In this episode of Coffee with Samso 177, we have Mike Bohm, the Chair, and David Groombridge, CEO of Riedel Resources Limited (ASX: RIE) sharing with us the 2023 version of the Riedel Resources story.
The last time we spoke to Riedel Resources was in 2021. In early 2021, I came across the Kingman project when Riedel Resources announced the high grade nature of the project.
Listen to our coffee conversation with Mike Bohm and David Groombridge here:
The Riedel Resources Limited (ASX: RIE) Story So Far
Riedel Resources is one of those companies that on initial assessment, I was instantly attracted to the geology. As I mentioned, when I first saw the maiden drilling results, I felt that this was something to keep an eye on.
As an exploration geologist, what is there not to like? The project area (Figure 1) is reminiscence of the Kalgoorlie goldfields. You will hear Mike and David talk about the fact that if the Kingman project was in Australia, it would have been drilled.
Figure 1: The Kingman Project in Arizona, United States. (Source: Riedel Resources Limited)
It is important to appreciate these words as the easy pickings of the goldfields are all gone. There are no more easy discoveries, but places like the Kingman project have not had the attention and it’s like a time warp event.
The recent announcement to target a maiden resource for Kingman will go far in maturing the project. This will be the first steps to identifying an economic statement which, according to Mike and David, a toll treating mining solution.
What is in the “Potential” basket for the Kingman Project?
To look at what else is in the package, I think the best thing is to have a look at an image that was released way back in May 2021 (Figure 2). The geophysical images tell us that there seems to be some magnetic highs which taken with the understanding of the area is significant. There is a known porphyry within 6km from the project.
What we know about porphyry is that they occur in clusters and are highly variable in mineralisation. The existence of base metals at Kingman makes me think that there could be a VMS system (Volcanic Massive Sulphide) lurking within the project.
Figure 2: Geophysical anomalies at Kingman Project shown relative to historic mine areas and elevated surface rock chip sample coincident with magnetic anomaly.
(Source RIE Annoucnement May 2021)
When you look at Figure 2, you cannot help but think that there is a lot of cooking mechanisms working in this area. In May 2021, I wrote a Samso Insight which highlighted the regional perspectivity of the area. This Samso Insight brings out why I think this whole region is very prospective.
New World Resources Limited (ASX: NWC) has a very high grade VMS project to the south of Kingman. I think it is about 100km south east of Kingman. When I speak to the company for their Coffee with Samso, they speak of the same potential of the region.
It is important to have a read of the Samso Insight as that will give you a good understanding of why people like me believe in this region.
The most important part of the whole Riedel Resource story is the potential nature of the technical part of the project and Mike Bohm. We have covered the technical part of the project above and I am pretty sure most readers get my point.
Why do I say Mike Bohm? He is a proven performer. I have known Mike since 1993 at Ashton Mining. I have never worked with him but talking to him and observing what he was doing, he has always struck me as a no nonsense person who is the consummate professional. Today, working with him, I can see that coming through.
Mike is a mining engineer and he was on the Board of Argyle Diamond Mine. I suspected that he had that role because Argyle was all about mining. The Board of Ashton Mining Limited would probably have wanted someone there that knows a thing or two about mining to represent them on the Board of Argyle Diamond Mines.
If you look at the companies that Mike has been involved with, you will realise that this is not a man that talks in riddles. He does what he says and his stature on the ASX level is one I am sure he does not want to tarnish. He has worked with major mining companies and he understands what will work and what is a pipe dream.
Hence, when Mike says that when they prove up the resource for Kingman and they can truck this to a toll treatment facility, you feel safe that this has been calculated.
In all my conversations with companies, I have always stated that the two most important components in your research are technical merits and management integrity.
Tune in to the Riedel story here.
01:33 New learnings from the Kingman project.
02:47 Type of mineralisation at Tintic in Arizona.
04:25 Strategic area of high-grade mineral system at Tintic.
08:02 Chasing the high-grade gold in Tintic.
09:48 How should investors interpret the grades and drill holes?
13:20 The advantages of the Kingman project.
16:15 Permitting process in the US.
17:03 Upcoming 7000m RC Drill program and further works.
18:35 Possible challenges in the Kingman Project.
22:18 News flow.
25:23 Why Riedel Resources?