Macro Metals (ASX:M4M) – formerly Kogi Iron – has announced it’s launched a mining services arm as its overall company mission expands.
For an iron ore explorer that once tried to make Nigeria its flagship jurisdiction, then pivoting back to WA, the diversification of potential revenue opportunities may make investors take note. Shares were up nearly 7% at 1pm Sydney time – albeit, to 3.2cps.
That mining services division, as well as its launch, relates to the company’s acquisition of 80% interest in three manganese areas of interest the remit of Firebird Metals.
The Wandanya, Disraeli and Midgengadge projects – all in WA – form one cohesive project; should Macro decide to mine the assets, it will become a joint operation split 80/20 between Macro and Firebird respectively.
Macro subsidiary Macro Mining Services (MMS) will be responsible for provision of mining services, all things in order.
At the Wandanya project, a number of past drill cores are of foremost interest. They include:
- A 13m wide section @ 22.36% manganese at surface (1m depth)
- 9m @ 25.2% manganese at surface
- 8m @ 29.5% manganese from 10m depth
- 8m @ 24.0% manganese from 1m depth
Those drill hits were pulled from a prospect called ‘Donkey’; two other areas of interest are backed up by rockchips.
Macro must spend at least $150,000 to retain its 80% interest within the first year. Should Macro go ahead, Firebird can keep 20% or convert its interest to a 1% FOB royalty. Making up that $150K will be 10 RC drill holes Macro is required to drill on-site.
Macro MD Simon Rushton outlined his vision for the mining services arm to be brought up to speed.
“By providing mining services to third parties we can scale our teams quicker than by only providing services as we bring each of our own projects into operation,” Rushton said.
“By providing mining services to third parties we can scale our teams quicker than by only providing services as we bring each of our own projects into operation.”
While launching to a 4 year high in June, the price of manganese has since come down -13%.
M4M last traded at 3.2cps.