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Hexagon Energy Materials shifts focus to opportunities in clean energy and mining sectors

Snapshot

As part of a shift into new clean energy opportunities, which includes hydrogen and existing exploration assets, it will conduct due diligence on Ebony Energy's Pedirka Hydrogen Project.

Hexagon Energy Materials Ltd - Hexagon Energy Materials shifts focus on opportunities in clean energy and mining sectors

Quick facts: Hexagon Energy Materials Ltd

Price: 0.064 AUD

ASX:HXG
Market: ASX
Market Cap: $18.72 m
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Hexagon Energy Materials Ltd (ASX:HXG) (FRA:F93) is pursuing new opportunities in the clean energy sector while maintaining its focus on existing opportunities in the mining sector. 

As part of this shift into new clean energy opportunities, Hexagon has signed a confidentiality agreement with Ebony Energy Ltd to conduct due diligence on Ebony’s Pedirka Hydrogen Project in the Northern Territory.

Hexagon also has two exploration-stage projects in the Kimberley region of Western Australia - the Halls Creek (gold and base metals) and McIntosh (graphite, nickel and PGE) projects.

Pedirka Hydrogen Project

Pedirka is planned to be a zero-emission ‘blue’ hydrogen project targeting domestic and international markets and ties in with Hexagon’s strategy to progress value-added businesses that are consistent with its focus on clean energy.

Hexagon is well advanced with due diligence and has formed a good understanding of the project.

The next steps required to complete a pre-feasibility study include a significant exploration drilling program seeking to establish a mineral resource estimate in accordance with the JORC code.

In tandem with its due diligence, Hexagon is in talks with Ebony Energy on the form, structure and terms of a potential transaction.

There is strong interest and enthusiasm from both sides to thoroughly assess this opportunity and progress to a positive conclusion.

McIntosh project update

Hexagon has continued work on its McIntosh project and based on reprocessing of historical geophysical and geochemical data, it has identified numerous targets prospective for nickel and platinum group element (PGE) mineralisation.

It is continuing to develop these targets and a fieldwork program for 2021.

The nearby Panton PGE deposit, owned by Panoramic Resources Ltd (ASX:PAN), is currently under offer for $15 million for a 100% interest.

It lies immediately adjacent to Hexagon’s tenements with several PGE targets identified within similar geological units.

Hexagon will provide further updates as these and the prospective nickel-copper targets are further developed.

As well as site inspections, site activities in the past few months have included rehabilitation of recent and legacy exploration activity.

New gold anomalies at Halls Creek

Hexagon has defined new gold in soil anomalies at two of the three prospects soil sampled in July 2020 at the Halls Creek project, with assays for the third prospect, Calibri, pending.

Gold in soil anomalies were defined over lengths of 1.4 kilometres and 3 kilometres at the Golden Crown South and Bent Ridge prospects, respectively.

Halls Creek region is known for high-grade gold deposits such as those being mined by Pantoro Ltd (ASX:PNR) at the Nicholson’s Find Gold Mine.

The historical Butchers Creek Gold Mine is less than 1-kilometre to the west of Hexagon’s tenements and the new Golden Crown South prospect is being drilled by Meteoric Resources NL (ASX:MEI).

Managing director Mike Rosenstreich said: “These initial results for the first two out of the six higher priority prospects are highly encouraging as we advance towards gold discovery and we are excited to forge ahead with further new target areas over the coming month.”

Several of these anomalies are ‘open-ended’ and additional sampling is required to determine the extents as well as to infill the existing wide-spaced sample intervals.

Hexagon has received approval for four program of work applications including for Bent Ridge and Golden Crown South drill programs.

Timing of drilling depends on the availability of drill rigs. A previously ‘secured’ rig could potentially be delayed, precluding Hexagon from drilling due to the impending wet season.

Despite this, the company plans to complete further surface sampling work to scope out the extent and better define new anomalies ahead of an initial drill program.

This delay could also result in the drilling expenditure for the Bent Ridge prospect being supported by the State Government’s Exploration Incentive Scheme, which Hexagon has applied for.

Under these circumstances, the company would receive the delayed soil results from the Calibri prospect, complete the follow-up sampling and then undertake a larger, better-defined drill program at the end of the wet season in April 2021.

This is still to be finalised - all being subject to rig availability and target definition work.

Shift away from rare earth

Hexagon has decided not to move forward with its rare earth project.

It has not agreed terms with a strategic investor for the option to acquire a 49% interest in the RapidSX for rare earth element separation technology from Innovation Metals Corp.

As such, Hexagon has decided to withdraw from the investment agreement with IMC.

Hexagon chairman Charles Whitfield said: “While shareholders may be disappointed that we will not be proceeding on the rare earth processing path, we are very excited by the emerging new energy opportunities and the potential upside in the company’s existing exploration prospects.

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on 1/5/20

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