Yesterday, FinnAust Mining informed that it has appointed Mr Peter Waugh and TZ Minerals International Pty Ltd (TZMI) to help in the development of Pituffik titanium project in Greenland. The work completed on the project till date has shown top quality assets in terms of heavy mineral grade, the report informed.
Beaufort Securities view: The appointment of Mr Waugh and hiring of TZMI are important steps undertaken by FinnAust as it will enable it to quickly assess the project’s near-term production potential. TZMI would initially work on leveraging important mineralisation elements such as grade, volume and composition. This would help in creating cost-effective development scenarios that would be measured by FinnAust. In addition, the company would benefit from Mr. Waugh’s extensive experience in the global titanium dioxide pigment industry. He would assist in end-user and off-take arrangements, along with metallurgical management and advice. FinnAust recently reported positive results from an offshore survey conducted at Pituffik. The results indicated significant titanium volumes extending over a large area, which further enhanced the potential resource base. We look forward to the developments related to the Pituffik project. In light of the above argument, we maintain a Speculative Buy rating on the stock.
