THE BOURSE WHISPERER: IronClad Mining (ASX: IFE) has received approval from the Government of South Australia for the company’s planned development at the port of Lucky Bay on the Eyre Peninsula.

This is the final approval the company was waiting to receive , which means it is now able to commence work on the Wilcherry Hill iron ore project, an 80 per cent : 20 per cent Joint Venture with Trafford Resources (ASX: TRF).

IronClad explained the application was made in order to amend a requirement that it transports ore in closed containers from the mine site, 40 kilometres North of Kimba, to the wharf side at Lucky Bay.

The application also requested the establishment of a modest bulk ore stockpile facility at the port and a reduction of required container numbers from over 3000 to 250, which the company said
would greatly reduce the project’s financial impost.

“The amendment application resulted in an additional 46 items requiring significant further input by IronClad / Sea Transport Corporation (STC) on issues such as (but not limited to) dust, acoustics and stormwater, including data gathering, modelling and the formulation of detailed operational control management plans,” IronClad Mining said in its ASX announcement.

“The company’s comprehensive response to all questions has allowed the Minister for Planning to approve IronClad’s port development plans, subject to the implementation of normal operational conditions and environmental safeguards.”

IronClad has completed a 12 month review of the project’s economics, which has resulted in the start-up capital requirement for Stage 1 remaining close to budget at approximately $15 million, despite operating costs being trimmed by approximately 25 per cent.

The company admitted the purchase and construction of a company-owned and run crushing plant is likely to add a further $6 million to the start-up price tag, however it will also create worthwhile operating cost savings.

“Total capital requirement, including contingencies will, therefore, be in the order of $22 million,” IronClad said.

“The main capital works of approximately $6 million to $7 million will be at the port of Lucky Bay.”

IronClad explained it has been involved in negotiations to debt finance the remaining capital for some time, however, these have been somewhat hamstrung due to the uncertainty over the port approvals.

With that approval being stamped, IronClad anticipates finance negotiations will gather some momentum.

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THE BOURSE WHISPERER: This week the junior mining company Boardroom shuffle sees a former state Premier find a new seat.

Executive Movements

Australian Bauxite Limited (ASX: ABZ) has made a few interesting changes to its board of directors as a consequence of a recent change in major shareholding.

Former Tasmanian Premier, Paul Lennon has accepted an appointment to the board as non-executive director.

Besides serving as Premier of Tasmania for four years until 2008, after serving as Treasurer between 2004 and 2006, Lennon has experience in the resources sector.

He was the Minister for Infrastructure, Energy and Resources (1998-2002), and later Minister for Economic Development, Energy and Resources (2002- 2004) and Deputy Premier of Tasmania (1998-2004).

Peter Meers advised the company he will retire from his position as executive deputy chairman and director at the close of this calendar year.

Meers was the founding chairman of ABZ, when the company first listed on the ASX in December 2009.

Wei Huang has also advised of his retirement at the close of this calendar year after four years of service.

Mr Huang has contributed to the company as a non-executive director both at board and committee level.

Appointment of Finland managing director

Altona Mining Limited (ASX: AOH) announced the appointment of Antti Pihko as managing director, Finland effective 1 February 2014.

Pihko will be part of Altona’s senior management team reporting directly to the company’s group managing director, Dr Alistair Cowden.

Management Changes

Apollo Minerals (ASX: AON) advised that Dominic Tisdell has been appointed chief executive officer.

Tisdell, previously chief operating officer, as part of this change will step down from the Board of Apollo to focus on the technical development of the company’s projects.

Board and Management changes
 
Alumina Limited (ASX AWC) had advised that John Bevan will retire as chief executive officer and a director of the company on 31 December 2013.

Peter Wasow, currently a director of Alumina Limited, will succeed Bevan as CEO.

Peter Wasow has over 30 years of experience in the resources and energy sectors, including as chief financial officer and executive vice president of Santos, and more than 20 years with BHP, including as vice president, finance.

Board changes

Leyshon Resources (ASX: LRL) advised that John Fletcher has resigned from the Board of directors.

Richard Seville, a non-executive director of the company, has agreed to assume the position of non-executive chairman during the company’s transition period following the departure of Fletcher.

Director resignation

Fertoz Limited (ASX: FTZ) announced that non-executive director Peter Bennetto has resigned from the Board.

Bennetto has been a non-executive director of Fertoz since December 2010.

Director resignation

Ken Boundy has advised Hudson Resources (ASX: HRS) of his resignation as a director, effective immediately.

“I have appreciated the opportunity to serve on this board since early 2010, and wish the company well in the future,” Boundy said.

Boundy said his decision allows him to further focus on his other corporate interests and responsibilities.

Resignation of Director

Exalt Resources (ASX: ERD) advised the market that Robert Crossman has resigned from the company’s Board and will not be standing for election at the company’s 2013 Annual General Meeting.

Appointment of non-Executive Chairman

Renaissance Minerals (ASX: RNS) has appointed Alan Campbell as an independent non-executive chairman.

Campbell is a geologist, with over 30 years of extensive experience and knowledge in the resources sector.

Campbell was recently managing director of Papillion Resources during the discovery of the multi-million ounce Fekola gold deposit in Mali.

Renaissance said following this appointment, Dave Kelly will remain as a non-executive director of the company.

“We are delighted to have attracted someone of the calibre of Alan as an independent non-executive chairman of the company,” Renaissance Minerals managing director Justin Tremain said.

“He has a proven record of large scale gold discoveries and has extensive experience in working in emerging countries, including Asia.

“He brings to the company additional corporate and technical skills that will be invaluable to the company as we advance the Cambodian gold project.”

Appointment of in-country management: Peru

Platypus Minerals (ASX: PLP) has appointed a senior in-Peru management team to oversee the company’s Peruvian operations.

Gary Anderson will take on the role of general manager-Peru, and Zbigniew ‘Adam’ Szybinski will lead exploration in the role of exploration manager-Peru.

Both men are former senior executives of Canadian company High Ridge Resources Inc., which undertook initial exploration of the Chanape area during its 2007–2009 Peruvian campaign in the San Mateo mining district.

Anderson, as president and CEO of High Ridge, and Szybinski, as VP Exploration.

 

THE BOURSE WHISPERER: Latin Resources (ASX: LRS) has acquired the Borborema iron ore project from Rio Tinto Exploration, Brazil (Rio Tinto Desenvolvimentos Minerais Ltda).

The company said the acquisition was in line with its stated strategy and objectives of identifying Iron ore projects in South America if the opportunity arose and if the project identified was close to port and infrastructure.

 

Railroad infrastructure in the northeast of Brazil. Source: Company announcement

 

Latin considers the Borborema iron ore project in Brazil fits the bill and has the potential for near term production of iron ore in conjunction with a suitable joint venture partner.

The project was suggested to Latin Resources by its exploration manager, Carlos Spier, who has been conducting exploration work over a six month period in the Rio Grande do Norte State.

His suggestion came after he had completed extensive due diligence on the project.

“We are very pleased to have been able to capitalise on Rio Tintó’s exploration work in this very exciting new iron ore district in Brazil,” Latin Resources managing director Chris Gale said in the company’s announcement to the Australian Securities Exchange.

“This move into Brazil fits in with Latin Resources’ strategy of developing projects close to Port and infrastructure to enable near term production.”

The northeast of Brazil has only recently been explored for iron ore and several new projects have been developed in the region.

The Rio Grande do Norte State hosts two iron ore mines: the Bonito mine, owned by MHAG and the Saquinho Mine, operated by Zamin Resources.

The consideration payable to Rio Tinto is US$200,000 plus taxes and legal costs (approx. US$45,000) and a three per cent net smelter return royalty for 24 exploration claims (36,158 hectares) and four application claims (4,325 hectares).

Email:
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Website:
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THE BOURSE WHISPERER: They say that earning 50 per cent of a project is better than earning 50 per cent of no project.

Plutonic Dome Gold Project Farm-In Joint Venture

Ord River Resources (ASX: ORD) has entered into a Farm-in Agreement and Joint Venture to earn up to a 75 per cent interest in the Plutonic gold project in Western Australia from Dampier Gold (ASX: DAU).

“This transformational agreement marks the beginning of Ord’s strategy to enter into the million ounce plus gold resource category and moves Ord forward towards becoming a producer in the future,” Ord River Resources managing director Frank Zhu said.

Under the terms of the JV, Ord will sole fund a minimum of $6 million in project expenditure over two years in return for up to 75 per cent interest in the Plutonic Dome tenements.

Ord is required to sole fund at least $2 million in project expenditure within the first nine months of the JV to earn 30 per cent, after which it can elect to continue or stop sole funding.

Ord will be appointed as the manager for the sole funding period and thereafter, whichever party has the highest JV interest will be the manager.

Each party will have a first right of refusal over the interest of the other party under the JV Agreement.

“We look forward to working closely with Ord to maximise the near term potential of the
Plutonic Dome project,” Dampier Gold managing director Richard Hay said.

“Over the past few months the company has been reviewing the results of its cutting edge regional 3D prospectivity model recently developed for the entire Plutonic – Marymia greenstone belt.

“A number of high-priority targets have been identified and undergone preliminary evaluation.

“Significant expenditures are now required to effectively drill test these targets. It is envisaged that Ord will address high-priority targets in its work programs.”

Southern Hemisphere inks Chilean JV

Southern Hemisphere Mining (ASX: SUH) has executed a 50/50 Chilean copper/gold joint venture with global miner Lundin Mining Corporation (TSX: LUN).

The new JV wasted no time by immediately moving to secure two new high-quality acquisitions.
 
The new JV – to be known as the Los Rulos Joint Venture – builds on and expands an existing Strategic Alliance and current JV Southern Hemisphere has with Lundin Mining at the Llahuin project, where Lundin Mining is sole funding exploration and has the right to earn up to a 75 per cent interest.
 
A new Southern Hemisphere/Lundin Mining JV company (Minera Los Rulos) has been incorporated in Chile, which has executed two option agreements to purchase the Armandiño and Polvareda 2 copper-gold projects, located at Los Rulos in the Coquimbo region of central Chile.
 
“This is an important and strategic step in our relationship with Lundin Mining, which follows a highly successful collaboration over the past year at the Llahuin project,” Southern Hemisphere Mining managing director Trevor Tennant said.

“In recent months we have jointly reviewed new areas in the Coquimbo region prospective for copper-gold and after completing, mapping, channel sampling and IP surveys at both projects, selected Armandiño and Polvareda 2 as the first of the acquisitions under this new JV. Both represent stand-out opportunities and walk-up drilling targets.
 
“We like this region because of its high prospectivity and its location close to infrastructure and services.

“It is the place to be in Chile to develop large-scale porphyry copper projects in the 400-600 million tonnes size range and we are delighted to have the opportunity to work with an accomplished global miner such as Lundin Mining to identify, explore and develop new projects in this belt.
 
“Both projects have extremely favourable geology and extensive surface copper mineralisation plus artisanal mining.

“Our initial work has been very encouraging and they tick every box for us in terms of geology, location and size potential. We are very much looking forward to getting on the ground to start drilling.”

THE BOURSE WHISPERER: Toro Energy (ASX: TOE) has completed its $35 million all-scrip acquisition of the Lake Maitland uranium project in Western Australia, from TSX-listed Mega Uranium.

In August 2013, Toro agreed to acquire Lake Maitland and associated assets, including $1.5 million cash from Mega, in return for 415 million new fully-paid ordinary shares in Toro.

Mega now owns a 28 per cent shareholding interest in Toro.

Toro has also completed Subscription Agreements with OZ Minerals (ASX: OZL) and Pinetree Capital.

This has resulted in company inheriting Japanese joint venture partners for Lake Maitland.

JAURD International Lake Maitland Project (JAURD) and Itochu Minerals & Energy of Australia (IMEA) have an option to acquire a 35 per cent interest in Lake Maitland and participate in its financing and development.
 
“This single transaction provides to Toro significant project improvement, corporate and financing opportunities for the total Wiluna project,” Toro Energy managing director Dr Vanessa Guthrie said in the company’s announcement to the Australian Securities Exchange.

“We welcome both Mega and Pinetree as shareholders to Toro, thank OZ Minerals for its ongoing support and look forward to working with our new Lake Maitland project partners, JAURD and IMEA, to advance that deposit and the Wiluna project.”

Toro subsequently announced an upgrade to the Resource at the Wiluna uranium project, incorporating the newly-acquired Lake Maitland uranium project.

The new Resource at Wiluna stands at:

72.5 million tonnes at 479ppm uranium for 76.5 million pound of uranium.

 

Total Wiluna uranium project Resource Inventory (200 ppm cut-off). Source: Company announcement

 

The acquisition of Lake Maitland is a critical step in the development of the Wiluna project,” Guthrie said.

“The potential for a higher grade mining operation at 800-plus ppm head grade may now be realised from the initial four mines at Wiluna (the already approved Centipede and Lake Way deposits, as well as Millipede and Lake Maitland).

“With the addition of lower grade stockpiled material from these mines, as well as the resources at Dawson Hinkler and Nowthanna deposits, we have the resource base capable of supporting mining operations at Wiluna for more than 20 years.”

Email:
info@toroenergy.com.au

Website:
www.toroenergy.com.au