Editor: Re-Transmitting 1. Eliminates Heavy Digital Files; 2.Adds Cambodia Ghetto Photo -- Andrea Aasen of XP Ministries today at riverside Phnom Penh slum
April 14, 2014
A tiny -- I mean shrimp-size as in 1.5 cents-a-share
Australia minerals prospector -- is prepping several explorations programs Down Under. At least one of them will use a so-called T yphoon-technology approach for IP and EM geophysical surveying.Those looking to combine technology with a crater-priced down-under equity will keep reading. Others will skip to the close of this report for an alternative path into this privately held Typhoon technology.
We capitailze Typhoon system, which operator HPX Technologies/HPX Exploration has trademarked since the company's 2010 formation.
HPX, privately held, says its next-generation geophysics result in "cleaner" signals from beneath the earth, largely in Chile, Namibia, Australia and the DRC Congo.
Apollo Minerals (AON:ASX) is the tiny piece of this Typhoon. Apollo and principals tell me the shares soon will be actionable. Or at the very least, safe from assault at this penny dreadful price. We will let the market determine that. Fresh exploration plans: announced Monday in Asia. Australia trading this morning sees a 6% decline in AON shares thus far -- on an $8 up day for gold elsewhere in Asia. [I am in SE Asia, three hours earlier than Sydney, Australia, time.]
Richard Shemesian, Apollo's founder, is a lawyer and a mostly reliable prospector promoter in a country that has about the same carnival barkers per capita as Vancouver, Canada. Richard is a member of our TCR family, and he has been flashing me about Apollo developments since HPX graced his company with capital and technology earlier this spring of 2014.
I say mostly only because a week ago, he was telling me the shares looked plenty cheap at 2 cents Australian. Now they can be bought for about 1.5 cents. I can see where he is coming from, to be fair. In the past five years, the stock was as rich as 40 cents. Now at a $7 million Australia market capitalization, Apollo sports a valuation that probably does not reflect a few million dollars of HPX capital coming in.
I'll save you clicking Richard's bio link. Mr. Shemesian says about himself:
Richard grew up knee deep in his father’s mining prospectuses and spent his school holidays working in gold mines in the Pilbara of western Australia.
In two of his most successful deals, Mt. Gibson took over Aztec Resources (market cap $3m) for $300m,and then Toronto-listed Mega Uranium (MGA:CA) took over Redport (market cap $2m) for $125m.
His company, Apollo Minerals, recently joined forced with HPX, a private exploration company controlled by mine Robert Friedland, to prove up Gawler Craton in South Australia as a copper-gold frontier.
Mr. Shemesian tells me the looming HPX-induced polarization survey might be the largest ever using HPX's Typhoon approach.
TCR family, if something positive happens with this Apollo-HPX combination, it will happen in the next several months.
Nitty gritty: HPX will make an equity investment of $1m at $0.02 per share, with an option to make a further investment of approximately $1.4m by 30 June 2014 at $0.024 per share. HPX can provide up to $3.4m of funding to earn an 80% interest in Apollo’s south Australian licenses, under the joint venture to be known as the Commonwealth Hill Joint Venture.
Here is Apollo's share profile:
Apollo also has two discovery campaigns south of that HPX joint-venture area: Mars-Aurora and EagleHawk.
Some folks in SE Asia and in Canada (and in Africa; and in Monaco) tell me I might be approaching the HPX angle backside in. That I might begin to look at HPX's technology a priori of the companies HPX is getting exploration land on which to unleash its Typhoon.
Apologies if I am; everyone knows I back into everything with my enormous rear-end.
HPX for its part says its Typhoon and attached gadgetry generate high-quality geological predictions of the sub-surface. Our proprietary in-house geophysical technology has capabilities that make it possible to revisit areas previously explored," HPX's boilerplate says. A high signal/noise ratio enables deeper prospecting that current tools, HPX claims.
Now if I were writing copy for HPX, I likely would consider a line that discusses previously explored mineral areas. After all, well more than half of all the world's prospectors are scrubbing land already scrubbed for gold, silver, iron ore, copper, and so on.
I might purchase Apollo Minerals at 1.5 cents, if I can. But I am glad to own another company using HPX technology.
That's Kaizen Discovery (KZD:CA), whose 40-something Japanese speaking attorney and financier Matthew Hornor in Vancouver is searching for industrial/specialty metals or platinum-group metals projects in or near Asia's so-called Ring of Fire.
See Kaizen: www.kaizendiscovery.com/s/technology.asp
One hopes he will consider Cambodia.
TCR audience knows:
I spoke with Mr. Hornor a week or so ago. I actually own the shares two ways: purchasing KZD shares in the open market in Canada and via my previous Concordia shares.
Kaizen's read on HPX might be better than what we can garner from the HPX home site on the Internet.
HPX's technologies have been developed to facilitate rapid and deep electrical geophysical exploration in areas that have proved extremely difficult using conventional technologies. These include high-power and high-signal specifications, facilitating high signal-to-noise ratios. This allows accurate inversions to identify prospective targets. Both induced polarization and electromagnetic modes are available, enabling exploration for disseminated and massive sulphides that usually would require separate transmitters.
HPX, or HPX TechCo, in return for its services and talent, gets its own exploration costs covered and receives from Kaizen a 12 percent management fee. I imagine there is an equity component to some of HPX's corporate relationships, but right now, we shall leave it at that. I shall be watching Apollo and Kaizen and peppering my Aussie colleagues about all this down-under IOCG exploration. One of those Aussies, Richard Stanger of New South Wales, lives part time in Cambodia and was in part responsible for Cambodia's adopting New South Wales regulations and guidelines for Cambodia's Ministry of Mining & Energy.
Mr. Stanger, a member of the TCR family, also is a co-founder with Michael Weeks of Angkor Gold ($ANK:CA), the looming gold producer and largest holder of licensed mineral concessions in the Buddhist nation. ANK is a member of the TCR 8 and will be, after a small group of us tour some of the slums of Phnom Penh today, on Khmer New Year's, our next stop in Ratanakiri Province some 300 kilometers to the northeast of booming Phnom Penh. [It’s my fourth tour of the exploration concessions owned and operated by Angkor Gold.]
Part of our Cambodia tour includes tours of Phnom Penh and rural slums, clinics and schools -- see photo above; later this week -- more about Desert Star Resources ($DSR:CA) (see Ceo.ca for latest; also Angkor Gold; note please that I own both.)
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