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Coffee with Samso: Red Dirt Metals - the making of a major Australian lithium mining player

Stock Markets Sep 23, 2022 15:00
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Coffee with Samso Episode 155 is with Matthew Boyes, managing director of Red Dirt Metals Ltd (ASX:RDT).

This is an episode where we are potentially looking at the makings of a major lithium miner as Matthew Boyes talks about the acquisition of the Yinnetharra Lithium project. I see this move by Red Dirt as an expansion to make them the lithium version of Northern Star Resources (ASX:NST) Limited.

The analogy I am trying to make is to highlight that Red Dirt is making strategic moves to expand the company from its Mt Ida project. The lithium sector may not be as numerous as the gold sector which makes this acquisition even more important and valuable to shareholders of the company.

Check out our Coffee with Samso:

The Remaking of the Eureka Gold Mine - TNT Mines Ltd - Episode 86

Check out our Rooster Talk:

Red Dirt Metals Ltd - Mt Ida - A Lithium and Gold Mine

Since the acquisition of the Mt Ida project in September 2021 (Mt Ida Acquisition, Capital Raise and Presentation), the company is fast becoming a major player in this lucrative sector. The company completed the transaction on 24th September 2021 (Completion of Mt Ida Acquisition).

There are not too many aspiring lithium miners at this stage. Liontown Resources (ASX:LTR) Ltd will get to the stage first. Red Dirt is probably 2.5 years from that stage according to Matthew. At this moment, the difference I see in potential is that if Yinnetharra is as promising as Red Dirt thinks, this would make the company stand out from the crowd.

The other aspect of Red Dirt is the gold potential. I know that this is not valued at the moment. There is also some way before we can figure out if this will become a credit or not, in terms of the mining process. However, if that is sorted out, the credit input at the mining stage could make Mt Ida the cheapest lithium miner in the world.

For those investors who have been around for a long time, they will know very well that the credit input factor is a game changer.

Take some time, listen to the episode and use the information as part of your DYOR process.

Chapters:

00:00 Start

00:20 Introduction

01:27 Background about the new acquisition.

04:39 Are Mt. Ida and Yinnetharra similar?

06:12 How is the drilling at Yinnetharra?

08:26 Fund raising.

09:33 Ground access.

10:36 What is the attraction of the project?

11:24 What is happening at Mt Ida?

16:41 David Flanagan joining the board.

19:37 Potentials in Mt Ida.

21:14 Mt Ida exploration news.

22:00 Possibility of gold.

26:48 News flow.

27:35 Why RDT?

28:37 Lithium version of Northern Star.

30:23 Conclusion

PODCAST

About Matthew Boyes - Managing Director

Mr Boyes is a qualified Geologist and Fellow of the Australasian Institute of Mining and Metallurgy with 25 years industry experience with a strong background in minerals resources, project development, construction and operations management.

Mr Boyes has recently served as COO for AIM listed Patagonia Gold successfully overseeing the development and construction of two standalone Gold-Silver heap leach projects in southern Argentina. Mr Boyes has significant experience in product evaluations and financing with a focus on the junior market sector.

About Red Dirt Metals Ltd

Red Dirt is focused on the development and evaluation of underexplored brownfields exploration assets in Western Australia.

Mt Ida Gold Pty Ltd is the holding company of the Mt Ida Gold Project, comprising 19 tenements in the historical Mt Ida gold mining district, located approximately 100km north-west of Menzies in the WA goldfields.

The project tenements cover an area of 155km2 and include the historic Timoni Gold Mine and others, which have produced greater than 300,000 oz gold at 17.2 g/t head grade.

Highlights:

  • Acquired from Ora Banda Mining in September 2021 for $11M cash
  • A current gold resource of 318,000 t @13.8g/t gold for 141koz calculated under the JORC 2004 guidelines
  • Evidence of occurrences of Lithium-bearing pegmatites with Tantalum
  • Exploration activities to commence immediately October 2021
The Mt Ida project has total resources of 318,000 t @13.8g/t of gold for 141koz, Indicated resources total 136,000t @ 18.6 g/t gold for 81koz with 182,000t @ 10.3 g/t gold for 60koz in Inferred category. All resource currently stated at Mt Ida are calculated under the JORC 2004 guidelines with no material change to the existing resources since estimation.

Lithium Review:

Whilst undertaking the technical due diligence of the Mt Ida Project, it was noted that multiple high-grade lithium intervals had been intersected within pegmatite bodies on the western contact of the main Mt Ida granite intrusive, known as the Copperfield Granite.

Initial investigations from available data shows pegmatite outcropping in 5 separate locations proximal to the main granitic intrusive, and along the contact with the western bounding mafic amphibolite units which host the high-grade Mt Ida gold copper lodes.

A preliminary target corridor has been interpreted and extends for up to 5 km in strike from the most southern-identified outcrop parallel to the granite and north into the Company’s adjacent exploration tenement, with potential to extend further in both directions.

Of significance is that no historic exploration has been carried out with the intention of targeting these Lithium bearing pegmatite intrusives. This opens up large areas on both the eastern and western limbs of the granitic intrusive contacts for future exploration and will complement the Company’s aggressive gold/copper exploration program at the Mt Ida Project.

Please let Samso know your thoughts and send any comments to info@Samso.com.au. Remember to Subscribe to the YouTube Channel, Samso Media and the mail list to stay informed and make comments where appropriate. Other than that, also feel free to provide a Review on Google (NASDAQ:GOOGL).

For further information about Coffee with Samso and Rooster Talks visit: www.samso.com.au

About Samso

Samso is a renowned resource among the investment community for keen market analysis and insights into the companies and business trends that matter.

Investors seek out Samso for knowledgeable evaluations of current industry developments across a variety of business sectors and considered forecasts of future performances.

With a compelling format of relaxed online video interviews, Samso provides clear answers to questions they may not have the opportunity to ask and lays out the big picture to help them complete their investment research.

And in doing so, Samso also enables companies featured in interviews to build valuable engagement with their investment communities and customers.

Headed by industry veteran Noel Ong and based in Perth, Western Australia, Samso’s Coffee with Samso and Rooster Talk interviews both feature friendly conversations with business figures that give insights into Australian Stock Exchange (ASX) companies, related concepts and industry trends.

Noel Ong is a geologist with nearly 30 years of industry experience and a strong background in capital markets, corporate finance and the mineral resource sector. He was founder and managing director of ASX-listed company Siburan Resources Limited from 2009-2017 and has also been involved in several other ASX listings, providing advice, procuring projects and helping to raise capital.

He brings all this experience and expertise to the Samso interviews, where his engaging conversation style creates a relaxed dialogue, revealing insights that can pique investor interest.

Noel Ong travels across Australia to record the interviews, only requiring a coffee shop environment where they can be set up. The interviews are posted on Samso’s website and podcasts, YouTube and other relevant online environments where they can be shared among investment communities.

Samso also has a track record of developing successful business concepts in the Australasia region and provides bespoke research and counsel to businesses seeking to raise capital and procuring projects for ASX listings.

Disclaimer

The information contained in this article is the writer’s personal opinion and is provided for information only and is not intended to or nor will it create/induce the creation of any binding legal relations. Read full disclaimer.

Read more on Proactive Investors AU

Disclaimer

Coffee with Samso: Red Dirt Metals - the making of a major Australian lithium mining player
 

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