Sheffield Resources Signs Thunderbird Ilmenite Take-Off Deal

THE BOURSE WHISPERER: Sheffield Resources (ASX: SFX) announced a maiden binding ilmenite offtake agreement for the future sale of low temperature roast (LTR) ilmenite from the company’s Thunderbird Mineral Sands project in Western Australia.

Sheffield Resources has signed the deal with Bengbu Zhongheng New Materials S&T Co., Ltd.

The agreement is based on a five-year minimum annual supply of 150,000 tonnes of LTR ilmenite.

This represents approximately 50per cent of the estimated total volume of LTR ilmenite to be produced from Stage 1 of Thunderbird.

“We welcome and value the important relationship that we have established with Bengbu and look forward to further growth opportunities in the future,” Sheffield Resources managing director Bruce McFadzean said in the company’s announcement to the Australian Securities Exchange.

“This binding offtake agreement further demonstrates the quality of products that Sheffield will export from Thunderbird.

“Through this relationship, we are able to target Thunderbird LTR ilmenite as feedstock for the high growth chloride slag market.

“With this agreement now in place, more than 75 per cent of Stage 1 forecast revenue is contracted under binding offtake agreement, covering 100 per cent of our Stage 1 zircon products and 50 per cent of Stage 1 LTR ilmenite.

“Demand for our products remains very strong and we look forward to providing the community and our shareholders with further offtake and project updates in the future.”





Pioneer Resources Strikes 100 per cent offtake deal for Sinclair Caesium Mine

THE BOURSE WHISPERER: Pioneer Resources (ASX: PIO) has entered into an offtake agreement with Cabot Specialty Fluids Ltd, a wholly owned subsidiary of New York-listed Cabot Corporation.

Pioneer Resources struck the deal, which will result in Cabot (NYSE: CBT) buying 100 per cent of the caesium ore to be extracted from the Sinclair Zone caesium deposit – to be known as the Sinclair mine.

The Offtake Agreement includes a US$4.8 million loan facility to fund mining operations at the proposed Sinclair mine, which is part of Pioneer’s 100 per cent-owned Pioneer Dome project near Norseman in Western Australia.

The Sinclair mine will be Australia’s first ever commercial caesium ore producer.

The US$4.8 million interest-free loan facility will fully fund mining operations at the proposed Sinclair mine to extract the project’s caesium ore in the form of the mineral pollucite.

The loan is to be offset by Pioneer through the delivery of direct shipping ore (DSO) pollucite from the Sinclair mine via the Offtake Agreement with Cabot, or by cash settlement.

The offtake agreement provides for the sale and purchase of all of the pollucite mined from proposed Sinclair mine, which will be supplied as DSO product.

“The Offtake Agreement is a significant milestone for Pioneer and for the Sinclair mine,” Pioneer Resources managing director David Crook said in the company’s announcement to the Australian Securities Exchange.

“We are delighted to have secured an off-taker with the credibility and reputation that Cabot Corporation holds.

“Within two years, the company has discovered and defined Australia’s first caesium deposit, been granted a Mining Lease, completed a robust mining study for the proposed Sinclair mine, and are advancing the statutory mining approval process.

“We now add to that the execution of the Offtake Agreement – a key element of which is the US$4.8 million loan facility which provides sufficient funds to extract the caesium (pollucite) ore from the Sinclair mine, with delivery as a DSO product to a global caesium specialist.”





Matsa Resources and AngloGold Ashanti Sign MoU

THE BOURSE WHISPERER: Matsa Resources (ASX: MAT) has struck a Memorandum of Understanding (MoU) with AngloGold Ashanti Australia (AGAA).

Matsa Resources said the deal would be of great benefit to the company’s gold mining and exploration activities throughout its Lake Carey gold project which includes the Fortitude, Red Dog and Red October gold mines in Western Australia.

Key aspects of the MoU include:

AGAA to receive first option, and endeavour to treat all gold ore produced by Matsa within the MoU area subject to ore complying with technical requirements;

Both parties to enter a separate technical data sharing agreement under which exploration and other technical information is to be shared and discussed, subject to confidentiality provisions;

Sharing of infrastructure including airport, roads, medical and other facilities where mutually beneficial; and

A model access agreement to be used in all instances of overlapping tenements, especially miscellaneous licences for haul roads etc. which will streamline the grant process within the MoU area.

Matsa explained the non-binding MoU is the outcome of a working relationship established between Matsa and AGAA over the last two years, which included the Fortitude trial mine that ultimately underpinned the economic viability of that recently completed operation.

The MoU covers a large area including Matsa’s Lake Carey and Red October gold projects and AGAA’s Lake Carey and Sunrise Dam operations in the Lake Carey district.

“This agreement represents a massive increase in potential and boost in credibility to Matsa’s Fortitude, Red October and Red Dog mines within the stated area of interest,” Matsa Resources executive chairman Paul Poli said in the company’s announcement to the Australian Securities Exchange.

“Matsa and AngloGold have developed a strong working relationship with each other and this MoU strengthens that relationship to help identify and develop new gold deposits to both party’s benefit.

“Both companies are winners with this cooperation as it allows Matsa access to facilities and knowledge that has been developed by AngloGold over many years.

“This access will strengthen and increase the ability of Matsa to grow its gold ore resources which in turn may assist AGAA to gain additional ore feed for the Sunrise Dam treatment plant.

“It’s a ‘win-win’ for both companies.”





Alto Metals Defines Sandstone In-Soil Gold Anomalies

THE DRILL SERGEANT: Alto Metals (ASX: AME) completed soil sampling it claims to have located three linear gold-in-soil anomalies along an interpreted ‘splay’ off the Edale Fault near Sandstone in Western Australia.

Alto Metals described the Edale Fault as a major deep crustal feature forming the eastern boundary of the Sandstone Greenstone belt, and a potential conduit for emplacement of gold-rich fluids.

The company has received assays from 28 samples out of a total of 340 samples collected in the vicinity of the Edale Fault that have returned anomalous results plus-7ppb gold in three discrete linear zones, each between 1,000 metres to 1,500m long.

“Throughout the Yilgarn Craton, the bounding faults to the Archaean greenstone belts and their environs play host to major orogenic gold deposits,” Alto Metals managing director Dermot Ryan said in the company’s announcement to the Australian Securities Exchange.

“We are very encouraged by these coherent, linear gold in soil anomalies, which we intend to drill test as soon as our Program of Work is approved by the Department of Mines, Industry Regulation and Safety.”





Calidus Resources Confirms Coronation High-Grades

THE DRILL SERGEANT: Calidus Resources (ASX: CAI) announced confirmation of further high-grade results from the Coronation prospect and depth extensions below the Klondyke Resource at the company’s Warrawoona gold project, located 25kms south of Marble Bar in the East Pilbara of Western Australia.

Calidus Resources completed initial reconnaissance drilling at Coronation that has defined high-grade strike of 250 metres adjacent to the previously high-grade drilling results.

Latest drilling intercepts include:

10 metres at 3.84 grams per tonne gold, including 1m at 30.4g/t gold from 27m; and

8m at 2.22g/t gold from 71m.

Calidus also recorded rock chips up to 114.7g/t gold from surface at Coronation.

The company is now planning a Resource drill out program at Coronation for this year to add shallow high-grade ounces.

Recent deep diamond drilling has extended gold mineralisation at Klondyke 150m down dip of previous drilling to 370m depth with an intercept of:

2m at 6.01g/t gold, including 1m at 9.39g/t gold from 421m.

The company said its Klondyke RC resource drill out was progressing well with first results due within four weeks.

“Reconnaissance drilling at the satellite Coronation prospect has highlighted a 250 metre long high-grade zone that will be in-fill drilled in the coming year to provide a maiden resource for Coronation adding to the 712,000 ounce inventory that already exists at Warrawoona,” Calidus Resources managing director Dave Reeves said in the company’s announcement to the Australian Securities Exchange.

“In addition, the intersection of high grade gold at Klondyke 150 metres below previous drilling is very exciting.

“Proving that the structure extends at depth, even on the far edges of our resource, gives us confidence that there is large blue-sky potential across Klondyke at depth.

“For now, however, we will concentrate on the shallow open pit resource potential of Klondyke for the remainder of this year and re-visit the extension of mineralisation at depth once we have gained further knowledge on the deposit.

“I am pleased to report that this resource extension drilling is progressing well and I look forward to announcing these results on a rolling basis over the coming five months.”





Alloy Resources Strike Farm-In JV with Rio Tinto

THE BOURSE WHISPERER: Alloy Resources (ASX: AYR) has struck a Farm-In and Joint Venture Agreement with Rio Tinto subsidiary, Rio Tinto Exploration Pty Limited (RTX).

Alloy Resources and RTX will join forces to explore Exploration Licence EL 45/4807, located in the Paterson region of Western Australia.

The key terms of the Binding Term Sheet include:

Upon Execution RTX is to reimburse Alloy’s previous costs of $40,000.

RTX has the right to earn a 70 per cent joint venture interest in the Tenement by completing the following within 3 years:

Expenditure of at least $500,000; and
At least 500 metres of drilling on the Tenement.

RTX must spend a minimum of $133,000 within 12 months before it can withdraw and is obligated to keep the Tenement in good standing prior to any withdrawal.

In the event RTX earns a 70 per cent interest, Alloy will have a First Election to:

Commence contributing in accordance with its 30per cent participating interest;
Convert its interest to a 1.25 per cent NSR Royalty capped at $15 million plus a right to receive a $1.5 million prepayment of the Royalty upon a decision to mine; or
Not commence contributing to the joint venture and for RTX to continue to sole fund expenditure to earn a further 15 per cent interest.

“We are pleased to have RTX’s interest in exploring our large exploration area north-west of Telfer,” Alloy Resources executive chairman Andy Viner said in the company’s announcement to the Australian Securities Exchange.

“They have been actively exploring in the region since 2015 and we are hopeful that this intellectual knowledge can accelerate definition of the potential for gold-copper mineralisation within our Tenement.

“The area has some historic first pass copper and gold drill results of interest, however this was from back in the 1990s and we will now benefit from modern exploration techniques and geological models.”





Impact Minerals Ramping Up Across Exploration Portfolio

THE DRILL SERGEANT: Impact Minerals (ASX: IPT) signalled its exploration intentions with work to be ramped up over the next six months at four of the company’s 100 per cent-owned gold and base metal projects across Australia.

Impact Minerals has drill programs planned for the Commonwealth gold-silver-base metal project in New South Wales, the Clermont gold project in Queensland and the Mulga Tank gold and nickel project in Western Australia.

The work will also entail the first bulk samples taken at the Blackridge conglomerate gold project in Queensland, in which Impact recently acquired an option to earn 95 per cent.

“Following a recent strategic review of the company’s projects, eleven of the most prospective targets for gold and other metals across the exploration portfolio will be drill tested,” Impact Minerals said in its ASX announcement.

“Work will commence at Commonwealth and Clermont with drill rigs likely to be operating concurrently before moving on to Mulga Tank and Blackridge by about September-October.”

At Commonwealth, all statutory approvals are in place to commence follow up drilling at the Silica Hill Prospect where gold and very high-grade silver intercepts were returned from the previous drill program.

At Clermont follow up RC and diamond drilling is planned at five targets to test previous high-grade drill intercepts and rock chip and soil geochemistry anomalies.

At Mulga Tank in Western Australia, Impact has identified a number of gold and nickel targets for follow up work.

At the Blackridge conglomerate gold project also located near Clermont in Queensland, bulk samples will be taken at several places along the mineralised unconformity between the gold-bearing sedimentary units and the underlying basement.

A few drill holes may also be completed.





Intermin Resources Consolidates Yarmany Ground

THE BOURSE WHISPERER: Intermin Resources (ASX: IRC) has moved to consolidate tenure for the Yarmany gold project, 65 kilometres west of Kalgoorlie-Boulder in Western Australia.

Intermin Resources’ Yarmany project area comprises five granted tenements and five applications.

Of these, ELA15/1655 and ELA 16/510 are recent applications that cover newly available ground contiguous with the company’s 100 per cent-owned Yarmany and Area 54 prospects.

Intermin now claims to hold a dominant position overlying the Ida and Reptile Shear zones and covering over 320 square kilometres.

Previous geochemical work completed by earlier owners identified numerous anomalies, many of which Intermin is yet to follow up.

The Iguana – Jamaica and Lizard gold mines along strike of the company’s tenure were developed between 2000 and 2009 producing 68,000 ounces of gold grading three grams per tonne and have current resources of 201,000 ounces.

Intermin has commenced data compilation and target generation for drilling in early 2019 upon final granting of applications.

“The consolidation of the Yarmany tenure is in line with the company’s strategy of acquiring quality assets on major geological structures contiguous with existing landholding and in close proximity to supporting infrastructure,” Intermin Resources managing director Jon Price said in the company’s announcement to the Australian Securities Exchange.

“The area has had limited work completed in the last 20 years and was consolidated through pegging at very low cost.

“We see great opportunity for Yarmany to join Teal, Anthill and Blister Dam as a key growth project for Intermin in this world class gold producing region.”





Musgrave Minerals Intersects Gold at Lake Austin North

THE DRILL SERGEANT: Musgrave Minerals (ASX: MGV) reported further strong assay results from a regional aircore/reverse circulation (RC) drilling program currently underway at the company’s Cue project in the Murchison District of Western Australia.

Musgrave Minerals is drilling to test 10 new high-priority gold targets at the Cue project with the latest results coming from the Lake Austin North gold target returning thick intervals of gold mineralisation in regolith over two wide zones (A Zone and B Zone).

The two parallel, mineralised gold targets have returned multiple thick gold intersections including:

13 metres at 4.3 grams per tonne gold from 120m, including 7m at 7.1g/t gold from 126m to end of hole;

42m at 1g/t gold from 112m to end of hole, including 18m at 1.9g/t gold from 130m;

33m at 1.2g/t gold from 116m to end of hole, including 12m at 2.6g/t gold from 134m;

60m at 0.67g/t gold from 90m including, 18m at 1.6g/t gold from 126m; and

42m at 0.59g/t gold from 90m, including 6m at 2.1g/t gold from 120m;

The A Zone is situated on what the company considers a highly prospective sheared granodiorite-mafic contact in a similar geological setting to that seen at the Granny Smith gold deposit in the Eastern Yilgarn of Western Australia.

“This is a fantastic result and the thick extensive regolith gold intercepts in A Zone show a significant gold system is present at Lake Austin North,” Musgrave Minerals managing director Rob Waugh said in the company’s announcement to the Australian Securities Exchange.

“The high grades intercepted in 18MOAC075 are also open to the south and show the potential for a high-grade primary source in unweathered rock.

“The A Zone mineralisation is still open in multiple directions where drilling is continuing.

“As part of this regional program, new gold mineralisation has now been identified at the Lake Austin North, Joshua, Lena North and Break of Day North targets.

“The results received to date reinforce the potential of the Cue project to host further high-grade gold deposits within this very prospective and well-endowed region with good infrastructure and numerous operating gold plants.”





Global Geoscience Completes $53M Placement

THE BOURSE WHISPERER: Global Geoscience (ASX: GSC) is $53 million richer following the completion of an underwritten institutional placement.

Global Geoscience said the placement was heavily oversubscribed, saying this reflected strong support for the company from a combination of existing shareholders and new high-quality institutional investors, and their collective interest in the company’s 100 per cent-owned Rhyolite Ridge lithium-boron project in Nevada, USA.

Global Geoscience said the equity raising will provide the company with the necessary funding to accelerate the development of Rhyolite Ridge by funding the:

Completion of feasibility studies;
Drilling to infill and extend the current resource; and
Ongoing working capital and potential long lead time items.

“The Rhyolite Ridge Definitive Feasibility Study (DFS) and environmental approval process are anticipated to be complete by 2H19,” Global Geoscience said in its ASX announcement.