Locksley Resources Limited (ASX:LKY) IPO Listing- Corporate Showcase Interview
Our Director of Corporate Finance, Tim Wilson, interviewed Steve Woodham, the Founder and Managing Director of Locksley Resources Limited (ASX:LKY).
Locksley Resources Limited is an Australian exploration company incorporated in October 2018 for the purposes of identifying and assessing resource opportunities within Australia.
The Company is focused on the acquisition, exploration and development of mineral resources projects which have the potential to deliver significant growth for Shareholders.
Locksley Resources has recently entered into a tenement sale agreement to which it has the option to acquire a 100% legal and beneficial interest in the highly prospective Tottenham Project.
Read the corporate showcase transcript below:
"This is Tim Wilson here from Barclay Pearce Capital. I'm talking with the Managing Director and Founder of Locksley Resources. Steve, thanks for joining me. We're just going to look into a few of the things to highlight Locksley Resources and why it’s an appropriate company for investors that are looking for exposure to copper.
So Locksley Steve, I think you can tell me, has been around for a short time, but it was created for one purpose, and that was copper. Do you want to talk about the background of Locksley? And a little bit more about the Tottenham project, which is Lockley’s flagship asset."
"Thanks Tim. Locksley was incorporated in 2018 for the purpose of acquiring and developing copper and gold projects in the Lachlan Fold Belt of New South Wales. The Tottenham project was identified as being a project that had quite a significant amount of money spent on it over the years by a company called Mincor Resources (ASX:MCR), a successful nickel mining company in WA, working out at Kambalda.
This project represented a non-core asset for that company. We subsequently dealt the project into Locksley by the issues of some shares to Mincor. We view the project as potentially, a copper mining project with a previous historic resource of around 7 million tons at over, 1% copper. So we're very lucky to have a project and it'll be our main focus and it is the only project within the company."
"Well, that's good to Steve. Thanks for that. So look, you're in the Lachlan fold belt, while you say it is a one project company, there are many other competitors around and also within Locksley, there are quite a few tenements and targets. Do you wanna talk about that a little bit?"
"Yeah. So outside of the resource itself, or, exploration target is what we refer to it as, there are a number of exploration targets, mainly magnetic features that had not been followed up by previous explorers.
The Cobar region itself is a prolific producer of copper. With a number of producing mines, and the number of very large companies operating in the area. A good example of some operating assets nearby is in the Cobar region in Glencore called the CSA copper mine, it would be the highest grade project in Australia. It's produced over a million tons of copper metal at above 4%.
Copper has a current resource of around 15 million tons at 4%. That's the Glencore Project. There's also the Tritton project, which is just west of Nyngan owned by Aeris. This project has a resource of over 15 million tons at over 2%.
There's another project owned by Aurelia at Nymagee, which will be over 8 million tons at 1%. So it's a prolific region and our project sits within that geological area. And with our current resource, it represents a very strong case for mining into the future."
"Great. So what are the sort of 6-12 month targets or milestones we can expect out of Locksley post-listing today?"
"Yeah. Priority number one is to move that exploration target into a 2012 JORC compliant resource, which we believe we will complete before the end of the year.
As part of that process, we'll be doing a complete review of the Mincor database. A systematic review of all the geophysics as part of that work, obviously the drill rig will keep moving along through the project, until the end of the year, so the drill rig should be onsite within two weeks. The 2012 JORC compliant resource really needs to be defined into both oxide and sulphide.
That's my main amount of work, is really categorising the resource into oxide and sulphide. So that's our main priority. On the sideline would be, we'd be following up some of those exploration targets that I mentioned before."
"Steve, that all sounds good. From the historical drilling, are there any intercepts that stand out, which you do more following up drilling with? And anything else outside of the main area of prospectivity that tickles your fancy?"
"Yeah, look a couple of the better intercepts within the resource of Carolina standard, 20 meters at 2.1% copper, at about a half a percent gold. There's nine metres, and 2.5% copper. There's 4.2 meters, nearly 6% copper. So there's quite a few high-grade zones within that Carolina target.
And then outside of the known resource, some of the better undrilled targets, probably the best one of those would be the Bogan river prospect. With a very limited amount of drilling, probably the intercept in there would be 23 meters at over 3% copper. So there’s lots, plenty of upside on this tenement and outside of the resource itself."
"Well, that's fantastic. Seems like a good couple of months for Locksley. Just really quickly Steve, do you have any views on the thematic and price of copper and where it might be heading?"
"Yeah, I have a very positive view on the copper price moving forward, I think the overwhelming demand in the near term far outweighs the limited supply.
There's not a huge amount of large copper mines being developed at present. Yeah, renewable sectors, going to drive the copper price from here on. Currently, the copper price stands at about $12,000 Australian per ton, which is close to double over the last few years of what we’ve seen. So yeah, look I've got a very positive approach."
"And plenty of room there for it to move up, with the whole renewable industry moving forward.
Finally, look you've got a lot on your plate with Locksley. I think you've got a board and management team that should be capable to do all this. Do you want to just give me a quick background on yourself and your mining engineers or operations guys?"
"So I have over 30 years experience working in the Lachlan Fold Belt, built on a number of different projects.
We've had quite a bit of success over the years in discovery, in both copper and gold. We’ve had an exploration team here in Orange led by Ian Cooper, our Operations Manager, who is a geologist and engineer. He's got over 40 years experience in exploration in the region, including working with, Cadia deposit owned by Newcrest. So we have enough experience within the group to do this project justice."
"Fantastic. Steve thanks for your time. Looking forward to seeing this company list, and Barclay Pearce is very much looking forward to supporting you over the next, hopefully, long period. So thanks again, and we'll see you on the other side of the listing."
Learn more about Locksley Resources Limited here.