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ABA Resources

ABA Resources is an Australian gold mining and exploration company . ABA has acquired the mining and exploration licenses in the historically gold rich region of Omeo in Victoria and plans to construct a gold mine there.

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$10,000

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Project Summary


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Summary


Colin Moorhead, ABA Resources CEO



ABA Resources is an Australian gold exploration and development company. Proudly Victorian, ABA’s vision is to develop a contemporary and sustainable mining company focused on the historic Omeo goldfields, largely unexplored and home to some of the richest gold mines in Victoria.

The Victorian gold industry is currently experiencing a renaissance, with exploration and investment ramping up as the sector looks towards a reinvigorated future. Examples of gold mining companies in Victoria are Fosterville and Stawell. This is largely driven by a strong gold price and demand, modern exploration techniques and safe jurisdiction.

ABA Resources has a recently renewed mining license for the Mt. Wills gold mines near Omeo and has several exploration licenses in the Cassilis region. The Mt Wills gold mines have known “in situ mineralisation” that typically occurs as narrow, high-grade quartz veins containing gold and silver.

Approximately 43.5km of drilling has been completed at the Mt Wills gold mines, yielding a Mineral Resource estimate of 320,000 oz gold in December 2019, comprising 2.5 Metric tonnes at 4 grams/tonne. Further infill and exploration drilling is expected to significantly increase the JORC (Joint Ore Reserves Committee ) mineral approved estimation above.

The Cassilis Mining tenements have a rich gold-producing history with more than 350 old gold mines and historical works such as the King Cassilis mine and other significant historical mines. ABA Resources holds approximately 263km2 of exploration licenses. This area also includes around 400 kilotonnes of mullock and 200 kilotonnes of tailings. Mullock and tailings are the crushed rocks and waste rocks that were left from historic mining.

Significant amounts of existing historic mullock and tailings exist on-site. Pre-existing sampling data shows these occurrences are variably mineralized and may be able to be used to augment underground ore sources (subject to study outcomes and market conditions).This will also rehabilitate legacy environmental issues.

ABA have a clear path forward to provide positive outcomes to all of our shareholders. It has an experienced management team, mining licences and exploration licences in the Omeo region which show the potential for huge upside of high-grade gold reserves. Privately run mines are very rare in Australia and this presents a unique opportunity to invest in a commodity that has seen a recent surge in prices.


Industry Overview



Gold ore mining is a well-established industry in Australia and has grown considerably over much of the past decade. Growth has stemmed from price increases in Australian dollar terms, and gold's status as a counter-cyclical commodity, which means that gold is widely viewed as a safe-haven asset during national and global economic uncertainty. Global economic conditions and higher domestic gold prices are expected to boost revenue for the Gold Ore Mining industry over the next five years through.

Australia is the number two gold exporter in the world however Australia’s biggest gold mines are getting older and not enough substantial new mines have been discovered due to a shortage of exploration. This year Australia will produce a record 360 tonnes of gold in 2020, however it is not predicted to have the same growth over the next 5-10 years as new potential gold mining sites are becoming hard to find.

The Australian gold industry comprises 71 operating mines, with Western Australia accounting for the majority, roughly 68%. It should also be noted that Australia has five of the world’s 20 largest gold mines.

Each year, global gold mining adds approximately 2,500-3,000 tonnes to the overall above-ground stock of gold. While gold production has shown an upward trend in recent years, this is likely to level off in coming years.

For the Q1 ending March 31, 2019, global reported gold production was down ~11% compared to the previous quarter. Production decreased in all major regions. North America was the largest gold producer, followed by Africa, and Australia & Oceania.

The current state of play and as reported by the Office of the Chief Economist said Australia’s position as the second largest gold producer was expected to be challenged as ‘some mature gold mines in Western Australia come to their end of life.’



Market Demand


Gold has emotional, cultural and financial value and different people across the globe buy gold for different reasons, often influenced by a range of national socio-cultural factors, local market conditions and wider macro-economic drivers.
Gold’s diverse uses, in jewellery, technology and by central banks and investors, mean different sectors of the gold market rise to prominence at different points in the global economic cycle. This diversity of demand and self-balancing nature of the gold market underpin gold’s robust qualities as an investment asset.

The current breakdown of global gold reserves is approximated as follows:
• Jewellery: 90,718 tonnes, 47.7%
• Private investment: 40,035 tonnes, 21.1%
• Official sector: 32,575 tonnes, 17.1%
• Other: 26,711 tonnes, 14.1%
• Below ground reserves: 54,000 tonnes

The COVID outbreak began a price surge early this year with increasing negative news on economic growth fuelling the increase in the price of gold. Jewellery demand was particularly hard hit by the effects of the outbreak; quarterly demand dropped 39% to a record low for our series of 325.8 tonnes.
Though despite consumer demand declining, Central banks and institutional investors continued to buy gold in significant quantities, with net purchases amounted to 175 tonnes. If the current trend holds, gold is set to hit approximately $3000 USD (~$4500 AUD) by Q4 2020.


Expansion Plans


ABA Resources plans to mine and treat ore using contemporary, safe, low-footprint technologies. This will be for the mutual benefit of the community, region, state, investors and commercial partners. ABA's experienced management team with demonstrated mining capabilities will employ the appropriate practices and reporting systems.

An integral part of ABA’s plans is to ensure the environmental impact and footprint on the region by its operations are not detrimental. To that end, ABA plans to rehabilitate the tailings and mullock piles which are a historical environmental hazard. They are expected to be used to augment the plant feed which would be of great benefit to the company.

ABA’s goal is to ensure that all stakeholders benefit from their involvement. This includes the shareholders and the local and surrounding community. ABA Resources has a strong commitment to the communities in which we operate. As ABA rolls out their mining and exploration project schedules, there is an emphasis on continuing to employ and train the local community.

ABA plans to complete their concept study followed by a Pre-Feasibility Study (PFS) and maiden Ore Reserve by mid-2021. This will involve targeted infill drilling, an upgrade of the JORC estimation to an Ore Reserve, bulk sampling and advanced permitting. Commencement of commercial production of Gold and Silver is expected to commence in the first half of FY 2023.

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