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Tangiers Petroleum completes Australian farm out

Wed, 22 May 2013 18:02:00 +1000

Tangiers Petroleum (AIM:TPET, ASX:TPT) has confirmed that its deal to sell stakes in its Australian exploration permits is now complete.

CWH Resources (ASX: CWH) will now have a 70% interest in the assets, and Ansbachall will take a 3% stake.

In return, CWH is funding all the costs for a seismic programme and drilling up to a maximum of A$35mln.

“The execution of the farm-out agreement represents another key milestone in Tangiers' strategy to build an international oil and gas company with strong growth prospects,” the company said in a stock market statement.

“The farm-out agreement is consistent with the company's stated plan to either reduce or eliminate altogether its near-term expenditure commitments on its existing assets while retaining significant exposure to their potential upside."

Tangiers also said it is seeking opportunities to acquire new interests, in African petroleum assets.

Bulletin Resources to increase cash position

Wed, 22 May 2013 17:00:00 +1000

Bulletin Resources (ASX: BNR) is preparing to release a capital raising update, with the ASX granting the company a trading halt today - with its shares placed in pre-open.

Earlier in the month Bulletin announced the final results from a 5000 metre reverse circulation drilling program at the wholly-owned Lamboo Gold Project in Western Australia.

Recent highlights from the project include resource expansion drilling at Nicolson’s which delivered: 3.0 metres at 5.0g/t gold; and 2.0 metres at 27.5g/t gold.

The halt will last until the earlier of an announcement being made to the market, or the opening of trade on Friday 24th May 2013.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

Australia’s S&P ASX200 falls 0.3% on weak consumer confidence

Wed, 22 May 2013 16:57:00 +1000

Australian banking and retail shares fell on a drop in consumer confidence though this was offset partly by miners who put a strong showing on higher steel production in China, sending the benchmark S&P ASX200 down 14.7 points, or 0.3%, to 5,165.4.

The broader All Ords was also down 14.1 points, or 0.3%, to 5,142.1.

The Westpac-Melbourne Institute Index of Consumer Sentiment fell 7% to 97.6, below the 100 point threshold, leading Westpac chief economist Bill Evans to say that while the fall was no doubt affected by the state of the economy as represented by this month's federal budget, it was also surprising due to the Reserve Bank’s unexpected interest rate cut.

This result offset positive offshore leads with U.S. equities continuing their record breaking run overnight, with investors getting a lift from Federal Reserve comments about the central bank's bond-buying program.

The buying momentum helped the Dow Jones post its 19th straight-Tuesday gain.

On the commodities markets, June gold eased 0.5% to close at US$1,377.60 an ounce on the Comex division of the New York Mercantile Exchange, erasing some of the gains from Monday.

Spot gold edged higher on Wednesday in Asian trading due to strong Chinese demand, rising 0.2% to US$1,377.7 an ounce by 0314 GMT.

In the energy market, oil futures finished lower on Tuesday, snapping a four-day winning streak. Traders awaited this week's updates on U.S. petroleum supplies and the dollar advanced against the currencies of U.S. trading partners.

June crude declined 0.6 percent to close at US$96.16 a barrel on the New York Mercantile Exchange. The June crude futures contract expired at the session's close.

Miners step on the accelerator

Miners were granted a major boost from reports that top steel producer and consumer China had increased its steel output in April, more than offsetting production cuts in most other countries.

BHP Billiton (ASX: BHP) rose $0.44, or 1.26%, to close at $35.27, Rio Tinto (ASX: RIO) gained $1, or 1.81%, to $56.30 while Fortescue Metals Group closed up $0.12, or 3.42%, to $3.63.

Gold miner Newcrest Mining (ASX: NCM) was down $0.73, or 4.68%, to close at $14.87 while copper-gold producer PanAust (ASX: PNA) slipped $0.01, or 0.43%, to $2.34.

Banks, retailers retreat

All four of the big banks were in the red today with Westpac Bank (ASX: WBC) down $0.29, or 0.92%, to $31.19, National Australia Bank (ASX: NAB) down $0.38, or 1.15%, to close at $32.71, Commonwealth Bank (ASX: CBA) sliding $0.78, or 1.08%, to $71.70 and ANZ Bank (ASX: ANZ) closing down $0.34, or 1.15%, to $29.30.

The fall in consumer confidence also hit retailers with Dow Jones (ASX: DJS) and rival Myer (ASX: MYR) down $0.04, or 1.45%, to $2.72 and $0.09, or 3.25%, to $2.68 respectively.

Juniors

Condor Blanco Mines (ASX: CDB) closed up 34.78% to $0.031 following the intersection of 137.85 metres of strong sulphide mineralisation in a drill hole from its Carachapampa project in northern Chile.

Notably, this remains open at depth and may indicate the potential for two mineralised systems at Carachapampa.

Peak Resources (ASX: PEK) was up 2.86% to close at $0.18 after achieving a significant milestone on the road to commercialising its wholly-owned Ngualla Rare Earth Project in Tanzania, following the production of two refined rare earth products.

These products an ultra-high purity (99.9%) mid and heavy rare earth oxide (M+HREO) and a high purity (>99%) rare earth carbonate with a grade of 56% REO were produced at ANSTO Minerals (Australian Nuclear Science and Technology Organisation), and importantly are in a saleable form and available for evaluation by target customers.

Asian markets

Asian stocks were largely up on the positive U.S. news with the Nikkei up 1.6% to close at 15,627.26 points on the Bank of Japan keeping its monetary policy unchanged while the Shanghai Stock Exchange Composite Index was up 0.22% to 2,305.11 points.

The Hang Seng was down 0.67% to 23,210.59.

Leyshon Resources expects results from Chinese coal seam gas wells next week

Wed, 22 May 2013 16:40:00 +1000

Leyshon Resources (ASX: LRL) is continuing flow testing of two coal seam gas wells in the Ordos Basin, China, with initial results expected next week.

The ZJS5 and ZJS6 wells are part of an initial program designed to explore and test the potential for commercial gas production in a highly prospective and unexplored 380 square kilometre central depression area.

This area appears to demonstrate good continuity with the neighbouring Sanjiaobei discovery operated by fellow Australian Sino Gas & Energy (ASX: SEH).

The testing is part of the previously announced US$20 million accelerated exploration and appraisal program on the Zijinshan Gas Project, located on the eastern fringe of the prolific Ordos Gas Basin in Central China.

ZJS5 and ZJS6 are located within 10 kilometres of a tie-in point on the recently commissioned Lin-Lin pipeline which supplies the growing demand in Shanxi Province.

Discussions with potential off-take partners suggest that there continues to be a shortage of locally sourced gas to feed the pipeline and as a result prices are continuing to rise.

Locally based major industrial users are reportedly paying around U$ 12 per thousand standard cubic feet of gas.

Winmar Resources delivers maiden Indicated Iron Resource at Hamersley

Wed, 22 May 2013 16:20:00 +1000

Winmar Resources (ASX: WFE) infill drilling campaign at the Hamersley iron project in the Pilbara region of Western Australia has delivered a maiden Indicated Resource.

Hamersley is located in the Tom Price Region of the Pilbara, in close proximity to Fortescue Metals’ (ASX: FMG) Solomon project and Rio Tinto’s (ASX: RIO) Marandoo and Brockman mines.

The Indicated Resource is 42.6 million tonnes at 55.2% Fe (57.3% CaFe) and was conducted by RungePincockMinarco, with Inferred 300.6 million tonnes at 54.5% iron (58.0% CaFe) for a total Resource of 343.2 million tonnes at 54.5% iron (57.9% CaFe).

Importantly for Winmar is that the Indicated portion of resource is near surface, which opens up the potential for future DSO production, which brings cash flows. The company will now focus on this part of the resource with Pre-Feasibility Studies and infrastructure discussions underway.

Winmar has also outlined that talks are underway with multiple parties to identify and collaborate on strategic infrastructure solutions in line with the project’s development plan. Both road and rail opportunities are being pursued with associated port opportunities.

Joint Venture

Winmar recently satisfied the expenditure requirements of its Farm-In and Joint Venture with a subsidiary of Cazaly Resource (ASX: CAZ) for Hamersley.

The joint venture between Winmar and Cazaly was subsequently formed on 11 February 2013 with respective participating interests of the parties: Winmar 51% and Cazaly 49%. Winmar continues to manage the project.

TZ Limited locks in first six Australian locations for A.D.A.M. parcel lockers

Wed, 22 May 2013 16:00:00 +1000

TZ Limited (ASX: TZL) has locked in six locations in eastern Australia for the first stage roll out of its A.D.A.M. Parcel Locker System.

Installation of the lockers will commence towards the end of next week and will go ‘live’ shortly thereafter following brief site testing of parcel drop-off and pick-up workflows with enabling partners.

The lockers will be located at MLC Centre at Martin Place in Sydney, Melbourne Central Shopping Centre in the Melbourne CBD and BP Petrol Station at Church Street, Richmond in Victoria.

The last three sites are located in Sydney, Melbourne and Brisbane and will be identified once leasing and license agreements are finalised.

Expansion of the Parcel Locker Network, including sites in South Australia and Western Australia, will progress in the next stage of deployment which is currently scheduled for September this year.

The company has already identified possible sites for this next stage of development and is already in discussions with prospective partners that will further extend and expand the Parcel Locker Network.

TZL had yesterday reached an agreement with Fastway Couriers to use TZ’s Parcel Locker Network during a 12 month trial.

Taken together with other teaming agreements with Temando and Toll Group, the company believes that the conditions are in place for generating parcel delivery flow to the A.D.A.M. Parcel Locker Network as it is rolled out across Australia, ultimately providing significant benefit to TZL and its network of partners.

These agreements could represent in excess of 60% of the parcel deliveries in Australia.

Leopard Resources gains exposure to Yandal Greenstone Belt gold quest

Wed, 22 May 2013 15:40:00 +1000

Leopard Resources (ASX: LRR) is moving towards acquiring the Cables and Mission project in the Yandal Greenstone Belt in Western Australia, with the company providing an update that an exploration program has commenced on the project.

Leopard said that Mobile Metal Ion sampling has commenced at the Mission and Cables Gold prospect, with the program also including a 3500 metres of reverse circulation drilling which will target an upgrade to the Resource of 1.2 million tonnes at 2.8g/t gold for 109,900 ounces.

Highlighting the prospectivity of the tenements, they are located in the Mount Margaret Mineral Field, and form part of the Yandal Belt area which has been a major gold producing region for many years.

Deposits in the belt include Jundee/Nimary (historical production of 7.3Moz), Bronzewing (3.6Moz), Darlot (3Moz) and Mt McClure (1.8Moz). The 3Moz Darlot/Centenary Gold Mine (operated by Barrick Gold) is located seven kilometres south of the prospects.

Financing update

Leopard said that it is well advanced in discussions to raise up to $1.5 million to provide the necessary additional funding to complete the next stage of drilling and development at the Mission and Cables gold project.

Funds would also be allocated to the Nacimiento project in Mexico and general working capital.

Silver Lake Resources director increases stake on market

Wed, 22 May 2013 15:20:00 +1000

Silver Lake Resources (ASX: SLR) non-executive director Brian Kennedy has increased his indirect interest in the company by a further 280,000 shares acquired on-market.

The shares were acquired at an average price of $0.689375 per share for a total consideration of $193,025 by Pauline Kennedy and Briken Nominees as trustees for the Briken Trust.

Kennedy now holds 75 shares directly and 4,555,377 shares indirectly.

Silver Lake has logged further thick, high grade copper and gold intercepts from infill drilling at its Hollandaire deposit within the Eelya Complex, part of the Murchison gold project located 600 kilometres north of Perth.

This could add a copper, gold and silver concentrate revenue stream to the Murchison gold project, thereby reducing all-in-sustaining cash costs at the gold operation.

The nearby gold mill has been constructed with the possible addition of a concentrate circuit in mind. The crusher already has excess capacity and provision has been made for the ready addition of a grinding and flotation circuit.

The Hollandaire inferred resource of 2.8 million tonnes at 1.6% copper, 0.4 g/t gold and 5 g/t silver with the supergene zone averaging 4.7% copper sits below gold mineralisation that extends from the surface down to 50 vertical metres depth.

Lucapa Diamond Company confirms presence of kimberlite at Angolan diamond target

Wed, 22 May 2013 15:00:00 +1000

Lucapa Diamond Company’s (ASX: LOM) drilling at its Lulo Diamond Concession in Angola has confirmed the presence of kimberlite material at the Se251 anomaly.

The five initial core holes also indicate that Se251 is potentially the largest kimberlite identified to date within the 3,000 square kilometre concession with an estimated surface area of 150 hectares.

Its large size and central location adjacent to, and within, the main alluvial workings of the Cacuilo Valley indicate the anomaly could be a potential source of the large alluvial diamonds recovered from the area.

However, Lucapa noted it was still too early to determine whether the anomaly is a single large kimberlite or a series of closely spaced smaller pipes.

Se251 has now being designated the highest priority kimberlite target at Lulo and Lucapa has started a comprehensive drilling and sampling program to evaluate the pipe.

It is now drilling the first large diameter hole at Se251 with samples to be processed through the company’s existing Dense Media Separation plant.

Lucapa has also received preliminary data from the aeromagnetic survey Fugro completed over the north-eastern two-thirds of the Lulo concession.

This shows a number of new targets with magnetic signatures consistent with known kimberlite pipes that are concentrated along the eastern margin of the survey area.

Lucapa will undertake a thorough review and interpretation of the survey results when the final aeromagnetic data becomes available in June 2013.

In addition, the company has started receiving the final containers with the remainder of its 50 tonne per hour DMS plant.

Lucapa hopes to have the new DMS plant commissioned and operational in the next quarter, which will greatly assist the processing of kimberlite and alluvial samples.

Condor Blanco Mines intersects 137 metres of strong sulphide mineralisation in Chile

Wed, 22 May 2013 14:48:00 +1000

Condor Blanco Mines (ASX:CDB) has notched an impressive 137.85 metres of strong sulphide mineralisation in a drill hole from its Carachapampa project in northern Chile.

Interestingly, mineralisation is still open at the end of the hole.

The drill core has been sent to the laboratory with initial assay results expected in early June.

The Carachapampa Project is located in "big discovery territory" in the Maricunga Belt of northern Chile, including large gold-copper porphyry deposits in the Maricunga Belt such as Exeter Resources’ Caspiche Project, Kinross Gold's operating Refugio mine and the Cerro Casale gold-copper deposit.

Condor Blanco managing director Glen Darby said today if the diamond drill hole DDH-CP2B has passed through the high sulphidation epithermal zone into the upper parts of a porphyry copper system, there could be be potential for two mineralised systems at Carachapampa.

Drilling commenced in early January with two diamond drill rigs established on holes DDH-CP1 and DDH-CP2 in the central area of the alteration.

Drilling will recommence in May with DDH-CP1 being deepened to 400 metres from the current depth of 136.65 metres.

One interpretation is that the mineralisation could represent a transition zone from high sulphidation epithermal gold-silver mineralisation to porphyry copper mineralisation.

Adcorp Australia wins three year master media agency contract from Western Australia

Wed, 22 May 2013 14:40:00 +1000

Adcorp Australia (ASX: AAU) has secured a three year contract from the Western Australia Government for the provision of non-campaign master media agency services.

The contract includes a two year extension option and follows on the original contract that Adcorp was awarded in 2008 and extended in 2011.

Adcorp attributed to award to its proprietary online media booking and artwork building system as well as its Perth team’s dedication to customer service.

It also holds the Non-Campaign Master Media Agency contract with the Australian Government; the Media Placement and Typesetting contract with the New South Wales Government and the Interstate and Overseas Media Contract with the Northern Territory Government.

Adcorp is Australasia’s largest locally owned communications group with annual billings in excess of $145 million.

Classic Minerals is Australia's newest public company, Fraser Range exposure

Wed, 22 May 2013 14:20:00 +1000

Classic Minerals (ASX: CLZ) will be Australia's newest listed company after being admitted to the Official List of ASX today, with the company focused on the Fraser Range and Murchison provinces of Western Australia.

Classic will hit the ASX boards at 1.00 pm EST on Friday 24th May 2013, and when the company first trades there will be a little over 67.1 million shares on issue.

The company raised $3,625,700 under the Initial Public Offer by the issue of 18,128,500 fully paid ordinary shares at an issue price of $0.20.

Classic’s Fraser Range Project is located in the Fraser- Albany Mobile Belt which further to the north hosts the 6.4 million ounce Havana and Tropicana Gold deposits and 40 kilometres to the south hosts Sirius Resources’ (ASX: SIR) highly prospective Nova nickel-copper sulphide deposit.

Other interests include the Mt Maitland Project which is located 100 kilometres north west of Meekatharra and west of Yeelirrie in the Murchison Mineral Field.

Iluka Resources MD: zircon prices may have stabilised

Wed, 22 May 2013 14:00:00 +1000

Iluka Resources (ASX:ILU) managing director David Robb has painted an improved picture of the zircon market, with a higher level of customer inquiry and a pick-up in orders in all markets, except Europe.

Speaking at the annual general meeting, Robb said indications are that zircon prices may have stabilised, which if sustained, would underpin volume recovery and represents a pre-condition for potential price increases.

Its key zircon markets in China and the US, and even now in Europe, albeit from a very low base, have seen sales exceed last year’s levels.

Robb said sales in China are at a similar level to full year 2012 China sales.

Forecasting demand throughout 2013 and into 2014 remains challenging, due to factors such as the volatility of global and regional economic indicators and subsequent performance trajectories.

Iluka will provide sales volumes in July.

Titan Energy Services drill rig to continue drilling for Australia Pacific LNG

Wed, 22 May 2013 13:40:00 +1000

Titan Energy Services’ (ASX: TTN) coal seam gas rigs continue to be contracted to leading operators with Australia Pacific LNG extending the contract for its Atlas Rig 3 by another six months.

Atlas Rig 3 will now continue drilling wells for the Origin Energy (ASX: ORG), ConocoPhillips (NYSE: COP) and Sinopec joint venture through to December 2013.

Titan’s various business continue to perform well as the Queensland coal seam gas to liquefied natural gas projects ramp up operations as they move towards delivery of their first cargoes.

Its Resources Camp Hire business had earlier this month signed two key camp contracts, bringing its total room numbers up 9% to 623.

This and other contracts have contributed to the company’s confidence that it is on track to achieve its Earnings Before Interest and Tax guidance of between $12.5 million and $13.5 million.

Chinalco Yunnan Copper Resources hits shallow copper mineralisation in Queensland

Wed, 22 May 2013 13:20:00 +1000

Chinalco Yunnan Copper Resources (ASX:CYU) has intersected broad zones of shallow copper sulphide mineralisation at its Blue Caesar project in North Queensland including a peak result of 1 metre at 17.3% copper from 30 metres.

This peak zone is located within a 8 metre zone at 3.23% copper from 29 metres that is itself enveloped in a broader mineralised zone of 30 metres at 1.39% copper from 27 metres.

Assays are pending for the deeper portions of the drill hole and the third hole in the program.

Once all the results are received, Chinalco will complete its initial evaluation of the Blue Caesar prospect and follow up with a drill program that is being planned to define the geometry of the mineralised body and evaluate the 400 metre previously untested strike southeast to the Elaine prospect.

Recent geological mapping has identified a series of copper stained gossan outcrops situated along this trend. Drilling is expected to commence at the end of the current quarter.

The initial results from the first pass three hole diamond drill program has indicated that it has successfully tested the current exploration model developed from the work undertaken at the Elaine resource.

This model is being used to assist in identifying additional potential trap sites along the 12km long Mary Kathleen Shear Zone that hosts the Mary Kathleen joint venture’s 27.7 million tonne Elaine copper-gold JORC inferred resource and the historic Mary Kathleen Uranium Mine.

Blue Caesar is situated about 400 metres northwest of Elaine and has demonstrated strong co-incident geochemical and geophysical anomalies overlying a similar geological setting to Elaine.

It is also part of the Mary Kathleen joint venture that Chinalco has a 70% interest in. The remaining 30% is held by Goldsearch (ASX:GSE).

Bora Bora Resources increases Sri Lankan graphite footprint

Wed, 22 May 2013 13:00:00 +1000

Bora Bora Resources (ASX: BBR) has strengthened its graphite portfolio in Sri Lanka adding two exploration licences granted covering 11 square kilometres in Sri Lanka.

Sri Lanka is known to host some of the world’s highest grade graphite, averaging 90% total graphite content (TGC), where the global average grade is 15% TGC.

Bora Bora's footprint now covers 41 square kilometres of licence area, with the company's 75%-owned Sri Lankan subsidiary Plumbago Lanka Limited having been issued the exploration licences (EL/229 and EL/230).

The Matale project (EL/229) is prospective for graphite mineralisation of 90% or greater total graphitic carbon and located adjacent to Plumbago’s existing tenements in the Matale region (EL/211 and EL/212) near Kandy, and increases exposure by two square kilometres.

Highlighting the potential of the project, it is adjacent to the historical Kahatagaha Kolongaha Graphite Mine, which has operated since 1872 and produced >300,000 tonnes of high-grade graphite.

Bora Bora said that it will commence exploration at Matale in the June quarter, including rock chip sampling, trenching and a VTEM survey.

EL/211 and EL/212 were granted in October 2012 and cover 30 square kilometres surrounding the existing Kahatagaha-Kolongaha Graphite Mine, one of the deepest and oldest mines in Sri Lanka, extracting vein graphite at between 90-98% total graphite content.

Bora Bora held around $2.5 million in cash at the end of March 2013.

RHG Limited receives takeover offer from Resimac

Wed, 22 May 2013 12:40:00 +1000

RHG Limited (ASX:RHG), formerly known as Rams Mortgage has received an offer from mortgage provider Resimac in conjunction with Australian Mortgage Acquisition Company to acquire RHG.

The offer is pitched at $0.43 per share for the entire company, includes cash of $0.415 per share and a franking credit of $0.015 per share.

RHG's share price is up 10.8 per cent on Wednesday to $0.41.

AMAC would acquire all of the shares in RHG and on-sell the mortgage assets to Resimac.

The offer has a number of conditions including positive due diligence findings.

Response from RHG

The directors of RHG said they are assessing the proposal and have recommended that shareholders exercise caution while the directors are assessing the proposal.

Otis Energy raising $1M to review potential acquisitions, fund existing oil and gas operations

Wed, 22 May 2013 12:20:00 +1000

Otis Energy (ASX: OTE) is raising $1 million through a private placement to continue its review of complementary oil and gas assets and fund existing operations.

The two tranche placement to Oil & Gas Exploration Limited will result in the issue of 500 million new fully paid ordinary shares at a price of $0.002 per share.

Half of these shares will be issued under the company’s 15% capacity while the remaining 250 million shares will be issued subject to shareholder approval to be sought at a General Meeting proposed to be held in late July 2013.

As part of the placement, Oil & Gas Exploration director Alan Beasley has been appointed as a director of Otis.

Otis continues to source and review potential oil and gas acquisition opportunities which complement its existing portfolio.

The company is currently in negotiations with the vendor of an oil and gas asset located in the Middle East and is also in discussions with a suitable executive to add to the Otis Board with relevant Middle East and North African experience to manage that asset, should negotiations be successfully concluded.

Otis had earlier this month fracture stimulated the third well – Lott Unit-1 – at its Comanche Project in Jack County, Texas, and started flowing back both frac water and gas.

The well had targeted ten sections of potential pay and is expected to report initial production rates within days.

Otis has a 12.5% working interest in the Comanche Project.

ASF Group forms strategic partnership with China Real Estate Association

Wed, 22 May 2013 12:03:00 +1000

ASF Group (ASX: AFA) has entered into a strategic partnership agreement with China Real Estate Association, strengthening its goal of promoting investment and trade between Australia and China.

CREA is a peak association authorized by the Ministry of Construction of China based in Beijing.

Under the partnership, ASF will become the sole strategic partner of CREA in Australia and will assist the non-profit in arranging for Chinese entities to invest in Australian real estate developments.

In return, CREA will promote ASF’s projects on its website and in events organised or sponsored by CREA.

It will also arrange for potential investors to visit ASF and to explore the possibility of investing in its Australian projects.

“The company is very pleased to become the sole strategic partner of CREA in Australia and believes that the strategic partnership will enhance the position of the company in promoting investment and trade between Australia and China in particular in the property sector,” ASF chairman Min Yang said.

China Real Estate Association

CREA is a China-wide non-profit professional organisation with 2,100 members that was established in Beijing in 1985 with authorisation by China’s Ministry of construction.

Members include businesses and institutions engaged in real estate development and operations, market transactions, brokerage, construction and property management; as well as local real estate associations and relevant individuals.

The association has a large network and significant influence in the Chinese real estate sector, submitting research reports and suggestions concerning real estate development, technical requirement policy, law and regulations to China’s Government.

ASF Group

ASF Group focuses on investments where there are synergies between Australia and China.

While this has primarily being in the resources sector, the company was in March shortlisted by the Queensland Government and Gold Coast City Council for the development of a new cruise ship terminal and casino at Broadwater on the Gold Coast of Queensland.

The world-class project could include a cruise ship terminal on State Government-owned land on The Spit or on Wave Break Island in the Broadwater, marina and super yacht facilities, retail entertainment, hospitality, community open space, recreation facilities and a mix of residential development.

ASF China Property Consortium, which includes China Communications Construction Company, Guangzhou Dredging co Ltd and China State Construction Engineering Corporation Limited (CSCEC), is one of four consortia that were shortlisted.

It is expected that a detailed proposal will be lodged by mid 2013.

Crest Minerals seeks $2.2M to progress Western Australia gold project

Wed, 22 May 2013 12:00:00 +1000

Crest Minerals (ASX: CTT) is looking to raise up to $2.2 million through a partially underwritten rights issue to progress its flagship Majestic North Gold Project in Western Australia’s Eastern Goldfields.

Proceeds will also be used to test other prospective exploration targets and strengthen its overall working capital position

The non-renounceable rights issue offers shareholders one new share priced at $0.06 for every share held. This is partially underwritten by Patersons Securities Limited to $985,520 subject to execution of a satisfactory underwriting agreement.

This includes a free attaching option exercisable at $0.06 on or before 30 November 2014 for every three shares subscribed.

The issue price reflects a 48% discount to the most recent 30-day volume weighted average of Crest’s share price.

Crest’s directors reserve the right to place any remaining shortfall at their discretion within three months after the close of the offer.

Majestic North is located 50 kilometres east of Kalgoorlie and is within trucking distance of six operating gold mills. It is also located along strike from S ilver Lake Resources (ASX: SLR) Majestic Gold deposit and high grade Imperial prospect.

Crest had in April extended and upgraded a supergene gold anomaly at its Majestic North gold project in Western Australia’s Eastern Goldfields.

This has increased the potential exploration target at Majestic North to 400,000 tonnes at 2g/t gold, making it a high priority exploration target.

Follow-up angled and vertical aircore drilling is planned across the “Western Supergene” high grade zones that strikes north northeast to infill the zone and better define and constrain the mineralisation.

S&P ASX 200 slightly higher on improved iron ore price

Wed, 22 May 2013 11:50:00 +1000

Australia's S&P ASX 200 is slightly higher this morning on strength in miners: BHP (ASX: BHP), Rio Tinto (ASX:RIO) and Fortescue (ASX:FMG) after a 0.5% rise in spot iron ore overnight.

Banks continue to underperform, with Westpac (WBC.AU) down 0.2%.

However, other high-yield stocks are finding support, with Telstra (ASX:TLS) up 0.3% and Sydney Airports (ASX:SYD) up 0.8%.
Seven West Media (ASX:SWM) is down 7% after news KKR sold its 12% stake in the company.

Mining services companies remain weak, with Transfield (ASX:TSE) down 5% and Boart Longyear (ASX:BLY) down 1.9% as brokers slash price targets following profit warnings in the sector.

Cokal signs agreement for river barging coal in Indonesia

Wed, 22 May 2013 11:40:00 +1000

Central Kalimantan focused Cokal (ASX: CKA) has signed an agreement to river barge coal from its BBM coking coal Project in the metallurgical Upper Barito Coal Basin, adjacent to the BHP Billiton’s coal project.

The BBM project has a JORC Resource of 77 Million tonnes in multiple seams comprised of 70 million tonnes of Inferred and 7 million tonnes of Indicated as well as an Exploration Target of 200 to 350 million tonnes.

The Project covers an area of 15,000 hectares. The Project is adjacent to the BHP Billiton’s, Indomet Coal, Joloi Project in Murung Raya Regency.

Cokal is completing definitive studies and obtaining the necessary approvals with the aim of commencing construction in October 2013 which would see first production occur in the first half of 2014.

The joint venture that will own and manage the shallow river barges and tugs design specifically for PT Bumi Barito Mineral (BBM) is with Meratus Advance Maritime.

Meratus Maritime is part of the Meratus Group which has operated in Indonesian shipping since 1957 and has provided barging and shipping services to a number of the major Kalimantan coal operations.

MDM have also worked on the Barito River over a number of years. The Barito is a major coal barging river on which BBM is located.

The JV is an accumulation of almost 2 years of studies into river based shallow draft barging systems which have confirmed its effectiveness on the Barito River.

While shallow draft barging systems are used extensively worldwide the system has not been used in Indonesia to date.

Tangiers Petroleum executes farm-out of Bonaparte Basin oil and gas permits

Wed, 22 May 2013 11:30:00 +1000

Tangiers Petroleum (ASX: TPT) has executed a key farm-out over two oil and gas permits in the Bonaparte Basin, offshore northern Australia, that will grant it a free carry on exploration to a cap of $35 million.

CWH Resources (ASX: CWH) will fund all costs and expenses associated with seismic work, drill planning and exploration drilling to earn a 70% interest in WA-442-P and NT/P81.

Private company Ansbachall Pty Limited will take another 3% interest, leaving Tangiers with a 27% stake in the two permits.

The farm-out allows the company to retain a meaningful interest in the two permits while reducing or eliminating its near-term expenditure commitments.

This allows it to focus its resources on its African petroleum assets that offer strong petroleum potential and ultimately cash flow.

WA-442-P and NT/P81 contain the undeveloped Turtle and Barnett Oil Fields discovered in 1984 and 1985; the Milligans Fan Oil Play comprising 14 leads with estimated combined mean unrisked oil-in-place of 683 million barrels; and the deeper Nova gas prospect that is estimated to host mean unrisked Prospective Resources of 3.46 trillion cubic feet of gas.

Otis Energy to make strategic shareholder placement

Wed, 22 May 2013 11:20:00 +1000

Otis Energy (ASX: OTE) is in pre-open this morning following the ASX granting the company a trading halt, pending a strategic shareholder placement announcement.

Otis currently has a (12.5% Working Interest (9.375% NRI)) interest in the Comanche project in Jack County, Texas, with the company earlier in the month providing an update.

Fracture stimulation of the third well – Lott Unit-1 – has been completed and the well is currently flowing back both frac water and gas.

The well had targeted ten sections of potential pay and is expected to report initial production rates within days.

The halt will last until the earlier of an announcement being made to the market, or the opening of trade on Friday 24th May 2013.

NuEnergy Gas to start pilot production at Sumatra coal seam gas project

Wed, 22 May 2013 11:00:00 +1000

NuEnergy Gas (ASX: NGY) expects to start pilot production at its Muara Enim gas pilot in Sumatra, Indonesia, within two weeks after completing the radial jetting hydraulic fracturing program.

A total of 15 laterals were completed across five coals seams with an average lateral length of 32 metres and total lateral length of 485 metres being achieved.

This is expected to stimulate higher water and gas production rates from the first pilot well and provide guidance as to optimal completion techniques for the following two pilot wells to be drilled from June this year.

NuEnergy is also in the process of shortlisting drilling contractors with a view to committing to a two well development program (with options to drill more) to complete the Muara Enim PSC pilot production site.

The drilling of the next two pilot wells is scheduled to commence within the next six weeks.

De-watering operations will continue in parallel with drilling operations for the next two pilot wells, which will be connected to the pilot site as they are completed.

The company has secured a commitment from compressed natural gas producer Dharma Pratama Sejati to offtake between 1 million and 5 million standard cubic feet of gas at a price of US$10 per million British Thermal Units.

This represents potential gross revenue of between US$10,000 and US$50,000 per day, or between US$3.6 million to US$18.2 million per annum to the joint venture. NuEnergy has a 40% interest.

Muara Enim has Contingent Gas Resources of 98 billion cubic feet though the company expects to be able to book first reserves later this year.

Celamin Holdings to add $1.5M to cash reserves

Wed, 22 May 2013 10:40:00 +1000

Celamin Holdings (ASX: CNL) has added $1.5 million to its recent capital raising struck at $0.15 per share from Avery International.

The remaining proceeds of $1.495 million from the capital raising are expected to be received in the coming week.

In May, exploration Permits were renewed for the Chaketma and Bir El Afou Phosphate Projects in Tunisia.

Celamin is looking to move the Chaketma Phosphate Project through the Bankable Feasibility study to development and attract product off takers.

Peak Resources produces refined rare earth products from Ngualla mineralisation

Wed, 22 May 2013 10:30:00 +1000

Peak Resources (ASX: PEK, OTCQX: PKRLY) has achieved a significant milestone on the road to commercialising the wholly-owned Ngualla Rare Earth Project in Tanzania, following the production of two refined rare earth products.

Ngualla is on track to become the next major rare earth supplier with high grade mineralisation and a simple, proven metallurgical process supporting a low cost operation.

These products were produced at ANSTO Minerals (Australian Nuclear Science and Technology Organisation), and importantly are in a saleable form and available for evaluation by target customers.

The rare earth products completed to date are:

- An ultra-high purity (99.9%)* mid and heavy rare earth oxide (M+HREO).
- A high purity (>99%) rare earth carbonate with a grade of 56% REO.

The work includes the first of four separated high purity rare earth oxide products from the Solvent Extraction (SX) Pilot Plant now in operation at ANSTO.

Peak said that the SX Pilot Plant work is progressing well with three additional separated rare earth oxide samples to be produced over the coming months, including a high purity didymium oxide (a neodymium – praseodymium mix) sample which is expected in June, followed by cerium oxide and finally a lanthanum oxide.

Alastair Hunter, chairman for Peak, commented: “The successful production of these products of such high quality is an achievement very few other companies have made and we are hopeful they will exceed the expectations of any future off take customers.

"This work is well within the required specifications and demonstrates Peak’s commitment to drive the development of the Ngualla Project forward.”

Ngualla is a leading rare earth project with an estimated NPV of US$1.57 billion and pre-tax IRR of 53% for an initial 25 years production and an average grade of 4.35% REO.

Peak continues to fast track the development of Ngualla with the aim of becoming a low cost, long term producer of high purity rare earth oxide products in 2016.

Technical Report

Two high purity rare earth products have been produced at ANSTO Minerals from a 1.3 tonne bulk sample of weathered Bastnaesite Zone mineralisation from Ngualla using the simple sulphuric acid leach recovery process:

1. The first of four separated products – a mid and heavy rare earth oxide mix (M+HREO) – has been produced by the SX Pilot Plant currently in operation.

2. A high purity rare earth carbonate has also been precipitated from the feed chloride solution and assayed.

Both samples are available for assessment by potential off take customers.

Mid and Heavy Rare Earth Oxide

The SX Pilot Plant has successfully produced its first product - an ultra-high grade mid and heavy rare earth oxide. Peak added that with a purity of 99.9% REO this product (MAIN PICTURE) is expected to exceed the requirements of off take customers.

This product is a mix of samarium, europium, gadolinium, terbium, dysprosium, holmium, erbium, thulium, ytterbium, lutetium and yttrium as oxides. This high value M+HREO product is expected to contribute approximately 23% of the total value of Ngualla’s rare earth production as defined by the December 2012 Scoping Study.

Value drivers for Ngualla are the Nd/Pr Oxide and Mid+Heavy high purity oxide products. These include the higher value ‘Critical RE’s’ forecast to be in undersupply. 75% of the projected annual revenue as identified in the Scoping Study will be derived from the two high purity products.

The lower value cerium and lanthanum oxides are relative by-products at only 25% of the total revenue.

Rare Earth Carbonate

Following the successful verification of the acid leach recovery process at ANSTO which was announced earlier in the year, a high purity mixed rare earth carbonate has been produced.

PICTURE: High purity (99%) mixed rare earth carbonate (56% REO) produced from Ngualla feed mineralisation at ANSTO Minerals.

The carbonate was precipitated directly from the rare earth chloride solution (Figure 1) used as the feed for the SX Pilot Plant which was produced from a bulk sample of Ngualla mineralisation.

Peak said that assay results of this carbonate have now been received and indicate a high purity (>99%) rare earth carbonate with a rare earth content of 56% REO and less than 1% impurity metals present. Most importantly, the radioactive elements, thorium and uranium, are extremely low, being below detection limits.

Pre-Feasibility Study underway

The Pre-Feasibility Study now in progress will assess the potential benefits of locating the beneficiation and acid leach recovery process units at the Ngualla mine site and the solvent extraction separation plant located off site, closer to infrastructure, utility and port facilities.

In this case, an intermediate mixed rare earth carbonate concentrate would be produced on site at Ngualla to be efficiently transported in this inert, high purity form to the solvent extraction plant for the production of the separated rare earth oxides.

The purity of the carbonate and absence of radioactive elements indicate that no special permits will be required for the handling or transportation of this intermediate product from Ngualla to the separation plant.

Peak also retains the option to sell some of this high purity rare earth carbonate product directly to a third party for separation and samples are available for evaluation by potential customers.

Pharmaxis Limited and Valeant Pharmaceuticals team up in Eastern European

Wed, 22 May 2013 10:20:00 +1000

Pharmaxis Limited (ASX: PXS) will gain exposure to Poland and ten other Eastern European countries for its Bronchitol® cystic fibrosis drug, after appointing a Valeant Pharmaceuticals International (NYSE: VRX) subsidiary as distributor.

The subsidiary is the Switzerland based PharmaSwiss which already operates in 17 Central and Eastern European countries.

This move by Pharmaxis forms another part of the company's commercialisation strategy, which has seen Bronchitol made available in the UK, Germany, Austria and Denmark and with pricing discussions soon to complete in France.

The Polish market is important due to more than 6000 cystic fibrosis patients.

Bronchitol® is a precision spray‐dried form of mannitol, delivered to the lungs by a specially designed, portable inhaler.

The product is approved for marketing for cystic fibrosis patients aged over six years in Australia and for patients aged 18 years and over throughout the European Union.

Analysis

Pharmaxis had $73 million in cash at the end of the March 2013 quarter, and with around 309 million shares on issue and a last traded price of $0.20, the market cap. is $62 million.

IMX Resources: OZ Minerals to start $2.6M field program at Mt Woods Copper-Gold JV

Wed, 22 May 2013 10:00:00 +1000

IMX Resources’ (ASX: IXR) Mt Woods Copper-Gold joint venture partner OZ Minerals (ASX: OZL) has committed to start in the second half of 2013, a $2.6 million field program at the South Australian project.

This targets haematite-hosted iron oxide copper gold deposits and will involve 4,300 metres of diamond core drilling and delineation of targets using detailed ground based gravity and other geophysical surveys.

Most of this work is expected to be carried out in the first half of 2014.

“IMX is pleased to be able to confirm the on-going commitment of our joint venture partner OZ Minerals to this program of work and looks forward to the results that will be generated in this fourth year of the overall exploration program,” IMX managing director Neil Meadows said.

The JV’s exploration campaigns are primarily focussed on the Southern Domain of the Mt Woods Inlier, which hosts the western extension of the Prominent Hill Mine sequence of rocks.

Mt Woods Joint Venture

Under the Mt Woods Joint Venture, OZ Minerals is spending a minimum of $20 million to earn a 51% interest in the non-iron rights while IMX will retain a 49% interest in the non-iron rights and 100% of the iron ore rights.

OZ Minerals has already spent about $14 million as at 30 September 2012 and has carried out deep diamond drilling of copper-gold targets generated from airborne and geophysical surveys.

IMX is trading at above half cash backing with $15.3 million in cash as of 31 March 2013 compared to its current market capitalisation of $28.93 million.

Antipa Minerals readies for new drilling at the Citadel project

Wed, 22 May 2013 09:40:00 +1000

Antipa Minerals (ASX: AZY) will target precious and base metals in a new Phase 2 diamond drilling program at the Citadel Project in Western Australia, which will cover around 4000 metres.

The drill will start spinning towards the end of June, with the program expected to take around two-and-a-half months. Geophysical surveys will also include DHEM surveying of all Phase 2 drillholes.

Exploration will be focused on the recently discovered Calibre gold-copper-silver deposit. Calibre is a +800m long bulls-eye magnetic and co-incident electromagnetic conductivity anomaly

Previous exploration by Antipa at Calibre is limited, with the company completing a total of six diamond drillholes which only tested a fraction of the magnetic anomaly, which delivered 255 to 450 metre intersections of semi-continuous precious and base metal sulphide mineralisation.

The company had around $1.9 million in cash at the end of March 2013.

Silver Lake Resources intercepts high grade copper and gold at Hollandaire

Wed, 22 May 2013 09:36:00 +1000

Silver Lake Resources (ASX:SLR) has logged further thick, high grade copper and gold intercepts from infill drilling at its Hollandaire deposit within the Eelya Complex, part of the Murchison gold project located 600 kilometres north of Perth.

Significantly, the current resource at Hollandaire could add a copper, gold and silver concentrate revenue stream to the Murchison gold project, thereby reducing all-in-sustaining cash costs at the gold operation.

The results from the Hollandaire pre-feasibility study are expected in late June 2013.

The nearby gold mill has been constructed with the possible addition of a concentrate circuit in mind. The crusher already has excess capacity and provision has been made for the ready addition of a grinding and flotation circuit.

The Hollandaire inferred resource of 2.8 million tonnes at 1.6% copper, 0.4 g/t gold and 5 g/t silver with the supergene zone averaging 4.7% copper sits below gold mineralisation that extends from the surface down to 50 vertical metres depth.

Silver Lake commenced drilling at the Eelya Complex in September 2011 and since then mineralisation has been intercepted along a 10 kilometre mineralised corridor including Hollandaire, Rapier, Mount Eelya and Colonel.

Drill results

Today's infill drilling results from the recent 100 hole RC infill drilling campaign include:

- 12.0 metres at 8.7% copper including 5.0 metres at 3.1 g/t gold from 88 metres;
- 12.0 metres at 8.1% Cu including 5.0 metres at 2.1 g/t Au from 73 metres;
- 10.0 metres at 8.8% Cu & 2.8 g/t Au from 138 metres;
- 8.0 metres at 10.8% Cu including 4.0 metres at 2.0 g/t Au from 110 metres;
- 17.0 metres at 5.9% Cu from 95 metres;
- 12.0 metres at 4.4% Cu including 4.0 metres at 3.2 g/t Au from 136 metres; and

The mineralisation remains open to the southwest and at depth.

Metallurgical test work results are due by the end of May 2013. Once these results are received, expressions of interest in respect of concentrate product will be sought in order to firm up commercial terms.

Silver Lake’s Managing Director, Les Davis said: “We are confident that the current resource at Hollandaire is the catalyst to add a copper, gold and silver concentrate revenue stream to our Murchison gold project.”

“The Eelya Complex, beginning with Hollandaire, has the potential to add significant value to our Murchison gold project. The result is expanded gold production with copper and other base metal credits which can be processed at a marginal capital and marginal operating cost at the nearby gold mill.

"As an example, on a by-product credit basis, every A$10 million per annum of margin realised from the base metals over 100,000 ounces of gold produced equates to A$100 per ounce lower all in sustaining cash cost at the current gold operations,” Davis added.

Hollandaire Copper Gold Deposit

Hollandaire is a tabular stratabound felsites hosted VMS deposit and is currently subject to a pre-feasibility study. The felsite is hosted within a thick sequence of mafic rocks which show typical packages of chlorite and silica alteration similar to other known VMS deposits. The mineralisation forms a moderately dipping zone of massive sulphide 10-15 metres thick which plunges to the south west.

Mineralisation is dominantly supergene chalcocite in the oxidised zones and chalcopyrite in the primary zone. The deposit is underlain in part with disseminated sulphides and a semi-concordant stockwork of sulphide and silicate veining.

MZI Resources making "significant progress" on debt funding for Keysbrook mineral sands project

Wed, 22 May 2013 09:20:00 +1000

MZI Resources (ASX: MZI) has revealed it is making "significant progress" towards completion of the debt funding arrangements for its Keysbrook mineral sands project in Western Australia.

This ensures MZI remains on track to secure credit approved offers from its two mandated Joint Lead Arranging banks.

The banks have requested additional information on offtake contracts struck for Keysbrook as well as construction arrangements.

With this, MZI said it is confident that it will complete these matters to the satisfaction of the JLAs and receive binding offers of debt finance.

More favourable terms and low OPEX

The slow down in construction activity in WA’s resources sector has been a blessing as MZI is likely to achieve more favourable terms for Keysbrook, including the possibility of striking a fixed-price, lump-sum turn-key contract for the development of Keysbrook.

This would provide greater certainty in respect to development costs and schedules and more desirable security arrangements.

Importantly, the current market conditions could also reduce forecast operating costs for Keysbrook, it will conduct a formal tender process for an alternative Keysbrook contract mining strategy.

A Port Services Agreement with the Bunbury Port Authority and other project related commercial contracts are also being finalised.

Oil futures ease, gold higher in spot market

Wed, 22 May 2013 09:00:00 +1000

Gold this morning is higher in the spot market, adding 0.16% to US$1379 an ounce. This follows the June futures contract easing 0.5% to close at US$1,377.60 an ounce overnight on Comex.

In other precious metals, silver futures for July delivery slipped 0.6% to US$22.455, while palladium futures for June edged down 0.4% to US$748.10 an ounce. Platinum futures for July were off 1.8% to US$1,458.40 an ounce.

In the energy market, oil futures finished lower on Tuesday, snapping a four-day winning streak. Traders are waiting on this week's updates on U.S. petroleum supplies.

June crude declined 0.6% to close at US$96.16 a barrel on the New York Mercantile Exchange, with the June crude futures contract expiring at the session's close.

China shares log fifth day of gains

Wed, 22 May 2013 08:40:00 +1000

China’s stocks rose for a fifth day, sending the benchmark index to its longest winning streak in three months, as technology and solar companies climbed on improving earnings prospects.

The Shanghai Composite Index gained 0.2 percent to 2,305.11 at the close, the highest since March 25. The five-day streak is the longest since an eight-day rally that ended Feb. 6.

Reasons attributed to the gains include: speculation the government is accelerating economic reform after saying investment projects for airports and gas fields won’t need pre-approval any more, speculation that no further curbs will be necessary on property buyers and the undervalued state of listed China stocks relative to other Asian markets.

Talga Resources ups iron ore resource in Sweden, looks for partner

Wed, 22 May 2013 08:20:00 +1000

Talga Resources (ASX: TLG) has logged a 28% upgrade to the resource base at its Swedish iron ore project, located 60 kilometres by road from state-owned Luossavaara-Kiirunavaara's Svappavaara iron mine and mill.

The project was acquired from Teck in 2012.

The new JORC resource is 112.0 million tonnes at 28.6% iron as magnetite with 87.0 million tonnes at 28.3% Fe in Indicated category and 25.0 million tonnes at 29.5%Fe in Inferred category.

Strategic partners are being sought to advance the project, which is located adjacent to current producing infrastructure and milling options.

While there is no known metallurgical data for the project, similar style deposits in the area might suggest that a premium iron concentrate could be produced by magnetic concentration and flotation.

The deposit lies adjacent to sealed roads and grid power, and is 60 kilometres from state-owned rail accessible by permit of the Sweden Transport Authority. There are multiple port options for export of bulk materials including Narvik to the north and Luleå to the south.

Talga's graphite projects are taking centre stage and a strategic partner is being sought for some or all of the Masugnsbyn iron project in Sweden.

Initial assays from Talga’s first drilling program at Raitajärvi project in northern Sweden revealed encouraging near surface widths and grades of flake graphite in early May.

Chevron-YPF deal heightens investor interest in Madalena Ventures Vaca Muerta shale oil acreage

Wed, 22 May 2013 06:07:00 +1000

Madalena Ventures' (CVE:MVN) shares are on the rise again today after investors and analysts weighed up the implications of news that Chevron (NYSE:CVX) and YPF have increased their investment commitments in the Vaca Muerta oil shale oil reservoir, where Madalena has interests in two blocks.

Chevron said it is preparing an investment to develop Argentina's Vaca Muerta, possibly the world’s second-largest shale oil reservoir, with partner YPF. On May 15, Chevron, the second-biggest U.S. oil company, and Argentine state-owned oil firm YPF signed a contract establishing terms for a definitive agreement that will start with a $1.5 billion investment and may reach as much as $15 billion.

"The [Chevron] deal size was increased to $1.5 billion from $1 billion, between Chevron and YPF, which is offset to Madalena’s Coiron Amargo block," Madalena's Chief Executive Officer Kevin Shaw said in remarks to Proactive Investors on Tuesday.

Calgary-based Madalena has two blocks in the Vaca Muerta and Agrio Shales at Coiron Amargo (35 percent W.I.) and Curamhuele (90 percent W.I.).

The development of Vaca Muerta, which means "dead cow" in Spanish, is still in the preliminary stages. The final YPF-Chevron agreement should be signed in July, once outstanding trade and tax issues are hammered out. The pilot program includes 100 non-conventional oil wells that are expected to be drilled in 2013. Under the terms of the agreement, YPF will transfer a 50 percent interest in the Loma Lata Norte and Loma Campana field.

YPF is expected to have approximately 10,000 barrels of oil equivalent per day, or boe/d of shale production now online in the Loma Lata area. YPF currently produces approximately 10,000 boe/d composed of 5,500 barrels a day of light oil, 1,700 of NGL’s and 16.8 million cubic feet per day of natural gas from the unconventional shales. The Loma Lata Norte and Loma Campana fields are located near Madalena’s Corion Amargo block.

Meanwhile, Madalena is driving ahead with Vaca Muerta shale drilling at Coiron Amargo with a rig expected to mobilize to the block within a 30 day period, with multiple wells to be drilled in the oil window of the shales in 2013 onward, according to Shaw.

Madalena continues to ramp up production through its horizontal resource plays in Western Canada, while also driving forward on plans to further unlock significant value across its shale assets within the Neuquen basin in Argentina.

In late April, Madalena released a resource statement on its unconventional shale resources on its three land blocks within the Neuquen basin.

The report, done by Ryder Scott Petroleum Consultants, showed a best case scenario of 34.8 billion barrels of oil equivalent total petroleum initially in place, 51 per cent of which is made up of crude oil and natural gas liquids.

Of this, in the best case, 257.4 million barrels of oil equivalent were "discovered petroleum initially in place", while 34.6 billion barrels of oil equivalent were termed "undiscovered".

Best case contingent plus prospective recoverable resources were estimated at 2.9 billion barrels of oil equivalent - comprised of 19.4 million barrels of "contingent" recoverable resources, and 2.8 billion barrels of "prospective" recoverable resources.

Madalena holds 135,000 net acres on the Coiron Amargo, Curamhuele and Cortadera blocks within the Neuquen basin. The company's exposure to multiple, high impact tight sand plays in the Neuquén Basin is key, specifically the Vaca Muerta shale - which the company calls the most tangible shale play outside of North America.

The main zones of interest for the independent resource evaluation focused on the Vaca Muerta shale, the Lower Agrio shale and Basal Quintuco, the company said, with the report based on data from 19 delineation and discovery wells on the blocks, as well as 3D or 2D seismic coverage.

At just over a $130 million market cap versus $1.5 Billion dollar transcations in the Vaca Muerta shale, Madalena has a significant value proposition and optionality for investors.

Mawson Resources gearing up for new exploration season in Finland

Wed, 22 May 2013 06:01:00 +1000

Mawson Resources (TSE: MAW) has gained even more evidence of the potential of its Rompas high grade gold project in Finland, according to the project update for the company’s flagship property released Tuesday.

Mawson, a Vancouver-based resource acquisition and development company with precious and base metal interests in Finland and Sweden, reported the finding in its compilation and assessment of results from the 2013 winter program for the Rompas high-grade, greenfield gold project located in northern Finland.

Further surface discoveries of multiple high-grade gold anomalies have heightened expectations of the Rompas' district, with one such discovery, Rajapalot, having expanded the project to more than 100 km2. A total of 58 new gold anomalous target areas have been marked for follow up during the summer field season.

To that end a team of ten Finnish geologists is to be sent to the project area in early June to pursue an intensive field season. These efforts are likely to be greatly assisted by the LIDAR airborne survey completed in 2012 which provides the field geologists more accurate data than that available previously, thus allowing for more rapid data collection than was possible before, ensuring that outcrops that would have once taken weeks to locate and then map in the years before completion of the survey can instead be identified and mapped in days.

Soil sampling carried out on non-selective, heavy mineral soil from the region of South Rompas turned up one of the largest accumulations of gold nuggets ever identified within a heavy mineral sample collected in the region (specifically within the Fennoscandian Shield), with a sample of 5 litres offering 5,000 gold nuggets. Further such heavy mineral sampling is planned on a larger scale in light of the success of this technique.

Shallow drilling and trenching from South Rompas has identified a mineralized trend such that 24 per cent of all trench and drill assays grade greater than 100 grams per tonne (g/t) gold.

In addition, a new electromagnetic ground survey has defined a subsurface 30 metre wide by 300 metre long conductor coincident with and immediately below the widest zone of continuous gold mineralization found at the project to date. This anomaly is part of a larger 2,500 m long conductor defined by airborne geophysics.

The company’s sample database for the project contains 1,171 samples which average 212 g/t of gold with 84 samples assay better than 100 g/t gold.

"We continue to build our business in the Nordic countries around Rompas, a project we consider to be potentially one of the world's most exciting district scale gold discoveries, hosting high-grade, near surface native gold mineralization, across multiple prospects over a large area of 100 km2,” said president and CEO Michael Hudson.

“We will maintain our exploration momentum and focus on shareholder interests by continuing to control overheads and investing their capital in the ground. We have confidence in our people and our projects to expand our business via exploration success."

Shares in the company were trading up on the TSX on the day of the project update’s release, rising from an open of 55 cents per share to hit 60 cents, a hike of over nine per cent.

WesternZagros begins aggressive drilling program

Wed, 22 May 2013 05:55:00 +1000

WesternZagros Resources (CVE: WZR) says it has begun its latest drilling program at the Garmian Block in the Kurdistan Region of Iraq.

The Calgary-based company began drilling at the Mil Qasim Upper Bakhtiari-1 well, the first of a three-well program geared towards exploring the Upper Bakhtiari Formation. WesternZagros predicts to have testing results sometime in the third quarter.

The drill project will also be the first of the company's five-well Garmian drilling program planned for 2013.

"Spudding this well is a key step in testing the Upper Bakhtiari Formation, a new reservoir which exhibited oil shows when we drilled the Mil Qasim-1 well in 2011/2012," said WesternZagros chief executive officer Simon Hatfield. "Subsequent review of logs and seismic data identified a relatively shallow, low-cost prospect."

Hatfield also said WesternZagros is on track with its other Garmian wells. The company is assembling the Hasira-1 rig in order to begin drilling in the next few weeks. The objectives of this well are to "appraise the extent of the oil leg previously discovered in the Jeribe reservoir at the Sarqala-1 well" and explore the Oligocene reservoir, which the company could not evaluate during prior activity.

The Hasira-1 rig is expected to take approximately seven months to drill, and will reach a depth of 4,100 metres.

Additionally, WesternZagros says the Baram-1 well is on track to start drilling in the third quarter of 2013. The well, which the company expects to take five months to reach a depth of 3,800 metres, will explore a possible extension of the oil leg in the Oligocene reservoir of the Kurdamir discovery.

WesternZagros also began drilling at the Kurdamir-3 appraisal well on the Kurdamir oil discovery in February. Testing results from Kurdamir-3, which is within five kilometres of the Kurdamir-1 and Kurdamir-2 discoveries, are anticipated in the third quarter.

WesternZagros has a 40 per cent working interest in the Kurdamir block, while Talisman Energy (TSE:TLM), the operator of the well, holds a 40 per cent working interest, with the Kurdistan regional government holding the remainder.

After what it described as a “breakthrough” 2012, due to its oil discovery at its Kurdamir-2 well, the company said it intended on aggressively exploring its properties this year.

Last month, WesternZagros closed a private placement of 11.4 million common shares priced at $1.25, raising $14.3 million. In March, WesternZagros received $123 million through a debt and equity financing by existing shareholder Crest Energy International.

WesternZagros, which is focused on oil and gas exploration and production in Iraq, has a market cap of $530.9 million.

Largo Resources to make its mark as lowest cost producer of vanadium globally

Wed, 22 May 2013 05:48:00 +1000

Largo Resources (CVE:LGO) is on path to becoming the lowest cost producer of vanadium in the world from a primary source, according to CEO Mark Brennan, with the company's Maracás project in Brazil on pace for commissioning in the fourth quarter.

"The all-in operating costs of $2.10 per pound of vanadium pentoxide equivalent are very low even compared to secondary sources of the material," the chief says in a recent interview with Proactive Investors.

"Look at vanadium pentoxide. The floor is at 4 or 5 dollars, below which you see production shut down. Even at the worst possible case for vanadium, we still make a lot of money."

Analysts agree. After a recent site visit to the company’s Maracás project, Euro Pacific Canada’s Luisa Moreno issued a research note on Largo, confident in the fact that the Canadian natural resources developer’s flagship property is slated to enter commercial production in 2014.

“The high-grade Maracás deposit has a mineralization that favours a relatively simple and economic process that could make Largo a low-cost producer of vanadium. The company’s project economics are robust."

The project, which is scheduled to eventually produce two vanadium products and an iron ore by-product, is projected to generate significant cash flow at current vanadium pentoxide (V2O5) prices - which are expected to increase over the intermediate term due to growing demand and unstable supply, added the analyst.

Indeed, the vanadium price assumptions used in Largo’s economic analysis from earlier this year were US$6.37 per pound of V2O5, and US$12.70 per pound of ferrovanadium (FeV), but according to Moreno’s research, industry reports forecast an increase in vanadium demand in 2013 and 2014, with demand expected to marginally exceed supply, and V2O5 prices forecast to reach US$11.00 per pound by 2017.

Largo’s economic report for Maracás, from March of this year, was based on a 1.4 million tonne per year processing plant capacity, yielding an estimated after-tax net asset value of US$554 million at an 8 per cent discount rate, and an after-tax IRR of 26.3 per cent.

All-in operating costs are expected at US$2.10 per pound of vanadium pentoxide equivalent, which includes a credit for the iron ore by-product, a natural effluent of the process, in addition to the two vanadium products of V2O5 and FeV. Capex is seen costing roughly $236 million, with about $200 million spent thus far.

Largo has already inked a six-year off-take agreement with international commodities trader Glencore Internationalfor 100 per cent of the project's output of the important steel alloy.

"The agreement will see Glencore pick up the material at the mine gates, meaning there are no transportation costs involved," says Brennan.

The project, which is fully funded and progressing on budget, is targeting annual average production of 11,400 tonnes of vanadium pentoxide (V2O5) equivalent over a 29-year mine life. Starting in year three, the plant will convert a portion of the vanadium pentoxide produced to ferrovanadium to generate two vanadium products, with an average of 3,830 tonnes of ferrovanadium, which is used in the production of steel.

In the first six months of production, the company expects to operate at 50 per cent capacity, and by the end of 2014, it is aiming to produce at 100 per cent capacity. After reaching a projected 14,000 tonnes of vanadium pentoxide in another 12 months, the company says it will look to further ramp up output.

The project has already received around 40 per cent of the equipment required for commissioning, with civil engineering well on its way to being completed and electrical-mechanical erection ramping up.

Production from the mine is expected to work out to around 7 per cent of world output of 75,000 tonnes a year, says Largo's chief, who doesn't expect to raise any equity capital, with a total cash position of some $40 million.

"We have debt facilities outstanding that we are drawing down on right now, and we may look at drawing down pre-payment facilities that we have with Glencore," the CEO explains.

Brennan is confident in the project, assuring that it is "the best deposit of its kind". "We have a low cost producer coming into the market, and no matter what happens with vanadium, it will be up and going."

Despite a second tungsten project in Brazil - where operations were suspended recently on account of the "worst drought the region has seen for 80 years" - the chief executive is firm on the fact that the real value in the company is the Maracás project, which has 13.1 million tonnes of proven and probable reserves at a grade of 1.34% vanadium pentoxide.

"We have the highest grade, highest quality and lowest cost vanadium deposit in the world that can also be expanded very dramatically. It is a fantastic ore body."

Maracás sits on Brazil’s Rio Jacaré intrusion, which has not yet been fully explored, indicating potential upside to expand resources. “If Largo is able to discover additional high-grade vanadium deposits on its claims, it could strengthen its position as a major future supplier of vanadium and vanadium products, for many years,” analyst Moreno concluded in her research note on the company.

The deposit also contains platinum group metals minerals, which were not attributed any economic value in Largo’s March 2013 report, but Largo will likely conduct additional testwork for possible recovery of these minerals to add future value.

The company, which is listed on the junior venture exchange in Toronto, is trading at around 19 cents, with a market cap of $165 million and just over 870 million shares outstanding.

Kirkland Lake Gold replaces reserves, increases resource

Wed, 22 May 2013 05:43:00 +1000

Kirkland Lake Gold Inc. (TSX:KGI) (AIM:KGI) has achieved success in both replacing proven and probable ounces, and in growing the resource base at its operations in Kirkland Lake, Ontario according to the company’s annual gold reserve and resource estimates (as at December 31, 2012) released Tuesday.

Explorations for the past calendar year have concentrated on the expansion of the high grade South Mine Complex (SMC) discovered in 2005 on the properties previously held under a joint venture with Queenston Mining Inc., with the additional goal of replacing the ounces already mined in both the SMC and the historic Main Break. To this end the company completed 200,000 feet of underground exploration drilling and 183,000 feet of surface exploration drilling during calendar 2012, with an additional 124,000 feet of underground production drilling completed during this period as well.

For the SMC, the figures for the reserve category were recorded as 139, 000 ounces proven and 669, 000 probable as at December 31 2012, down slightly from the 119, 000 ounces and 697, 000 ounces recorded in the same categories on the same date a year before, a drop of only a single per cent year on year after the recovery of 50,848 ounces from the SMC.

Mine wide reserves showed a similarly minor decrease, of 1.3 per cent, after the recovery of a total of 86,250 ounces (35,402 ounces from Main Break) in the period from January to December 2012. The proven reserves of 530, 000 ounces recorded as at December 31, 2012 and the probable reserves of 924, 000 ounces reported for the same period for a total of 1. 454 million ounces (Moz) are slightly down on the 539, 000 proven ounces and 934, 000 probable ounces – a total of 1.473 Moz recorded a year earlier.

The figures posted for resources in the measured, indicated and inferred categories for the South Mine Complex were well up, coming in at more than 24 per cent higher than the corresponding figures reported as at December 31, 2011, due in part to inclusion of the Queenston portion of the resource base, but also attributable to considerable exploration success which added an additional 33.8 per cent to the indicated resource total and an additional 45.4 per cent to the inferred resource total on top of the ounces gained by the purchase of the joint venture property alone.

While the lion’s share of resource increases were derived from the SMC, the historical Main Break also contributed to the increased numbers with mine wide measured and indicated resources now standing at 1.871 Moz, an increase of 15 .3 per cent on the figure of 1.623 Moz posted for the year before, with the figure for inferred resources reported as 1.157Moz an increase of 15.2 per cent on the figure of 1.004 Moz recorded for the year before.

"The intention of this past year's exploration program was to replace the proven and probable reserves mined by the company and grow the measured and indicated resource categories, both of which were successful," saidKirkland Lake Gold president Brian Hinchcliffe.

"Our total reserve and resource base is close to our target; therefore, going forward we will focus on replacing ounces mined at elevated production levels and maintaining current mineral inventory. We have therefore reduced next year's exploration underground footage to 94,000 feet and surface exploration footage to 145,000 feet from 200,000 feet and 183,000 feet, respectively."

Certainly Ocean Equities Ltd. was upbeat about the results, with the specialist natural resources brokerage saying in an analyst note issued Tuesday that the results augured well for Kirkland Lake’s potential as both a short and long term investment.

“The reserve and resource update shows that Kirkland did well last year to maintain its reserve inventory as well as bolt on additional ounces to its resource base through both acquisitions and exploration success. While the acquired ounces are a good immediate plus it is clear that the South Claims concessions have much more to offer the Company and this ties into the long term investment thesis for Kirkland.”

Shares in the company were trading up today on the TSX, gaining from an open of $3.53 to hit as high as $3.83 in intraday trading.

Lydian International says costs at Amulsar well below average

Wed, 22 May 2013 04:11:00 +1000

Total costs at Lydian International’s (TSE:LYD) Amulsar gold project are almost a third lower than the global average, according to new research.

The Armenia-based project’s total or all-in costs are US$750 per ounce against an average of US$1,211 for other producers, said Canadian broker RBC, which carried out the comparison for Lydian.

The difference between the total cost and gold price is Lydian’s profit margin and Tim Coughlin, Lydian’s chief executive, said the comparison showed “how remarkably robust the project is”.

RBC based its calculation on last year’s feasibility study and included mining, corporate and administration costs, sustaining capital expenditure (capex), exploration costs, royalties and transportation.

On the more widely used cash cost measure, Lydian also scored better than its rivals at US$469 per ounce compared to a global average of US$738, said RBC

Coughlin added: “Work continues on optimising design, production and overall cost parameters at Amulsar with a feasibility study update expected in the third quarter of this year.

“In these markets it helps to have all bases covered so as well as providing a "scaled-up" scenario which maximises debt-capacity and reduces payback, this study will also test a "scaled-down" option for Amulsar which invokes trucking as opposed to the conveying of ore for the initial production years of the mine.

“The permitting for the new mine layout is in the process leading up to community consultations and government and regional support for Amulsar remains strong.”

UPDATE - Aureus Mining's DFS ups reserves, reduces costs

Tue, 21 May 2013 20:48:00 +1000

---ADDS SHARE PRICE AND BROKER COMMENT---

The definitive feasibility study (DFS) at Aureus Mining’s (LON:AUE, TSE:AUE) New Liberty asset has outlined an "economically robust" gold project based on a flat gold price of US$1,400 an ounce.

Aureus added that the DFS has extensively de-risked the project from design, operational and environmental perspectives.

Capital and operating costs are estimated to a higher level of accuracy, the company said, while the DFS has increased the average production profile for the first six years of the life of the mine (LOM).

Based on a base case of a flat gold price of US1,400 an ounce, the New Liberty project in Liberia has a pre-tax net present value (NPV) of US$230mln, giving a pre-tax internal rate of return (IRR) of 29%.

The previous feasibility study based on a flat price of US$1,400 an ounce gave a pre-tax NPV of £225mln and a pre-tax IRR of 32%.

Using an average price of $1,400 an ounce over five years (assuming a sequence of average prices of US$1,600, US$1,600, US$1,500 and US1,300), the NPV rises from the US$234mln announced in the previous feasibility study to US$237mln, and the pre-tax IRR eases to 32% from 37%.

The study projects average annual gold production of 119,000 ounces over the first six years at an average grade of 3.6 grams per tonne (g/t), with total gold production over the eight year open pit LOM clocking in at 859,000 ounces, a 1.5% increase in the previous projection.

The LOM operating cash cost will average US$669 an ounce, using contract mining, which is 2.5% lower than the previous forecast.

The initial capital cost estimate has also gone down, declining 2.9% to US$136mln, excluding contingency costs.

Total revenue has been set at US$1.2billion and pre-tax cash flow of US$353 million is expected using a flat gold price of US$1,400 an ounce.

The proven plus probable reserve figure of 8.5mln tonnes 3.4 g/t for 924,000 ounces of contained gold, an increase of 1.6% on the previous feasibility study.

The share price, down around 17% in the year to date, lost a further 3% today. However, Shore Capital believes the market is completely overlooking the gold junior’s huge potential. “We continue to view Aureus as one of the top picks in the West African junior gold company sector,” said analyst Yuen Low.

John Meyer, of mining house SP Angel, added: “Improving the project economics has helped with project NPVs and approvals from the credit committee for the approval for the debt facility.

“Against the weaker price environment we expect this to be stress tested at lower gold prices with a US$1,250 an ounce being used as a base case.

“With funding arrangements in place and works started, the project is now well underway.”

Vatukoula Gold soars on share subscription at 15p

Tue, 21 May 2013 20:44:00 +1000

Shares in Vatukoula Gold Mines (LON:VGM) doubled on Monday morning as Chinese oilfield services firm DRK bought a 19% stake at more than twice the price on Friday.

SCD Energy, a subsidiary of DRK, has subscribed for 30mln shares at 15p each in a deal that will raise £4.5mln for Vatukoula (VGM), and give SCD 19.2% of the Fiji-based gold miner.

SCD will also be able to appoint its own director as chief operating officer once a suitable candidate has been identified.

The new strategic investor is not connected to Zhongrun, a Chinese mining group that already owns 29.9% of VGM and that also recently bought shares at 15p.

Under the agreement, DRK has agreed to work in conjunction with Vatukoula on the debt financing to fund the planned expansion programme of the gold mine.

If VGM enters into a US$40mln debt financing package facilitated or introduced by DRK within the next 120 days, the Chinese group will have the option to acquire another 24mln shares at 15p.

If exercised, DRK would then hold approximately 29.9% of the enlarged issued share capital.

DRK can nominate two directors, one of which, if suitably qualified, eventually will be appointed chief operating officer, Vatukoula said.

The funds raised from the subscription will be used for working capital purposes while VGM works to secure the debt financing.

The first £2.25mln tranche of the subscription is expected on 28 May and the remainder by 17 June.

DRK is a comprehensive oilfield service group engaged in engineering construction, technology service, chemical engineering and oilfield development.

VGM said DRK came to see the mine in January. DRK's presnece on the share register, along with that of Zhongrun, will give it access to Chinese capital for the US$40mln needed to proceed with the planned mine development at Vatukoula.

This development will see it open up deeper higher grade areas at the mine.

Shares were up 96% at 12.25p in mid-afternoon trading, after hitting 14p earlier in the day.

Xcite Energy shares advance after Bentley data deal

Tue, 21 May 2013 20:39:00 +1000

Xcite Energy (LON:XEL, CVE:XEL) shares advanced over 10% on Monday after it agreed to sell technical data from well tests on the Bentley field to an unnamed buyer for £10mln (US$15mln).

This comes just weeks after Xcite officially launched a farm-out process to find a development partner for the Bentley project.

In the statement, which also included the oil junior’s financial results, chief executive Rupert Cole said the transaction was ‘complementary’ to the farm out process.

“This has been done without compromising the company's intellectual property and is a good commercial outcome that provides additional working capital,” he said.

Once the binding agreement with the unnamed buyer is completed the cash will be added to the £20.4mln the group had on the balance sheet at the end of March.

The technical data deal is something of an unusual transaction.

Typically in a farm-out process, where a data room is set up, a potential partner wouldn’t pay to access technical information. Instead it would merely sign confidentiality agreements.

So, a potential partner paying £10mln upfront to find out more about the project could be considered to be a positive step forward, according to Oriel Securities analyst Peter Griffith.

“Someone has stumped up money to have a look [at the data], they wouldn’t do that if they weren’t serious,” Griffiths said.

In a call with Proactive Investors, Xcite chief Rupert Cole would not comment specifically on the potential ramifications in this regard.

However, he did point out that unlike information obtained via a data room, this information would have wider rights of use.

Analysts, however, believe the relevance of the data would be largely confined to the Bentley field, and it is most likely that the information is being bought by a potential partner.

Until a farm-out deal is announced, investors are left to come to their own conclusions about what exactly the buyer’s motivation is.

From an investor’s point of view, the value of the data beyond the context of the Bentley field is not known, and it remains to be seen whether the deal is in fact part of the buyer’s due diligence, and a precursor to making Xcite an offer.

VSA Capital’s oil experts describe the news as a positive step in the farm-out process.

“Whilst it is still a very early first step in the process it does show that there is interest from industry in this asset; however, it is no guarantee that a farm out will occur in the longer term,” the broker said in a note.

As is common for oil companies at this crucial phase in their development Xcite’s results showed it was loss-making; for the first three months of 2013 the shortfall was £1.7mln.

However, the business’s economics were recently enhanced by an upgrade in reserves to 198mln barrels in the proven (1P) category and 250mln barrels and 312mln barrels respectively for the 2 and 3P reserve estimates.

Finally, success in the 27th licensing round in the North Sea added blocks 9/4a, 9/8b and 9/9h to the portfolio and, with them, four identified prospects to the future exploration and appraisal programmes in the wider Bentley area.

Motive Television's signals loud and clear

Tue, 21 May 2013 20:35:00 +1000

Motive Television (LON:MTV) has been one of the most widely traded shares recently, suggesting investors are beginning to take notice of the company.

The trading interest was there even before the company caused a stir in the UK with its announcement last week that its Tablet TV offering could offer free-to-air content to Freeview users.

In a world where the consumption of content seems to be rising inexorably, Motive Television’s technology is set to satisfy a very real and growing need.

“What we’re really good at, is figuring simple delivery of content over any network, whether its satellite, terrestrial, cable or telecom,” explains Len Fertig, chief executive officer of Motive.

The company offers a bespoke service to network operators and content providers. If, as the old saying goes, content is king, then Motive is the kingmaker.

Though the company has been around for a long time, Motive Television as we know it began life in late 2010 when it acquired, melded and developed technologies that now form the core of its “TV Anytime, Anywhere” offering.

Motive’s first client was Italian media giant Mediaset, with Motive’s technology adding subscription video-on-demand to their otherwise over the air pay TV service.

“It’s a very simple example of how our technology generates new revenues. They have several hundred thousand subscribers to that particular add on, and we know that because we know how many licences we issue to them,” Fertig explains.

The company has two other customers for its bespoke TV Anytime, Anywhere service: Digiturk, the largest direct-to-home pay platform based in Turkey, and multi-national broadcaster CME, a client that, coincidentally, Fertig co-founded in 1993.

Digiturk has been in soft launch for some time with its additional services offering, including video-on-demand (VOD) packages based on Motive’s technology.

For CME, Motive will develop an enhanced version of what they have developed for Mediaset, and that should be launched by the end of the year in Prague. It will subsequently be rolled out to other countries.

The company also has a consulting relationship with a South African group called Siyaya, which plans on implementing Motive’s technology once it gets a broadcasting licence, expected later this year.

TV Anytime, Anywhere might be regarded as the company’s bread and butter business, dealing as it does in the well-established world of television broadcasters.

The souped up set-top box delivering added features, such as VOD, second screen options (watching different programmes on different devices from a single feed) and catch-up TV, might seem a bit less glamorous than the currently sexy subject of TV content on tablet devices.

However, Rupert Murdoch’s desperation to grab full control of British Sky Broadcasting suggests there is plenty of money still to be made in this area, but, be that as it may, Fertig thinks the real upside in this business is in the developing world.

“The terrestrially-delivered enhanced TV business is particularly appealing in the developing world, where satellite and cable are not that prevalent, and where the population cannot support paying fifty quid a month [for pay TV].

“The huge upside is in the developing countries, which is the BRIC countries, countries like Mexico, countries in eastern Europe, and Asia and Africa,” Fertig assured Proactive.

But you want to hear about Tablet TV, right? What’s that all about?

For Motive Television it is about what all of its business lines are about: providing additional capabilities to content platforms and providers so they can generate more revenue from their existing assets.

For the user, it is about being able to view, and record, content on their tablet devices, without even being connected to the internet.

Is this magic? How can this be so?

Well, it is magic if, like me, you don’t understand how radio waves work, but essentially it simply entails turning a tablet computer into a television.

“We’re talking about having an antenna-tuner device, and a matching app in the tablet that interacts with the antenna device, such that people could then watch TV without having to deal with an internet connection, without having to be in a hot spot, without having to be in their home,” Fertig said.

Given the success of iPlayer, and the ocean of content available on internet connected devices, is there really a demand for the 21st century’s answer to the transistor radio?

Fertig says yes, and lists a number of reasons why.

You don’t have to search for the programme you want to watch; you aren’t restricted to content the broadcaster says you can watch; with Tablet TV you can record it for your own personal use later on or set up a recording in advance; and, perhaps most importantly of all, there are no bandwidth issues.

Like Freeview, the viewing and personal video recorder (PVR) capabilities will be free once you have the antenna and the app, and you’ll get a selection of optional VOD packages, should you want them.

Internet service providers make heavy users of their service pay extra, and, usually, heavy use is associated with the downloading of video content. On the other hand, you’ll never get a traditional TV station that relies on advertising revenues complaining that you are watching too many of its programmes.

One such traditional TV broadcaster, Granite Broadcasting in the US, is collaborating with Motive on the Tablet TV idea.

It is interested in getting more eyeballs on its content and also in providing OTT content as well.

The TabletTV technology will be demonstrated at Granite’s TV station in San Francisco later this year, although exactly when it is hard to say because it is up to the engineers. Fertig’s best guess is around the end of June/beginning of July.

“By some point in the autumn, we will have a couple of thousand little devices that we will be able to seed the market in San Francisco with, to beta test, and see who uses it, and why do they use it.

“That will be followed in early 2014 by the commercial launch in San Francisco, after which we will be rolling out to all the other Granite [Broadcasting] cities, and other broadcast cities, with the idea that, over a couple of years, we will have rolled out to all markets in the US.”

By roll out, Fertig means on the VOD side, where VOD is specific to content going through a particular broadcaster in a particular city.

As for the rest of the world, Motive has the rights to exploit Tablet TV, which it intends to do so through a series of partnerships.

The third strand of the business, Mocast, is not so far along the development chain, but the company has completed proof of concept trials, and Fertig thinks the concept is likely to be of interest to the big telecoms companies.

In a nutshell, Motive has been asked to provide a “watch later” facility, so that network providers can regulate traffic, by spreading the load.

For the viewers, it means a better TV experience, undisturbed by delays because of internet congestion, so it’s a win-win.

Furthermore, you can replicate the “series link” feature on PVRs, ensuring you catch all episodes of your favourite TV series or all films in a given series, such as The Godfather or Star Wars.

Traffic management is a big concern for network operators, who have to ensure that their “pipe” is fat enough to cope with peak usage, even if that peak only lasts for a few minutes a day.

Furthermore, as usage reaches a peak level, response time deteriorates, so the ability to time-shift usage, so that, for instance, some users start watching the Eurovision Song Contest at 8.15pm instead of 8.00pm, that spreads the load a bit and improves response time.

“If you can reduce the peak usage, that’s a big capital expenditure saving on infrastructure. We’re talking numbers with ten figures. It’s a lot.”

“During that peak, there may be some people who are denied access to the content they want to access, so they walk away, and that represents lost revenue,” Fertig said.

As you may have deduced by now, revenue is what motivates Motive and its customers.

Iofina wraps up US$15mln convertible bond issue

Tue, 21 May 2013 20:30:00 +1000

Showing that ambitious growth companies can acquire finance on decent terms for good projects, Iofina (LON:IOF) has announced it has wrapped up its US$15mln convertible bond issue.

The cash injection will be used to accelerate the roll-out of its revolutionary IOsorb plants that extract iodine from the brine taken from onshore oil and gas wells, in the States.

Iofina will pay a coupon of 6.5% annually on the debt issued to Stena Investments, which can be converted into shares at £2.06 per share, or repaid in full in two years.

Chairman Dr Chris Fay said: "Iofina is pleased to close out the issue of this US$15mln convertible bond.

“The company can now focus on the accelerated roll out of its next IOsorb plants enabling our current momentum to be maintained."

The group has permanent plants in Texas and Oklahoma, and Iofina is also developing a range of smaller mobile satellite units to deploy where there is a lower brine throughput but high iodine concentrations.

In the year to date the share price has advanced 146% on the back of the successful roll-out.

Xcite bags US$15mln for Bentley Field data

Tue, 21 May 2013 20:26:00 +1000

North Sea developer Xcite Energy (LON:XEL, CVE:XEL) will strengthen its already solid financial position with the sale of technical well data from the company’s Bentley Field for £10mln (US$15mln).

Once the binding agreement with the unnamed buyer is completed the cash will be added to the £20.4mln the group had on the balance sheet at the end of March.

Chief executive Rupert Cole told investors: "We are very pleased to have completed this agreement, which is complementary to the recently commenced farm-out process, and further validates the quality of the information collected from our two well programmes.

“This has been done without compromising the company's intellectual property and is a good commercial outcome that provides additional working capital."

That hunt for partners to help develop the heavy oil field continues, Xcite confirmed in its quarterly update.

As is common for oil companies at this crucial phase in their development, Xcite was loss-making; for the first three months of 2013 the shortfall was £1.7mln.

However, the business’s economics have been enhanced by an upgrade in reserves to 198mln barrels in the proven (1P) category and 250mln barrels and 312mln barrels respectively for the 2 and 3P reserve estimates.

Finally, success in the 27th licensing round in the North Sea added blocks 9/4a, 9/8b and 9/9h to the portfolio and with them, four identified prospects to the future exploration and appraisal programmes in the wider Bentley area

Shanta Gold expects improved throughput at New Luika

Tue, 21 May 2013 20:17:00 +1000

Increased capacity at the plant from June this year should see Shanta Gold's (LON:SHG) volumes at New Luika improve in the second half, outgoing chairman Walton Imrie told Monday's AGM.

The mine began producing last summer and gold sales of over 22,000 ounces have been made to date.

"The board remains very encouraged and excited in the longer term growth of the company. We recently announced a five year production plan for New Luika mine which is forecast to produce 430,000ozs of production at 6.3g/t.

"The major New Luika ore bodies remain open at depth, with the potential to become an underground mine which, combined with the ongoing revised feasibility study for the Singida project as well as the consolidation of the Lupa Goldfields, gives the company significant opportunity to deliver longer term value for shareholders," he said.

Last month, Shanta opted for a number of forward sale contracts in response to the current gold price environment.

This will see 30,000 ounces of gold delivered up to December. The sales equate to 43% of the forecast annual production and were secured at an average price of US$1,429 per ounce of gold.

"We continue to make constructive progress in relation to restructuring our near term debt and expect to provide further updates shortly," Imrie told shareholders on Monday.

SolGold welcomes new Ecuador mining bill

Tue, 21 May 2013 20:09:00 +1000

SolGold (LON:SOLG) today welcomed a new mining bill in Ecuador that it expects to give a major boost to the industry in the country.

The bill contains a number of “encouraging concessions” including proposed ceilings on mining royalties and promotes for capital payback prior to the application of windfall taxes, said the company.

SolGold’s flagship projects, at Cascabel and La Encrucijada, are located in Ecuador.

It said it expects the new bill to pass into law quickly and will expedite drilling programmes on both projects starting with a 2,500 m programme at the high grade Alpala Project at Cascabel.

The drill contractor selection process has completed while six drill hole locations have been finalised to test outcropping porphyry occurrence at Alpala over 1km to a depth of 600m.

The new Mining Act sets a framework for the development of Kinross Gold’s US $1.3 bn 14moz Fruta del Norte Project, Southern Ecuador and the Ecuacorriente $1.4 bn El Mirador copper project.

SolGold can acquire an 85% interest in Cascabel and the La Encrucijada projects.

The company added that new chief executive Alan Martin had started his role and has travelled to the projects this week to review permitting, drill sites and contractor finalisation.

SolGold shares, which more than doubled on Friday, eased a touch today to 3.81p.

UPDATE: Sirius Minerals "confident" on approvals process for York potash

Tue, 21 May 2013 20:01:00 +1000

--- Adds more detail and share price---

Sirius Minerals (LON:SXX) said it was "confident" that objections received for its York potash project will be appropriately dealt with through the planning process.

It updated investors on the approvals process on Monday - saying objections had been received from the Environment Agency and Natural England.

The firm said it was confident that these would be dealt with through conditions placed on any approval for the project and its experts along with the two organisations would be having detailed discussions to seek a solution before the planning determination meeting on July 2.

Chris Fraser, managing director and chief executive of Sirius, said: "The planning case for the York potash project remains compelling as it will deliver many benefits to the local and national economies, whilst also providing a unique multi-nutrient form of potash for the agriculture sector.

"We remain confident in our submission and believe that detailed planning conditions can satisfy these objections and provide the reassurance of either no impact on neighbouring moorland, or achieving an improvement, without the need for unnecessary delays to the determination of this important project."

The objections have been submitted as part of the North York Moors National Park Authority's statutory consultation process and centre around four key issues.

One from Natural England is an in-principle objection on landscape grounds because the planned site is within a National Park.

Sirius said it believes it has submitted a world-leading design that demonstrates best practice for sustainable development.

The Environment Agency raised an objection relating to foul drainage plans. The company said an assessment done as a part of its planning application concluded there would be "no long term significant impact" with certain mitigating measures put in place.

The other two objections relate mainly to general water related issues and the possible impact on a relatively small area of protected moorland to the west of the mine site.

Sirius said it had conducted a detailed hydrological risk assessment as part of its recent submissions but noted that within these objections it was suggested more survey data may be needed to better understand the possible impacts of the construction.

Sirius also said today it would meet with the MoD (Ministry of Defence) this week to try and resolve any outstanding issues about the impact of the project on the RAF Fylingdales facility.

Sirius added that the it will also be providing responses to reports issued by the National Park Authority about the potash market and about the project's potential impact on tourism.

"The company is undertaking detailed reviews of these documents and is preparing formal responses to each of them as, individually, they contain statements and conclusions that are inaccurate," it said in today's statement.

Sirius shares were lifted 1% following the news - to stand at 25.25p each.

UPDATE: Leni Gas & Oil dispute with Mediterranean Oil & Gas to go to trial in 2014

Tue, 21 May 2013 19:48:00 +1000

-- Adds likely trial date and detail about legal costs --

The dispute between Leni Gas and Oil (LON:LGO) and Mediterranean Oil and Gas (LON:MOG) is to go to trial.

A public case management conference was held on 17 May at which the court approved the timetable trial, and stipulated that disclosure of relevant documents by each party must take place by 19 July of this year.

Mediterranean Oil & Gas said that under the timeline agreed, the trial is likely to be held in March 2014.

The dispute relates to the sale by Leni Gas (LGO) of its interest in the Malta Area 4 production share contract to Mediterranean in August of last year.

The sale took place just 23 days before Mediterranean farmed out an interest in Malta Area 4 to Genel Energy.

Mediterranean Oil & Gas (MOG) had requested the court to consider an application that LGO provide security for MOG's legal costs in the event that LGO is unsuccessful in the litigation.

The court turned down this request.

“Our request for security for costs has no bearing whatsoever on the outcome of the case or the merits of the claim that LGO has made against us, which are due to be considered by the court in 2014," noted Dr Bill Higgs, chief executive of MOG.

blur Group strengthens international sales team

Tue, 21 May 2013 19:44:00 +1000

Fast growing business services group blur Group (LON:BLUR) has made two senior appointments to strengthen its international sales teams.

Dan Murphy has been made Head of sales for the US and Sat Ramewal is Head of Sales for Europe, Middle East and Africa (EMEA).

Both report to blur’s Global Head of Sales, Gerry Cross.

“With extensive experience in the IT and telecoms sectors, Dan and Sat are ideally placed to build sales teams that position blur 3.0 as a platform for large enterprises needing to find a more efficient and cost-effective way of buying services and move companies to Exchange adoption,” the statement from blur said.

Forbidden Technologies: Atos launches FORscene

Tue, 21 May 2013 19:40:00 +1000

Forbidden Technologies (LON:FBT) has revealed that systems integrator Atos is launching Forbidden's FORscene product in South Africa over the next two weeks.

The cloud-based video specialist unveiled Atos as a client in February, adding FORscene, Forbidden’s editing platform, to Atos's South African portfolio.

It also means Atos can run its own FORscene cloud, providing hosting and administration, customer support and consulting on web-enabled workflow solutions to media clients across Africa, including broadcasters and advertising agencies.

Atos is hosting two launch events this month, one in Johannesburg and the other in Cape Town. Guests will include leaders in the broadcast, educational, governmental and media sectors.

“Television and video are undergoing a technology driven transformation,” said Forbidden chief executive Stephen Streater.

“With its own FORscene cloud, Atos is well placed to lead this growth in Africa.”

Forbidden has attracted a number of big names since the Olympics last year when it partnered with web giant YouTube. It now counts sports video editing heavyweights EVS and Deltatre as clients.

Vatukoula Gold Mines gets cash injection from oilfield group

Tue, 21 May 2013 19:36:00 +1000

A Chinese oilfield services group is to take an almost 20% stake in Vatukoula Gold Mines (LON:VGM) at a substantial premium to the current share price.

SCD Energy, a subsidiary of DRK Energy, has subscribed for 30mln shares at 15p, which will raise £4.5mln for Vatkoula, and give SCD 19.2% of the Fiji-based gold miner.

SCD will also be able to appoint its own director as chief operating officer once a suitable candidate has been identified.

Under the agreement, DRK has agreed to work in conjunction with Vatukoula (VGM) to source the required debt financing to fund the planned expansion programme of the gold mine.

If VGM enters into a US$40 mln debt financing package facilitated or introduced by DRK within the next 120 days, DRK will have the option to acquire another 24mln shares at 15p.

If exercised, DRK would then hold approximately 29.9% of the enlarged issued share capital.

DRK will be able to nominate two directors, one of which, if suitably qualified, will eventually be appointed chief operating officer, Vatukoula said.

The funds raised from the subscription agreement will be used for working capital purposes while VGM works to secure the debt financing.

DRK is a comprehensive oilfield service group engaged in engineering construction, technology services, chemical engineering and oilfield development.

Aminex farm-out talks continue

Tue, 21 May 2013 19:31:00 +1000

Aminex (LON:AEX) has revealed that it is still in talks with interested parties over a farm-out deal of its Ruvuma basin prospects in Tanzania.

The company has a 75% stake in the production sharing agreement, with Solo Oil holding the remaining 25%. The duo are trying to sell their interests in the highly prospective basin, which is located near the massive offshore gas field development projects in East Africa.

Satisfactory bids were not received before the closing bidding date in March, but Aminex divulged that detailed discussions have taken place since this date.

Due to delays, Aminex said it is no longer feasible to complete the work planned for the first extension period by December.

Executive chairman Brian Hall said: “2013 to date has been a complex and challenging period for Aminex and, while shareholders will be disappointed with the delay in farming out our Ruvuma interests and divesting the US assets, in recent weeks we have had a number of encouraging indicators on several fronts which lead me to believe that we can be optimistic for the company's future.”

Aminex said it would be appointing a new chief executive in the coming months, as well as bolstering the small management team.

Sirius Minerals "confident" on approvals process for York potash

Tue, 21 May 2013 19:25:00 +1000

Sirius Minerals (LON:SXX) said it was confident that objections received for its York potash project will be appropriately dealt with.

It updated on the approvals process, saying objections had been received from the Environment Agency and Natural England.

The firm said it was confident that these will be appropriately dealt with via conditions to an approval for the project.

Chris Fraser, managing director and chief executive officer of Sirius, said: "The planning case for the York Potash Project remains compelling as it will deliver many benefits to the local and national economies, whilst also providing a unique multi-nutrient form of potash for the agriculture sector.

More follows.......

InterMet Resources adds Merchant Opportunities Fund as substantial shareholder

Tue, 21 May 2013 18:00:00 +1000

InterMet Resources (ASX: ITT) has added Merchant Opportunities Fund as a substantial shareholder with a 9.45% stake in the company.

Merchant Opportunities Fund had acquired the 9.5 million shares from 1 February 2013 to 19 March 2013 at prices ranging from $0.02955 to $0.001.

InterMet Resources had in April confirmed the magnetic signature over two ultramafic intrusives from preliminary analysis of a detailed ground magnetic program completed at its Calypso Nickel Project in Western Australia.

This indicates that a nickel intersection made by BHP Minerals in the mid 1980’s may coincide with a zone of slight magnetic destruction.

The Calypso Project is an early stage nickel exploration project located within the southern extent of the highly endowed Agnew-Wiluna Nickel Belt, which plays host to several world class deposits, along with a number of smaller nickel resources.

These include the 335 million tonne at 0.516% nickel Mount Keith, Perseverance, the 189 million tonne at 0.69% nickel Honeymoon Well, and the 60 million tonne at 0.813% nickel Cosmos Deeps.

Condor Blanco Mines to update drill results from Carachapampa in Chile

Tue, 21 May 2013 17:40:00 +1000

Condor Blanco Mines (ASX: CDB) has been granted a trading halt by the ASX, with its shares placed in pre-open, pending an announcement regarding drilling results from the Carachapampa gold-silver project located in Northern Chile.

The current drilling program at the project has been using two diamond drill rigs, with double shifts on both rigs implemented.

Drilling is testing induced polarisation chargeability and resistivity geophysical targets considered to represent large zones of sulphide and silicification, with the modelled depth to these targets is from 150-200 metres below surface.

The halt will last until the earlier of an announcement being made to the market, or the opening of trade on Thursday 23rd May 2013.

Gold price gains to within a whisker of US$1400 an ounce

Tue, 21 May 2013 17:20:00 +1000

Gold has received some renewed buying momentum in the spot market with the yellow metal currently trading at US$1397 an ounce.

In the last 24 hours the gold price has peaked at over US$1402 an ounce, and highlighting the volatility the price dipped to US$1354 an ounce at the end of last week.

The falling Australian dollar has helped to ease the impact on domestic producers, with the current rate of AUD / USD 0.982865 pricing an ounce of gold in the local currency at around A$1410 an ounce.

Aphrodite Gold's funding negotiations move into due diligence, SPP extended

Tue, 21 May 2013 17:00:00 +1000

Aphrodite Gold's (ASX: AQQ) negotiations with funding partners is moving than faster than anticipated judging by the beginning of due diligence and a technical site visit to the Aphrodite project in Western Australia.

The project is located 65 kilometres north of Kalgoorlie in the Eastern Goldfields of Western Australia.

In mid-May, the company reported it was is in discussions and negotiations to secure funding for the project with interest from major mining and investment companies, from mainland China, Hong Kong and Singapore.

The preferred funding option was to bring in a Joint Venture partner or major equity investor to raise all the funds necessary to get the Aphrodite Gold Project into production by 2015.

It was noted the recent fall in the gold price has escalated interest from Asian markets, possibly as a result of a perceived better entry price for funding.

Aphrodite had appointed Target Engineering Solutions' Joel Chong to assist in negotiating agreements and act as a link negotiator.

TES has history in the China/Australia mining industry, trade and services.

Share Purchase Plan - extended to 20 June 2013

A Share Purchase Plan has been announced to shareholders at $0.04 per share, with individual shareholders registered at 23 April 2013 entitled to take up to a maximum value of $15,000 (375,000 shares) by the close date of 21 May 2013.

The company said in a statement that in light of the recent advancement of negotiations over the Aphrodite Gold Project, it was decided to extend the Offer so that shareholders will have access to updated information in making the decision whether to invest.

By then Aphrodite said it will be in a position to announce updated details of negotiations with potential Joint Venture partners, and also at that time further technical information on the Aphrodite Project should also have been received for announcement.