Image Resources Hits New Production Records at Boonanarring

THE BOURSE WHISPERER: Image Resources (ASX: IMA) reported record monthly production from the company’s 100 per cent-owned, high-grade, zircon-rich Boonanarring Mineral Sands project located north of Perth in Western Australia.

Image Resources reported record high monthly production of heavy mineral concentrate (HMC) in December 2019 and again in January 2020.

This was in line with the company’s expectations of higher ore grades that were forecast for mining in Block ‘B’ at Boonanarring.

Prior to December 2019, the highest monthly HMC production Image had achieved was in January 2019 at 25500 tonnes from ore mined in the northern section of Boonanarring Block ‘C’.

Since relocating mining activities from Block ‘C’ to the overall higher-grade Block ‘B’ in mid-November 2019, HMC production for December set a new record high at 31400 tonnes, and in January 2020, HMC production reached a new high at 35300 tonnes, providing a strong start for Q1 and CY2020 production.

The company highlighted that HMC production in December and January was in line with its updated mining model estimates which include the uplift in forecast heavy mineral and zircon grades as reported in the updated Ore Reserve results published in December 2019.

Image expects average monthly HMC production levels to moderate through the year to an average of 25-28kt/month to achieve published market guidance for CY2020 HMC production of 300-330kt.

In January 2020 the sale of a regular monthly scheduled shipment of HMC was completed and discussions are underway with off-take partners for Q1 follow-on shipments.

To date, the only impact to Image from the uncertain economic conditions in China following the emergence of the coronavirus has been a delay of a planned February shipment of HMC into March.

Image is working with its partners to expand the size and/or frequency of HMC shipments going forward, to accommodate the higher 2020 HMC production schedule.

The company is investigating interests in the purchase of its HMC from entities outside of China, as a step to minimise geographical risk and to expand marketing opportunities.

“We continue to meet our production targets at Boonanarring which for 2020 are significantly higher than 2019 targets,” Image Resources managing director and CEO Patrick Mutz said in the company’s announcement to the Australian Securities Exchange.

“Our efforts have been supported by substantially higher HMC production capacity following modifications to the processing plant in 2019.

“These modifications have now been proven to allow HMC production at levels substantially above original plant design capacity.

“We also remain focused on, and confident of the outcome of, accelerating exploration and the development of new Mineral Resources and Ore Reserves under the formal banner of Project ‘MORE’ with the goal of extending the mine-life at Boonanarring as quickly as practicable.

“And, in response to the recent softening of the zircon market, which were largely offset by rising TiO2 prices, we continue to evaluate value-adding steps aimed at incrementally increasing product revenue.”

 

Email: info@imageres.com.au

Web: www.imageres.com.au

 

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Cassini Resources and OZ Minerals Deliver PFS for Low-Carbon, Long-Life, Low-Cost Mine

THE BOURSE WHISPERER: OZ Minerals (ASX: OZL) and Cassini Resources (ASX: CZI) finally delivered the long-awaited results of the West Musgrave, Nebo-Babel Pre-Feasibility Study (PFS).

Gold Road Releases 2020 Gruyere Guidance and Resource Upgrade

THE DRILL SERGEANT: Gold Road Resources (ASX: GOR) reported 2020 production guidance and a Resource upgrade for the Gruyere Joint Venture.

Lithium Australia Subsidiary Awarded Federal Battery Development Grant

THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) 100 per cent-owned subsidiary VSPC is to participate in a federal government Co-operative Research Centres Projects (‘CRC-P’) program.

 

Cassini Resources and OZ Minerals Deliver PFS for Low-Carbon, Long-Life, Low-Cost Mine

THE BOURSE WHISPERER: OZ Minerals (ASX: OZL) and Cassini Resources (ASX: CZI) finally delivered the long-awaited results of the West Musgrave, Nebo-Babel Pre-Feasibility Study (PFS).

The West Musgrave project in Western Australia is a Joint Venture between OZ Minerals (70%) and Cassini (30%).

The PFS has determined a long life for the project, coming in with an approximate 26-year open pit copper and nickel sulphide mine.

The study also delivered a maiden Probable Ore Reserve of 220 million tonnes at 0.36 per cent copper and 0.33 per cent nickel, representing around 22 years of the estimated 26-year life of mine with the balance of the mine life underpinned by a combination of Indicated and Inferred Mineral Resource.

The study included an innovative 50MW base case power supply proposal that will use a hybrid solar-wind-battery-diesel solution, although a gas pipeline remains a secondary option.

Baseline data collected since 2018 has demonstrated a high quality, consistent solar and wind resource is available, with higher wind velocities at night offsetting the lack of solar.

Although the current base case assumes power will be purchased under a Power Purchase Agreement arrangement, the final ownership structure for power assets will be further considered during the next phase of project development.

Modelling has demonstrated that around 70 to 80 per cent renewables penetration can be achieved for the site, with the current mix modelled to be an optimised mix of wind, solar and diesel supported by a battery installation.

The JV declared that should the renewables option be implemented, this innovative power supply solution would make West Musgrave one of the largest fully off-grid, renewable powered mines in the world.

The solution would result in the avoidance of in excess of 220,000 tonnes per annum of carbon dioxide emission compared to a fully diesel-powered operation.

“The Pre-Feasibility Study is now complete and has confirmed the project can be a low carbon, low cost, long life mine producing copper and nickel, both in-demand minerals for the renewable and electrification industries,” OZ Minerals CEO Andrew Cole said in the company’s announcement to the Australian Securities exchange.

“Building a viable asset in a remote part of Australia is challenging, but through our collaborative approach we have developed innovative off-grid renewable power and processing solutions, increased stakeholder awareness and involvement in the project and we have built confidence in the Mineral Resource itself.

“Furthermore, we have been able to reduce and eliminate a number of potential project risks.”

OZ Minerals will continue to sole fund the Nebo-Babel studies until the FS and decision to mine are delivered as per the current agreement.

In respect of any amount funded by OZ Minerals, Cassini will be loan-carried for its 30 per cent contribution, with principal and capitalised interest to be repaid five years after the commencement of production at West Musgrave.

“Completion of the PFS is a significant milestone for the West Musgrave Project and all its stakeholders,” Cassini Resources managing director Richard Bevan said.

“The high quality PFS demonstrates the strategic value of this project by confirming robust economics on a long life, low operating cost copper and nickel mine at the Nebo-Babel deposits.

“The province offers the potential to add value to the project over time with continued exploration and development activities.”

 

Email: admin@cassiniresources.com.au

Web: www.cassiniresources.com.au

 

Lithium Australia Subsidiary Awarded Federal Battery Development Grant

THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) 100 per cent-owned subsidiary VSPC is to participate in a federal government Co-operative Research Centres Projects (‘CRC-P’) program.

VSPC– together with CSIRO, University of Queensland (UQ) and Soluna – will receive a grant totalling $1.6 million for its participation in a $5 million CRC-P program to develop fast-charge lithium-ion batteries for use in new-generation trams.

Battery-powered trams eliminate the need for overhead power lines, which are expensive, visually polluting and potentially hazardous.

CSIRO has expertise in the design of Li-ion batteries as well as experience and intellectual property relating to fast-charge batteries for application in trams and other forms of transport, such as e-buses, ferries and military applications.

VSPC will partner with battery researchers at CSIRO’s Clayton site in Victoria to design, manufacture and test fast-charge Li-ion battery prototypes.

The UQ team at the Faculty of Engineering, Architecture and Information Technology – led by Professor Lianzhou Wang from the Australian Institute for Bioengineering and Nanotechnology – has extensive capabilities with respect to the analysis of advanced materials.

VSPC will work with the UQ team on both the characterisation and optimisation of VSPC’s battery materials.

Soluna, meanwhile, will advise on manufacturing and also lead commercialisation of the fast-charge battery products developed.

“This is an unparalleled opportunity to combine VSPC’s battery-materials technology with some of the world’s leading research,” Lithium Australia managing director Adrian Griffin said in the company’s announcement to the Australian Securities Exchange.

“The aim is to deliver an Australian product that puts this country at the forefront of battery development … and there’s more to it than trams; successful application of what is currently at our fingertips will lead to myriad other fast-charge applications, many of them not yet thought of.”

 

Email: info@lithium-au.com

Web: www.lithium-au.com

 

Gold Road Releases 2020 Gruyere Guidance and Resource Upgrade

THE DRILL SERGEANT: Gold Road Resources (ASX: GOR) reported 2020 production guidance and a Resource upgrade for the Gruyere Joint Venture.

The Gruyere JV is a 50:50 deal with Gruyere Mining Company Pty Ltd, a member of the Gold Fields Ltd Group, which manages and operates the Gruyere gold mine.

Drilling completed by the JV in 2019 resulted in a 1.23 million ounce (29%) increase in Measured and Indicated Resources to 6.1 million ounces at the Gruyere JV through the upgrade of Inferred Resources to Indicated Resources.

The Gruyere JV Total Mineral Resource now stands at 154 million tonnes at 1.34 grams per tonne gold for 6.6 million ounces after mining depletion of 0.19 million ounces using an $1,850 per ounce gold price assumption.

The Resource upgrade is expected to provide the basis for an updated evaluation of open pit Reserves during 2020.

Gold Road’s attributable Mineral Resources increased from 3.3 million ounces to 3.6 million ounces (post depletion) largely through the addition of 100 per cent-owned Resources in 2019 from its satellite projects.

2020 annual guidance anticipates Gruyere gold production of 250,000 to 285,000 ounces (125,000 to 142,500 ounces GOR).

Gold Road’s all‐in‐sustaining costs (AISC) should fall between $1,100 to $1,200 per attributable ounce.

The company’s upcoming exploration budget sits at an impressive $26 million.

“The purpose of our 2019 drilling program beneath the Gruyere pit shell was to convert Inferred Resources into Indicated Resources,” Gold Road Resources managing director and CEO Duncan Gibbs said in the company’s announcement to the Australian Securities Exchange.

“The increase in Measured and Indicated Resources by 1.2 million ounces is meaningful and very encouraging.

“The Gruyere JV focus will now move to reviewing Reserves with the goal of growing mine life whilst maintaining a low AISC.

“2020 production and cost guidance affirms Gruyere’s position as a Tier 1 operation with significant cash generation.

“Our exploration team is well supported as we look to make meaningful discoveries in a surprisingly underexplored part of Western Australia.”

 

Email: perth@goldroad.com.au

Web: www.goldroad.com.au

 

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De Grey Mining Releases Further Hemi Hits

THE DRILL SERGEANT: De Grey Mining (ASX: DEG) kept the good news rolling with further results from follow up aircore drilling at the newly discovered Hemi prospect within the company’s Pilbara gold project located just outside Port Hedland in Western Australia.

Middle Island Drilling at Sandstone to Improve Mill Recommissioning Chances

THE DRILL SERGEANT: Middle Island Resources (ASX: MDI) is set to commence a substantial multi-rig, reverse circulation (RC) drilling campaign of over 1200 metres within four kilometres of the company’s 100 per cent-owned gold processing plant at the Sandstone gold project in central Western Australia.

Southern Gold Raises $10 Million From Institutional Placement

THE BOURSE WHISPERER: Southern Gold (ASX: SAU) received binding commitments from sophisticated and institutional investors to raise $10 million.

 

De Grey Mining Releases Further Hemi Hits

THE DRILL SERGEANT: De Grey Mining (ASX: DEG) kept the good news rolling with further results from follow up aircore drilling at the newly discovered Hemi prospect within the company’s Pilbara gold project located just outside Port Hedland in Western Australia.

De Grey Mininig said the latest drill results correlate very well with previously reported gold mineralisation, confirming a substantial steeply south dipping zone of high-grade gold mineralisation.

This mineralisation is defined as 30 metres wide (apparent thickness), and extends to 130m below surface, remaining open at depth and along strike.

The weighted average grade of all results within the mineralised envelope on Section A is 5.2 grams per tonne.

New results on Section A include:

BWAC320
44 metres at 5.1 grams per tonne gold from 40m, including 13m at 8.8g/t gold; and

BWAC321
46m at 6.6g/t gold from 92m, including 21m at 8.3g/t gold;

The company indicated the above results correlate strongly with its results announced earlier this month of:

BWAC315
24m at 7.5g/t gold from 126m, including 18m at 8.6g/t gold (EOH);

BWAC309
49m at 3.7g/t gold from 65m, including 18m at 6.6g/t gold;

BWAC245
36m at 4g/t gold from 39m, including 11m at 8.9g/t gold.

“These are stunning results – high grade, thick and consistent,” De Grey Mining technical director Andy Beckwith said in the company’s announcement to the Australian Securities Exchange.

“Clearly, drilling below this zone and the mineralisation on Section B are two key high priority RC targets.

“We are looking forward to receiving the remaining aircore drilling results and re-commencing drilling activities now the cyclone has dissipated.”

 

Email: admin@degreymining.com.au

Web: www.degreymining.com.au

 

Southern Gold Raises $10 Million From Institutional Placement

THE BOURSE WHISPERER: Southern Gold (ASX: SAU) received binding commitments from sophisticated and institutional investors to raise $10 million.

Southern Gold said the objective of the placement of just over 71.4 million ordinary shares at 14 cents per share was to lift the company’s gold exploration effort in South Korea to higher level, including a doubling of the field teams and diamond drilling rate.

The placement resulted in AIM-listed investment specialist, Metal Tiger subscribing for a cornerstone position under a subscription agreement that provides the right for Metal Tiger to nominate one director to the company Board.

Prominent geologist, Terry Grammer has been nominated under this provision.

Also joining the Southern Gold Board, effective immediately, is economic geologist, Douglas Kirwin, who has been acting in a technical advisory capacity for Southern Gold but now steps up into a much more prominent role as non-executive director of the company.

“This is a truly transformative transaction as it injects significant project advancement funding that can immediately lift the exploration work rate across our South Korea gold holdings,” Southern Gold managing director Simon Mitchell said in the company’s announcement to the Australian Securities Exchange.

“Metal Tiger, as a new cornerstone investor, is technically sophisticated and highly selective.

“Its investment is an important vote of confidence in Southern Gold’s ability to leverage this unique position in South Korea into one of advanced discovery and value uplift.

“This is reinforced by the appointment to the Board of two industry-leading geologists, Douglas Kirwin and Terry Grammer, both with enviable discovery records, are top tier area-selection geologists and who appreciate what we are uncovering in South Korea.”

 

Email: info@southerngold.com.au

Web: www.southerngold.com.au

 

Middle Island Drilling at Sandstone to Improve Mill Recommissioning Chances

THE DRILL SERGEANT: Middle Island Resources (ASX: MDI) is set to commence a substantial multi-rig, reverse circulation (RC) drilling campaign of over 1200 metres within four kilometres of the company’s 100 per cent-owned gold processing plant at the Sandstone gold project in central Western Australia.

Middle Island said the drilling is being carried out to confirm, expand and/or test some 14 open pit gold targets in order to increase and/or upgrade existing open pit Mineral Resources.

This is expected to be finished prior to the completion of an updated pre-feasibility study (PFS) in the June quarter and revisiting a project recommissioning decision.

“Commencing 2020 with approximately $2.8 million in cash (at bank or fully underwritten) provides a rare opportunity to realise a long-held ambition to deploy significant drilling metres across a multitude of open pit gold targets (and deposits) that have remained untested or poorly tested due to prior funding constraints,” Middle Island Resources managing director Rick Yeates said in the company’s announcement to the Australian Securities Exchange.

“The planned multi-phase drilling campaign has the potential to add significant open pit Mineral Resources to the Sandstone gold project.

“With the Australian dollar gold price near record levels, any additional Mineral Resources identified during the drilling campaign should significantly enhance the outcome of the current Sandstone updated PFS, which is planned to be completed in the June quarter of 2020, prior to reviewing a recommissioning decision.”

The company completed an initial aircore drilling program, comprising 200 holes late in January, in advance of the RC drilling to determine the limits of previously defined gold anomalies and maiden palaeosurface drilling of one new target.

At this stage, the aircore drilling results are pending, but Middle Island anticipates they will be returned in sufficient time to refine planned RC drilling of the palaeo-surface gold geochemical targets.

The company explained the aircore and RC drilling programs are the first of a substantial multi-phase drilling campaign, the progressive results of which will be reported on a continuous basis.

If required, additional RC and diamond drilling programs are planned for late in the March quarter to upgrade any defined Inferred Mineral Resources to an Indicated classification, and confirm oxide bulk densities, metallurgical and geotechnical parameters, and waste rock characterisation for a planned tailings facility expansion.

 

Email: info@middleisland.com.au

Web: www.middleisland.com.au

 

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Ramelius Resources Makes Move on Spectrum Metals

THE BOURSE WHISPERER: Ramelius Resources (ASX: RMS) and Spectrum Metals (ASX: SPX) have struck a Bid Implementation Agreement (BIA) that will result in Ramelius offering to acquire all of the issued and outstanding ordinary shares in Spectrum that it does not already own.

Red 5 Increases Darlot Reserve and Resource Estimates

THE DRILL SERGEANT: Red 5 Limited (ASX: RED) updated the JORC Code 2012-compliant Ore Reserve and Mineral Resource estimates for the company’s Darlot gold mine in Western Australia.