FCR v Consolidated Zinc

Consolidated Zinc is listed on the ASX with a resource interest located in Mexico. It has a market cap at time of writing of A$10.89m equivalent to 6.3m GBP.

A recent, well constructed presentation, shows a CZL JORC 2012 section with CZL owning 51% of an asset with a claimed ‘clear pathway to 100% ownership near term ‘

Repeat – CZL owns 51% of a JORC 2012 Mineral Resource of 968,000T @ 15.9% Zn+Pb (154,000t contained metal (Tonnage * grade) );

Now compare 50% of 154,000 tonnes metal with that owned by FCR (NI 43-101) and the contrast is stark  – and that’s before the Toral JORC 2012 due any time soon with expected (IMO) higher tonnage and grade lands.

Further comparisons with Peers on ASX:

As at 7th January 2018, a quick market comparison shows, according to Hotcopper :

Mkt Cap


299.0m 146.9m 40.6m 170.3m 13.15m 20.17m 10.89m 12.08m 6.11m
Mkt Cap


173.24m 85.1m 23.52m 98.7m 7.61m  



6.3m 6.99m 4.5m

However, in the UK the market cap for FCR is 2.37m GBP on LSE.

Further, the CZL presentation shows the following (FCR was excluded presumably because they were not a renowned Zinc play at that time). Energia was also renamed Alta Zinc.

I expect once the JORC 2012 for FRC is published for the FCR team to push hard on getting that rerate.


CZL also notes that it has the highest grade Zinc exposure in ASX.  It also has one of the lowest tonnages on ASX and it is Tonnage * Grade that the money men look at for obvious reasons.

Nevertheless it’s an interesting graph and I expect FCR to be right up there come the JORC 2012 release.


And a useful comparison provided by Ironbark is shown below. Contained metal is Tonnage * Grade.

FCR would come in above Heron based on the NI 43-101 alone and before the recent extra exploration drilling. Roll on that JORC 2012!

Note that NCZ is now A$502.9m Market cap and not A$50m market cap when this snapshot was taken…yes – it really has exploded…

Next Steps for FCR Post Jorc 2012

An interesting comparison to make is that of FCR with  Red River Resources listed on ASX. A previous comparison with Alta Zinc was also very interesting!

RVR has a market capitalisation of A$146.9m Aus (It’s breen higher) – equivalent to £85.1m Sterling.



They have a few extra metal credits, but much less tonnage, and likely less high grade than Toral.

History is also interesting – showing a short time from the restart sudy to production:

October 2014

Red River completes acquisition of Thalanga Operations Red River raises A$3.6m (20m shares at A$0.18/share) to fund exploration and restart activities at Thalanga Operations.

December 2014

Red River commences exploration activities at Thalanga Operations.

March 2015

Red River Resources wins Asian Exploration Deal of the Year for its acquisition of Thalanga Zinc Project

October 2015

Red River Resources completes Thalanga Restart Study, highlighting the project’s potential low operating risk, capital cost and operating cost

August 2016

Assays from discovery hole at Liontown East confirm very high grade mineralisation

December 2016

Red River Resources completes $30m capital raising to fund restart of production at Thalanga

September 2017

Concentrate production recommenced at Thalanga Zinc Project, ahead of schedule and under budget

Clearly FCR has some way to go, but with the very high tonnage,  high grade and metal credits available at Toral, and a likely superb JORC 2012 I anticipate some serious movement in progressing a JV to fund the eventual mining.

The JORC 2012 will  need to be exceptionally good. I suspect it is.

FCR is in the position of having near surface high grade Zinc. Working that first and getting cash in will help develop the rest of Toral. And then there’s Lago….one step at a time.




Interesting Mineral Comparison – FCR v Alta Zinc

Alta Zinc’s latest December JORC 2012 estimate:


FCR’s Latest NI 43-101 Resource Estimate

(JORC 2012 due in early 2018) – currently NI 43-101 – 8.7m tonnes



Note: it’s the combination of Grade and Tonnage that are important. FCR has high grade, high tonnage with the expectation from me that this will improve when the JORC 2012 is announced

  • In regards to FCR in 2011  the Zinc tonnage was 514,910 tonnes (262,562 + 252,348)  compared with Alta Zinc 163,000 tonnes (107+56).  That’s three times as much!
  • In regards to FCR in 2011  the Lead Tonnage was 421,732 tonnes (214,416 + 207,316) compared with Alta Zinc Lead of 43,000 tonnes. That’s 9.8 times as much.

And then there’s Silver which hopefully (highly likely IMO) will get a credit in the JORC 2012.

Total Lead and Zinc tonnage is 936,642 tonnes for FCR verses 206,000 tonnes – that’s 4.5 times as much. Now go and do your sums on how much this could be worth…

When you look at the market capitalisation of both companies  it’s the other way around, Alta Zinc is 4 times that of FCR. The new management will seek to rectify this IMO.

And given that the recent drilling found high grade zinc at surface up to 300m which was not previously accounted for in the FCR NI 43-101 and I can see the reason for the excitement about the better than expected results.  I can also see why Colin Bird decided to become a strategic shareholder.

DYOR, IMO, GLA and all that…

Zinc Market and Spanish Acquisition

Interesting video and worth a watch IMO.

Appears way behind the curve compared to FCR .. but already worth a multiple of FCR, but reinforces the opportunity that Northern Spain has in Zinc.

The comments about low depth mining – at or near surface – being low capital intensive to kick things off gets some thoughts running on mobilisation costs post JORC 2012 for FCR.

Interesting comments on a 8.3mt Brazil asset as well.

Interview with Myles Campion

The Vox Markets Podcast today was very good.

Miles appears to be a rare hybrid – very experienced in geology as well as finance and investment. A very good combination to have on the FCR board.

The Toral resource in Spain is clearly a very sizeable asset with an already existing compliant  NI 43-101 resource estimate of 8.6mt @ 10% – described by MC as a very good start.

Miles believes the company is undervalued and states that it is one of the reasons he joined the FCR board to take the asset it to where it should be.  Improving FCR’s market capitalisation was my interpretation. At this point in the podcast I could  not help but think that there needs to be a big economic interest and incentive for Myles and Laurence to push FCR to the limit in the future – and that this will no doubt come in the form of share options once they have got the company on an even keel. Note at this point they are not taking salaries! Brownie points indeed from all shareholders IMO. I hope this gets rectified in the new year.

The Toral asset benefits from an existing NI 43-101 and MC stated the intent to get the Toral asset stamped with a world recognised JORC 2012 resource report. My interpretation is this makes it easier for a wider range of companies, globally,  to show interest in the Toral asset.

In the recent Spain visit, Miles and the independent Addison Mining Services (charged with preparing the JORC 2012) reviewed cores –and discovered further assays – some of which are in the DB some of which are not. These are now being incorporated. My interpretation was that this was good news.

@3:10 in the recording Miles talked about the  Pictures from Laurence on VOX and said core was running at 30% Lead  Zinc-  strewth! – I had to play this several times to see if I heard that correctly! Is this anomalous? Either way he is also pushing the Silver angle and believes the silver grades are also very good and will be good for the asset. Let’s not jump the gun as shareholders, the Zn-Pb asset alone is very good, silver is a nice bonus.

In terms of comparable assets Myles mentioned that both the size of Toral and grade of mineral is very good – and that is’s a very good position to be in. He mentioned comparable assets in Italy – listed companies – e.g. 3.3m tonnes at 6.5% with a market cap 3-4 times FCR (I believe this is Energia quoted on ASX recently renamed to AltaZinc (‘to reflect the business they are now in’) with one asset – the Gorno Project – having a JORC 2012 which is where the key comparison is. Their remaning assets have no NI 43-10 or JORC 2012. We have Toral with 8-9Mt @ 10% (or more?) so go figure! It’s easy maths! For the record, as of 15th December Alta Zinc’s Market Cap is £8.13m and they have a great Zinc story.

Miles also mentioned that Central Asia Metals bought a Zinc asset in North East Macedonia [called Lynx resources] which was ‘similar’ to FCR’s but that FCR have a better grade. The SASA CPR is here. The Toral resource does indeed have superior grades of metal (over double), but smaller tonnage.  However what can be extracted is a function of grade and tonnage and one could argue that it is more efficient to mine higher grade  material!  so we’re getting there through far superior grades. Add in Lago (eventually) and we will likely exceed IMO.  The other difference is that the Macedonia asset is mature, and being mined. Even so, the CAM asset was sold for $400M which probably tells you where Myles head is at! No doubt there will be other mining companies out there who would see the Toral asset as an opportunity to put in best practices and machinery into a former mining area which has the skills and infrastructure to turn this gem into a working asset. Knock off a few quid to set up the mine (I jest) and there is a value in Toral which is way above the current £2m market capitalisation we currently have 🙂 IMO.

Note: The EBITDA for the first 6 months of 2017 for Lynx Resources was 61% (unaudited).  In addition, in 2016, the Lynx Resources Mine – SASA – produced 783,000 tonnes of ore which generated 22,515 tonnes of zinc in concentrate and 28,955 tonnes of lead in concentrate – which I think is about 6.6% overall and we have 10%+.  The SASA mine also has silver  as potentially does Toral. It looks to me like we are heading for a direct JORC 2012 comparison with the SASA mine but without the SASA mining operation.   The SASA mine is also one of Europe’s largest Lead-Zinc-Silver mines – so that gives you an indication of the size of the Toral asset. Maybe Lago will be similar in the future..?

Miles mentioned corporate restructuring activities and efficiencies to come. He said FCR will maintain the AIM listing, will review the other two on ASX and JSE and all operations to create efficiencies and to focus on the asset. My guess is that JSE and ASX will eventually be ditched, operations will regroup into the UK (great for the majority of shareholders and shareholder engagement) . This will likely save a large chunk of cash. He mentioned focusing on the Toral asset – I like it. IMO if the expense does not contribute towards FCR’s mineral assets like Toral or Lago then don’t do it! – be ruthless. In the meantime focus purely on Toral guys…

Summarising, Miles said the FCR Market capitalisation is low, but Toral is a well-advanced big enough asset in the right commodity, in a stable country which will warrant investment and scope for further expansion (which I interpreted as tonnage) as well as possible JORC 2012 silver possibilities which is an added bonus. Miles also mentioned the management team of him and Laurence Read which have done a lot in a short space of time and they will push for further advancements in the company. I believe they can do it.

With regards to the name ‘Ferrum’ I think there was a strong hint that the name will be changed. Anything that ties a company to the name of the resource type is not the way to go in the future IMO.

Given Miles financial and geological background I get the ‘feeling’ Miles knows the asset is better than the already compliant NI 43-101, and is worth a large chunk of money which at the moment is not recognised by the market.  I hope the JORC 2012 knocks it out of the park. I expect it will.

In the meantime I am convinced there are players taking advantage of the low share price, without moving the market whilst sentiment has been low. Hopefully MC and LR are starting to put things right. We shall see. I continue to accumulate. DYOR. IMO. GLA.


Ferrum Crescent – In Summary …Assets speak louder than words…

Having recent successes with ANGS and TLOU both of which have now bagged,  a recovery play that has really caught my attention is Ferrum Crescent. This share has been battered in the past and I could hear shareholder towels being thrown in – not a great place to be. However those that have stayed the course might be in for a surprise. Now with a change of management strategy, and on-boarding of an experienced exec director in the form of Myles Campion, and a recent placing in which Colin Board (of Galileo resources, Xtract Resources, Jupiter Platinum etc fame) managed to get 12% of the company I am of the opinion that it has turned the corner. I have worked with several companies over the years on their strategy and it makes sense to me to onboard an experienced shareholder unlikely to get emotional and sell on a whim. Not all shareholders will be happy but for the record – I am :-). The Toral asset is going to be great IMO

As usual I am accumulating large volumes on a very small number of companies  – as I always do – and Ferrum is one of them.

If there is one video to watch I would recommend this one …

Rather than reinvent the wheel I also saw this posted on III by Dickie3times (great name :-))  – and it’s a neat summary

Ferrum Crescent Limited tells Proactive they’ve now completed a program of six holes at the Toral project in Spain – all of them returning visually identified lead-zinc intersections.

Results as good as hoped “Every hole gave us visual confirmation on lead-zinc intersection and it doesn’t really get any better than that,”

“We will use that and the historical drilling results to see what’s going on at Toral.”

Plans to drill a further three holes have been shelved after new geologist Myles Campion [and now Executive Director – i.e board member] assessed that it has enough information already, with the next phase of the exploration possibly to be to assay some of the historic core.

Historical drilling
“There has been a large amount of historical drilling conducted at Toral which returned significant lead-zinc intersections, and we are now enhancing our understanding of the structure and definition of the deposit in a cost-effective manner”.

“While the assays from the latest drill campaign are submitted and returned over the next six weeks, the company has sufficient information in the meantime to progress with designing the next stages of further exploration at Toral and to examine economic comparators for a potential future lead-zinc mining operation”. “A key focus for our geological team is to assess the possibility of defining overlapping planes of lead-zinc mineralisation concentrated within the project area. I look forward to providing further updates on our progress in due course.”

Visble intercepts
House broker Beaufort Securities noted that Toral currently has a combined (indicated and inferred) resource of 8.7Mt (million tonnes) with a weighted average grade of 10.7% (lead and zinc).

Intercepts of visible mineralisation from all six drill holes within 200 metres from surface suggest the group’s hypothesis of known mineralisation at depth linked to shallow mineralised features is correct.

Ferrum Crescent – Additional Fund Raising via Placing

An interesting development with FCR in that Colin Bird has taken a stake in a private placing.

So who is Colin Bird? See here and here

With regard to Jubilee Platinum – there are interesting comments at 3:15 from the Jubilee CEO  about going into base metals…. https://www.beaufortsecurities.com/jubilee-platinum:-company-update-c-2-p-453

Zinc is mentioned.

The Toral asset is potentially huge in Zinc. I am trying to figure out if there is potential synergy here.

In addition the recent buy-in to a Zinc Project by Jubilee Platinum is coincidental? Or is the Gallileo Resources (another Colin Bird outfit) Zinc exploration in Zambia coincidental? Both are JV’s with BMR Group …

I just don’t think it’s a coincidence 🙂 It’s a strategic move on Zinc assets IMO.

And one last thing, JIM Nominees Ltd who recently declared a 4.55% holding in Ferrum Crescent .. well they also own 4.42% in Jubilee Platinum and 3.95% in Galileo Reources… coincidence no doubt.

Interesting times ahead for Zinc and for Ferrum for sure.

Ferrum Crescent Ltd

Not for widows and Orphans and plenty of Due Diligence on your part is required!

However, this one has me interested again. Why?

I suppose some new management who look like they know what they are doing always helps!

In addition, a recent TR01 of a holder who has gone from 0.5% to 4.5% makes me step back and ask even  more questions and I find that recent drilling activities are looking like they will bear fruit – this is a change from about a year ago. Selling off assets no longer of interest is also a prudent measure.

One thing thas has clicked with me is the fact that the recent drilling at Toral is looking at historic ‘overlooked‘ Lead Zinc Mineralisation and given the excitement aeound the findings I can see why Ferrum is now full steam ahead to get a JOC 2012 estimate which will include the tonnage found in previous report  ( NI-43 101 compliant) PLUS the new stuff… !

This is interesting https://www.voxmarkets.co.uk/activity/78594/ .. and

Some interesting video’s – worth watching one by one….



As a result I have taken a large position and will continue accumulating.


I expect some up’s and down’s for sure. Maybe it will be a buckaroo share as games always come to shares that show promise IMO. I’m holding on.