Interview with Shaun Bunn, Managing Director of Empire Metals Ltd.
Our previous interview: https://www.cruxinvestor.com/posts/empire-metals-loneee-titanium-opportunity-taking-shape-at-pitfield-project-4933
Recording date: 12 June 2024
Empire Metals, a junior mining company, recently announced exploration targets of approximately 30 billion tons grading 4.5-5% TiO2 at their Pitfield titanium project in Australia. According to Managing Director Shaun Bunn, this represents about 20% of the project's total mineral system and equates to 1.5 billion tons of contained TiO2, enough to theoretically supply current world demand for 150 years.
The company believes the project is highly unusual, with mineralization comprised predominantly of titanite (calcium titanium silicate) that has weathered to high-value titanium minerals like rutile and anatase in the oxidized surface zone. They see potential for a low-cost, fully integrated operation to produce finished TiO2 pigment.
Significant infill drilling and technical studies would be required to convert these targets to mineral resources or reserves that could support a viable mining operation. The company acknowledges that the unique mineralogy may pose processing challenges. Metallurgical test work to define an economically feasible extraction method is at an early stage. Much more work is needed to assess mining and processing costs, capital requirements, product marketability and overall project economics.
Development plans and timelines remain vague at this point. Management aims to complete a mineral resource estimate and processing flowsheet over the next 6-12 months. However, any potential production would likely be many years away, after extensive further drilling, technical studies, permitting, financing and construction.
As with any early-stage exploration project, Pitfield carries very high risk for investors. Bold claims of world-class potential should be viewed skeptically without independent verification. The project's economic viability remains unproven. Even if exploration targets are confirmed, there is no guarantee the deposit will be mineable at a profit.
Empire Metals should be considered a highly speculative stock. Investors must have a strong appetite for risk and ability to withstand potential loss of capital. As further studies are completed, the company may have to raise substantial additional equity funding, likely resulting in significant dilution.
Key upcoming catalysts could include announcement of a maiden resource, metallurgical test results, and a preliminary economic assessment.
In summary, Empire Metals' Pitfield is an intriguing but highly speculative exploration play. A cautious approach is warranted until the project is significantly derisked. Investors should monitor the company's progress in converting exploration targets to mineral resources, defining viable processing methods, and demonstrating economic potential.
View Empire Metals' company profile: https://www.cruxinvestor.com/companies/empire-metals
Sign up for Crux Investor: https://cruxinvestor.com
What is Company Interviews?
An insight into junior mining and opportunities to invest.
Company Interviews, a Crux Investor show, exists to cut through the jargon, bias and bluster.
Matthew Gordon, and guest host Merlin Marr-Johnson hone in on the important factors that indicate a company's strong footing for growth and success.