of selected rock chip samples taken from prospective igneous rocks, collected adjacent to historic gold workings.  Some samples reported up to 48.5 g/t Au. The results are encouraging given the initial geological similarities to Kidston. Verdict: Steak.  PortfolioDirect Report: None.       

The Grand Gulf Energy share price rise occurred before the company had a chance to make an announcement for which it has requested a trading halt.  Previously, the company had reversed a decision to demerge its oil assets and had been seeking a new funding partner for its portfolio of onshore Gulf region oil and gas assets. The $6 million company reported sales of $5.2 million in the June quarter for income of $2.2 million but has made no further public comments about its intentions.  The share price rise is likely speculation.  Verdict: Sizzle.  PortfolioDirect Report: None.   

The Deep Yellow price action started several days after the company reported a technology licensing agreement for the patented Marencia process (a technology designed to upgrade uranium ores) and a resource upgrade for the Tumas prospect. The resource now includes a higher proportion of measured and indicated ore.  The Deep Yellow price movement has coincided with stronger prices for Bannerman Resources, a fellow Namibian uranium mine developer. 

Deep Yellow is in a trading halt understood from reports to be for the purpose of a capital raising. Because the terms of the raising have not been disclosed, a judgement about the likely post-raising price reaction is difficult although, in current market conditions, a near term negative reaction is a strong possibility.  However, the company does have a credible exploration program with a resource base capable of eventual commercial production in a sector with underpriced assets given demonstrable longer term growth in uranium usage.  Verdict: Steak.  PortfolioDirect Report: July 2015.