Miramar Resources IPO Makes Big Opening Day Splash

THE BOURSE WHISPERER: A new exploration company with a familiar face at the helm has set up residence on the boards of the Australian Securities Exchange.

The newest gold exploration play to hit the bourse is Miramar Resources (ASX:M2R) on the back of a heavily oversubscribed Initial Public Offering (IPO) that raised $8 million at an issue price of 20 cents per share.

The company has former Doray Minerals and Riversgold head, Allan Kelly sitting at the head of the Boardroom table in the executive chairman role.

Miramar Resources enjoyed a satisfying first day trading, opening at a healthy 56 cents before settling down to an impressive 41.5 cents.

The company is eager to get out on its highly prospective exploration projects within the Eastern Goldfields and Murchison regions of Western Australia.

Miramar’s immediate focus will be on the Gidji Joint Venture project (Miramar 80%) located north of Kalgoorlie.

The first drilling campaigns at Gidji will test several targets including the potential for extensions to the Runway gold deposit located immediately south of the project’s southern tenement boundary where KCGM outlined a Mineral Inventory of 314,000 ounces in 2017.

The company considers there to be potential for the oxide and primary gold mineralisation seen at Runway to continue to the north, onto Miramar’s tenements.

There is a lack of deep drilling across the Gidji JV project however limited wide-spaced aircore drilling has demonstrated anomalous gold extending for at least a further two kilometres north of the Runway deposit.

Miramar has planned initial aircore and RC drilling programs at Gidji and has recently received approval from the Department of Mines, Industry Regulation and Safety (DMIRS) for these programs.

The company has received statutory approvals from DMIRS for initial drilling campaigns at the Lang Well and Glandore projects and is working towards heritage approval for the Glandore project.

Miramar’s Executive Chairman, Allan Kelly, said the Company was overwhelmed by the level of interest in the IPO and welcomed the Company’s new shareholders.

“It is a great time to be a West Australian focused gold exploration company,” Kelly said in the company’s opening day announcement to the ASX.

“We have compiled a portfolio of under-explored but highly prospective exploration projects in two world class gold provinces and within close proximity to a number of existing gold mining and processing facilities.

“It’s fantastic to see that investors have enthusiastically embraced our strategy.”



Email: info@miramarresources.com.au


Web: www.miramarreources.com.au


Blackstone Minerals Reports Completed Ta Khoa Scoping Study

THE BOURSE WHISPERER: Blackstone Minerals (ASX: BSX) reported the completion of the Scoping Study for the development and restart of the company’s Ta Khoa nickel-copper-PGE project in Vietnam.

Blackstone Minerals views the Scoping Study as an initial platform, from which it can build a mine-to-market nickel business over the coming years; one with multiple upside opportunities for the future.

Blackstone has already commenced the next phase of Pre-Feasibility Studies.

The existing modern mine infrastructure at Ta Khoa provides the ideal pad from which Blackstone can launch it ambition of building a fully integrated mine-to-market nickel business.

The company is determined to build one of the world’s first green nickel processing facilities to produce downstream nickel products for the lithium-ion battery industry.

The maiden resource at Ban Phuc (indicated resource of 44.3Mt at 0.52% nickel for 229,000 tonnes nickel and Inferred Mineral Resource of 14.3Mt at 0.35% nickel for 50,000 tonnes nickel) is a good start, from which to build a world class nickel mining centre supported by a downstream processing facility.

The Ta Khoa Nickel- copper-PGE project is currently powered by South East Asia’s largest hydro power plant located nearby in the Son La Province.

“The Scoping Study defines a project path that maximises economics, minimises environmental and social impacts, and offers a lasting legacy to the people in our local community,” Blackstone Minerals managing director Scott Williamson said in the company’s announcement to the Australian Securities Exchange.

“Whilst we are pleased with the outcomes of this study, we will continue to expand our resource and increase our production potential in this exciting, and yet under-explored region of Vietnam and have commenced work on PFS level studies for the project.”




Email: admin@blackstoneminerals.com.au


Web: www.blackstoneminerals.com.au



Mt Ridley Mines Joins Weld Range Explorers Club

THE BOURSE WHISPERER: Mount Ridley Mines (ASX: MRD) has picked up 100 per cent interest in the Weld Range West iron project, located in the Mid-West region of Western Australia.

The Mt Weld West project is located northeast of Geraldton, in an area well known for its banded iron formation (BIF) and iron deposits.

The bulk of the Weld Range is held by SinoSteel, which is looking to mine two deposits, Beebyn and Madoonga.

The Madoonga deposit is in the Madoonga Formation, 12 kilometres north east from Mt Ridley’s project.

Others in the region include Fenix Resources, which is currently advancing an approximately 10 million tonnes Direct Shipping Ore (DSO) operation at its Iron Ridge project, from which first shipments are anticipated early CY 2021.

Mount Ridley chairman Peter Christie noted the substantial resources of Iron Ore that have been defined by Sinosteel and Fenix, adding that detailed drilling is yet to test iron targets within Mount Ridley’s ground.

“A review of previous work by earlier explorers has provided Mount Ridley with walk-up drill targets for possible high-grade haematite and goethite ore initially in the Wilgie Mia Formation directly along strike from known iron deposits,” Christie said in the company’s announcement to the Australian Securities Exchange.

The Weld Range West Iron Project area comprises three granted exploration licences that cover a total area of approximately 76 square kilometres.

Native Title has been partially determined in favour of the Wajarri Yamatji people.

A working Heritage Protection Agreement is currently in place, which will be assigned to the company at completion of the acquisition.



Web: www.mtridleymines.com.au


Panoramic Resources to Divest Panton PGM Project

THE BOURSE WHISPERER: Panoramic Resources (ASX: PAN) is selling its Panton PGM project and associated tenements to Dubai 2020 Limited, a private family office investor represented by CPS Capital Group.

Panoramic Resources explained the Agreement is consistent with the company’s stated intention to divest non-core assets and focus on its Savannah nickel project in Western Australia.

Panoramic will retain a 20 per cent free carried interest until any decision to mine.

This interest is subject to Dubai 2020 not exercising its right to acquire the remaining 20 per cent of Panton by a further $3 million payment to Panoramic.

“We are pleased to have progressed the sale of the non-core Panton asset as previously outlined,” Panoramic Resources managing director and CEO Victor Rajasooriar said in the company’s announcement to the Australian Securities Exchange.

“We now look forward to working with Dubai 2020 towards a successful completion of the sale of Panton in early December.”




Email: info@panres.com.au


Web: www.panoramicresources.com.au


Eagle Mountain Mining Expands Oracle Ridge Tenure

THE BOURSE WHISPERER: Eagle Mountain Mining (ASX: EM2) has staked 105 Unpatented Mining Claims surrounding the company’s 80 per cent-owned Oracle Ridge copper mine project in Arizona in the United States.

Eagle Mountain Mining identified the claims via follow-up of geophysical anomalies in the near-mine area, in its pursuit of expanding its potential mineable resource base.

The new claims are within five kilometres of mine portals and cover two prospective areas named OREX and Red Hawk.

OREX is prospective for skarn-hosted high-grade copper-silver-gold mineralisation while Red Hawk is potentially prospective for porphyry copper mineralisation.

The areas for the claims were selected following a systematic exploration program completed by Eagle Mountain’s technical team over the past nine months.

The program included regional geophysics, multi-spectral image analysis, historical data review and geological mapping and sampling.

“While the drill rig is currently testing extensions to the Oracle Ridge orebodies, it is pleasing to see the results of the regional work that the team has been involved with over the past nine months,” Eagle Mountain Mining CEO Tim Mason said in the company’s announcement to the Australian Securities Exchange.

“The second pillar of our exploration strategy at Oracle Ridge is to identify near-mine opportunities for expanding our resource base and expand our footprint in areas prospective for porphyry copper mineralisation, and it is exciting to see this coming to fruition.

“With the recently completed ground staking we have secured a strong land position over three high-quality targets, and I am also excited to see the regional work confirming our conceptual model for the greater Oracle Ridge mineralisation system.

“While there is a lot more work to do, new evidence supports our model for a deeper source for the copper, silver and gold at Oracle Ridge.”



Web: www.eaglemountain.com.au



Cazaly Resources Takes 100% Ownership at Halls Creek Project

THE BOURSE WHISPERER: Cazaly Resources (ASX: CAZ) has purchased 80 per cent of the Halls Creek project from 3D Resources (ASX: DDD).

Cazaly Resources will now own the project 100 per cent.

The Halls Creek project comprises granted Mining Lease 80/247 situated near the township of Halls Creek covering part of the Halls Creek Mobile Zone which is considered highly prospective for a range of commodities including base metals, gold, diamonds and nickel.

The project hosts the Mount Angelo copper-zinc deposit, an extensive zone of near surface oxidised copper-zinc mineralisation overlying massive copper-zinc sulphide mineralisation.

“The company will be conducting a review of all previous exploration on the project,” Cazaly Resources said in its ASX announcement.

“There remains very good upside potential with mapping defining the untested northern extensions of the deposit including mapping out of the important Banded Iron Formation capping unit.

“Furthermore, downhole EM conductors previously defined have yet to be drill tested.”

“Whilst the company has greatly added to its portfolio of projects with this acquisition and the recent staking of the large Ashburton project, the company will also continue to focus on the potential acquisition of a further advanced project.”




Email: admin@cazalyresources.com.au


Web: www.cazalyresources.com.au


Developer Looking to Conquer Niche Market

THE BOURSE WHISPERER: Global mining entrepreneur Robert Friedland has his finger firmly in another Australian mineral resources pie – with two of its tastiest ingredients being the electric vehicle (EV) market and the planned establishment of what could be a game changing scandium operation. By Mark Fraser

As co-chair of the Melbourne-based Clean Teq Holdings (ASX: CLQ, TSX: QTCQX and CTEQF), the enigmatic Friedland is one of the key drivers behind the development of the Sunrise Battery Minerals Project (SBMP) in central New South Wales, where the recent focus has primarily been on sizing up an EV-friendly nickel and cobalt operation to service the global automobile sector.

Located north of Fifield around 70 kilometres north-west of Parkes, the SBMP has a current lateritic reserve of 143 million tonnes grading 0.59% nickel, 0.10% cobalt and 74 parts per million scandium.

According to Clean TeQ, Sunrise is not only one of the largest cobalt deposits outside of Africa, but is also “one of the largest and highest grade accumulations of scandium ever discovered”.

Adding to this story’s allure is the fact that recent drilling at the site further confirmed the ore body’s potential to be a giant amongst Australia’s platinum resources.

Earlier this month the company released a project execution plan (PEP) for the (roughly) $2.37 billion mining and downstream processing undertaking, which is expected to achieve annual production of 21,293t nickel and 4,366t of cobalt during years 2–11 of its initial 25 year life, and an overall 18,439t per annum of nickel and 3,179t of cobalt between years 2-25.

Some 2.5 million tonnes of Sunrise’s lateritic ores will be put through a pressure acid leach circuit on a yearly basis. The autoclaves have already been bought, while Clean TeQ has developed an in-house processing technology, known as Clean- iX®, which looks set to provide the basis for the “highly efficient extraction and purification for a range of valuable strategic metals from slurries and solutions”.

As it stands Sunrise is forecast to deliver over US$16 billion in revenue and an average annual post-tax free cash flow of US$308 million over its first quarter century of operations.

These strong cash flows, Clean TeQ believes, will result in a post-tax net present value of US$1.21 billion ($1.72 billion) as well as a post-tax internal rate of return of 15.44%.

The PEP, the company said, confirmed Sunrise’s status as one of the world’s lowest cost, development-ready sources of critical battery raw materials.

Aside from being a major supplier of nickel and cobalt to the lithium-ion battery market, the project would also provide scandium to the aerospace, consumer electronics and automotive sectors.

In terms of the first part of this strategy, the Sunrise refinery is designed to produce enough nickel and cobalt to respectively support the production of about 1,000,000 and 2 million EVs pa.

To cater for the scandium – initially recovered as a nickel and cobalt by-product in the form of hydrogen concentrate, after which it will be stored on site until required for conversion to oxide – Clean Teq plans to install a 20t refining capacity for the niche mineral during the third year of operation. This may eventually be increased to 80t per year for a (current) cost of $25 million.

According to Clean TeQ, the global supply of scandium oxide is around 10-15t pa, meaning it is expecting to become one of the market’s dominant players. The company has used a long-term scandium oxide price assumption of US$1,500 per kilogram in its PEP.

“As the scandium market grows, future investment in a dedicated resin-in-pulp scandium extraction circuit and further refining capacity offers the potential to increase by-product scandium production to up to approximately 150t pa,” the company said.

“The PEP conservatively ramps up scandium oxide sales from 2 to 20t per year over the first decade of the mine life. Clean TeQ has existing offtake heads of agreement with companies including Panasonic Corporation Global Procurement Company and Relativity Space Inc, and programs are underway with a range of additional parties to develop new light-weight aluminium scandium alloys for the aerospace, additive layer manufacturing, consumer electronics and automotive sectors.”

During early September the company also announced it had discovered an area of high-grade platinum mineralisation within Sunrise forming what it called the “newly-classified Phoenix Platinum Zone”.

Significant downhole intersections from earlier drilling campaigns included:

12m at 8.0 g/t platinum, 0.55% nickel, 0.08% cobalt and 23 ppm scandium for 96.3 g/metres platinum (from 8m);

13m at 7.1 g/t platinum for 92.2 g/m platinum (9m);

6m at 15.1 g/t platinum, 0.95% nickel, 0.16% cobalt and 170 ppm scandium for 90.3 g/m platinum (32m);

4m at 18.1 g/t platinum, 0.05% nickel, 0.01% cobalt and 27 ppm scandium for 72.4 g/m platinum (from surface), and;

14m (from 20m) at 4.4 g/t platinum, 0.73% nickel, 0.02% cobalt and 75 ppm scandium for 61.7 g/m platinum (20m).

These holes were drilled with a mix of reverse circulation, air core and calweld rigs and – with few exceptions – were not assayed for other platinum group metals.

Sunrise already hosts a significant platinum resource of 103.1 Mt at 0.33 g/t for 1.076 million ounces of the precious metal, using a 0.15 g/t platinum cut-off grade. Of this total resource, approximately 90% is in the measured and indicated categories.

According to Clean TeQ, which Friedland co-chairs with Jiang Zhaobai., this makes the ore body “one of the largest platinum resources in Australia”.

Made famous in the mining world after sizing up remote ore bodies that became the basis of some high profile deals involving Inco (the polymetallic Voisey’s Bay in Newfoundland back in the 1990s) and the publicly-listed Rio Tinto (the Oyu Tolgoi copper-gold project in Mongolia the following decade), the US-born Friedland has now had an interest in Australia’s minerals scene for two decades.

During the early 2000s his company, Ivanhoe Mines, owned the Savage River magnetite iron ore operation in north-west Tasmania before selling it off and delisting from the Aussie bourse in 2005.

Then, in 2008, the resources house relisted on the ASX to push its Cloncurry copper projects in Queensland – a corporate quest that led it to the 2008 discovery of Merlin, which at the time was touted as the world’s highest grade molybdenum-rhenium deposit.

Given this, investors will now be asking one key question: Can Friedland help overcome the many problems faced by Western Australian nickel laterite producers during the early 2000s (not to mention BHP towards the end of that decade) and unequivocally prove that Australian lateritic ores can be processed economically?



Compelling Synergies Likely to Make Strong Impact

THE BOURSE WHISPERER: It was called a $16 billion “merger of equals” by its two gold mining participants and, judging from what both companies brought to the table, they may well have a point. By Mark Fraser

Tuesday’s announcement that Western Australian-based Northern Star Resources (ASX: NST) planned to take over fellow WA miner Saracen Minerals Holdings (ASX: SAR) contained all the right signs for punters looking to invest in a seriously-credentialed ASX-listed gold producer with both an established organic growth portfolio and (so far) modest global presence.

The proposed merger – to be conducted via a Scheme of Arrangement in which Northern Star will acquire all of Saracen’s stock for $5.75 billion – is not only set to create Australia’s second largest domestically-owned gold miner behind Newcrest Mining (ASX: NCM), but also a new top 10 global yellow metal major boasting a “pro-forma” market capitalisation of $16 billion and $118 million net cash position, immediate production of 1.6 million ounces per annum (with a pathway in place to 2 million ozpa) as well as a current inventory of over 19 million oz (reserves) and 49 million oz (resources).

In one not-so-foul swoop the two companies will consolidate their leading position in the central Kalgoorlie-Boulder area (partly by becoming the single owner/operator of the historic Super Pit), tie up a good chunk of WA’s reasonably-explored-but-still prospective Yandal Belt and increase their access to overseas capital markets in order to expand their international interests – a strategy which is already underway via Northern Star’s Pogo gold project in the US state of Alaska.

And, once the deal is signed, these self-proclaimed equals will initially have three key production centres.

The first, Kalgoorlie – which includes the Super Pit and Carosue Dam 110 kilometres to Kalgoorlie-Boulder’s north-east – currently has a reserve of 287 million tonnes at 1.4 grams per tonne gold for 13.3 million ounces as well as a resource of 516Mt at 1.8g/t for 30.5 million ounces. Overall, this operation is targeting production of 1.1 million ounces per annum.

Second cab off the rank is Yandal, where three projects – Jundee, Bronzewing and Thunderbox – contain a collective reserve of 66Mt at 2.2g/t for 4.6 million ounces, a resource of 139Mt at 2.3g/t for 10.2 million ounces and a yearly output target of 600,000 ounces.

Finally, there’s the higher grade Pogo in Alaska, where the numbers are 5.9Mt at 8g/t for 1.5 million ounces (reserves), 22Mt at 9.8g/t for 6.7 million ounces (resources) and 300,000 ounces per annum (targeted production guideline).

All-in sustaining costs (AISC) pencilled for these processing centres during FY2012 are $1,475-1,575/oz, $1,130-1,220/oz and US$1,200-1,400/oz respectively.

Importantly, these are long term Tier-1 operations, with expected production to last 127 years (Kalgoorlie), 30 years (Yandal) and 14 years (Pogo).

Source: Northern Star Announcement.

Given its strengths, it probably comes as no surprise to many that Northern Star – with its September market cap of around $11.8 billion – will become the majority owner of the new outfit.

Aside from amassing an impressive gold portfolio, which includes wholly-owned assets in Kalgoorlie (on top its 50% stake in the Super Pit), Yandal and Pogo, the company has also kicked quite a few corporate goals over the past decade.

In addition to already being Australia’s second largest domestically-owned gold producer (Saracen is currently the country’s fourth), Northern Star has, during the past ten years, generated an average return on invested capital of over 24% – a significant figure given it easily outdid some industry giants with Australian operations like Newcrest (about -2%), AngloGold Ashanti (JSE: ANG, NYSE: AU and ASX: AGG – around -5%) and Gold Fields (JSE and NYSE: GFI – approximately -25%) during the same period.

The mid-tier mining house has also enjoyed a return on equity of around 28%, again significantly outdoing the likes of AngloGold Ashanti (-1%) and Newcrest (-5%).

Furthermore, during FY2020, Northern Star increased its resources by 67% (from 12.7 to 31.8 million oz) and, over the past five years, enjoyed a whopping 179% jump in resources per share.

During this period the company’s ore reserves also rose by 102% (5.5 million oz) to 10.8 million oz, while the reserves per share rose by an even more impressive 348%.

Having said this, it is important to note that Saracen – which during mid-September had a market cap of $5.6 billion – has been no slouch either.

Pre the merger announcement, the company was able to tell the market its FY2020 production was an impressive 520,000 ounces, while its FY2021 guidance was 600–640,000 ounces with an ASIC of $1,300-1,400 per ounce from its three operations (the Super Pit, Carosue Dam and Thunderbox).

Moreover, Saracen’s net debt of $21 million at the end of the March quarter had morphed into a net cash position of $48 million by June 30.

Regardless of these past successes, though, for many ASX punters it’s likely that the performance of the Super Pit over the next couple of years will be crucial given it is set to be one of the biggest cash cows (a targeted 550,000 ozpa) for the newly-merged outfit.

In this regard the news is good, judging by some observations made by analysts Tim McCormack and Henry Renshaw in an investment note issued by Canaccord Genuity during the middle of the September quarter just after the companies had jointly announced a maiden JORC compliant resource of 19 million ounces (up from the 12 million ounces previously established under National Instrument 43-101 guidelines) and reserves of 9.7 million ounces (an increase of 6.3 million ounces using the same criteria) for the asset.

According to McCormack and Renshaw, both numbers were calculated based on a “conservative” gold price of $2,250 per ounce and $1,750 per ounce respectively and were broadly in line with those used to determine earlier NI 43-101-compliant resources (US$1,400/oz) and reserves (US $1,200/oz).

A notable inclusion in the resources, they said, was Fimiston’s maiden underground resource of 25Mt at 2.8g/t for 2.2 million ounces.

Multiple in-pit exploration declines were planned for FY2021 (costing $10 million) to conduct more efficient drill testing of the ore body, which represented an attractive medium/longer term opportunity that could extend the higher grade underground ore supply beyond Mt Charlotte (which is now scheduled to conclude during FY2025 based on its current reserves).

Notable inclusions in the Super Pit’s reserves included the Fimiston South open pit (66Mt at 1.8g/t for 3.9 million ounces) – which were now a central part of the life of mine plan – as well as the (approximate) 3 million ounces stockpiles that were set to play an important role in the blend over the current LOM plan, particularly over next three years or so.

“Based on the current reserves, we now model an (around) 15 year mine life, up from 12 years previously, and see solid potential upside with ongoing exploration. The FY2021 exploration budget has been set at $12 million,” McCormack and Renshaw noted.

If all goes to plan, Saracen stockholders will receive 0.3763 Northern Star shares for each of their shares held on the record date. Upon its completion, Northern Star will own 64 per cent of the combined entity, with Saracen holding the rest.

In their joint announcement to the market on Tuesday, the companies said the new-look outfit – which will retain the name Northern Star – would have a “clear trajectory” towards producing 2 million ounces of gold by FY2027, with output set to grow by over 30 per cent during the next three years.

They also said the planned merger would unlock some $1.5-2 billion net present value in pre-tax synergies via “geographic, operational and strategic synergies” over the next decade.

Furthermore, it should see the creation of $200 million in combined ownership amongst the board and management teams.

In this regard, under the revised corporate structure, Northern Star executive chair Bill Beament will become chair of the merged group (switching from executive to non-executive chair in July next year), while Saracen managing director Raleigh Finlayson is set to retain this position when the friendly merger is finalised.

Meanwhile, Stuart Tonkin shall become the chief executive officer, and Morgan Ball the chief financial officer, of the combined entity. Upon completion of the deal, the board of nine will comprise five directors from Northern Star and four from Saracen.

Both Beament and Finlayson will be on this board, while Saracen’s non-executive chair, Tony Kiernan, plans to take on the title of lead independent non-executive director.



Black Cat Syndicate Acquires Aruama Resources’ Projects

THE BOURSE WHISPERER: Black Cat Syndicate (ASX: BC8) has entered into a binding agreement with Aruma Resources (ASX: AAJ) to acquire that company’s Trojan, Slate Dam and Clinker Hill gold projects in Western Australia.

The acquisition is subject to meeting certain conditions, such as the projects in question will be acquired by and held by Black Cat (Bulong) Pty Ltd, a wholly owned subsidiary of Black Cat.

The acquisition will complete upon approval or in principle approval of the Minister for the transfer of the tenements.

The deal comprises three key areas:

The Trojan project contains 115,000 ounces of Resource and is located approximately 15 kilometres by road east of Black Cat’s Fingals gold project, which is the likely location of the company’s planned processing facility.

The Slate Dam project is located some 10km to the east of the Bulong gold project and is an advanced exploration project over prospective areas of the underexplored Lake Yindarlgooda.

The Clinker Hill is also nice and close to the Fingals gold project and is an early stage exploration project containing structures that link the million-ounce Mt Monger mining centre with the Bulong gold project.

Once the acquisition is completed, Black Cat’s landholding will increase from 499 square kilometres to 756sqkm.

Trojan has a Resource of 2.1 million tonnes at 1.7 grams per tonne gold for 115,000 ounces and will increase Black Cat’s total Resources by 16 per cent to 10.8 million tonnes at 2.4g/t gold for 826,000 ounces.

Black Cat has paid a non-refundable deposit of $50,000 upon signing, with a balance of $450,000 payable at completion, which is expected to occur in early October 2020.

“This acquisition accelerates Black Cat’s move towards a target of more than one million ounces of Resources,” Black Cat Syndicate managing director Gareth Solly said in the company’s announcement to the Australian Securities Exchange.

“The Trojan deposit has strong synergies to our Fingals gold project, presents a near-term mining opportunity with 115,000 ounces in Resource on a granted mining lease and will become part of our larger Fingals gold project.

“The acquisition increases our total Resources to 826,000 ounces.

“We will rank the acquired exploration and mining opportunities concurrently with our 60,000 metres drilling campaign and mining studies across the Bulong and Fingals gold projects.”





Email: admin@blackcatsyndicate.com.au


Web: www.blackcatsyndicate.com.au


Peel Mining Fights Off Wirlong NSR Bid

THE BOURSE WHISPERER: Peel Mining (ASX: PEX) exercised its pre-emptive muscle to acquire Weddarla Pty Ltd’s 1.5 per cent Net Smelter Return (NSR) royalty over tenement EL8307, within the company’s Southern Cobar Basin tenements in New South Wales.

Peel Mining fought off a third party’s unconditional cash offer of $1.2 million made to Weddarla by a Toronto Stock Exchange listed royalty streaming business.

Respecting Peel’s first right of refusal under the Royalty Deed, Weddarla offered to sell the royalty to Peel for $1.2 million (excluding GST) in cash.

Peel elected to exercise its right to acquire the royalty interest, after which it will have 100 per cent unencumbered ownership of all its Southern Cobar Basin tenements.

“The unconditional cash offer from a TSX-listed royalty streaming business for the 1.5 per cent NSR royalty covering EL8307 continues to underscore the widespread interest that exists for Cobar Basin assets, and the strong economic potential therein,” Peel Mining managing director Rob Tyson said in the company’s announcement to the Australian Securities Exchange.

“Peel’s pre-emptive right has ensured that the company can completely consolidate its Southern Cobar Basin tenements removing all future ownership encumbrances.”

EL8307 contains the Wirlong copper-silver deposit, as well as the Sandy Creek and Red Shaft prospects.

Peel discovered Wirlong in 2016, which is a classic Cobar-style VMS copper deposit that has returned strong copper mineralised intercepts commencing from around 60 metres below surface to at least 600m below surface.

With the Mallee Bull deposit, Wirlong increases the company’s exposure to copper.

Peel intends to undertake drilling at Wirlong over the coming months with the objective of establishing a copper-rich Maiden mineral resource estimate.

“As foreshadowed, it is the company’s intention, in due course, to undertake a resource drillout at Wirlong in order to establish a maiden mineral resource estimate,” Tyson said.

“It is our strong belief that Wirlong, and the broader EL8307 landholding, has excellent economic potential, and the buyout of the royalty interest underlines the Company’s view on the value proposition.”



Email: info@peelmining.com.au


Web: www.peelmining.com.au