Image receives Minster’s approval for Boonanaring

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THE BOURSE WHISPERER: Image Resources (ASX: IMA) has received environmental approval from the Western Australian Minister for Environment for the company’s Boonanarring mineral sands project, located north-west of Gingin.

“The Minister’s approval is a significant milestone in the project approvals process and progresses the project towards production, as this is a critical step to bringing any project on stream,” Image Resources chief operating officer Collis Thorp said in the company’s announcement to The Australian Securities Exchange.

Image Resources explained the project involves open cut mineral sands mining, processing through primary and secondary concentration plants to produce heavy minerals concentrate and further treatment through a dry mill to produce ilmenite, rutile, zircon and leucoxene.

The company said the Minister’s approval extends to the construction and operation of associated mine infrastructure such as offices, workshops, fuel storage, roads, solar drying cells and water bores, and to the modification to the intersection of Brand Highway with Wannamal West Road to provide safe access to the project site.

Email: admin@imageres.com.au

Website: www.imageres.com.au

Musgrave wins Southern Gawler Craton tenement ballot

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THE BOURSE WHISPERER: Musgrave Minerals (ASX: MGV) has emerged victorious from a South Australian Department of State Development ballot for the Southern Gawler Craton tenement EL 2014/00092 in South Australia.

The tenement is now known as the Corunna project.

Musgrave beat off five other applicants to win the tenement, which covers approximately 260 square kilometres in the emerging epithermal porphyry province of the Southern Gawler Craton.

The region hosts Musgrave’s Menninnie Dam zinc-lead-silver deposit and the 20 million ounce Paris epithermal silver deposit of Investigator Resources (ASX: IVR).

 

Location of Musgrave’s new Corunna project in the Southern Gawler Craton. Source: Company announcement

 

“We are excited about winning the new Corunna project tenement in the recent ballot, as it covers a portion of the Southern Gawler Craton which is very prospective for epithermal silver-lead-zinc and copper-gold deposits,” Musgrave Minerals managing director Rob Waugh said in the company’s announcement to the Australian Securities Exchange.
 
“It also complements Musgrave’s nearby Menninnie Dam joint venture project just 30 kilometres to the west.”

Musgrave said previous exploration on the tenement in the 1980’s identified anomalous silver and lead in a surface rock chip sample with values up to 148g/t silver and 0.5 per cent lead.

The company considers the tenement has the right geological characteristics for epithermal mineralisation including the major Uno fault and significant cross cutting structures that are often important for controlling the emplacement of mineralising intrusives and fluids.

The tenement was most recently held be a uranium explorer and, as such, has been subjected to limited exploration for base and precious metals in the last decade.

Musgrave believes it can now apply recent advances in geological understanding of the region to the Corunna project for the first time.

“The recent work by DSD (SA Department of State Development) geologists in the area and the historical silver anomalism are both very positive indicators for the prospectivity of the tenement,” Waugh said.

“No systematic exploration for silver or epithermal systems has occurred here in the past, opening a window of opportunity for us to apply modern exploration techniques to this very prospective area.”

Musgrave is in a strong financial position with approximately $6 million in cash to conduct an aggressive exploration campaign over the new Corunna project, it anticipates to be granted late this quarter.

Musgrave will undertake detailed geochemical sampling, mapping and geophysics prior to drill testing.

Email: info@musgraveminerals.com.au

Website: www.musgraveminerals.com.au

Joint Venture announcements

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THE BOURSE WHISPERER: As they say in the classics; it’s better to have 50 per cent of a project than 100 per cent of no project.

Wilcherry Hill JV in offtake discussions

IronClad Mining (ASX: IFE) is in deep discussion regarding the potential sale of direct shipping iron ore from the Wilcherry Hill Joint Venture with Arrium Limited (ASX: ARI) (formerly One Steel Limited) in Whyalla, South Australia.

IronClad is conducting the discussions in its capacity as manager of the Wilcherry Hill JV (IFE 80% and Trafford Resources [ASX: TRF 20%]).

IronClad indicated that if an agreement is reached with Arrium, it is the JV’s intention to mine an initial trial pit at Wilcherry Hill.

The trial pit would generate high-grade iron ore for direct sale to Arrium Limited and produce additional bulk samples for ongoing beneficiation test work.

Mining of the proposed trial pit would commence in November 2014 and take approximately five months to complete.

Northern Territory acquisition and JV

Phoenix Copper (ASX:PNX) has entered into an agreement to acquire and earn into advanced gold and under-explored base metals projects in a two part $4 million agreement with Crocodile Gold Australia, a subsidiary of TSX-listed gold producer, Crocodile Gold Corp.

Under this Asset Sale and Farm-in Joint Venture Agreement Phoenix Copper will, subject to conditions precedent being satisfied, acquire the Iron Blow and Mount Bonnie massive sulphide deposits north of Pine Creek, and have the right to earn up to a 90 per cent interest in the Burnside, Moline and Maud Creek base metals (excluding uranium) and gold exploration projects.

All project areas are within the Pine Creek Orogen located 180 kilometres to the southeast of Darwin and, according to Phoenix Copper, are well positioned in regard to mining infrastructure, rail, road, natural gas and power.

Adelaide and Investigator strike Thurlga JV

Adelaide Resources (ASX: ADN) and Investigator Resources (ASX: IVR) have entered into a farm-in and joint venture agreement – to be known as the Thurlga Joint Venture – to explore one of AND’s Eyre Peninsula tenements for mineral deposits.

The tenement the subject of the Thurlga Joint Venture, EL 5419, secures 333 square kilometres of ground in the emerging Uno Province on the northern Eyre Peninsula.

Investigator Resources’ Paris silver deposit is located on the tenement immediately east of EL 5419.

Investigator has announced a Maiden Inferred Mineral Resource at Paris of 5.9 million tonnes at 110 grams per tonne silver and 0.6 per cent lead for 20 million ounces of contained silver and 38,000 tonnes of contained lead (at a 30g/t silver cut-off).

Wilcherry Hill JV in offtake discussions

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THE BOURSE WHISPERER: IronClad Mining (ASX: IFE) is in deep discussion regarding the potential sale of direct shipping iron ore from the Wilcherry Hill Joint Venture with Arrium Limited (ASX: ARI) (formerly One Steel Limited) in Whyalla, South Australia.

IronClad is conducting the discussions in its capacity as manager of the Wilcherry Hill JV (IFE 80% and Trafford Resources [ASX: TRF 20%]).

IronClad indicated that if an agreement is reached with Arrium, it is the JV’s intention to mine an initial trial pit at Wilcherry Hill.

The trial pit would generate high-grade iron ore for direct sale to Arrium Limited and produce additional bulk samples for ongoing beneficiation test work.

Mining of the proposed trial pit would commence in November 2014 and take approximately five months to complete.

Website: www.ironcladmining.com

Platina signs-up second Chinese scandium processor

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THE BOURSE WHISPERER: Platina Resources (ASX: PGM) has signed a Heads of Agreement (HoA) with Hunan Oriental Scandium Co. Ltd.

Hunan Oriental Scandium (HNOSC) is China’s largest manufacturer and processor of scandium.

Under the terms of the HoA, the companies will negotiate an Off-take Agreement as well as a Supply, Technology, Processing and Marketing Agreement for Platina’s Owendale scandium project in central New South Wales.

 

Owendale project location. Source: Company announcement

 

Platina and HNOSC will negotiate an Off-take Agreement for the supply of five tonnes of scandium oxide at a 99.9 per cent purity grade and at a commercially acceptable price.

Platina indicated in the past four years scandium oxide (99.9% purity) has sold within a range of US$1,400 to US$3,700 per kilogram.

Platina said the two companies will aim to finalise and execute the two agreements within the next three months.

The agreement with HNOSC is Platina’s second HoA with a Chinese manufacturer.

In July Platina announced an agreement with Inner Mongolia Honfine Zirconium Industry Co Ltd (Honfine) for 15 tonnes of scandium oxide at a 99.9 per cent purity grade.

“The HoA with Hunan Oriental Scandium Co. Ltd provides further support for Owendale to achieve its aim to be the leading scandium producer worldwide,” Platina Resources managing director Rob Mosig said in the company’s announcement to the Australian Securities Exchange.

Platina claims Owendale is the highest grade, laterite-hosted scandium deposit discovered globally.

The company considers Owendale offers a stable and potentially large tonnage operation, providing it with potential to export a moderately upgraded concentrate from Owendale for further processing in China paving the way to advance the project to low cost early production.

The Owendale project hosts an Indicated and Inferred Mineral Resource (JORC 2012) of 24 million tonnes of scandium grading 384ppm scandium (at a cut-off of 300ppm scandium) and contains a total in-situ content of 9,100 tonnes of scandium metal.

Email: admin@platinaresources.com.au

Website: www.platinaresources.com.au

Potash West acquires additional Dandaragan ground

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THE BOURSE WHISPERER: Potash West (ASX: PWN) has added approximately 300 square kilometres of prospective ground to its landholding comprising the Dandaragan Trough project.

The Dandaragan Trough project is focused on exploiting the large greensands deposits present in the Dandaragan Trough, less than 100km to the north of Perth.

Potash West stated its objective at the Dandaragan Trough project is to produce potash and single superphosphate fertilisers and a range of valuable by-products from the glauconite and phosphate present within the greensands.

“This acquisition consolidates our tenement holding over one of the most prospective areas of the Dandaragan Trough and provides an opportunity to add to our already extensive resource base, very close to Dinner Hill,” Potash West managing director Patrick McManus said in the company’s announcement to the Australian Securities Exchange.

The new tenement was formerly held as E70/3741 by Dempsey Minerals (ASX: DMI).

Potash West has agreed to purchase the technical data generated by Dempsey for 200,000 fully paid ordinary shares and a 0.4 per cent Net Smelter Royalty.

Potash West explained the new application ELA70/4609 overlies the Dandaragan Scarp, on the western edge of the Dandaragan Trough, in a similar geological setting to the company’s potash and phosphate resources at Dinner Hill.

Current JORC compliant Indicated Mineral Resources at Dinner Hill stand at
241 million tonnes at 3 per cent potassium oxide, including 120 million tonnes at 4.6 per cent potassium oxide amenable to processing by the company’s K-Max process and 120 million tonnes at 2.8 phosphorous oxide of phosphate mineralisation.

Potash West indicated it intends to continue to analyse the drill data generated by Dempsey and will plan drilling to target greensand units that have the potential to add to the potash and phosphate inventories already defined at Dinner Hill.

Email: info@potashwest.com.au

Website: www.potashwest.com.au

Southern Crown takes option over Alaskan projects

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THE BOURSE WHISPERER: Southern Crown Resources (ASX: SWR) has signed an exclusive option agreement to explore and acquire a package of projects it considers to ghost prospective multi-metallic targets.

The package is located 500 kilometres west of Anchorage in the South West Tintina gold belt of Alaska.

The Option includes three projects: Luna-Quicksilver, Kisa, and Chilly, and covers 138 square kilometres.

The Tintina gold belt is home to a number of world-class intrusion related gold (IRG) systems including Donlin Creek (45 million ounces at 2.21g/t gold), Pogo (5Moz at 12.45g/t gold), Fort Knox (produced over 5Moz of gold), Livengood (20Moz at 0.55g/t gold) and Shotgun (0.7Moz at 1.02g/t gold).

“Luna-Quicksilver represents an exciting untested IRG system that has all the hallmarks of a world class system such as Donlin Creek,” Southern Crown chairman Rhod Grivas said in the company’s announcement to the Australian Securities Exchange.

“This opportunity provides a near-ready drill target and a deal structure that minimizes dilution of existing shareholders and shares exploration risk with the project vendor.

“Two mineralised stockwork outcrops 1.2 kilometres apart in a system that is over 700 metres wide and striking over five kilometres is an attractive target in this belt.”

Southern Crown has signed the Option with Afranex Gold, an unlisted Australian company founded by Allan Kelly, managing director and co-founder of ASX-listed Doray Minerals (ASX: DRM) who spent time in North America working for Western Mining Corporation in the late 1990’s.

The Option allows Southern Crown to acquire the companies that hold the rights to 100 per cent of the three projects with an expiry date four months after the completion of 1,200m of core drilling or 31 December 2015, whichever occurs first.

Southern Crown has invited Kelly to join the company as technical advisor to provide on-going exploration input.

On exercising the Option, Southern Crown is required to issue 30 million ordinary shares, with the major vendor shareholder group subject to a voluntary 12 month escrow period.

The company has agreed to pay up to $100,000 to Afranex to cover exploration and corporate costs.

Afranex has an option agreement with Gold Crest Mines and Kisa Gold Mines over the Luna, Kisa and Chilly Projects as well as purchase agreements over the Quicksilver Project with Black Peak LLC, a subsidiary of ASX-listed Renaissance Minerals (ASX: RNS) and North Quicksilver Project with North Fork LLC, a subsidiary of North Fork Pty Ltd.

Afranex also has an option to acquire Kisa Inc’s interest in the Luna, Kisa and Chilly projects by paying US$300,000 before 31 December 2015.

Website: www.southerncrown.com.au

MRL snares Sri Lankan graphite project

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THE BOURSE WHISPERER: MRL Corporation (ASX: MRF) has signed a Heads of Agreement to acquire the rights to the high-grade Aluketiya graphite mine in Sri Lanka.

Aluketiya is located in Meegahatenna in the Walallawita District, approximately 85 kilometres from Colombo.

The company said the acquisition expands its portfolio of high-grade vein graphite licences in Sri Lanka, where it is aiming to develop multiple small-scale production hubs.

Under the agreement, MRL will acquire the lease covering Aluketiya, which it explained will give it the right to explore, develop and mine the graphite.

MRL will pay a lease fee of US$3500 a month during the exploration phase.

Upon the start of production, MRL will pay a 10 per cent, sales-based, royalty.

The transaction is subject to MRL completing due diligence and execution of a formal lease agreement.

Aluketiya is a historic operation, which MRL said had produced high-grade graphite for several decades until the operation was stopped in the 1960s.

The company claims there to be extensive veins of high-grade graphite visible from surface, however the area has not been subjected to any modern exploration techniques.

MRL aims to establish the extent of this high-grade graphite mineralisation as part of a drilling program due to start in late 2014.

However, the company also explained that it does not intend to drill Aluketiya to the point of being able to calculate a JORC-compliant resource estimate.

Instead the company intends to begin production as soon as possible.

MRL’s confidence stems from Aluketiya’s historical records, which it claims indicate the graphite to be of such high-grade the material produced is expected to be direct-shipping quality.

“We are aiming to develop a high-grade, low-cost mining operation in the shortest timeframe possible,” MRL Corporation managing director Craig McGuckin said in the company’s announcement to the Australian Securities Exchange.
 
“Based on what we know, the cost of getting into production will be extremely low and therefore there will be no need to spend the time and money establishing a JORC-compliant resource.

“The fact that Aluketiya is already covered by a Mining Licence is immensely valuable because not only will it enable us to start production quickly, it will also underpin our applications for other approvals such as transport and export licences.”

MRL indicated it is continuing to drill at the company’s Pandeniya – Priority 1 Area within the Warakopola Area in central Sri Lanka, where high-grade graphite intersections have been encountered.

Email: info@mrltd.com.au

Website: www.mrltd.com.au

Venture Minerals puts Riley DSO on hold

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THE BOURSE WHISPERER: Venture Minerals (ASX: VMS) has reluctantly suspended operations at the company’s Riley direct shipping ore (DSO) project in northwest Tasmania.

The reason given by the company for the decision was operational risk associated with on-going appeals against the project’s approvals accompanied by an unfavourable broader economic environment.

“After receiving full approvals for the Riley DSO project in mid-2013 and having secured financing, including an iron ore hedge facility at a time of higher iron ore prices, Venture was well placed to fully underwrite the life of the project,” the company said in its ASX announcement.

“It is therefore with regret that on-going appeals have delayed the project and in turn deprived shareholders and the local Tasmanian community of this opportunity in the medium term.”

The company explained it has completed extensive pre-production work at the Riley project over the past 18 months.

Venture is to leave all this in place, as it provides the company with the facility to commence production, on relatively short notice, should circumstances change in the medium term.

Venture indicated it currently maintains a strong financial position with more than $6 million in cash (as at 30 June 2014).

“The company will continue to monitor the situation closely and remains well placed to take advantage of any change in circumstance that would support a production decision at the Riley DSO project,” Venture said.

“Furthermore, Venture continues to be a party to appeal proceedings and is also actively seeking to recover all legal costs associated with past and present legal challenges.”

Venture declared it will continue to progress and evaluate financing options for the development of its Mt Lindsay tin/tungsten project, which it reminded everybody, remains one of the world’s largest undeveloped tin projects.

Website: www.ventureminerals.com.au

Azure pulls off Rio Tinto Earn-In

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THE BOURSE WHISPERER: Azure Minerals has pulled off a coup by striking an Earn-In and Joint Venture Agreement with Kennecott Exploration Company, to explore for copper on its 100 per cent-owned Promontorio project, located in the Mexican state of Chihuahua.

Kennecott is part of the Rio Tinto Group of companies.

The total value of the Earn-in and Joint Venture Agreement is worth up to approximately US$95 million to Azure.

Under the terms of the agreement Kennecott will be committed to US$2 million of expenditure within the first 12 months as well as being required to reimburse Azure US$250,000 upon execution of the agreement.

Kennecott will earn a 51 per cent interest in the Promontorio project by spending US$20 million within six years and will earn an additional 29 per cent interest (for a total 80 per cent interest) by spending a further US$25 million over the following six years (totalling US$45 million over 12 years).

Upon formation of a 51:49 JV, and to recognise the value Azure has already established at the Cascada and Promontorio deposits, Kennecott will credit Azure’s JV account with an amount equal to five times Azure’s total exploration and acquisition expenditures to that date.

So far Azure has spent approximately US$10 million.

Azure retains the right to continue its ongoing exploration activities on the Cascada and Promontorio deposits during the earn-in phase.

Azure Minerals managing director Tony Rovira said in the company’s announcement to the Australian Securities Exchange.

“Azure is delighted to join with Rio Tinto/ Kennecott, one of the world’s largest and most respected mining and exploration companies, to explore for very large copper deposits at Promontorio.

“Kennecott’s interest in the Promontorio project and the terms of the proposed Earn-In / Joint Venture Agreement demonstrate the enormous potential of Promontorio.

“This Agreement will enable a significant acceleration in the current exploration and development programs at Promontorio.

“Importantly for Azure, the Agreement allows us to advance our own exploration efforts around Cascada, while concurrently Kennecott will activate exploration throughout Azure’s large landholding during the initial earn in phase.

“Northern Mexico and southern Arizona together form one of the world’s great copper mining provinces and it is a real coup for Azure, as one of the very few ASX-listed companies with exposure to this area, to secure Kennecott’s involvement.”

Email: admin@azureminerals.com.au

Website: www.azureminerals.com.au