THE BOURSE WHISPERER: Beadell Resources has executed five agreements with Anglo Ferrous Amapá Mineracao, which cover both companies’ access rights to iron ore and gold on tenements controlled by Anglo American and Beadell in the state of Amapá, Brazil.
The company described the agreements to represent a milestone achievement that would enable each party to unlock the combined values of both commodities.
“This is a terrific outcome for both parties and confirms our strong and productive relationship for significant mutual benefit,” Beadell Resources managing director Peter Bowler said in the company’s announcement to the Australian Securities Exchange.
“The overriding outcome for Beadell is low gold cash operating costs to strengthen our long-term core business of producing gold.
“We can now focus on becoming a long life gold producer with scale within the lowest cash cost quartile globally.
“It was always our aim to extract fair value from the extensive iron ore resources on our Mining Tenements for the benefit of our gold focused shareholders, and these agreements achieve this.”
Not long after, Beadell released a further announcement concerning recent drilling carried out on one of the areas covered under the one of the agreements.
Beadell announced RC drill results from the Duckhead prospect, which included:
– 10 metres at 70.9 grams per tonne gold from 50 metres, including 5 metres at 139.1 grams per tonne gold from 50 metres;
– 15m at 31.6g/t gold from 30m, including 5m at 58.7g/t gold;
– 19m at 9.7g/t gold from 1m, including 5m at 32.1g/t gold from 10m; and
– 20m at 16.2g/t gold, including 5m at 52.0g/t gold from 70m.
The Duckhead prospect is located on the Anglo Ferrous Amapá iron ore mining concession adjacent to Beadell’s Tucano gold project.
Duckhead Plan showing location of new RC drill results. Source: Company announcement
Under the Duckhead Agreement signed between Amapá and Beadell this gold resource now has a mechanism to be mined for the benefit of Beadell shareholders, subject to normal governmental approvals.
Beadell said the drill results confirm the high-grade Duckhead JORC inferred resource of 115,000 tonnes at 17.1g/t gold for 63,000 ounces continues to the surface, demonstrating continuity of both grade and width.
These results are the first from a 15,000m RC drilling program Beadell said it has planned to infill and extend the existing resource at Duckhead.
Drilling, and updated resource compilations will be completed by end of calendar 2012, prior to open pit optimisation in early 2013.