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.

MinRes confirms buying stake in Aquila

Mineral Resources (ASX: MIN) has confirmed its acquisition of 52,640,248 shares in Aquila Resources (ASX: AQA).

MinRes announced a takeover bid for Aquila in May, before which it said it had already invested time developing a business case to deliver a fit for purpose solution for the West Pilbara iron ore project (WPIOP).

MinRes said it has now finalised its total mine to port development plan for the WPIOP (which includes all processing and mine related infrastructure as well as the supply chain through to shiploading) and is prepared to enter discussions with the project stakeholders with a view to entering lump sum contracts for construction and delivery of the port and rail infrastructure and build, own and operate arrangements in respect of the development and operation of the mines on attractive terms relative to the project parameters released by Aquila in October 2012.

“Mineral Resources has the proven ability to develop world class, large scale iron ore projects on a fixed cost basis in the shortest possible time,” Mineral Resources managing director Chris Ellison said.

“We are confident that we can play an important role in delivering the WPIOP on attractive terms through building the port and other infrastructure for the project and build, own and operate arrangements in respect of the mine, which we have successfully employed previously.

“We have the financial capacity to make a meaningful capital contribution towards the development of the project and will now proceed to engage with all major stakeholders including Aquila and Baosteel to facilitate the best outcome possible.

“The board of Mineral Resources also considers that our involvement in the WPIOP is an outstanding opportunity to secure additional long term build own operate contracting opportunities for our core contracting businesses.”


Phar Lap IOCG project – MOU with Antofagasta

Monax Mining (ASX:MOX) has signed an MOU with a wholly-owned subsidiary of major Chilean copper producer Antofagasta for the Phar Lap Iron-Oxide Copper-Gold (IOCG) Project, located on the margin of the Mt Woods Inlier in northern South Australia.

Monax announced its acquisition of a 100 per cent interest in the Phar Lap tenement in January 2012.

In 2008, an extensive geophysical program was conducted over the project which included airborne magnetic, radiometric, electromagnetic and ground gravity data.

A review of all data outlined two prominent IOCG-style anomalies.

Comparative 3D inversion modelling has demonstrated that key characteristics of the Phar Lap data (anomaly PLDD002) are very similar to those generated within available data over the Carrapateena deposit; in density volume product, density contrast, dimensions and depth.

Under the MOU, Antofagasta will fund early stage exploration including access approvals and a detailed infill gravity survey over the two anomalies.

Antofagasta may then elect to proceed to a Farm-In Agreement to earn 70 per cent interest in the tenement by funding exploration to a value of US$2 million within three years.

An Aboriginal Heritage clearance and gravity survey are planned for July-August 2014.

Arafura updates Nolans financials

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THE BOURSE WHISPERER: Arafura Resources (ASX: ARU) has updated the financial projections for the company’s Nolans rare earths project in the Northern Territory.

The company said the projected economics for the project remain attractive despite a decline in rare earth prices.

The project economics include a net present value (NPV) of $2.045 billion and an internal rate of return (IRR) of 21.4 per cent.

The company has estimated Nolans to generate an after-tax payback of capital within five years of operations.

The commercial viability of the project has been boosted by a number of large-scale cost saving initiatives, which reduced the forecast capital cost of the project by over $500 million, or 26 per cent.

These initiatives are also expected to lower the operating costs by nearly $100 million per annum, or 24 per cent over the 20-year life of the project.

 

Source: Company presentation announcement

 

Specifically, these initiatives include the relocation of the RE Intermediate Plant to the mine site in the Northern Territory, selection of an offshore site in a mature chemical precinct for the RE Separation Plant, and simplification of the processing configuration and supply chain.

“Difficult external conditions are impacting companies all across the resources sector,” Arafura Resources managing director Gavin Lockyer said in the company’s announcement to the Australian Securities Exchange.

“The challenge for management is to take action to optimise project economics and maximise returns for shareholders.

“I am confident our actions to date have weathered the worst of the storm for the company and the project economics for Nolans will improve even further as we continue our focused efforts to drive costs down, and benefit from an expected uptrend in global pricing, particularly in those rare earths the world needs and Nolans has in abundance.

“Our engagement with end users, most recently in Japan and North America, continues to reinforce my confidence in the rare earths market, and in particular the necessity for products that will be delivered by Arafura from Nolans.”

Arafura said more project cost savings are expected from an ongoing optimisation program.

The company also indicated it plans to acquire an offshore site for the RE Separation Plant next year.

Construction of Nolans is forecast to commence mid-2016, subject to the company securing the necessary finance.  

Email: arafura@arafuraresources.com.au

Website: www.arafuraresources.com.au

Ramelius to acquire Kathleen Valley gold project

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THE BOURSE WHISPERER: Ramelius Resources (ASX: RMS) has extended its gold operations in Western Australia with the acquisition of the Kathleen Valley gold project.

Ramelius has signed a Sale and Purchase Agreement with Xstrata Nickel Australasia Operations (XNAO), a subsidiary of Glencore, and with Giralia Resources.

The company will acquire 100 per cent of the XNAO Kathleen Valley tenements and 100 per cent of the tenements held by XNAO and Giralia as the participants in the Kathleen Valley and Mount Harris Joint Ventures.

The XNAO Kathleen Valley tenements are located 50 kilometres north of Leinster in Western Australia and contain a JORC (2012) Mineral Resource of 130,000 ounces of gold in three deposits – Mossbecker, Yellow Aster and Nils Desperandum.

 

Kathleen Valley gold project land package, relative to the recently
acquired Vivien gold project at Leinster. Source: Company announcement

 

Collectively the package will be referred to as the Kathleen Valley gold project.

“The acquisition of the Kathleen Valley gold project will add significantly to Ramelius’ recent acquisition of the Vivien gold project, enable cost reduction synergies across both projects and significantly build on the company’s strategy to create a high yielding, positive cash flow mining business centred on its established Mt Magnet milling operations,” Ramelius Resources managing director Ian Gordon said in the company’s announcement to the Australian Securities Exchange.

Ramelius said it intends to complete further resource definition drilling within the next six months to upgrade the resources to Indicated, for use in future mine planning studies.

Scoping studies undertaken on behalf of XNAO have indicated potential for high-grade open pit developments with low capital costs.

Upon completion of the necessary paperwork, Ramelius will pay XNAO $3.645 million cash for 100 per cent of its Kathleen Valley tenements as well as $405,000 cash for 100 per cent of the adjacent Kathleen Valley and Mt Harris Joint Ventures.

Email: info@rameliusresources.com.au

Website: www.rameliusresources.com.au

AMMG study delivers HPA cost savings

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THE BOURSE WHISPERER: Australia Minerals and Mining Group (ASX: AKA) has completed an integrated plant study based on the company’s own kaolin to high purity alumina (HPA) process flowsheet.

The process has been researched and developed by AMMG, while the study was conducted by its specialist engineering consultants.

AMMG said the study’s findings indicate the process contributes substantial cost savings to capital and operating expenditure for the company’s proposed HPA processing pilot plant.

AMMG explained the objective of the study was to further develop major operating parameters within the process flowsheet by incorporating several efficiencies.

The Study was conducted in conjunction with an optimisation test work program, which is nearing completion.

Using a base case of two tonne per day (or 700 tonnes/year), the plant’s capex is estimated at under $10 million, which includes a 30 per cent contingency.

The study’s capex/opex estimations for the plant are notably less than the figures determined by a previous pilot plant study that was completed in December 2013.

The company placed the results in the context of negotiating potential off-take agreements, saying although the study’s actual opex figure will remain commercial-in-confidence at this stage, it can be approximated at substantially less than $20 per kilogram.

Based on major industry producers’ reported HPA prices of $54/kg up to $300/kg (depending on purity and other specifications) the study’s estimated opex would enable AMMG to deliver a potentially competitively priced product.

“The positive findings of the study are highly encouraging as we move forward advancing funding arrangements for the development of the plant,” AMMG managing director Ric Dawson said in the company’s announcement to the Australian Securities Exchange.

“We are satisfied the study’s findings are in line with our expectations and understanding of our process and today’s HPA market.”

Email: info@.ammg.com.au

Website: www.ammg.com.au

Elvis has left the building

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THE BOURSE WHISPERER: The regular game of musical chairs continues within the boardrooms across the resources industry.

Appointment of chief executive officer

Yellow Rock Resources (ASX: YRR) announced the appointment of David ‘Lorry’ Hughes as chief executive officer.

Hughes is an economic geologist and corporate executive with over 20 years’ experience in Australia and internationally across all aspects of the resources industry.

He is a geology graduate from Curtin University in Western Australia and has worked in a number of roles in Australia in various gold, uranium and base metal mining operations including technical services manager of the Ranger Uranium Mine in the Northern Territory for Rio Tinto.

More recently, Hughes was managing director and CEO of ASX-listed South Boulder Mines where he oversaw the discovery and initial development of the Colluli potash project in Eritrea.

In addition he managed STB’s Australian exploration portfolio, which resulted in the Rosie Ni-Cu-PGE discovery by JV partner Independence Group in the Duketon Greenstone Belt Western Australia.

Managing director resignation & appointment

Admiralty Resources (ASX: ADY) has accepted the resignation of Hanrui Zhong as managing director and CEO. Zhong remains on the board as a non-executive director.

Admiralty has appointed Mrs Qing Zhong as managing director and CEO.

Mrs Zhong has been involved in capital management and investment businesses for over 10 years.

During that time she has held several senior management positions in private companies in Shanghai, China, engaged in property investment and development.

She has been responsible for mining investments in Mexico and Australia, and currently holds a directorship in MNKO Resource Company in Mexico.

Mrs Zhong is also director of Jin Xin International Pty Ltd, Sun Investment Pty Ltd and Sino Mining Holdings Pty Ltd in Australia, and holds a degree from the Shanghai Normal University of Arts.


Managing director resignation

Marmota Energy (ASX: MEU) announced that Dom Calandro has resigned as managing director.

Calandro has been MD of Marmota since 2007 and was instrumental in driving the strategy of the company, including the building of a healthy portfolio of South Australian exploration assets, a highlight of which has been recent high-grade copper results at its West Melton project on the Yorke Peninsula of South Australia.

Marmota is conducting a search with the intention of appointing a new MD in the near term.

In the interim, Virginia Suttell, the company’s chief financial officer, has been appointed acting CEO.


Appointment of chief executive officer

Celamin Holdings (ASX: CNL) announced the appointment of Nicholas Clift as chief executive officer with full authority to manage the company’s affairs and drive the progression of the bankable feasibility study for the Chaketma phosphate project in Tunisia.

David Regan has retired as managing director and will remain as an executive director to focus on advising and assisting Clift with issues around the company’s future capital needs.


Appointment of executive director

Global Resources Corporation (ASX: GRM) has appointed Mark Savich as an executive director.

Savich has been a non-executive director of the company since 2012 so it anticipates he is well positioned to undertake this executive role.

Savich is a Chartered Financial Analyst with over 10 years of experience dealing with the technical and corporate aspects of resource companies, from explorers to producers.

Most recently he has been a resources analyst at Blackswan Equities.

He is expected to formally commence his executive role in July 2014.


Board changes and appointment of interim CFO

Pluton Resources (ASX: PLV) has restructured its Board of directors and management.

The company announced the resignation of Richard Mehan as chairman and director and Tony Schoer and Russell Williams as non-executive directors and the appointment Dr Paul D’Sylva as a director and interim chairman.

Dr D’Sylva is a founding director of Empire Equity Limited, where he has led and arranged over $500 million in funding transactions for a diverse range of resource and energy companies in equity, debt and structured financings on a proprietary basis as well as from a network of institutional funding partners.

Michael Wyer has been appointed as interim CFO of the company.


Board changes

Emergent Resources (ASX: EMG) has appointed Faldi Ismail, to its Board of directors.

Ismail is currently the CEO and deputy chairman of Kalimantan Gold Corporation, director of ASX listed companies WHL Energy (ASX: WHN) and Style Limited (ASX: SYP).

He is also founder and operator of Otsana Capital, a boutique advisory firm specialising in mergers and acquisitions.

Patrick Burke has resigned from the Board of directors and will also be stepping down as company secretary with effect from 30 June 2014.

Kevin Hart will take up the position of company secretary from this date.


Restructure of Board and Management

Auroch Minerals (ASX: AOU) has shuffled the seating arrangements around the company’s Boardroom table.

Dean Cunningham will step down as managing director, but will remain on as a consultant assisting in securing ongoing project financing from South African Banks.
 
Glenn Whiddon will become executive chairman.

Professor Jim Porter is to assume the role of chief operations officer while the company also announced the appointment of Nicholas Ong as non-executive director.

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.

Progress at Ashburton JV

Dragon Energy (ASX: DLE) and its Joint Venture partners, Shandong Energy Australia and Shandong Lunan Geo-Engineering Exploration Institute have completed Stage 1 of the farm-in and JV commitment for the Ashburton project.

The Ashburton project is located in the Ashburton basin south of the Pilbara region in Western Australia and is prospective for gold, iron and base metals mineralisation.

Both Shandong Energy and Lunan will each earn a 15 per cent interest in the project (30 per cent combined interest).

Shandong Energy and Lunan have decided to progress to Stage 2 of the project by agreeing to jointly fund an additional $700,000 of exploration expenditures.

Upon the completion of Stage 2, Shandong Energy and Luan will each earn an additional 10 per cent interest taking their combined interest in the project to 50 per cent.

Dragon confirmed the Stage 2 funds have been received in a Dragon controlled JV bank account in Australia.


Placement with Antofagasta

Monax Mining (ASX: MOX) is undertaking a $436,314 private placement with a wholly-owned subsidiary of major Chilean copper producer, Antofagasta plc.

Antofagasta will become Monax’s largest shareholder via the placement of just over 17 million shares at 2.55 cents per share.

Monax will use the funds to progress exploration at the company’s Parndana project on Kangaroo Island in South Australia, as well as for general working capital.

“We are delighted to have Antofagasta as our major shareholder,” Monax Mining managing director Gary Ferris said.

“Monax looks forward to commencing its upcoming drilling programs on the Punt Hill and Millers Creek projects under current exploration agreements with Antofagasta in the next three months.

“The placement funds provide capital for Monax’s exploration activities at its 100 per cent-owned Parndana project on Kangaroo Island, with an induced polarisation survey planned to commence within the next three weeks.”


Hillgrove acquires rights over Kitticoola copper-gold prospect

Hillgrove Resources (ASX: HGO) has signed a Deed of Assumption and Assignment to take over the Option Agreement from CN Resources over Private Mine No 53 located near Palmer, South Australia, approximately 35 kilometres from Hillgrove’s 100 per cent-owned Kanmantoo Copper Mine.

The Option Agreement with the owner of Kitticoola provides Hillgrove with the exploration rights and any potential future mining rights over the prospect, subject to certain conditions within the Option Agreement.

Hillgrove paid a nominal cash amount to CN Resources for the Rights over the prospect.

The Kitticoola Mine was operated at various times from 1846 up to 1971 as an underground gold and copper mine, producing approximately 30,000 tonnes of gold ore and 7,000 tonnes of copper ore.

More recently in 1980, CRA took underground samples at the mine which appeared to confirm grades presented by previous works.

On this basis CRA drilled four diamond holes, all of which encountered sub economic mineralisation.

During 1977 and 1981, exploration work by others evaluated remnant mineralisation with average grade of 5.24g/t gold and 0.55 per cent copper over 1.4m in the oxide zone, and 14.52g/t and 4.45 per cent copper over 1.5m in the sulphide zone.

In 2007 Hillgrove exploration geologists undertook reconnaissance and due diligence work with the permission of the private mine owner.

This work confirmed the previous publicly available information and published results in current surface workings.

Hillgrove intends to carry out initial exploration work over the next year or so to determine the possible extent and depth of the mineralisation.

Gryphon awarded Banfora Mining Licence

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THE BOURSE WHISPERER: Gryphon Minerals (ASX: GRY) has been granted a Mining Licence (Exploitation Permit) for the company’s 100 per cent-owned Banfora gold project in Burkina Faso.

Burkina Faso Minister of Mines and Energy, Mr. Lamoussa Salif Kabore said the Ministry was pleased to award Gryphon Minerals with a mining exploitation permit to extract gold from Banfora.

The Minister said Gryphon was the first Australian company in recent times to undertake exploration Burkina Faso and it will now be the first to be granted a mining permit.

He went on to say the Ministry of Mines and Energy was looking forward to the commencement of development and commissioning of the mine, which has strong and ongoing local support.

“Being permitted to develop and operate the Banfora gold project is a significant achievement and milestone for Gryphon,” Gryphon Minerals managing director Stephen Parsons said in the company’s announcement to the Australian Securities Exchange.

“It confirms the Burkina Faso Government is committed and supportive of the development of a two milioon tonnes per annum Heap Leach plant at Banfora.

“I look forward to providing further updates at this exciting time for Gryphon, as we transition from gold explorer to producer.”

The permit encompasses all four main deposits making up the Banfora gold project – Nogbele, Fourkoura, Samavogo and Stinger.

It is valid for Heap Leach processing extraction of gold and is also valid for an initial 20 year period, which can be extended under the country’s Mining Code for successive terms of five years each until complete exhaustion of all deposits.

With the receipt of the licence, Gryphon now has achieved all regulatory approvals necessary to commence the development phase of the Banfora gold project.

The Banfora project currently boats a Resource estimate of 3.6 million ounces of gold, which Gryphon claims to make it one of the largest undeveloped projects in West Africa.

Email: admin@gryphonminerals.com.au

Website: www.gryphonminerals.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.

Non-Binding Heads of Agreement

Northern Mining (ASX: NMI) announced its wholly-owned subsidiary, NMI Limited has entered into a non-binding Heads of Agreement to investigate the acquisition of a 90 per cent interest in the business of PT Bintang Cipta Persada (BCP), a company incorporated in Indonesia.

NMI Limited is to complete its due diligence investigations and enter into a Conditional Sales and Purchase Agreement upon satisfactory completion of the due diligence investigations and obtaining governmental regulatory approval.

NMI will endeavour to complete the due diligence within 6 months from the signing of the HOA.

The purchase consideration is to be negotiated and is subject to further discussion and advice.

BCP holds a number of mining concessions in minerals such as gold, coal and nickel in Sumatra and Balikpapan in Kalimantan
Province.

BCP is experienced in the identification of high quality mineral assets in Indonesia.

Northern Mining said it hopes, through this acquisition, it will be able to develop a portfolio of world-class resource projects in Indonesia.

Wild Acre signs option agreement

Wild Acre Metals (ASX: WAC) has entered into a formal agreement with Teck Peru S.A., a subsidiary of Canadian major Teck Resources Limited.

The agreement enables Wild Acre to farm in to Teck’s Salvador silver-gold project, which adjoins the company’s Sambalay project in Southern Peru.

“We are very pleased to have secured a deal over this ground which Wild Acre sees as strategic to its exploration in the area where we are building a geological understanding of the mineralised system which is leading us towards a significant silver gold discovery,” Wild Acre Metals executive chairman Grant Mooney said.

“We can now extend our exploration program over our boundary and broaden our thinking as to what is driving the mineralisation.”

Under the agreement, Wild Acre can earn a 100 per cent interest in the project by spending US$2 million in exploration expenditures within three years, including US$250,000 over the next 12 months and Teck retains a 2 per cent net smelter returns royalty and is entitled to a production decision bonus of $500,000.

Additionally, Wild Acre will issue to Teck 2 million shares and 2 million unlisted options with an exercise price of 10 cents and an expiry date three years from the date of issue (subject to escrow).

Tanami Farm-in and Joint Venture agreement

Ramelius Resources (ASX: RMS) has finalised terms with Tychean Resources (ASX: TYK) for Ramelius to farm-in on a package of two granted Exploration Licences (ELs) and six EL applications in the Northern Territory.

Farm-in and Joint Venture Agreement Terms:

Ramelius will pay Tychean $50,000 cash upon execution of the agreement to assist Tychean facilitate the grant of the Highland Rocks and Officer Hills South exploration licences within the land package;

Subject to all necessary statutory and regulatory approvals plus the grant of the two Highland Rocks and Officer Hills South ELs Ramelius will commit to a minimum exploration expenditure of $100,000 within 2 years;

Ramelius may earn an 85 per cent interest in the project by exploration expenditure of $500,000 within 3 years; and

Tychean will be free carried until a Decision to Mine at which time it may elect to contribute its interest or convert to a 1.5 per cent NSR.

Tychean’s tenement package was originally applied for in 2010 to 2011.

Ramelius will now advance exploration over the tenements.

Pacifico Minerals applies for Colombian copper-silver project

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THE BOURSE WHISPERER: Pacifico Minerals (ASX: PMY) has registered an exploration license application (PE5-08001) for the Natagaima copper and silver project in Colombia.

The Natagaima concession is situated in the department of Tolima, approximately five kilometres west of the Magdalena River which drains into the Caribbean Sea. It is located within the Middle Cauca Porphyry Belt.

 

Natagaima project location map. Source: Company announcement

 

Pacifico explained Colombia currently operates a ‘first right’ system with its license application process.

The company emphasised it is able to confirm it was the first to register its application upon the area becoming available for application.

The 5,236 hectare concession is located near existing electrical lines, roads, rail line and a major river.

According to Pacifico the central part of the Natagaima concession was previously sampled by INGEOMINAS, the Colombian Institute of Geology and Mining.

Positive geochemical anomalies were discovered that are open in several directions, which Pacifico considers to demonstrate the prospectivity of the licence area.

Mapping and 164 rock samples by INGEOMINAS outlined several copper-silver anomalous areas and encountered a number of mineralisation occurrences throughout the concession.

Sample results include:

5.79 per cent copper and 45.4 grams per tonne silver;

3.55 per cent copper and 19.4g/t silver;

2.83 per cent copper and 30.8g/t silver;

2.78 per cent copper and 22.8g/t silver; and

1.12 per cent copper and 113.4g/t silver.

Pacifico outlined a program of exploration work, which it anticipates to commence in the near term, which will consist of geological mapping, soil and rock geochemical sampling, the design of an airborne geophysical survey for definition of Jurassic porphyritic intrusives and regional structures characterised by their magnetic and radiometric signatures.

Email: info@pacificominerals.com.au

Website: www.pacificominerals.com.au

Tiger kicks off Kipoi copper

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THE BOURSE WHISPERER: Tiger Resources (ASX: TGS) has started copper cathode production at the company’s Kipoi copper project in the Democratic Republic of Congo (DRC).

The company announced cathode production commenced on 25 May, 2014 having completed construction and commissioning of its Stage 2 solvent extraction electro-winning (SXEW) plant at Kipoi.

 

Source: Company announcement

 

Tiger indicated it expects the SXEW plant will reach its full production capacity within three months with production of 25,000 tonnes of copper cathode anticipated in its first full 12 months of operation.

Production of copper concentrate is continuing at the company’s Stage 1 heavy media separation (HMS) plant at Kipoi, which is targeting production of 39,000 tonnes of copper in concentrate before ceasing operation early in 2015.

“Construction of our SXEW plant at Kipoi commenced in January 2013 so we are delighted that it is in production well ahead of our original start date and anticipate strong operating performance from the plant,” Tiger Resources managing director Brad Marwood said in the company’s announcement to the Australian Securities Exchange.

“The start of cathode production has been seven years in the planning, so to achieve an on-time-and-within-budget result is an exceptional performance.

“Our performance in the DRC reflects the DRC government’s strong commitment to the resource sector.”

Email: admin@tigerez.com

Website: www.tigerresources.com.au