Black Rock Mining suggests three potential reasons for ASX speeding ticket https://www.proactiveinvestors.com.au/companies/news/213002/black-rock-mining-suggests-three-potential-reasons-for-asx-speeding-ticket-213002.html https://www.proactiveinvestors.com.au/companies/news/213002/black-rock-mining-suggests-three-potential-reasons-for-asx-speeding-ticket-213002.html Black Rock Mining Ltd (ASX:BKT) has received a price query from the ASX after its shares reached 5.6 cents yesterday, well above the recent trading range around 3.5 cents.

The company responded to the price query saying it was not aware of any information concerning it that has not been announced to the market which, if known by some in the market could explain the recent price movement.

It did, however, note a number of potential reasons for the recent price move being i) a recent research report, ii) offtake agreements, and iii) mining licence updates.

READ: Black Rock Mining receives valuation range of 16-40 cents in 68-page report

On Friday 19 January 2019, the company released a commissioned report prepared by Orior Capital via email and via its website.

The company noted the report “was part of our financing strategy and post the release of our stunning definitive feasibility study, Orior Capital was commissioned by Black Rock Mining to undertake a review of the business and graphite sector.”

READ: Black Rock Mining’s third deal takes graphite offtake to 85% of planned annual production

On 7 January 2019, Black Rock announced it had secured a third binding offtake agreement.

The combined tonnage of all three offtake agreements is up to 205,000  tonnes per annum of product by year three.

Mining licence status upgraded from submitted to recommended

Regarding the mining licence, Black lodged its mining licence applicated on 9 November 2018, through the online Tanzanian Mining Cadestre Portal.

The licence status was upgraded from submitted to recommended on 10 January 2019.

Tanzanian authorities have commenced routine processing and approval of new and renewal of mining licences including those submitted by Australian mining companies.

Black Rock understands there are meetings scheduled this week in Tanzania where new mining licences may be issued, which may or may not include Black Rock’s application.

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Tue, 22 Jan 2019 09:07:00 +1100
MinRex Resources prepares for next phase of gold exploration in the East Pilbara https://www.proactiveinvestors.com.au/companies/news/212988/minrex-resources-prepares-for-next-phase-of-gold-exploration-in-the-east-pilbara-212988.html https://www.proactiveinvestors.com.au/companies/news/212988/minrex-resources-prepares-for-next-phase-of-gold-exploration-in-the-east-pilbara-212988.html MinRex Resources Ltd (ASX:MRR) is preparing for the next phase of fieldwork in WA's East Pilbara, including exploration at all four of its gold project areas around Marble Bar -  Daltons, Bamboo Creek, Marble Bar North and Marble Bar South.

During the December 2018 quarter, extensive metal detecting was completed on all four East Pilbara project areas.

Marble Bar North

Five small gold nuggets totalling 1.5 grams in weight were recovered at the Marble Bar North project area, along with gold-bearing quartz rocks.

Two quartz rock specimens were also collected, which activated the metal detector, and upon close examination were seen to contain small particles of gold on their surfaces.

Mapping in this area also uncovered a layered, fine-grained basal gravel deposit under a surficial coarse-grained quartz scree deposit.

Basal gold-bearing gravel layer

During 2019, the next phase of fieldwork in the East Pilbara will include further rock sampling, soil sampling and detailed geological mapping.

This will be used to better understand these complex gold, base metal and polymetallic mineralised systems.

READ: MinRex Resources recovers more gold nuggets from East Pilbara projects

MinRex’s work will aim to build on the results received from the previous four exploration programs completed in 2018.

The company plans to commence the new program in March or April 2019, after the current wet season in the Pilbara.

Deflector Extended Gold Project

The next stage of work at the Deflector Extended Gold Project will include collection of further surface rock and soil samples, along with the commencement of heritage survey activities.

MinRex projects

The field sampling programs will aim to further pinpoint the most anomalous areas for the subsequent drilling.

This work will concentrate on the already defined anomalous zones, but will also include some further reconnaissance work elsewhere in the Deflector project.

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Tue, 22 Jan 2019 08:34:00 +1100
PolarX outlines rapid expansion at Alaska Range Project https://www.proactiveinvestors.com.au/companies/news/212638/polarx-outlines-rapid-expansion-at-alaska-range-project-212638.html https://www.proactiveinvestors.com.au/companies/news/212638/polarx-outlines-rapid-expansion-at-alaska-range-project-212638.html PolarX Ltd (ASX:PXX) is focused on the exploration of 35 kilometres of strike prospective for copper and gold within its Alaska Range Project in Alaska.

The project hosts two JORC-compliant deposits, Zackly and Caribou Dome.

It also has a number of emerging porphyry targets such as Mars and Zackly SE.

Zackly's resource measures 3.4 million tonnes grading 1.2% copper and 2.0 g/t gold and Caribou Dome is 2.8 million tonnes grading 3.1% copper.

PolarX has made good progress over the last 12 months advancing its flagship Alaska Range Project.

Most notably, in March 2018, a maiden JORC resource for the Zackly copper-gold-silver deposit was completed.

Exploration and drilling since then has further highlighted the upside potential of the resource growth.

The Alaska Range Project is an advanced project with district scale copper anomalies and escalating high-grade JORC resources of copper and copper-gold-silver in a known porphyry province.

PolarX has two goals

PolarX has two goals – first to expand the Zackly resource to critical-mass for an economically attractive project to underwrite a robust and tangle valuation.

Secondly, to advance high ranking porphyry copper-gold targets to a major new discovery through drilling in 2019.

The 2019 exploration program will be designed to further explore the 55 metres at 2.8 g/t gold and 0.6% copper intersection recently discovered at Zackly.

READ: PolarX copper-gold results reinforce potential for large open pit at Zackly

Drilling towards the end of 2018 not only supports new mineralised zones outside the current JORC resource but also open-pit mining potential.

Drill results and high-resolution aeromagnetic data indicate that the mineralisation trend continues 850 metres further east from the Zackly resource.

It occurs over a strike length of 1 kilometre, which could be extended further through drilling.

Subject to further drilling and study results, future mining could begin with an open cut operation on this shallow, low-angle mineralisation.

This would precede an underground operation to mine the high-grade sub-vertical mineralisation established in the current resource and immediate extensions 350 metres to the east.

New discovery targeted in 2019 from emerging targets

The Zackly deposit sits in the middle of a 12-kilometre long structural corridor containing multiple copper-gold porphyry targets.

A magnetic survey has shown prominent magnetic clusters at the Mars and Zackly SE prospects located at either end of the corridor. 

Mars hosts strong rock-chip geochemistry with up to 50% copper and 7g/t gold sampled.

This is the most advanced targets is drill-ready.

READ: PolarX substantial shareholder JPMorgan Chase & Co boosts interest to 9.73%

The project is located in an easy to access, mining-friendly top tier jurisdiction.

Alaska has six current mines, all large-scale and many operated by major miners.

In the mid-term elections, a mining friendly Governor and Federal Senator recently returned to office.

The project has nearby lodges for accommodation and support and is 100 kilometres from rail, power and a highway.

80% of Alaska’s gross domestic product (GDP) is from mining, oil and gas.

READ: PolarX completes $1.26 million placement for Alaska Range Project

Last month, PolarX successfully raised $1.26 million through a share placement of 21.1 million shares priced at 6 cents.

Funds will be used for work including a metallurgical test program, exploration surveys, and securing key exploration contractors for 2019.

PolarX said the support for the placement from existing holders reflected confidence in the substantial upside at Alaska Range.

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Tue, 22 Jan 2019 08:06:00 +1100
Vault Intelligence to add Solo worker-tracking revenues to new CARR figures https://www.proactiveinvestors.com.au/companies/news/212927/vault-intelligence-to-add-solo-worker-tracking-revenues-to-new-carr-figures-212927.html https://www.proactiveinvestors.com.au/companies/news/212927/vault-intelligence-to-add-solo-worker-tracking-revenues-to-new-carr-figures-212927.html Vault Intelligence Ltd (ASX:VLT) is working towards a contracted annual recurring revenue (CARR) forecast of $6 million by the end of the 2018-19 financial year.

The company laid out its June 2019 half-year goal in November 2018, saying it was “in its strongest position since listing on the ASX.”

Vault listed on bourse on July 1, 2016, as part of its reverse takeover of Credo Resources Limited.

READ: Vault Intelligence maintains $6 million revenue guidance

Among the company’s product offering is Vault Solo, a workforce tracking ecosystem for remote workers.

Workers in the field can sign in with a browser or app.

Companies can monitor where workers are by using a Solo app on a Samsung Galaxy Watch device the employee or contractor wears on-site.

Employers can then pinpoint a worker’s location to ensure their safety or track their movements.

READ: Vault Intelligence confirms Asia-Pacific distribution partner for Solo product line

The company said in October 2018 the Solo product had been successfully launched commercially in tandem with Samsung and demonstrated to South-East Asian, Australian and New Zealand markets.

The workforce safety app product was first showcased in September 2018.

The company said in November: “Vault believes with the increased momentum in V3 sales and opportunities, anticipated sales from CV3 in China, launch of the global digital sales platform and revenue from Solo sales that the original forecast of $6 million CARR for financial year 2018-19 is achievable with strong quarters anticipated in (the) March and June quarters.”

Vault reported at the time that it was funded, had a strong balance sheet and was resourced to deliver sales revenue from its pipeline.

In the September 2018 quarter, the company increased total cash receipts by 10%, on the previous record quarter, to $1.12 million.

The gain was a 14% increase on the September 2017 quarter result.

Vault’s CARR came solely from its Vault Enterprise (V3) sales and was $402,000.

The company tipped revenues for the product in the December 2018 quarter, saying in the September quarterly: “Solo is now being trialled with sales expected in the upcoming quarter from a significant sales pipeline.”

 

Vault chief executive Dave Moylan spoke to Proactive Investors about the Vault Solo workforce management ecosystem in September 2018.

He told Proactive’s Stocktube video channel: “Vault Solo’s been super exciting for us, it’s (a) great workforce management and protection app that we’ve put together.

“The really cool thing about it is that we’re very strong in the belief that we need to be able to manage and protect our workers out there and certainly Solo does that and plus.

“The big plus is that we also give some great productivity tools on the end of that complement and give a nice return on investment back to our people that are purchasing.

“We’re very excited about the demand, demand has been through the roof and the capital raise is certainly going to assist us now to really get behind some of those areas that we’d love to expand on; in terms of capability, but also to accelerate our growth and our penetration in the marketplace.”

READ: Vault Intelligence raises $5 million from high-quality investors to fund Vault Solo roll-out

Melbourne and Christchurch-based Vault was boosted in the September and December 2018 quarters with $5 million of funds from high-quality investors keen to see the company advance its pipeline.

Vault said the subscriptions from institutional and sophisticated investors were a sign of support for the company which planned to use the funds towards its roll-out of is Vault Solo on the Samsung Galaxy Watch.

READ: Vault Intelligence has new substantial shareholder in Regal Funds Management

A demonstration launch of the Samsung Solo watch app launch took place in New Zealand on September 6, 2018, at a government showcase attended by the former New Zealand company now headquartered in Australia.

The subsequent commercial rollout of the product in October 2018 will mean first revenues from the various international markets — South-East Asia, Australia and New Zealand — will be reflected in cash receipts for the company’s upcoming December 2018 quarter activities report.

September 2018 quarter revenues

Vault broke through a ceiling in the September 2018 financial quarter, having its first quarter of takings of more than $1 million.

The company increased cash receipts by 10% to $1.12 million.

Contracted annual revenue (CARR) reached $3.72 million, with the $402,000 of its new CARR coming exclusively from Vault Enterprise (V3) sales.

Vault reported in the September quarterly report published on October 31: “This is a good result and will be further strengthened in the upcoming quarter with CARR being generated from Vault Solo sales.

“In conjunction with Samsung's new Galaxy wearable range, Vault Solo was successfully launched in the first week of October.

“Two customer systems have already been implemented and more than 30 customer trials are underway across Asia, Australia and New Zealand.”

The trials last for a minimum of four weeks, so the company was expecting sign-ups from November 2018, at least a month on from its October 4 commercial release.

The company wrote: “The successful trial and deployment of Vault Solo across the current client base and potential new large customers is expected to accelerate in financial year 2019 and provide continued strong growth in CARR.”

Vault’s cash holding was $5.4 million at the end of the September quarter after the company spent $706,000 on operating activities and $335,000 on investing activities.

It had drawn down $131,000 of $321,000 in loan facilities.

Vault tipped it would spend $2.1 million in December 2018 quarter and forecast no asset disposals.

— with Danielle Doporto

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Mon, 21 Jan 2019 16:30:00 +1100
Peninsula Mines extends high-grade graphite drilling target at South Korean project https://www.proactiveinvestors.com.au/companies/news/212924/peninsula-mines-extends-high-grade-graphite-drilling-target-at-south-korean-project-212924.html https://www.proactiveinvestors.com.au/companies/news/212924/peninsula-mines-extends-high-grade-graphite-drilling-target-at-south-korean-project-212924.html Peninsula Mines Ltd’s (ASX:PSM) additional strong graphite channel sampling intersections have extended the high-grade drilling target at Gapyeong Graphite Project in South Korea.

The high-grade sample results of up to 7.21 metres at 10.6% total graphitic carbon (TGC) have seen the target grow to 400 metres strike length and it remains open to the south.

This 10.6% result was within a 9.69-metre intersection which graded 9.7% TGC while other strong results were 3.97 metres at 9.8% and 5.62 metres at 6.0% from another channel.

READ: Peninsula Mines appoints new managing director with Korean experience

These results follow encouraging drilling results including 10.63 metres (7.4 metres true width) at 11.6% TGC from 61.9 metres including 8.63 metres (6.0 metres true width) at 12.1%.

Peninsula’s managing director Richard Henning said: “We continue to be encouraged by the high-grade intercepts from the Gapyeong graphitic unit and will now do further metallurgical testing prior to further resource drilling.

“The objective is to define a maiden flake-graphite mineral resource in South Korea.

“It should be noted that due to the winter season in Korea, ground conditions are such that further groundwork is unlikely until spring.”

Peninsula has also received additional analyses from a recent diamond hole with a new intersection of 4.15 metres at 5.1% TGC in addition to the previous intercept of 6.55 metres at 7.9%, including 2.47 metres at 11.9%.

The latest trench results indicate that the grade of the Gapyeong graphitic unit may be higher to the south of the current drilling.

Large flakes identified

Petrographic work on the Gapyeong drill-core has identified large flakes with interstitial and associated sulphides.

The presence of strong sulphide mineralisation was not evident in previous channel sampling and was most likely oxidised and leached at surface.

Metallurgical tests

Further metallurgical testing has been initiated on fresh-rock drilling samples to confirm that TGC concentrate in excess of 95% can be generated from the sulphide-bearing graphitic material.

Previous testing on surface trenching samples produced a high-purity metallurgical concentrate of 95.4% TGC.

Subject to achieving the requisite concentrate grade, the company will look to generate a 5-kilogram graphite concentrate sample for spherical graphite test work.

READ: Peninsula Mines signs graphite MOU with Korean lithium-ion battery anode supplier

The objective would be to reach a 99.95% TGC purity spherical graphite product to meet the specifications of South Korean lithium-ion battery anode manufacturers.

Peninsula recently signed an MOU with South Korean high-technology manufacturing company Tera Technos Co Ltd that specialises in the production of high-performance carbon composite ‘SiOx’ anode materials, a modified and enhanced version of spherical graphite.

Photomicrograph of the carbon composite anode materials produced by Tera Technos.

The MOU includes an initial testing program by Tera Technos to complete spheroidisation and electrochemical test work on graphite concentrate samples from the Gapyeong project.

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Mon, 21 Jan 2019 15:24:00 +1100
Adveritas signs a deal to expand its ad fraud prevention software into China https://www.proactiveinvestors.com.au/companies/news/212923/adveritas-signs-a-deal-to-expand-its-ad-fraud-prevention-software-into-china-212923.html https://www.proactiveinvestors.com.au/companies/news/212923/adveritas-signs-a-deal-to-expand-its-ad-fraud-prevention-software-into-china-212923.html Adveritas Ltd (ASX:AV1) has entered into a deal with Chinese digital marketing consultancy, SparkX, which will use Adveritas’ TrafficGuard software to protect its clients from ad fraud.

TrafficGuard software detects, mitigates and reports on ad fraud before it impacts digital advertising budgets.

Adveritas’ strategic partnership with SparkX facilitates TrafficGuard’s entry into the US$76 billion Chinese digital advertising market.

SparkX works predominantly with Chinese app developers to help them grow their user bases domestically and internationally.

The digital marketing consultancy intends to offer TrafficGuard’s innovative fraud prevention software to protect its clients’ mobile app advertising within China and internationally.

Adveritas chief executive officer Mathew Ratty said: “Digital advertising in China is significantly more complex than other parts of the Asia Pacific region (APAC) largely due to the vastly different, closed internet ecosystem and the ways in which consumers engage with digital media.

“By entering the market through a strategic partnership with SparkX, we navigate these complexities to take advantage of the large and growing Chinese advertising market.”

In comparison to the US where a majority of TrafficGuard’s incumbent competitors are based, Australia enjoys much more favourable trade and business relations with China.

Political barriers to entry into China are expected to deter some of TrafficGuard’s competitors.

China’s digital advertising spend is the second fastest growing globally, having increased by 22% in 2017. Countries in APAC make up 5 of the top 10 highest growth markets.

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Mon, 21 Jan 2019 15:07:00 +1100
Whitebark Energy targeting commercial oil production from Wizard Lake in Q2 this year https://www.proactiveinvestors.com.au/companies/stocktube/11910/whitebark-energy-targeting-commercial-oil-production-from-wizard-lake-in-q2-this-year-11910.html https://www.proactiveinvestors.com.au/companies/stocktube/11910/whitebark-energy-targeting-commercial-oil-production-from-wizard-lake-in-q2-this-year-11910.html Whitebark Energy (ASX:WBE) managing director David Messina speaks to Proactive Investors about the confirmed commercial oil discovery at the Wizard Lake project in Canada, which the oil & gas explorer & producer holds a 30% stake in under the Point Loma Joint Venture (PLJV).

Messina also speaks more broadly about global markets and the favourable operating environment the company has experienced in Canada.

He says, "We'll be getting production on board in Q2. We'll also simultaneously be panning to drill new wells. We'll be getting Wizard lake into high commercial volumes very quickly, and we certainly look forward to our shareholders having a very strong 2019 with us as we embark on developing this exciting field."

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Mon, 21 Jan 2019 14:56:00 +1100
Bulls, Bears & Brokers: M&A activity in gold sector set to continue, says Bosio https://www.proactiveinvestors.com.au/companies/stocktube/11908/bulls-bears--brokers-ma-activity-in-gold-sector-set-to-continue-says-bosio-11908.html https://www.proactiveinvestors.com.au/companies/stocktube/11908/bulls-bears--brokers-ma-activity-in-gold-sector-set-to-continue-says-bosio-11908.html Davide Bosio, managing director, CEO & head of corporate finance at DJ Carmichael, tells Proactive Investors that the flurry of M&A activity in the gold sector, in Australia and around the world, is set to continue as global political uncertainty drags on.

To hear Bosio's insights watch our full video interview.

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Mon, 21 Jan 2019 13:42:00 +1100
Core Lithium achieves a major milestone towards production at Finniss Lithium Project https://www.proactiveinvestors.com.au/companies/news/212920/core-lithium-achieves-a-major-milestone-towards-production-at-finniss-lithium-project-212920.html https://www.proactiveinvestors.com.au/companies/news/212920/core-lithium-achieves-a-major-milestone-towards-production-at-finniss-lithium-project-212920.html Core Lithium Ltd (ASX:CXO) has been granted a mineral lease for the Grants Deposit, a key component of its fully owned Finniss Lithium Project near Darwin in the Northern Territory.

The company has received and accepted the notification from Northern Territory Assistant Minister for Primary Industry and Resources, Nicole Manison, advising Core of the NT Government’s offer of a mineral lease for a term of 20 years.

READ: Core Lithium prepares resource updates ahead of Finniss DFS expansion

The award of the mineral lease is both a historic and momentous one for Core, the NT Government and the Northern Territory in that it is the first lithium-focused mineral lease ever awarded in the NT and moves the NT much closer to having its first operating lithium mine.

Notably, the mineral lease has been awarded three months earlier than anticipated.

READ: Core Lithium completes $3 million placement and begins drilling at Finnis

Core managing director Stephen Biggins said: “As we continue on our path towards becoming Australia’s first lithium producer outside of Western Australia, it’s important that we don’t let any of these important milestones pass us without reflecting on both their significance and importance for Core.

“With the mineral lease secured for Grants, Core is now well on the way towards becoming the Northern Territory’s first lithium producer.

Core's Finnis project and its proposed Grants mine in the Northern Territory

“The definitive feasibility study on Grants is expected to be delivered by the end of the March quarter, with first production at the Finniss Lithium Project on-track for the end of 2019.”

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Mon, 21 Jan 2019 13:27:00 +1100
Havilah Resources upgrades drill results from the Grants Iron Ore Basin https://www.proactiveinvestors.com.au/companies/news/212917/havilah-resources-upgrades-drill-results-from-the-grants-iron-ore-basin-212917.html https://www.proactiveinvestors.com.au/companies/news/212917/havilah-resources-upgrades-drill-results-from-the-grants-iron-ore-basin-212917.html Havilah Resources Ltd (ASX:HAV) has reported the final reverse circulation drill results from the Grants Iron Ore Basin in South Australia.

The laboratory assay intervals indicate average grades in the order of 24-27% iron.

Drilling results of significance

Notably, laboratory assay results are on average 18% higher than the previously reported handheld Niton XRF analyses, which is at the upper end of the expected increase of 10-20%.

This drilling is part of a comprehensive program of work currently being performed and funded by SIMEC Mining (an affiliate of the GFG Alliance) as part of their due diligence investigation of the commercialisation potential of Havilah’s Maldorky and Grants iron ore projects.

The drilling program was implemented and supervised by Havilah personnel.

READ: Havilah Resources confirms new discovery in the Grants Iron Ore Basin

Havilah technical director Dr Chris Giles said: “The recently received laboratory assays, as expected, are higher than the Niton hand-held XRF analyses that were previously reported.

“This, combined with the exceptionally thick iron ore intersections, confirms a major iron ore discovery in the Grants Basin.

“This was a well planned and well executed drilling program that has achieved great success, and I thank all concerned including SIMEC Mining for their funding support.”

Diamond drilling is currently underway to provide early sample material for preliminary metallurgical test work.

The diamond drilling is being carried out by MJ Drilling using a multipurpose UDR650 drilling rig and is expected to provide the first complete intersection of the Grants Basin iron bearing sequence.

Dr Giles added: “One thing we do not yet know is the thickness of the iron formation in the central part of the Grants Basin, which the present diamond drill hole should tell us.

“The drill core samples will be used by SIMEC Mining to carry out initial metallurgical work and to compare this iron ore with that from the JORC status Maldorky and Grants iron ore deposits.”

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Mon, 21 Jan 2019 12:23:00 +1100
White Rock Minerals continues to look at joint ventures to move projects forward https://www.proactiveinvestors.com.au/companies/stocktube/11923/white-rock-minerals-continues-to-look-at-joint-ventures-to-move-projects-forward-11923.html https://www.proactiveinvestors.com.au/companies/stocktube/11923/white-rock-minerals-continues-to-look-at-joint-ventures-to-move-projects-forward-11923.html White Rock Minerals (ASX:WRM) CEO Matthew Gill sat down with Steve Darling from Proactive Investors at the Vancouver Resource Investment Conference. The Australia-listed explorer has assets in Alaska and New South Wales. It owns 100% of the Red Mountain polymetallic volcanogenic massive sulphide (VMS) project in central Alaska and also has 100% of the Mt Carrington gold-silver project in New South Wales, Australia.

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Mon, 21 Jan 2019 12:17:00 +1100
Theta Gold Mines high-grade hits likely to boost 5.8 million-ounce TGME gold resource https://www.proactiveinvestors.com.au/companies/news/212915/theta-gold-mines-high-grade-hits-likely-to-boost-58-million-ounce-tgme-gold-resource-212915.html https://www.proactiveinvestors.com.au/companies/news/212915/theta-gold-mines-high-grade-hits-likely-to-boost-58-million-ounce-tgme-gold-resource-212915.html Theta Gold Mines Ltd (ASX:TGM) has received further high-grade gold results from resource infill drilling aimed at boosting the 5.8 million-ounce resource at the TGME project in South Africa.

Drilling at the Theta Hill, Columbia Hill and Scammells deposits has returned high-grade assays.

The company is on track to release an upgraded resource and reserve statement early this year together with a feasibility study.

Encouraging assays

First-phase drilling at Theta Hill is nearing completion with encouraging assays returned from the December quarter program.

Chairman Bill Guy said: “The last of 2018 drill assays for Theta Hill are showing continued good grades which is causing much excitement in the team.”

Best results are 11 metres at 2.1 g/t from 8 metres, including 1-metre at 9.5 g/t; and 1-metre at 27.5 g/t from 8 metres; and 2 metres at 5.9 g/t from 24 metres.

Other results are 1-metre at 5.2 g/t from 57 metres; 8 metres at 1.8 g/t from 22 metres; and 3 metres at 3.4 g/t from 84 metres, including 1-metre at 8.3 g/t.

These are expected to contribute to an increase in indicated and measured resources at Mining Right MR83, which includes Theta Hill, Columbia Hill/Iota and Scammells targets.

Locality of open-cast targets on 83 MR.

READ: Theta Gold Mines appoints Finn Behnken as director

The company drilled more than 7,400 metres during the December quarter of 2018 with the reverse circulation (RC) infill program at Theta Hill completed.

Theta Hill’s geological model is being updated and incremental resources estimated.

The in-country team is using two RC drill rigs that worked up to Christmas, with one being recommissioned on Columbia Hill.

Investigating satellite targets

This rig has been progressing investigations on satellite open-cast targets on 83MR with the phase II program at Columbia Hill underway after 1,216 metres was completed last month over 17 holes.

Guy said: “Just 3km to the west of the TGME plant, Columbia Hill continues to show good potential, so much so that additional drilling is now underway to build up the geological model for that deposit.”

Satellite deposits within a few kilometres of the TGME CIL plant.

The Iota (Rho Reef) underground workings are on the eastern extension at this target and the RC drilling is targeting ground peripheral to these zones.

High grades at Columbia Hill

Results to date have confirmed more high-grade shallow gold intersections on the Bevetts and Rho reefs.

They include 1-metre at 10.1 g/t from 18 metres, 1-metre at 5.6 g/t from 68 metres, 1-metre at 7.5 g/t from 31 metres and 10 metres at 1.9 g/t from 36 metres.

Columbia Hill continues to demonstrate good potential as a satellite open-cast resource, particularly with the mineralisation style and intersections all above 80 metres below surface.

Initial resource estimations are expected to be completed next month.

Scammells drilling

Phase I drilling has also been completed at the Scammells target with best results of 1-metre at 5.6 g/t from 18 metres and 1-metre at 13.8 g/t from 20 metres.

A number of boreholes still require deepening to reach the target.

READ: On track for open-cut production from Theta Hill gold project in South Africa

TGM is focusing on the planned refurbishment of the existing CIL plant at TGME and nearby mines/prospects with the intention of resuming production.

It is considering open pit mining where it has identified mineral resources amenable to open pit production.

Location of Theta Gold Mines’ projects northeast of Johannesburg.

The company is concluding a detailed feasibility study and is also seeking approvals for open pit mining on the existing mining licences held.

“As part of the feasibility study, the TGM board will develop more clearly delineated timelines and work schedules to bring the existing TGME plant back into production,” Guy said.

“The on-site team is back at work and the 2019 work program has begun with environmental studies to support the permitting process for open cut developments.”

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Mon, 21 Jan 2019 11:58:00 +1100
Australian Mines drills high grade cobalt and nickel at Sconi https://www.proactiveinvestors.com.au/companies/news/212914/australian-mines-drills-high-grade-cobalt-and-nickel-at-sconi-212914.html https://www.proactiveinvestors.com.au/companies/news/212914/australian-mines-drills-high-grade-cobalt-and-nickel-at-sconi-212914.html Australian Mines Ltd (ASX:AUZ) has received additional drill results from its extensional program at its 100% owned Sconi Cobalt-Nickel-Scandium Project in North Queensland.

The resource expansion drilling program has continued to delineate high-grade cobalt and nickel zones across the project area producing grades rarely seen.

Highlights include the record assay of 3.4% cobalt over one metre and multiple one-metre intersections grading over 1.0% cobalt.

The frequent intersection of cobalt-rich zones grading over 0.5% cobalt suggests that Sconi is living up to its status of an emerging world-class deposit.

The results will be used to estimate an updated JORC resource expected to be released by April 2019.

READ: Australian Mines confirms Sconi offtake discussions with SK Innovation are ongoing

AUZ’s managing director Benjamin Bell said: “With the majority of assays now received from our 2018 drilling campaign to grow the cobalt and nickel resources at Sconi, it is clear that this project has enormous potential to grow beyond the already strong commercial development case highlighted in November’s bankable feasibility study.

“Our technical team successfully evaluated the extensional potential in areas at both the
Greenvale and the nearby Lucknow deposits ahead of the campaign and it is clear from these results that the drilling has the potential to reinforce that modelling in a significant way.

“We believe the deposits at Sconi have a lot more to give in terms of resources, which is clearly reflected in the almost three-and-a-half per cent record cobalt hit returned in these results.

“Our focus now is on incorporating these outstanding results in a re-estimation of the Mineral
Resource for the Sconi Project, which will allow us to undertake what we believe will be a material optimisation review of our development case for Sconi published in the initial BFS on the project.

“I would like to take this opportunity to thank the company’s dedicated and talented technical team who planned and executed this program.”

BFS values project at $697 million

During November 2018, AUZ released a bankable feasibility study (BFS) for its Sconi Cobalt-Nickel-Scandium Project in Queensland, valuing the project at $697 million.

Three open pits would be constructed under the project along with a processing plant with annual ore processing capacity of 2 million tonnes.

Drilling highlights

The drill results significantly expand the mineralised footprint of the Sconi Project beyond its current JORC-compliant Mineral Resource and Ore Reserve.

Highlights included:

• 12 metres at 1.07% cobalt from 1 metre depth;
• 9 metres at 1.02% cobalt from 1 metre depth;
• 10 metres at 0.75% cobalt from 5 metres depth;
• 12 metres at 1.02% nickel from 1 metre depth;
• 13 metres at 1.11% nickel from surface; and
• 16 metres at 1.00% nickel from 2 metres depth.

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Mon, 21 Jan 2019 11:40:00 +1100
Swift Networks grows resources sector presence with multiple contract updates https://www.proactiveinvestors.com.au/companies/news/212913/swift-networks-grows-resources-sector-presence-with-multiple-contract-updates-212913.html https://www.proactiveinvestors.com.au/companies/news/212913/swift-networks-grows-resources-sector-presence-with-multiple-contract-updates-212913.html Swift Networks Group Ltd (ASX:SW1) has won multiple contract extensions, expansions and new contracts covering several large sites with resources industry clients.

The company provides fully integrated digital entertainment solutions to the resource, hotel, lifestyle village and aged care sectors.

Swift has delivered consistent growth in the resources market vertical over the course of 2018, both through direct contract wins and new clients secured by reseller partners.

The company continues to view resources as an attractive growth opportunity in light of the significant pipeline of new mining exploration, construction and development projects underway throughout Australia.

READ: Swift Networks Group Ltd plans swift media transformation

Contract expansions were with Compass Group, nickel miner Western Areas Ltd (ASX:WSA), and a top tier LNG operator in Western Australia.

The expansion with Compass Group will see an additional 442 rooms added to the initial 800 room contract at the Gateway Village in Port Hedland, Western Australia.

Western Areas have expanded by 68 rooms to 533 rooms at their mine site accommodation village.

The expansion with the LNG operator has added 280 rooms and was achieved through reseller partner DXC.

New contract win through Telstra relationship

Swift’s new client is Voyages Indigenous Tourism Australia and is a 3-year contract to provide in-room digital services to Voyages’ 64-room workforce accommodation facility in Alice Springs.

The contract win came about through Swift’s relationship with Telstra Ltd (ASX:TLS).

Swift and Telstra will jointly design, construct and install network infrastructure to deliver Wi-Fi internet to each room.

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Mon, 21 Jan 2019 10:52:00 +1100
Whitebark Energy confirms commercial oil discovery at Wizard Lake https://www.proactiveinvestors.com.au/companies/news/212912/whitebark-energy-confirms-commercial-oil-discovery-at-wizard-lake-212912.html https://www.proactiveinvestors.com.au/companies/news/212912/whitebark-energy-confirms-commercial-oil-discovery-at-wizard-lake-212912.html Whitebark Energy Ltd (ASX:WBE) has completed testing of the Wizard Lake Rex horizontal oil well and established a 305 barrels of oil per day (bpd) commercial flow rate.

This was the final pumping rate over the last 24 hours of testing and notably, it was increasing as testing ended.

The associated gas in the flow increases the barrels of oil equivalent (boe) flow rate to 340 boe per day.

While rates were increasing when the flow test ended, the PLJV determined the field was commercial and ongoing testing costs could be better directed to bringing the field into long term, lower cost production.

READ: Whitebark Energy continues Wizard Lake Rex well flowback, gathers data on long-term production

Whitebark’s managing director David Messina said: “The oil discovery by the Wizard well is an excellent result and Whitebark is very pleased with the oil flow rates from the first well.

“This is just the sort of success WBE has been targeting and we look forward to pushing ahead with further appraisal work and production operations during the first half of 2019.

“The flow test results are very similar to those seen by other operators in the same reservoir during clean up flows of oil bearing reservoirs, which provides confidence about future wells in the pool.

“The PLJV will now bring the well onto production and determine the best approach to develop this new discovery.”

Rex well will increase total oil production by over 200%

Whitebark’s share of oil production at this rate would increase total oil production by over 200%.

Next steps to develop the Rex oil pool will be to tie-in the solution gas to a nearby gas processing facility and install a battery.

Rex prospect has the potential for 10-14 follow up development wells

The Rex target at Wizard Lake is the first horizontal well to be drilled in what could be a multi-well program analogous to the offsetting Leduc area Rex.

Recent activity in the area has resulted in highly commercial wells (250-300 boepd, 80% oil, 16-17 API, EUR 2P~250kboe).

The target zone in the PLJV lands has similar porosity but is thicker than at the Leduc area.

The Rex prospect has the potential for 10-14 follow up development wells.

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Mon, 21 Jan 2019 09:36:00 +1100
Metal Tiger buoyed by bid for partner MOD https://www.proactiveinvestors.com.au/companies/news/212960/metal-tiger-buoyed-by-bid-for-partner-mod-212960.html https://www.proactiveinvestors.com.au/companies/news/212960/metal-tiger-buoyed-by-bid-for-partner-mod-212960.html Metal Tiger PLC (LON:MTR) was a strong riser on Monday as the London-listed shares of its Australian partner MOD Resources Limited (LON:MOD, ASX:MOD) shot higher after receiving an unsolicited bid approach from Sandfire Resources (ASX:SFR).

Sandfire has made a non-binding indicative offer of 38c a share just as MOD has completed launched a A$15mln, which comprised a fully underwritten rights issue at 24c and an institutional placing at 30c per share.

READ:Metal Tiger reports encouraging results from drilling and mining study at A4 Dome

MOD said the offer “undervalues MOD’s unique and extensive assets” even though it is pitched at a substantial premium to both the prices of the fund raise and the market price beforehand.

The company owns 100% of the T3 copper project in Botswana and listed in London in November to raise awareness about the project.  

In a statement revealing the offer, as well as confirming the capital raise, MOD said: “The Company is willing to engage with Sandfire and grant confirmatory due diligence if a compelling price is presented and capable of being supported by the Board and MOD shareholders.”

But, it added: “MOD has not received any offer capable of acceptance by the Company's shareholders and no certainty that the Indicative Proposal will result in a transaction.”

Metal Tiger confirmed that it has made a non-binding commitment to take up its entitlements under the rights issue.

MOD’s managing director, Julian Hanna said: “Funding from this capital raise will enable the Company to progress the T3 Copper Project towards a development decision and conduct further drilling for additional resources.”

He added; “The unsolicited, indicative proposal for 100% of the Company received from Sandfire confirms the potential of the T3 Copper Project, however the Board considers it significantly undervalues the assets of the Company.”

In afternoon trading in London, shares in dual-listed MOD were up 60.7% to 22.50p, while Metal Tiger shares were up 22.5% to 1.5p.

Metal Tiger owns 12.5% of MOD and substantial options after it swapped its stake in T3 for shares in its partner and 30% of an exploration joint venture in numerous licences that surround the T3 copper development.

 -- Adds further detail, updates share prices --

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Mon, 21 Jan 2019 09:29:00 +1100
European Lithium has near-term DFS catalysts for integrated lithium supply strategy in Europe https://www.proactiveinvestors.com.au/companies/news/212911/european-lithium-has-near-term-dfs-catalysts-for-integrated-lithium-supply-strategy-in-europe-212911.html https://www.proactiveinvestors.com.au/companies/news/212911/european-lithium-has-near-term-dfs-catalysts-for-integrated-lithium-supply-strategy-in-europe-212911.html European Lithium Ltd (ASX:EUR) (FRA:PF8) (NEX:EUR) has its sights set firmly on a vertically integrated lithium supply strategy in Europe and has a number of near-term definitive feasibility study (DFS) catalysts which will see it move nearer to the prize.

Unlike most other ASX-listed lithium players that are focused on China or Korea, EUR sees Europe as the key to unlocking the value of its lithium strategy.

READ: European Lithium makes steady progress in advancing Wolfsberg Lithium Project

With an advanced lithium project in Austria, a European financing facility, German metallurgical and processing technology, and growing demand from the nascent lithium battery plants of Europe, it is little wonder the company has increased access to European investors.

This has come through the recent listing on the London-based NEX Exchange Growth Market.

READ: European Lithium debuts on NEX Exchange Growth Market in London

These factors also see the company investigating a listing on the Prime Market of the Vienna Stock Exchange (VSE) to complement the NEX listing and its existing Frankfurt and ASX listings.

The primary near-term catalysts include drilling, metallurgical test work and pilot processing.

These are centred on ongoing work on a DFS at the Wolfsberg Lithium Project in Austria.

Drill equipment mobilised

Equipment has been mobilised to the Wolfsberg site for a 31-hole drilling program aimed at upgrading the Zone I 10.98 million-tonne JORC-compliant resource into the measured and indicated categories.

Drilling applications have been lodged with relevant authorities and drill collar locations and pads for the program have been surveyed by a licensed surveyor.

Approval from the authorities is expected to be received this quarter following which drilling will begin immediately.

Higher mining rate proposed

Upgrading the Wolfsberg resource will allow the DFS to be undertaken at the envisaged higher annual mining rate of up to 800,000 tonnes.

Definition of the scope of work for the DFS engineering design and integration of third-party studies has been completed by The Mineral Corporation (TMC) together with DRA Global.

This was based on results of the PFS, which was published in April 2018.

The PFS identified geology, hydrogeology, mining, metallurgy, land access and environmental areas to be investigated for the DFS so that design changes during the DFS will be minimised.

SRK Consulting has also prepared the scope of work for the optimised mine design and increased declaration of mineral reserves, based on the PFS and drilling program results when completed.

READ: European Lithium commissions processing tests for lithium from Wolfsberg project

Last month Dorfner Anzaplan was awarded the contract for complex metallurgical test work and pilot processing as part of the DFS and immediately began work.

A 300-tonne sample with 150 tonnes each for Amphiboltite Hosted Pegmatite (AHP) and Micaschist Hosted Pegmatite (MHP) has been sent to Dorfner Anzaplan’s German testing facilities for the detailed metallurgical process studies through the pilot plant.

This testing is to ensure a high-quality final lithium hydroxide is produced using the most efficient and competitive metallurgical processes from the beginning of the production cycle.

A mineralised sample from the Wolfsberg project.

Marketing work

Product marketing work is also progressing.

A marketing study by Benchmark Minerals Intelligence for the PFS projected that lithium hydroxide prices in Europe would continue to increase to a peak in 2022 and then decline to stabilise.

Taking recent global lithium industry developments into account, the company’s integrated European supply strategy remains unchanged.

The company is in discussion regarding future European offtake contracts and good progress has been made in the advanced discussions with potential offtake partners.

READ: European Lithium director invests $200,000 into company options

European Lithium has a $10 million finance facility with MEF I, LP (Magna) to fast-track the completion of the DFS.

An initial amount of $2.5 million was drawn down on September 14, 2018, and a further $7.5 million is available in tranches upon the company meeting key milestones relating to the DFS process.

Horizon 2020 participation

The company’s subsidiary ECM Lithium AT GmbH has been invited to participate in the European Union funded Horizon 2020 - GREENPEG program.

This project aims to develop innovative exploration toolsets and proprietary technologies in order to secure the sustainable supply of lithium and other critical raw materials for Europe.

As it seeks to do this by increasing resources and reducing the import dependency of these raw materials, European Lithium’s strategy has potential to fit the bill.

This quarter ECM will submit the first of the two-stage submission process outlining suggested and planned works.

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Mon, 21 Jan 2019 09:06:00 +1100
Oakajee Corporation to acquire Paynes Find Gold Project https://www.proactiveinvestors.com.au/companies/news/212910/oakajee-corporation-to-acquire-paynes-find-gold-project-212910.html https://www.proactiveinvestors.com.au/companies/news/212910/oakajee-corporation-to-acquire-paynes-find-gold-project-212910.html Oakajee Corporation Ltd (ASX:OKJ) has entered into binding conditional purchase agreements to acquire the Paynes Find Gold Project in Western Australia.

The project is a combination of exploration, prospecting and mining licences and selected minerals rights across 112 square kilometres of ground within the Paynes Find Greenstone Belt.

Oakajee has also lodged two exploration licence applications over 1,113 square kilometre Birrindudu Nickel Project covering parts of the Birrindudu Basin in the Northern Territory.

The company believes the project has the potential to host magmatic nickel-copper-PGE sulphide mineralisation.

Moving into a known goldfield

By acquiring Paynes Find, Oakajee would be moving into a known goldfield that has had limited exploration.

The project has advanced drill read targets and access to infrastructure.

Work completed by geological consultants has identified three advanced targets based on the past exploration work.

The three priority targets are Matriarch Gold Workings, Paynes Find South, and North Structural Target.

Shareholder approval required

Considering for an 80% interest in the project is $30,000 non-refundable deposit which has already been paid and a further $30,000 cash and $75,000 worth of shares upon settlement.

Settlement is conditional to a number of terms including due diligence, completion of a capital raising, and shareholder approval.

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Mon, 21 Jan 2019 08:41:00 +1100
ParaZero applauds proposed FAA regulations for unmanned flight https://www.proactiveinvestors.com.au/companies/news/212935/parazero-applauds-proposed-faa-regulations-for-unmanned-flight-212935.html https://www.proactiveinvestors.com.au/companies/news/212935/parazero-applauds-proposed-faa-regulations-for-unmanned-flight-212935.html ParaZero Ltd (ASX:PRZ) is set to benefit from proposed Federal Aviation Administration (FAA) regulations which would allow routine flights over people and at night for the first time.

The US aviation authority is proposing three categories of aircraft with corresponding operational allowances for flight over people and will require certain safety conditions to be met.

ParaZero’s SafeAir safety solutions are ideally designed to fit into two of the three categories and will substantially increase commercial opportunities for the company.

 

ParaZero chief executive officer Eden Attias said the proposed regulations were a step in the right direction for the US market to conform to similar standards already operating in other jurisdictions.

Attias said: “They make good sense for an industry looking to expand and allow widespread commercial applications in construction, news and media, agriculture, first response and more.”

ParaZero is the only company which has had its parachute systems used in several successful waiver applications for flight over unprotected people.

The new regulations would replace the need for operational waivers and provide a strong regulatory environment.

READ: ParaZero expands into consumer market with launch of drone safety system

The three proposed categories separate aircraft by size and the level of kinetic energy potentially transferred to a human.

Category one would allow unrestricted flight over people for small drones weighing less than 250 grams whereas category two has a transferable kinetic energy limit designed to limit significant injuries.

The third category will allow flight over people with certain operational limitations and have a higher kinetic energy limit than category two.

READ: ParaZero secures second waiver for urban flight using novel drone safety solution

Former FAA Administrator and member of ParaZero’s advisory board Michael Huerta said: “ParaZero’s SafeAir Systems have already been proven to mitigate risk in real-life scenarios.

“This will help operators comply with the FAA’s requirements to ensure safety when operating over people.”

The key to comply with the second and third categories is to reduce the kinetic energy transferred to a human.

This can be done by reducing aircraft weight; incorporating a parachute; and using energy-absorbing materials in the aircraft design.

READ: ParaZero teams with drone safety training specialist to promote its novel technology

Attias continued: “For the unmanned aircraft industry, the proposed new regulations are the equivalent of requiring all cars to contain airbags as a standard safety feature.

“They provide significant commercial opportunities for ParaZero, particularly as the inclusion of our parachute safety system has already been approved by the FAA in waiver applications for flights over people.

“The FAA’s flexible ‘performance standards’ are technology-agnostic, allowing for the rapidly changing industry to continue innovating.

“ParaZero’s state-of-the-art safety solutions enable us to work directly with manufacturers and operators to ensure compliance with any new regulations should they evolve.

“Globally, the consumer and commercial drone markets have been growing rapidly and are expected to reach a combined US$30 billion by 2020.

“A strong regulatory environment in the US, which permits additional operational uses with in-built safety features, could see that figure grow exponentially.”

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Mon, 21 Jan 2019 02:35:00 +1100
Coolgardie Minerals begins stage two mining at its Geko gold mine in WA https://www.proactiveinvestors.com.au/companies/news/212930/coolgardie-minerals-begins-stage-two-mining-at-its-geko-gold-mine-in-wa-212930.html https://www.proactiveinvestors.com.au/companies/news/212930/coolgardie-minerals-begins-stage-two-mining-at-its-geko-gold-mine-in-wa-212930.html Coolgardie Minerals Limited (ASX:CM1) has begun stage two mining at its Geko Gold Project near Coolgardie, representing the higher-grade oxide component of the ore body.

Following the company’s three-stage mine plan for Geko, stage one was completed in December last year with ore above the grade of 22.75 g/t sold to gold major Northern Star Resources (ASX:NST) and the remainder stockpiled.

READ: Coolgardie Minerals signs ore sale agreement for Geko

The company entered into an ore sale agreement in September last year with Northern Star, who bought the first 100,000 tonnes of oxide ore at a fixed price of $1,650 per ounce.

Coolgardie managing director Brad Granville said the agreement was a significant milestone for the company.

He said: “This agreement is transitioning us from developer to producer and locking in consistent revenue through to quarter two, 2019.”

Grade above 2.75 g/t for sale under previous agreement

The oxide ore mined from stage two with a grade above 2.75 g/t gold will be offered to Northern Star for sale under the previously announced ore sale agreement.

Expected stage two mining results

  • 260,000 tonnes of ore mined
  • Average mined grade of 2.23 g/t
  • 18,640 ounces of contained gold

Stage three will mine the remainder of the orebody subject to the successful completion of stage two and securing a toll milling agreement acceptable to the company.

- Jessica Cummins

 

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Mon, 21 Jan 2019 01:56:00 +1100
Roots Sustainable Agricultural Technologies gains $278,000 from second Chinese sale https://www.proactiveinvestors.com.au/companies/news/212929/roots-sustainable-agricultural-technologies-gains-278000-from-second-chinese-sale-212929.html https://www.proactiveinvestors.com.au/companies/news/212929/roots-sustainable-agricultural-technologies-gains-278000-from-second-chinese-sale-212929.html Roots Sustainable Agricultural Technologies Ltd (ASX:ROO) has secured a new sale and installation agreement valued at $278,000 for an agricultural project in China.

It is the second commercial sale and installation agreement from Dagan Agricultural Automation, the company’s exclusive distribution partner in China.

The Israeli-based tech company will install Root Zone Temperature Optimisation (RZTO) heating and cooling systems in 10,000 square metres of greenhouses.

Five crops, including tomatoes, herbs and flowers, will be grown in these greenhouses.

Follows successful first agricultural project

This purchase order is payable to Roots in instalments during 2019, with the first instalment to be paid immediately.

The order follows successful completion of Roots’ first agricultural project with Dagan in 2018, where RZTO heating and cooling systems were installed in nine greenhouses.

This also formed part of Dagan’s distribution agreement with Roots which entails exclusivity conditional on US$19 million in sales over a five-year period.

“Great yield and quality increases”

Roots co-founder and CEO Dr Sharon Devir said: “This second order from Dagan further strengthens our presence in the world’s largest agricultural market and aligns with our long-term targets in the region.

“We’re already seeing great yield and quality increases from crops grown in the first project.

Second sale “validates confidence”

“This second substantial sale validates the confidence our distribution partner has in our root zone temperature optimisation technology.

“This is particularly important in a country which accounts for 53% (nearly 550 million tonnes) of global vegetable production.”

Devir said: “We believe China’s vast agricultural requirements offer significant long-term sales opportunities for Roots’ RZTO technology.

“We continue to focus on showcasing our technical capabilities and establishing sales networks in additional territories expecting that our sales activity with Dagan will increase dramatically in the coming years.”

Roots’ co-founder Boaz Wachtell told Proactive Investors recently the company’s proprietary technologies meant higher yields for farmers with lower energy use.

- Jessica Cummins

 

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Mon, 21 Jan 2019 01:43:00 +1100
Riversgold Ltd starts drilling at large Queen Lapage gold target in WA https://www.proactiveinvestors.com.au/companies/news/212926/riversgold-ltd-starts-drilling-at-large-queen-lapage-gold-target-in-wa-212926.html https://www.proactiveinvestors.com.au/companies/news/212926/riversgold-ltd-starts-drilling-at-large-queen-lapage-gold-target-in-wa-212926.html Riversgold Ltd (ASX:RGL) has begun drilling the Queen Lapage prospect in WA’s Eastern Goldfields, one of the company’s main exploration targets in 2017.

The initial aircore drilling program will comprise around 200 holes on an 800 metre by 200-metre grid and is expected to take three weeks to complete.

Hallmarks of “highly prospective gold target”

Riversgold managing director Allan Kelly said: “We believe Queen Lapage has all the hallmarks of a highly prospective gold target and the scale to potentially host multiple gold deposits along the Randall Shear Zone.”

Historical drilling, anomalous gold

Historical shallow drilling has also intersected anomalous gold at several locations within an interpreted shear zone to the west of Randall Fault, although the drilling was sporadic and limited to islands within the lake.

Local geology is characterised by a north-northwest trending package of mafic/ultramafic rocks and clastic sediments separated by a faulted contact, like that seen in the company’s Farr-Jones prospect.

READ: Riversgold discovers two new prospects and receives strong gold results at Farr-Jones

Last week the company discovered two new prospects at Farr-Jones, which returned strong gold results confirming the potential for multiple gold deposits to be delineated.

Highlights included:

  • 12 metres at 1,904ppb gold from 36 metres, including 8 metres at 2,818ppb from Little;

  • 4 metres at 1,026ppb from 56 metres from Eales;

  • 12 metres at 1,174ppb from 84 metres, including 8 metres at 1,732ppb from North Farr-Jones

- Jessica Cummins

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Mon, 21 Jan 2019 00:37:00 +1100
Carnarvon Petroleum readies Dorado appraisal for final investment decision in 2020 https://www.proactiveinvestors.com.au/companies/news/212925/carnarvon-petroleum-readies-dorado-appraisal-for-final-investment-decision-in-2020-212925.html https://www.proactiveinvestors.com.au/companies/news/212925/carnarvon-petroleum-readies-dorado-appraisal-for-final-investment-decision-in-2020-212925.html Carnarvon Petroleum Limited (ASX:CVN) is preparing for a final investment decision (FDI) for its Phoenix oil and gas project offshore Western Australia once appraisal of the Dorado discovery is complete.

The three wells at Dorado will undergo drill testing and technical studies this year to prepare for an investment decision in 2020.

 

The company believes the appraisal is warranted given the substantial resources and accompanying subsurface uncertainties encountered.

Carnarvon also has several near-development and exploration projects which are being advanced, including the 100%-owned Buffalo project in the western Timor Sea.

Environmental plans to drill three wells at Buffalo have been submitted and discussions regarding a production sharing contract with the Timor-Leste government are ongoing.

READ: Carnarvon Petroleum secures jack-up drill rig for appraisal program at Dorado discovery

Carnarvon managing director Adrian Cook said the company and its joint venture partner had moved swiftly in the last quarter to start preparations for appraisal of the Dorado discovery.

He said: “The 2019 Dorado appraisal program will put the joint venture in a strong position to consider the final investment decision in 2020.”

Cook also welcomed operator Santos Limited (ASX:STO) into the joint venture, noting the oil and gas major’s expertise would be invaluable as Dorado moves through the appraisal, development and production phases.

Santos become majority owner and operator of the Phoenix project after it acquired previous joint venture partner Quadrant Energy.

Carnarvon's aims for 2019

 

READ: Carnarvon Petroleum welcomes Santos move on joint venture partner Quadrant

The first Dorado well encountered substantial hydrocarbons with light oil, gas and condensate identified in a number of reservoirs.

A significant amount of data was collected from well logging and fluids sampling and comprehensive post-well evaluation of the data, including fluid analysis, reservoir studies, image log interpretation and core analysis, is underway.

The Dorado-2 appraisal well will target hydrocarbon columns in a down-dip location to confirm the extent of hydrocarbon accumulations and further calibrate reservoir and fluid properties.

A Noble Tom Prosser jack-up rig has been secured and is expected to begin drilling in April.

Drill stem tests for the Dorado-3 well are also being planned, which will be critical to understand reservoir performance and obtain representative fluid samples for the design of production facilities.

 

READ: Carnarvon Petroleum focusing on four key areas

Carnarvon is expanding Dorado’s exploration potential and has de-risked the nearby Roc South, Apus and Pavo prospects.

Cook said: “We are also focused on increasing the resource volumes which have already been discovered.

“This involves continuing work to further define the follow-up potential with the greater Dorado area – the stand-out prospects already identified are Roc South, Apus and Pavo.”

READ: Carnarvon Petroleum has strong potential to add to oil bounty of Dorado-1

Roc South is 13 kilometres from the crest of the Dorado structure and has a high probability of success with an estimated 74 million barrels of oil equivalent.

The prospect has a similar trap to Dorado as it is up-dip of the Roc discoveries and relies on the Dorado canyon for sealing and setting.

Apus and Pavo are estimated to contain 612 and 82 million barrels of recoverable oil, respectively.

Carnarvon's project portfolio

 

READ: Carnarvon Petroleum plans to drill Buffalo oilfield redevelopment taking shape

In discussions to progress Carnarvon’s Buffalo project both the company and the Timor-Leste government have agreed to the fundamental terms of a production sharing contract (PSC).

Carnarvon now aims to complete the contract and have it ready for signing upon the ratification of the Maritime Boundary Treaty between the Australian and Timor-Leste governments.

Cook said the discussions had been very positive to date with both parties agreeing in principles to the material elements of the PSC.

He added: “Carnarvon recently commenced a farm-out process for the Buffalo project.

“Discussions with potential partners are seeking to determine whether appropriate parties can add value and financing to the project while Carnarvon looks to bring both the Dorado and Buffalo projects into production.”

Along with submission of environmental plans, the company has completed a field surveillance program in the Buffalo area.

This indicated that there were no impediments to locating the wells in the surface locations most ideal for targeting the identified attic of oil.   

READ: Carnarvon Petroleum Dorado discovery “one of the largest oil resources ever found on the North West Shelf”

Exploration work at other projects will include acquiring additional 3D seismic at the Ivory prospect within the Labyrinth project, close to the Dorado, Roc and Phoenix South discoveries.

Carnarvon’s geological analysis has identified 1.5 billion barrels of recoverable prospective resource within the permit and an estimated 420 million barrels of mean recoverable oil from the Ivory prospect.

Technical work at the Maracas project southwest of Labyrinth is ongoing and once complete the company will initiate a farm-out process to find a partner to continue testing of identified targets.

Maracas is offshore near Dampier and near existing infrastructure, producing fields and discoveries.

The permit area has shallow water depths of 60 metres and can be drilled with a cost-effective jack-up drilling rig.

Both the Condor and Eagle projects, south of the Buffalo field, are undergoing field work and technical analysis.

Carnarvon was awarded the Eagle permit last year with minimal commitments and will look to find a partner as it develops the project.

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Mon, 21 Jan 2019 00:02:00 +1100
Pure Minerals lands positive scoping study for proposed Townsville battery metals refinery https://www.proactiveinvestors.com.au/companies/news/212922/pure-minerals-lands-positive-scoping-study-for-proposed-townsville-battery-metals-refinery-212922.html https://www.proactiveinvestors.com.au/companies/news/212922/pure-minerals-lands-positive-scoping-study-for-proposed-townsville-battery-metals-refinery-212922.html Pure Minerals Limited (ASX:PM1) has received positive scoping study results demonstrating the potential for a proposed battery metals refinery in Townsville, north Queensland.

The study was completed by Queensland Pacific Metals (QPM), a privately-owned entity which Pure Minerals has secured an option to acquire.

The study was based on annual throughput of 600,000 wet tonnes to produce around 25,400 tonnes of nickel sulphate hexahydrate and 3,000 tonnes of cobalt sulphate heptahydrate.

Ore from New Caledonia

This would represent about 5,670 tonnes of contained nickel and 630 tonnes of contained cobalt with high-grade ore sourced from New Caledonia.

Other valuable products which would be produced include hematite, alumina and magnesium oxide at annual rates of around 221,000 tonnes, 8,700 tonnes and 4,600 tonnes respectively.

The study revealed a total capital cost of US$297 million, which includes a contingency of US$65 million.

“Economics can be improved further”

QPM director John Downie said: “We are confident that project economics can be improved further, especially in the area of transport, processing, power and energy costs.”

He said this would come from optimising the flowsheet, utilising heat recovery and investigating other co-products not considered in the study including pig iron, high purity alumina and scandium.

Market project to offtakers

Pure Minerals chairman Eddie King said: “I am very excited with the results of QPM’s scoping study which highlight potentially significant value for PM1 shareholders.

“Combining this study with the recent appointment of Top Resources Group, the team can now begin to market the project’s investment metrics to potential offtake parties and strategic parties.”

Notable findings

Key findings of the study are:

  • Townsville is a region that is well supported by existing infrastructure;

  • Townsville has direct access to consumables required to operate the refinery as well as skilled labour;

  • The project can be constructed using readily available industrial materials using the Direct Nickel Process, minimising lead times and capital;

  • The product suite that can be produced has a positive market outlook and adds diversity to the refinery’s revenue stream, reducing exposure to any single commodity price; and

  • The study identified other potential opportunities to improve project economics that should be investigated in future feasibility studies.

- Jessica Cummins

 

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Sun, 20 Jan 2019 22:58:00 +1100
Chalice Gold Mines is fully funded and ready to move Pyramid Project forward. https://www.proactiveinvestors.com.au/companies/stocktube/11909/chalice-gold-mines-is-fully-funded-and-ready-to-move-pyramid-project-forward-11909.html https://www.proactiveinvestors.com.au/companies/stocktube/11909/chalice-gold-mines-is-fully-funded-and-ready-to-move-pyramid-project-forward-11909.html Chalice Gold (OTCMKTS: CGMLF)CEO Alex Dorsch sat down with Steve Darling from Proactive Investors at the Vancouver Resource Investment Conference. The Perth-based Australian company focuses on the exploration and development of gold, copper, vanadium and nickel deposits in Australia and Canada.

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Sun, 20 Jan 2019 22:08:00 +1100
Australian Vanadium gets diamond drill bit spinning at Gabanintha Vanadium Project https://www.proactiveinvestors.com.au/companies/news/212921/australian-vanadium-gets-diamond-drill-bit-spinning-at-gabanintha-vanadium-project-212921.html https://www.proactiveinvestors.com.au/companies/news/212921/australian-vanadium-gets-diamond-drill-bit-spinning-at-gabanintha-vanadium-project-212921.html Australian Vanadium Ltd (ASX:AVL) has begun metallurgical and resource diamond drilling at its Gabanintha Vanadium Project near Meekathara in Western Australia.

The program is designed to update the current mineral resource by drilling a number of holes to test at depth, trial new spectral and XRF scanning techniques and gather further geotechnical data.

Confirm circuit performance

Australian Vanadium director Vincent Algar said: “The 30 tonnes of material from this program are essential to confirm the performance of the circuit we have already defined in the PFS.

“As we complete the detailed design of the plant, it is essential we move from bench-scale tests to larger-scale tests using anticipated blends of ore that will be mined.

“Focusing on quality”

Algar also said: “A detailed pilot metallurgical program allows us to test and refine the circuit ensuring no surprises during actual mine production.

“The AVL team is focusing on quality as it advances through the work ahead.

“This quality will assist us in securing project funding partners and bringing Gabanintha into production.”

 

Innovative drilling procedures

Diamond holes will be drilled into the designed pit shell at the mining lease application to extract around 30 tonnes of oxide, transitional and fresh core samples for metallurgical work.

AVL will use innovative drilling procedures to reduce costs and drilling time as well as to maximise tonnage and information per hole during the program.

The program aims to intersect the mineralisation and provide key geo-metallurgical information on pit wall angles and free-dig boundaries in the waste rock.

Earlier this month Algar spoke to Proactive Investors about the Gabanintha project and its plans to complete a definitive feasibility study.

READ: Australian Vanadium boosts vanadium resource de-risking project further

In November 2018 AVL increased the size and confidence of its JORC-compliant resource as a result of 19 RC holes for 1,863 metres and three diamond holes for 368.2 metres.

The updated total resource of 183.6 million tonnes at 0.76% vanadium pentoxide notably features a massive magnetite high-grade zone (HG10) of 96.7 million tonnes at 1% vanadium.

 

Algar said at the time: “The increased understanding and confidence further strengthens Gabanintha’s position as a world-class vanadium project in its size, grade and metallurgical recovery parameters.

“This update highlights our ability to leverage our significant strike length advantage to cheaply add more low-risk resource, optionality and mine life to the project.”

READ: Australian Vanadium’s pre-feasibility study confirms robust economics for Gabanintha deposit

In December last year the company released the pre-feasibility study results reporting a maiden ore reserve of 18.24 million tones at 1.04% V205.

Gabanintha’s maiden ore reserve comprises a proved reserve of 9.82 million tones at 1.07% V205 and a probable reserve of 8.42 million tonnes at 1.01% V205.

 

It is expected the site will produce around 900,000 tonnes per annum of 1.40% V205 magnetite concentrate at an average yield of 60%.

The planned V205 refinery at the site will have a production rate of 22.5 million pounds of V205 per annum over an initial mine of 17 years.

- Jessica Cummins

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Sun, 20 Jan 2019 21:35:00 +1100
Admedus secures $8.6 million as Sio Partners becomes substantial holder https://www.proactiveinvestors.com.au/companies/news/212919/admedus-secures-86-million-as-sio-partners-becomes-substantial-holder-212919.html https://www.proactiveinvestors.com.au/companies/news/212919/admedus-secures-86-million-as-sio-partners-becomes-substantial-holder-212919.html Admedus Limited (ASX:AHZ) has secured a further $8.6 million in funding through shares placed to an initial substantial holder in its underwriting agreement from late November.

The new substantial holder Sio Partners and Capital Management have obtained 131,120,851 fully paid ordinary shares in Admedus, representing a 22.2% interest in the bio-tech company.

The company’s partially underwritten renounceable pro-rate entitlement offer was completed last quarter and raised a total of $19 million.

Admedus had a closing cash balance of $12 million at the end of last year.

READ: Admedus directors show faith in company by participating in rights issue

Revenue for the quarter was $6.5 million, nearly half made up by ADAPT sales which represents growth of 46% over the prior corresponding period.

This has been driven by double-digit growth in all regions as well as favourable US dollar foreign exchange movements.

The North American business grew by 61% and featured the launch of Admedus’ expanded CardioCel 3D product range.

ADAPT in Europe grew 17% and Admedus’ Infusion division delivered sales of $3.5 million, growing 17% excluding the termination of its GO Medical distribution agreement.

READ: Admedus appoints new chief medical officer to focus on growth opportunities

ADAPT is a pioneering technology that enables the manufacture of biomaterial scaffolds that mimic human tissue.

It has been used to create scaffolds, such as the next generation collagen scaffold VascuCel, used in cardiac repairs and reconstruction procedures for many years.

The rights issue marks an important step in Admedus’ recapitalisation plan that it has been working towards since August 2018.

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Sun, 20 Jan 2019 21:28:00 +1100
Red River Resources Ltd targets mill processing increases with systematic approach https://www.proactiveinvestors.com.au/companies/news/212918/red-river-resources-ltd-targets-mill-processing-increases-with-systematic-approach-212918.html https://www.proactiveinvestors.com.au/companies/news/212918/red-river-resources-ltd-targets-mill-processing-increases-with-systematic-approach-212918.html Red River Resources Ltd (ASX:RVR) (FRA:R1R) is systematically working towards its ambition to further increase the ore processed at its Thalanga mill in Queensland so it can reach full annual capacity of 650,000 tonnes.

The Perth-based company has its sights set on continued improvements at its Thalanga Operations this quarter after record production in the December quarter.

The base metals producer increased its production take at the Thalanga Operations during the September and December quarters of 2018, the company revealed a week ago.

Revenue in the September 2018 quarter from concentrate sales had been $16.3 million.

Red River’s total tonnes mined for Thalanga came solely from the West 45 deposit.

West 45 had a JORC-compliant ore reserve of 567,000 tonnes grading 11.6% zinc equivalent and a mineral resource estimate of 582,000 tonnes grading 15.45% zinc equivalent using a cut-off grade of 5% zinc equivalent, on December 20, 2017.

The north Queensland project is 65 kilometres southwest of Charters Towers.

READ: Red River Resources breaks quarterly operating records at Thalanga

Red River underwent a step change increase in production in the June 2018 quarter at Thalanga, increasing production by 19 tonnes, or 29.2%, to 84 tonnes a quarter during the period.

Ore processed was 95,000 tonnes for the December 2018 quarter and 187 tonnes for the December 2018 half-year to 187,000 tonnes — an annualised 374,000 tonnes which does not take into account expected future increases to production at the site.

Red River has previously said it hoped to take advantage of “high cyclical zinc prices and historically low zinc concentrate treatment charges”.

It expects additional tonnages to attract incremental processing cost increases.

During the quarter 7,695 tonnes of zinc concentrate were produced, along with 3,007 tonnes of lead concentrate and 725 tonnes of copper concentrate.

Copper recoveries continued to improve with 54.1% recovery to copper concentrate achieved for the three-month period.

An indication of this improvement was also evident in December’s 73.2% recovery to copper concentrate.

December quarter production statistics for Red River’s Thalanga Operations

December quarter production statistics for Red River’s Thalanga Operations

Thalanga consists of 7 million tonnes grading 2.5% copper, 3.7% lead, 11.7% zinc, 0.6 g/t gold and 98 g/t silver.

The project area is one of five held by the company over 610 square kilometres on the prospective Mt Windsor Belt, with the others being Liontown Waterloo, Highway Reward, Ermine and Trooper Creek.

Exploration at the five projects is authorised by 13 minerals exploration permits.

Another deposit in Red River’s landholding was previously discovered and mined like Thalanga — Highway Reward, a 3.8 million tonne deposit grading 6.2% copper and 1 g/t gold.

Red River’s achievements in the September 2018 quarter included a maiden JORC mineral resource estimate of 1.5 million tonnes grading 12.2% zinc equivalent for the Liontown East deposit and an increase in the Liontown project mineral resource to 3.6 million tonnes grading 10% zinc equivalent.

The company is also hoping to define mineable tonnes at Orient and incorporate these with Liontown Waterloo’s resources into its mine plan.

Red River’s corporate strategy is to ‘find more ore’ so it can reach the full capacity of its 650,000 tonnes a year plant at Thalanga.

The approach involves extending the life of known deposits, optimising cut-off grades, finding next-generation deposits at Thalanga and acquiring new projects or reaching strategic agreements with other project owners.

Red River’s focused exploration efforts are to use cutting edge technology and the latest exploration methodologies.

The company expect new project acquisitions and strategic agreements will help it process more ore through its plant.

READ: Red River Resources Limited has more strong base and precious metals results underground at Thalanga

Production of copper, lead and zinc concentrate started at the Thalanga mining operation in September 2017.

The company views the production restart at Thalanga as evidence of its strategic approach.

Red River wrote at its website: “Restart of production at Thalanga has demonstrated Red River’s focus and commitment to ‘deliver prosperity through lean and clever resource development’.

“We look forward to the continuing to deliver through finding more ore at Thalanga and growing Red River to become a multiple asset, mid-tier mining company.”

READ: Red River Resources lowers costs, increases earnings in September quarter

Red River managing director Mel Palancian said last week: “We are looking forward to continued improvements in the March quarter.”

The company plans to start production at its Far West deposit at Thalanga in the March 2019 quarter.

Red River’s March 2019 quarterly figures will be the first to include ore mined from outside the West 45 deposit as the company targets a 276,000 tonnes a year, or 74%, increase in ore processed at its plant.

Far West deposit has an estimated mine life of six years and a reserve of 1.5 million tonnes at 12% zinc equivalent.

READ: Red River Resources development at Far West on track to increase Thalanga production

The company advanced the decline of the Far West deposit in preparation last quarter, with further drilling early this year to target extensions to high-grade mineralisation.

Managing director Palancian highlighted continued improvements to mine production and processing plant efficiency in what will prove a prequel to the company’s quarterly activities report.

He wrote on behalf of the board: “RVR is focused on maximising returns from the operation by increasing plant throughput and extending mine life through increasing mineral resources and ore reserves at deposits currently in the mine plan (West 45, Far West and Liontown Waterloo).

Palancian reported the company also planned to convert “mineral resources into ore reserves at Liontown and Orient and … aggressively (explore) our growing pipeline of high-quality targets and projects.”

Red River’s full quarterly report is due by the end of January 2019.

READ: Red River Resources intersects high-grade gold and base metals between Liontown deposits

Red River breaks down its quarterly and half-year production figures into the gradings for copper, lead, zinc, gold silver and zinc equivalent.

Besides ore mined, the company tracks ore processed, zinc concentrate produced, lead concentrate produced and copper concentrate produced.

Financial results

In the September 2018 quarter, the company had concentrate sales revenue of $16.3 million, achieved with a 25% lower C1 cash cost of US 70 cents a pound of payable zinc metals.

The earnings before interest, tax, depreciation and amortisation (EBITDA) of the Thalanga Operations underwent a turnaround, increasing by $1.7 million to $1.3 million dollars.

Red River ended the September quarter with $17.4 million cash and a further $8.8 million in cash-backed security bonds.

The company’s US$10 million working capital facility had not been drawn down.

— with John Miller

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Sun, 20 Jan 2019 20:55:00 +1100
Metminco confirms high-grade gold at prospect near proposed Colombian gold mine https://www.proactiveinvestors.com.au/companies/news/212916/metminco-confirms-high-grade-gold-at-prospect-near-proposed-colombian-gold-mine-212916.html https://www.proactiveinvestors.com.au/companies/news/212916/metminco-confirms-high-grade-gold-at-prospect-near-proposed-colombian-gold-mine-212916.html Metminco Limited (ASX:MNC) has confirmed high-grade gold in underground channel sampling at the Chuscal prospect within its Quinchia Gold Project in Colombia.

Chuscal is one of two targets being developed in the area around Metminco’s proposed Miraflores mine which is an advanced project in the mine-permitting stage.

The company will begin drilling at Chuscal once exploration titles are granted and all permits and approvals obtained, which it anticipates will occur early in the second quarter 2019.

The channel sampling results were obtained by a previous owner in 2012 and have only now undergone full analysis and JORC-compliance.

Chuscal is held in a joint venture with AngloGold Ashanti (ASX:AGG) where Metminco is earning a 51% interest through the expenditure of US$2.5 million over 3 years.

READ: Metminco enters JV to develop Colombian gold project with AngloGold

Metminco executive chairman Kevin Wilson said: “Chuscal is an exciting project for us as it could make a significant positive impact on the head-grade and tonnage throughput into the Miraflores plant.

“The underground results confirm the presence and continuity of high-grade gold veins within the porphyritic diorite at Chuscal, which itself is mineralised.

“We now need to focus on drilling to delineate the extent of the mineralisation and demonstrate the presence of other high-grade gold zones within the extensive surface gold anomaly.

“Compared to Miraflores and Tesorito, Chuscal has the advantage of being potentially an open-cut operation with high-grade gold zones.”

Deposits and targets within Metminco’s Quinchia gold portfolio

 

READ: Metminco launches rights issue to advance Quinchia Gold Project

The channel sampling comprised 120, two-metre long samples taken along the length of underground workings at a small-scale historical mine known as the Guayacanes tunnel.

These delivered gold grades up to 250 g/t with 10% of samples grading over 10 g/t at an average of 62.7 g/t.

The higher gold grades are associated with two or three vein systems with elevated silver grading up to 59 g/t as well as associated arsenic, antimony, tungsten and tellurium.

In the cross-cuts between the identified gold veins, continuous lower-grade mineralisation of 1-3.9 g/t gold is present.

READ: Metminco focused on its portfolio of gold assets at Quinchia in Colombia

Chuscal features an extensive undrilled surface gold geochemical anomaly, defined by rock-soil and rock chip sampling, with high-grade sample results up to 54 g/t.

The samples from the central zone of the prospect average 2.66 g/t and lie within a 900 by 530-metre envelope averaging 1.76 g/t.

Analysis of the multi-element geochemistry and correlation with surface mapping confirms that gold mineralisation is hosted by a porphyritic diorite but also extends into altered monzonite.

Two types of mineralisation are clearly distinguishable: an early stockwork phase of disseminated mineralisation averaging 1.5 g/t; cut through by a later high-grade epithermal vein population average about 8 g/t.

READ: Metminco joins electric vehicle charge with nickel acquisition

Chuscal and the second target Tesorito are 1,700 and 500 metres, respectively, from the proposed Miraflores gold mine.

Miraflores’ deposit is 100% owned by Metminco and holds a 0.88-million-ounce resource.

The proposed mine is undergoing an environmental impact assessment due for submission this year, which also includes assessment of a gold treatment plant.

Along with Miraflores, the Quincha project also contains the Dosquebradas deposit which is 100% Metminco-owned and has a 0.92-million-ounce gold deposit estimated under NI 43-101.

Recent drilling at the Tesorito prospect intersected 253 metres at 1.01 g/t from surface, including 64 metres at 1.67 g/t from 144 metres.

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Sun, 20 Jan 2019 20:09:00 +1100
Metro Mining to bring Bauxite Hills mining in house, restart operation in June quarter https://www.proactiveinvestors.com.au/companies/news/212863/metro-mining-to-bring-bauxite-hills-mining-in-house-restart-operation-in-june-quarter-212863.html https://www.proactiveinvestors.com.au/companies/news/212863/metro-mining-to-bring-bauxite-hills-mining-in-house-restart-operation-in-june-quarter-212863.html Metro Mining Ltd (ASX:MMI) (FRA:6ME) plans to bring mining back in-house this year as it tips a 75% increase to tonnes mined annually at it Bauxite Hills mine in far north Queensland to 3.5 million wet metric tonnes (wmt).

Representatives for the award-winning mine waved off 33 vessels last year, with the final ship departing for China in December 2018.

READ: Metro Mining achieves guidance, ships over 2 million tonnes bauxite in 2018

Despite Cyclone Owen’s effect on the Brisbane-based company, its crew still managed to load 220,000 tonnes of bauxite last month.

2018 was the company’s first year of operations at the Bauxite Hills mine and it met its guidance target of 2 million wmt of shipped production.

At the dawn of the new year, Metro Mining’s total shipped production figure for 2018 was 2.037 million wmt from Bauxite Hills.

The mine began production in April 2018 and has an estimated reserve of 92.2 million tonnes and total resources of 144.8 million tonnes.

It is tipped to deliver bauxite into China over a 17-year mine life.

Metro managing director & CEO Simon Finnis acknowledged the production milestone on December 31, 2019, saying: “This is a great result for Metro.

“Not only have we achieved guidance for 2018 in our first operational year, but we’ve done so after our operations have twice been interrupted by cyclones, at either end of the operating year.”

 

Metro will up production levels this year, announcing in November 2018 it would set guidance at 3.5 million wmt to meet strong customer demand.

In late November the company had contracts for 69% of the expanded 2019 production forecast.

Finniss said at the time: “This year your company has transitioned smoothly from a developer to a producer with a significant growth outlook and continues to look for ways to improve and take advantage of market forces.”

One of the ways the company plans to improve is to bring production in-house.

The company plans to restart its operations in April 2019, after the wet season, and have its team mine the resources.

READ: Metro Mining will lift bauxite production to meet strong demand from customers

As a result, Metro has terminated its contract mining agreement with SAB Mining.

Finnis explained: “Now that we’ve commissioned and ramped up the project during 2018, it is a natural transition to own and operate our mining equipment.

“We have an excellent management team in place at the mine that is eminently capable of managing the mining function, so we see this as a logical step to increase efficiencies and reduce operating costs as we increase production to 3.5 million tonnes in 2019.”

READ: Metro Mining Ltd re-elects Stephen Everett, Mark Sawyer, affirms ambitions

To prepare for mining in the June 2019 financial quarter, Metro will undertake a number of activities in the March 2019 quarter, including:

  • Supplementing Bauxite Hills’ truck and haulage fleet configuration;
  • Duplicating screening capacity at its Barge Loading Facility;
  • Accelerating installation of a jaw crusher to enable shipment of any oversized material; and
  • Supplementing the marine fleet and on-water infrastructure to maximise tug and barge movement efficiency.

Much of the Bauxite Hills existing plant and infrastructure has been designed to accommodate higher operating levels, so the initiatives may prove low-cost and easy to implement.

The company is also planning to update a stage II scenario from its definitive feasibility study (DFS) in the second half of 2019 to incorporate a production expansion to 6 million tonnes and then present an investment option to Metro’s board.

Coal assets review

Metro is undertaking a review of opportunities for its coal assets which are housed in a subsidiary.

Major shareholder DADI Engineering Development Group’s former representative on the Metro board Xiaoming (Aaron) Yuan joined the subsidiary’s board in November 2018 on his retirement from Metro’s board.

Yuan spent eight years on Metro’s board.

Two options for the coal assets are divesting them or forming a joint venture.

Quarterly cash report

Metro had $22.9 million cash at the end of the September 2018 quarter, with cash and trade receivables sitting at $38.2 million.

The company used $3.2 million on operating activities during the quarter, spending $558,000 on investing activities and directing $3.4 million net cash towards financing activities.

Sales revenue for the period was $43.8 million after 822,000 wmt was shipped to five Chinese customers, including foundation customer Xinfa Group Corporation Limited.

Unit costs were about $46 a wmt.

The company had $14.77 million in loan facilities on September 30, 2019, with the full amount drawn down.

Metro’s estimated cash outflows for the December 2019 quarter were $44.3 million.

Tight capital structure

On August 28, 2018, Metro’s top 20 shareholders held 76.52% of the company.

There were 1,059,106,012 ordinary shares on issue.

The company’s substantial holders consisted of number-one shareholder Greenstone Management (Delaware) II LLC, with 19.75%, number two Balanced Property Group (15.22%), and number three BlackRock Group (Black Rock Inc and related entities) (10.82%).

Dadi Engineering Development (Group) Co Ltd and related entities was the fourth largest shareholder (5.65%) while Renaissance Smaller Companies was fifth largest (5.26%).

— with John Miller, Tharun George

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Sun, 20 Jan 2019 16:45:00 +1100
Emmerson Resources pegs out territory for royalty-style returns https://www.proactiveinvestors.com.au/companies/news/212845/emmerson-resources-pegs-out-territory-for-royalty-style-returns-212845.html https://www.proactiveinvestors.com.au/companies/news/212845/emmerson-resources-pegs-out-territory-for-royalty-style-returns-212845.html Emmerson Resources Limited (ASX:ERM) (FRA:42E) has set a template for returns from its Tennant Creek mines in the Northern Territory, trucking ore from a small mine to a Territory Resources Ltd mill where the strategic partner will toll treat the gold.

The Western Australian company welcomed the trucking of first ore from the divested Edna Beryl mine last month to the mill at Cloncurry in northwest Queensland.

New mine owner Territory’s achievement was welcomed by Emmerson, which was to receive first commercial returns from Tennant Creek Mineral Field (TCMF) thanks to the milestone, in the form of 12% of gold produced.

Emmerson managing director Rob Bills told Proactive Investors’ Stocktube video channel the Edna Beryl first-trucking achievement had made for a “very remarkable day” for the company.

READ: Emmerson Resources to achieve first commercial gold returns from Tennant Creek field

Bills acknowledged last month the company had changed tack, saying “it’s more like a royalty company now out of Tennant Creek.

“Now that we’ve got a processing route, a way to monetise these things, potentially once we drill out Mauretania, then that will also become one of the small mines.

“We obviously have to negotiate commercial terms with Territory around that, but we now have a processing route, so we can monetise it.

“From the shareholder point of view, rather than just doing exploration and it sitting there, we can now monetise it.”

Selling the mines and taking a share of the gold or profit brings in returns for the company which also sold a mill on the field to Territory, which the partner is refurbishing.

Bills told Proactive Emmerson planned to use the funds collected from its monetisation model to self-fund exploration at its projects in the NT and New South Wales.

He said in the December 12 interview: “We have aimed to get to the production stage as soon as possible so this arrangement short-circuits the process and enables us to get early cash flow.

“Edna Beryl is the first of our small mines and we get 12% of the gold produced out of that mill.

“We do not pay for any of the mining, processing or transport, so it doesn’t really matter where it gets processed.”

 

The strategic partners’ templated approach will result in varied returns to the company, depending on the arrangement.

Bills told Stocktube: “We get 12% of the gold, 6% of the gold or a profit share-type basis and Territory does the mining and processing.

“In terms of the other small mines, at this stage, it looks like Black Snake and maybe Chariot will be the next mines.

“This will be determined by a mine schedule which Territory is doing a lot of work on, while the permitting process is being progressed by the Northern Territory Government.”

Emmerson's priority focus at Tennant Creek in the NT

Emmerson's priority focus at Tennant Creek in the NT

Tennant Creek Mineral Field assets

Emmerson has accumulated a portfolio of small mines in the Tennant Creek Mineral Field (TCMF).

The TCMF is one of Australia's highest grade gold and copper fields, producing more than 5.5 million ounces of gold and 470,000 tonnes of copper from historical deposits including Warrego, White Devil, Orlando, Gecko, Chariot and Golden Forty.

Emmerson made the first discoveries on the field in a decade, with the finds including high-grade gold at Edna Beryl and Mauretania and copper-gold at Goanna and Monitor.

Emmerson sold Territory the Warrego Mill on the Tennant Creek field last year.

The partner will use the mill it is refurbishing it to service future production from the mineral field.

This refurbished mill will come on board in the June 2019 half-year, and could be ready as early as the March 2019 quarter.

Emmerson’s managing director said the benefits of the strategic alliance were that it had the exploration expertise while Territory had the mining and milling capability.

“This will enable us to work together to unlock all of these stranded gold assets.”

Although Emmerson sold Edna Beryl, the company has retained 100% of the remaining 75% of the Tennant Creek field, including the recent discovery at Mauretania.

The company finished drilling on the field in December 2018 and is expecting results from the drilling campaign by late January or early February 2019.

Bills confirmed the expected timing and told Stocktube: “One of our flagship discoveries called Mauretania … we drilled some really exciting looking rocks there, and some very thick intersections of what we think potentially could the host of the gold.

“So, it all looks very exciting.”

Emmerson ground in NSW

Emmerson ground in NSW

New South Wales portfolio plans

Emmerson also holds ground in NSW, on the Macquarie Arc.

In 2015, Emmerson identified Macquarie Arc in NSW as an under-explored, world-class porphyry copper-gold province.

The arc hosts more than 80 million ounces of gold and more than 13 million tonnes of copper, with the deposits heavily weighted to areas of outcrop or limited cover.

Emmerson believes there is an opportunity to apply its predictive targeting models and systematic exploration approach to discover new deposits of copper and gold on the field.

The company said five of its projects in the state had many attributes seen in deposits on the arc but had been under-explored due to overlying cover, such as farmland, and lack of systematic exploration.

Fifield project in NSW, which features the Whatling Hill copper-gold prospect

Fifield project in NSW, which features the Whatling Hill copper-gold prospect

Emmerson plans to drill its NSW ground this year, at targets such as the Whatling Hill copper-gold prospect at Fifield project.

The explorer had encouraging soil geochemistry results from an enlarged aircore drilling program at the discovery and is increasing its landholding in the area, within the Lachlan Transfer Zone.

Bills told Proactive’s Stocktube video channel in November 2018 the company believed it had found a cluster of deposits in NSW.

He said: “Our thinking is that we’re onto a number of these deposits.

“There's some good news at Kadungle, we’ve now got good news at Whatling Hill and south of Watling Hill; so we think that we’re onto a cluster of these porphyry copper deposits.”

 

Capital matters

Emmerson had $4 million cash at the end of September 2018 financial quarter after using $797,000 for operating activities, tipping $56,000 into investing activities and taking $1 million from issuing shares during the quarter.

On September 27, 2018, the company had two substantial shareholders, JP Morgan Nominees Australia Limited with 12.63% and Evolution Mining Limited with 11.84%.

The then top-two duo held 24.46% of the company.

READ: Emmerson Resources major shareholder increases stake by nearly 10 million shares

Emmerson’s top 20 largest ordinary shareholders held a collective 49.65% of the company in late September 2018.

Among the investors was Noontide Capital Pty Ltd with 2.73%.

Noontide progressively upped its stake in the project in the months that followed, holding a 16.8% stake at the time of its last declaration in November 2018.

— with Danielle Doporto, John Miller

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Sun, 20 Jan 2019 16:30:00 +1100
Pacific American Coal Limited looking for partnerships with its project in B.C. https://www.proactiveinvestors.com.au/companies/stocktube/11901/pacific-american-coal-limited-looking-for-partnerships-with-its-project-in-bc-11901.html https://www.proactiveinvestors.com.au/companies/stocktube/11901/pacific-american-coal-limited-looking-for-partnerships-with-its-project-in-bc-11901.html "Pacific American Coal Limited (ASX:PAK) IR general manager Simon Klimt sat down with Proactive Investors at the Vancouver Resource Investment Conference.

The Sydney-based company focuses on the production, development, and exploration of metallurgical coal assets in North America. The Australian company’s flagship property is the Elko coking coal project, which covers an area of 3,571 hectares located in British Columbia, Canada. Coal from the Elko region contains coking properties that are sought after by South East Asian steel mills."

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Sun, 20 Jan 2019 15:46:00 +1100
Leading Edge Materials prepares to start prep work on Battery Demo Plant https://www.proactiveinvestors.com.au/companies/stocktube/11896/leading-edge-materials-prepares-to-start-prep-work-on-battery-demo-plant-11896.html https://www.proactiveinvestors.com.au/companies/stocktube/11896/leading-edge-materials-prepares-to-start-prep-work-on-battery-demo-plant-11896.html Leading Edge Materials (CVE:LEM) President and CEO Blair Way joined Steve Darling from Proactive Investors Vancouver to provide a 2018 recap on the Sweden based company. Way also shared details of their capital raise.

  Way also gave some details about the progress on their Battery Demo Plant and the major advantages the company has being in Sweden. 

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Fri, 18 Jan 2019 18:14:00 +1100
Nelson Resources applies for new exploration tenements in the Eastern Goldfields https://www.proactiveinvestors.com.au/companies/news/212842/nelson-resources-applies-for-new-exploration-tenements-in-the-eastern-goldfields-212842.html https://www.proactiveinvestors.com.au/companies/news/212842/nelson-resources-applies-for-new-exploration-tenements-in-the-eastern-goldfields-212842.html Nelson Resources Ltd (ASX:NES) has applied for two new tenements in the vicinity of its Socrates and Grindall projects in Western Australia’s Eastern Goldfields.

These tenements include a substantial portion of Sipa Resources Ltd (ASX:SRI) and Newmont Exploration’s historical Woodline project and fully incorporates the Theofrastos prospect (now referred to as the Redmill project).

Interestingly, these companies have spent circa $2.6 million on exploration on Redmill.

Current projects and applications

The tenement applications (if granted) will take Nelson’s landholding in this highly prospective area from 150 square kilometres to about 450 square kilometres.

Nelson’s new works programs will include follow up and evaluation of the previous exploration in the area.

 

Redmill Project

The Redmill project is defined by a 6-kilometre by 2-kilometre gold-in-calcrete anomaly.

The mineralised system is thought to be hosted in granitoid and micro diorite with variable degrees of deformation.

Notably, previous reverse circulation drilling (27 wide-spaced holes) consistently intersected a zone of altered rocks with disseminated sulphides.

Highlight results include:
10 metres at 1.3 g/t gold from 64 metres;
14 metres at 0.25 g/t gold from 50 metres; and
19 metres at 0.17 g/t gold from 126 metres.

READ: Nelson Resources receives gold results of up to 69.9 g/t at Yarri

The company recently received strong gold results from three prospects at its Yarri project, including a bonanza grade of 69.9 g/t.

Reverse circulation drilling returned high-grade intersections from the three prospects tested - Wallaby, Gibberts and Great Banjo.

Woolshed Well tenements relinquished

Nelson has relinquished its Woolshed Well tenements after determining that these are non-core assets and are not likely to deliver any value to the company.

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Fri, 18 Jan 2019 16:28:00 +1100
GBM Resources approaches 1 million ounces resource at Mount Coolon Gold Project https://www.proactiveinvestors.com.au/companies/news/212841/gbm-resources-approaches-1-million-ounces-resource-at-mount-coolon-gold-project-212841.html https://www.proactiveinvestors.com.au/companies/news/212841/gbm-resources-approaches-1-million-ounces-resource-at-mount-coolon-gold-project-212841.html GBM Resources Ltd (ASX:GBZ) has upgraded the resource at its Mount Coolon Gold Project in Queensland to 963,000 ounces of gold at 2.2 g/t.

The 66% increase in total resource was achieved by adding the 633,000 ounces gold resource at the Twin Hills gold deposits.

Both the existing Mount Coolon deposits (Koala, Glen Eva and Eugenia) and the Twin Hills deposits (309 and Lone Sister) are considered by GBM to hold significant exploration upside.

Mount Coolon Gold Project resource

Mount Coolon is planned to be developed as a central processing hub with the proposed co-development of Twin Hills to provide high-grade satellite feed.

Notably, the Twin Hills mineral system has been interpreted as an intrusion-related, low sulphidation, epithermal system containing high gold fineness deposits.

Both 309 and Lone Sister remain open at depth with the current resource limited by drilling to about 300 metres below surface.

It is worth noting that the 2017 Mount Coolon Scoping Study has already demonstrated the potential to generate strong positive cash flow from existing deposits (Koala, Glen Eva and Eugenia) prior to inclusion of Twin Hills.

Mt Coolon Gold Project tenement group location plan

The Twin Hills tenements are not owned by GBM and are subject to a binding sale and purchase agreement which was signed with Minjar Gold Pty Ltd in September 2018 to acquire a 100% interest in the Twin Hills Gold Deposits.

Certain conditions precedent have to be satisfied by GBM by February 28, 2019.

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Fri, 18 Jan 2019 15:17:00 +1100
King River Resources advancing new vanadium-titanium-iron development plan for Speewah https://www.proactiveinvestors.com.au/companies/news/212837/king-river-resources-advancing-new-vanadium-titanium-iron-development-plan-for-speewah-212837.html https://www.proactiveinvestors.com.au/companies/news/212837/king-river-resources-advancing-new-vanadium-titanium-iron-development-plan-for-speewah-212837.html King River Resources Ltd’s (ASX:KRR) metallurgical results continue to support advancing a new vanadium-titanium-iron development plan for its Speewah Vanadium Project in the East Kimberley of Western Australia.

The company has been conducting sulphuric acid (H2SO4) bottle roll and diagnostic vat leach tests on magnetite-ilmenite concentrate and coarse magnetite gabbro lumps from the high-grade zone of the Central Vanadium deposit.

This test work was designed to assess whether the Speewah magnetite gabbro is best suited for vat or heap leaching prior to completing laboratory diagnostic vat and column leach tests.

READ: King River Copper reveals improved process route for vanadium recovery at Speewah

Notably, bottle roll sulphuric acid leaches on run of mine (ROM) magnetite gabbro lumps that have been crushed to sizes of 10mm, 5.6mm and 3.35mm report 77%, 84% and 84% vanadium extractions (dissolved) respectively.

Observations and conclusions that can be drawn from the bottle roll test results include the following:

• Vanadium, titanium, iron, magnesium and aluminium leach efficiencies (extractions) are very good and support advancing the test work on lump material; and

• The vanadium and titanium extractions increase as the lump or grain size decreases for the same time interval.

Vat leach test work

King River’s diagnostic heated vat leach test work on 3.35mm and 5.6mm lump samples will allow the critical process parameters to be adjusted and recorded.

The initial diagnostic vat results show:

• Up to 92% vanadium and 61% titanium leach extraction after 10 days (240 hours); and
• Higher leach temperature and maintaining acid at 150-200mg/L have significantly increased the leaching rate of all metals.

Analysis

King River’s board is encouraged by the bottle roll and vat leach test results to date and will now fast-track the vat and column leach test work.

This will enable the vat leach plant design and costings to be finalised as soon as possible.

A trade-off analysis into the optimum particle size will also be undertaken.

There may prove to be some potential to use a coarse 2mm concentrate for the vat leach operation as it would significantly reduce the amount of material leached and possibly shorten leaching times.

A 2mm concentrate beneficiation plant would also be a simpler design to the facility used in the recently released vanadium scoping study that generated a 106 micron (~1/10th of a mm) concentrate.

READ: King River assays new high-grade gold zone at Mt Remarkable

Alternatively, if lump ROM material was chosen in the coming months to be the most economical option to be used in the PFS (pre-feasibility study), then there will be no fine grinding or magnetic separation circuit required.

During 2019, KRC aims to present shareholders with the most prudent commercial strategy to develop the Speewah vanadium deposits and advance towards the production of vanadium, titanium and iron products at the lowest possible unit cost.

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Fri, 18 Jan 2019 13:21:00 +1100
Renegade Exploration drill results reveals high-grade thick gold intersections https://www.proactiveinvestors.com.au/companies/news/212836/renegade-exploration-drill-results-reveals-high-grade-thick-gold-intersections-212836.html https://www.proactiveinvestors.com.au/companies/news/212836/renegade-exploration-drill-results-reveals-high-grade-thick-gold-intersections-212836.html Renegade Exploration Ltd (ASX:RNX) has received all of the results for its aircore drilling program completed at its Yandal East Gold Project in Western Australia.

The 62-hole, 7,189-metre drilling program identified both high-grade and thick mineralisation at multiple targets across the project.

Highlights include 23 metres at 1.38 g/t gold from 84 metres and 20 metres at 1.02 g/t gold from 88 metres.

The prospects that were tested include Ward, Mizina South, Millrose Extension, and Strip Well.

READ: Renegade Exploration begins follow-up drilling at three high-priority gold targets

This drilling was following up the August 2018 inaugural aircore program at Yandal East for 23,789 metres, testing five of its original nine high priority targets.

These latest results show high-grade mineralisation at Mizina South with grades of up to 5.74 g/t gold and thick mineralisation at Ward including 23 and 20 metre intervals.

Ward and Mizina South produce best results

19 holes were drilled at the Ward Prospect and 15 holes at the Mizina South Prospect, following up the inaugural drilling.

Highlights from Ward included  23 metres at 1.38 g/t gold from 84 metres and 20 metres at 1.02 g/t gold from 88 metres.

These results confirm the prospectively of the previously undrilled section of the corridor.

The highlight from Mizina South was the gold grades encountered.

The November program delineated high-grade gold mineralisation over 400 metres with values of 5.74 g/t and 4.11 g/t gold.

Renegade noted that it was excited about the developing potential of the Mizina South and the greater Mizina area and looks forward to completing further work in 2019.

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Fri, 18 Jan 2019 12:43:00 +1100
Bulls, Bears & Brokers: Tony Locantro on the merits of using full service brokers https://www.proactiveinvestors.com.au/companies/stocktube/11872/bulls-bears--brokers-tony-locantro-on-the-merits-of-using-full-service-brokers-11872.html https://www.proactiveinvestors.com.au/companies/stocktube/11872/bulls-bears--brokers-tony-locantro-on-the-merits-of-using-full-service-brokers-11872.html Tony Locantro, stock market pundit and investment manager at Alto Capital, explains to Proactive Investors the merits of using a broker, and breaks down the virtues of using full service versus discounted providers of brokerage services.

For all of Tony's Tips and insights, watch our full video interview.

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Fri, 18 Jan 2019 12:00:00 +1100
Bellevue Gold is Top Explorer Pick Winner for 2019 by Macquarie Research https://www.proactiveinvestors.com.au/companies/news/212834/bellevue-gold-is-top-explorer-pick-winner-for-2019-by-macquarie-research-212834.html https://www.proactiveinvestors.com.au/companies/news/212834/bellevue-gold-is-top-explorer-pick-winner-for-2019-by-macquarie-research-212834.html Bellevue Gold Ltd (ASX:BGL) has been picked as the only high conviction Top Explorer Pick Winner for 2019 by Macquarie Research.

The company accomplished this after having successfully delineated a high-grade inferred resource of 1 million ounces of gold at 12.4 g/t gold last year at its Bellevue Gold Project in Western Australia.

READ: Bellevue Gold boosts gold resource over 1 million ounces with high-grade Viago Lode

Cardinal Resources Ltd (ASX:CDV) and Gold Road Resources Ltd (ASX:GOR) also feature amongst the eight high conviction Top Developer Pick Winners for 2019.

The following is an extract from Macquarie Research’s Global Gold Developers & Explorers: Picking the Winners – 2019:

BGL recommenced exploration at Bellevue in late-2017 and quickly discovered the Tribune and Southern Belle lodes followed up by the recent high-grade Viago lode (22.0 g/t).

The most recent resource estimate doubled the resource to 1.04 million ounces of gold at 12.3 g/t including a maiden estimate for Viago of 0.8 million tonnes at 22 g/t for 550,000 ounces.

Macquarie's global team of gold analysts have 18 Australian and Canadian developers and explorers across its coverage list, all of which are rated outperform.

BGL is well funded to drill (we estimate ~A$15 million at CY18 end) and we expect regular resource updates, and potential new discoveries to be key catalysts for the stock over 2019.

Given its high-grade and close proximity to the sealed highway, we believe Bellevue could displace lower grade ore into almost any regional processing plant.

Outlook and catalysts

We expect BGL to deliver a resource upgrade in early 2019 given the strong drilling results post the previous resource cut off.

We also anticipate consistent news flow from exploration activities particularly as BGL tries to define the extents of the high-grade Viago system.

BGL has only recently been defining extensions to the previously mined Bellevue system, and we believe this could also add further to resources over 2019.

We believe BGL to have strong acquisition potential given the projects high-grade and proximity to a sealed highway.

Gold Road (Outperform, Target Price: $0.80, Ben Crowley)

Investment Thesis: Developer with substantial Greenfields exploration exposure.

Construction of the Gruyere Gold Project (50% GOR) is now >85% complete with first gold set for early 2QCY19.

We expect GOR to receive a positive re-rate over 2019 as the company moves from a developer to a gold producer.

Exploration continues to provide upside potential to GOR with the company set to spend A$17-20 million on its systematic exploration program over the largest tenement package in the Yamarna Greenstone Belt.

Cardinal Resources (Outperform, Target Price: $0.80, Michael Gray)

Investment Thesis: Cardinal with a potential Tier 1 PFS-stage asset in Ghana.

Cardinal’s 7 million ounces gold Namdini open pit project in Ghana has a 270,000-ounce gold production profile as underpinned by its Sep/18 PFS study.

Goldfield’s, with two gold mines in Ghana, holds an 11% equity position that was purchased in the market and provides a strong validation for Namdini in our view.

We expect CDV to increasingly gain market attention and re-rate throughout 2019 as highlighted in our initiation – it controls one of the few potential Tier 1 assets globally.

Global Development Projects >250,000 ounces of gold per annum LOM production profile – owned by single asset developers

This assertion is supported by the exploration land position that has high potential to yield new satellite discoveries that could feed a central mill and for new standalone discoveries in the highly prospective Birimian Greenstone geology in Northern Ghana.

We expect exploration results, a DFS and a construction decision to be the key catalysts in 2019 and believe CDV is a prime target amongst the senior and intermediate producers.

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Fri, 18 Jan 2019 11:48:00 +1100
Black Rock Mining receives valuation range of 16-40 cents in 68-page report https://www.proactiveinvestors.com.au/companies/news/212833/black-rock-mining-receives-valuation-range-of-16-40-cents-in-68-page-report-212833.html https://www.proactiveinvestors.com.au/companies/news/212833/black-rock-mining-receives-valuation-range-of-16-40-cents-in-68-page-report-212833.html Black Rock Mining Ltd (ASX:BKT) has been labelled undervalued in a 68-page special research report by Simon Francis of Orior Capital.

The company is developing the Mahenge Graphite Project in south-eastern Tanzania.

Black Rock published a definitive feasibility study (DFS) in October 2018, which followed the pre-feasibility study (PFS) completed in April 2017.

The following is an extract from the report:

 

Unjustifiably cheap. The project has a post-tax, unlevered NPV10 of US$895m, and an IRR of ~43%, both net of the Tanzanian government’s 16% stake. The NPV is ~7x the initial capex requirement of US$115m. Despite these strong metrics, Black Rock’s market capitalisation is less than 2% of NPV. Assuming total initial capital required of US$140m, 80:20 debt-to-equity funding, equity being issued at A$0.10 to A$0.15 per share, and a fair EV valuation, 12 months from now, of 30-50% of NPV, then Black Rock’s EV could be US$269m to US$448m. This equates to a valuation of A$0.16-0.40 per share, ~4-11x the current share price.

Opportunity knocks: In a sample of eight ASX-listed African graphite developers, there is only a US$16m difference in market capitalisation between the largest and smallest. The market is not differentiating between projects, meaning it has so far failed to take advantage of the opportunity in Black Rock.

Compelling project, with substantial cash flows: The DFS envisages a three-phase project ultimately producing 240,000 tpa high-grade graphite. When completed, Black Rock is likely to be the 2nd largest miner of natural flake graphite in the world ex-China. Based on DFS figures of a US$1,301/t basket selling price, and US$401/t C1 costs, annual EBITDA will be around US$216m, equating to an EBITDA margin of 69%. The project is expected to generate US$313m in EBITDA over the first three years. This strong cash generation is expected to support a high-level of debt financing, limiting the dilution to existing shareholders.

Risk mitigation a key part of the DFS: The DFS was compiled after more than 25,000 man-hours of work. It incorporates the results from a large-scale pilot plant, improvements in the plant design over 15 iterations, a decision to use dry-stacking, development of an ultra-high-grade graphite product, logistics tests on the Tanzania Zambia Railway Authority (TAZARA) railway, customer testing of Mahenge graphite products, and operational readiness work designed to provide a smooth ramp-up, and to address concentrate transportation. Management’s approach has been to reduce as many risks as possible.

Significant advantages, both geological…: Mahenge hosts the 2nd largest graphite reserve, and the 4thth largest JORC-compliant graphite resource globally. The resource is biased towards larger flake sizes. Strip ratios are low. Impurities are at a minimum. Black Rock has demonstrated the ability to produce amongst the highest quality products globally, without chemical interference. This means lower capital and operating costs, less environmental impact, and a differentiated high-value product. The use of dry-stacking means there is no need for wet tailings dams, and the risks they impose. There is no need to dispose of used hydrofluoric acid, which can be difficult.

…And geographical. Access to key infrastructure is excellent, and provides the Mahenge project with a long-term sustainable cost advantage. This includes the TAZARA railway line, which feeds directly into the port of Dar es Salaam. The port is an internationally vital trade link serving seven countries. It handles 95% of Tanzania’s trade cargoes. There is frequent shipping to key markets in Asia. The Tanzania Electric Supply Co Ltd (TANESCO) will provide grid power. Excellent logistics ensures there is no need for unsafe several hundredkilometre truck journeys, no uncertainty as to available port capacity, no barging and reloading, and no need for expensive diesel generators on site.

Phases 1 and 2 are already sold out: Critically, Black Rock spent the past year demonstrating a path to market. A large-scale pilot plant, an order of magnitude larger than the next, enabled delivery of certified samples to customers and laboratories. Feedback has been hugely positive. Three offtake agreements have been signed for a combined 205,000 tpa (in the third year), representing 85% of planned production, and an astonishing ~23% of 2017 global natural graphite demand. Notably, two of the agreements – those with Heilongjiang Bohao and Taihe Soar – are believed to be the two largest offtake agreements signed by any graphite company, either in production or development. The agreements cover a variety of end-use applications including expandable graphite, and energy storage. The agreements will enable Black Rock to establish branding in the energy storage market. The agreements are a testament to Black Rock’s notion that Mahenge graphite has unique properties that make it highly desirable to end-users.

Graphite demand growth accelerating: The births of the electric vehicle and energy storage systems markets have transformed the graphite market from a mature one, to one with rapid growth prospects. Both these industries are embryonic in nature, and growing at a terrific pace. There is also huge pent-up demand for expandable graphite for use in the foil and fire retardant segments. Demand for fire retardants is being driven by technological developments and more stringent safety standards in automotive, aerospace, and in building and construction after a number of large fires. Demand for natural flake graphite (excluding amorphous graphite) is expected to more than double over the next decade from ~630,000 tpa in 2017 to ~1.4m tpa in 2027. Even before accounting for any further curtailment in Chinese supply, the world could need the equivalent of three “Mahenges” to meet demand over the next decade.

Chinese supply is under pressure: Supplies of large flake graphite from China are dwindling as resources are depleted. Combined with strong growth in the expandable market, China is now short of large flake graphite, and has started importing +50 mesh material from East Africa. Environmental controls, mainly aimed at restricting the use of acids in graphite beneficiation, are being more strictly enforced. Over time, purer graphite sources are likely to attract premium prices.

Outlook for prices is excellent: The combination of new industries experiencing peak demand growth, and challenged supply out of China, the world’s largest producer, suggest a strong outlook for graphite prices. Experience from the iron ore and coal markets in the mid-2000s, suggests that increasing Chinese imports (or decreasing exports), may have a significantly positive impact on market prices. As a result, there is an immediate opportunity in large flake graphite, with new suppliers of high-quality materials able to sell into a rapid growth market that is seeing shortages.

Not all graphite is created equal; market segmentation is key: The market can be broadly divided into three categories;

Large flake: The market for 80 mesh and larger has massive pent-up demand, and is supply constrained. Changes in building regulations and challenged Chinese supply suggest an increasingly tight market with strong price outcomes. There is a step change in pricing above 98% purity and 80 mesh.

Battery grade: Typically, 150 to 80 mesh. The market has been demand constrained, though forecasts of exponential growth in the electric vehicle space suggest this will change quickly. High-grades, and spheronizing performance are differentiating factors. ‘Dirty’ concentrates containing impurities such as vanadium and others, will attract lower prices, and are at risk of stricter environmental controls in China. Selling directly to larger battery makers, where qualification can take years, is difficult. Establishing channels is critical.

Refractory grade: Generally, smaller flakes and lower grades, used in steel making and other metallurgy. Lower prices, and essentially the market of last resort for a graphite company. (Some high-end applications require premium product). Black Rock has unearthed significant demand for large flake, high-purity graphite. The company has also established channels for the battery sector through offtakes with Heilongjiang Bohao (which supplies the German automotive industry), and Qingdao Fujin Graphite (anodes for consumer electronics). Black Rock’s initial battery tests were conducted at a US-based, ISO-compliant laboratory. Battery cells produced from surface coated, spheronized natural flake from Ulanzi, exceeded 300 cycles, with a 94% recharge rate. The cells also had flatter performance curves than an existing commercial battery, indicating potential for longer battery life. This is a significant result that bodes well for future development. Few new projects are of global scale. The combination of strong demand, and challenged Chinese supply, has motivated a plethora of new projects in East Africa. Most of these are relatively small scale. The obvious hurdle many will face is completing a detailed DFS study that will be necessary to secure funding. Black Rock has set the bar in this regard. Further, many projects seem focused on the electric vehicle revolution. Though exciting, the market is currently small, and qualification periods, as for anything in the automotive sector, are long. Companies focusing on this space will need to find other markets to sustain themselves through this qualification period. It seems likely that over the next few years, supply from East Africa will become dominated by two large producers in Syrah Resources (SYR.AX), and Black Rock, with a number of smaller players serving niche markets.

Tanzania: Tanzania’s reset of its legislative code in 2017/18 negatively impacted risk perceptions, and the capacity to raise debt finance from traditional sources, and hit share prices. Yet over the past year, Tanzania has made great strides. Companies report that engagement with the government has been positive, and that projects that contribute positively to Tanzania’s development are being approved. Black Rock expects its mining licenses to be approved in early-2019. The country has a fast-growing economy, benefits from a young and educated workforce, and there is rapid investment in infrastructure. The government’s vision is for Tanzania to be semi-industrialised (manufacturing represents 40% of GDP) by 2025. In summary, the Mahenge graphite project has been thoroughly conceived. It boasts significant and sustainable natural advantages, it stands to benefit Tanzania directly through shared ownership, upgraded infrastructure, and increased employment, and it looks like coming on stream into a period of peak demand growth. Consequently, it also seems likely to reward shareholders.

 

As part of its financing strategy and post the DFS, Orior Capital was commissioned by Black Rock Mining to undertake a review of the business and graphite sector.

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Fri, 18 Jan 2019 10:56:00 +1100
Accelerate Your Wealth: Dale Gillham outlines new industries of opportunity https://www.proactiveinvestors.com.au/companies/stocktube/11871/accelerate-your-wealth-dale-gillham-outlines-new-industries-of-opportunity-11871.html https://www.proactiveinvestors.com.au/companies/stocktube/11871/accelerate-your-wealth-dale-gillham-outlines-new-industries-of-opportunity-11871.html Dale Gillham - chief analyst of Wealth Within, respected Australian analyst, and international bestselling author of ‘How to Beat the Managed Funds by 20%,’ with new book ‘Accelerate your Wealth: It’s Your Money, Your Choice!’ – tells Proactive the emerging areas of opportunity, which investors should educate themselves on.

For simple yet powerful strategies that enable you to profitably trade the market, watch our full video interview.

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Fri, 18 Jan 2019 10:30:00 +1100
LiveHire major shareholder increases stake following contract wins https://www.proactiveinvestors.com.au/companies/news/212831/livehire-major-shareholder-increases-stake-following-contract-wins-212831.html https://www.proactiveinvestors.com.au/companies/news/212831/livehire-major-shareholder-increases-stake-following-contract-wins-212831.html LiveHire Ltd (ASX:LVH) has had major shareholder FIL Investment Management increase their stake to 8.38% from 7.18% in the company.

The fund manager increased its stake by purchasing 3.67 million shares through on-market trades in July, August 2018 and January 2019.

Notably, LiveHire revealed new enterprise agreements in December 2018 with DuluxGroup and Korn Ferry.

READ: LiveHire secures fourth enterprise agreement with Korn Ferry to supply recruitment platform

LiveHire’s platform makes managing the flow of talent into and through businesses seamless, underpinned by a single unified candidate profile and visibility of existing employees.

During the December quarter, annualised recurring revenue (ARR) grew $403,000 (25%) to $2.05 million, as a result of eight new clients.

LiveHire had contract wins across several key industries, some of these clients included:

● An industrial/natural/financial group of businesses via Korn Ferry (RPO Channel);
● A diversified real estate group via Korn Ferry (RPO Channel);
Vodafone Hutchison Australia (Mobile telecommunications, Direct Channel); and
● DuluxGroup (home improvement product manufacturer and marketer, Direct Channel).

Best quarter yet

LiveHire’s CEO Christy Forest said: "The December quarter, which is a shorter and typically tougher quarter, was LiveHire’s best quarter yet with the company extremely well placed for continued growth in 2019.

“Our partnership with Korn Ferry has continued to drive strong growth with several significant new contracts secured from the developing pipeline.

“It is also encouraging to see the higher value clients we secured during the December quarter has generated growth in our annualised recurring revenue per client.

“We continue to activate more growth channels beyond RPO and Direct and we look forward to bringing these online soon.”

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Fri, 18 Jan 2019 08:55:00 +1100
Aeris Resources is a copper producer with multiple growth opportunities https://www.proactiveinvestors.com.au/companies/news/192730/aeris-resources-is-a-copper-producer-with-multiple-growth-opportunities-192730.html https://www.proactiveinvestors.com.au/companies/news/192730/aeris-resources-is-a-copper-producer-with-multiple-growth-opportunities-192730.html Aeris Resources Ltd (ASX:AIS) is an emerging copper producer through its Tritton Copper Operations in central-west New South Wales.

The company also has a number of brownfields and greenfields exploration projects that present significant growth opportunities for the company and its shareholders.

Following a capital and debt restructure in 2018, Aeris is in a position to explore these growth opportunities.

One such opportunity with very high exploration upside potential is its 70% owned Torrens Exploration Project in South Australia.

The experienced board and management team aims to progress Aeris into a mid-sized, multi-mine company.

A proven copper producer

Aeris is an established copper producer and developer with multiple mines and a 1.8 million tonnes per annum copper processing plant at its Tritton Copper Operations in New South Wales.

The 100% owned operation is targeting production of 24,500 tonnes of copper at a C1 cash cost of $2.75-$2.90 per pound in FY2019.

In the recent December quarter, production was above plan at 6,515 tonnes with a C1 cash cost of $2.96 per pound, mainly from the Tritton underground mine.

The Tritton operations consist of a second underground mine being Murrawombie, which was commissioned during FY2017.

Mineralisation at Murrawombie is open at depth presenting good potential to extend the mine’s life.

Drilling confirms potential of Tritton's Kurrajong prospect

Exploration drilling continues to intersect high-grade copper results at the Kurrajong prospect near the Tritton Copper Operations.

READ: Aeris Resources intersects copper of up to 6.51% at target near Tritton mine

In January 2019, assays from a further five drill holes and three wedge holes revealed more high-grade copper, along with gold and silver, intersected.

The high-grade copper mineralisation at Kurrajong has been traced more than 1,100 metres down plunge.

 

Focusing on two key exploration projects

Aeris is focusing its exploration on two key areas, the Tritton tenement package and the Torrens Project in South Australia.

The Tritton tenement package consists of six exploration licences covering ~1,800 square kilometres of prospective ground for base metal deposits.

It hosts a proven mineral rich corridor with 750,000 tonnes of copper discovered within the Tritton tenement package.

The 70% owned Torrens Project is prospective for iron-oxide copper gold deposits and is in the Gawler Craton region which hosts the world class mines.

Torrens Project has signatures of world-class Olympic Dam

Aeris owns 70% of the Torrens Project with joint venture partner Argonaut Resources NL (ASX:ARE).

The world class provinces hosts three renowned mines in BHP’s (ASX:BHP) Olympic Dam, Oz Minerals’ (ASX:OZL) Prominent Hill and Carrapateena.

Torrens is a coincident magnetic and gravity anomaly with a footprint considerably larger than that of Olympic Dam.

Previous drilling confirmed the existence of a major iron oxide copper-gold (IOCG) mineralising system beneath several hundred metres of sedimentary cover.

In the event of a discovery, Torrens has the scale to host a world-class copper-gold deposit.

READ: Aeris Resources prepares to drill within the week at Torrens

After achieving many permitting milestones in 2018, as at January 2019, Aeris is preparing to commence drilling at Torrens.

The heliportable drill rig and supplementary equipment, including work platforms, has arrived at site.

Furthermore, an exploration camp to accommodate the workforce for the phase I drilling program arrived on-site early in the New Year and is now fully operational.

Stage I drilling program is estimated to consist of 8-10 drill holes targeting depths of 700-1,500 metres.

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Fri, 18 Jan 2019 07:59:00 +1100
Fiji Kava applauds government decision to ease kava import regulations https://www.proactiveinvestors.com.au/companies/news/212847/fiji-kava-applauds-government-decision-to-ease-kava-import-regulations-212847.html https://www.proactiveinvestors.com.au/companies/news/212847/fiji-kava-applauds-government-decision-to-ease-kava-import-regulations-212847.html Fiji Kava Ltd (ASX:FIJ) has had its efforts to make kava a new alternative to prescription medication validated by an Australian government easing kava importation regulations.

A significant breakthrough for the kava industry, the announcement represents a growing acceptance of Kava as a natural and safe alternative for managing stress and anxiety.

This move aligns with Fiji Kava’s efforts to make Kava a new alternative prescription medication, such as Valium and Xanax, currently representing a US$15 billion global benzodiazepine market.

Aligns with effort to make Kava alternative prescription

On a recent trip to Vanuatu last week Australian Prime Minister Scott Morrison announced the government will be working towards putting a pilot program in place “to ease some of the limitations on importation of kava into Australia.”

Morrison said: “Kava is an important product which is produced here and has a great and successful market around the world.”

“Step in the right direction”

Fiji Kava managing director Zane Yoshida said: “We are encouraged by the announcement made by Australian Prime Minister Scott Morrison.

“This is certainly a step in the right direction and Fiji Kava looks forward to the development of the pilot program.”

Cultural practice

Kava is a depressant drug that is traditionally consumed by Pacific Islanders in drink form for ceremonies and cultural practices.

According to the Australian Alcohol and Drug Foundation, many Pacific Islanders who have settled in Australia have continued drinking kava or using kava extracts.

Kava extracts are used in some herbal preparations and sold as over-the-counter tablets to treat insomnia, stress and anxiety.

- Jessica Cummins

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Fri, 18 Jan 2019 01:36:00 +1100
Stavely Minerals resumes drilling after receiving wide copper intersections https://www.proactiveinvestors.com.au/companies/news/212846/stavely-minerals-resumes-drilling-after-receiving-wide-copper-intersections-212846.html https://www.proactiveinvestors.com.au/companies/news/212846/stavely-minerals-resumes-drilling-after-receiving-wide-copper-intersections-212846.html Stavely Minerals Ltd (ASX:SVY) has resumed drilling at Thursday’s Gossan deposit of its Stavely Copper-Gold Project in Victoria after receiving encouraging copper results.

The drilling aims to progress into the hotter part of the mineralised system, where higher-grade copper and significantly higher-grade gold are expected to be located.

Staveley is drilling at the Thursday’s Gossan deposit as well as at the Mount Staveley prospect to the south.

Wide intersections

Best results from the former are:

  • 39 metres at 0.31% copper from 363 metres, including 5 metres at 1.10% copper and 0.15 g/t gold; and

  • 13 metres at 0.45% copper from 552 metres, including 2 metres at 1.73% copper and 0.20 g/t gold.

Strong copper-gold mineralisation

Drilling at Thursday’s Gossan has been designed to follow-up on previous porphyry magnetite vein intercepts below a low-angle structure.

It is also designed to test magnetic features, which may reflect the presence of magnetite veins or disseminated magnetite associated with copper-gold mineralisation.

Drilling resumes

The diamond drilling at Thursday’s Gossan has resumed after the Christmas break.

Two holes are targeting the untested southerly plunge of a quartz diorite porphyry that hosts porphyry magnetite veins.

These veins are considered to be an early intrusive phase associated with porphyry copper-gold mineralisation.

- Jessica Cummins

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Fri, 18 Jan 2019 01:28:00 +1100
Renegade Exploration leverages high-grade gold results to develop Yandal project https://www.proactiveinvestors.com.au/companies/news/212844/renegade-exploration-leverages-high-grade-gold-results-to-develop-yandal-project-212844.html https://www.proactiveinvestors.com.au/companies/news/212844/renegade-exploration-leverages-high-grade-gold-results-to-develop-yandal-project-212844.html Renegade Exploration Ltd (ASX:RNX) is a Perth-based mineral exploration company focused on developing its flagship Yandal East Gold Project in Western Australia.

The company aims to become a mid-tier resource company through the discovery, acquisition and development of economic mineral deposits.

 

Renegade also owns 90% of the Yukon Base Metal project in the highly-prospective Selwyn Basin in Canada’s Yukon Territory.

The Yukon project hosts a JORC-compliant resource of 12.6 million tonnes at 6% zinc equivalent.

Strategies to achieve the best outcome at Yukon are currently being assessed and the company has engaged interested parties in that regard.

READ: Renegade Exploration drill results reveals high-grade thick gold intersections

Renegade received the final results from its completed aircore drilling program at the Yandal project last week, having drilled 62 holes for 7,189 metres.

The program identified both high-grade and thick mineralisation at multiple targets across the project.

Highlights include 23 metres at 1.38 g/t gold from 84 metres and 20 metres at 1.02 g/t from 88 metres.

The prospects that were tested include Ward, Mizini South, Millrose Extension and Strip Well.

READ: Renegade Exploration begins follow-up drilling at three high-priority targets

Yandal’s drilling followed up on the August inaugural aircore program which drilled 23,789 metres, testing five of the original nine high-priority targets.

The latest results show high-grade mineralisation at Mizina South with grades up to 5.74 g/t and thick mineralisation at Ward including 23 and 20-metre intervals.

Renegate noted it was excited about the developing potential of the Mizina South and greater Mizina area and looks forward to completing further work in 2019.

 

READ: Renegade Exploration encouraged by aircore drilling success at Yandal East Gold Project

Yandal East is within the well-endowed gold region known as the Yandal Greenstone Belt, 70 kilometres northeast of Wiluna.

The region has historically produced in excess of 10 million ounces of gold and Renegade’s permits are adjacent to and along strike in both directions from the Millrose deposit containing 309,000 ounces at 2.4 g/t.

Base metal exposure

The Yukon Base Metal Project in Canada was discovered by a prospector in 1996 and Renegade secured an option in January 2007 to earn a 90% interest in the project which it exercised in Juky 2007.

Thick high-grade mineralisation was intersected by Noranda Inc in a drilling program conducted in 2001, followed by a second program the next year.

The original project comprised 493 mineral claims covering 95 square kilometres over and around the Andrew zinc deposit.

Renegade has since expanded its land position and Yukon now comprises 1,554 mineral claims covering about 305 square kilometres.

Since 2007 the company has completed 350 diamond holes for more than 40,000 metres, discovered three separate zinc deposits and defined a JORC-compliant resource of 12.6 million tonnes at 5.3% zinc and 0.9% lead.

READ: Renegade Exploration reveals positive maiden gold drilling results from Coralie Jean

Chairman Robert Kirtlan and non-executive director Mark Wallace are major shareholders in the company, holding 7 million and 48.1 million ordinary shares each, respectively.

This amounts to a 6.7% interest for Kirtland and 0.98% interest for Wallace.

They each also hold 15 million options over ordinary shares.

Renegade has 712,626,638 shares on issue, capitalising it around $2.14 million.

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Fri, 18 Jan 2019 00:45:00 +1100
Moho Resources identifies high nickel sulphide potential at Silver Swan North in WA https://www.proactiveinvestors.com.au/companies/news/212843/moho-resources-identifies-high-nickel-sulphide-potential-at-silver-swan-north-in-wa-212843.html https://www.proactiveinvestors.com.au/companies/news/212843/moho-resources-identifies-high-nickel-sulphide-potential-at-silver-swan-north-in-wa-212843.html Moho Resources Ltd (ASX:MOH) has identified high nickel sulphide potential after receiving results from exploration at the Silver Swan North project in Western Australia.

The potential has been revealed by surveys, mapping. a reassessment of soil geochemistry and studying results from an historical drill hole.

Historical hole

This hole intersected 5 metres of sediment from 255 metres containing 10-40% sulphides, or up to 0.1% nickel before ending in ultramafic rocks.

A downhole EM survey at the time detected a large, late time off-hole response towards the bottom and south of the drill-hole but this was not followed up.

Survey identifies conductors

Moho’s high sensitivity low temperature SQUID EM survey has identified three new conductors near this hole, which represent drill targets.

Reassessment of soil geochemistry by Moho’s consultant Richard Carver has also highlighted several areas of nickel anomalism.

A detailed ground gravity survey completed last quarters has highlighted an untested gravity high associated with the untested historical EM anomaly.

Noisy nickel neighbours

These results have proved encouraging for the company as ultramafic rocks within the Black Swan Komatiite Complex (BSKC) host a number nickel sulphide mines.

These include the Silver Swan, Black Swan and Cygnet nickel sulphide deposits as well as Poseidon Nickel Ltd’s Black Swan nickel processing and concentrator facility.

Drilling is planned

Moho plans to drill up to five reverse circulation holes to test the new EM conductors in late February, subject to approval from the Department of Mines Industry and Safety.

The SQUID EM survey has been extended over anomalous Target Zone 4 and to the boundary with Poseidon’s mining lease with a further extension planned over other areas.

Moho will also undertake a major geochemical and straitigraphic aircore drill program across the northern area to identify suitable host rocks for nickel sulphide mineralisation under cover.

- Jessica Cummins

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Fri, 18 Jan 2019 00:35:00 +1100
Cougar Metals’ drone survey defines three new targets at Chilean cobalt project https://www.proactiveinvestors.com.au/companies/news/212840/cougar-metals-drone-survey-defines-three-new-targets-at-chilean-cobalt-project-212840.html https://www.proactiveinvestors.com.au/companies/news/212840/cougar-metals-drone-survey-defines-three-new-targets-at-chilean-cobalt-project-212840.html Cougar Metals NL (ASX:CGM) has used drone surveying technology to define three new target areas at the Plateado Cobalt Project in Chile.

The survey involved placing geophysical profiles in an east-west direction over the same area mapped for its geology earlier last year and spaced 100-metres apart.

Three lithologies identified and five target areas

Results of the interpretation data highlighted three targets, with the most notable corresponding to a big structural complex north of the El Boldo artisanal mine on the property.

The second target is located up dip and only 150 metres from artisanal workings.

Further to production of the maps using Theta techniques, geophysical contractor Maping Ltda identified three clearly differentiated lithologies, a big structural complex and five target areas to focus follow-up exploration.

Follow-on activities

Reinterpretation of the data by an Australian contractor will provide further understanding of the project and enable the planning follow-on exploration.

On February 7, 2018, the company announced a farm-in agreement over the Plateado project with Antasitua Chile SPA, where Cougar could earn 100% by meeting various exploration expenditures and payments.

READ: Cougar Metal releases 10.54 million tonne nickel-cobalt-laterite resource

In September last year the company added to its value during intraday trading after releasing a resource statement for its Pyke Hill Nickel-Cobalt-Laterite Project in WA.

The resource included a high-grade cobalt resource of 5 million tonnes grading 0.94% nickel and 0.14% cobalt.

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Thu, 17 Jan 2019 22:22:00 +1100
African Gold closes oversubscribed IPO, drilling scheduled for February https://www.proactiveinvestors.com.au/companies/news/212839/african-gold-closes-oversubscribed-ipo-drilling-scheduled-for-february-212839.html https://www.proactiveinvestors.com.au/companies/news/212839/african-gold-closes-oversubscribed-ipo-drilling-scheduled-for-february-212839.html African Gold Limited (ASX:A1G) closed its oversubscribed $4.5-million initial public offering (IPO) this week, with the placement issuing shares at 20 cents each.

The company plans to explore for gold in Cote d’Ivoire and has the rights for two granted exploration permits and two exploration permit application areas.

Expert board

African mining expertise features strongly on African Gold’s board, with mining personality Tolga Kumova, as well as Steve Parsons and Evan Cranston, comprising the company’s directorship.

All three have substantial experience with African mining operations and currently hold 22.7% of the new company, which will dilute to 10% each once listed.

Unexplored gold project

Focus will be on the unexplored Agboville project which is 150 kilometres from Abidjan and near prospective ground held by Barrick (NYSE:GOLD) and Newcrest Mining (ASX:NCM).

Previous owner Golden Star Resources (TSE:GSC) had identified drill-ready targets in its exploration work, delineating a 20-kilometre anomaly with soil grades up to 4 g/t gold.

Substantial operational experience

Both Kumova and Cranston have been involved in the recent restart of zinc production at the Century mine in Queensland under New Century Resources Ltd (ASX:NCZ).

Kumova is the former managing director and founding shareholder of Syrah Resources Ltd (ASX:SYR) which recently began commercial production at its Balama Graphite Project in Mozambique.

Parsons was the managing director of Gryphon Minerals Limited (ASX:GRY), which was taken over by Teranga Gold Corporation (ASX:TGZ), and is currently the managing director of Bellevue Gold Ltd (ASX:BGL).

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Thu, 17 Jan 2019 22:11:00 +1100
MGM Wireless on countdown to SPACETALK smart-watch UK launch https://www.proactiveinvestors.com.au/companies/news/212838/mgm-wireless-on-countdown-to-spacetalk-smart-watch-uk-launch-212838.html https://www.proactiveinvestors.com.au/companies/news/212838/mgm-wireless-on-countdown-to-spacetalk-smart-watch-uk-launch-212838.html MGM Wireless Limited (ASX:MWR) will launch its SPACETALK smart-watch in the UK in April, progressing the company’s international expansion plans.

Following the successful launch of SPACETALK in New Zealand last year, the company decided to take another major step forward.

“Natural step” forward

MGM Wireless CEO Mark Fortunatow said: “The UK Launch is a natural step for SPACETALK.

“Months of planning, due diligence and research has gone into this exciting move into this major English-language market.

“With a population of more than 66 million, the UK market is approximately three times the size of our home markets of Australia and New Zealand.”

Available in the UK for spring

After its first showcase at the Mobile World conference in Barcelona last year, SPACETALK will return to the conference next month amongst the more than 100,000 executives and buyers.

Fortunatow said: “SPACETALK will be available on UK high streets in the northern spring retail season in the lead-up to school holidays.

“This is when the versatility of our all-in-one smart watch mobile phone will come into its own, just as it has this summer in Australia and New Zealand.

Australia and New Zealand sales “exceeded expectations”

“At this stage it is too early to say with absolute confidence what our sale expectations are, however, our first year Australian and New Zealand sales have exceeded expectations and we have been impressed by the enthusiasm and support expressed by UK retailers.”

Fortunatow also said: “The children’s smart-watch product is better known among UK parents than it was here.

“We feel we have an advantage in terms of quality, customer service in the aftermarket and a secure SPACETALK app, which really appeals to the UK market.

SPACETALK solutions

“UK parents face the same social issues with kids access to mobile devices and cyber bullying that we face in Australia.

“SPACETALK has the solution to keeping busy parents in touch with children without the need of a mobile smart-phone with access to all kinds of social media and the Internet.”

The company will make further announcements about UK retail partners over the coming months.

SPACETALK is available in JB HiFi and leading-edge stores in Australia and through Spark’s retail store network in New Zealand.

Online sales are available through www.spacetalkwatch.com

- Jessica Cummins

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Thu, 17 Jan 2019 21:24:00 +1100
Core Lithium prepares resource updates ahead of Finniss DFS expansion https://www.proactiveinvestors.com.au/companies/news/212835/core-lithium-prepares-resource-updates-ahead-of-finniss-dfs-expansion-212835.html https://www.proactiveinvestors.com.au/companies/news/212835/core-lithium-prepares-resource-updates-ahead-of-finniss-dfs-expansion-212835.html Core Lithium Ltd (ASX:CXO) (OTCMKTS:CORX) expects to update its mineral resource estimate for the flagship Finniss Lithium Project in the Northern Territory this quarter.

The company, which previously traded as Core Exploration Ltd, has the drill bit spinning at the wholly-owned project, boosted by a $3 million placement of 12 million shares.

READ: Core Lithium completes $3 million placement and begins drilling at Finnis

Core’s binding offtake partner Sichuan Yahua and parties associated with non-binding offtake partner Ruifu subscribed for a $1.5 million cornerstone share of the placement.

The investors are two of China’s largest lithium producers.

Core’s placement will power mineral resource drilling at recently discovered Finniss prospects at the project 80 kilometres by sealed road from Darwin.

The funds will also be used for working capital and to help the company deliver an expanded scope for its definitive feasibility study (DFS), a milestone expected in the March 2019 quarter.

Core highlighted the benefits of the project two days ago, reporting: “The Finniss Lithium Project has substantial infrastructure advantages supporting the project’s development.

“(Finniss is) close to suburban workforce, grid power, gas and within easy trucking distance by sealed road to Darwin port — Australia’s nearest port to Asia.”

The company has a reverse circulation and diamond core rig on site targeting resource definition at the Hang Gong, Lees-Booths Link and Carlton deposits.

Hang Gong drilling had continued into last month, with Lees-Booths Link and Carlton prospect drilling to follow.

The company expects to release an updated lithium resource estimate by the end of January 2019 and publish further resource upgrades and estimates in coming months.

READ: Core Lithium’s latest assays point to two new large deposits

Last month Core increased the total JORC resource of its Finniss project to 7.13 million tonnes grading 1.38% lithium oxide.

The update came as the company released a maiden resource estimate for the Carlton deposit of 790,000 tonnes at 1.3% lithium oxide.

CXO JORC table for Carlton deposit

Highlights from drilling at Carlton included 17 metres grading 1.34% lithium oxide from 125 metres and 24 metres grading 1.15% from 169 metres.

Carlton is in the same 770-hectare mining lease application area as Core’s Grants deposit and is only a few hundred metres of the company’s proposed mine and processing facility.

CXO Finniss and Grants projects map Jan 19

Core's Finnis project and its proposed Grants mine in the Northern Territory

Grants forms part of the Finniss project and Core plans to develop the 117-hectare Grants resource as an open cut lithium mine targeting a pegmatite deposit containing the lithium-bearing ore spodumene.

Regulatory approvals are being sought from the NT Government and funds sought from financiers as the company seeks to open the mine by the end of 2019.

The BP33 deposit is also part of Finniss project.

CXO Grants deposit at Finniss project Oct 18

READ: Core Lithium boosts lithium inventory with maiden Carlton resource

The state’s Environment Protection Authority is assessing an environmental impact assessment for the two-or-three-year Grants mine, 24 kilometres south of Darwin.

A public comment period closed on December 14, 2018.

READ: Core Lithium eyes higher valuation potential for Finniss Lithium Project

Core managing director Stephen Biggins reported in December 2018: “The global mineral resource for the Finniss project has increased rapidly from 1.8 million tonnes at the start of 2018 to 7.1 million tonnes at year end.

“Core’s management is of the view that the global mineral resource will grow even further in January, given the quality of the drilling results received from the recent exploration drilling at Hang Gong and Lees-Booths Link.

“These new mineral resources have the potential to add substantial upside to the economics of the Finniss Lithium Project, in addition to the lithium mineral resources already defined.”

Significant potential to expand the mineralisation has been identified during the Lees-Booths Link and Hang resource estimation process.

Highlights from the results included 6 metres at 1.49% from 146 metres at Hang Gong and 13 metres at 1.46% from 193 metres at Lees prospect.

CXO BP33 deposit drill hole plan at Finniss project Oct 18

A drill hole plan for the BP33 deposit at Finniss project

Capital position

Core increased its number of shares by 12 million shares to 693,866,657 on January 16, 2019, after issuing its $3 million of placement shares priced at 5 cents each.

The share issue was a 1.76% dilution of voting power for the company’s investors.

Core advised in its annual report there were 633,591,657 shares on issue and 2,786 shareholders on August 31, 2018.

The company’s top 20 shareholders had 24.56% of the company.

Among the investors were top shareholder Ya Hua International Investment and Development Co Ltd with a 9.44% major stake, and a number of other smaller holders, including then number two largest shareholder Mining Value Fund Pty Ltd (1.58%) and joint number three George Chien Hsun Lu and Jenny Chin Pao Lu (1.28%).

The company had $5.5 million cash on September 30 after spending $2.5 million on its operating activities.

It subsequently received $3 million in commitments from sophisticated investors in December 2018, issuing the new shares in January 2019.

— with John Miller

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Thu, 17 Jan 2019 20:45:00 +1100
Nelson Resources rapidly exploring Goldfields ground with aim to define gold resource https://www.proactiveinvestors.com.au/companies/stocktube/11888/nelson-resources-rapidly-exploring-goldfields-ground-with-aim-to-define-gold-resource-11888.html https://www.proactiveinvestors.com.au/companies/stocktube/11888/nelson-resources-rapidly-exploring-goldfields-ground-with-aim-to-define-gold-resource-11888.html Nelson Resources Ltd (ASX:NES) managing director Adam Schofield speaks to Proactive Investors about the recently-listed mineral explorer’s portfolio of gold projects in Western Australia.

“The Yarrie project is three tenements which are all historic mining operations from the early 1920s [and] there’s been little to no work done on these projects in the last two decades,” Schofield says.

He continues, “we started drilling at Yarrie in January last year and followed that up with a drill program in December.

“We’ve come up with some intersects that are very appealing, for instance 8 metres at 18 grams, of which 4 metres was at 40 grams – so some significant results that indicate we actually may be able to bring a resource up around this project.”

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Thu, 17 Jan 2019 20:14:00 +1100
Brookside Energy focused on increasing landholding and reserves amid global hydrocarbon growth https://www.proactiveinvestors.com.au/companies/stocktube/11886/brookside-energy-focused-on-increasing-landholding-and-reserves-amid-global-hydrocarbon-growth-11886.html https://www.proactiveinvestors.com.au/companies/stocktube/11886/brookside-energy-focused-on-increasing-landholding-and-reserves-amid-global-hydrocarbon-growth-11886.html Brookside Energy Ltd (ASX:BRK) managing director David Prentice speaks to Proactive Investors about the company’s oil assets in the Anadarko basin and the impact of markets on its business model.

“We’re seeing a shift in the way that we store and then discharge energy and the uptake in the electric vehicle space and improvements in battery technology have been impressive,” Prentice says.

He continues, “but I think in the medium to long-term, the hydrocarbon story is really about global growth and consumption and the outlook looks strong … from the petrochemical sector all the way through to the fuel sector.

“We’ll continue to focus on increasing our landholding but also increasing our reserves – ultimately that will be the factor that unlocks the value that’s already built into the business.”

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Thu, 17 Jan 2019 17:38:00 +1100
Brookside Energy Ltd "looking forward to an exciting 2019", says MD David Prentice https://www.proactiveinvestors.com.au/companies/news/212822/brookside-energy-ltd---looking-forward-to-an-exciting-2019--says-md-david-prentice-212822.html https://www.proactiveinvestors.com.au/companies/news/212822/brookside-energy-ltd---looking-forward-to-an-exciting-2019--says-md-david-prentice-212822.html Brookside Energy Ltd (ASX:BRK) managing director David Prentice has acknowledged that volatility is a part of life, telling investors the company can plan for and manage share price volatility.

The corporate leader and long-time resources industry executive answered shareholders’ questions in an interview with Proactive Investors published today.

Prentice said price action had affected business sentiment but it had not affected Brookside’s fundamentals.

BIG PICTURE: Brookside Energy declares maiden reserve of 3.45 million barrels from Anadarko Basin in US

Prentice told Proactive Investors’ Stocktube video channel the company was “looking forward to an exciting 2019”.

Brookside’s strategic goal is to build value through a disciplined portfolio approach to the acquisition and development of producing oil & gas assets, and the leasing and development of acreage opportunities.

The Western Australian company declared maiden reserves of 3.45 million barrels of oil equivalent (MMboe) in December 2018 for its acreage in the USA’s prolific Anadarko Basin.

The combined net present value (NPV10) of this reserve is US$12.5 million at a 10% discount, with forecast future net revenues of US$37.75 million.

The NPV10 per acre of about US$30,000 is testament to the strength of Brookside’s business model.

Subiaco-based Brookside’s maiden net oil & gas reserves were attributable to only 20% of its total holdings in the basin, so the company is confident of growing its total from the remaining 80% ground.

The company’s 2018 maiden reserve came at a time of volatility in financial markets.

READ: Brookside Energy achieves strong, sustained production from Woodford Shale well

Prentice said: “2018 generally was a pretty good year for oil & gas prices.

“Crude oil averaged around US$60 a barrel for 2018 and natural gas around $3.

“Obviously we saw some pretty dramatic volatility towards the end of the year, the oil price was off dramatically and gas natural prices were up dramatically.

“So, yes there was some volatility. This volatility obviously affects sentiment but it really does not impact on our business model, on our fundamentals or how we execute our business plan.”

Prentice, who is also chairman of Lustrum Minerals Limited, told Proactive the business fundamentals for Anadarko remained strong and the American basin was a great place to execute the company’s business plan.

Brookside’s proven reserves in Anadarko Basin were estimated at 2.83 MMboe, or about 82% of total reserves.

A further 0.617 MMboe were in the probable reserve category.

Bearish markets have advantages

Brookside has a strategy to pick up new projects and new ground when markets conditions soften.

Prentice said: “Long-term price fluctuations like we saw from the middle of 2014 to the middle of 2016 obviously do provide opportunities, that’s where you’d like to execute what we like to call the buy-low strategy.

“Whereas, what I would consider the short-term-type price fluctuations that we’re seeing now probably don’t have an impact on our business model.”

The managing director has noted improvements in the Anadarko Basin area, highlighting activity had increased along with acreage prices, production and reserves.

Hydrocarbons have a future despite electric vehicle fervour

Prentice believes the company’s portfolio and approach will help Brookside build long-term value for investors.

“I think the future’s bright for oil & gas.”

Prentice told Proactive he believed a bright future for hydrocarbons was fundamentally linked to global growth and consumption for the full spectrum of energy sources.

Prentice said: “I’m obviously an oil & gas bull, worked in the industry a long time and it’s something I’m quite passionate about.

“Certainly we’re seeing a shift in the way that we store and then discharge energy, and the uptake of the EVs (electric vehicles) space.

“Improvements in battery technologies have been impressive.”

The resource industry figure of more than 25 years has 15 years experience leading companies, including Red Fork Energy Limited and DLA Phillips Fox.

He is also a non-executive director of Comet Resources Ltd (ASX:CRL) and Black Mesa Production LLC.

 

Prentice is confident of the medium to long-term outlook for oil & gas.

“I think … in the medium to long term, the oil price, or the hydrocarbon story, is really about global growth and consumption.

“The outlook looks strong across the spectrum, all the way from the petrochemicals sector through to the fuels sector.

“I remain a bull and I still think this is the right place for our shareholders to be.”

A standout approach

Prentice believes Brookside stands out from its peers and competitors with its strategy for tenement acquisition.

He told Stocktube: “We’re passionate about this land and leasing model that I (outline) when I’m on your program talking about our strategy.

“We still believe that it is absolutely the best place for Aussie investors in the oil & gas sector — in the US to get the best returns, the best leverage — and so we remain committed to that land and leasing strategy.”

Prentice told Proactive he was passionate that part of the business would generate the best returns for Brookside’s shareholders in the long term.

— with Danielle Doporto, John Miller

Q&A with David Prentice

1.   What factors make the company a promising investment proposition?

If we take out the things we can’t control — price volatility, as an example — and focus on fundamentals, it’s our ability to grow reserves and increase dollars per acre that makes us a compelling investment.

2.   What fundamental factors are required for a re-rating for the company?

It’s all about reserve growth — 2019 will be a transformational year for us as we kick-off development of our SWISH area in the SCOOP Play.

3.   How is the company travelling financially?

We are traveling well. A key benefit of our business model is the flexibility to shift capital from one area to another as we high-grade our portfolio. Also, our ability to source capital from external sources to fund drilling and reserve delineation is key.

4.   Why the focus on the Anadarko Basin rather than other oil & gas regions in the world?

We identified the opportunity in the Anadarko Basin early and the basin continues to get better. We love the basin metrics, geology and reserve potential, and access to services and infrastructure and premium markets for the oil & gas. The Anadarko is now widely recognised as one of the lowest break-even-price basins on-shore in the US. Break-even is from the high US$20s to the low US$40s a barrel.

5.   What are the upcoming catalysts for the company in 2019?

Following a strong performance in 2018 at the asset level and the release of our maiden reserve report (US$12.5 million NPV for 20% of our holdings), we are looking forward to scaling up in 2019 with the chance to increase our acreage and reserves by multiples as we take larger working interests across a bigger acreage position. In the short-term milestones will be centred on success with our spacing and pooling activity in SWISH.

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Thu, 17 Jan 2019 17:00:00 +1100
Cobalt set for bearish 2019 but demand fundamentals remain strong https://www.proactiveinvestors.com.au/companies/news/212832/cobalt-set-for-bearish-2019-but-demand-fundamentals-remain-strong-212832.html https://www.proactiveinvestors.com.au/companies/news/212832/cobalt-set-for-bearish-2019-but-demand-fundamentals-remain-strong-212832.html Following strong upwards trends in 2017, the cobalt price in 2018 climbed to reach an all-time high of US$95,250 a tonne in March before plummeting more than 50% by year-end.

The market volatility across the year was shared by most other base metals, fuelled by the US-China trade dispute as well as China’s contracting economy.

Market sentiment for cobalt shifted further due to announcements from major battery makers such as Tesla to decrease the amount of cobalt to be used in their batteries.

It was also affected by a supply-side response in the form of larger artisanal production from the Democratic Republic of Congo (DRC), which put medium-term pressure on prices.

Six-year cobalt price. Source: tradingeconomics.com

 

Strong demand fundamentals

Production from the DRC has added to volatility due to considerations of ethically-sourced cobalt and the country’s recent contested elections.

Nonetheless cobalt demand remains strong and its use in lithium-ion batteries will potentially triple by 2026.

This was given a jump-start late last year when Katanga Mining (TSX:KAT) halted export sales at its Kamoto mine in the DRC after identifying uranium in its cobalt production.

Cobalt demand increased at a rate of 8% per year from 2010-2017, according to Roskill, mainly driven by demand from the battery sector which now accounts for more than half of total cobalt consumption.

Demand for cobalt in batteries is predicted to grow at 14.5% a year to 2027, which, coupled with increases in other end-uses such as nickel alloys used in aerospace, paint a rosy picture for cobalt outlook across the next decade.

‘Demand will continue to grow’

The 2018 price correction was expected by some analysts, with Benchmark Mineral Intelligence analyst Casper Rawles noting he had anticipated the market to correct but was somewhat surprised by how much.

Rawles said: “There were some exceptions to the rule, but from the end of quarter one and throughout 2018, we’ve seen prices decreasing and continuing to fall.”

Explaining the downward trend, Rawles pointed to the increase in the price basis of raw material feedstocks from the DRC going into China and the resulting credit availability and cash flowing in China.

He remained cautious looking ahead, saying “demand will continue to grow, consumption of lithium-ion batteries is going to grow, but as of right now there’s enough cobalt around to meet the needs of the market”.

Rawles expects the recent election uncertainty in the DRC to potentially have small supply disruptions but these would be short-lived and have no impact on prices.

Advanced technology applications

Most cobalt is mined as a by-product of copper or nickel and is reliant on the strength of those markets.

The US Geological Survey estimates that 43% of world cobalt production in 2015 was from copper mining and 44% from nickel.

There is only one modern primary cobalt operation, the Bou-Azzer mine in Morocco, but that only contributes around 2% to global production.

Cobalt is useful in the manufacture of varying products due to its ferromagnetism and wear-resistance when alloyed with other metals.

The transition metal retains its magnetism at high temperatures and can be used in advanced technology applications as well as in superalloys and as a refining catalyst.

 

Diversification of supply sources

More than 60% of the world’s cobalt production comes from the DRC, of which 10-25% is estimated to be artisanal in nature.

According to the US Geological Survey, total global cobalt production in 2017 was 110,000 tonnes, down from 111,000 tonnes the previous year.

The DRC contributed 64,000 tonnes in 2017 with Russia in second place at 5,600 tonnes.

Australia and Canada, the third and fourth highest producers respectively, have had added interest as cobalt jurisdictions due to stable mining codes, established supply chains and promising cobalt developments.

Darton Commodities Limited estimates that annual cobalt demand will exceed 120,000 tonnes by 2020, with further demand growth linked to potential technological advancements in the battery space.

The global hybrid and electric vehicle market grew by 33.2% in 2017, according to MarketLine data, and demand is predicted to keep rising through 2020.

This could potentially create substantial shortages in cobalt as early as 2022 with current production estimates.

A number of companies are actively developing cobalt projects in Australia and Canada which may soon begin contributing to global production if demand predictions and supply-side challenges persist.

Chinese contraction causes medium-term price weakness

Data shows China’s gross domestic product (GDP) has decreased for the past five consecutive quarters and the country’s leader Xi Jinping has remained vague on Beijing’s plans for a wider economic stimulus.

In terms of both supply and consumption China is a key market for base metals and its economic growth has a strong impact on prices and market sentiment.

According to Darton Commodities, China accounts for more than 80% of the production of cobalt chemicals and it remains a key producer of batteries.

Overall 2018 GDP growth for China is anticipated to be 6.6% and it is expected that the Chinese government will lower its economic growth target to 6%-6.5% in a March parliamentary session.

Forecasts from the International Monetary Fund for world GDP growth are 3.7% for both 2018 and 2019, including slower growth for the US and China at 2.5% and 6.2%, respectively.

India’s GDP is expected to grow by 7.4%.

Cobalt end-uses. Source: Benchmark Mineral Intelligence and Global Energy Metals.

 

Trade dispute foments uncertainty

Talks between the US and China are ongoing and have assuaged some investor concern, but until the dispute is concretely resolved the market uncertainty will persist.

According to Fastmarkets MB Research, China is planning new incentives to boost domestic consumption for goods associated with metal demand including auto and home appliances.

Along with any further economic stimulus, the measures could spark a brief recovery in metals prices but would need an established trade deal to sustain upwards price pressure.

Scotiabank analysts reported in mid-October that the global trade dispute was not only the primary driver of the base metals slump but that also it would continue to have an affect up to 2020 and potentially beyond.

Scotiabank said: “US-China trade concerns remain front-and-centre for commodity markets with no obvious end in sight.

“We now believe that the US-China trade dispute will remain a slow-burn drag on industrial commodity sentiment through to the 2020 US presidential election.”

The Scotiabank analysts pointed out that prices were down despite falls in base metal stockpiles, with nickel inventories at five-year lows and copper down 50% over the last six months.

Cobalt driven by Chinese consumption

With demand sustained from downstream manufacturing sectors producing smartphones and electric vehicles, and supply primarily constrained to the volatile DRC, cobalt prices are likely to remain strong in future.

China imports 99.3% of the DRC's cobalt exports, making it the world's largest cobalt importer at 38% of global imports.

In order to secure stable supply, Chinese state-owned enterprises are increasingly investing in cobalt production in the DRC, with Bloomberg noting eight of the fourteen cobalt mines in the DRC are Chinese-owned.

The largest example is China Molybdenum which is now the world's second largest cobalt producer behind Glencore.

Limited corporate social responsibility and a lack of awareness of local supply chains have given Chinese enterprises an advantage in securing products for its cobalt refining and chemical industry.

Cobalt producers will need to produce more than 200,000 tonnes of cobalt in battery-grade chemicals a year by 2028, according to Benchmark, pushing total demand to 250,000-300,000 tonnes including consumption in other products.

Global cobalt resources by jurisdiction. Source: United States Geological Survey

 

Defining new cobalt jurisdictions

While the DRC is expected to remain the world’s primary supplier of cobalt in the foreseeable future, the issues plaguing the mining industry in the central African country have prompted a spike in exploration for cobalt in other jurisdictions.

A number of Australian cobalt and battery metal developers are advancing work on projects both at home and abroad, aiming to define and extract economic cobalt resources.

READ: Artemis Resources recommences drilling at Carlow Castle, resource update pending

Artemis Resources Ltd (ASX:ARV) recently resumed aircore drilling at its 100%-owned Carlow Castle Gold-Copper-Cobalt Project in Western Australia’s Pilbara region.

Results from the program will be combined with other exploration data to design a resource development drill program scheduled for the March quarter 2019.

A JORC resource update is underway using the near-24,000 metres of previous drill data and is expected this year.

Initial metallurgical results indicate that Carlow Castle ore is amenable to low-cost gravity gold recovery and base metal flotation processes.

READ: Australian Mines’ BFS values Sconi Cobalt-Nickel-Scandium Project at $697 million

Australian Mines Limited (ASX:AUZ) released a definitive feasibility study (DFS) last year for its Sconi Cobalt-Nickel-Scandium in Queensland, valuing the project at $697 million.

The DFS estimates life-of-mine revenues of about $513 million a year, with average EBITDA at $295 million per year.

The company signed a binding term sheet with SK Innovation last year for the sale of all cobalt and nickel sulphate to be produced at Sconi and is also progressing financing discussions.

Historical mining in the area has produced 15,000 tonnes of cobalt and 327,000 tonnes of nickel.

READ: Blackstone Minerals raises $1.2 million for further exploration in Canada and Western Australia

Blackstone Minerals Ltd (ASX:BSX) is developing its landholding around the Little Gem project in Canada, which is rapidly emerging into British Columbia’s premier cobalt belt.

Last year Blackstone identified multiple new large-scale targets at the Jewel copper-gold-cobalt prospect within Little Gem.

The Jewel prospect is 1.1 kilometres northeast of the Little Gem prospect and is associated with the high-grade Jewel Underground Mine with historical production of 51 tonnes between 1938 and 1940.

Historical average mining grades of 73 g/t and 0.4% copper have been supported by Blackstone rock chip samples assaying up to 98 g/t gold, 3.2% copper and 0.1% cobalt.

 

READ: Cape Lambert Resources highlights value in tailings pipeline

Cape Lambert Resources Limited (ASX:CFE) is focused on its Kipushi Cobalt-Copper Tailings Project in the DRC, from which it aims to recover cobalt from old tailings left behind in the hunt for copper.

The company has ambitions to produce thousands of tonnes of material a year near the town of Kipushi in the DRC’s Katanga Copper Belt.

The tailings dam extends for a kilometre, is more than 400 metres wide and up to 15 metres deep, and has enough material to last as long as five years.

Cape Lambert executive chairman Tony Sage said the company expected to produce about 2,900 tonnes of cobalt and 7,500 tonnes of copper a year, worth about US$200 million.

READ: Cobalt Blue’s Thackaringa drilling returns broad, high-grade cobalt results

Cobalt Blue Holdings Ltd (ASX:COB) is developing the Thackaringa Cobalt Project in western NSW with joint venture partner Broken Hill Prospecting Ltd (ASX:BPL).

Drilling at the Pyrite Hill deposit late last year reinforced the project’s potential for resource growth and a substantial mine life.

Pyrite Hill represents 36% of the existing 72 million tonne mineral resource and about 36% of the contained cobalt inventory of 61,500 tonnes.

Results from the first seven infill holes have confirmed substantial thicknesses of cobalt mineralisation consistent with the existing geological model.

They include: 68 metres at 1,128 ppm cobalt, 13.4% iron and 13.4% sulphur from 116 metres; and 52 metres at 1,042 ppm cobalt, 11.1% iron and 11.2% sulphur from 93 metres.

READ: Corazon Mining to advance knowledge of Mt Gilmore, Cobalt Ridge this quarter

Corazon Mining Ltd (ASX:CZN) aims to define a large deposit at the Cobalt Ridge prospect within its Mt Gilmore Cobalt-Copper-Gold project in northeast NSW.

The company is also developing the Lynn Lake Nickel-Copper-Cobalt Sulphide Project in Canada.

Drilling at Cobalt Ridge included 5 metres at 2.14% cobalt within a broader intersection of 27 metres at 0.47% cobalt from 49 metres.

Results from a geochemical soil sampling program which ended in November indicated cobalt and copper values of up to 450 ppm and 1,060 ppm, respectively, and rock chip samples have graded up to 1,795 ppm cobalt and 16.3% copper.

 

READ: Fe Limited advances copper-cobalt in DRC and is leveraged to highly prospective ground in WA

Fe Limited (ASX:FEL) is advancing its Kasombo Cobalt-Copper Project in the DRC towards production in the first quarter of 2020.

Kasombo is 25 kilometres from the DRC’s second largest city, Lubumbashi, in the Katanga Copper Belt.

Recent trenching returned elevated cobalt results including: 10 metres at 0.21% cobalt from 42 metres; and 12 metres at 0.23% cobalt from 17 metres.

FEL executive chairman Tony Sage said Kasombo could be a very viable copper-cobalt mine, but needed a little bit more work on the ground.

READ: Great Boulder Resources prepares for deeper drilling of nickel-rich Eastern Mafic target

Great Boulder Resources Ltd (ASX:GBR) is continuing to drill test targets at its Eastern Mafic nickel-copper-cobalt deposit within the Yamarna project in Western Australia.

A revised geological model based on geophysics and drilling completed in the Decemvber quarter infers that the Eastern Mafic intrusion was formed at depth and deep drilling will test this theory.

The company believes that drilling to date, which has returned encouraging copper, nickel and cobalt results, has only intersected the top of the intrusion, leaving the main body untested.

READ: Havilah Resources’ native title agreement paves way for mining lease at copper-cobalt-gold project

Havilah Resources Ltd (ASX:HAV) is progressing development of its Kalkaroo Copper-Cobalt-Gold Project in South Australia as well as its nearby Mutooroo Copper-Cobalt Project.

The company is aiming to find additional resources at Mutooroo to complement the maiden 100 million tonne resource at Kalkaroo, which contains 23,000 tonnes of cobalt.  

Havilah technical director Chris Giles said a 2018 achievement at Mutooroo was to confirm the cobalt potential of deeper ground at the project, with economic levels of cobalt, copper and gold found.

Mutooroo’s deposit contains 195,000 tonnes of copper and 8,400 tonnes of cobalt.

 

READ: Meteoric Resources begins diamond drilling program at Joyce in Canada

Meteoric Resources NL (ASX:MEI) has recently begun drilling at its Joyce Copper-Cobalt-Gold Project in western Ontario, Canada.

Joyce is Meteoric’s highest priority target based on thick sequences of undrilled massive and disseminated sulphides exposed at surface.

Historical high-grade assays from Joynce include 11% copper, 0.3% cobalt and 8.07 g/t gold, confirming the potential of the system.

The mineral explorer also identified 18 cobalt targets from an airborne electromagnetic (EM) survey at its Mulligan East and Iron Mask projects last year.

READ: Marquee Resources prepares Werner Lake resource update, metallurgical sample

Marquee Resources Ltd (ASX:MQR) expects to update the mineral resource estimate for its high-grade Werner Lake Cobalt Project in Canada this quarter after earning into a 30% stake last year.

Drilling at Werner Lake has returned strong results such as 2.6 metres at 0.313% cobalt and 0.177% copper from 316.4 metres, including 1.6 metres at 0.406% cobalt and 0.176% copper.

Werner Lake features cobalt sulphide mineralisation and was discovered in the 1920s and mined in the 1940s.

Marquee’s other projects include the Skelton Lake Cobalt Project, also in Ontario, and the Clayton Valley Lithium Project in the US state of Nevada.

 

READ: Panoramic Resources on track for first shipment from recommissioned nickel-copper-cobalt project

Panoramic Resources Ltd (ASX:PAN) is aiming to recommission its Savannah Nickel-Copper-Cobalt Project in WA with the first concentrate shipment scheduled early next month.

The ramp-up to full underground mining production continues for the project in the Kimberley region while the process plant achieved a daily throughput rate of 2,000 tonnes early this month.

The company also holds platinum group metals and gold assets and its goal is to become a major diversified mining company.

READ: White Cliff Minerals’ new assays feature 40 metres at 0.22% cobalt and 1.75% nickel

White Cliff Minerals Ltd (ASX:WCN) is developing its Coronation Dam Cobalt Project in Western Australia, recently completing a 5,000-metre reverse circulation drilling program.

Highlighted drill results include: 40 metres at 0.22% cobalt and 1.75% nickel from 8 metres; and 36 metres at 0.1% cobalt and 0.88% nickel from surface.

The drilling has increased the extent of high-grade mineralisation to more than 600 metres long, 400 metres wide and with an average thickness of 20 metres.

Coronation Dam is 90 kilometres south of Glencore’s Murrin Murrin mining operation and 45 kilometres south of GME Resources Ltd’s (ASX:GME) proposed nickel-cobalt processing facility.

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Thu, 17 Jan 2019 16:31:00 +1100
Danakali near-financing a positive sign for 'shovel ready' Eritrean potash project https://www.proactiveinvestors.com.au/companies/news/212745/danakali-near-financing-a-positive-sign-for--shovel-ready--eritrean-potash-project-212745.html https://www.proactiveinvestors.com.au/companies/news/212745/danakali-near-financing-a-positive-sign-for--shovel-ready--eritrean-potash-project-212745.html Danakali Ltd (ASX:DNK) (LON:DNK) (OTCMKTS:SBMSF) has powered up its ambitions to construct and develop the Colluli Potash Project in Eritrea with a US$200 million syndicated loan facility.

The fully-underwritten loan facility led by African development financial institutions (DFIs) African Export-Import Bank and Africa Finance Corporation has a series of milestones Danakali must satisfy to qualify.

WATCH: Danakali ‘shovel-ready’ at Colluli after execution of US$200m debt finance mandate

Colluli has a massive ore reserve estimate of 1.1 billion tonnes grading 10.5% potassium oxide for 203 million tonnes of contained sulphate of potash equivalent.

Front end engineering design (FEED) has confirmed a post-tax net present value of US$902 million and post-tax internal rate of return (IRR) of 29.9% for the project.

Financial metrics for the proposed mine

Danakali secured its funding mandate for the project from the two African financiers in December 2018, with the company declaring the agreement a ‘significant milestone.’

Executive chairman Seamus Cornelius reported: “The execution of the mandate represents a significant milestone for the Colluli project funding.

“We are very pleased to be partnering with strong, experienced African financial institutions.”

 

Cornelius told Proactive Investors’ Stocktube video channel it was a major positive step to recruit the major African institutions for a wider project team to advance Colluli.

He said: “This is major African institutions joining us, joining our existing partners at ENAMCO (Eritrean National Mining Corporation), joining EuroChem, our offtake partners.

“A project like this, it needs a team. It needs a team inside Danakali, but it needs a team of partners to give it the best possible outcome, and that’s what we’ve got now.”

Colluli is 100% owned by the Colluli Mining Share Company (CMSC), a 50:50 joint venture between Danakali and ENAMCO.

CSMC has a binding offtake agreement with EuroChem for up to 100% (minimum 87%) of module I sulphate of potash (SOP) production from Colluli.

A number of debt milestones remain for the company that is focused on development of its asset in a country now at peace with its neighbour, Ethiopia.

Cornelius told Proactive Investors the company was at an exciting phase.

“Where we are in terms of the project, is we are shovel-ready.

“As soon as we secure the full funding we will start construction — the construction will take two years and then we’ll be in production [in] 2021.”

A changed environment

The UN lifted sanctions on Eritrea in November, changing the country’s investment environment.

Cornelius said: “Lifting of the sanctions is unquestionably a very positive thing.

“The sanctions were never specifically impacting us but as you can imagine, the general atmosphere was negatively affected by the fact of the sanctions.”

Colluli quality

The executive chairman outlined the features of the Eritrean asset Colluli in his Stocktube interview.

Cornelius said: “Colluli is a potassium asset, it’s in the Danakil Depression which is a giant, natural geological feature.

“Colluli is a very shallow potassium deposit very close to the coast.”

The deposit is amenable to simple, low-cost open-cut mining with a progressive working face to provide simultaneous access to each mineralised layer.

It has been declared the shallowest evaporite deposit in the world, with mineralisation starting at just 16 metres, allowing open-cut mining.

Cornelius also spoke about the proposed mine and ore gradings, saying “Once (the mine) opens up at the very beginning, we’ll be producing 472,000 tonnes of potassium sulphate, which is a particular kind of potash.

“It is the high-value, high-grade kind that is inshort supply, so we’re very happy with that.”

Milestone focus

Danakali’s remaining debt milestones include finalising contracts with a number of parties, including the company’s preferred engineering, procurement, construction and management (EPCM) provider DRA Global.

Danakali also needs to finalise contracts with EPC solutions provider Inglett & Stubbs International, and its preferred mining contractor.

Other commitments are to follow, including final credit approval from financiers, executive of facility agreement documents and closing of the financial deal after the conditions precedent are met.

Investor backing

Danakali has a market capitalisation of $187.7 million, having 264,422,398 ordinary shares on issue on December 21, 2018.

The company had $11.8 million cash on hand at the end of the September 2018 financial quarter after spending $1.3 million on operating expenses in the period and $1.3 million on investing activities.

Estimated outflows for the December 2018 quarter were $2.8 million, Danakali reported on October 30, 2018.

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Thu, 17 Jan 2019 16:30:00 +1100
Medlab Clinical eyes cost savings following receipt of SME status in Europe https://www.proactiveinvestors.com.au/companies/news/212744/medlab-clinical-eyes-cost-savings-following-receipt-of-sme-status-in-europe-212744.html https://www.proactiveinvestors.com.au/companies/news/212744/medlab-clinical-eyes-cost-savings-following-receipt-of-sme-status-in-europe-212744.html Medlab Clinical Ltd’s (ASX:MDC) European subsidiary has received formal SME (small or medium-sized enterprise) qualification from European Medicines Agency (EMA).

EMA is the European equivalent to the Australian TGA and the US FDA. As part of the registration, this allows MDC to apply for scientific advice, drug evaluation and registration of NanaBis.

It also provides MDC with the opportunity to obtain fee reductions up to 90% in the process.

NanaBi is a cannabis-based medicine which contains formulations of tetrahydrocannabinol (THC) and cannabidiol (CBD).

 

Medlab chief executive officer Dr Sean Hall said: “This is a significant milestone for MDC. Drug registration of NanaBi is key part of the company’s plans and this qualification allows us to start the process into Europe.

“Drug evaluation and registration fees with the various agencies are expensive, but at the same time, a much needed and real cost in bringing a drug to market and we welcome the opportunity obtain fee reductions and as a result significant savings.

“Personally, I would like to thank EMA for their collaborative approach in this regard, and very much look forward to escalating the NanaBis evaluation with EMA as we move closer to an approved drug in the EU.”

READ: Medlab Clinical proceeding to stage 2 for cannabis cancer trial

In late October 2018, Medlab successfully completed stage 1 of the NanaBis human trial on cancer patients at Royal North Shore Hospital.

The trial is progressing as planned and currently in stage II of the ethics approved trial.

READ: Medlab Clinical receives preliminary results from NanoStat™ trial

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Thu, 17 Jan 2019 16:09:00 +1100
Musgrave Minerals MD demonstrates his confidence in the company’s gold strategy https://www.proactiveinvestors.com.au/companies/news/212743/musgrave-minerals-md-demonstrates-his-confidence-in-the-companys-gold-strategy-212743.html https://www.proactiveinvestors.com.au/companies/news/212743/musgrave-minerals-md-demonstrates-his-confidence-in-the-companys-gold-strategy-212743.html Musgrave Minerals Ltd (ASX:MGV) managing director Rob Waugh has demonstrated his confidence in the company’s gold strategy by purchasing shares on-market.

The MD has today bought 260,000 shares with a total value of more than $22,000 for an indirect interest.

More than 1.717 million shares held

This interest now holds more than 1.717 million shares along with more than 6 million unlisted options in four lots expiring at various stages between November 2019 and November 2021.

READ: Musgrave Minerals extends gold mineralisation at Lake Austin discovery in Cue project

Earlier this week the WA explorer announced new assay results from the Lake Austin North discovery of the Cue Gold Project.

The broad gold intersections of up to 137.2 metres at 0.6 g/t from 97.8 metres, including 20.2 metres at 2.3 g/t from 194 metres, have extended mineralisation at the A-Zone.

Phase II drilling underway

A phase II diamond drilling program of a minimum of 15 drill holes for about 4,000 metres is underway with first assay results expected in late February.

Musgrave will also begin regional aircore drilling this week aimed at defining the extents of the A-Zone and C-Zone mineralisation to enable accurate diamond drill targeting along strike.

This program will also include preliminary first pass testing of new lake gold targets.

Aircore drilling is also underway to test three new gold targets on Cue’s northern tenure including the Vostock target, which is only 2 kilometres east of Westgold Resources Ltd’s (ASX:WGZ) Comet mine.

This week Waugh has also discussed the company progress at Cue, its raising of $5.5 million in a placement and the gold outlook in an interview with Proactive Investors’ Stocktube.

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Thu, 17 Jan 2019 15:59:00 +1100
Bellevue Gold will update resource 'sooner rather than later' this quarter https://www.proactiveinvestors.com.au/companies/stocktube/11873/bellevue-gold-will-update-resource--sooner-rather-than-later--this-quarter-11873.html https://www.proactiveinvestors.com.au/companies/stocktube/11873/bellevue-gold-will-update-resource--sooner-rather-than-later--this-quarter-11873.html Bellevue Gold Ltd (ASX:BGL) executive director Steve Parsons updates Proactive Investors on drilling at the gold explorer's flagship Bellevue Gold Project in Western Australia. An updated resource estimate is due out this quarter.

Parsons also discusses the company's cash position, upcoming quarterly, and acknowledgement in a recent Macquarie Bank Global research note as a top pick for its gold exploration potential.

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Thu, 17 Jan 2019 15:59:00 +1100
Pharmaxis LOXL2 program phase 2 ready after completion of 13-week toxicity studies https://www.proactiveinvestors.com.au/companies/news/212738/pharmaxis-loxl2-program-phase-2-ready-after-completion-of-13-week-toxicity-studies-212738.html https://www.proactiveinvestors.com.au/companies/news/212738/pharmaxis-loxl2-program-phase-2-ready-after-completion-of-13-week-toxicity-studies-212738.html Pharmaxis Ltd (ASX:PXS) has now received reports on all of the 13‐week toxicity studies conducted for each of its two Lysyl Oxidase Like 2 (LOXL2) inhibitors.

The company is now ready to enter phase 2 clinical studies for fibrotic diseases such as non‐alcoholic steatohepatitis (NASH), cardiac fibrosis and idiopathic pulmonary fibrosis (IPF).

Adequate safety margin to start phase 2 studies

Both the drug compounds were tested at a range of doses in two species over a 13‐week period to establish the No Observed Adverse Effect Level (NOAEL). 

For both compounds, doses that resulted in 85% or greater inhibition of the target enzyme in the phase 1 studies were below the human equivalent NOAEL doses in all toxicity studies and therefore an adequate safety margin to start phase 2 studies of up to three months in length.  

With the data package complete, Pharmaxis is now conducting a final series of scientific briefings to potential partners.

READ: Pharmaxis resubmits new drug application for Bronchitol in the US

Pharmaxis chief executive officer Gary Phillips said: “The results of the toxicity studies complete our scientific package of data for the LOXL2 program. 

“It is a high quality and comprehensive data package that is a testament to the expertise and experience of the Drug Discovery and Clinical Development teams at Pharmaxis.

READ: Pharmaxis reveals first sales of Aridol® in US following successful relaunch

“We have provided the large pharma companies who have been closely monitoring our progress with the latest study results and are now in the process of supporting them to complete their scientific due diligence. 

“We are keen to answer remaining scientific questions of potential partners, discuss their proposed clinical development strategies should they acquire or license the program and progress discussions concerning appropriate commercial terms.”

 

Pharmaxis’ LOXL2 program compounds are highly selective small molecule inhibitors of LOXL2 that can be administered orally and the completed pre‐clinical development program supports the potential of both compounds to treat fibrotic disease in one or more organs.

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Thu, 17 Jan 2019 13:21:00 +1100