Blackthorn Resources - Post Glencore Deal Valuation of US$152m

By Edison Investment Research, PRNE
Monday, October 25, 2010

Research Report From Edison Investment Research

LONDON, October 26, 2010 - Following a comprehensive due diligence exercise and detailed
negotiations, Australian mining company Blackthorn Resources (ASX: BTR) has
signed a binding agreement with Glencore to form a JV for the Perkoa zinc
project in Burkina Faso. Glencore is paying US$50m for 50.1% of the project
and providing a further US$30m in project finance. The Glencore agreement
supports Edison's assumption that Perkoa will be commissioned and producing
concentrate by Q212. In addition, Blackthorn Resources has completed the
first phase of exploration drilling for gold and expects to announce a JORC
code compliant mineral resource by the end of the year. In Zambia the fourth
phase of drilling has confirmed additional copper mineralisation at the
company's Mumbwa JV copper and gold project, consistent with an IOCG-type
interpretation of the geology.

Edison's combined valuation of Blackthorn is US$152m (A$154m) or A$1.44
per share with c 107m shares in issue. This is based on a long-term zinc
price of US$3,000/t and an exchange rate of US$0.985/A$. The valuation will
increase if the company announces a gold resource in Burkina Faso.

Please click here to view the full report:

Blackthorn Resources is an Australian exploration company with gold and
zinc projects in Burkina Faso and a copper/gold project in Zambia. By
focusing on priority projects, it aims to become a self-funding exploration
and mining company.

Edison Investment Research is Europe's leading investment
research company. It has won industry recognition, with awards in both the UK
and internationally. The team of more than 50 includes over 30 analysts
supported by a department of supervisory analysts, editors and assistants.
Edison writes on more than 250 companies across every sector and works
directly with corporates, investment banks, brokers and fund managers.
Edison's research is read by major institutional investors in the UK and
abroad, as well as by the private client broker and international investor
communities. Edison was founded in 2003 and is authorised and regulated by
the Financial Services Authority (

    Contact details: Charles Gibson

Contact details: Charles Gibson, enquiries at, +44(0)20-3077-5700

will not be displayed