Projects } TBK Capital

Invest in the Battery Goldrush – and get the Gold now!

Much has happened since we first introduced the Southland Silica Offer to subscribers of our newsletters. This is to raise up to $4,400,000 by the issue of ordinary shares in the two companies owning the mining and exploration permits for Silica and Gold.

Much has happened since we first introduced the Southland Silica Offer to subscribers of our newsletters. This is to raise up to $4,400,000 by the issue of ordinary shares in the two companies owning the mining and exploration permits for Silica and Gold.

The expectation now is that Southland Silica is going to see the immediate underlying value for the Company will be through the mining of Gold. So, the intention is to raise an initial $500,000 for 25% of the shares in the companies to accomplish early revenues from that source.

I’m about to send a copy of the revised IM to those of you who had already shown an interest in participating in the Offer. However, as this more immediate source of revenue may now make this Offer more attractive, you may well be interested in a copy too.

Climate change

Furthermore, there may now be more of you who would like to look at this business, as the result a new report just released from the UN on Climate Change.

This shows while countries are bending the curve of global greenhouse gas emissions downward, these efforts remain insufficient to limit global temperature rise to 1.5 degrees Celsius by the end of the century. And that the combined climate pledges of the 193 Parties under the “Paris Agreement” could put the world on track for around 2.5 degrees Celsius of warming by the end of the century.

It also shows an increase in emissions - compared to 2010 levels - of 10.6% by 2030,

The Battery Goldrush

The best strategy right now is to focus on the long-term trends reshaping our lives. Morgan Stanley aptly summed it up in a research note just a few weeks back by saying we need batteries. Everywhere, including New Zealand.

The purpose of their research was to illustrate the world is about to embark upon a battery spending boom over the next decade, as countries and companies need to produce enough batteries to power future trends. Batteries will be the epicentre of our tech-dominated future.

Demand is expected to increase at exponential rates in the 2020’s. But there’s not an infinite supply of batteries. And if anything, there is a supply shortage today. Therefore, there is going to be a battery spending boom over the next decade, and companies along the battery manufacturing supply chain will make a lot of money. There will be a “Battery Gold Rush.”

Silicon Anode Batteries

The recently developed silicon anode cells can charge batteries from 10% to 75% in 15 minutes, over 600 times, without the plating of lithium or battery failure. Competitor products require added compression and extra lithium to enhance the lifespan of chargeable batteries.

The scalability of silicon Li-ion batteries is enormous. They are produced on industrial solar and glass manufacturing equipment, already in use worldwide, at volumes of millions of square meters per year. The market is huge.

Robert Anstey, founder, and CEO of GDI, says “The future of Li-ion anodes is silicon. GDI is achieving three critical objectives; full substitution of silicon for graphite/carbon in Li-ion batteries, using a massively scalable domestic manufacturing method; and achieving industrial relevant cost to performance targets.”

Gold there too!

An important discovery has arisen as a consequent of a recent drilling program, and it shows an imminent profitability of the Waimumu Stream gold mining operation.

On the back of rampant global inflation, and a looming financial reset, many say we should all be thinking about rejecting the use of adjusting currencies to determine prices - and using real, legal money - which is gold.

Whatever your thoughts for the future, this is both timely and convenient for Southland Silica’s’s immediate profitability. This is a result of a drilling program conducted late last year. The principal purpose of which was to extend the ore reserve of the Waimumu Quartz Gravels.

They have always known there is coarse gold there, but what they weren’t expecting was the four holes analysed so far contain an average grade going plus 500 mg/m³ over a 10 metre intersection.

One hole contained an average grade over 10 metres of 900 mg/m³. Another encountered a 5 metre intersection running 720 mg/m³. And the last hole they had analysed showed an astonishing 2 g/m³ over 15 metres.

Long term permit

New Zealand Petroleum and Minerals has just extended their mining permit, MP 52577, for 10 years. One of the conditions of the extension is that the company process gravels at the rate of 50,000 m³ per annum.

So at the grades mentioned above, and with no overburden, this promises an extremely profitable operation.

To put that grade into perspective; on the Discovery Channel gold mining series, Goldmine Alaska, the crews on that show move 10 to 15 m of overburden for 3 to 5 m of pay dirt with an average grade of 100 mg/m³.  The Gore Piedmont Gravels analysed in this exercise have no overburden.

Southland Silica must now delineate the boundaries of the glacial outwash high grade fluvial system. This area, not unsurprisingly, is where Mining House drilled, and the Waimumu Sluicing Company shafted, in the 1930s. Their strategy is to take 200-ton trenching samples from the areas defined by the drill program, which appear to have the potential for commercial productivity. 

And it’s New Zealand too

Following are the comments made in a report authorized by the New Zealand Environmental Climate Change Commission:

"To reach net zero and secure a more sustainable future, the 2020s is the critical decade. With decisive early action and rapid transformation, the sector can achieve close to 100% renewable electricity by 2030 and abate 22 million tonnes of CO2-e annually by 2050.

“More flexible, supply-side resources are needed to be added to the pipeline and this is likely to occur as storage costs improve. To achieve peak demand by 2030, we need 1.1 GW of new supply-side peaking resources using batteries by 2030. There are 1.3 GW of resources in the pipeline but 1.1 GW of this is q early concept stage.

“It is likely that some early-stage projects will be developed, and new projects will emerge as the cost of storage declines rapidly."

Further information

It’s not that often one gets an opportunity to support and invest in an exciting business like this. For a copy if the IM simply reply to this newsletter, or feel free to give me a call.

The above investment is not an offer of financial products that requires disclosure under the Financial Markets Conduct Act 2013 (Act) and is available only to wholesale investors as defined by that Act. It is intended for distribution only to selected people to whom, under the relevant laws, it can be lawfully distributed. It cannot be distributed in any other jurisdiction, or to any other people. It is not an offer or solicitations in any jurisdiction in which such offers or solicitations are not authorised, or in which the person making such offers or solicitations are not qualified to do so, or to any person to whom it is unlawful to make such offers or solicitations. Any representation to the contrary would be unlawful. No action has been taken by any person that would permit a public offering in any jurisdiction where action for that purpose would be required.


John Paine B.Sc., Dip BIA
TBK Capital Limited
Level 10,120 Albert Street
Auckland 1010, New Zealand
Phone +64 9 307 3257
Mobile +64 21 902 901

For more information, please click the contact button below to send us a message.


⇑ back to top