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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.

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.

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.

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.

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).

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.

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 is on track to become the next major rare earth supplier from the Ngualla project in Tanzania. The company has produced two refined rare earth products at ANSTO Minerals - which importantly are in saleable form and available for evaluation by target customers.

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.

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.

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.

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.

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.

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.

Comet Resources dials into Central Asian gold belt hosting 180Moz Muruntau deposit

Tue, 21 May 2013 15:40:00 +1000

Comet Resources (ASX: CRL) has entered into a conditional option agreement to acquire Kyrgyz Gold Pty Ltd, which has the option to acquire 90% of three drill-ready gold exploration licences in Kyrgyz Republic.

The licences occur within the Tien Shan Gold Belt in Central Asia that hosts a number of world class Orogenic-Type gold deposits including Muruntau (190 million ounces) and Kumtor (26 million ounces).

Muruntau is the world's largest open pit gold mine measuring about 3.5 kilometres by 2.5 kilometres and extends to a depth of 350 metres. Annual production is about 2 million ounces of gold.

Surface trenching undertaken over the Ashutor licence in the northeast of the Kyrgyz Republic has identified high grade gold mineralisation with notable surface trenching results of 50 metres at 20 grams per tonne gold and 30 metres at 15.8g/t gold.

This makes the licence prospective for the discovery of a near-surface high-grade gold deposit.

The other two licences, Jetymbel and Chakyrkorum, occur along strike (15 kilometres) from the Kumtor Deposit owned by Canadian mining company Centerra Gold (TSE: CG) with Jetymbel abutting the Kumtor Mining lease.

Previous exploration including mapping combined with surface and trench sampling, has verified the presence of Kumtor-style mineralisation with several geochemical defined drill ready targets.

These results, geology and structure show that this area has the potential to host significant, large tonnage gold deposits.

All three licences have identified drill ready targets, offering Comet the opportunity to rapidly upgrade the projects.

Comet has the opportunity to undertake 6 months of due-diligence over the licences before a decision needs to be made to exercise its option.

During this period, it is not required to incur any material expenditure, other than in respect of a monthly option maintenance fee and due diligence costs

Kyrgyz Gold holds the option to acquire the three licences from Warrior Resources for $1.25 million of which $250,000 must be paid in cash and the remaining $1 million in cash or shares of an ASX-listed company (possibly Comet).

Comet in turn will be required to pay Kyrgyz Gold shareholders either $485,000 in cash, of which $460,000 must be reinvested in Comet through a share placement of 4.6 million shares priced at $0.10 each, or $255,000 in cash with no reinvestment requirement.

It will also have to issue 5 million shares to Kyrgyz Gold shareholders as well as 5 million options.

Aruma Resources drilling hits gold at Kalgoorlie project

Tue, 21 May 2013 15:20:00 +1000

Aruma Resources (ASX: AAJ) has confirmed gold mineralisation at the Steves and Grunts targets through first pass reverse circulation drilling at its Glandore Project near Kalgoorlie, Western Australia.

This includes a peak intercept of 5 metres at 4.3 grams per tonne gold at Steves.

Surface geochemical sample assays had defined a mineralised zone over 350 metres long and up to 23 metres thick on a quartz vein system with carbonate alteration at Steves. This anomalous surface sampling included values up to 20 grams per tonne gold.

The mineralisation Style encountered at Glandore is typical Golden Mile Hydrothermal and is in a Mafic Conglomerate that is bleached with sulphides, silica, carbonate and mica replacing the original mineral assemblage.

This mineralisation was first noted by previous exploration and the diamond core from Axial Planar Fault zone is in the Joe Lord Core Library in Kalgoorlie as an example of the Golden Mile Mineralisation Style.

The western section of the Glandore Project was drilled to intersect the FFM Target zones as well as to follow up the significant surface mineralisation defined by chip and channel geochemical sampling.

An application for an extension to the current Program of Work (PoW) has been submitted for follow up drilling in the near future.

Aruma will also carry out an expanded surface mapping and geochemistry survey together with new HyMap interpretation based on the Steves alteration response. This will be done next month.

Metals of Africa set to unveil acquisition

Tue, 21 May 2013 14:00:00 +1000

Metals of Africa (ASX: MTA) shares are in pre-open this morning, following the ASX granting the company a trading halt, pending an announcement on a proposed acquisition.

The company is currently focused on a portfolio of wholly-owned tenements in the central west of Mozambique, known as the Rio Mazoe Project, which is prospective for lead, zinc and silver.

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.

Metals of Africa had over $1.4 million in cash at the end of March 2013.

Zenith Minerals logs increased resource for Mount Alexander Magnetite Project

Tue, 21 May 2013 13:20:00 +1000

Zenith Minerals (ASX:ZNC) has received a boost with a 35 per cent increase in the inferred resource at the Mount Alexander Magnetite Project in the West Pilbara, some 120 kilometres to the exisiting port of Onslow.

Mt Alexander is blessed with proximity to infrastructure as it is 10 kilometres west of North West Coastal Highway and 35 kilometres west of the Dampier Bunbury gas pipeline which is crucial for an iron ore project.

The new Resource and an improved iron grade stands at 535 million tonnes at 30.0% iron.

David Tube Results indicate that it is possible to produce a magnetite concentrate containing 69.9% iron with less than 3% silica and low phosphorus.

Zenith has been in discussions to bring in a partner for the capital intensive Mount Alexander magnetite project.
The discussions remain at a non-binding and preliminary stage.

Peel Mining acquiring New South Wales strategic exploration licence

Tue, 21 May 2013 12:20:00 +1000

Peel Mining (ASX: PEX) is acquiring a strategic exploration licence in New South Wales that has strong similarities to the Mallee Bull copper-polymetallic deposit about 20 kilometres to the south.

The company will pay private party Weddarla Pty Ltd 1.25 million shares priced at $0.62 each, or an amount of \ shares with a value equal to $775,000, to acquire the 100% interest in the Sandy Creek Project (EL7403).

Weddarla will also retain a 1.5% net smelter return royalty.

A review of exploration data has noted that Sandy Creek has highlighted a number of similarities with Mallee Bull. These include:

-    Similar geological and structural environment;
-    Coincident magnetic and electromagnetic anomalies including a strong downhole electromagnetic anomaly of about 30 milliseconds time constant; and
-    Strong geochemical anomalism including high-grade polymetallic historic drilling results.

Peel had recently returned assays of 84 metres at 4.42% copper including a 26 metre at 11.39% copper zone from drilling at Mallee Bull.

Toro Energy farming out Lake Mackay potash rights to Rum Jungle Resources

Tue, 21 May 2013 11:40:00 +1000

Toro Energy (ASX: TOE) has signed a binding Heads of Agreement to farm-out its non-core potash and related evaporite minerals rights over Lake Mackay to Rum Jungle Resources (ASX: RUM).

The agreement covers the lake surface within four primarily uranium prospective Exploration Licenses (E80/3484, 3485, 3486 and 3519) covering 420 square kilometres in Western Australia.

Toro will retain all other mineral rights, including uranium.

Toro’s previous shallow drilling has confirmed the presence of brine in the lake subsurface, with potassium, magnesium and sulphur concentrations similar to other potash brine systems in central Australia and overseas.

Managing director Dr Vanessa Guthrie said the agreement would allow the exploration momentum to be continued at Lake Mackay in a manner which provided some capital efficiency to Toro over the tenements.

This is consistent with Toro’s strategy of developing a pipeline of highly prospective uranium exploration tenements to support the company’s growth strategy.

Farm-out details

Rum plans to drill deeper to assess the potential for a sustainable potash resource and will spend a minimum of $250,000 in Year 1 on drilling to earn a 51% interest in the rights.

Toro can then elect to contribute pro rata to further exploration or have Rum spend a further $750,000 in Years 2 and 3 to increase its interest to 80%.

At this point, Toro can elect to maintain its 20% interest and contribute to further expenditure.

If either party dilutes below 5%, their interest will be converted to a 2% royalty.

The Lake Mackay Potash Rights are located together with Toro’s Theseus Uranium Prospect, which has an Inferred Resource of 6.3 million tonnes at 493ppm U3O8 for 6.9 million pounds of U3O8 using a 200ppm cut-off.

This was achieved despite limited drilling, and wide drillhole spacing to ascertain mineralisation extent.

Toro had $10.1 million in cash as of 31 March 2013.

International Goldfields hits 15.86g/t gold in Brazil

Tue, 21 May 2013 10:40:00 +1000

International Goldfields (ASX: IGS) is focused on delivering a JORC Resource in August 2013 from the Ouro Paz Joint Venture in Brazil, with the company delivering some more high grade intersections from an on-going diamond drill program.

Drilling highlights include 5.70 metres at 11.7g/t gold from 50.4 metres; and 4.3 metres at 15.86g/t gold from 72 metres; which further extends the União prospect mineralisation to over 450 metres in strike length.

At the Morro do Carrapato prospect the company said it has returned encouraging results from down-dip tests below the positive shallow intercepts previously reported.

Joint Venture

International Goldfields 93% owned private entity Latin Gold Ltd holds rights to a 35% interest in the Brazilian based entity CIA Minerado Ouro Paz S.A. by way of a Joint Venture Agreement with Brazil based CIA MINERADORA MANGANÊS CONSELHEIRO S.A. that was finalised in April pursuant to the Heads of Agreement announced 7 February 2013.

The Joint Venture entity Ouro Paz will hold over 2700 square kilometres of land position in the highly prospective Alta Floresta Mineral Province of the Juruena Belt, with several parties to the agreement contributing licences proximal to Latin Gold’s Ana Prospect discovery to form a consolidated land package called the Union Project, located central to the vast land holdings of the Ouro Paz Joint Venture.

International Goldfields divests West African assets

Last month International Goldfields entered into a binding term sheet for the divestment of its interests in Mali and Cote d’Ivoire by the sale of its wholly owned subsidiary International Goldfields which holds the assets.

Consideration for the deal is a royalty of 2% of gross revenue from all gold produced from the West African Assets, along with additional cash holdings of around $100,000.

Stonehenge Metals receives ASX price query, points to Daejon Project results

Tue, 21 May 2013 10:20:00 +1000

South Korea focused Stonehenge Metals (ASX:SHE) has been queried by the ASX to explain a 76 per cent rise in the share price.

While Stonehenge said in a statement it could not offer any information not already announced, beyond preliminary hand held XRF results, released on 1 May from the Daejon Project.

These result did indicate a mineralised zone of uranium that may be larger than first thought with significant vanadium grades as well.

Assay results are still pending, combined with reappraisal of the existing significant uranium resource and possibility of vanadium credits could augure well for project economics.

Results from the first hole of a 12 hole diamond drilling programme at the Daejon Project had an intercept of 69 metres true width of mineralised zone averaging 262ppm uranium and 4117ppm vanadium.

When the vanadium is converted to uranium this shows a combined grade of 1754ppm equivalent total uranium at highest reading.

Phoenix Copper secures $1m to drill test Burra copper project

Tue, 21 May 2013 09:40:00 +1000

Phoenix Copper (ASX: PNX) has secured an additional $1 million in funding, which will be used to drill test existing targets at the Burra project for potential high grade copper sulphides, and to also advance the company's Black Hill gold prospects - which are located in South Australia.

The new funding is from Phoenix securing $600,000 in funding through unconditional agreements for the issue of Convertible Notes to two new international investors, with an an additional $391,000 received through the Research and Development Tax Incentive claim for 2012-2013.

Highlighting the potential of Burra North, drilling by Phoenix at Eagle intercepted significant copper sulphide mineralisation May 2012 which included: 26.3 metres at 2.86% copper from 50.7 metres, including 15.7 metres at 4.65% copper.

An additional five drill targets have been identified through recent IP interpretation at Eagle, with drilling to commence May 2013. The area is historically rich in copper, and already has good existing infrastructure.

Convertible Note details

The Notes are convertible to shares at the option of the Company at any time 18 months after the date of issue, and at no time will the company be obliged to settle the $600,000 total face value of the Notes in cash unless it so wishes.

Further, the conversion price of the notes is set at $0.05, representing a significant premium to the company’s last traded price of $0.025.

Kaboko Mining completes key scoping study at Zambian manganese project

Tue, 21 May 2013 09:36:00 +1000

The completed Scoping Study for the Mansa manganese project has demonstrated positive project economics as the project moves closer to production in a matter of weeks. Budgeted costs of delivering a CIF product are between $190 and $210 per tonne, in line with its expectations.

Pacific Niugini on track with Mexican gold quest

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

Pacific Niugini (ASX: PNR) is on-track at the Caldera project in Mexico, where the company said that testing is now well underway with 'highly encouraging initial results'.

Caldera is prospective for gold in colluvium, zero strip ratio open-pit mining and gravity gold concentration, and covers around 6900 hectares.

Earlier this year a 10 tonne per hour test plant was constructed and shipped to Mexico, is currently generating concentrates for laboratory test work and assaying.

Taking into consideration the availability of Pacific Niugini’s existing production plant (nameplate capacity of 8 to 10 million tonnes per annum), mining and processing operating costs for the project are expected to be in the range of $2.10 to $2.80 per tonne.

These will be validated in final costing studies, which will be undertaken in parallel with the testing program.

Pacific Niugini intends to complete a short confirmatory testing program ahead of a decision to transition the project to production.

The company which also has extensive interests in Papua New Guinea, had around $6.5 million in cash at the end of March 2013.