Orexplore Technologies is seeing a “positive market outlook” for its non-destructive drill-core scanning and analysis offering on the back of a recent contract win with Wiluna Mining Corp and increased marketing activity.
“Customer engagement is deepening with multiple small scale commercial and in-kind trials underway, which are a critical step to validating technology solutions and generating additional commercial orders,” the company said this week.
March-quarter cash receipts from customers came in at a modest A$110,000. Orexplore listed in January after being spun-out of Swick Mining Services, which merged with DDH1 Drilling.
Its share price is down by about a third since listing, capitalising Orexplore at circa-$10.16 million.
The company had $12.66m in the bank at the end of March, with no debt.
A $170,000, two-month contract with Wiluna Mining to scan and analyse about 2000m of diamond drill core at the Wiluna gold mine in Western Australia, and a $110,000 commercial engagement with nickel miner Western Areas to test more than 1,200m of core highlighted positive market momentum.
Orexplore maintains its “customer pipeline [is] growing”, with a “full scale in-kind field trial with [a] large international miner” continuing with three Geocore X10 scanning units, and increased “outreach”.
Orexplore says its technology enables mining companies to scan and analyse drill core faster and more sustainably, allowing them to make higher quality critical decisions more rapidly.
“Demand for our technology is increasing, and our recently announced contract with Wiluna demonstrates initial success in our commercialisation strategy, with a number of revenue earning small scale projects, and a significant in-kind field trial also underway,” managing director Brett Giroud said.
“As one of the pioneers introducing next generation digital mineral analysis technology to the mining industry, we are excited for what lies ahead of us. The global market opportunity is rapidly expanding, and we are focused on growing our active pipeline of opportunities to create value for our customers and shareholders.”