Proactiveinvestors Australia short news

Equatorial Resources: Broker highlights importance of metallurgy at Mayoko-Moussondji

Wed, 23 May 2012 23:20:00 +1000

Results from further metallurgical testing is a more important project milestone than the grades for Equatorial Resources' (ASX:EQX) maiden resource for the Mayoko-Moussondji iron ore project, says broker Ocean Equities.

It is the results of such tests, due in the second quarter of this year, which are more likely to trigger a de-risking of the share price, rather than the resource estimate for the project in the Republic of The Congo earmarked for Q3 this year, says analyst Sam Spring.

Last month, the firm revealed promising results from sampled ore at the project confirming that surface mineralisation had the potential to produce a range of premium iron products - of 65.7 per cent iron for lump products and 64.8 per cent iron for fines.

Following the tests, the firm said these premium products could be produced - using simple techniques.

Current drilling at the project is designed mainly to target potential DSO (direct shipping ore) mineralisation and oxide iron mineralisation, which is easily upgradeable to a premium product.

Assays continue to return high grade mineralisation of up to 61.4 per cent Fe at or near surface with DSO and enriched hematite confirmed along 2.5km of strike and drilling has been accelerated, noted analyst Spring today.

Spring said he expected further metallurgical analysis to highlight Mayoko-Moussondji's "unique" ability to upgrade in-situ 40-60 per cent Fe hematite to a premium product of more than 63 pct lump and fine products.

The economics of upgrading the three ore types - premium, lump, and fines is likely to mean a modest increase in capex to a base line DSO project resulting in a significantly higher net present value, pointed out the analyst.

Initial metallurgy has shown that the project could produce a range of premium iron ore products supporting Equatorial's confidence to invest capital and develop ancillary infrastructure, and enabling the potential rapid commercialisation of an initial 5Mtpa (million tonnes per annum) enriched hematite operation, he added.

Mayoko-Moussondji consists of five main iron ore prospects with an aggregate prospective strike length of over 46 kilometres.

Investigator Resources to follow up 2.25% silver discoveries at Paris, adds graphite search to mix

Wed, 23 May 2012 16:50:00 +1000

Investigator Resources (ASX: IVR) shares have risen nearly 12% intra-day today on a day when the broader Australian market is a sea of red, the reason being the start of the next phase of drilling at its Paris silver prospect following up previous stellar high grade silver intersections.

Astute investors will realise these previous intersections, which include up to 2.25% silver, are extremely high grade and rarely found in Australia.

Adding extra spice to the exploration equation is the regional graphite potential with widespread hits recorded in historic drill data, including a substantial shallow intersection of 15 metres at 12% total graphitic carbon at the Barna Hill tenement.

A preliminary review of the graphite potential within Investigator’s regional tenements has identified several areas with good potential where graphitic schists were intersected in past drilling.

High grade silver

Last month Investigator uncovered the first of the mineralised feeder structures at Paris which indicates a 3 to 7 metre wide vertical structure assaying over 400g/t silver.

Importantly, this discovery offers depth extensions for high grade silver mineralisation with increasing gold credits already evident in some of the intersections.

Recent assay highlights include 7 metres at 1,810g/t silver from 31 metres, 10 metres at 432g/t silver from 49 metres and 19 metres at 965g/t silver from 42 metres.

From the central feeder zone, notable intersections included 14 metres at greater than 427g/t silver from 97 metres.

The potential depth extensions to the Central Feeder were previously recognised with consistent intersections of up to 14 metres at 907g/t silver achieved by prior shallow drilling along 500 metres of strike tested.

Investigator has identified new feeder targets with an aggregate of another 2 kilometres of untested strike length which adds considerable exploration potential to Paris.

Further exploration upside was found from an initial petrological study which showed the silver is dominantly primary sulphide mineralisation, which is a positive for potential recoveries.

Drilling progress

One diamond drill rig has begun large diameter coring for geological and metallurgical assessment. A total of three large diameter holes will drill the North East manto zone, the northern end of the Central Feeder and the South East manto zone.

Another drill rig will also begin soon to start testing the Central Feeder zone and other feeder targets along with the first rig when it finishes the large diameter holes.

Eyre Peninsula – Emerging Mining Province

The Paris prospect lies adjacent to a new mining operation about 50 kilometres away on the Eyre Peninsula in South Australia.

The prospect is situated around 17 kilometres from the township of Kimba and the Eyre Highway, and about 200 kilometres from heavy engineering facilities in Whyalla and Port Augusta.

Interestingly, Paris is also located around 250 kilometres southwest of BHP Billiton's (ASX: BHP) Olympic Dam operation and about 350 kilometres south of OZ Minerals' (ASX: OZL) Prominent Hill mine.

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Centius Gold chases mineralisation in parallel quartz reefs at Dead Horse in NSW

Wed, 23 May 2012 16:20:00 +1000

Centius Gold (ASX: CNS) is embarking on a drilling campaign at what can certainly be considered a highly prospective prospect, considering a previous surface sample assayed 1530 grams per tonne (g/t) gold.

The sample was from a dump, and now Centius will use reverse circulation drilling to test the the Dead Horse prospect on the Turon tenement, which is located west of Sofala in New South Wales.

The prospect is located on an interpreted overturned syncline, with two parallel quartz reefs running along the access of the syncline. The old workings at Dead Horse were much larger than the surrounding workings, and the surface expression of the pit covers an area 10 metres by 30 metres, which is also open at depth.

Two adits were driven into the Dead Horse reef from the base of the ridge during previous exploration, but it is not known whether these intersected the lode.

Adding some interest to the drilling, black shales are mapped along the ridge, and these are interpreted as a possible high grade bonanza Gympie style deposit where the reef intersects the carbon rich shales.

The battery located around 500 metres down slope from the shaft, which the company said suggests that the only material previously processed were black shales.

Lachlan Fold Belt exploration

In other news for Centius, the company will look to commence drilling at the Battery Creek porphyry target at the Lunatic tenement in the next few months.

Previous exploration of the Battery Creek area by CRAE in the 1980’s and 1990’s mapped a 200ppm copper soil geochemical anomaly.

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Alliance Resources: Itochu Corporation to take strategic 14.9% interest

Wed, 23 May 2012 15:50:00 +1000

Alliance Resources (ASX: AGS) has caught the attention of Japan’s Itochu Corporation with the pair set to form a strategic partnership in which Itochu can acquire a 14.9% equity interest in Alliance or wholly owned subsidiary Alliance Craton Explorer.

Itochu Corporation is a major global uranium trader with extensive interests in the uranium sector.

The Fortune Global 500 company has a net income in excess of A$3.7 billion and a market cap. of around $16 billion.

In addition to securing a 14.9% interest, Itochu also has the option to acquire a further 25.1% of equity in Alliance Craton Explorer.

The importance of this agreement is that if Itochu elects to subscribe for a 14.9% interest as well as exercise the option to acquire an additional 25.1%, Alliance will be fully funded for the construction of a standalone in-situ recovery and uranium processing plant at the Four Mile Project.

The Four Mile Project, in which Alliance holds a 25% interest, is located 550 kilometres north of Adelaide in South Australia.

The project comprises two large, high grade deposits which host an Indicated and Inferred Resource of 9.8 million tonnes at 0.33% for 71 million pounds of contained uranium.

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Lakes Oil spuds onshore Gippsland Basin well, targets oil and tight gas

Wed, 23 May 2012 15:20:00 +1000

Lakes Oil (ASX: LKO) has spudded a new exploration well in the Gippsland Basin targeting both a basin wide tight gas play as well as oil shows encountered at a previous well that was drilled last year.

Besides assessing the tight gas Yallourn North‐1A, Holdgate-1 will also assess the oil potential of the lower Strzelecki Group / Rintouls Sandstone that had shown signs of oil in cores cut from the Yallourn North‐1A located about 28 kilometres to the northwest.

Lakes added that Holdgate-1 has added advantage of drilling a large surface anticline which could provide a potential trap for liquid hydrocarbons.

The earlier Moreys-1 well in the Otway had intersected a tight gas interval which the company said was similar to those encountered in the Strzelecki Group present in Gippsland Basin wells.

Lakes said this opened up the possibility of a tight gas play across a wide area of the Otway Basin.

Armour Energy (ASX: AJQ) is funding the cost of Moreys-1 to A$2.5 million to earn its 50% stake in PEP 169 and is also paying for drilling of Holdgate-1.

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Northern Iron to supply India’s Tata Steel more offtake

Wed, 23 May 2012 14:50:00 +1000

Northern Iron (ASX: NFE) has secured an increased offtake agreement with India’s largest private sector steel company, Tata Steel, which will see the company now supply around 1.8 million wet tonnes of concentrate.

Tata is also India's second largest and second most profitable private sector company, with consolidated revenues of $26 billion and net profit of over $1.9 billion in the year ended March 31, 2011.

Globally, Tata is the tenth largest steel producing company, with an annual crude steel capacity of 23.5 million tonnes.

The revised agreement marks a 275,000 wet tonne increase over the amount previously agreed to.

The additional material will support trials of the concentrate in sinter plants in Tata’s European operations.

If the sintering trial proves successful, it potentially gives Northern Iron access to the large European market for sinter fines, which could increase revenue due to lower freight costs to the customer.

Takeover bid

Northern Iron is currently the subject of a takeover bid by Indian heavyweight Aditya Birla Group, a US$35 billion conglomerate operating in 33 countries.

The group is a leading player in several sectors including metals, cement, chemicals and fertilisers.

In late November, Northern Iron revealed it was conducting a strategic review which included a review of ownership options.

The company has stressed that the discussions with Aditya Birla Group may or may not result in a proposal being submitted to shareholders with the recommendation of the Northern Iron board.

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Medical Developments International targets Japanese market with analgesic inhaler

Wed, 23 May 2012 14:30:00 +1000

Medical Developments International (ASX: MVP) is advancing towards the entry of its Penthrox® inhaler into the Japanese market, inking an exclusive licence agreement with Japan’s Nippon Zoki Pharmaceutical Co.

Penthrox is an analgesic inhaler suitable for minor surgery and other treatments requiring short term pain relief.

The licence agreement will facilitate the development and execution of a regulatory strategy which aims to have Penthrox approved for sale in Japan.

This process for registration is expected to take more than 12 months.

Growing profits and product range

Medical Developments is expecting a 26% increase on its net profit after tax for fiscal 2012.

The company expects to net around $2.2 million compared to the $1.7 million earned in the 2011 financial year.

Medical Developments delivered a record net profit after tax of $1.2 million for the first half of the 2012 financial year, marking a 44% increase on the first half of fiscal 2011.

Internationally, the company’s asthma business grew 22% in the first half of the 2012 financial year and the company is in discussions with a number of businesses keen to sell its products in new markets.

Medical Developments’ Australian business grew 28% during the period.

In late 2011, Medical Developments launched a new range of asthma devices in Australia and a new Penthrox Inhaler.

In November 2011, the Data Safety Monitoring Review Board unanimously endorsed Penthrox® as safe to continue the clinical trial in Europe.

The trial is on track to be completed by the end of the September quarter 2012.

The new Penthrox Inhaler has a number of innovative design features to improve the ease of use by medical professionals, which the company hopes will facilitate an increase in use.

Medical Developments is set to launch a number of other products during the 2012 financial year.

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Lachlan Star gold production continues to attract attention from investors

Wed, 23 May 2012 14:10:00 +1000

Lachlan Star’s (ASX: LSA) progress at the CMD Gold Mine in Chile is continuing to attract investor interest, with votes of confidence coming from two investment companies.

Intact Investment Management has taken up an initial substantial shareholding of 9.66% in Lachlan Star, buying up 8.34 million shares over a period of about 4 months.

Meanwhile, existing substantial shareholder Sentry Investments has taken up a further 2.6 million shares in May, taking its total shareholding to 9.4 million, equivalent to a 10.91% interest.

Lachlan Star is continuing to outperform at the CMD Gold Mine, revealing earlier this month that the company had delivered its highest level of gold stacked for the mine since it took ownership of the operation.

For the month of April the unhedged gold producer stacked 6,000 ounces of gold. A further achievement was the increase in the grade of the stacked ore to 0.61 grams per tonne, the highest stacked grade since October last year.

This increase was achieved despite the company not mining in the Chisperos and Las Loas pits for most of the month.

Lachlan Star is working to optimise its mining costs by converting part of the CMD Mine operations to owner mining, which is expected to deliver cost savings of US$100 to $150 per gold ounce.

Mining contractors on site will be rationalised from three contractors down to one, delivering an immediate saving on mining unit rates.

Unhedged gold production rising

In March Lachlan Star had unhedged gold production of around 57,500 ounces per annum, however the company is looking to increase this to 75,000 ounces per annum in the next 12 months.

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Elementos continues to identify high grade copper at Tamaya

Wed, 23 May 2012 13:50:00 +1000

Elementos (ASX: ELT) continues to make progress towards a target definition at its Tamaya Project in Chile after the second phase sampling identified further high grade copper.

The sampling and mapping program returned high grade copper of up to 4.75% while 60% of the 73 reconnaissance samples from multiple structures returned over 1% copper.

It also showed the potential for precious metals mineralisation with gold and silver anomalies of up to 2.21 grams per tonne (g/t) gold and 8.4g/t silver.

Another 124 assay results are pending.

The ongoing mapping and sampling has now uncovered over 6 kilometres of mineralised structure.

Preliminary interpretation of the results include the presence of a number of smaller sub-parallel structures flanking the main Tamaya vein that are offset by a number of small cross-cutting structure.

Tamaya

Earlier this year Elementos secured an option to earn a 50% interest in the Tamaya Project, which is strategically located in a major copper-gold district hosting the Andacollo, El Espino, Tres Valles, and Punitaqui deposits.

Historical production at Tamaya is reported to be 2 million tonnes at 12% copper, with Elementos having identified the potential for large volumes of lower grade material.

Elementos’ sampling and mapping program is concentrated on the main Tamaya structural trend that was the primary focus of historic mining activity.

Next Steps

The company continues to move closer towards the start of drilling at Tamaya, which is currently planned for the third quarter of this year subject to drill rig availability.

Mapping and geochemical sampling programs are continuing over the historic workings and surface exposures of the multiple structures, veins and systems which host copper mineralisation are continuing.

This will be followed by a ground-penetrating pole-dipole IP geophysical survey, planned to commence in late May

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Predictive Discovery's new gold zone discovery delivers on 2012 strategic objectives

Wed, 23 May 2012 13:30:00 +1000

Predictive Discovery's (ASX: PDI) new gold discoveries at the Bonsiega Project in Burkina Faso help progress the company towards a maiden JORC Resource, which is targeted for the September quarter of 2012.

At Prospect 71, reverse circulation drilling returned a high grade intercept of 4 metres at 7.1 grams per tonne (g/t) gold, highlighting gold in the area. This discovery is along strike from the near surface intersections of 4 metres at 15g/t gold and 2 metres at 7.5g/t gold.

Importantly the new gold intersection is supported by broader discoveries at the nearby Dave East prospect, which include:

- 26 metres at 2.7g/t gold from 22 metres;
- 28 metres at 1.6g/t gold from 30 metres; and
- 12 metres at 1.5g/t gold from 28 metres.

Mineralisation at Dave East remains open to the northeast and at depth.

Paul Roberts, managing director of Predictive Discovery, said the company’s drilling programs in Burkina Faso are aimed at identifying the scale of potential gold mineralised systems and infilling the best prospects to advance towards a JORC Resource.

“Drilling on the Dave and Dave East Prospects within the Laterite Hill Grid has already identified a large mineralised system over a strike length of at least 4 kilometres including multiple lodes containing moderate gold grades and some higher grades at depth,” Roberts said.

“Infill and extension drilling on just one of these lodes at Dave East shows that it extends for at least 500 metres with significant widths of gold mineralisation on each line.”

Speaking on the Prospect 71 discovery, Roberts said the new assays confirm the presence of another higher grade lode to add to recent discoveries at the Tamboana and Koundi prospects.

“The higher gold grades in these zones balance the lower grades in “Dave East‐type” lodes and strengthen the probability of obtaining average grades over the whole Laterite Hill gold field above 2 grams per tonne gold,” Roberts said.

Bonsiega covers about 100 kilometres of strike within the Samira Hill greenstone belt, which also hosts SEMAFO’s (TSE: SMF) 2 million ounce Samira Hill gold mine in Niger.

The project is located within 100 kilometres of both the Samira Hill mine, and the producing Taparko-Bouroum Project in Burkina Faso, which has Proven and Probable Reserves of 8.85 million tonnes at 2.81g/t gold for 800,000 ounces of gold.

Taparko is held in a joint venture between Royal Gold (NASDAQ: RGLD) and High River Gold Mines (TSE: HRG).

Predictive Discovery is continuing reverse circulation drilling on the Laterite Hill Grid, along with a power auger program testing 15 kilometres of greenstone strike to the southwest of the grid.

The company is planning preliminary metallurgical studies on representative samples of gold mineralisation.

The Laterite Hill Grid is part of a joint venture between Predictive Discovery and El Dore Mining Corporation (ASX: EDM), in which Predictive Discovery holds a 72.1% interest.

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Quest Petroleum may benefit from West Java gas price increase

Wed, 23 May 2012 13:00:00 +1000

Quest Petroleum (ASX: QPN) is poised to be a beneficiary of the recent gas price hike imposed by Indonesia’s state owned energy company PT Perusahaan Gas Negara (PGN).

PGN had recently announced that it has increased gas prices for its West Java customers by 49% to US$10.13 (A$10.39) per million British Thermal Units (MMBtu) following contract renewals with producers in South Sumatra.

This compares with the previous contract rate of US$6.80 per MMBtu and reflects the steadily increasing demand for gas to generate power in Java.

Quest said the price increase had positive implications for the economics of gas discoveries that it makes in the onshore Ranau production sharing contract in South Sumatra with contracted gas prices expected to be a minimum of US$6.50 per MMBtu from 2014 onwards.

The 2123 square kilometre licence is virtually unexplored though the existence of oil and gas wells in surrounding areas along with observed oil seeps are evidence of a proven petroleum systems in the area.

Gas discovered at Ranau PSC can be commercialised through the nearby South Sumatra – West Java (SSWJ) gas transmission pipelines and processing infrastructure.

The SSWJ pipelines supply large markets in Sumatra, West Java and Singapore.

Oil can be commercialised through facilities located within 50 kilometres of the Ranau PSC. These facilities process and transport oil from the large, Pertamina‐operated, fields to the north of the Ranau PSC.

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Otis Energy set to start oil and gas production at Catahoula Lake, Louisiana

Wed, 23 May 2012 12:30:00 +1000

Otis Energy (ASX: OTE) expects to start construction of the production platform and laying of flow lines to bring its SL20846-1 well in the Catahoula Lake Project in Louisiana into production.

Once this is completed, the well will be put into production and flow tested.

SL20846-1, the second of 7 wells to be drilled in the project his year, intersected about 8 feet (2.4 metres) of net oil and gas pay within the Middle Wilcox Sand.

Otis had previously said that it could generate additional well locations to further develop the oil and gas bearing sands seen.

Wells drilled in the Middle-Wilcox typically exhibit long production lives with low decline rates after the initial flush oil is produced and relatively steady production is established.

Ultimate oil recoveries area expected to range from 50,000 to 250,000 barrels per well.

Meanwhile, the third well, SL 20884-2 is being plugged and abandoned after it was determined to be sub-economic.

SL 20884-2 was drilled to a final depth of 1463 metres and had encountered multiple shows. Sidewall cores were also taken.

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Highlands Pacific firms up new Papua New Guinea copper gold play near Ok Tedi

Wed, 23 May 2012 12:00:00 +1000

Highlands Pacific (ASX: HIG) has confirmed the presence of a new copper gold porphyry province in the Star Mountains, Papua New Guinea, near the established infrastructure of the Ok Tedi copper gold mine.

The final assays from its 14 hole diamond drilling program at the Olgal prospect returned the highest copper and gold grades to date of 294 metres at 0.67% cooper and 1.16 grams per tonne (g/t) gold from 320 metres.

This was part of a wider 596 metre intersection at 0.61% copper and 0.85g/t gold from 24 metres.

The company added the hole 14 mineralisation appears to be hypogene porphyry copper‐gold, demonstrating that as well as the porphyry and skarn targets, stand-alone porphyry targets in the Tifalmin porphyry copper district can yield the more than 1% copper grades that it is seeking.

Highlands Pacific noted that of the 14 holes drilled at Olgal, 12 have encountered copper and gold mineralisation.

It added the program has also increased its conceptual understanding of the area and the interplay between more than a dozen targets it plans to test.

The Star Mountain leases consist of Tifalmin (EL1392), Mt Scorpion (EL1781) and Nong River (EL1312).

Highlands Pacific holds a 100% interest in the first two while Nong River is subject to a joint venture agreement with Xstrata Copper where they have the ability to earn a 72% interest in the joint venture by producing a feasibility study by 2019.

While Highlands Pacific is currently sole funding the exploration program, Xstrata also has the right to reclaim a 72% interest by paying three times the exploration expenditure incurred by Highlands at the time Highlands presents a prefeasibility study.

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ADX Energy signs up veteran Austrian oil and gas producer as a partner in Romania

Wed, 23 May 2012 11:30:00 +1000

ADX Energy (ASX: ADX) has secured a farm-in partner for the Parta Block concession in Romania who will alleviate much of the costs of the forward work program there.

Rohoelaufsuchungsgesellschaft (RAG), an Austrian private company that has been exploring for and producing oil and natural gas in Central Europe since its foundation in 1935, will make an upfront payment to ADX and will have the right to earn a 50% interest in Parta.

This can be achieved by a payment in lieu of past costs and a payment of a promoted share of future costs prior to the start of seismic operations.

ADX is required to shoot 100 square kilometres of new 3D seismic and 100 kilometres of new 2D seismic as well as drilling 3 exploration wells.

The company has already secured €3.1 million for the seismic work with a view to drilling exploration wells as soon as possible.

ADX added the deal positioned it as the operator of a strong joint venture with a capable partner in Parta. It also retains a 100% interest over 8 prospecting permits.

RAG has extensive industry experience, technological expertise and highly specialised knowledge. It is also one of the leading underground natural gas storage operators in Europe supplying both national and international customers.

The 1,221 square kilometre Parta concession contains 40 identified oil and gas leads that can be evaluated with low cost seismic and drilling programs.

While several oil and gas fields with total discovered proved and probable reserves of 12MMbble of oil and 50Bcf of gas have been made in the block since the late 1960s, it is still considered to be underexplored and lacks any modern 2D and 3D seismic data.

Geotechnical studies carried out by ADX have identified two independent fairways within the migration pathway of the MAKO source kitchen.

The MAKO trough contains the Algyo Field in Hungary which has historical production of 2.6 trillion cubic feet of gas and 225MMbbl of oil.

Romania has a favourable tax and royalty regime and has easy access to local infrastructure and European markets.

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Empire Resources strikes copper with first drilling in the Gascoyne

Wed, 23 May 2012 10:40:00 +1000

Empire Resources (ASX: ERL) has discovered copper mineralisation at the Wynne Project in Western Australia’s Gascoyne Region with the first ever drilling in the area.

The first hole of a nine hole reverse circulation drilling program has intersected shallow visible secondary copper mineralisation, with a visual estimate returning about 1 metre at up to 50% copper from 5 metres.

This mineralisation could represent an enriched zone above a primary source, which has not yet been identified.

David Sargeant, managing director of Empire, said the full extent of the mineralisation at Wynne would not be determined until assays from the drilling program were received. Assays are expected in June.

“The Wynne discovery has the potential for developing into a significant copper province given the scale of surface indications identified to date,” Sargeant said.

“This discovery obviously changes our immediate priority and we now intend to increase our exploration effort at Wynne.”

Drilling at Wynne is focused on testing copper anomalous gossanous ironstones over more than five kilometres.

Empire has received support for the program from the Western Australian Government, receiving a $75,000 grant through the Incentive Scheme Co-Funded Drilling Program.

This copper intersection at Wynne marks Empire’s sixth mineral discovery since listing on the ASX in 2007.

Gold and copper focus

Empire’s interests are primarily in copper and gold, including the Penny’s Find Gold Project, where the company discovered new high grade gold in April.

A four hole drilling program at Penny’s Find returned gold mineralisation from all holes, with highlight intersections including:

- 6 metres at 13.34 grams per tonne (g/t) gold from 113 metres, including 4 metres at 19.43g/t;
- 8 metres at 4.02g/t gold from 100 metres, including 2 metres at 12.95g/t; and
- 3 metres at 14.42g/t gold from 143 metres.

Penny’s Find is subject to a sale agreement with unlisted company Brimstone Resources, which plans to bring the project into production.

The terms of the agreement were recently revised, with the sale price for a 100% interest in the project increasing to $3 million from $2 million.

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Cooper Energy makes takeover offer for Somerton unconditional

Wed, 23 May 2012 10:20:00 +1000

Cooper Energy (ASX: COE) has made its off market takeover offer for Somerton Energy (ASX: SNE) unconditional after Somerton’s largest shareholder flagged that it would accept the offer.

Beach Energy (ASX: BPT), which holds 55.8% of Somerton, had said on Monday 21 May that it will accept Cooper’s offer for Somerton though it has yet to decide on whether it will accept either the scrip and cash or the full scrip offer for its Somerton shares.

Cooper had in April offered Somerton shareholders the choice of either 1 Cooper share for every 2.8 Somerton shares or A$0.09 per Somerton share and 1 Cooper share for every 4.73 Somerton shares.

With the offer now unconditional, Cooper said Somerton shareholders could accept the offer with certainty of payment.

The offer will expire on 7 June 2012 unless extended.

The takeover offer was recommended by all directors of Somerton save Robert Kennedy, who is the non-executive chairman of both Somerton and Beach.

Cooper and Somerton had said that combining their complementary assets and technical expertise along with Cooper’s strong cash balance and cash flow created a focused oil and gas exploration and production company.

Cooper’s assets are predominantly in the Cooper Basin though it does hold a 50% operating stake in PEL 495 in the Otway Basin, which Somerton holds a 15% interest in.

Somerton also has interests in 6 Gippsland Basin permits.

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Aviva Corporation delivers further certainty over Mmamantswe with coal licence renewal

Wed, 23 May 2012 09:40:00 +1000

Aviva Corporation (ASX: AVA) has secured a two year renewal of the Mmamantswe Coal Prospecting Licences, the only coal development project in Botswana with a JORC Reserve.

It is also timely given the positive outcome of the Botswana Government’s Coal Road Map Review, which includes preliminary Feasibility Studies into a preferred rail route, and a 400 kilovolt transmission line through the Mmamantswe licenses to a new substation within 30 kilometres of the project.

This second renewal required a 50% reduction in the first renewal area, and the two prospecting licences have now been consolidated into a single licence covering 453.7 square kilometres.

The new prospecting licence encompasses more than 12 times the area of the Mmamantswe deposit and retains access to Botswana’s main infrastructure corridor 40 kilometres to the west.

The project has an 895 million ton reserve, and contains some 200 million tons of export coal and 150 million tons of domestic coal.

Studies have suggested that the Mmamantswe project, which is close to the South African border, could support a 10 million ton per year run-of-mine operation.

The Environmental Impact Assessment, completed by Earthtec, also does not identify any major environmental obstacles.

Formal meetings with government stakeholders are scheduled in late May to finalise the Environmental Impact Assessment report.

Lindsay Reed, chief executive officer, commented on the positive milestone:

“The renewal of the prospecting licenses is further good news for Mmamantswe following on the very positive outcome of the Coal Road Map Review.

“Mmamantswe is the only coal development project in Botswana with a JORC Reserve estimate. It has a very low strip ratio, a defined 8 gigalitre per annum water resource, and close proximity to both transmission (under construction) for domestic and export power markets, and to the proposed spur to the Trans Kalahari railway.

“Aviva is considering options to add to its coal portfolio in Botswana.”

Coal Road Map Review

Importantly, the Government’s Coal Road Map Review is a necessary investment in export rail and domestic power infrastructure for coal sector development.

The key outcomes of the review include ultimate production targets of 90 million tonnes per annum of export coal and 30 million tonnes of domestic coal.

The Government has also outlined its commitment to the roll out of independent power projects as a critical domestic market for middlings coal – a lower energy by-product of export coal production.

A dedicated unit will be established to facilitate the coal development process in Botswana.

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NYSE/NASDAQ: Best Buy, JPMorgan Chase, General Mills, Facebook and more

Wed, 23 May 2012 08:00:00 +1000

From North America: Electronics retailer Best Buy (NYSE:BBY) Tuesday posted fiscal first-quarter earnings that beat analyst estimates thanks to high demand for smartphones.

For the period ended May 5, Best Buy said profit fell to $158 million, or 46 cents per share, compared to $212 million, or 53 cents per share a year ago. On an adjusted basis, the company reported earnings per share of 72 cents.

The US Securities and Exchange Commission will look into the "appropriateness and completeness" of JPMorgan Chase & Co's (NYSE:JPM) financial reporting, according to a Reuters report.

General Mills (NYSE: GIS) introduced Tuesday restructuring measures, which include plans to cut around 850 jobs globally at the company, sending shares down slightly.

Branded footwear retailer DSW (NYSE:DSW) announced Tuesday fiscal first quarter earnings that topped analyst estimates, triggering the company to raise its full-year profit guidance.

Clothing retailer Express (NYSE:EXPR) said Tuesday that its first-quarter profit rose 20 percent, but its results missed Street expectations and shares fell over 25 percent in early morning trading.

Medical technology company Medtronic (NYSE:MDT) increased revenues in its final quarter driven by steady progress at its cardiac and vascular businesses.

AutoZone (NYSE:AZO) said Tuesday third quarter profit rose as sales increased almost 7 percent in the period.

For the period that ended May 5, net income increased 9.3 percent to $248.6 million, or $6.28 per diluted share, well above the $227.4 million, or $5.29 per diluted shares in the same quarter last year.

Specialty retailer Williams-Sonoma (NYSE:WSM) said Tuesday fiscal first-quarter adjusted profit grew amid strong sales thanks to its Pottery Barn and West Elm stores, though margins were down slightly.

Premium fashion brand Ralph Lauren (NYSE:RL) beat markets forecasts as fourth quarter profits rose by 29 per cent, though growth is tipped to slow this year.

French hotel company Accor Tuesday sold its budget hotel chain Motel 6 to asset manager Blackstone Group (NYSE:BX) for $1.9 billion, in an effort to cut debt and shift its focus to emerging markets.

Teen clothing retailer dELiA*s (NASDAQ:DLIA) said Tuesday it narrowed its first quarter loss as revenues increased 6.7 per cent.

Strip steel product maker China Gerui (NASDAQ:CHOP) said fiscal first-quarter profit more than tripled, aided by 9.6 percent growth in sales due to higher volumes and wider margins.

Quantum Fuel Systems (NASDAQ:QTWW) said Tuesday it plans to cut operating costs and enhance its core automotive products as it seeks to grow shareholder value.

Onyx Pharmaceuticals (NASDAQ:ONXX) and Bayer HealthCare said the Nexavar drug failed to meet the primary endpoint of improving overall survival in patients with non-small cell lung cancer.

Onyx, however, did observe an improvement in the secondary endpoint of progression-free survival.

Facebook Inc.’s (NASDAQ:FB) shares continued their downward spiral on Tuesday, as investors continued to be wary of the stock’s future value after reports from Reuters said that underwriters cut their revenue forecasts for the company before the IPO.

Facebook’s shares hit a low of $30.98 early on Tuesday, almost 10 percent below Monday’s close, and 18 percent lower than the company’s $38 IPO price.

Chelsea Therapeutics (NASDAQ:CHTP) said Tuesday that the U.S. Food and Drug Administration (FDA) has rejected its hypotension capsule Northera and sought an additional trial to support the efficacy of the drug.

The drug, known generically as droxidopa, is designed for symptomatic neurogenic orthostatic hypotension - a chronic and often debilitating drop in blood pressure upon standing up, that is most often associated with Parkinson's disease.

China Sunergy Co. (NASDAQ:CSUN) Tuesday swung to a first-quarter loss as sales dropped by more than half as the company continued to deal with the global surplus of solar products.

Clothing retailer Urban Outfitters (NASDAQ:URBN) reported after markets closed Monday a first quarter profit that topped analyst expectations, though higher markdowns pinched margins.

Apple (NASDAQ:AAPL) has kept its place as the world's most valuable brand over the past year, leading a group of technology-focused global firms that dominate the top 10, according to a new study from Millward Brown.

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TSX News: Silver Bull Resources, Air Canada, Sino-Forest, and more

Wed, 23 May 2012 07:30:00 +1000

From North America: Silver Bull Resources (TSE:SVB)(AMEX:SVBL) Tuesday said a new NI 43-101 report currently being completed will show a 39 per cent increase in the open pittable resources at the Shallow Silver Zone at its Sierra Mojada project in Mexico.

Air Canada (TSE:AC.A) said Tuesday it was unable to reach a settlement after 10 days of mediated talks with the International Association of Machinists and Aerospace Workers.

The Ontario Securities Commission (OSC) Tuesday said that Sino-Forest Corp. (TSE:TRE) provided "grossly misleading disclosure" to investors and that some former executives attempted to mislead the regulator's staff.

Alimentation Couche-Tard (TSE:ATD.B) said Tuesday it would extend its proposed $2.68 billion bid for Norwegian-based Statoil Fuel & Retail.

The extension of the bid, which will now expire on May 29, will give all shareholders more time to tender their shares.

Transat A.T. (TSE:TRZ.B) announced Tuesday it has agreed to sell Handlex, its ground handling unit, to Servisair Holding Canada in an effort to focus more on its main tour operator business.

Natural gas explorer Niko Resources (TSE:NKO) said it has relinquished its stake in the D4 block due to a geological assessment and the current commercial environment in India.

Mariana Resources (LON:MARL, TSE:MRY) has kicked off a 3,500 metre diamond drill programme at its flagship Las Calandrias project in Argentina.

The campaign will test new targets identified adjacent to, below and outside the current initial resource estimate for the Calandria Sur deposit as well as two outlier targets at the Nido Este and Pichones prospects.

Caza Oil & Gas (LON:CAZA, TSE:CAZ) revealed today that the Sombrero well in New Mexico is flowing oil.

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TSX-V News: Digital Shelf Space, Celeste Copper, Snipp, Asante Gold and more

Wed, 23 May 2012 07:00:00 +1000

From North America: Digital Shelf Space Corp. (CVE:DSS) reported on Tuesday that its GSP RUSHFIT DVD series reached the No. 2 spot on Amazon.com’s exercise and fitness top rated product list last Wednesday.

The company also said Tuesday that 1991 British Open champion and 17-time winner on the PGA Tour Ian Baker-Finch will be the host for the new TOURAcademyHome Edition DVD golf instructional series.

Celeste Copper Corp (CVE:C) announced Tuesday that Alan Shoesmith has been appointed president and CEO of the company.

Eagle Star Minerals (CVE:EGE), an explorer of agro-mineral properties in Brazil, appointed Dr. José Eloi Guimarães Campos as a new director to the board, on Tuesday.

Mobile marketing company Snipp Interactive (CVE:SPN) (TSX.V:SPN) announced Tuesday the hiring of John D. Fauller as the company’s new chief operating officer.

Asante Gold (CVE:ASE) unveiled Tuesday what it called "positive" initial drill results from its Fahiakoba concession in Ghana.

Longreach Oil & Gas (CVE:LOI) said it has made solid progress across its Moroccan assets during the March quarter and is well funded for its work programmes with C$9 million in the bank.

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African Energy Resources chairman takes stake to 13.2 million shares ahead of Sese coal PFS

Tue, 22 May 2012 17:00:00 +1000

African Energy Resources (ASX: AFR) has received a vote of confidence from executive chairman Alasdair Campbell Cooke, who has increased his direct holding in the company, taking up 1 million shares.

Cooke purchased the shares on the market for consideration of A$200,288, equivalent to about A$0.20 per share.

This takes Cooke’s total direct holding in African Energy to 13.2 million shares, in addition to 15 million indirectly shares and a number of unlisted options.

African Energy is on its way to the commercial delivery of coal from the company’s Sese Thermal Coal Project in Botswana, with negotiations beginning earlier this month.

In April, the company completed a milestone trial rail delivery of 25 tonnes of coal, demonstrating that the transport of Sese coal via rail to the east coast of Africa is possible using existing infrastructure.

The company will negotiate with Botswana to establish an economic rail tariff for the transport of coal from the Sese project to Maputo in Mozambique.

A Pre-Feasibility Study for Sese is expected to be completed by the end of June this year while a bankable feasibility study remains on track for delivery by the end of 2012, along with mining licence approvals and financing negotiations.

The next step will then be the commencement of coal sales from stage one in mid-2013.

The Sese project hosts over 2.5 billion tonnes of coal at the project in the Indicated category, and is amenable to open-cut strip mining, with low risk and low costs.

Part of the resource is now targeted to be moved into the higher confidence Measured category in the June 2012 quarter.

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Navaho Gold reduces non-project expenditure to allow for market conditions

Tue, 22 May 2012 16:40:00 +1000

Navaho Gold (ASX: NVG) is undertaking a number of measures to maximise in-ground expenditure at the company’s projects in recognition of current market conditions and the short-term global outlook.

The company is aiming to reduce non-project expenditure in areas such as general and administrative costs from about $2 million per annum to less than $900,000 per annum.

Navaho is focused on the discovery of Carlin-style gold deposits in Nevada, United States and Queensland, Australia. The company has three projects in Queensland and seven in Nevada.

Various measures are being implemented to reduce cash expenditure, including a reduction in directors’ fees to $40,000 per annum. Of this, 50% will be paid in cash with the remaining 50% to be paid in stock on a quarterly basis.

The share component of this scheme will require shareholder approval. An Extraordinary General Meeting will be called soon.

In April this year, Navaho entered into an agreement to sell off a 900 square kilometre tenement package in southeast Queensland to Alcyone Resources (ASX: AYN).

The disposal of this tenement package was aimed at allowing the company to focus its ongoing exploration efforts on more advanced exploration targets in its portfolio.

Consideration for the transaction comprised A$50,000 in cash and 1 million Alcyone shares, which were trading at about $0.065 around the time of the agreement.

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Meteoric Resources director increases shareholding

Tue, 22 May 2012 16:20:00 +1000

Meteoric Resources (ASX: MEI) executive director – exploration George Sakalidis has invested a further A$10,795, or about $0.04 per share, to acquire 277,000 shares on-market.

Sakalidis now holds around 5.4 million fully paid shares, 2.7 million partly paid shares and 1.5 million options.

Meteoric has completed infill and step out drilling at three prospects within the Tibooburra Gold Project in New South Wales.

The rotary air blast and aircore program comprised follow up drilling at the New Bendigo and Kink prospects and initial drilling at the Phoenix prospect, with best intercepts of:

- 7 metres at 8.08 grams per tonne (g/t) gold from 12 metres;
- 2 metres at 1.95g/t gold from 9 metres; and
- 1 metre at 1.95g/t gold from 37 metres.

Very little modern exploration has been completed at Tibooburra, with only two of the numerous vein systems identified in the district drilled previously, and no drilling below a depth of 60 metres.

The depth potential of mineralisation at the three prospects remains untested and is open along strike in some areas.

Meteoric has the right to earn an initial 51% interest in the 450 square kilometres of tenements covering most of the Tibooburra goldfield by spending $500,000 by late 2013, and can elect to earn up to a 75% interest by spending a further A$1 million by late 2016.

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Ironbark Zinc: Acquisition opportunities could help to build base metal mining house

Tue, 22 May 2012 16:00:00 +1000

Ironbark Zinc (ASX: IBG) is continuing to progress its corporate growth strategy, supported by a US$50 million funding facility from Glencore International.

The company is reviewing acquisition opportunities that will rapidly enhance the value of the funding facility.

Ironbark is working towards becoming a base metal mining house, and Glencore’s funding facility has been provided for the purpose of pursuing acquisition opportunities to realise this goal.

Given the current challenging market conditions, Ironbark said there are a number of excellent opportunities available which the company is considering.

Ironbark’s existing projects include the wholly owned Citronen base metal project, which hosts more than 13.1 billion bounds of zinc and lead.

Citronen has a total resource of 70.8 million tonnes at 5.1% zinc and 0.5% lead.

With several large zinc mines to be depleted in coming years, creating a shortfall in supply, zinc prices are expected to rise. This stands to make the development of new mines such as Citronen “very compelling”.

In April this year, Ironbark delivered positive optimisation studies for Citronen, showing an increase of more than 15% in mill feed and a longer mine life.

This inspired a broker’s report which placed a 12 month price target of A$0.41 on Ironbark, more than double the company’s current price of A$0.16.

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Bora Bora Resources holds firm in first six trading days as a public company

Tue, 22 May 2012 15:30:00 +1000

Bora Bora Resources (ASX: BBR) has shrugged off the uncertainty that many companies pondered when considering to list in the current choppy market, with Bora Bora making a very solid start since the Friday 11th May debut.

Since completing a successful IPO which offered 12.5 million shares at A$0.20 to raise up to $2.5 million, Bora Bora has held firm on the ASX and traded in a very tight range between $0.19 and $0.205 - and there are reasons for the investor interest.

Bora Bora has already commenced its gold quest with the proposed acquisition of the St Arnaud gold project, which covers the St Arnaud goldfield, in the central Victorian goldfields.

Highlighting the prospectivity of the area, historic production at the St Arnaud goldfield between 1855 and 1916 totalled over 360,000 ounces at above 15 grams per tonne (g/t) gold.

Bora Bora will focus on identifying targets along strike and parallel to the St Arnaud historic lines of lodes.

The company has allocated around $1.7 million of the funds raised in its IPO to exploration, $50,000 to project generation and $113,000 to working capital.

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Oil Basins to test Backreef oil discovery this week

Tue, 22 May 2012 15:10:00 +1000

Canning Basin focused Oil Basins (ASX: OBL) now expects production testing of the onshore Backreef-1 oil discovery to start on 24 May.

This is due to a combination of downtime of the Australian Drilling Services Rig 2 and unexpected difficulty in drilling out the cement plug.

Backreef-1 was drilled in October 2010 and intersected estimated net oil pay of between 12 metres and 39.2 metres.

Oil Basins had said previously that a modestly successful testing would value the Backreef Oil Pool at between A$1.8 million and A$5 million risked to itself.

It would also lead to a large reduction in risk for other mapped leads in the area that hold in-place oil of 48 million to 117 million barrels of oil.

Oil Basins and Green Rock Energy (ASX: GRK), which has a 20% stake in the Backreef Area, will also have options to follow up on the discovery by using the 2 drilling slot options included in the testing contract with Australian Drilling Services.

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Continental Coal director raises shareholding on back of planned foray into coking coal

Tue, 22 May 2012 14:50:00 +1000

Continental Coal (ASX: CCC) executive director Jason Brewer has purchased an additional 125,000 shares on-market.

Brewer acquired the shares for a consideration of A$16,250, or an average entry price of $0.13.

He now holds 750,000 shares and 575,000 options expiring on 13 February 2013, as well as 5 million unlisted director options exercisable at $0.75 on or before 31 December 2013.

In a strategic move, Continental Coal will enter the higher margin coking coal market with an option to acquire a 50% interest in a producing Colombian mine.

This means the potential for near to medium term cash flow from the already producing operation if Continental chooses to exercise the option.

Sales of hard coking coal are made at mine gate with current margins of around 75%. Sales directly to the export market are planned for 2013.

Taking the option would enable Continental to operate, develop and expand an existing business, which consists of five mining concessions/contracts covering over 1,500 hectares, including the existing underground mine that has been in operation for 24 years and adjacent exploration ground.

Based on historic reports and its current due diligence, Continental believes annual production of 500,000 tonnes can be achieved in the medium term.

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Icon Energy spuds second Surat Basin coal seam gas well

Tue, 22 May 2012 14:30:00 +1000

Icon Energy (ASX: ICN) has spudded its second coal seam gas well – Eolus-1 – in the Surat Basin, Queensland, targeting the Walloon Coal Measures.

The earlier Windom-1 well had intersected a thicker than expected coal seam with low permeability.

The 2 wells are part of the second stage work program of Stanwell Corporation’s farm-in to exploration permit ATP 626P.

Stanwell had originally farmed in to earn a 50% stake in the Lydia block in ATP 626P.

However, a 4 well drilling program found the coal seams in the area had lower permeability than needed to proceed to a second pilot project.

The farm-in was then expanded to cover the entire permit and the focus of exploration turned to prospects south of Lydia.

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Attila Resources to acquire hard coking coal mine in Alabama

Tue, 22 May 2012 14:00:00 +1000

Attila Resources (ASX: AYA) is set to expand its interests overseas, acquiring a 70% interest in a hard coking coal mining operation in Alabama.

The company has entered a binding heads of agreement to secure the mining rights to two coal seams which are found throughout the Kodiak Coal Project, owned by Kodiak Mining Company.

Kodiak has an exploration target of between 80 and 100 million tonnes of hard coking coal, based on 118 historical coal bed methane wells and diamond core holes.

Coal found at Kodiak is of good quality, with low ash and sulphur content and very high fixed carbon.

Once Attila exercises its option to the Kodiak project, drilling will commence with the aim of establishing a JORC Resource.

Importantly, the Kodiak project has access to full infrastructure already in place, including a wash plant and rail infrastructure. The project has full permits for operation and is licenced on private land.

Kodiak operated the Coke No. 1 Mine at the project up until 2008 when the project was placed on care and maintenance, due to underperformance by the mining contractors and ventilation issues.

The option to acquire Kodiak remains subject to technical, legal and environmental due diligence.

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Senex Energy spuds first of 4 well program in the Cooper Basin

Tue, 22 May 2012 13:40:00 +1000

Senex Energy (ASX: SXY) has said that Santos (ASX: STO)has spudded the first of 3 appraisal and 1 exploration wells in ATP 752 Barta Block, Cooper Basin.

Cuisinier-4 is located about 600 metres northwest of the Cuisinier-1 discovery and targets the oil bearing sands of the Murta Member.

The new appraisal wells will be drilled directly offsetting existing producing wells while the exploration well will be drilled about 2.9 kilometres northeast of Cuisinier-1 on a satellite structure.

This will target the Murta, Birkhead and Hutton reservoirs on a structure defined by 3D seismic.

Senex has a 15% stake in the Barta Block.

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NSL Consolidated directors increase interests on the back of first iron ore sales

Tue, 22 May 2012 13:20:00 +1000

NSL Consolidated (ASX: NSL) non-executive chairman John Muir and non-executive director Peter Wall have both increased their stakes less than a week after the company achieved the milestone first ore sales in India.

Muir has purchased 100,000 NSL shares in an on market trade for about $0.064 per share, bringing the total consideration to $6,400.

Meanwhile, Wall spent $10,867.50 to take up 172,500 shares on market, at a price of $0.063 per share.

These transactions take Muir’s total holdings to more than 6 million shares and Wall’s holdings to more than 10.4 million shares.

Last week NSL announced the first ex gate sales of iron ore into the Indian domestic market.

The company is targeting an initial steady production rate of 200,000 beneficiated tonnes per annum from the first phase of operations at the Kurnool stockyard, with beneficiated grades of up to 58% achieved last month.

A 58% iron ore product sells domestically for about US$90 per tonne, meaning that at 200,000 tonnes per annum production, NSL is looking at first phase revenue of $18 million.

Construction and commissioning is continuing on the Phase 1 Kurnool iron ore dry separation plant, with final commissioning on track to occur prior to June 30, 2012.

NSL is the only foreign company to own and operate iron ore mines in India.

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Texon Petroleum to fracture stimulate and test first Mosman-Rockingham Olmos well in Texas

Tue, 22 May 2012 12:40:00 +1000

Texon Petroleum (ASX: TXN) has successfully drilled the Wheeler-1 well targeting the low risk Olmos play in the Mosman-Rockingham area, Texas and will now case and fracture stimulate it.

The company said its reservoir properties were comparable with the Leighton Olmos wells that had tested an average 181 barrels of oil and 330,000 cubic feet of gas per day.

Production facilities will also be prepared for production testing, which is expected within the next 2 to 3 weeks.

Texon has a 95% working interest (71.25% net revenue interest) in the well.

The Mosman-Rockingham Olmos appears to be similar to the Olmos character at Leighton.

It covers 1560 acres (6.3 square kilometres) and could hold up to 30 wells on 40 acre spacing with potential recoverable reserves net to Texon of 3 million barrels of oil equivalent.

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Bauxite Resources: new mineralisation builds on potential bauxite resource at Ceres

Tue, 22 May 2012 12:20:00 +1000

Bauxite Resources (ASX: BAU) has identified potential for a major bauxite resource at the company’s Ceres Prospect in Western Australia’s southwest.

A preliminary review of data collected in a 7,923.5 metre drilling program has been carried out, identifying thick, high grade bauxite close to the surface.

A bauxite horizon has been encountered over an area of 3,500 hectares, with seams up to 8 metres in thickness and at grades of up to 42.4% without beneficiation.

About 14% of holes drilled contained alumina grades of 25% or greater, in more than 2 metres thickness.

The mineralisation begins within 0.5 metres of the surface, with overburden of less than 2 metres throughout the majority of the mineralised area, reducing potential excavation costs.

Mineralisation identified on the private land has the potential to add to Bauxite Resources’ existing geological resources at Ceres. Importantly, the majority of the tenement area is untested for bauxite.

Bauxite Resources is aiming to define a JORC Resource in the June quarter of 2012, following the completion of geological modelling.

The 2011 drilling program focused on a number of large private landholdings which are located close to the Perth to Albany highway, and about 30 kilometres from existing heavy rail and associated infrastructure.

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Apollo Minerals granted trading halt pending acquisition announcement

Tue, 22 May 2012 12:10:00 +1000

Apollo Minerals (ASX: AON) has some potentially very interesting news on the horizon, with today the company being granted a trading halt by the ASX pending an acquisition announcement.

Apollo's shares have been accordingly placed in pre-open. The company has not expanded on the announcement any further, with the current key projects focused DSO mineralisation and large, high quality magnetite projects.

Not lost on astute investors is that earlier in the month Apollo attracted India's third largest steel producer, Jindal Steel and Power, which has agreed to a A$1 million investment giving it a 9.25% stake in Apollo.

Jindal Steel and Power (NSE: JINDALSTEL) is part of the US$12 billion diversified O.P. Jindal Group and is a leading player in the nation’s steel, power, mining, oil and gas, and infrastructure industries with an annual turnover of US$4 billion.

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

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Drillsearch Energy, Beach Energy start oil production from Cooper Basin field

Tue, 22 May 2012 12:00:00 +1000

Drillsearch Energy (ASX: DLS) and Beach Energy (ASX: BPT) have brought their Bauer oil field in the Cooper Basin into production at a rate of about 800 barrels per day (bpd).

This is expected to increase to about 2000bpd once full commissioning of the Bauer production facilities and crude assay testing is completed.

While oil is currently being trucked to the Moomba Crude Oil terminal, the PEL 91 joint venture has agreed to build an export pipeline from the Bauer Facility to the Lycium oil hub.

Construction of the pipeline is expected late this year with commissioning expected by the end of the year.

Once this is completed, oil production will further increase to about 5000bpd.

Drillsearch had in March increased proved, probable and possible reserves at Bauer by 33% to 11.3 million barrels of oil equivalent (MMboe).

Proved and probable reserves were also increased to 4.5MMboe by Gaffney, Cline & Associates, up Drillsearch’s original 3.2MMboe estimate.

Further reserves upside may come about if the joint venture can show that the nearby Arno discovery is part of the same accumulation as Bauer.

The Bauer Field was discovered in August 2011 with the drilling of Bauer-1. The discovery well intersected a 14.6 metre column in the McKinlay/Namur sandstones, of which 11.7 metres was Namur Sandstone pay.

Bauer is one of the largest McKinlay/Namur oil columns found to date on the Western Flank Oil Fairway. Drillsearch and joint venture partner and operator Beach Energy (ASX: BPT) followed up on Bauer-1 with the Bauer-4 and Bauer-3 development wells, which both intersected thicker gross oil columns than expected.

Of particular note was Bauer-4, which intersected a much thicker clean Namur Sandstone and also intersected the Namur target zone in a higher crestal position than Bauer-1.

Drillsearch has a 60% interest in PEL 91 while operator Beach holds the remaining 40%.

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AusTex targets production increase with faster development of Snake River Project in Oklahoma

Tue, 22 May 2012 11:20:00 +1000

AusTex Oil (ASX:AOK) is fast tracking development of its 100% owned Snake River Project in Kay County Oklahoma, with a second rig expected to start drilling before June.

Each rig will be capable of drilling 2 new wells targeting the liquids rich Mississippi Limestone play. This is expected to result in increased production.

The 5500 acre (22.3 square kilometre) Snake River Project allows for up to 100 vertical production wells to be drilled at 40 acre spacing.

Each well is estimated to cost about US$650,000 (A$655,340) and be capable of recovering up to 100,000 barrels of oil equivalent.

AusTex is currently drilling the first production well for the Blubaugh prospect in the project – Blubaugh 20-1 – that is located about 80 feet from the recently completed Blubaugh 20D-1 water disposal well.

Blubaugh 20D-1 is capable of supporting more than 10 vertical and several horizontal wells.

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Centaurus Metals expands iron ore interests in Brazil through acquisition

Tue, 22 May 2012 11:00:00 +1000

Centaurus Metals (ASX: CTM) is continuing to pursue a strategy of acquiring prospective iron ore projects close to open access infrastructure, with the purchase of an exploration project in north-eastern Brazil.

The Curral Velho Iron Ore Project comprises six tenements covering 83 square kilometres in the State of Paraiba, about 350 kilometres from the major Suape port and 60 kilometres from the new Transnordestina rail system.

Iron mineralisation has been identified over 6 kilometres strike at Curral Velho, within total prospective strike length of 20 kilometres.

Rock chip sampling has returned average grades of itabirite iron mineralisation at surface of between 30% and 40% iron.

Based on the rock chip results and initial field mapping that is underway now, Centaurus has set an exploration target of between 30 and 40 million tonnes grading 30% to 40% iron.

Centaurus has acquired Curral Velho through a tenement swap agreement, enabling the company to realise value from its last non-core copper gold exploration project in Brazil.

In exchange for its interest in Curral Velho, Centaurus will transfer its interests in the Caçapava Copper/Gold Project in southern Brazil to a group company of the project vendor.

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Transerv Energy considering options to evaluate Warro gas field onshore Western Australia

Tue, 22 May 2012 10:40:00 +1000

Transerv Energy (ASX: TSV) is looking at a number of options to progress its Warro tight gas field in the Perth Basin, Western Australia, could potentially supply part of the gas needs for partner Alcoa’s alumina refineries.

These options include an extended testing program on one of the existing wells drilled by the joint venture and drilling new appraisal wells.

An earlier review by independent US tight gas experts led by Dr Keith Shanley had found that the field could hold 3 to 4 trillion cubic feet of recoverable gas.

Each well in the project is also likely to be capable of flowing at high rates and recovering between 4 and 10 billion cubic feet of gas each.

It noted that water encountered in the Warro-3 and Warro-4 wells were derived from formations located below the gas-bearing reservoir along deep seated faults and fractures that were seen in both wells.

This issue can be minimised by drilling new wells in areas without faults.

Meanwhile, Transerv said the new Western Australian based drilling company Enerdrill, which has acquired 2 land drilling rigs a workover rig, provide immediate capacity and availability of rigs in the Perth Basin.

It noted the drill rigs appeared to be suited to the drilling conditions at Warro while the workover rig could recondition an existing well for further flow testing operations.

Argonaut Limited, a substantial shareholder in Transerv, is also a shareholder in Enerdrill, and has played a lead role in Enerdrill’s establishment.

Warro, located 200 kilometres north of Perth and 25km east of the Dampier-to-Perth and Parmelia gas pipelines, was discovered in 1977 by WAPET when Warro-1 intersected a substantial gas saturated column.

The follow up appraisal well, Warro-2 confirmed a 390 metre gas column in the Yarragadee Formation.

Aloca is funding A$100 million on exploration and development to earn a 65% stake in the field, which is located 200 kilometres north of Perth and 31 kilometres east of both the Dampier-Bunbury Natural Gas Pipeline and the Dongara-Perth Parmelia Pipeline.

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Red Emperor Resources to participate in Puntland well, retain stake in 2 onshore blocks

Tue, 22 May 2012 10:20:00 +1000

Red Emperor Resources (ASX: RMP) has exercised its option to participate in the Shabeel North-1 well onshore Puntland, Somalia, that is scheduled to spud in the first week of June.

This will allow the company to maintain its 20% interest in the Dharoor and Nugaal blocks.

Red Emperor had made the decision to participate after reviewing the final wells logs from the recently drilled Shabeel‐1 well that had intersected between 12 metres and 20 metres of hydrocarbon pay in the Upper Cretaceous Jesomma Formation.

Additional pay of up to 3 metres was intersected in several thin sand units in the deeper Jurassic Adigrat Formation, though this was not considered to warrant testing at this time.

Red Emperor had said then the hydrocarbon pay in two zones had very positive implications for prospectivity of the area and that it looked forward to Shabeel North-1 confirming this potential.

Operator Horn Petroleum (TSXV: HRN) holds a 60% stake in the Dharoor and Nugaal blocks while Range Resources (ASX: RRS) holds the remaining 20%.

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Mikoh Corporation delivers tag supply certainty with second supplier

Tue, 22 May 2012 10:00:00 +1000

Mikoh Corporation (ASX: MIK) has inked a contract with Thailand’s Star RFID for the manufacture of the company’s Smart&Secure™ tags, marking the second source of supply for the product.

Importantly, this reduces the vulnerability of Mikoh’s supply line, essentially providing the company with a back-up supplier.

Star RFID is the only company in Thailand manufacturing RFID labels and tags and was established in 2009 to help meet demand in the global market.

Under the supply contract, Mikoh will place a minimum of half of its tag order with Star RFID over the next three years.

Further upside to this deal is the price per tag from Star RFID is substantially lower than what is currently being paid by Mikoh.

Also, because Star RFID is located in Asia the supply line is shorter, which saves on freight.

Star RFID is importing new machinery and plans to build a new factory to manufacture a new design of Mikoh’s tags, which it will be able to supply later in 2012.

The new MIKOH Smart&Secure™ tag will use the latest design of chip incorporating several new features and an enhanced performance.

Mikoh’s current tag will continue to be manufactured by U.S. manufacturer Sirit.

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