Red 5 Exercises Acquisition Option Over Cables and Mission Deposits

THE BOURSE WHISPERER: Red 5 Limited (ASX: RED) has exercised an option to complete the acquisition of the Cables and Mission gold deposits in Western Australia.

Red 5 described the acquisition as strategic, given that the “bolt-on” deposits are located around ten kilometres north of the company’s Darlot gold mine.

Red 5 explained the acquisition forms part of a multi-strand strategy to expand the Darlot Mineral Resource base, which includes ongoing near-mine and regional exploration as well as consolidation of strategic opportunities.

Before completing the acquisition of the Cables and Mission deposits, Red 5 carried out due diligence and confirmatory Reverse Circulation (RC) drilling to validate historical drilling and determine the potential of the Cables and Mission deposits.

Confirmatory Reverse Circulation drilling by Red 5 confirmed the mineralisation with best intercepts of:

20MIRC0001
7 metres at 5.7 grams per tonne gold;

20MIRC0002
4m at 14.7g/t gold; and

20CBRC0003
5m at 3.7g/t gold.

The Cables and Mission transaction follows Red 5’s recently announced acquisition of the Great Western gold deposit.

“The acquisition of the Cables and Mission deposits represents another strategic low-risk opportunity to continue growing the company’s Resource base in the area surrounding the Darlot gold processing plant,” Red 5 managing director Mark Williams said in the company’s annooucnement to the Australian Securities Exchange.

“The acquisition includes a JORC 2004 Inferred Resource which we plan to upgrade to JORC 2012 compliance, while at the same time commencing exploration activities aimed at testing the broader potential of the tenements, which are located in close proximity to our existing Darlot operations.

“Significantly, the rock units hosting the Cables and Mission deposits are similar to those that host the Centenary orebody, which has been mined for many years from underground at Darlot.

“The Cables and Missions transaction follows the recent acquisition of the Great Western gold deposit, both of which are planned to provide additional sources of ore feed for the Darlot processing plant in the coming years.”

 

Email: info@red5limited.com

Web: www.red5limited.com

 

Middle Island Resources Raises $4M to Continue Advancement of Sandstone

THE BOURSE WHISPERER: Middle Island Resources (ASX: MDI) has received firm commitments to raise $4 million to conduct the next phase of exploration and resource drilling at the company’s 100 per cent- owned Sandstone gold project in Western Australia.

The raising comes on the back of Middle Island Resources’ 2020 Phase 1 RC drilling program, which identified four new gold deposits all located within 2.5 kilometres of the company’s 100 per cent-owned 600,000 tonnes per annum Sandstone gold processing plant.

McLaren: including drilling results of 4m at 90.6 grams per tonne gold and 8m at 3.35g/t gold.

McIntyre: including drilling results of 24m at 1.66g/t gold, 23m at 1.4g/t gold, 11m at 1.39g/t gold and 18m at 1.35g/t gold.

Old Town Well: including drilling results of 20m at 0.87g/t gold, 8m at 2.17g/t gold and 8m at 1.45g/t gold.

Plum Pudding: including drilling results of 11m at 22.5g/t gold, 17m at 8.16g/t gold, 12m at 3.52g/t gold, 8m at 6.98g/t gold, and new intercepts of 3m at 3.72g/t gold, 10m at 3.08g/t gold and 2m at 4.98g/t gold.

“Given the extraordinary success of the 2020 drilling campaign to date, proceeds of the equity raising will allow the company to embark on a, necessarily substantially expanded, Phase 2 drilling campaign of at least 13,000 metres of RC and diamond drilling to infill and extend new, supplementary deposits identified at the Sandstone gold project and complete the project’s pre-feasibility study,” Middle Island Resources managing director Rick Yeates said in the company’s announcement to the Australian Securities Exchange.

Middle Island indicated the he proceeds from the placement and existing cash reserves will be used to undertake the next phase of exploration and resource drilling at the Sandstone gold project and feasibility study.

 

Email: info@middleisland.com.au

Web: www.middleisland.com.au

 

RareX Retains 100% of Orange East Gold Project

THE BOURSE WHISPERER: RareX Limited (ASX: REE) has retained 100 per cent-ownership of the Orange East gold project from Alkane Resources.

The Orange East gold project is located near the advanced McPhillamys gold project of Regis Resources in New South Wales.

RareX entered into a farm-out agreement with Alkane in 2015 after McPhillamys was discovered by the Newmont-Alkane JV.

Under the agreement, Alkane had the right to earn up to a 60 per cent interest in the tenement, for which Alkane was in the process of negotiating a final access agreement with land-holders when it discovered the Boda copper-gold deposit and decided to focus its attention there.

Subsequently, Alkane has now returned the tenement to RareX as required under the terms of the farm-out agreement, meaning that RareX retains 100 per cent-ownership.

“The Orange East gold project area has strong geological and geochemical similarities to the McPhillamys project, being located just 15km north-northwest along strike,” RareX said in its ASX announcement.

“The project is located on the eastern margin of the Molong Volcanic Belt with much of the tenement hosting the Mullions Range Imbricate Thrust Zone (MRIZ).

“The regionally significant Godolphin-Copperhannia Thrust Fault zone (GCFZ) traverses through the centre of the tenement and host dozens of historical copper-gold workings.

“An initial geological review of the Orange East gold project has identified several advanced prospects, with the Gunnarbee prospect in particular showing particularly striking similarities to the McPhillamys deposit.”

 

Web: www.rarex.com.au

 

Apollo Consolidated to Divest Northern Cote d’Ivoire Interests

THE BOURSE WHISPERER: Apollo Consolidated (ASX: AOP) is soon to be $7 million richer having agreed conditional terms for the proposed sale of its 20 per cent interests in Exore Resources’ (ASX: ERX) Bagoe and Liberty projects in northern Cote d’Ivoire to Ibaera Capital Fund LP.

Under the terms of the proposed sale, Apollo will receive consideration of US$4.5 million ($7M at the current exchange rate) in cash upon completion of the transaction.

The sale is subject to Exore not exercising its pre-emptive rights under the terms of the existing Joint Venture agreement or waiving those rights during a 30-day pre-emption period.

If this condition is satisfied, completion will occur within 15 business days after in-country approvals have been received and the relevant registration process has taken place.

“We consider this an attractive opportunity to realise the somewhat hidden value of this asset,” Apollo Consolidated managing director Nick Castleden said in the company’s announcement to the Australian Securities Exchange.

“Our previous decisions to focus on building value at Rebecca have been supported by strong subsequent results, and in our view this represents an attractive premium relative to the value of the interests inferred from recent ERX share price trading values.

“We welcome the additional non-dilutionary funding that, on completion, would bring our cash position to well over $20 million.

“Importantly we still retain the valuable 1.2 per cent royalty over the advanced Seguela project in central Cote d’Ivoire, which is the subject of a recently announced Preliminary Economic Assessment on its one million ounces Mineral Resource by owner and operator Roxgold Inc (TSX: ROXG).”

 

Email: info@apolloconsolidated.com.au

Web: www.apolloconsolidated.com.au

 

Auteco Minerals Raises Dosh to Drill Pickle Crow

THE BOURSE WHISPERER: Auteco Minerals (ASX: AUT) completed a $5.1 million raising, enabling it to commence exploration at the company’s Pickle Crow gold project in the Uchi sub-province of Ontario, Canada.

Auteco Minerals said the placement of approximately 1456 million shares at 3.5 cents per share was underpinned by new leading domestic and international institutions and Auteco’s existing institutional and sophisticated shareholders.

The company indicated the proceeds of the placement will fund a maiden drilling campaign at Pickle Crow that is intended to include 5,000m of drilling to test high potential immediate walk up targets, regionally and in the mine surrounds.

Auteco identified multiple shallow high-grade gold targets outside of the core mine trend during a data review, which are to be a focus of the campaign.

Auteco said it expects to complete a JORC complaint Resource in Q2 2020 which will incorporate the extensive geological review of the Pickle Crow gold project undertaken by Auteco, focusing on the high-grade and underground mineable resource areas.

“We are very pleased to announce the successful commitments for a very well supported placement to raise $5.1 million,” Auteco Minerals executive chairman Ray Shorrocks said in the company’s announcement to the Australian Securities Exchange.

“The strong interest shown by leading institutional investors is a huge endorsement of the Pickle Crow gold project and the current gold market environment.

“The proceeds raised enable us to begin our maiden drilling program at Pickle Crow, where we will initially be focusing on high-grade gold targets.

“We look forward to releasing these assay results as received.

“In addition, we are expecting to release a JORC 2012 compliant resource during this calendar quarter.”

 

Email: info@autecominerals.com.au

Web: www.autecominerals.com.au

 

De Grey Mining Packs in $31.2M Raising

THE BOURSE WHISPERER: De Grey Mining (ASX: DEG) showed everybody how it’s done by announcing a raising of $31.2 million.

De Grey Mining made the announcement on the back of firm commitments received for the placement of approximately 111.4 million shares at a price of 28 cents per share to sophisticated, professional and other exempt investor clients of Bell Potter Securities Limited and Argonaut Securities Pty Ltd.

The company indicated it intends using the funds raised to continue exploration activities across the Mallina gold project, with a priority of work associated with determining the scale of the recently-discovered Hemi deposit, as well as for ongoing administration and corporate costs.

De Grey currently has two diamond rigs and one RC rig in operation at Hemi.

The new funds will allow resource drilling to continue at Hemi and also the recommencement of regional drilling programs targeting the other four intrusion targets at Scooby, Antwerp, Alectroenas and Shaggy.

Since announcing the Hemi discovery on 6 February this year, the company has been flooded with offers to assist in a capital raising or direct investment,” De Grey Mining executive chairman Simon Lill said in the company’s announcement to the Australian Securities Exchange.

“We recognised the opportunity to secure further funding and to build a strong register to assist with funding requirements into the future through the introduction of global blue chip gold only and resource funds.

“We chose to proceed with the Capital Raising once we were comfortable with the level of interest and are now extremely pleased to advise that many of the world’s top funds in this sector have joined our register.

“This is an extremely strong validation as to the quality of De Grey’s Hemi discovery and the Mallina gold project and to that end I would like to congratulate and thank the technical and support staff who have been part of making this possible.

“The recent Hemi discovery also highlights the outstanding exploration potential De Grey has across our tenements, with the market also now giving recognition to our existing 2.2 million ounces of resources.

“We thank the brokers, Bell Potter and Argonaut, for their efforts with this important raising, as well the ongoing support of our major shareholder, DGO Gold Limited.

“De Grey is now well funded to continue its exploration programs into the foreseeable future.”

 

Email: admin@degreymining.com.au

Web: www.degreymining.com.au

 

Galan Lithium Makes Strategic Argentinian Land Acquisition

THE BOURSE WHISPERER: Galan Lithium (ASX: GLN) increased its land tenure at the company’s Hombre Muerto West (HMW) project in Catamarca, Argentina.

Galan Lithium has acquired a 100 per cent interest in the Deceo III tenement, located at the Hombre Muerto salar, under a new re-negotiated agreement, under which it will pay US$30,000 to the vendors.

“This strategic 100 per cent project acquisition by Galan evidences our intentions to consolidate a significant continuous ground holding (currently ~14km) at HMW,” Galan Lithium managing director JP Vargas de la Vega said in the company’s announcement to the Australian Securities Exchange.

“Moreover, we are of the conviction that Candelas and HMW could become low-cost, profitable lithium producing projects, even at today’s lithium prices.

“Both of these 100 per cent-owned Galan projects have a solid resource base of high-grade lithium and low impurity levels in the best-known lithium producing region in Argentina.

“We are confident Deceo III will increase our lithium inventory given our previous work and the short distance to the drill hole Galan completed at Pata Pila.

‘Despite the constrains of the current COVID-19 pandemic, we continue to advance all the conceptual models of our Scoping and Pre-Feasibility Studies.

“We have commenced preparations to undertake additional laboratory test work to process our brine into battery grade lithium carbonate once the restrictions are lifted in Argentina and Chile.”

 

Web: www.galanlithium.com.au

 

Corazon Mining Moves to 100% Ownership of Lynn Lake Area

THE BOURSE WHISPERER: Corazon Mining (ASX: CZN) has acquired 100 per cent of the Lynn Lake nickel copper cobalt sulphide project area in Canada, having exercised an option to do so.

Corazon Mining had already consolidated the entire Lynn Lake nickel-sulphide mining centre, historically one of Canada’s largest nickel producing operations, under its sole ownership, which includes ground 100 per cent owned by Corazon following its acquisition of the Victory nickel-copper project, and the Dunlop project area, where Corazon has the rights to acquire 100 per cent ownership.

Corazon has now satisfied its obligations for settlement to exercise its option to acquire the Dunlop project area, which covers a large portion of the wider Lynn Lake Project.

Corazon considers the Dunlop project area to represent a critical component of the wider Lynn Lake project that covers the high-grade EL Mine and the Fraser Lake Complex (FLC) intrusion, located five kilometres south of the Lynn Lake mining centre and currently the subject of a targeted drilling program.

“Boasting large JORC compliant resources and beneficial infrastructure, Lynn Lake presents Corazon with a major development opportunity – one which is becoming increasingly prospective as a result of recent increases in the value of both nickel and cobalt metals,” Corazon Mining said in its ASX announcement.

“Both metals are forecast to have strong demand outlooks associated with their core use in the emerging global electric vehicle (EV) industry.”

 

Email: info@corazon.com.au

Web: www.corazon.com.au

 

Blackstone Minerals Acquires Ta Khoa Nickel-PGE Project

THE BOURSE WHISPERER: Blackstone Minerals (ASX: BSX) announced it has exercised an option to acquire a 90 per cent interest in the Ta Khoa nickel-PGE project in northern Vietnam.

Blackstone Minerals executed the binding option agreement to purchase AMR Nickel Limited’s 90 per cent interest in the project and will subsequently issue 8.6 million shares to Ta Khoa Mining Limited as per the terms of a binding term sheet agreement of $1 million of BSX shares.

Exercising the option to acquire a 90 per cent interest in the Ta Khoa project means Blackstone has now completed a condition of the recently announced binding share purchase agreement with EcoPro.

“We are pleased to announce the acquisition of the Ta Khoa nickel-PGE project and welcome Steve Ennor and all of the team in Vietnam to the Blackstone group, we now look forward to the future of the Ta Khoa nickel-PGE project with our new partner EcoPro,” Blackstone Minerals managing director Scott Williamson said in the company’s announcement to the Australian Securities Exchange.

Blackstone indicated it now aims to deliver a maiden resource in Q3, focused initially on the disseminated sulphide (DSS) at Ban Phuc as it continues to investigate the potential to restart the existing Ban Phuc concentrator through focused exploration on both massive sulphide veins (MSV) and DSS deposits.

Blackstone has commenced a scoping study on the downstream processing facility at Ta Khoa that is anticipated to be announced in Q3, providing details for Joint Venture partners to formalise the next stage of investment.

Blackstone Minerals has commenced metallurgical testing on the Ban Phuc DSS deposit with an aim to develop a flow sheet for a product suitable for the lithium-ion battery industry and intends to investigate the potential to develop downstream processing infrastructure in Vietnam to produce a downstream nickel and cobalt product to supply Asia’s growing lithium-ion battery industry.

 

Email: admin@blackstoneminerals.com.au

Web: www.blackstoneminerals.com.au

 

Blackstone Minerals Welcomes $6.8M Sth Korean Investment

THE BOURSE WHISPERER: Blackstone Minerals (ASX: BSX) bounced out of a self-imposed trading halt to announce $6.8 million investment in the company by South Korea-based battery and environment material company, EcoProa.

Blackstone Minerals has signed a binding share purchase agreement with EcoPro Co. Limited, who’s subsidiary company, EcoPro BM, is the world’s second largest and Korea’s largest nickel-rich cathode materials manufacturer.

The placement of 40 million fully paid ordinary shares at an issue price of $0.17 per share represents a healthy 62 per cent premium to Blackstone Minerals’ last traded price before it went into self-exile.

Blackstone Minerals said the binding agreement outlines an alliance structure under which it will work in partnership with EcoPro – by way of an additional investment via a Joint Venture Agreement – to develop a downstream processing facility in association with Blackstone Minerals’ Ta Khoa nickel-PGE project in northern Vietnam.

“We are pleased to announce this investment of $6.8 million at a premium which strengthens our alliance with EcoPro,” Blackstone Minerals managing director Scott Williamson said in the company’s announcement to the Australian Securities Exchange.

“Our Ta Khoa nickel-PGE project has the potential to deliver the critical raw materials required for EcoPro’s cathode manufacturing to meet the demand from the imminent electric vehicle (EV) revolution.

“We look forward to working towards the next stage of our partnership to develop the downstream processing facility in northern Vietnam.”

Blackstone Minerals has signalled its intent to deliver a maiden resource in Q3, focused initially on the disseminated sulphide (DSS) at Ban Phuc as it continues to investigate the potential to restart the existing Ban Phuc concentrator through focused exploration on both massive sulphide veins (MSV) and DSS deposits.

Blackstone has already commenced a scoping study on the downstream processing facility at Ta Khoa, which is anticipated to also to be announced in Q3.

This is expected to provide details for JV partners to formalise the next stage of investment.

Metallurgical testing is also underway on the Ban Phuc DSS deposit with an aim to develop a flow sheet for a product suitable for the lithium-ion battery industry.

Blackstone is also investigating the potential to develop downstream processing infrastructure in Vietnam to produce a downstream nickel and cobalt product to supply Asia’s growing lithium-ion battery industry.

The company’s purchase of the Ta Khoa nickel-PGE project came with an existing modern nickel mine that had been placed under care and maintenance since 2016 due to falling nickel prices.

Existing infrastructure includes an internationally designed 450,000 tonnes per annum processing plant.

Previous project owners focused mining and exploration efforts primarily on the MSV at Ban Phuc, where Blackstone plans to explore both MSV and DSS targets throughout the project, initially within a five kilometres radius of the existing processing facility.

EcoPro is a South Korea-based company engaged in the battery and environment material sector, principally in the manufacture and sale of secondary battery materials.

The company manufactures cathode active materials and precursors used for secondary batteries and provides environmental materials including sorbents and catalysts, chemical air filters, and greenhouse gas reduction devices, among others.

 

Email: admin@blackstoneminerals.com.au

Web: www.blackstoneminerals.com.au