Hill End Gold Ltd’s Share Price Jumps 40% After High-Grade kaolin Mine Discovery

At the time of writing, shares of Hill End Gold Ltd [ASX:HEG] are up by 40.3%, to 8.3 cents, in today’s trading. Hill End Gold owns potentially the best kaolin project in Australia, which it will use to make high-purity alumina (HPA). The project is located near Ballarat, Victoria, where kaolin mining and processing has continued for decades.

What happened to Hill End Gold Ltd’s share price?

There were two media reports written about the company today. It appears the punters are catching onto the story.

Mike Ware, the company’s chief geologist, found the nearby high-grade kaolin Imerys mine, which has been operating for more than 30 years. He knows more about the region’s geology than anyone else.

That includes Hill End Gold’s kaolin project.

Tolga Kumova and Tom Eadie (Chairman) are also part of the team. You may recognise their names — they’re the founding directors of Syrah Resources Ltd [ASX:SYR]. They built Syrah Resources from nothing into a $1 billion-plus graphite giant.

Are they back to do it again? We believe the answer is yes!

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Kumova and Eadie sold the kaolin project to Hill End Gold. But they didn’t just sell it and run. It’s worth billions. That’s why they decided to take shares and buy more on the market. Eadie owns more than his fair share of stock and is the company’s Chairman.

Tolga owns about 5.5% of the company.

It’s no surprise why, either.

The Yendon high-purity-alumina (HPA) project in Victoria could be a monster and make shareholders a fortune.

Could Hill End Gold Ltd shareholders profit by 2022?

Here were the results for the latest pre-feasibility study (PFS):

Hill end Gold pre-feasibility study
Source: Hill End Gold

Hill End Gold’s Yendon HPA project should generate $133 million at $25,200 per tonne each year. That’s not bad. HPA is used to produce LED light bulbs, semiconductors and lithium-ion batteries. The total demand was estimated at 24,700 tonnes last year ― up from 16,400 tonnes in 2013. The question has become, how will the company finance itself over the next few months?

The company plans to sell its gold project. They could net millions of dollars, as well.

It’s still early days for shareholders. But if the company can sell their gold projects for a tidy sum and fund the definitive feasibility study (DFS), shareholders could make a lot of money by 2022. That’s when the company plans to start producing battery-grade high-purity alumina ― a sector significantly overlooked by the market.

Jason Stevenson,
Resources Analyst, Markets & Money

PS: Interested in mining stocks? My free new investor report, ‘The Top 10 Mining Stocks for 2018’, does exactly what it says in the name. I look at 10 companies that could make you huge money this year, and beyond. To download that report free, go here.


Jason Stevenson is Markets & Money’s resource analyst. He shares over a decade’s worth of investing and trading experience across resource stocks and commodity futures and options. He originally studied accounting and finance at Curtin University, where he was awarded a first-class honours degree. His professional background stems across high-net-worth, top tier accounting (corporate finance, tax and auditing), and sell-side equities research. Before joining the team at Markets and Money, Jason worked at boutique firms which advised fund managers and high-net-worth clients on where to invest. Whether it’s gold, crude oil, copper or an obscure metal like vanadium, you can rely on an in-depth analysis in Markets and Money. Jason also brings you extensive macro, political and geopolitical analysis from around the world. He leaves no stone unturned when it comes to telling the truth. Jason is also the lead analyst of Gold Stock Trader, a premium service for investors serious about precious metal stocks. Websites and financial e-letters Jason writes for:


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