Published On: August 23rd, 2023
PolarX Limited (ASX: PXX) (PolarX or the Company), under the leadership of Dr Jason Berton MD, stands at the forefront of mineral exploration and development in Alaska and Nevada ranges with a strong focus on valuable resources like Copper, Gold, and Silver. The Company is actively unearthing the potential of these base and precious minerals, contributing to the advancement of both the Company and the broader industry.
On August 15th, 2023, the Company released the findings from Induced Polarisation (IP) investigations conducted across specific regions within the Black Canyon and Fourth of July Projects. Both deposits are part of the Company’s Humboldt Range Gold-Silver Project, Nevada.
Figure 1: PolarX Limited Project in the USA
Black Canyon Project (Gold Dominant)
A significant chargeability anomaly, measuring 1.7km in length, is present starting from the surface and extending south of the Ridgeline fault zone. This area of interest had been previously identified through PolarX’s mapping and surface geochemistry initiatives. The Ridgeline target comprises multiple veins trending north-northeast rich in gold mineralisation, visibly extending on the surface for a distance of 1.0km just north of the IP survey region. Interestingly, the entire length of the chargeability anomaly detected by the IP surveys lies beneath the existing access road. This positioning will prove beneficial in terms of facilitating drill rig access and minimising any potential disruption to the ground.
Fourth of July Project (Silver Dominant)
Four IP traverse lines oriented east-west and ranging from 3,000 to 3,500 meters in length were conducted at the Fourth of July (“FoJ”) location, totalling a distance of 13.6 km. The chargeability regions within the inversion model profiles span the entire survey area. The most intense chargeability anomalies at the Project site are primarily concentrated close to the surface, aligning well with soil anomalies and recognised fault structures that trend in a northwest direction.
PolarX Project Portfolio
PolarX Limited operates in two locations in the USA, Alaska Range and Humboldt Range, Nevada. Under Alaska Range, the Company has two significant projects, Caribou Dome Copper Project and Steller Copper-Gold Project. The Company owns Black Canyon and Fourth of July projects in Humboldt Range, Nevada.
Figure 4: PolarX Limited’s Project Location
Alaska Range Projects
The Alaska Range comprises the Caribou Dome Copper Project and Steller Copper-Gold Project.
Figure 5: Caribou Dome And Stellar Project Resources And Location
Caribou Dome Copper Project
The Caribou Copper Dome is a Copper-Focused Project based out of the Alaska Range, located 250 km northeast of Anchorage. It comprises 216 contiguous State Mining Claims and is immediately adjacent to the Company’s Stellar Project. The Project comprises two significant areas -Caribou Dome and Senator Extensions. Caribou Dome (80% ownership) holds untapped reserves of valuable minerals, categorised as a JORC resource, and its exploration potential expands in all directions.
Senator Extensions (90% ownership) shows notable copper concentrations, up to 12.1%, as validated by rock samples. This discovery amplifies the Project’s significance and exploration prospects, underscoring its promising future. The mineralisation spans from the surface to depths exceeding 300 meters.
Figure 6: Caribou Dome Copper Project Resources
Significant Advancements:
- Recently, in June, PolarX announced an increase in the Mineral Resource Estimate (MRE) for its Caribou Dome Copper Project
- The updated MRE showed an impressive copper metal content of 224,375 tonnes. This is 2.6 times larger than the 2017 MRE, which reported a copper metal content of 86,000 tonnes from 2.8 million tonnes at a copper grade of 3.1%
Stellar Copper-Gold Project
The 100%-owned Stellar Project has 231 continuous State Mining Claims, close to PolarX’s Caribou Dome Copper Project. Encompassing 150 square kilometres, the Project underwent limited exploration until 2017 and 2018, during which PolarX conducted an extensive drilling campaign comprising over 30 new boreholes. Steller Copper-Gold Project contains various deposits Senator, Mars Porphyry Cu-Au-Mo Deposit, Gemini Prospect, Moonwalk Prospect, Jupiter Prospect, Saturn Porphyry Target and Zackly Gold and Copper Deposit.
This initiative aimed to validate and extend the deposit’s potential. This maiden estimate accounted for 3.4 million tonnes with grades of 2.0 grams per tonne of gold (Au) and 1.2% copper (Cu).
On October 17th, 2022, the JORC resource was updated to incorporate PolarX’s subsequent drilling endeavours, yielding a revised estimate of 4.0 million tonnes with grades of 1.6 g/t Au, 1.1% Cu, and 12.6 g/t Ag (silver). This ongoing exploration and resource enhancement shows the Project’s evolving potential and the Company’s commitment to unlocking its mineral riches.
Figure 7: Zackly Deposit Resources
Combined Positive Scoping Study For Mining of the High-Grade Zackly Copper-Gold and Caribou Dome Copper Deposits in Alaska
A Combined Scoping Study for Zackly and Caribou Dome demonstrates the potential for robust cash flows. PolarX has plans to mine Zackly Project first and then start with Caribou Dome Copper Deposits. This study is based upon particular assumptions and the 2017 Caribou Dome mineral resource estimate, an updated mineral resource estimate for Zackly and new metallurgical test work results for both deposits as detailed in the report.
Figure 8: Key Mining Physicals By Deposit And Processing Physicals By Year
Capital and Operating Expenditure
All capital items used in the evaluation are shown in Figure 9.
Figure 9: Initial and Sustaining Capital Cost Summary
The estimation of operational costs has been formulated utilising various approaches, encompassing the calculation of rates based on fundamental principles and referencing benchmark figures. Underground mining costs have been derived from the first principles utilising: Equipment ownership cost (including depreciation, interest and insurance), equipment operating costs based on hours utilised, and personnel costs, based on Australian labour costs converted to USD at a $0.70 exchange rate with 35% on-costs.
The expenses related to open pit mining have been incorporated based on findings from prior investigations and a gradual accumulation of staff-related expenditures.
The determination of processing expenses has been accomplished through the construction of both fixed and variable components:
- The static expenditures have been assessed at USD 5 million per annum, predominantly attributed to labour, encompassing around 33 personnel.
- The operational unit expenses have been approximated at USD 11.30 per tonne for Zackly and USD 15.30 per tonne for Caribou Dome. These costs cover power, consumables, and maintenance.
Summary Of The Study
Key assumptions and outcomes of the analysis comprise:
- The enlarged Zackly mineral resource estimate now stands at 4.0 million tonnes, containing 1.1% copper and 1.6 g/t gold
- Metallurgical recovery rates of 90% for copper and 79% for gold through flotation at Zackly, along with a 78% copper recovery rate from Caribou Dome’s flotation process
- The processing schedule is designed for an annual rate of 600,000 tonnes with a life of mine (LOM) of 6.5 years. Mining commences at Zackly before transitioning to Caribou Dome. Both deposits’ mineralisation is treated within a conventional sulphide flotation plant that is modified as production shifts from Zackly to Caribou Dome
- The Project’s profitability is mainly influenced by the copper price, metallurgical recovery, and operational expenses
- Key economic results are presented on a 100% project basis and exclude financial leverage
Figure 10: Summary of Caribou Dome And Zackly Copper Project
Humboldt Range Gold-Silver Project
The Humboldt Range Project encompasses 364 lode mining claims across two deposit claim groups: Black Canyon and Fourth of July.
It is positioned between two operational large-scale mines, the Florida Canyon gold mine and the Rochester silver-gold mine. The project also borders the swiftly expanding Spring Valley Gold Project, which has a resource exceeding 4 million ounces of gold.
Figure 11: Humboldt Range, Nevada Claims Map
Black Canyon Project
Black Canyon is a Gold-dominant Project that hosts an impressive 5 Moz gold. PolarX Limited’s rigorous soil sampling has unveiled impressive, coherent anomalies spanning 1.3 to 2.3 kilometres, drawing attention to upcoming drill testing.
Highlights:
- Soil assays reveal substantial gold concentrations, 793 parts per billion (ppb), while rock-chip samples from old mine workings showcase up to 512.7 grams per tonne (g/t) gold in quartz veins.
- Three noteworthy gold anomalies, each surpassing 50 ppb gold in soils, extend impressively over lengths exceeding 1.3 kilometres.
Fourth of July Project
Fourth of July is a Silver-dominant project that lies within proximity of less than 15 kilometres to the operational and impressive Rochester Mine. This mine boasts substantial reserves of 400 million ounces of silver and 3 million ounces of gold.
Highlights:
- The most prominent silver anomaly, characterised by soil values exceeding >0.5 g/t silver, spans a significant expanse of over 3.5 kilometres in length and up to 2 kilometres in width. It boasts a remarkable peak value of 186 g/t silver
- Rock-chip samples extracted from veins within this expansive silver anomaly showcase exceptional concentrations, with numerous samples assaying over 60 g/t silver. Impressively, eight samples recorded values surpassing 1,000 g/t, reaching a peak of 4,800 g/t
Industry Outlook
Mckinsey & Company’s report anticipated electrification will elevate the annual copper demand to 36.6 million metric tonnes by 2031. While existing supply projections based on restarts, certain or probable projects, and recycled production would be 30.1 million metric tonnes. An unfulfilled capacity of 6.5 million metric tonnes (equivalent to an extra 20 per cent) needs to be identified to meet the gap.
The leading cause of the expected copper demand increase is the gap between demand and supply. Factors supporting copper production in copper-producing countries like Chile and Peru are not in favour related to the government mining policies, labour law, social issues, water scarcity, etc. The resultant negative impact of supply. Rapidly increasing electrification and solar power demand pushes the copper demand, eventually increasing prices.
PolarX Limited’s future is promising, especially considering its active exploration and development Projects in the high-grade Copper, Gold, and Silver Projects. Significant coherent anomalies across their projects show the prospect of uncovering even more extensive mineral reserves through additional exploration and drilling.
The notable increase in the Mineral Resource Estimate for projects like Caribou Dome and Stellar demonstrates the Company’s commitment to unlocking mineral potential.
Dr Jason Berton, MD of PolarX Limited
Figure 12: PolarX Managing Director Dr Jason Berton
With over 16 years of experience in mining and exploration, Dr Jason Berton, MD of PolarX Limited, is an accomplished geologist who has contributed his skills to renowned entities like Homestake, Barrick, BHP Billiton, and SRK Consulting.
Dr Jason Berton MD has enriched his industry experience with a two-year involvement in private equity investment and a four-year tenure as the Managing Director of Estrella Resources, a company listed on the ASX.
Dr Jason Berton, MD, holds two degrees – a Bachelor of Economics and a Bachelor of Science (Hons) – alongside a PhD in Structural Geology from Macquarie University.
PolarX Limited’s Investor Outlook
- PolarX Limited and Dr Jason Berton focus on valuable resources like Copper, Gold, and Silver, coupled with successful drilling efforts, showing the potential for uncovering significant mineral reserves at Humboldt Range, Nevada
- The Company own significant advance stage Caribou Dome Copper Project and Zackly Copper Project in Alaska Range with expected positive net cash flow
- Ongoing exploration efforts aimed at expanding known mineral resources position the Company for development and expansion, appealing to those seeking long-term growth prospects
- PolarX Limited’s stock price stands at AUD 0.01 per share as of August 16th, 2023, with a 52-week range of AUD 0.007 – AUD 0.032
- The Company has a market capitalisation of AUD 14.95 million as of August 16th, 2023, and has a total of approximately 1.35 billion shares on the issue with 91.55 million listed options (AUD 0.03; Nov 6th, 2023) and 50.9 unlisted options as of June 30th, 2023
- PolarX Limited is a debt-free entity and has cash and cash equivalents of AUD 0.73 million as of June 30th, 2023
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