Battery Age Minerals (ASX:BM8) is buying the El Aguila Gold and Silver Project

Battery Age Minerals (ASX:BM8) has diversified its portfolio even further, buying the El Aguila Gold and Silver Project in Argentina. Here’s a rundown on the purchase and what it means for the company, including its ambitions with Bleiberg.

 

A rundown on El Aguila

BM8 has executed a Farm-in Agreement with Fredonia Mining (TSX-V: FRED) for the El Aguila project in Argentina’s Santa Cruz Province. El Aguila is adjacent to 5 operating gold and silver mines and lies in a mineral-rich province. Santa Cruz produced 680,000 ounces of gold and 15,227,000 ounces of silver. The most notable mine is AngloGold Ashanti’s Cerro Vanguardia mine which produced 152,000 gold and 4.4Moz silver in 2023. Another is Pan American’s Cerro Moro mine produced 84,000oz and 3.5Moz silver.

El Aguila project is in a flat terrain, making it easier to access and explore compared to more mountainous areas. The excellent physical access to the site enables efficient exploration activities and reduces logistical challenges. Additionally, the region has well-established mining infrastructure and skilled workforce. These factors, make Santa Cruz an ideal location for resources exploration.

The project has several different mineralisation styles. Over 100 high-grade surface samples have been recorded over the main target areas including results as high as 44.2g/t gold and 4739g/t silver at Aguila Main and 174.58 g/t gold and 327 g/t silver at Aguila South. BM8 has confirmed high-grade mineralisation during due diligence of its own. Three drilling campaigns have been completed, consisting of 62 drill holes for a total of 8,009 metres. Key drilling results include:

• DDA-08: 48.68m, 0.55m @ 40.55 g/t gold, 107g/t silver
• DDA-25: 42.35m, 7m @ 2.48 g/t gold, including 1.7m @ 9.02 g/t gold & 51 g/t silver
• DDA-42: from 299.38m, 2.87m @ 5.93 g/t gold
• CRC-01: from 92m, 22m @ 0.94 g/t gold, including 2m @ 3.14 g/t gold & 62g/t silver.

 

BM8’s plans with Aguila

BM8 plans to begin early-stage exploration work immediately and beginning drilling in the second half of 2025. Prior to a drilling campaign, the company’s activities will include the following steps:

• Mapping & interpreting the structural setting of the project,
• Integrating existing geological data with additional mapping and prospecting efforts,
• Combining surface and subsurface data into a cohesive 3D model to enhance target identification and definition,
• Soil sampling along the strike of Aguila South and Aguila Main targets, followed by trenching on identified gold and silver anomalies.

The terms of the agreement that has been signed between BM8 and Fredonia (the current owner) provides for an initial 51% interest following BM8 paying US$75,000 in consideration and spending US$1.85m in exploration expenditure within 36 months from settlement of the Agreement. BM8 can acquire a further 29% interest (to take its total stake to 80%) with a US$100,000 cash payment to Fredonia and spending US$950,000 for exploration purposes within 48 months from settlement of this Agreement.

Upon the latter Stage occurring, Fredonia may elect to form a formal 80-20 joint venture or convert its 20% interest into a 3% net smelter returns royalty, which would see BM8 own El Aguila outright. If Fredonia chooses the latter path, BM8 has the right to purchase 50% of the royalty (1.5%) by a US$500,000 cash payment to Fredonia.

 

Gold and ‘Poor Man’s Gold’

El Aguila diversifies and strengthens BM8’s portfolio through exposure to a proven jurisdiction in Argentina and exposure to gold and silver. Gold is practically the only commodity that has boomed in the last couple of years. Gold prices rose 25.5% in 2024, which marked its best performance in 14 years.

This was because of its role as a hedge against the heightened geopolitical uncertainty and market volatility. The return of Donald Trump to the White House is likely to aid the cause of gold in 2025.

Of course, silver cannot be overlooked. It has commonly been termed ‘Poor Man’s Gold’ but it is an important commodity, used in jewellery, silverware as well as in industrial and technological applications – including electric vehicles and solar panels. Silver prices gained 21.46% in the 12 months ended December 31, 2024.

This is because the end markets for silver has grown, but unlike other decarbonisation-exposed commodities (like lithium) supply has not kept up. The silver deficit is not large, at only 1% according to the silver Institute, but this gap could widen in absence of new mine discoveries or expansions.

New silver deposits could be significant money-spinners for companies that bring them online. Even though El Aguila is unlikely to be in production for at least 5 years, it would not be unreasonable to expect investors giving BM8 a close look if it can validate the existing exploration data and work towards and eventual goal of having El Aguila as an operating mine.

 

So is Bleiberg no longer relevant?

Bleiberg is still important – in fact there has been progress made there of late. Just to jog investors’ memories, it is in Carinthia, Austria and had been an operating mine for 700 years with its closure occurring due to low metal prices and the bankruptcy of the mine’s owner at that time.

Over its history, Bleiberg is believed to have produced at least 2 million tonnes of metal with an average grade of 5% zinc, 1% lead and 200 ppm Germanium but there is no formal resource estimate covering the ore which remains. Battery Age Minerals intends to establish such a resource and then work towards development the project with a focus on germanium.

Germanium is a critical mineral because of its many uses, particularly in semiconductors.

Like many other critical minerals, China controls the supply chain, and there is a push to establish a Western supply chain. But unlike metals like lithium and Rare Earth Elements (REEs) which have deposits prospective for these elements, germanium is rare to come by as it only occurs in certain lead-zinc mines.

There are no producing mines right now and the last one with relatively substantial production (the Apex mine in Utah, which was the first mine in the world to be operated primarily for germanium and gallium) closed in the mid-1980s. Also unlike other critical minerals, China has imposed specific export controls on germanium – a step it took in 2023 which took exports to a standstill for a couple of months. Even though China has resumed exports, it requires specific approvals and has been quicker to resume exports to favourable jurisdictions. This suggests that Bleiberg can potentially be very valuable if it has a substantial germanium resource that can be extracted economically.

 

BM8’s progress at Bleiberg

BM8 had a breakthrough moment in an early-stage exploration program program, in identifying germanium at an atom abundance of 7.41% in sampling taken from historical mining and beneficiation operations.

Preparations are underway for the 2025 exploration campaign – including the submission of its maiden drilling permit. The purpose of upcoming drilling will be to explore the potential extensions of known mineralisation as well as the ‘West Extension’. The company continues to engage positively with local stakeholders including the Bleiberg and St. Stefan’s Mayor’s offices, the Austrian Forestry Company, and the Austrian Mining Authority. Introductory meetings were also held with private landowners, drilling companies and potential contractors.

BM8 has also expanded its project area from 80km to 142k, opening up exciting exploration opportunities along a 26km stretch. This makes BM8 one of the largest holders for germanium-prospective tenure in Austria. Further, the company secured a further 290km² area 60km to the east of Bleiberg – the Hochobir Zinc-Lead project. This area consists of 600 exploration claims and are prospective for Lead-Zinc-Germanium mineralisation. Although this area has not hosted historic mining operations, there has been exploration work that has suggested mineralisation – with historic grades of up to 900g/t germanium.

BM8 has until late 2030 to complete a JORC-compliant Definitive Feasibility Study (DFS) in order to take its 51% stake to 80%.

 

Plenty of upside potential

It is too early to put any value on El Aguila, at least not until a formal JORC Resource is defined. But it goes without saying that shares could re-rate significantly if there is exploration success at El Aguila as well as Bleiberg. Investors interested in more about this company should check out some of the reports written by our friends at Pitt Street Research.

 

Battery Age Minerals is a research client of Pitt Street Research.

 

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