Red 5 Completes Great Western Acquisition

THE BOURSE WHISPERER: Red 5 Limited (ASX: RED), through its wholly-owned subsidiary, Darlot Mining Company Pty Ltd, has exercised an Option Agreement to acquire a 100 per cent-interest in Mining Lease M37/54.

The Mining Lease includes the Great Western gold deposit.

Red 5 has executed a Sale and Purchase Agreement (SPA) with the tenement holder, Terrain Minerals (ASX: TMX).

The company believes the acquisition supports its stated multi-strand strategy to expand the Darlot Mineral Resource base, which includes regional ‘bolt-on’ acquisitions in addition to aggressive exploration being undertaken as part of its Darlot Mining Hub Strategy.

The Great Western gold deposit is located 80 kilometres trucking distance south of Red 5’s Darlot processing plant, which is currently operating at one million tonnes per annum.

Red 5 considers the acquisition of the Great Western gold deposit and surrounding Mining Lease represented a high-quality strategic addition to its Mineral Resource base within trucking distance of the Darlot mill.

Terrain Minerals had previously completed a JORC 2012-compliant Mineral Resource estimate for the Great Western deposit totalling 709,000 tonnes at an average grade of 2.7 grasm per tonne gold for 62,000 ounces of contained gold.

“Having completed the due diligence drilling, we believe the Great Western deposit represents a highly prospective addition to our Darlot Mining Hub Strategy, with an existing 62,000 ounce Mineral Resource and exploration upside, particularly at depth,” Red 5 managing director Mark Williams said in the company’s announcement to the Australian Securities Exchange.

“With an acquisition cost of $40 per Resource ounce, it boosts our Mineral Resource base within economic trucking distance of the Darlot mill.

“We will continue to seek further such opportunities – both through our exploration programs as well as through strategic acquisitions – with the aim of establishing five to ten years of Ore Reserves either at or within trucking distance of the Darlot mill as part of the company’s Darlot Mining Hub Strategy.”





Neometals Completes Lithium Battery Recycling Pilot Testing

THE BOURSE WHISPERER: Neometals (ASX: NMT) declared the completion of pilot plant test‐work on the company’s proprietary lithium‐ion battery (LIB) recycling technology a success.

Neometals said the pilot testing validated earlier bench scale assumptions with high recoveries of the targeted suite of cathode active elements and refined them into high purity chemicals for re‐use in the battery supply chain.

Neometals has developed a sustainable process for recovering nickel, cobalt and other valuable materials from spent and scrap LIBs that might otherwise be disposed of in land fill or processed in high emission pyrometallurgical recovery circuits.

The technology physically separates and recovers battery steel casings, aluminium and copper foil, plastic separators, and graphite from high‐value battery cathode materials including nickel, cobalt, manganese and lithium.

The company considers the successful completion of the pilot work as an important commercial milestone for the recycling technology.

Objectives were met and surpassed, no fatal technical flaws arose, and the company now has the data to commence feasibility‐level studies and proposed demonstration trials in Europe.

With the Pilot greatly reducing the technical risk of its proprietary process, Neometals said it can proceed confidently towards the proposed commercialisation JV with SMS Group and advance feed supply and product offtake activities.

“We are delighted to have completed the lithium battery recycling Pilot with such encouraging results,” Neometals managing director Chris Reed said in the company’s announcement to the Australian Securities Exchange.

“We remain convinced that electrification of transport is an unstoppable trend, which by default will generate ever increasing volumes of production scrap and end‐of‐life batteries to responsibly manage.

“We have now proven that we have a solution to meet the lithium‐ion battery supply chains need for a safe, environmentally friendly recycling process which can reduce reliance on imported mineral feedstocks and satisfy increasing regulatory and stakeholder demands for sustainable and ethical raw material supply chains.

“We are looking forward with our partner to commercialise this asset. SMS’s skill set and global presence will further enhance value and lower risk as we prepare to showcase our offering to the market in a Commercial Demonstration Plant in Europe, the region with the fastest growing battery cell production capacity.”

Neometals indicated that SMS Group will complete its review of the final metallurgical test work report and Metsim mass‐energy balance.

The review constitutes the final technical diligence requirements to enable an SMS decision to enter a project commercialisation JV by the end of April 2020.

Both parties are negotiating the JV legal agreements in parallel with Commercial Demonstration Plant design and procurement work packages.

The Pilot learnings have highlighted scope to further improve outcomes in optimisation test‐work that has commenced and will precede the Demonstration Trial.





Red 5 Completes $125M Raising to De-Risk KOTH

THE BOURSE WHISPERER: Red 5 Limited (ASX: RED) bucked recent trends by announcing a $125 million share placement to sophisticated and professional investors.

Red 5 made the placement at a price of 18 cents per share, saying that it would underpin the company’s next pivotal phase of its growth pathway to becoming a multi-asset, mid-tier Australian gold producer.

Red 5 declared the Placement de-risks the funding requirements to develop the proposed integrated bulk open pit and underground mining and processing operation for the King Of The Hills (KOTH) gold project in Western Australia, where a Final Feasibility Study is due for completion in the September 2020 Quarter.

“We are delighted with the strong support received from existing and new investors, particularly given the current challenging equity market environment,” Red 5 managing director Mark Williams said in the company’s announcement to the Australian Securities Exchange.

“In particular, I would like to thank our existing shareholders for their ongoing support and welcome a number of new institutional investors to our register.

“This strong outcome reflects the market’s confidence in the growth pathway we have mapped out, which will see Red 5 evolve into a multi-asset, mid-tier gold producer over the next two years.

“The capital raising significantly de-risks our funding requirements at King of the Hills, which is now well established as one of Australia’s premier emerging gold projects.”



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Cardinal Resources Granted Namdini Expansion

THE BOURSE WHISPERER: Cardinal Resources (ASX: CDV) received approval to expand the current Mining Licence for the company’s Namdini gold project in Ghana.

Cardinal Resources’ subsidiary Cardinal Namdini Mining Limited was granted a Large‐Scale Mining License covering the Namdini Mining License by the Minister for Lands and Natural Resources under the Ghanaian Minerals and Mining Act 2006 (Act 703) in 2017.

The Large‐Scale Mining Licence originally covered 19 square kilometres in the Dakoto area of the Talensi District in the Upper East Region of Ghana that has now been expanded to 63sqkm with the grant covering an initial period of 15 years commencing in 2020 and is renewable.

Cardinal Resources said the expanded Large‐Scale Mining Licence allows it to optimise and de‐risk mine and infrastructure design and optimise financial outcomes as the company continues to progress the FEED program.

“It is most pleasing to have the Minister for Lands and Natural Resources and the Minerals Commission of Ghana support our Mining Licence area expansion,” Cardinal Resources chief executive officer / managing director Archie Koimtsidis said in the company’s announcement to the Australian Securities Exchange.

“The expansion aligns with the company’s plan to not only significantly optimise the location of key infrastructure such as tailings storage facilities, stockpiles and waste dumps but also to further explore financial benefits during the Front‐End Engineering and Design (FEED) of the Namdini project.

“Further, it allows the company to expand its exploration activities immediately south of Namdini which has great potential along the southern extension of the Namdini shear.”

Cardinal is preparing development of the Namdini gold project, subject to concluding project development financing.

Once developed, the company expects the Namdini gold project to produce over 360,000 ounces per annum for the first two years of operation and over the life of mine is expected to produce an average of 287,000 ounces per annum.

A Definitive Feasibility Study completed in late 2019, indicated encouraging economics, including a post‐tax NPV of over US$958 million which is capable of generating over US$1.55 billion in undiscounted project cashflow (assuming a gold price of US$1,550/oz).




Bellevue Gold Receives Commitments for $26.5 million Raising

THE BOURSE WHISPERER: Bellevue Gold (ASX: BGL) belied current market sentiment with the announcement of a $26.5 million share placement.

Bellevue Gold signalled the placement would enable it to embark on the next phase of its growth strategy at the company’s Bellevue gold project in Western Australia.

The raising was priced at 30 cents per share and was underpinned by leading Australian and overseas institutions, including existing institutional and sophisticated shareholders.

Bellevue Gold indicated the proceeds of the raising will fund further programs of infill and Resource extension drilling at the Bellevue gold project, economic studies in preparation for development and provide general working capital.

The company recently completed the initial infill drilling at Bellevue and has already given notice of being on track to publish its maiden Indicated Resource in the coming quarter.

Bellevue’s Inferred Resource currently stands at 6.1 million tonnes at 11.3 grams per tonne gold for 2.2 million ounces of gold.

The company’s next rounds of infill drilling will be aimed at achieving ongoing growth in the forthcoming Indicated Resource and growing the overall inventory through step-out drilling and exploration drilling at the two high promising conductors identified at the project’s Deacon lode, among other priority targets.

“To complete a raising such as this in any environment is an excellent achievement but to do it in the current market circumstances is exceptional,” Bellevue Gold managing director Steve Parsons said in the company’s announcement to the Australian Securities Exchange.

“Under the current budget, we are funded through to mid calendar year 2021.
“The strong support shown by leading institutional investors is a huge endorsement of the Bellevue project and its growth potential.

“The proceeds ensure we have ample cash to continue unlocking the value of this project through infill and resource growth drilling while also undertaking the economic and technical studies which should pave the way for development and production.”





Encounter Resources Welcomes IGO in $15M Yeneena Earn-In Agreement

THE BOURSE WHISPERER: Encounter Resources (ASX: ENR) informed the market that Independence Group (ASX: IGO) has elected to enter an earn-in and Joint Venture agreement.

Encounter Resources explained the deal will result in IGO agreeing to sole fund up to $15 million in exploration expenditure at the Yeneena copper-cobalt project in Western Australia to earn a 70 per cent interest.

The Yeneena project comprises a major land position covering more than 1,400 square kilometres in the highly-prospective Paterson Province of WA where Encounter has been targeting copper-cobalt mineralisation.

Exploration activity in the Paterson Province has been on the rise since Rio Tinto (ASX: RIO) declared its Winu copper-gold discovery and Newcrest Mining (ASX: NCM) and Greatland Gold plc have been operating their Havieron gold-copper project.

Encounter and IOG were busy on the ground during 2019, applying advanced geophysical and geochemical exploration methods at Yeneena that defined a suite of new, large scale targets.

The JV anticipates these exploration activities to resume at Yeneena in April/May that is expected to include additional ground geophysics and further application of geochemistry, followed by aircore, RC and/or diamond drilling.

“The Paterson Province is a highly fertile district with enormous potential for new copper-cobalt discoveries under thin sand cover,” Encounter Resources managing director Will Robinson said in the company’s announcement to the Australian Securities Exchange.

“This partnership with IGO is just what Yeneena needed.

“Deploying a suite of new exploration methodologies in 2019 has provided a whole new perspective on the mineral potential at Yeneena.

“We look forward to continuing this exciting partnership with IGO to refine and test a number of large-scale copper-cobalt targets at Yeneena in 2020.”





Auroch Minerals Raises Funds for High-Priority Exploration

THE BOURSE WHISPERER: Auroch Minerals (ASX: AOU) has received commitments to raise $1.06 million to fund high-grade nickel sulphide exploration activities at the company’s Saints and Leister nickel projects in Western Australia.

Auroch Minerals will issue 19.3 million fully paid ordinary shares at 5.5 cents per share.

Placement shares will attract a 1 for 2 free attaching option with an exercise price of 10 cents and expiry date of 30 November 2021.

Both the Saints and Leister nickel projects contain existing high-grade nickel sulphide resources as well as multiple advanced drill-ready targets.

The company believes they have strong potential to increase the resources with drilling programs funded by this placement.

“We are extremely pleased with the show of support from professional, sophisticated and other investors,” Auroch Minerals managing director Aidan Platel said in the company’s announcement to the Australian Securities Exchange.

“We welcome our new investors to the register, and look forward to progressing our aggressive exploration programs at our Saints and Leister Nickel projects and creating value for our shareholders.”





Antipa Minerals Inks $60M Farm-In with Newcrest

THE BOURSE WHISPERER: Antipa Minerals (ASX: AZY) has struck a $60 million farm-in agreement and associated exploration Joint Venture agreement with Newcrest Operations Limited.

The deal covers the southern portion of the company’s 100 per cent-owned ground in the Paterson Province of Western Australia that is to be now known as the Wilki project.

Newcrest has also entered into a subscription agreement with Antipa, under which Newcrest will acquire a 9.9 per cent shareholding in Antipa through a placement of new shares at 1.7 cents per share to raise $3.9 million and have the right but not the obligation to appoint a director to Antipa’s board.

Key terms of the deal include:

An initial $6 million minimum exploration expenditure within two years to be managed by Antipa;

A further $10 million exploration expenditure within five years of commencement to earn a 51 per cent JV interest; and

A further $44 million exploration expenditure within eight years of commencement to earn a 75 per cent JV interest.

“We are delighted to welcome Newcrest as a shareholder of Antipa and to be partnering with them to progress the exploration of our Wilki project in the world-class Paterson Province of Western Australia,” Antipa Minerals executive chairman Stephen Power said in the company’s announcement to the Australian Securities Exchange.

“This transaction demonstrates Newcrest’s commitment to the region and its strong belief in the prospectivity of the Wilki project, which is strategically located surrounding its long-running Telfer gold-copper operation and ore processing facility.

“The agreement with Newcrest is designed to ensure a robust exploration program will be undertaken across the Wilki project over the coming years, including the drill testing of a number of highly prospective targets.

“Furthermore, the Share Placement positions Antipa in a strong financial position enabling the company to progress exploration activities on its remaining 100 per cent-owned tenure.”

Antipa retains 100 per cent ownership of 1,700 square kilometres of highly prospective ground in the Paterson Province, including existing gold-copper resources at Minyari-WACA and its recently discovered Reaper-Poblano-Serrano gold-copper trend.

Rio Tinto Exploration will continue to fully fund the 1,300sqkm Citadel project JV exploration activities.





Moho Resources Awarded Queensland Government Exploration Grant

THE BOURSE WHISPERER: Moho Resources (ASX: MOH) has scored a grant of $112,000 to undertake a regional hydrogeochemical sampling program at the company’s Empress Springs project in Queensland.

Moho Resources was awarded the grant as part of the Collaborative Exploration Incentive (CEI) program by the Queensland Government, administered by the Department of Natural Resources, Mines and Energy (DNRME).

The company explained the CEI grant will fund a borehole hydro-geochemistry study in partnership with the CSIRO, while enabling Moho to sample and comprehensively analyse waters beneath the cover rocks from existing water bores spread throughout its eleven Empress Springs tenements.

Moho will also sample water in holes drilled in 2018 and 2019 that located evidence of four separate mineralising systems within the Empress Springs project.

“Moho looks forward to utilising the CEI funds in cooperation with CSIRO to advance our knowledge of mineralising systems at the highly prospective Empress Springs project,” Moho Resources managing director Shane Sadleir said in the company’s announcement to the Australian Securities Exchange.

Moho and the CSIRO will carry out the survey hoping to locate chemical signatures substantiating large mineralised systems hidden beneath the cover rock sequences to focus future exploration towards finding new mineralisation in the area.

The CSIRO will contribute its technology and considerable background data on water sampling and analyses in the region and provide the equipment, training and supervision for the sampling program.

The chemical analyses for a comprehensive suite of elements will be performed by or under the direction of the CSIRO and the resulting data will be assessed by Moho and the CSIRO using their computer machine learning technology.

The field and analytical program is expected to commence in March 2020 and be completed in May 2020.





Lithium Australia Lithium Extraction Technology Patent Accepted

THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) has received a Notice of Acceptance from IP Australia for its LieNA® technology patent application.

Lithium Australia, in conjunction with the Australian Nuclear Science and Technology Organisation (ANSTO) is researching and developing the LieNA technology for the recovery of lithium from spodumene, the most common hard-rock source of lithium for the production of critical battery chemicals.

While the recovery rate of lithium from conventional spodumene beneficiation varies, it can be as low as 50 per cent owing to the concentrate offtake specification constraints applied by thermal convertors.

The LieNA process does not require a roasting stage and is able to recover lithium from the fine spodumene that otherwise ends up as waste or tailings streams during current concentration processes.

Being able to rescue the fine spodumene that would otherwise go to waste, LieNA has the potential to not only expand current hard-rock lithium resources, thereby reducing mining costs, but also enhance the sustainability of spodumene production and subsequent manufacture of lithium chemicals.

Lithium Australia considers its receipt of the Notice of Acceptance from IP Australia for its LieNA patent application as vindication of the value of the company’s intellectual property.

Lithium Australia has also received notification from WIPO that its patent application for the second-generation LieNA process technology, which includes the enhancements achieved by recovering lithium phosphate, has been published.

“The ability to process fine spodumene that would otherwise never enter the supply chain represents a real opportunity,” Lithium Australia managing director Adrian Griffin said in the company’s announcement to the Australian Securities Exchange.

“Processing such material can reduce the environmental impact of hard-rock lithium mining and improve sustainability with no additional mining costs or footprint.

“Importantly, application of LieNA® could not only change the economics of spodumene production but also provide a means of producing lithium-ion batteries that includes fewer processing steps and better quality control.

“We appreciate the involvement of ANSTO, a leader in the field of lithium-extraction technologies.”