Siburan Resources (ASX: SBU) has received a speculative buy rating from a research house.
The following is an extract from the report.
Siburans' priority is the Kirwans tungsten project, located on the South Island of New Zealand. The tenements are still under licence application however it is anticipated a formal granting of the exploration licences will occur before the end of March 2012.
Previous early stage exploration at Kirwans identified scheelite bearing quartz veins from trench samples which assayed up to 76m @ 0.17% WO3 and 35m @ 0.34% WO3.
Further interpretation of soil samples indicate this mineralisation could extend 1,400m along strike by up to 600m wide. Once the exploration licenses are granted, Siburan will conduct a drill campaign aimed at testing the strike and depth extensions of this prospect.
Should a meaningful resource be defined, this would likely have a significant effect on the company valuation.
The Mt Pleasant gold project hosts 10 identified prospects located along four structural trends. A recent RAB drilling program further identified two mineralised structural 'corridors' and may represent the 'halo' or 'signature' of a an ore body at depth.
Siburan will continue with RAB drilling programs targeting the north of the 'Central Corridor' where mineralisation remains open along strike.
Siburan expect to commence deeper RC and diamond drill campaigns one the structural controls of the anomalous mineralisation are better understood.
Siburan also has large tenure around Lake Marmion which is prospective for uranium mineralisation. Ongoing geophysical work and shallow aircore drilling is targeting palaeochannel/sedimentary type uranium deposits similar to the nearby Mulga Rocks deposit (10.8Mt @ 1,400ppm U3O8.).
The newly acquired Gascoyne project is located in the Gascoyne province, north east WA. The project comprises of 3 exploration licences, prospective for lead, zinc and copper, with a total land holding of 78km2. Exploration work is at an early stage however a recent soil sample program has highlighted anomalous base metal path finder values.
Siburan intend to conduct an airborne geophysical survey over the tenure to better understand the geology.
Research house view
The reliability of future supplies of tungsten minerals is of concern to many nations.
China's dominance in the tungsten market and its moves to restrict exports and increase imports of tungsten concentrates sends a clear signal to the research house of a tightening market with the likely effect of strong APT prices.
Tungsten is a 'strategic' and 'critical' raw material and with worldwide demand increasing and with few mines coming on line outside of China. The research house is confident the tungsten price will remain robust for the foreseeable future.