Azure Minerals Reports Initial Oposura Resource

THE DRILL SERGEANT: Azure Minerals (ASX: AZS) reported an initial Mineral Resource estimate for the company’s 100 per cent-owned Oposura zinc-lead-silver project in Sonora, Mexico.

Azure Minerals declared the Mineral Resource to be based upon 173 diamond drill holes (comprising 16 historical holes drilled by Grupo Minero Puma SA de CV and 157 holes drilled by Azure) and has been estimated and classified as Indicated and Inferred Mineral Resources in accordance with the guidelines of the JORC Code 2012.

The initial Mineral Resource estimate has come in at 2.9 million tonnes at 5 per cent zinc and 2.8 per cent lead for contained metal of 146,000 tonnes of zinc, 82,000 tonnes of lead and 1.6 million ounces of silver.

The company highlighted that 75 per cent of the contained metal is classified in the Indicated Mineral Resource category, saying this provides confidence in the continuity of grade and widths of the mineralisation.

“This initial Oposura Mineral Resource is a very positive outcome for the company’s development and production strategy,” Azure Minerals managing director Tony Rovira said in the company’s announcement to the Australian Securities Exchange.

“Containing over 220,000 tonnes of zinc and lead and 1.6 million ounces of silver in near-surface, high-grade mineralised zones, Oposura is presenting a strong case for mine development.

“Open pit and underground mine planning and scheduling are now underway.

“The schedules will be used to optimise the proposed plant throughput rate and finalise the capital and operating cost estimates.

“Further information on the results of these studies will become available during the third quarter of 2018.

“Since acquiring Oposura less than a year ago, the company has significantly advanced and de-risked the project.

“Potential risks that have been positively addressed include the Mineral Resource, metallurgical performance and process route, concentrate marketing and transport, environmental baseline studies and access to infrastructure.”

Azure believes the Mineral Resource shows potential for future expansion as the mineralisation remains open in several directions with the most obvious area for increase being the Central Zone, a 500m-wide zone situated between the East and West Zones.

This area has been only lightly tested by historical drilling and the mineralised horizon is present in several drill holes.

Additional upside potential is also present to the north of the Mineral Resource.

The company has further drilling planned for 2018 to upgrade the classification and expand this initial Mineral Resource, and to explore the wider property.

 

Website: www.azureminerals.com.au

 

Rox Resources Exercises Gold and Nickel Tenement Options

THE BOURSE WHISPERER: Rox Resources (ASX: RXL) exercised an option to purchase two tenements at the company’s Fisher East nickel and Mt Fisher gold projects, located 500 kilometres north of Kalgoorlie in Western Australia.

Rox Resources explained the tenements, situated along strike to the south of known nickel and gold zones on existing Rox tenements, were subject to an Option to Purchase Agreement struck in 2014.

“These two tenements are key strategic assets to our nickel and gold projects at Fisher East and Mt Fisher respectively,” Rox Resources managing director Ian Mulholland said in the company’s announcement to the Australian Securities Exchange.

“They represent highly-prospective areas where we have identified strong indications of mineralization, and I am confident that we will make further discoveries, which will allow mineral resources to be defined.”

The Fisher East nickel project hosts a Mineral Resource of 2 million tonnes at 2.5 per cent nickel for 50,600 tonnes of contained nickel at Camelwood, Cannonball and Musket, with a fourth deposit, Sabre, yet to be drilled out.

The first of the new tenements, E53/1802, is located along strike to the south of Rox’s existing Sabre nickel sulphide discovery and covers 10km of the prospective ultramafic horizon, now providing Rox with a total 40km strike length of that favourable stratigraphy.

Work since the option by Rox was announced has identified nickel and copper geochemical anomalies on E53/1802, with fresh nickel sulphides intersected in aircore drilling at the Mt Tate prospect coincident with an EM anomaly.

Further drilling at Mt Tate, and other prospects within E53/1802 is planned over the coming months.

The second tenement, E53/1788, is located along strike to the south of a 7km long gold-in-regolith anomaly currently held by Rox at the Dam and Dirks prospects, which also hosts the Shiva gold prospect, where a recent aircore drilling program identified a 500m long continuous zone of gold anomalism, extending the potential gold-bearing corridor to more than 10km.

Under the terms of the Option the exercise price is $600,000 cash.

 

Email: admin@roxresources.com.au

Website: www.roxresources.com.au

 

Musgrave Minerals and Westgold to Develop Cue Project

THE DRILL SERGEANT: Musgrave Minerals (ASX: MGV) gained a great leap forward for the company’s Cue project in the Murchison district of Western Australia.

Musgrave Minerals has signed a non-binding Term Sheet with Westgold Resources (ASX: WGX) providing a near term development pathway for the existing gold resources at Musgrave’s Cue project.

The Term Sheet outlines the terms of a Mine Management and Profit Sharing arrangement, under which Musgrave can receive 50 per cent of profits from operations that would be financed, managed and operated by Westgold.

Musgrave explained the Term Sheet is non-binding and provides the scope on which a formal Mine Management and Profit Sharing Agreement can be negotiated.

The arrangement would be restricted to the existing JORC-compliant gold resources Musgrave has already established at the Lena, Break of Day, Jasper Queen, Gilt Edge and Rapier South deposits on its 100 per cent-owned tenements at Cue.

Musgrave would retain 100 per cent of the exploration interests and upside outside of the defined resources.

“This outcome reduces the technical and capital risk for Musgrave and provides the potential for a near term development option for the company,” Musgrave Minerals managing director Rob Waugh said in the company’s announcement to the Australian Securities Exchange.

“We welcome the opportunity to partner with Westgold, an experienced gold mining company with strong technical capabilities, equipment and operating mills in the region.

“Musgrave would retain a 100 per cent interest in all the exploration upside and the potential development is expected to generate positive cashflow that can be utilised to fund exploration, resource growth and discovery for the benefit of Musgrave shareholders.

“The relationship would also enable Musgrave to focus on its exploration strengths and accelerate our drilling programs across a range of high-grade targets including Lake Austin North.”

 

Email: info@musgraveminerals.com.au

Website: www.musgraveminerals.com.au

 

Saturn Metals Strikes Visible Gold Hits in First Drill Hole

THE DRILL SERGEANT: Saturn Metals (ASX: STN) reported visible gold in the first diamond tail completed by the company at its Apollo Hill gold project near Leonora in the West Australian goldfields.

Saturn Metals said the visible gold was supported by a 3D X-ray scan of a 20-metre section of core from the diamond tail, AHRCD0016, using Swick Mining Services’ Orexplore GeoCore X10 core scanning technology showing the presence of additional interpreted gold grains.

Using the Orexplore technology, interpreted gold grains were scanned at 181.7m, 184.21m, 184.45m 197.2m and 201.25m, giving gold indications over the entire 20m section of AHRCD0016 core.

Saturn has submitted the whole drill core to the laboratory for assay to ensure all gold grains are captured in the analysis.

The company explained that AHRCD0016 is the first of a nine-hole diamond drilling program completed in June to test for higher grade plunging shoots (including the Armstrong and Eagle Shoots) within the current Apollo Hill 0.505 million ounce JORC 2012 Inferred Resource of 17.2 million tonnes at 0.9g/t gold.

“We are extremely pleased with the unusually high number of gold indications we have seen in the AHRCD0016 core so far,” Saturn Metals managing director Ian Bamborough said in the company’s announcement to the Australian Securities Exchange.

“We look forward to reporting the assay results for this hole, and the other eight holes in the coming weeks.

“The GeoCore X10 scan has provided us with additional confidence in our interpretations, some timely geological targeting information for the start of our upcoming RC program and a great data set for the deposits apparently simple metallurgical development.”

 

Email: info@saturnmetals.com.au

Website: www.saturnmetals.com.au

 

Alto Metals Claims New Vanguard Gold Mineralisation

THE DRILL SERGEANT: Alto Metals (ASX: AME) claimed discovery of gold mineralised systems at the Vanguard deposit on the company’s Sandstone gold project in Western Australia.

Alto Metals received 50 gram metre fire assays of four metre composite aircore samples taken from 35 AC holes drilled on the periphery of the Vanguard deposit.

According to the company, ten of these ‘extension holes’ intersected shallow intersections of plus-0.5 grams per tonne gold.

Assay highlights include:

SAC206
20 metres at 1.4 grams per tonne gold from 40m; and

SAC214
12m at 2.5g/t gold from 0m and 9m at 4.0g/t gold from 60m.

Alto interpreted these new gold results as further evidence the Vanguard system is robust and open and justifies the current aircore drill program to test and expand the footprint of the Vanguard gold deposit.

“Between 26 May and 25 June 2018, Alto completed 253 infill and/or extensional aircore drill holes for a total of 12,175 metres over ten high priority prospect areas at Sandstone,” Alto Metals managing director Dermot Ryan said in the company’s announcement to the Australian Securities Exchange.

“Approximately half of these holes and half of the metres were drilled around Vanguard and between Vanguard and Vanguard North.

“This first batch of four-metre composite assays now received from 35 holes around Vanguard are highly encouraging, and they add two more mineralised structures to the three mineralised structures previously defined by Alto.

“We are looking forward to the assay results of the outstanding 118 Vanguard AC holes over the next four to five weeks, which will potentially define further mineralized structures.”

 

Email: admin@altometals.com.au

Website: www.altometals.com.au

 

Metalicity Defines New Lithium Targets

THE DRILL SERGEANT: Metalicity (ASX: MCT) has identified further lithium targets at the company’s 100 per cent-owned Pilgangoora North lithium project located in the Pilbara Region of Western Australia.

Metalicity reported on recent field work, from which it identified two lithium target areas to advance additional field work and potential drilling at the Pilgangoora North lithium project, located approximately nine kilometres north of the world class Pilgangoora group of lithium deposits currently being developed by Pilbara Minerals (ASX: PLS) and Altura Mining (ASX: AJM).

Metalicity completed preliminary mapping, satellite imagery interpretation and rock ship sampling to define a series of pegmatites over a 10km trend.

The recent reconnaissance mapping and rock chip sampling, combined with the earlier rock chip sampling results, has identified priority target areas for further work.

“The exploration program has confirmed the likely source granite for many of the pegmatites with rare-element geochemical signatures present within the Pilgangoora North tenements and has provided additional information which supports the two priority target areas (PN 2 and PN 3) in which to focus further exploration activity for lithium bearing pegmatites,” Metalicity managing director Matt Gauci said in the company’s announcement to the Australian Securities Exchange.

 

Website: www.metalicity.com.au

 

Impact Minerals Following Silica Hill Mineralisation

THE DRILL SERGEANT: Impact Minerals (ASX: IPT) has commenced a new round of drilling at the company’s 100 per cent-owned Commonwealth project north of Orange in New South Wales.

Impact Minerals is carrying out follow up diamond drill program to test the depth extent of high-grade gold and silver mineralisation at the Silica Hill prospect

The drill holes are targeted at the down dip and down plunge extension of the southern and northen mineralised zones that company identified either side of a recently identified porphyry unit within the Silica Hill rhyolite.

The company outlined the southern mineralised structure has good grade and geological continuity over a strike extent of at least 150 metres and recently returned high-grade gold and very high-grade silver results within the north west trendng part of the zone.

The lower-grade northern mineralised zone also demonstrates continuity and recently returned its thickest zone of mineralisation to date, which Impact has interpreted to suggest that, similar to the southern zone, lower-grade mineralisation is increasing in thickness and grade at depth and also to the east.

Impact declared the Silica Hill results continue to demonstrate the potential for bulk mining and to increase the Resources at the Commonwealth project, which currently stand at 720,000 tonnes at 2.8 grams per tonne gold, 48g/t silver, 1.5 per cent zinc and 0.6 per cent lead.

“The recently identified porphyry unit within the Silica Hill rhyolite is similar in composition to the porphyry unit at the Commonwealth deposit 150 metres to the west which comprises a gold-silver rich base metal massive sulphide lens and veins and disseminations of gold and silver mineralisation,” Impact Minerals said in its ASX announcement.

“This suggests a common link between the two mineralised areas and importantly indicates that this new porphyry unit could be the top of a pipe or sheet like feature that extends to some depth.”

 

Email: info@impactminerals.com.au

Website: www.impactminerals.com.au

 

Blackstone Minerals’ Consistent Cobalt Hits Continue to Polish Little Gem

THE INSIDE STORY: Blackstone Minerals (ASX: BSX) has made a rapid start and impressive progress since joining the competition to discover high-grade cobalt deposits.

Blackstone Minerals listed on the ASX in January 2017 and in July that year acquired 100 per cent of the Little Gem project, located in British Columbia, Canada.

Cobalt is very much a metal-of-the-moment, due mainly to its 60 per cent contribution to the makeup of lithium-ion batteries, which is the basis for 50 per cent of global demand.

Expected growing demand for electric vehicles leads the lithium-ion battery charge that is sweeping cobalt along in its wake.

As a result, cobalt is expected to have a supply deficit, especially as current global mining output is only just meeting demand.

The cobalt price has enjoyed a buoyant run over the past two years, rising from US$10 per pound (US$22,000/tonne) to US$40/lb (US$87,000/t).

Current prices are still well short of the highs of US$52/lb (US$115,000/t) experienced in 2008, which was the last time cobalt was in deficit.

Blackstone Minerals commenced a six-hole maiden diamond drilling program at Little Gem in 2017, which came up trumps from the get go.

The first drill hole intersected massive, semi-massive and disseminated mineralisation, returning:

4.3 metres at 1 per cent cobalt and 15 grams per tonne gold, including 1.1m at 3 per cent cobalt and 44g/t gold.

These results were encouraging and were consistent with high-grade historic underground drilling and adit channel sampling data results of 1.8m at 2.4 per cent cobalt and 112g/t gold and 1.8m at 4.4 per cent cobalt and 73g/t gold respectively.

The first hole only tested the upper portion of the mineralised target but was able to identify multiple zones of massive sulphide (cobalt-gold) mineralisation within a broader alteration halo.

Blackstone re-commenced its 2018 field season drilling in April and immediately revealed the Little Gem alteration halo to be much larger than the company had previously estimated.

The 2018 drilling results the company had received at the time of writing had consistently intersected a broad alteration zone, highlighting potential for a major hydrothermal system at Little Gem.

The third hole to be completed at Little Gem, LGD18-002, continued to encourage Blackstone, returning:

3.2m at 0.8 per cent cobalt and 4g/t gold, including 1m at 1.2 per cent cobalt and 5g/t gold.

“It’s very clear that the results we have achieved to date are in line with our expectations, especially with our first hole at Little Gem hitting three per cent cobalt,” Blackstone Minerals managing director Scott Williamson told The Resources Roadhouse.

“We have now followed that result with further high-grade cobalt hits of one per cent and over.

“To put that in perspective – our peers in Australia are averaging around 0.1 per cent cobalt.

“We have recorded two intersections of over one per cent cobalt, which is ten times anything our Australian peers have encountered.

“We believe we are, potentially, dealing with a major hydrothermal system, which means there is a lot of fluid flow and a broad halo around this mineralisation.”

On the back of these positive results, Blackstone initiated a geophysical survey to test for further high-grade cobalt-gold prospects within the identified plus-1.8-kilometre strike target zone at Little Gem and the nearby Jewel prospect located 1.1km north-northeast of Little Gem.

“We are now seeing a significantly larger alteration zone at Little Gem and we are also seeing that the disseminated mineralisation is carrying good widths within flat lying zones of mineralisation,” Williamson said.

“To really understand that, we need to carry out more geophysical studies, so we can unlock what is really happening within the deposit.

“Over the next three to six months we will be focused on doing just that.”

The second mineral occurrence to attract Blackstone’s attention at the Little Gem project is the historic Jewel gold prospect which supported limited gold production from 1938 to 1940.

The Jewel prospect is located only 1.1 km north-northeast of the Little Gem Mine, near the (serpentinite/ granodiorite) contact zone which is prospective for cobalt-gold mineralisation in a fashion the company considers being analogous to the world class Bou-Azzer primary cobalt district in Morocco.

The comparisons to Bou-Azzer are inevitable with the district Little Gem is situated in having been well-explored and well-understood for gold and other metals, however, Blackstone is the first to be primarily on the hunt for cobalt.

The multi-element potential of the district has been demonstrated since Blackstone began working on the Little Gem project.

The company has verified mineralisation identified historically at the Little Gem prospect as well as at the Jewel gold prospect and discovered a new high-grade gold prospect named Roxey.

The Roxey gold prospect is located 1.5km west-southwest of the Little Gem prospect and was visually identified by Blackstone during the company’s original due diligence site visit, during which it took rock chip samples that returned assays of up to 24g/t gold, 1.9 per cent copper and 24g/t silver.

This was supported by surface rock chip samples taken at the Jewel prospect, which returned up to 98g/t gold and 3.2 per cent copper.

These results confirm what Blackstone found from its investigation of historical samples.

The Little Gem Project was discovered in the 1930s by prospectors who identified a pink cobalt-bloom on weathered mineralisation that led to the development of three adits.

A total of 1,268m of underground drilling was completed at this time and detailed channel sampling was taken from the adits.

Results from this historic work generated exceptional cobalt and gold assays including:

Historic drilling
1.8m at 2.4 per cent cobalt and 112g/t gold 3.3m at 1.4 per cent cobalt and 12g/t gold; and
4.1m at 1.4 per cent cobalt and 11g/t gold.

Underground channel sampling
1.8m at 4.4 per cent cobalt and 73g/t gold; and
2m at 3.1 per cent cobalt and 76g/t gold.

Surface channel sampling
0.4m at 5.7 per cent cobalt and 1,574g/t gold; and
0.1m at 4.6 per cent cobalt and 800g/t gold.

The Little Gem deposit is mostly underlain by granite of the Coast Plutonic Complex and ultramafic rocks on what has been interpreted to be the northern extension of the Cadwallader fault zone.

These are the major geological units and structures important to the mineral deposits either as the host rocks or sources of the mineralising fluids that gave rise to the Bridge River mining camp.

This camp has 60 mineral localities including the Bralorne-Pioneer mining complex, which boast an endowment of 4.4 million ounces at 17g/t gold and is the biggest gold producer in British Columbia and the sixth largest in Canada.

Little Gem is only 15km along strike to the north of the Bralorne-Pioneer mining complex.

Incredibly, there has been very little modern-day exploration carried out at Little Gem and what has been undertaken mostly consists of airborne geophysical surveys, including magnetic, radiometric and electromagnetic (EM) surveys completed in the 1970s and a further two drill holes completed in 1986.

“Results from the first three drill holes have confirmed Little Gem has some of the world’s highest-grade cobalt-gold mineralisation,” Williamson said.

“We are looking forward to the next round of assays and results from geophysical surveys to define the full potential of the mineralised system and the extensive alteration zone discovered at Little Gem.”

 

Blackstone Minerals Limited (ASX: BSX)
…The Short Story

HEAD OFFICE
Suite 3, Level 3
24 Outram Street
West Perth, WA, 6005

Ph: +61 8 9425 5217

Email: admin@blackstoneminerals.com.au
Web: www.blackstoneminerals.com.au

DIRECTORS
Hamish Halliday, Scott Williamson, Andrew Radonjic, Steve Parsons, Bruce McFadzean, Michael Konnert

 

Alliance Resources Promoting Weednanna from Gold Prospect to Gold Region

THE INSIDE STORY: Alliance Resources (ASX: AGS) is beginning to realise the potential lying within its flagship Weednanna gold prospect and other regional targets.

As Alliance Resources progresses Weednanna towards a maiden mineral resource estimate, the company has also turned its attention to the regional gold potential surrounding the prospect.

The Weednanna gold prospect is the most advanced of the Wilcherry Project Joint Venture in the Gawler Craton of South Australia between Alliance and Tyranna Resources (ASX: TYX).

As of 31 March 2018, Alliance had increased its interest in the Wilcherry Project Joint Venture Exploration Area to 71.09 per cent.

At Weednanna, high-grade gold shoots are associated with a calc-silicate and magnetite skarn system.

Alliance has stated its objective to establish a maiden mineral resource estimate for Weednanna this year and working towards that goal includes a staged program of metallurgical work on Weednanna gold mineralisation with the aim of optimising gold recovery and culminating in process design criteria and capital and operating costs for the processing base case.

Should the outcomes of both work streams be positive, Alliance intends feeding them into a scoping study to commence in the second half 2018.

The company has already demonstrated the exploration potential at Weednanna, however historic high-grade gold intercepts at the Mawson and Ultima Dam South prospects, both within a short trucking distance to Weednanna, also have the company very excited.

The most recent work at Weednanna consisted of Alliance’s fourth RC drilling program at the prospect, returning results that included four holes assaying greater than 50 grams per tonne-metres gold (grade by thickness).

Around the same time, Alliance completed a further 22-hole RC drilling program to define the geometry of Target 4 and initial testing of Target 5.

Fifteen holes at Target 4 reported intercepts greater than 1g/t gold, including four holes returning greater than 50g/t-m gold.

After a short break in drilling at Weednanna, Alliance returned in June to conduct a further 14 holes at Weednanna Target 4 with the aim to bundle together Targets 1 – 4 and 3D modelling to establish a mineral resource estimate.

“We finished a high-resolution gravity survey at Weednanna earlier this year, because we really wanted to fully understand the targets we are drilling,” Alliance Resources managing director Steve Johnston told The Resources Roadhouse.

“They are discreet targets and most have relatively narrow extents in cross section, but have potential for continuity down plunge and, of course, there is potential for repetition.

“We are trying to throw as much at it as we can in terms of geophysics because we already possess good magnetic data sets, a good regional gravity data set and previous IP work there has lit up sulphides which are often associated with gold.”

The high-resolution gravity survey revealed several structures, including a dominant NW-SE trending set.

The Weednanna Target 1 gold shoot is located along the most prominent of these NW-SE trending structures, which continues to the south of Target 4.

Alliance will use the gravity data to assist with mapping the sub-surface geology, particularly the target corridors of calc-silicate and magnetite skarn that host high-grade gold shoots.

The data will complement the existing geophysical datasets at Weednanna and will be utilised for constrained 3D inversion modelling to assist with targeting new gold lodes.

“The idea of doing the high-res gravity survey was to get a handle on the calc-silicate target, which hosts the gold mineralisation,” Johnston explained.

“We found some really large northwest-trending structures cutting across the project, which we had a hint of from the magnetics, but they really showed up from the gravity survey.

“One of the structures goes through Target 1, which is our largest target sitting in the west of the project.

“Target 1 is quite constrained at only 130 metres of strike, but this structure that trends through it, and continues on, is about one kilometre and, historically, there hasn’t been much drilling along the length of it.

“That has really opened that area for further exploration, so we will be looking at that too.

“Once we have modelled these targets we will be able to see if there are any other localities that might provide for structural repetition.

“It could be quite a powerful model that we will have at the end of it, so the wireframing we are doing is not just for a mineral resource estimate, it is also for targeting additional mineralisation.

“I’m confident that we will identify other target areas, I don’t know how many at this stage, but we have potential to add to the number of target areas we already have at Weednanna.”

In May this year, Alliance announced the commencement of a review of regional gold prospectivity in a bid to identify prospects with potential for gold mineralisation situated within five kilometres of Weednanna.

The company compiled results from historic geochemical and drilling databases that showed gold was encountered at the Mawson, Ultima Dam South and Weednanna North prospects, with anomalous gold of greater than 0.2g/t gold at the Ultima Dam and Ultima Dam North prospects.

The Mawson prospect sits 3,600m to the northwest of Weednanna and was initially identified by calcrete sampling in in the 1990s that defined a gold-in-calcrete anomaly over the southern part of the prospect.

Drilling by Anglogold into the anomaly in 1999 intersected 29m at 0.86 per cent copper from 41m.

Trafford Resources drilled nine RC holes across Mawson in 2008, including four with diamond tails with five holes reporting intercepts greater than 1g/t gold, with a best intercept of 5m at 2.46g/t gold from 159m, including 3m at 3.3g/t gold from 161m.

The Ultima Dam South prospect, 3,200m northeast of Weednanna, was also drilled by Anglogold in 1999.

Two holes reported intercepts over 1g/t gold, with a best and shallow intercept of 1m at 4.09g/t gold from 14m.

When it released the announcement, Alliance was surprised that it seemed to fly under the radar of market watchers and analysts.

“The market doesn’t always understand the implications of such an announcement,” Johnston said.

“That announcement was really a statement of historic results within a five-kilometre radius of Weednanna that we don’t believe had been published before.

“This was work completed by previous owners and explorers that included results of five metres at close to 2.5 grams per tonne gold at the Mawson prospect, just to the northwest of Weednanna and another of one metre at four grams per tonne gold from the Ultima Dam South prospect to the east.

“What is important to note is that the drilling was not targeting gold but copper at Mawson and iron ore at Ultima Dam South.

“Serendipitously there was gold and it appears to be associated with the calc-silicates and magnetite similar to what we’re getting at Weednanna.

“We will be having a really good look at that next year with a view to doing more geophysics and drilling to try and identify some of these target areas.

“We have only just scratched the surface at Weednanna, but there seems to be potential for multiple Weednanna-style deposits at these other localities.”

 

Alliance Resources Limited (ASX: AGS)
…The Short Story

HEAD OFFICE
Suite 3
51 – 55 City Road
Southbank, VIC, 3006

Ph: +61 3 9697 9090

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

DIRECTORS
Ian Gandel, Tony Lethlean, Steve Johnston

 

Panoramic Resources Signs New Savannah Sales Agreement

THE BOURSE WHISPERER: Panoramic Resources (ASX: PAN) reported a new four-year Concentrate Sales Agreement over concentrate that may be produced from the company’s Savannah nickel-copper-cobalt project in the East Kimberley of Western Australia.

Panoramic Resources announced that Sino Nickel Pty Ltd, Jinchuan Group Co., Ltd and Savannah Nickel Mines Pty Ltd (a wholly owned subsidiary of Panoramic) have executed a new four-year Concentrate Sales Agreement.

The agreement covers 100 per cent of the concentrate that may be produced from the Savannah nickel-copper-cobalt project.

This new Agreement replaces the Extended Concentrate Sales Agreement struck in 2010, which was due to expire on 31 March 2020.

Panoramic said the terms of the new Agreement will be applicable from the first shipment of concentrate from the recommissioned Savannah project and incorporate improved payabilities for certain contained metals compared to the 2010 Extended Concentrate Sales Agreement.

Panoramic declared the terms of the Agreement are highly competitive in the global market for Savannah’s bulk nickel-copper-cobalt concentrate, based on the bids for the concentrate received from several parties and the knowledge that the market for nickel concentrates has tightened in the past 12 months.

The general terms and conditions of the new Agreement are as follows:

Product – sulphide concentrate with a typical specification of 8 per cent nickel, 4.5 per cent copper, 0.6 per cent cobalt, 46 per cent iron, less than 1 per cent manganese oxide;

Quantity (in-bulk) – 100 per cent of production from the Savannah Project;

Load Port – Wyndham, Western Australia;

Payable metals – nickel, copper and cobalt;

Price basis – agreed per centage of LME cash price for nickel and copper and agreed per centage of Metal Bulletin Co price; and

Life of new contract – four years commencing from the date of the first shipment or 31 March 2019, whichever occurs first.

“The new Agreement, which will cover concentrate produced from the Savannah and Savannah North orebodies, is an important condition precedent to restarting the Savannah project,” Panoramic Resources said in its ASX announcement.

“Now that the new offtake has been concluded, the finalisation of the project debt financing is the last remaining condition precedent to the Board making the decision to restart the project.

“Negotiations with potential financiers on the debt funding are progressing well and the company should be a position to make an announcement on project debt funding shortly.”