MRG expands Queensland copper portfolio

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THE BOURSE WHISPERER: MRG Metals (ASX: MRQ) has expanded its portfolio of Queensland copper exploration tenements.

The company has been granted the two remaining licence applications EPM19470 and EPM19471 within the Mount Isa block in Queensland.

 

MRG Queensland IOCG projects. Source: Company announcement

 

The company said the two blocks, plus its current licence EPM19306, have potential to host iron oxide, copper gold (IOCG) and base metal deposits, claiming they possess similar geophysical characteristics to known deposits in the area such as Glencore PLC’s Ernest Henry mine and BHP’s Cannington mine.

SQUIRREL HILL – EPM19470
The Squirrel Hill project is located approximately 125 kilometres SSE of Cloncurry and some 15 kilometres WNW of the
Cannington mine.

Despite the proximity of Squirrel Hill to Cannington, MRG said previous work has indicated it may be a geological setting favourable for IOCG deposits in addition to silver – lead – zinc mineralisation.

MRG has already commenced a review of past exploration to select initial targets.

PULCHERA – EPM19471
Situated in the Simpson Desert near the Northern Territory border in western Queensland EPM19471, the Pulchera project is near the major Toomba Fault which lies on the south western edge of the Mt. Isa Block, a Proterozoic geological terrain that hosts a diverse range of world class orebodies.

MRG pointed to previous broad spaced drilling carried out by BHP, which demonstrated the depth of cover ranges from 40 to 100 m.

The company said its aim is to discover an Olympic Dam-style IOCG deposit in a granitic breccia host, associated with continental faulting and high fluid flow on terrane boundaries.

DAVENPORT DOWNS – EPM19306
The Davenport Downs licence was granted in April 2013 and lies 120 kilometr es south east of Boulia.

MRG said it is similar to the Pulchera project in that it is close to the interpreted southern margin of the Mount Isa Block.

The project straddles a part of a prominent gravity ridge with accompanying magnetic signatures.

Exploration work undertaken on the tenement to date comprise historical data compilation, geophysical data review and prospectivity assessment.

MRG considers the Davenport Downs EPM to be prospective due to its positive magnetic – gravity response, which the company explained to be characteristic of IOCG-type deposits in the Mount Isa Block.

The depth of cover is understood to be around 400m, so MRG anticipates future exploration to comprise focussed drilling of geophysical (magnetic-gravity) anomalies.

“These newly granted licences will form the focus of MRG exploration efforts in the coming year,” MRG said in its ASX announcement.

“Our strategy has been to apply for ground largely on the margins of the mineralised Proterozoic Mount Isa block, where basement is under cover and there are exploration opportunities for discoveries.”

Email: info@mrgmetals.com.au

Website: www.mrgmetals.com.au

Merger and Acquisition activity

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THE BOURSE WHISPERER: With a bit more confidence creeping into the market there seems to be some increasing activity in the M&A space.

Mungana firms up North Queensland zinc strategy

Mungana Goldmines (ASX: MUX) is set to move ahead with its North Queensland zinc strategy after gainin shareholder approval for its $15 million acquisition of a portfolio of base metal assets, from the Liquidators of Kagara.

The acquisition, which is expected to be completed by the end of July, puts Mungana on track to become a new player in the Australian zinc industry over the next few years.

The portfolio includes one of Australia’s highest grade undeveloped zinc deposits, the King Vol project, which includes a JORC 2004 Indicated Resource of 899,000 tonnes grading 16 per cent zinc, 0.9 per cent copper, 0.9 per cent lead and 42g/t silver for 144,000 tonnes of contained zinc and an Inferred Resource of 1.86 million tonnes grading 9.9 per cent zinc, 0.6 per cent copper, 0.4 per cent lead and 24g/t silver for 184,000 tonnes of zinc.

“This is a transformational deal for Mungana, positioning us with outstanding, high-grade, high quality assets in the zinc-copper space, with the added bonus of having a large porphyry gold-copper asset at Red Dome,” Mungana Goldmines chairman Joe Treacy said.

“We are looking forward to hitting the ground running, with exploration programs set to commence at King Vol within four to six weeks.

“Our objective is to advance this deposit towards development as quickly as we can to take advantage of the outstanding market fundamentals for zinc.”

Chalice acquires the Dubenski gold deposit

Chalice Gold Mines (ASX: CHN) has acquired the Dubenski gold deposit in Ontario Canada for C$700,000 by renegotiating an existing option agreement.
 
The acquisition gives Chalice 100 per cent ownership of the gold deposit located within 10km of the Cameron gold project.

The previous option agreement with the vendor included an exercise price of C$3,500,000 (exercisable on or before 30 April 2017) plus a 2.5 per cent Net Smelter Royalty.

The Dubenski deposit contains an Indicated Resource of 806,000 tonnes at 2.28g/t gold for 59,000 ounces and an Inferred Resource of 392,000 tonnes at 1.44g/t gold for 18,200 ounces at a cut-off grade of 1g/t to a depth of 150m below surface.

Dubenski is located on Chalice’s West Cedartree project, less than 10km to the west of the Cameron gold deposit and provides a potentially open pittable source of material to the existing Resources at the Cameron project.

The key terms and conditions of the acquisition include:

A consideration payment of C$700,000; and

An additional payment on all gold production mined in excess of 70,000 ounces (being US$13 per ounce where the gold price is less than or equal to US$1,500 per ounce and US$16 per ounce where the gold price is greater than US$1,500 per ounce).

“We are very pleased to have renegotiated the acquisition of the Dubenski deposit on favourable terms,” Chalice Gold Mines managing director Bill Bent said.

“Dubenski will make an important contribution to our goal of continuing to grow and enhance the Cameron gold project by securing additional high-grade ounces in the region both through exploration success and acquisition.”

Hillgrove gets government nod for Kanmantoo extension

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THE BOURSE WHISPERER: Hillgrove Resources (ASX: HGO) has had a Program for Environment Protection and Rehabilitation (PEPR), Life of Mine plan at the company’s Kanmantoo copper mine in South Australia approved by the Department of State Development.

Hillgrove said the approval enables the Kanmantoo copper mine to increase production by 75 per cent in processed ore over the original PEPR.

The approval also extends the Kanmantoo mine life out to 2019, based on current mine Reserves, and allows access to additional copper Resources located within the Mining Lease.

 

Source: Company announcement

 

The company explained the new mining lease required for expansion of the Nugent pit was recently granted, adding that the new PEPR approval represents the final part of the approval process.

“Finalising this process has provided a welcome degree of certainty for the current Kanmantoo mine programs and targets,” Hillgrove Resources CEO Greg Hall said in the company’s announcement to the Australian Securities Exchange.

“It confirms the next stage in the planned mine life of the project, continuing employment for the local region, ongoing cashflow and potential for return of value to shareholders.

“Kanmantoo Copper is now commencing a review of exploration potential on its mining lease and broader regional exploration tenement as part of possible future life extensions.

“Some of this will be based on conversion of Resources and exploration target ranges into Reserves, and some will be reviewing the potential for new mineralised zones.

“Our recent acquisition of the exploration and mining option over the historical Kitticoola private mine is a step in this program.”

Website: www.hillgroveresources.com

Aruma expands Bulloo Downs project

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THE BOURSE WHISPERER: Aruma Resources (ASX: AAJ) has increased the area of its Bulloo Downs copper project in Western Australia to more than 2000 square kilometres through the addition of new leases.

The extra leases have been added to an agreement Aruma struck with Atlas Iron (ASX: AGO) in June, through which Aruma has the option to earn up to 100 per cent of a number of leases in the Bulloo Downs area.

Atlas will maintain the iron ore interests and retain a one per cent royalty on future production.

The company is currently negotiating in regards to additional leases with other leaseholders.

Aruma has also pegged an ELA (52/83096) in the southern area.

 

Bulloo copper project leases on geology with structures. Source: Company announcement

 

The newer leases contain extensions of previously announced structures, as well as the additional Mountain Maid, Ned’s Gap, Koode Magi and Keep It Dark copper prospects.

Aruma has data from Atlas and Dynasty Resources (ASX: DMA), which it is now integrating with new surveys to give comprehensive magnetics and HyVista maps.

“With the acquisition of these additional leases, the known trends are now fully contained within the Aruma leases,” Aruma Resources managing director Peter Schwann said in the company’s announcement to the Australian Securities Exchange.

“They also confirm the strike extent of the mapped structures to more than 300 kilometres.

“The company is booked to fly 1700 square kilometre HyVista Multispectral Scanning to define and confirm further mineralisation targets.

“The precious and base metals at all locations add a new dimension to the project.”

Email: info@arumaresources.com

Website: www.arumaresources.com

Carpentaria announces Hawsons JV port access deal

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THE BOURSE WHISPERER: Carpentaria Exploration (ASX: CAP) informed the market the Hawsons iron project Joint Venture has secured port access for up to 12 million tonnes per annum of iron ore concentrate through the existing berths at Port Pirie and has also been granted foundation customer status.

Carpentaria said Flinders Ports and the JV have agreed to jointly fund a rail-port-marine study into the best option for exporting 10 to 20mtpa of iron ore to 180,000 tonne vessels (Cape size) through Port Pirie.

Under the agreement the Hawsons JV will have a first right of refusal for export of up to 12mtpa of iron ore concentrate through the port, conditional upon further study cooperation between the parties.

 

Location of Hawsons iron project and Port Pirie. Source: Company announcement

 

Carpentaria Exploration managing director Quentin Hill said in the company’s announcement to the Australian Securities Exchange.

“Gaining port access is a very significant and important step in the development of Hawsons as the cornerstone of a long lasting, premium iron business,”

“It provides another key element of infrastructure certainty for the project.

“This is a current focus for the JV and we will continue to deliver.

“This agreement not only secures access, it will provide for the right option to increase the capacity of the port with great potential benefits for Port Pirie.”

Carpentaria explained the study will investigate the best option for iron ore concentrate export through Port Pirie including rail unloading, transfer of concentrate to the port, likely by conveyor, and then ship loading using barges.

The study will also increase engineering detail and certainty at the port to a level consistent with the other aspects of the project.

Carpentaria expects the study will commence within the month and take up to four months to complete.

“It is this existing infrastructure and a high-grade, ultra-low impurities product that puts the Hawsons project on a very firm development footing,’ Hill said.

“Especially as lower grade products attract increasingly larger discounts.”

Email: info@capex.net.au

Website: www.capex.net.au

Platina signs agreement with Chinese manufacturer

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THE BOURSE WHISPERER: Platina Resources (ASX: PGM) has signed a Heads of Agreement (HoA) with Chinese manufacturer Inner Mongolia Honfine Zirconium Industry Co Ltd to negotiate both an Off-take Agreement and a Supply, Technology, Processing and Marketing Agreement for the company’s Owendale Scandium project in central New South Wales.

Under the terms of the HoA, Platina and Honfine will negotiate an Off-take Agreement for the supply of 15 tonnes of scandium oxide at a 99.9 per cent purity grade and at a commercially acceptable price.

Although pricing and other terms are yet to be agreed, Platina did point out that within the past four years candium oxide (99.9% purity) has sold within a range of US$1,400 to 3,700 per kilogram.

Platina said the aim of the HoA will be to finalise and execute a binding Off-take Agreement and a binding Supply, Technology, Processing and Marketing Agreement within the next three months.

Both companies will evaluate the viability of transporting scandium concentrates grading 1000ppm or higher from Australia to China to be processed at Honfine’s factory located in Inner Mongolia and marketed throughout China and the world.

Platina indicated it is currently working on a metallurgical test work program to produce high-grade scandium concentrate from the Owendale project, adding the potential flowsheet for scandium concentrate could reduce the project’s capex and opex.

The two companies also intend collaborating to establish the cheapest processing technology required to produce the desired scandium products from Owendale ore.

“The HoA with Honfine heralds a milestone in the commencement of a scandium production industry,” Platina Resources managing director Rob Mosig said in the company’s announcement to the Australian Securities Exchange.

“We look forward to making further announcements regarding advancing the Off-take and Supply, Technology, Processing and Marketing Agreements as soon as possible.”

 

Owendale scandium resource area. Source: Company announcement

 

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) and contains a total in-situ content of 9,100 tonnes of scandium metal.

Email: admin@platinaresources.com.au

Website: www.platinaresources.com.au

Quarter Time Wrap

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THE BOURSE WHISPERER: Quarterly reporting season is always a heavy burden on The Roadhouse’s virtual postman. The latest round was no exception. Here’s a random selection of what some companies had to say.

Ram Resources (ASX: RMR) reported an eventful quarter.

During the June 2014 quarter, Ram secured an option to acquire additional exploration leases covering 410 square kilometres in the Fraser Range belt, bringing its total landholding within the Fraser Range region to 850sqkm of tenements.

The new ground, named the Fraser Range South project, is located within 2km of Sirius Resources’ Centauri and Crux anomalies and covers the contact zone of the southern extension of the Fraser Range complex and the Birrup Zone

Ram’s first Fraser Range drilling program was started at the end of June.

The reconnaissance aircore drilling is hoped to help the company confirm stratigraphy and geological structure.

The next stage is deep Reverse Circulation (RC) drilling to follow up the strongest conductors and targets.

Preliminary assessment of Ram’s new tenements has highlighted a number of high-priority areas for exploration.

The tenements cover approximately 30km of the interpreted Fraser Fault zone, which hosts the Mammoth nickel prospect in the north.

Ram has a geo-chemistry program in progress targeting nickel.

This will include the Fraser Range Fault zone, Fraser Range Complex and 28 VTEM anomalies identified by previous explorers, Ashburton Minerals.

Geological reconnaissance has commenced, with geologists now in the field.

Further work including magnetics and additional soil sampling is scheduled to take place in the September quarter.


Papillon Resources (ASX: PIR) reported an outline of its activities for the recent June quarter.

Papillon entered into a merger implementation agreement with B2Gold Corp. to combine the two companies at an agreed exchange ratio of 0.661 B2Gold shares for each Papillon share held, subject to the satisfaction of certain conditions. The merger will be implemented by way of a scheme of arrangement.

If the Scheme is implemented, Papillon shareholders will hold approximately 26 per cent of the merged entity providing the opportunity to gain immediate exposure to a significant, growth orientated and profitable gold producer with diversified operations whilst still retaining material exposure to the upside potential of the company’s Fekola project located in south western Mali, adjacent to the border with Senegal.

Papillon commenced early site clearing of the plant site and mine services area at Fekola.

The company has identified a number of key areas, primarily in earthworks, to advance Fekola towards production prior to a formal final investment decision being made, following the release of the Definitive Feasibility Study (DFS).

The company completed additional metallurgical test work at Kekola as part of the DFS, which it said supports the previous decision to implement a conventional primary crush, semi-autogenous grinding and ball mill (SABC) circuit and a gravity concentration and a carbon-in-leach (CIL) on gravity tails processing flowsheet for Fekola.

The test work also indicated a number of improvements from the Pre-Feasibility Study (PFS).

New Australian Securities Exchange Listing Rules require Papillon to update its Mineral Resource holdings to comply with the new JORC Code 2012 Edition.

Accordingly, the company has re-estimated its Mineral Resource Estimates (MREs).

The updated Fekola Main Zone MRE of 5.15 million ounces at a lower cut-off grade of 1g/t gold remains unchanged since last reported under the JORC Code 2004 Edition, and the updated Fekola Satellites MRE is now 0.38 million ounces at a lower cut-off grade of 1g/t gold.

Follow-up drilling at the company’s Menankoto Sud project has continued to yield encouraging results.

Menankoto Sud is located approximately 13 kilometres to the north of the Fekola project.

Assay results included 10m at 4.61g/t from 12m, 30m at 2.01g/t from 13m and 7m at 3.22g/t from 40m.

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.

Thiess Sedgman Projects JV awarded $64m contract

Sedgman Limited (ASX: SDM) announced the Thiess Sedgman Projects Joint Venture (TSP) has been awarded a $64 million contract for the Design and Construction of a 7.5 million tonnes per annum (ROM Feed) modular iron ore processing plant at Fortescue Metals Group’s (ASX: FMG) Solomon iron ore mine in Western Australia.

The company explained the Modular Plant to be is an important part of Fortescue’s vision of operating the Solomon mine without the need for a new wet plant at the Firetail OPF.

The Modular Plant will be delivered by the TSP, a project specific joint venture established by Sedgman and Thiess Pty Ltd.

“The contract is the company’s first major iron ore project and represents a significant and successful milestone in its diversification strategy,” Sedgman CEO and managing director Peter Watson said.

“Sedgman and Thiess have an established track record of delivering coal process and materials handling projects over the last 12 years and we are excited to be able to broaden this relationship to the iron ore sector.
 
“The award of this contract followed an Early Contractor Involvement process and is testament to the process design and delivery capability that TSP was able to demonstrate to
Fortescue.

“We look forward to delivering a successful outcome for the project and further strengthening our relationship with Fortescue.”


Aurora greets new shareholder, which enables new stake in Predictive

Aurora Minerals (ASX: ARM) has executed an agreement with African Lion 3 Limited.

African Lion will subscribe for around 15 million fully paid ordinary shares in Aurora for 5.9 cents per share, representing approximately 14.7 per cent of the shares on issue in the company (12.8 per cent post placement).

In turn, Aurora will acquire from African Lion some 67 million fully paid ordinary shares in the capital of Burkina Faso-focused gold exploration play Predictive Discovery (ASX: PDI) in consideration for one cent per Predictive share, representing approximately 17.2 per cent of the fully paid ordinary shares on issue in Predictive.

“The investment in Predictive represents our second strategic investment in gold exploration in West Africa and in particular Burkina Faso,” Aurora Minerals managing director Martin Pyle said.

“Predictive has built a prospective tenement package comprising the Bonsiega project in the Fada N’Gourma greenstone belt situated in the east of the country and along strike from the Samira Hill gold mine, located just inside the Niger border to the north-east.

“Aurora sees this as complementary to the objectives of Golden Rim Resources (Aurora has acquired 19.95 per cent of Golden Rim’s shares with outstanding loan of $1.35M), which is also exploring in Burkina Faso and significantly, in the same greenstone belt.

“As a cornerstone shareholder, Aurora looks forward to working with Predictive to unlock the potential of this highly-prospective jurisdiction.”


TNG signs three-way MoU

TNG Limited (ASX: TNG) has signed a wide-ranging three-way Memorandum of Understanding (MoU) with Hyundai Steel Co., Ltd, part of the Hyundai Automotive Group.

The company said the MoU establishes a potentially company-making funding, development and construction arrangement for its Mount Peake vanadium project in the Northern Territory.

The non-binding MoU – with Hyundai Steel and leading ferro-vanadium producer, Korean-based WOOJIN IND., CO., Ltd – was signed during a visit by a delegation comprising senior executives from both Hyundai Steel and WOOJIN to Perth.

The company said the MoU lays the foundations for TNG to enter into binding agreements with Hyundai Steel for the financing and development of Mount Peake.

“This is a breakthrough development, aligning TNG with one of the world’s largest and most successful steel companies which, in turn, forms part of one of Korea’s dominant industrial conglomerates,” TNG managing director Paul Burton said.

“Together with our strategic partner, WOOJIN, which is a major supplier of ferro-vanadium to Hyundai Steel, this gives the company direct access to one of the largest and most successful steel-making and industrial conglomerates in the world.

“Securing the backing of Hyundai Steel, potentially through a cornerstone investment in the company or the Mount Peake project, represents a major step forward for TNG and Mount Peake and gives us access to a powerful global conglomerate with the ability to assist us in funding and completing the Definitive Feasibility Study and, ultimately, financing and constructing the project.

“We have now established an impressive portfolio of global strategic, commodity and off-take partners led by Hyundai Steel and also including WOOJIN, POSCO, Gunvor Group and Global Pacific Partners.

“We are looking forward to working with all of these groups to finalise binding agreements covering all aspects of the financing, development and operations of Mount Peake.”

Metallum commences trucking ore from Panga

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THE BOURSE WHISPERER: Metallum Limited (ASX: MNE) has commenced trucking copper-bearing material from the Panga mine at the El Roble copper project in Chile to a nearby toll treatment plant.

The Perth-based copper developer said it has received a permit to commence delivery of copper-bearing material to the local ENAMI facilities.

This means Metallum is now able to commence trucking material extracted from the underground Panga mine, where it has a production agreement to extract up to 5,000 tonnes of copper-bearing material per month.

Metallum has also submitted all documentation to obtain the necessary mine operation permit to commence underground mine work at the Paraguay mine, located one kilometre from Panga.

The company expects to receive this licence in August.

“Having the first trucks of copper-bearing material delivered to the mill is an important milestone for Metallum as we work towards executing our strategy of funding long-term growth from small-scale production,” Metallum managing director Zeff Reeves said in the company’s announcement to the Australian Securities Exchange.

“Our grade control sampling has delineated a small high-grade zone on the 956S level at Panga, on which we have begun stoping.

 

Level plan of the Panga mine showing location of the high-grade copper
zone where MNE has commenced vertical mining and target zone to the
south-west of the advancing 956S drive. Source: Company announcement

 

“This high-grade zone is the first area we have commenced work on to provide a steady flow of material which we can truck to the mill.

“Now we have commenced trucking, our plan is to continue to increase deliveries over the coming month as the 956S stope is extracted.

“Mining at Paraguay will commence once we have all the necessary permits in hand.

“The big advantage we have at Paraguay is there is mineralised material ready for stoping already exposed, which should provide an initial 1,500 to 2,000 tonnes, and as soon as we commence work there, we will be moving material that can be trucked to the mill immediately.”

Email: admin@metallum.com.au

Website: www.metallum.com.au

Doray acquires Gnaweeda project

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THE BOURSE WHISPERER: Doray Minerals (ASX: DRM) has reached an agreement with Archean Star Resources Australia, a subsidiary of TSX-V-listed Transatlantic Mining Corporation.

The deal will result in Doray purchasing a majority interest in the Gnaweeda gold project, located in the Northern Murchison region of Western Australia.

The Gnaweeda tenements are located approximately 10 kilometres south-east of Doray’s high-grade Andy Well Gold Mine, which is currently in production.

 

Location and geology of the Gnaweeda gold project in relation to the
Andy Well gold project and other Doray exploration projects. Source:
Company announcement

 

Doray described Gnaweeda to be an advanced, high-grade exploration project with existing walk-up drill targets based on previously identified high-grade gold mineralisation.

The project tenements cover almost the entire Gnaweeda greenstone belt, the next greenstone belt east of the Meekatharra belt.

“A bit like Andy Well, Gnaweeda has been relatively under-explored despite some pretty exciting historical drill results,” Doray Minerals managing director Allan Kelly said in the company’s announcement to the Australian Securities Exchange.

“The game changer for Gnaweeda will be the ability to leverage off the existing mining and processing infrastructure at Andy Well.

“Doray believes that with systematic exploration, the project could provide additional high-grade ore sources for Andy Well in the near future.”

Doray explained the project tenements are subject to a series of existing Joint Venture Agreements between Archean Star, Teck Cominco Australia and Chalice Gold Mines.

The upshot of all that is Archean Star has earned 100 per cent of Teck’s interest in the project, being an 88 per cent interest in the two main tenements (Chalice 12 per cent) and a 100 per cent interest in the remainder.

Teck retains a clawback right to 75 per cent of the project in the event of the delineation of a JORC-compliant Resource in excess of one million ounces of contained gold, or, should Teck not elect to clawback, a 10 per cent Net Profit Interest.

In consideration for Archean Star’s interest in the project tenements, Doray will make a $500,000 cash payment to the Canadian company.

A further $500,000 payment will be payable to Archean Star upon the declaration of a JORC-compliant Mineral Resource in excess of 150,000 ounces of contained gold at Gnaweeda.

Milestone payments, each of $250,000, will be payable upon production increments of 50,000 ounces from the project, to a maximum of $1 million.

The Agreement remains conditional upon satisfaction of several items, including the waiving of an existing third-party first right of refusal.

Email: info@dorayminerals.com.au

Website: www.dorayminerals.com.au