Phoenix Gold raises $5M in Share Placement

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THE BOURSE WHISPERER: Phoenix Gold (ASX: PXG) has provided some optimism to the smaller end of town with the completion of a Placement of 50 million shares at 10 cents per share to raise $5 million.

Any raising, let alone one for $5 million, has been a difficult task for some of the company’s contemporaries of late and Phoenix was quick to point out this particular raising had been oversubscribed and received strong support from existing shareholders.

The raising enabled a few new institutional and sophisticated investors to be added to the company’s register.

In addition to the Placement, Phoenix indicated it would now be offering eligible existing shareholders the opportunity to participate in a Share Purchase Plan (SPP) to raise up to $1 million, again at 10 cents per share.

The company has earmarked the funds from the Placement and SPP to complete the acquisition of the St Ives 2.3 million tonnes per annum heap leach processing facility.

The company indicated the proceeds will also be used to commence relocation of the plant in line with Phoenix’s obligations, and to provide general working capital.

“The heap leach facility is a key part of Phoenix’s development strategy, enabling the treatment of stockpiled lower grade ore mined from Castle Hill and surrounding projects,” Phoenix Gold managing director Jon Price said in the company’s announcement to the Australian Securities Exchange.

“Advancing this significant component of the strategy will provide us with an important additional source of cash flow over many years.”

Email: info@phoenixgold.com.au

Website: www.phoenixgld.com.au

What the Analysts Say

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WHAT THE ANALYSTS SAY: Interesting news and views from across the Resource Analyst universe.

Website: www.hartleys.com.au

Company: Altona Mining (ASX: AOH)

Turkey Creek adds to the appeal of Little Eva
Altona Mining Limited recently announced further extensional RC drilling results at the Turkey Creek discovery located approx. 1.5 kilometres east of the proposed Little Eva pit and processing plant infrastructure at the Cloncurry project.

This drilling has extended the Turkey Creek deposit an additional 600 metres along strike.

The deposit now has a strike length of over 1.8km with mineralisation extending to at least 150m depth and remains open.

AOH has increased the conceptual exploration target for Turkey Creek to 19 to 22 million tonnes at 0.5 to 0.65 per cent copper of which 4 to 5 million tonnes at 0.6 to 0.8 per cent copper is oxide material.

Potential to add ~2 years of minelife to the Little Eva project
Hartleys estimates suggest Turkey Creek has potential to deliver approx. two years of feed to the Little Eva project (Turkey Creek was not included in the DFS). Our modelling estimates each additional year of feed at Little Eva adds approx. $14 million or 3 cents per share to our valuation.

A maiden mineral resource estimate for Turkey Creek is expected over the coming months.

Preliminary metallurgical testwork is underway to assess the suitability of the Turkey Creek sulphide ore to be processed through the proposed Little Eva flotation circuit.

The Turkey Creek discovery is located at the site of the proposed tailings storage facility which will now be re-located.

Turkey Creek has potential to be an early open pit feed source for the Little Eva processing plant at startup and subsequently a potential tailings storage facility on completion of open pit mining.

Once in production Little Eva will keep on giving
The Cloncurry project has a current resource of 1.5 million tonnes copper of which only 347,000 tonnes copper (approx. 23%) has currently been converted to reserve.

After Little Eva has moved into production we see significant potential to extend minelife well beyond the current 11 years through conversion of existing resources and further discoveries of large deposits similar to Turkey Creek.

The Little Eva project is technically robust and economic at current spot prices.

As well as a robust copper-gold development Cloncurry offers some of the best base metals exploration ground in the world.

An improvement in copper prices combined with a lower AUD and a funding solution for Little Eva will see a significant re-rating of the AOH share price over the coming quarters.

Website: www.breakawayresearch.com

Company:  Sheffield Resources (ASX: SFX)

Sheffield Resources (SFX) continues to steadily advance its flagship Thunderbird deposit, putting the company firmly on track to become a Tier 1 mineral sands producer.

The 2014 Scoping Study already demonstrated robust project economics; however, following the latest resource upgrade the project economics are expected to be strongly enhanced. Details will be outlined with the release of the PFS, scheduled in the current quarter.

Assuming a positive outcome in the PFS, Sheffield will undertake a Definitive Feasibility Study, expected by mid-2016, with first production targeted as early as Q4 2017.

The Thunderbird Resource now stands at 3.2 billion tonnes at 6.8 per cent heavy minerals (HM) (3% HM cut off) containing 95 million tonnes of HM, including 19.3 million tonnes of zircon, making it one of the largest accumulations of zircon in the world.

Within the broader Thunderbird resource, Sheffield has identified a ‘high grade’ core, which hosts 1.1 billion tonnes at 11.8 per cent HM (7.5% HM cut off) of which plus-88 per cent is in the Measured and Indicated category.

This ‘high-grade’ resource is sufficient for at least 32 years of production at the targeted 20.8 million tonnes per annum rate.

Sheffield is on track to become a globally significant zircon and ilmenite producer, which will be important to support future funding requirements and placing the company firmly on the radar for potential corporate activity.

In late 2014, Sheffield Resources announced a significant resource upgrade at the Thunderbird project.

The current resource of 3.2 billion tonnes at 6.8 per cent HM compares to the previous resource of 2.62 billion tonnes at 6.5 per cent HM.

Within this resource, Sheffield has identified a coherent ‘high grade core’ containing 1,080 million tonnes at 11.8 per cent HM containing 10 million tonnes of zircon, 3.1 million tonnes of high-titanium leucoxene, 2.8 million tonnes of leucoxene and 36 million tonnes of ilmenite (at the higher grade 7.5% HM cut off).

The upgrade represents a 46 per cent increase to the previous ‘high-grade’ component of the resource, incorporating an increase in both tonnes and grade.

The upgraded resource was the second during 2014 and a significant achievement for the company, further cementing its place as a globally significant mineral sands project.

Zircon is the highest value mineral in the Thunderbird mineral assemblage (Scoping Study assumes US$ 1,475/t vs current pricing of ~US$ 1,146/t) and is expected to be a key factor in delivering significant company earnings.

Disclaimer: The above is intended as a guide only. The Roadhouse accepts no responsibility for investments made from this advice, successful or otherwise.

The views, opinions or recommendations of this article do not in any way reflect the views, opinions, recommendations, of The Resources Roadhouse.

The Roadhouse makes no representation or warranty with respect to the accuracy, completeness or currency of the content. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian financial services licensee before making investment decisions.

Hi Ho, Hi Ho, it’s off to work we go

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THE DRILL SERGEANT: Each week any number of junior exploration plays set out to drill their ground. Here’s a small selection of what’s been happening this week.

Decline development and refurbishment at Gorno zinc project

Energia Minerals (ASX: EMX) has commenced rehabilitation work to access the previously unmined Colonna Zorzone deposit at the company’s 100 per cent-owned high-grade Gorno zinc project in the Lombardia Province of northern Italy.

The refurbished Forcella adit will provide access to the upper levels of the Colonna Zorzone deposit where the company plans to carry out a detailed survey of the pre-existing development within the Colonna Zorzone and to complete a 480 metre underground diamond drilling program to validate historical drilling results.

“This marks the beginning of the next chapter in our strategy to outline a significant high-grade zinc resource at Gorno to take advantage of what is widely forecast to be a very strong zinc market this year during a period of falling global production,” Energia Managing Director Kim Robinson said.

“We are making rapid progress, thanks in part to the strong support of local authorities, and we are well on track to start confirmatory diamond drilling within the upper levels of the Colonna Zorzone in April of this year.”


Drilling to recommence at Stark discovery

Mithril Resources (ASX: MTH) is set to commence a diamond drilling program at the Stark copper–nickel–PGE discovery, located near Meekatharra in Western Australia.

A 300 metre diamond hole will be drilled approximately 40m down-dip of two drill intercepts the company recently obtained from its first ever drill test of Stark of:

The aim of the drilling is to confirm the prospect’s grade potential and continuity of mineralisation.
16 metres at 0.81 per cent copper, 0.09 per cent nickel, and 0.39g/t PGE’s from 183m in NRC14008, including 4m at 1.91 per cent copper, 0.18 per cent nickel, and 0.96g/t PGE’s from 194m; and

13m at 0.44 per cent copper, 0.08 per cent nickel, and 0.24g/t PGE’s from 144m in NRC14003, including 2m at 1.04 per cent copper, 0.18 per cent nickel, and 0.49g/t PGE’s from 152m.

The drilling will also test a modelled ground EM conductor, the bulk of which is interpreted to lie beneath the two intercepts.


Drilling commenced at Canindé graphite project

Paradigm Metals (ASX: PDM) has commenced a NQ diamond drilling program it’s the company’s 80 per cent-owned Canindé graphite project, located in Ceará State, Brazil.

The diamond drilling program is being carried out on the Pedra Preta target and will comprise five drill holes for a minimum of 420 metres distributed on three separate drill sections along 400m strike and open from both sides.

The company anticipates the drilling should be concluded within a three week period and assays received progressively during the March Quarter.

Regal Resources increases Kalongwe Resource by 75 per cent

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THE DRILL SERGEANT: Regal Resources (ASX: RER) has released an upgrade to the Mineral Resource estimate, for the Kalongwe deposit, in the Democratic Republic of Congo.

The new Measured, Indicated and Inferred Mineral Resource totals:

11.17 million tonnes at 2.7 per cent copper (0.5% Cu cut off), including 29.700 tonnes copper; and

2.29 million tonnes cobalt at 0.57 per cent cobalt (using 0.2% Co cut off).

The new numbers represent almost a 75 per cent conversion of the deposit’s previous Inferred resource in to Measured & Indicated categories.

 

Kalongwe copper-cobalt project – Mineral Resource estimate (February 2015). Source: Company announcement

Regal explained the upgraded Mineral Resource estimate incorporates all drilling results from a Phase II infill program, which targeted the upper part of the deposit in the areas the company considered to be amenable to open pit mining.

The company said that not only does the new Mineral Resource estimate represent an increase in both the quality and quantity of the Kalongwe Mineral Resource compared to the previous estimate announced in July 2014, it also reinforces the coherence and strong continuity of high-grade oxide copper mineralisation in the near surface portion of the deposit.

Regal said it expects this to deliver copper grades above the average resource grade early in the mine life.

“The updated Mineral Resource estimate for the Kalongwe Mining Joint Venture project is confirmation of the robustness of the Kalongwe project and a major step forward in realising the ambitious objective of developing a mining operation for the Kalongwe JV partners,” Regal Resources managing director David Young said in the company’s announcement to the Australian Securities Exchange.

“The quality of the resource estimate is of special significance as it has confirmed and underpinned by some way the initial estimate of the resource potential inferred by the exploration team.

“With the completion of updated resource estimate the JV is now in a position to complete the scoping level work to examine various production scenarios including staged development aimed at minimizing upfront capital expenditure.”

Website: www.regalresources.com.au

Zenith upgrades Develin Creek Resource

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THE DRILL SERGEANT: Zenith Minerals (ASX: ZNC) has reported an updated mineral resource estimate for the Develin Creek copper-zinc-gold-silver project, located in Queensland.

Zenith currently owns 51 per cent of the deposits and has a right to acquire 100 per cent from Fitzroy Resources (ASX: FRY).

The new Inferred Mineral Resource (JORC 2012) stands at:

2.57 million tonnes at 1.76 per cent copper, 2.01 per cent zinc, 0.24 grams per tonne gold and 9.6g/t silver (2.62 per cent copper equivalent).

 

Develin Creek Inferred Mineral Resource (JORC 2012) – February 2015. Source: Company announcement

 

Zenith explained the mineral resource update has come on the back of a resource extension drilling campaign carried out in 2014, which the company claims to have confirmed the high-grade core of the Sulphide City deposit extends a further 140m south of the previous JORC resource.

It has also extended a thick sub-horizontal copper zone at the Window deposit to the north of existing drilling.

New results from holes in the drill campaign at Sulphide City included:

5 metres at 2.45 per cent copper, 2.14 per cent zinc, 0.4g/t gold and 30.7g/t silver; and

3m at 2.63 per cent copper, 0.88 per cent zinc, 0.5g/t gold and 36.7g/t silver.

The company considers these results to be an encouraging follow-up to a diamond drill hole completed in 2011 that returned an intersection of:

13.2m at 3.3 per cent copper, 4 per cent zinc and 0.4g/t gold.

All three massive sulphide deposits (Sulphide City, Window and Scorpion) remain open to the north.

Zenith indicated further resource extension drilling is planned.

Email: info@zenithminerals.com.au

Website: www.zenithminerals.com.au

Resources IPOs continue to lose their attraction

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THE BOURSE WHISPERER: There was a time – not long ago – when small-cap mining companies dominated the Initial Public Offerings (IPO) page of the Australian Securities Exchange (ASX) website.

There was no shortage of ‘potential world-class deposits’ being spun out from companies to investors, eager to separate themselves from their savings in search of the next elusive ‘ten bagger’ stock.

With a week now being considered a long time by market pundits, today these heady times stumble about in the dark closets of ancient history, especially now, as a recent report by accounting firm, HLB Mann Judd has found, that the first time since 2007, large capitalisation IPOs dominated the market in both quantity of listings, and the funds raised.

According to the latest HLB Mann Judd, IPO Watch: the market for emerging companies, report two-thirds (67 percent) of IPOs undertaken during 2014 were by companies with a market capitalisation over $100 million, up from 39 percent in 2013 and a significant increase from 2012 where small cap companies made up 93 percent of all listings.

In total, large cap entities represented 99 percent of all amounts raised.

There were 58 IPOs during 2014 representing an increase of 18 per cent over 2013 when 49 companies listed.

 

Source: HLB Mann Judd, IPO Watch: the market for emerging companies

 

This number gains greater significance when compared to the over-all five-year average of 67 listings.

Within the small-cap sector, 2014 welcomed 19 listings, which was a long way down, 37 per cent of the five-year average 57 listings in comparison to 2013 (30 listings) and 67 per cent on the five-year average.

“Within the small cap sector, resources stocks contributed eight listings (42 per cent), raising $56.2 million or 28 per cent of the total small cap raisings,” Marcus Ohm, author of the report and partner at HLB Mann Judd Perth, said.

“Information technology stocks had a significant increase from just one listing in 2013 to seven in 2014, which represented 37 per cent of the small cap IPOs.”

To be fair to the resources small-cap sector it did come up against some healthy opposition in 2014 with the Federal Government’s decision to privatise Medibank Private in the year’s largest IPO.

The sector’s usually strongest supporters, the mum and dad investor types, unsurprisingly funnelled a good deal of their funds into this stock, especially Medibank Members, who picked up each share for $2.00, a nice discount compared to the $2.15 offered to institutions.

Ohm predicts healthcare and biotechnology stocks to continue this strong run into 2015, with seven proposed listings already flagged from these areas, seeking to raise $59 million.

At the time the report was being put together there were already 14 companies applied to list on the boards of the ASX for 2015, with the total funds sought by these IPOs hitting the $114 million mark.

The sobering aspect for the small-cap exploration sector is that only four of the planned listings are for resources stocks, which Ohm suggests signals this sector may continue its sluggish performance through 2015 on the back of lower commodity prices and poor investor sentiment.

“Investor activity in 2014 indicated strong support for larger cap listings and, in particular, a bias towards those companies with established and predictable earnings with solid growth potential,” Ohm said.

“Based upon this, it is anticipated that the IPO market will continue to be difficult for smaller entrants in 2015 unless they have a very attractive investor proposition.

“It is likely that materials and energy stocks will continue to find the market difficult as commodity prices, particularly oil and iron ore, continue to struggle.

“Activity also indicates that IPOs of well-established businesses (such as those in healthcare and related services) will continue to be well supported by the market.”

Ohm was supported in his findings by Sydney-based colleague HLB Mann Judd partner corporate advisory Simon James, who noted the effect of the commodities slow-down with bulks and base metals prices having declined substantially since the peak in 2011-12.

This, James said, had resulted in there being less and less small resources companies around, and therefore less IPOs from this end of town, so not only is the large cap segment of the market growing, the small cap end is shrinking.

“All these trends are likely to continue in 2015 so we can expect to see large-cap IPOs continue to dominate the next 12 months,” James said.

“Fortunately for those smaller entities that might have looked at an IPO as a source of funds we are seeing alternative funds being derived from other sources with more frequency and ease.

“Private equity, retail banks and high net worth individuals are becoming increasingly visible in the capital and debt markets.

“There has also been an acceleration of larger enterprises taking direct investment positions in entities that require cash to fund growth.

“This ‘try before you buy’ trend is likely to continue.”

www.hlbjudd.com.au

 

 

Corazon takes Victory at Lynn Lake

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THE INSIDE STORY: They say the grass is always greener on the other side of the fence so why not remove the fence?

This may be a hackneyed phrase for some, however the current investor-shy environment the junior sector is weathering means it would be wise for companies to find ways of improving the assets they currently own.

Corazon Mining (ASX: CZN) has recently taken advantage of such an opportunity by finalising terms for the acquisition of the Victory nickel project in the Lynn Lake nickel-copper field, in the province of Manitoba – Canada’s third largest nickel producing region, from TSX-listed Victory Nickel.

The Victory project is located immediately adjacent to Corazon’s Lynn Lake nickel copper sulphide project, which contains the EL Deposit where Corazon made its 2011 discovery of a high-grade sulphide breccia at depth.

By acquiring the Victory project, Corazon has reunited the Lynn Lake nickel-copper field for the first time since its closure in 1976.

 

To reprise our metaphor – the company now has a lawn large and green enough to be the envy of its peers in the currently white-hot nickel space.

“We have always had the intention of revamping this project, it has been a long-term goal of the company,” Corazon Mining managing director Brett Smith told The Resources Roadhouse.

“Joining these two projects together just had to be done – it was just a matter of how it would be structured and how we would go about doing that.

“Victory Nickel was very quick to realise the potential of the entire project area as being one project and were happy to do the deal and let us lead.”

Amalgamating the Lynn Lake and Victory projects provides Corazon with a potentially much longer mine life and logistically a more robust mining operation.

Previous mining studies at Lynn Lake have focussed on the deep mineralisation at the Victory project.

By combining this with mineralisation from surface at the EL Deposit, there is potential to significantly reduce up-front capital costs and provide earlier cash flow, hence improved project benefit.

“This is a low-grade deposit and development is dependent on an improved nickel metal price,” Smith explained.

“However, it’s a big tonnage low-cost mining proposition and the costs of mining in Canada are significantly cheaper when compared to those in Australia.”

The Lynn Lake mining centre operated from 1953 until 1976, producing 22.2 million tonnes at one per cent nickel and half a per cent copper at a rate of approximately one million tons per annum.

Lynn Lake is Canada’s third largest nickel mining region and, following completion of the Victory project acquisition, will be controlled entirely by Corazon.

“It’s a mature mining area, however as supported by recent exploration results, we are confident we will discover more mineralisation at Lynn Lake,” Smith said.

Since moving into the Lynn Lake neighbourhood in 2010, Corazon’s key target has been the EL Deposit, which was the highest grade mine at Lynn Lake, producing 1.9 million tonnes at 2.5 per cent nickel and 1.15 per cent copper.

The company’s confidence in Lynn Lake was rewarded in 2011, when it discovered a new high-grade sulphide breccia at depth below the EL Mine, which confirmed prospectivity was still part of the of the Lynn Lake field story, despite the camp’s extensive past mine life.

The discovery drill hole (XND001W1) intersected:

23.75 metres at 3.34 per cent nickel, 1.54 per cent copper and 0.079 per cent cobalt from 731.25m.

The celebration of the EL Deposit discovery in 2011 was unfortunately short-lived as a global slump in the nickel price dictated a temporary halt to further exploration in 2012.

“We stopped exploring and reviewed what forecasters were saying at the time about the nickel price, which was that by the end of 2015 the nickel price would be improving and the market would be much more positive,” Smith said.

It would seem the company’s crystal ball was well-tuned with nickel enjoying a strong run last year on the back of the decision taken by the Indonesian Government to ban the export of unprocessed ores.

Although the initial excitement behind the gains weakened somewhat, the recent revival has analysts predicting happy days ahead for the metal.

Corazon has always considered there to be a great deal of potential at the EL Deposit, where the company has identified encouraging mineralisation from surface surrounding the historical mine.

This mineralisation is not included in the current interim Inferred Resource, but is defined by the ‘Upper-Zone Exploration Target’, which Corazon feels may be exploitable by open-pit mining methods.

The company is convinced this mineralisation is critical to the recommencement of mining at Lynn Lake and has highlighted it as a priority resource definition target.

Defining a new resource, including the most recent drilling, is high on the company’s current agenda, which it expects to commence as soon as it can.

The Victory project brings with it a Canadian (NI 43-101) Measured, Indicated and Inferred Resource totalling 17 million tonnes at 0.66 per cent nickel and 0.33 per cent copper, and an alphabet of deposits situated in close proximity to Corazon’s EL Deposit.

Exploration and mining/processing studies have been carried out on the Victory project by previous operators, with the N and O deposits situated within the A Plug are considered to host the largest resource potential.

“We hope to generate 10 to 15 years of mine life on the know areas of mineralisation,” Smith said.

“We think an active exploration program will extend the mine life estimate a lot further than that.”

The Victory project has been the subject of a continuous stream of work by previous owners, including resource and reserve models completed in 2005 and 2007 with the most recent carried out 2009-2010 by Prophecy Resources Corp.

This work was incorporated in a pre-feasibility study during 2007, which predominantly focused on the N and O deposits within the A Plug.

What Corazon now has is a brownfields project with a Canadian NI-104 Resource it can readily merge with its own Resource and drill-defined mineralisation to achieve JORC-2012 compliance.

With all that work already under its belt the company is poised to commence the necessary Scoping Study work.

“Our aim is to have the Resource work completed by early 2015, and have a good understanding of past mining and processing studies,” Smith continued.

“Modern development work has been carried out – a pre-feasibility study completed in 2007- 2008 – which means it should be a matter of picking that up, dusting it off and bringing it up to the required level.”

The combined project stands up as a significant asset.

Corazon is targeting plus 150,000 tonnes of nickel metal, plus copper and cobalt credits, so in terms of size, it is quite substantial.

“The time line for bringing this into production is a lot shorter than if we had to develop a greenfield discovery,” Smith said.

“We have created a company with a significant resource with potential for a long-life mining operation in an environment where the experts are forecasting very positive things for the nickel metal price.

“Our timing is right as the economic conditions throughout the world, particularly in Canada, means we can stretch our dollar a lot further.

“Basically we think we have got a significant resource in a very good mining environment in a premier Canadian mining province.”

Corazon Mining Limited (ASX: CZN)
…The Short Story

HEAD OFFICE
Level 1
350 Hay Street
Subiaco WA  6008

Ph: +61 8 6364 0518   
Fax: +61 8 6210 1872

Email: info@corazon.com.au
Web: www.corazon.com.au

DIRECTORS and MANAGEMENT
Clive Jones, Brett Smith, Jonathon Downes, Adrian Byass

MAJOR SHAREHOLDERS
Top 20             23.8%
Board            3.5%
Graeme Wallis        3.2%

Patrys has PAT-SM6 trial studies published

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THE ROADHOUSE PHARMACY: Patrys Limited (ASX: PAB) had had results from its recent PAT-SM6 Phase I/IIa, open-label study in patients with refractory or relapsed multiple myeloma(MM) published in peer-reviewed journal. Haematologica.

Patrys claims the article provides a summary of the results of the clinical study conducted in twelve heavily pre-treated MM patients that received four escalating doses of PAT-SM6, over a period of two weeks, via intravenous infusions at 0.3, 1, 3, and 6 mg/kg doses.

The company said safety and tolerability, which were the primary objectives of the study, have been supported with all doses administered found to be safe, well tolerated and the maximum tolerated dose (MTD) not reached.

Four out of twelve patients (33.3 per cent) had stable disease after PAT-SM6 treatment across the dose cohorts 1, 3 and 6 mg/kg according to the International Myeloma Working Group (IMWG) criteria.

According to Patrys the data is comparable to other antibodies under clinical development for the treatment of MM.

“Treatment of relapsed-refractory MM continues to present a therapeutic challenge, prompting a continued search for additional therapeutic options,” Patrys said in its ASX announcement.

“The trial results are also important because they reflect in vivo activity in a difficult-to-treat patient population.

“Targeting GRP78, which is responsible for resistance in many cancers, highlights the prospective role of PAT-SM6 in combination with the existing therapies to overcome tumour resistance.

“Furthermore, the favorable safety profiles of PAT-SM6 make it a likely candidate for possible synergistic results in combination with other therapies while maintaining low toxicity.”

Patrys indicated the upcoming publication also includes supplementary data on an observation made during the course of the trial regarding immune mechanisms of PAT-SM6 and its possible role in overcoming tumour resistance.

Email: info@patrys.com

Website: www.patrys.com

Cobre Montana recovers lithium from Cinovec tin project

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THE BOURSE WHISPERER: Cobre Montana (ASX: CBX) has recovered lithium-bearing minerals from tailings generated during recent metallurgical testing carried out on drill core samples from the Cinovec tin project in the Czech Republic.

The initial tin recovery tests were undertaken by European Metals Holdings (ASX: EMH) with subsequent treatment of the tailings undertaken by Cobre under the terms of a Memorandum of Understanding struck between the two companies in December 2014, which allows Cobre to evaluate the possible production of lithium carbonate as a by-product of Cinovec’s tin production.

Cobre has been investigating processing technology capable of providing advantages over conventional lithium extraction technology.

The company entered into a technology sharing agreement with Strategic Metallurgy in September 2014 to work in co-operation to optimise that company’s proprietary technology for use on Cobre’s projects.

Cobre received a sample of gravity tails from the Cinovec project for froth flotation to test concentrates of an appropriate grade could be produced as a feed source for further down-stream processing using Strategic’s processing technology.

The sample used for the initial scoping produced the following results:

Cinovec gravity tails lithium oxide 0.71 per cent potassium oxide 2.94 per cent

Concentrate grade lithium oxide 2.05 per cent potassium oxide 7.56 per cent

Flotation yield lithium oxide 98.1 per cent potassium oxide 87.0 per cent

Flotation tail lithium oxide 0.02 per cent potassium oxide 0.58 per cent

“The ability to separate lithium-containing mica from other constituents present in the gravity tails, by conventional froth flotation, has been demonstrated to be very effective, achieving >98 per cent lithium recovery to a concentrate grade containing >2 per cent lithium oxide,” Cobre Montana said in its ASX announcement.

“The flotation concentrate has since been subject to leaching tests, the results of which will be announced in the near future.

“Strategic Metallurgy’s flowsheet for processing lithium micas is capable of recovering lithium as a carbonate, and potassium as sulphate of potash, a valuable fertiliser.

“At current market prices, and accounting for the sulphate of potash by-product credit, the concentrate produced from the Cinovec tailings exceeds six per cent lithium carbonate equivalent.”

Email: info@cobremontana.com.au

Website: www.cobremontana.com.au

Juniors scoop up new exploration opportunities

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THE BOURSE WHISPERER: The resilience of the small end of town exploration sector continues to deliver new opportunities as companies look for new opportunities.

NEVADA COPPER JOINT VENTURE

Metal Bank (ASX: MBK) has entered into an agreement with Mason Valley Copper Properties (MVCP) to farm into the Mason Valley copper project, located within the Yerington Copper District of Nevada in the United States of America.

Metal Bank described the Yerington camp as a significant copper district with a NI43-101 resource base of over 12 million tonnes of copper and past production of approximately one million tonnes of copper.

The project includes three main historical underground copper mines (high-grade copper skarn style deposits) with average mined grades of between 2 per cent to 6 per cent copper.

Metal Bank indicated future exploration targeting resource development will focus on extensions to the skarn mineral systems that hosted the high-grade copper orebodies, which the company said pretty much remain open at depth and along strike.

A number of high-priority geophysical targets occur coincident along strike to the existing min, which the company believes could potentially represent new copper rich skarn systems.

Metal Bank explained that past exploration and drilling (modern and historical) over the Mason Valley mining camp has been limited due to previous fragmented ownership of the mining claims/tenure.

Under the new agreement the entire Mason Valley mining camp, including three high-grade historical copper mines has been secured under 10 square kilometres of contiguous claims.

The partnership has access to historical documentation for these three mines, which collectively produced approximately 3.8 million tonnes at a grade of 1.5 per cent to 6.2 per cent copper from 1910 to 1931.

These three copper mines are:

Mason Valley Mine – historical production of 1.7 million tonnes at 2.5 per cent to 6 per cent copper;

Bluestone Mine – historical production 1.5 million tonnes at 1.5 per cent to 3.5 per cent copper; and

Malachite Mine – historical production 0.6 million tonnes at 3.5 per cent to 6.2 per cent copper.

“The Mason Valley copper project is in a low risk, pro-mining district that is undergoing a significant mining revival with 12 million tonnes of copper metal in resources currently at feasibility or mine development stage,” Metal Bank chair Inés Scotland said in the company’s announcement to the Australian Securities Exchange.

“With the establishment of this Joint Venture, we are able to apply modern exploration and resource development to a highly prospective area that has previously seen limited activity as a result of fragmented ownership of the mining claims.

“While the majority of the district’s copper inventory is contained in large porphyry style deposits being developed by majors such as Freeport McMoRan, it is the higher grade skarn style systems that represent the priority target for MBK.”


ACQUISITION OF GOLD PROJECT IN NORTHERN SWEDEN

Dragon Mining (ASX: DRA) has executed a conditional Sale and Purchase Agreement with the Bankruptcy Estate of Lappland Goldminers Fäboliden AB to acquire the Fäboliden gold project in northern Sweden.

Dragon said the Fäboliden gold deposit is a potential source of open pittable material that could be processed at the company’s nearby, fully-owned Svartliden production centre.

In consideration for the acquisition, Dragon Mining will make staged payments to the Bankruptcy Estate comprising:

6 million SEK (A$0.95million) within 10 business days of receiving confirmation the pledgees in the Bankruptcy Estate approve the Agreement;

24 million SEK (A$3.79million) within ten business days from the date of a final, legally binding and unappealable granting by the appropriate court of the extension of the start-up time set out in the Environmental Permit of at least four years; and

10 million SEK (A$1.58 million) on or before the date 18 months after the Completion Date (being the seventh day following the fulfilment of the two conditions: i. a final, legally binding and unappealable granting by the appropriate court of the extension of the start-up time set out in the Environmental Permit of at least four years; and ii. a final, legally binding and unappealable approval from the Mining Inspectorate of Sweden or an approval from the Swedish Government of the transfer of the Exploitation Concession to Dragon Mining.

If the conditions are not achieved within two years of execution of the Agreement, the Agreement shall be considered void and payments reversed, apart from 0.25 million SEK (A$0.04 million) that will be retained by the Bankruptcy Estate.

“The company is very pleased to have secured the acquisition of the Fäboliden gold project,” Dragon Mining executive director Brett Smith said in the company’s ASX announcement.

“Fäboliden represents an advanced project that was previously explored as a large tonnage-low grade gold project.

“Dragon Mining, however, intends to focus on the identified narrower, near-surface higher grade zones within the lower grade envelope that could be more amenable to open pit mining and processing at Svartliden.

“Metallurgical test work and processing of a 1000 tonne sample at the Svartliden Plant has confirmed Dragon Mining’s ability to process material from Fäboliden.

“The existing infrastructure at Svartliden, including the CIL plant and tailings disposal will enable the company to potentially develop an operation at a greatly reduced cost and smaller environmental foot print compared to the original Fäboliden concept.”

Dragon Mining declared it intends to commence activities immediately at Fäboliden, staring with a diamond core infill drilling program targeting the near-surface, higher grade gold mineralisation.