Southern Gold Confirms Major Epithermal System at Beopseongpo

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THE DRILL SERGEANT: Southern Gold (ASX: SAU) received results from the first pass scout drilling program undertaken at the Lotus North and Hand of Faith prospects at the company’s Beopseongpo project in South Korea.

Southern Gold said the drilling had confirmed major epithermal system at Beopseongpo with best results achieved at the Hand of Faith prospect, including:

BPDD005
1 metre at 1.48 grams per tonne gold from 9.4m in hole (True width);

BPDD006
0.96m at 5.7g/t gold from 36.45m in hole (Est. 0.67m True width); and

BPDD007
1.05m at 1.17g/t gold from 46.68m in hole (True width).

The company said it was encouraged by these results as they come from a very small strike section of veining (<100m strike extent of one vein system) drilled to date, which equates to less than five percent of the total outcrop, subcrop and float train-inferred strike of vein systems mapped at Beopseongpo project area.

Southern Gold noted that the quartz vein textures intersected were typical of the upper-most levels of Low Sulfidation vein systems, less than 50 metres below the palaeowater table, which it has interpreted to mean the main potential for high-grade precious metal mineralisation is preserved and interpreted to be between one hundred and five hundred metres below the paleo-water table, which has yet to be drilled.

Now that the veins have been intersected, Southern Gold suggests they can easily be targeted down dip in the next program at Hand of Faith.

“We are pleased to have successfully executed the maiden drill program at Beopseongpo and confirm the large vein widths at Hand of Faith,” Southern Gold managing director Simon Mitchell said in the company’s announcement to the Australian Securities Exchange.

“The results and vein textures are typical of high level low-sulfidation systems and we intend to target these at depth where high-grade mineralisation is much more likely in a second phase program next year.

“Beopseongpo has all the right technical characteristics of a large-scale epithermal system and will require several drill programs to fully test the multiple targets in the extensively veined area.”

 

Email: info@southerngold.com.au

Web: www.southerngold.com.au

 

Nusantara Resources Shores up Funding for Awak Mas gold project

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THE BOURSE WHISPERER: Nusantara Resources (ASX: NUS) has entered into a non-binding term sheet with strategic partner, PT Indika Energy Tbk providing financing for the company’s Awak Mas gold project.

Indika Energy is to invest up to USD $40 million into Nusantara’s wholly-owned subsidiary PT Masmindo DWI Area (Project Company), in two stages and subject to conditions, to secure up to 40 per cent interest in the Project Company.

“The Board of Nusantara in conjunction with our partner Indika Energy are excited to announce this transformational milestone and clearly demonstrate to all stakeholders the value of the project and a clear pathway for funding.” Nusantara Resources executive chairman Greg Foulis said in the company’s announcement to the Australian Securities Exchange.

“We are confident that, with the support of major shareholders, Nusantara can complete the Indika Energy and Petrosea Agreements in early 2020 and significantly ramp up its pre-build activities.”

A Definitive Feasibility Study carried out in 2018 showed the Awak Mas gold project to be a robust, long-life and low-cost gold project with an initial 11-year life producing around 100,000 ounces of gold per year that is development ready.

Since completing the 2018 DFS, Nusantara has been focused on a partnering approach to funding and development of the project.

 

Web: www.nusantararesources.com

 

Lithium Australia Finalises Energy Storage JV

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THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) announced the completion of its Joint Venture for joint battery marketing operations with China-based battery and energy storage specialists the DLG Group (DLG).

Lithium Australia said the new enterprise will be an incorporated JV venture with it holding 50 per cent interest and DLG the same.

The JV will be trading as Soluna Australia Pty Ltd, which has been established to sell lithium-ion batteries (LIBs) and Soluna energy storage products into the rapidly expanding Australian renewables energy market.

Lithium Australia cited a detailed investigation of the Australian energy-storage industry that identified there to be serious supply-chain constraints in the delivery of LIBs to Australian customers.

The company indicated that Soluna Australia intends to provide a new and reliable supply source for renewable energy solutions to power users in Australia.

The Australian renewable energy sector is presently experiencing strong growth, which has led the Australian Council of Learned Academics to estimate that 16 Gigawatt hours of energy storage will be required by 2030 to ensure security of electricity supply for the medium forecast rate of uptake of renewable energy.

That is estimated to necessitate investment of more than $5 billion in energy-storage solutions in the next 10 years, with LIBs forming a large proportion.

Under the Lithium Australia/DLG agreement, the parties will facilitate technological cooperation between LIT Subsidiary, VSPC Ltd and DLG for both cathode and battery R&D.

DLG will work with Lithium Australia to further develop VSPC’s cathode powders, initially with a focus on lithium-ferro-phosphate (LFP) LIBs, LFP being the ideal battery chemistry for Australian energy-storage applications.

DLG has been working with VSPC to test LFP cathode powders produced at the latter’s pilot plant in Brisbane, Australia.

Those powders have been used in the manufacture of commercial 18650 LIBs at DLG’s Shanghai R&D facility.

“Formalisation of Lithium Australia’s Joint Venture with DLG, which resulted in the creation of Soluna Australia, paves the way for the introduction of superior energy-storage products into the Australian market, reducing the carbon footprint of national energy consumption for both residential and industrial consumers,” Lithium Australia managing director Adrian Griffin said in the company’s announcement to the Australian Securities Exchange.

“We foresee great potential for energy storage in fringe-of-grid and off-grid applications, as well as improvements in the utilisation of power from existing grids.”

 

Email: info@lithium-au.com

 

Web: www.lithium-au.com

 

Cassini Resources to Commence Drilling at Yarawindah Brook

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THE DRILL SERGEANT: Cassini Resources (ASX: CZI) is set to commence a program of diamond drilling at the company’s 80 per cent-owned Yarawindah Brook project located near New Norcia in Western Australia.

Cassini Resources declared the project as being prospective for nickel, copper, cobalt and PGE’s, adding that the drilling program will target two separate prospect areas, the XC05 conductor and the AN01-AN02 conductors.

Approximately 1,000 metres of diamond drilling is expected to conclude in January after a short break for Christmas.

The company completed an airborne electromagnetic survey (AEM) over the project in early 2018 that identified numerous conductors it considered worthy of further investigation.

A surface fixed loop electromagnetic (FLEM) survey was also completed over several of the higher priority AEM anomalies in order to confirm and better constrain the conductors prior to drilling.

The FLEM reinforced the XC05 and XC06 anomalies as priority targets, however, only the XC05 conductor will be tested in this program due to access difficulties at XC06.

XC05 has been modelled as three discontinuous conductors over a strike length of 300m, with a maximum conductance of 2400S. This will be the first-ever drill testing in this area of the project, which is a distinctly different part of the belt which hosts the AN01 and AN02 conductors.

The AN01 and AN02 conductors sit at the southern end of a large ultramafic belt that hosts a small lateritic platinum and palladium resource.

Cassini considers the platinum and palladium enrichment in the regolith as ‘path-finders’ for potential massive nickel – copper – cobalt sulphides, which have been proven to exist by historic exploration drilling carried out in 2007 that returned several intercepts of sulphide mineralisation.

No follow-up drilling was conducted and now Cassini has re-modelled surface and downhole electromagnetic (DHEM) data and identified multiple offhole conductors which it hopes may represent extensions to recognised mineralisation.

“This is an exciting time for our company and we are not slowing down for the holiday period,” Cassini Resources managing director Richard Bevan said in the company’s announcement to the Australian Securities Exchange.

“This is our maiden drill program at Yarawindah Brook, supported by some excellent work done by our exploration team.

“There is a high level of anticipation amongst our team and we hope this program delivers a great start to the New Year.”

 

Email: admin@cassiniresources.com.au

 

Web: www.cassiniresources.com.au

 

Panoramic Resources Says No Thanks to Independence Group Take Over

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THE BOURSE WHISPERER: Independence Group (ASX: IGO) rattled the boards of the ASX in November when it declared its intention to make an off-market takeover offer to acquire all of the ordinary shares of Panoramic Resources (ASX: PAN) it does not already own.

At the date of the announcement, Independence Group’s interest in Panoramic consisted approximately 24.9 million shares, representing approximately 3.8 per cent of the target company’s total issued capital.

IGO explained it opted to directly engage Panoramic shareholders following a number of unsuccessful attempts to engage with the Panoramic Board on a change of control transaction.

The company cited Panoramic’s recent operational performance and the lack of engagement from Panoramic’s Board to date as the impetus behind the offer.

The conditions to the offer include a number of conditions that IGO believes to be necessary to confirm the current status of operating performance at Savannah.

The offer is in the form of one IGO Share for every 13 Panoramic shares held, giving Panoramic a share price of 47.6 cents per Panoramic share, which values the company at around $312 million.

IGO indicated its preference is to conduct an expedited and thorough due diligence process, and to proceed with a recommendation from the Panoramic Board rather than seek the confirmations required under the offer conditions, however IGO said it is prepared to see the offer to completion should the offer conditions be satisfied.

“The Offer represents a rare instance of genuine and obvious mutual benefit for both Panoramic and IGO shareholders,” Independence Group managing director and CEO Peter Bradford said in the company’s announcement to the Australian Securities Exchange.

“Panoramic shareholders will be able to crystallise future value from Savannah at a very attractive price and retain exposure to its upside potential, while also gaining exposure to Nova and Tropicana and IGO’s extensive portfolio of belt-scale exploration projects prospective for nickel and copper.

“The company remains leveraged to the nickel market and we believe IGO has the financial, operational and technical capability to fully unlock value from Savannah and Panoramic’s exploration portfolio.

“Given our unique positioning as Australia’s largest independent producer of nickel, to unlock value at Savannah, we have decided to provide the offer for the consideration of all Panoramic shareholders.”

In response, Panoramic did nothing to surprise anybody by recommending its shareholders take no action in relation to the IGO takeover offer.

“The Board will evaluate the offer and Independence Group’s Bidder’s Statement and provide shareholders with a recommendation in due course,” Panoramic Resources said.

“Until then, shareholders should take no action.”

And no action they did take.

The Directors of Panoramic bounced back this week to inform their shareholders that they didn’t think the offer from IGO was in their best interests.

They recommended that having carefully considered the terms and conditions of the IGO Takeover Offer and taking into account the results of the company’s recently announced operational review at Savannah and other information available to them at the current time, shareholders should REJECT the IGO Takeover Offer.

They must have been serious because the recommendation was in capital letters.

The key reasons for the Panoramic Board’s unanimous recommendation were:

The IGO Takeover Offer is opportunistically timed, which could deprive Panoramic shareholders of future potential value;

Panoramic shareholders’ exposure to the company’s assets and potential upside would be diluted through accepting the IGO Takeover Offer;

Panoramic shareholders’ nickel exposure would be diluted through accepting the IGO Takeover Offer;

The IGO Takeover Offer consideration was for IGO shares, which PAN considered, based on several objective measures, to appear to be trading at an elevated valuation, presenting downside risk to the implied IGO Takeover Offer value;

Accepting the IGO Takeover Offer meant shareholders risk missing out if a superior offer from a third party if it emerges;

Panoramic’s largest shareholder, Zeta Resources, which holds 35.17 per cent of Panoramic indicated it does not intend to accept the IGO Takeover Offer; and

The IGO Takeover Offer is highly conditional and there is no certainty it will proceed.

In response, Independence Group said it would not be taking up the offer to use its 38 per cent holding to participate in Panoramic’s announced non-renounceable entitlement offer to raise approximately $31 million stating the Entitlement Offer breaches a condition of IGO’s takeover offer.

We can only assume this is not the end of this discussion.

 

 

Middle Island Resources’ Bid for Alto Metals Hits the Wall

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THE BOURSE WHISPERER: To quote The Eagles, “It seems like a dream now, it was so long ago”, but it was only in March this year the Middle Island Resources (ASX: MDI) provided Alto Metals (ASX: AME) shareholders something to ponder by announcing its intention of an all scrip off‐market take‐over offer for all the issued ordinary shares of Alto Metals.

Back then, Middle Island Resources said it had formed the view that the combination of the assets of the two companies would create, among other material benefits to the shareholders, a company with near-term cash flow potential and considerable production and exploration upside.

The company said the all scrip off-market takeover offer would give Alto shareholders five Middle Island ordinary shares for each Alto ordinary share, which the hunter said valued its prey at approximately $9.4 million representing a 61 per cent premium over Alto’s last closing price at the time.

According to Middle Island this upside would include access to its processing plant, even though it is currently on care and maintenance, saying this would provide Alto shareholders with an immediate, proximal and cost-effective processing solution for their company’s gold resources that is not otherwise available.

Middle Island is keen to restart its Sandstone gold processing plant and clearly the Alto deposits would provide initial mill feed and critical mass to support its early recommissioning in conjunction with the former’s Two Mile Hill deposits.

Middle Island declared it has received indicative broker support with respect to the takeover for an equity capital raising of approximately $5 million in additional funds to advance the feasibility and recommissioning of the Sandstone plant. Claiming the combination of Middle Island and Alto will consolidate the entire Sandstone greenstone belt and dataset under a single entity.

“Middle Island’s offer is compelling for Alto shareholders, who will receive a significant premium based on the last closing price for their shares and will benefit in the future growth potential of the proposed Combined Group,” Middle Island Resources managing director Rick Yeates said in the company’s announcement to the Australian Securities Exchange.

“Middle Island will integrate Alto’s assets with Middle Island’s Sandstone gold project, and immediately embark on an updated feasibility study, incorporating Alto’s Mineral Resources, to determine the economics of recommissioning the Sandstone gold processing plant.

“The collective Middle Island‐Alto gold assets offer a substantial growth opportunity for current and future shareholders of the Combined Group, via low capital intensity and a near-term production profile.

“The further potential is to significantly extend this production profile via Middle Island’s Two Mile Hill underground deposits, consolidate further proximal deposits within a 100 kilometre radius, and amalgamate an entire greenstone belt offering significant resource and exploration upside.

“In the view of the Middle Island directors, the premium offered, the funding support, Middle Island’s technical and management expertise, and participation in the combined Middle Island‐Alto upside, makes the bid a compelling proposal.”

The Resources Roadhouse spoke to Rick Yeats when both attended the RIU Resources Roadshow in Melbourne.

The deal, howver, failed to gain traction and Middle Island this week announced its off-market takeover bid for fully paid ordinary shares Alto Metals has lapsed.

The reason being that Middle Island’s 50 per cent minimum acceptance condition, to which the Offer was subject, had not been met as of close of the Offer period at 5.00pm (Perth time), Friday, 29 November 2019.

Middle Island thanked those Alto shareholders who had taken up the offer, acknowledging that as the offer had lapsed, they would have their Alto shares returned.

Undeterred, Middle Island said it strongly believes that combining Middle Island and Alto’s gold assets offers a substantial growth opportunity for current and future shareholders of a combined entity.

The company declared the combined entity would have low start-up costs and near-term gold production, utilising Middle Island’s existing Sandstone gold processing plant and infrastructure, along with the consolidation of healthy gold resource upside and exploration potential within the combined entity’s highly complementary tenure.

Middle Island made note that over the past two years, it has unsuccessfully endeavoured to engage the Alto Board on what it considers is a clear, compelling and commercially logical strategy that is widely endorsed by all stakeholders.

Middle Island indicated it intends to continue to pursue meaningful dialogue with the Alto Board of Directors as it seeks to add value for both Alto and MDI shareholders.

 

 

THE DAILY ROADHOUSE

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Breaker Resources Launches Bombora Drill Campaign

THE DRILL SERGEANT: Breaker Resources (ASX: BRB) has commenced a major reverse circulation (RC) and diamond drilling program designed to grow the one million-ounce Bombora Resource within the company’s Lake Roe gold project, east of Kalgoorlie in Western Australia.

Ausgold Commences RC Drilling at Katanning

THE DRILL SERGEANT: Ausgold Limited (ASX: AUC) is spending its recently-raised $2.4 million on an exploration drilling program at the company’s 100 per cent-owned Katanning gold project in Western Australia.

Auroch Minerals Historic Review Highlights Nickel Potential

THE DRILL SERGEANT: Auroch Minerals (ASX: AOU) completed a review of historic data that it claims has confirmed thick high-grade massive nickel sulphide mineralisation at the company’s recently-acquired Leinster project in Western Australia.

Marenica Energy Widens Koppies 2 Palaeochannel

THE DRILL SERGEANT: Marenica Energy (ASX: MEY) has completed a Phase 3 reverse circulation (RC) drilling program to extend the width of the palaeochannel on the company’s Koppies tenement in Namibia, Africa.

Renascor Resources to Raise $1.4 Million to Advance Siviour Development

THE BOURSE WHISPERER: Renascor Resources (ASX: RNU) has received firm commitments to raise $1.4 million to fund the advancement of the company’s Siviour graphite project near the coast of South Australia’s Eyre Peninsula.

Breaker Resources Launches Bombora Drill Campaign

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THE DRILL SERGEANT: Breaker Resources (ASX: BRB) has commenced a major reverse circulation (RC) and diamond drilling program designed to grow the one million-ounce Bombora Resource within the company’s Lake Roe gold project, east of Kalgoorlie in Western Australia.

Breaker Resources indicated the main focus of the drilling will be on extensions and discovery outside the Resource envelope, both along strike and at depth.

Drilling is expected to continue throughout 2020, using at least three drill rigs.

Diamond drilling at Bombora South has already commenced to extend the 3.2km-long gold system to the south.

The initial objective of the drilling is to discover and extend the main mineralised structures (faults) controlling the gold mineralisation observed at Bombora, prior to follow-up resource drilling.

RC and diamond drilling to be carried out at Claypan will test a 2.5km by 500m gold anomaly identified by recent aircore drilling 1.3km southeast of Bombora.

Breaker explained the Claypan anomaly is partially coincident with a newly identified, Bombora Sill-like quartz dolerite and has a geochemical signature comparable with that associated with the Bombora and Crescent primary discoveries.

As with Bombora South, the initial objective is discovery and to pin down the main structures controlling the mineralisation to guide further drilling.

The diamond and RC drill rigs will continue through to just before Christmas and then resume early in the New Year.

A third diamond drill rig will start early in the New Year to commence targeting the down-plunge extensions of the Tura, Daisy and Mindil lodes below the current Resource where reconaissance drilling has previously identified high-grade gold mineralisation.

The initial hole in this area will be a deep (~1,200m) diamond drill hole at the southern end of the Bombora deposit and will be conducted as part of a Department of Mines, Industry Regulation and Safety’s Exploration Incentive Scheme (EIS) co-funded drilling program.

“The drilling campaign was designed to accelerate the unlocking of the immense exploration potential at Lake Roe,” Breaker Resources executive chairman Tom Sanders said in the company’s announcement to the Australian Securities Exchange.

“Our team has done a great job unravelling the geology and believes there is huge scope to grow the one million ounce Resource based on a good understanding of the geology after 225,000 metres of drilling and detailed modelling.

“We are now applying this understanding outside the 3.2 kilometre Resource area to the rest of the 8.5 kilometre mineralisation system.

“The targets are a mix of prospects, some of which have already yielded strong reconnaissance intersections but which are poorly understood and inadequately drilled due to the early focus on Bombora (Bombora South, Bombora Deeps, Crescent).

“Other targets have compelling geochemistry with significant aircore drilling intersections that elevate the probability of fresh discovery (Claypan, Claypan North).

“I think this will translate into cost-effective extensional ounces and further discovery but it is now time to let the drill bit do the talking.

“The business case for our strategy is sound and simple.

“Our discovery cost at Bombora is approximately $18 per ounce…and the market is valuing resource ounces like ours at around $65 per ounce, rising to over $250 per ounce in many cases as projects develop.

“We believe drilling to expand the resource base is likely to add significant value and expand our development options.”

 

Email: breaker@breakerresources.com.au

Web: www.breakerresources.com.au

 

Ausgold Commences RC Drilling at Katanning

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THE DRILL SERGEANT: Ausgold Limited (ASX: AUC) is spending its recently-raised $2.4 million on an exploration drilling program at the company’s 100 per cent-owned Katanning gold project in Western Australia.

Ausgold has kicked off the program with the drilling of 20 Reverse Circulation (RC) holes for 2,500m, which it expects to be completed during December.

The new drilling within the Central Zone will target extensions to recently identified high-grade gold mineralisation intercepted at the Jinkas South and Jackson areas.

High-grade gold mineralisation was intersected at Jinkas South by previous drilling beyond the limits of the current Resource.

The Jackson area is located at the north western portion of the Central Zone and has also ceded high-grade intercepts in earlier campaigns.

“Following the recent announcement of the receipt of binding commitments for $2.4 million to institutional and sophisticated investors, Ausgold is immediately commencing an RC drill program which targets high-grade mineralisation within the Central Zone,” Ausgold managing director Matthew Greentree said in the company’s announcement to the Australian Securities Exchange.

“This round of drilling will test new geological concepts which aim to extend high-grade mineralisation with the potential to add high-grade ounces to the current the 1.2 million ounce gold Resource at Katanning.

“The results of this initial drill program will be used to prioritise targets for a larger drill program planned in 2020.

“In addition to these near Resource targets, Ausgold is targeting mineralisation in nearby identified areas such as the Burong and Cleggs Bend prospects, which are located within five kilometres of the main Resource.

“This suggests there is potential for significant further gold Resources to be discovered.

“We’re looking forward to updating the market in the coming weeks with the results.”

 

Email: info@ausgoldlimited.com

Web: www.ausgoldlimited.com

 

Auroch Minerals Historic Review Highlights Nickel Potential

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THE DRILL SERGEANT: Auroch Minerals (ASX: AOU) completed a review of historic data that it claims has confirmed thick high-grade massive nickel sulphide mineralisation at the company’s recently-acquired Leinster project in Western Australia.

Auroch Minerals said the review involved recalculation of important intersections for all historic drill-holes undertaken at the Horn prospect, several of which demonstrated thick zones of high-grade nickel sulphide mineralisation, including:

08BWDD0015
14.66 metres at 2.19 per cent nickel, 0.48 per cent copper and 0.12 per cent cobalt from 132.6m down-hole;

08BWDD0039
7m at 2.58 per cent nickel, 0.63 per cent copper and 0.14 per cent cobalt from 158.6m down-hole; and

08BWDD0074
10.8m at 2.21 per cent nickel, 0.53 per cent copper and 0.12 per cent cobalt from 143.97m down-hole.

Reviewing the modelled mineralisation in long-section at the Horn prospect demonstrated that thick high-grade nickel mineralisation occurs at relatively-shallow depths, and remains open along strike and down plunge.

Auroch had reprocessing of the high-resolution aeromagnetic data at the Leinster project completed by Southern Geoscience Consultants (SGC) that showed a strong correlation between the known nickel sulphide mineralisation and magnetic highs.

The company now has interpretation and modelling of the reprocessed data underway.

SGC has also commenced reprocessing and modelling of the large amount of down-hole electromagnetic (DHEM) data and surface moving-loop EM (MLEM) data at both the Horn and Valdez target areas of the Leinster project, in order to confirm the conductivity and location of the modelled EM plates that will be the focus of an RC drilling program to be carried out early in 2020.

“Our review of the large historical geological database from the Leinster project has demonstrated thick zones of massive nickel sulphide mineralisation within prospective ultramafic lithologies,” Auroch Minerals managing director Aidan Platel said in the company’s announcement to the Australian Securities Exchange.

“Reprocessing the detailed aeromagnetic data has provided insight into the known nickel sulphide mineralisation and hence confirmed the importance of aeromagnetic data when targeting komatiitic nickel sulphide mineralisation.

“We look forward to receiving the reprocessed EM data from SGC which will form the basis of our targeting for the RC drilling program planned for early 2020.

“The known mineralisation at the Horn provides an excellent base to build on, whilst the strong EM conductor in prospective lithologies at Valdez provides an excellent target for a potential new nickel sulphide discovery in close proximity to existing processing infrastructure.”

 

Email: admin@aurochminerals.com

Web: www.aurochminerals.com