THE BOURSE WHISPERER: Silver Lake Resources (ASX: SLR) may not have enjoyed the best of years share price-wise, but the company has been able to celebrate production of 500,000 ounces of gold bullion since its maiden gold pour in April 2008.

The company said the milestone has been achieved by processing 4.4 million ore tonnes at a blended grade of 3.8 grams per tonne gold from multiple underground and open pit feed sources at an average (blended) metallurgical recovery of 94 per cent.
 

The gold produced has come from the company’s three processing facilities: Mount Monger/Lakewood producing 80 per cent, Randalls 13 per cent and from the Murchison 7 per cent.

 

Silver Lake Resources project locations. Source: Company announcement

 

“This is a significant milestone for Silver Lake and our shareholders,” Silver Lake Resources managing director Les Davis said in the company’s announcement to the Australian Securities Exchange.

“When we purchased the Mount Monger project in November 2007 it was on care and maintenance with a resource base of 235,000 ounces of gold and limited mine life.

“In December 2007, we commenced production from a single ore source at Daisy Milano.

“We have now poured our first 500,000 ounces of gold, grown the resource base to 6.4 million ounces inclusive of 1.7 million ounces of reserve and have three mining operations and three operating processing facilities with total milling capacity of greater than three million tonnes of ore per annum.

“We have had a solid start to FY14 producing 96,400 ounces year to date.”

Email:
contact@silverlakeresources.com.au

Website:
www.silverlakeresources.com.au

THE BOURSE WHISPERER: AGM season continues to take its toll on the Boardrooms of the junior mining sector.

Board and Management Changes

Discovery Metals (ASX: DML) has announced changes to the company’s Board and senior management.
 
Brad Sampson will cease his role as managing director and chief executive officer with effect on 31 December 2013. Sampson will be on extended leave until this time, and will be pursuing new opportunities in the resources sector.
 
Sampson has also resigned as a director of Discovery Metals and its subsidiaries.

Bob Fulker, presently Discovery Metals’ chief operating officer, will assume the role of acting chief executive officer in an interim capacity pending a permanent appointment.

Niall Lenahan has resigned as director of the company.

The company will immediately commence an executive search for suitable candidates to fulfil the chairman, managing director and additional non-executive director positions on a permanent basis.

It is anticipated this process will be concluded by the end of the Third Quarter FY14.

Director Resignation
 
Evolution Mining (ASX: EVN) has advised the market that Paul Marks has resigned as a non-executive director of the company.

Marks has resigned to pursue other business interests that have advanced and become more time consuming endeavours.

Evolution has entered into a consultancy agreement with Marks whereby the company may call on him for advisory or consultancy services, as and when required, through until 30 June 2014.

Marks has served on the Evolution Board since the formation of the company in November 2011 and prior to this was a non-executive director of Conquest Mining, a predecessor company of Evolution.

Inova Resources announces Board changes

Inova Resources (ASX: IVA) announced the resignation from the company’s Board of Stephen McIntosh and Stewart Beckman.

McIntosh and Beckman were appointed in May 2012 as nominees of the company’s former majority shareholder, Turquoise Hill Resources, which on 1 November 2013, announced it had accepted all of its shares in Inova Resources into the takeover offer for the company by Shanxi Donghui Coal Coking & Chemicals Group.

“The Board would like to thank Stephen and Stewart for the significant contributions that both of them have made to the company over the past 18 months,” Inova Resources chairman Peter McMahon said.

Resignation of non-executive director

Robust Resources (ASX: ROL) non-executive director Andrew Wilson has resigned from the Robust Board to pursue other business interests including an Indonesian-focused role with the company.

Wilson was appointed to the Robust board in January 2010 and has played a key role in the development of the company’s operations in Indonesia.

The company indicated Wilson’s Indonesian related skills and experience will not be lost as he has accepted the leadership role of Commissioner of PT Gemala Borneo Utama (PT GBU), the local Indonesian subsidiary that owns the mining rights over the Romang Island projects.

“We would like to thank Andrew for his significant efforts and contribution to the company,” Robust Resources chairman David King said.

“We look forward to his continued contributions in his new role within the Robust group.

“Robust has a broad portfolio of projects in Indonesia, Philippines and now the Kyrgyz Republic, in various stages of development.

“As the company advances these projects, the composition and structure of our Board is a key priority and we constantly review this to ensure we have the right mix of skills to develop our project portfolio.”

Appointment of director

A-Cap Resources (ASX: ACB) announced that Angang Shen has been appointed to the company’s Board as a director.

Shen is the chairman of both China Growth Minerals Limited and Ansheng Investment, which collectively hold a 19.8 per cent interest in A-Cap.

Appointment of new managing director

Xstate Resources (ASX: XST) advised that Gary Jeffery has resigned as managing director of the company and to become managing director of Australian Oil Company (ASX: AOC).

Paul Cartwright who is presently a non-executive director and substantial shareholder will become the managing director of Xstate Resources.

Board and executive changes

Lemur Resources (ASX: LMR) non-executive chairman Marcello Cardaci has resigned as chairman.

The company further advised that current executive director Anthony Viljoen, has been appointed CEO, while Jonathan Murray has been appointed as non-executive director.

Murray has more than 15 years’ experience as a corporate lawyer and is currently a partner of Steinepreis Paganin, an independent Perth based corporate law firm.

Viljoen is a founding director of Lemur, having been appointed on 8 November 2010, and is also a director of Bushveld Minerals.

THE BOURSE WHISPERER: Maximus Resources (ASX: MXR) has struck up a friendship with Monax Alliance Pty Ltd, entering into a binding Memorandum of Understanding (MoU) with Monax Alliance to undertake technical due diligence on the Billa Kalina project located in the Gawler Craton region within the Woomera Prohibited Area (WPA) in South Australia.

Monax Alliance is a wholly-owned subsidiary of Monax Mining (ASX: MOX).

“Maximus is pleased to have secured an exploration partner of the calibre of the Monax Alliance with the financial backing of a significant international producer and explorer and is looking forward to advancing the exploration of these quality tenements in search of major IOCGU targets,” Maximus Resources said in its ASX announcement.

The Billa Kalina project comprises four granted tenements, EL 4463, EL 4854, EL 4898 and EL 4899 that are owned 100 per cent by Maximus.

 

Source: Company announcement

 

The project area is located approximately 600km northwest of Adelaide, between BHP Billiton’s (ASX: BHP) Olympic Dam operation and Oz Minerals’ (ASX: OZL) Prominent Hill operation.

Maximus explained the project area remains largely under-explored, despite being subjected to a wide spaced regional airborne survey in the 1970’s and small targeted exploration programs since Maximus acquired the tenements in 2005.

Under the terms of the MoU with Maximus, the Alliance has a six month exclusive period to undertake technical due diligence on the project.

The Alliance plans to undertake a detailed gravity survey across numerous initial target areas to assist with modelling and target delineation.

Maximus receives US$25,000 upon signing the MoU.

Prior to expiry of the six month exclusivity period, the Alliance has the option to enter into a farm-in agreement with Maximus to earn 80 per cent equity in the Billa Kalina project by investing US$3 million in exploration over a three year period, subject to a minimum commitment of US$500,000 in the first year.

The Alliance is to manage all exploration programs conducted during the farm-in period.

Maximus will receive a further US$100,000 payment following signing of a farm-in agreement by the Alliance.

Upon meeting the farm-in requirements and electing to enter into a Joint Venture (JV) with Maximus, the Alliance will have earned 80 per cent equity in the project.

Each party is required to contribute to ongoing JV expenditure once the JV is established or dilute its equity in the project.

Should Maximus elect not to enter into the JV with the Alliance, it can sell its 20 per cent share of the project to the Alliance for US$4.5 million and retain a Net Smelter Royalty (NSR) of 2 per cent.
 

If either party’s equity reduces below 10 per cent, the remaining equity will convert to a 2 per cent NSR, which may be purchased at any time up to a decision to mine for an agreed amount.

 

Email:
Kmalaxos@maximusresources.com

Website:
www.maximusresources.com

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.

 

Base Resources Limited (ASX: BSE)

Base resources has commenced ore processing through the mining unit and wet concentrator at the Kwale mineral sands project in Kenya, East Africa. All work packages are now complete and operational with the exception of the mineral separation plant (MSP) and port facilities which are nearing completion, and the project remains on schedule to make the first bulk product shipments in January 2014.

KWALE PROJECT IMPLEMENTATION

The mining unit and wet concentrator are now operational and, in October, commenced the ramp up process and the building of a stockpile of heavy mineral concentrate (HMC) ahead of the commissioning of the MSP.

Construction work on the MSP is now in its final stages with commissioning of the ilmenite and rutile circuits and commencement of concentrate processing expected towards the end of November, which will be followed by the zircon circuit.

Onshore construction works at the Likoni port facility are in the final stages with the 60,000 tonne capacity storage shed complete and administration buildings progressing on track.

Following construction and trial assembly in South Africa, the ship loader was successfully erected on the wharf platform in August and its installation is on target for completion prior to the first planned bulk shipment in January 2014.

A 16 kilometre 132kVA power line was commissioned in June and subsequently provided power for the latter stages of construction and continues to be the source for ongoing operations.

The Mukurumudzi Dam main embankment has now been completed to its final elevation, providing a storage capacity of eight gigalitres, and the spillway is functionally complete.

The dam currently holds some six gigalitres of water, which is more than sufficient for the first year’s production requirements.

The tailings storage facility was completed in August and is now accepting tails from HMC production through the wet concentrator.

Email:
tcarstens@baseresources.com.au

Website:
www.baseresources.com.au

Chalice Gold Mines Limited (ASX: CHN)

Chalice Gold Mines’ primary focus remains on business development activities, targeting advanced exploration or development-stage opportunities which, through access to Chalice’s funding and technical capability, have the potential to create shareholder value.

During the September Quarter, Chalice took the first steps as part of implementing this strategy, announcing a proposed merger with Canadian gold developer Coventry Resources Inc. by way of a Statutory Plan of Arrangement.

Coventry’s principal asset is the Cameron project, a quality gold exploration and development asset, in a low-risk, favourable mining jurisdiction.

The merger, which is subject to due diligence and Coventry shareholder approval, will combine Chalice’s technical team and financial capacity with Coventry’s quality gold asset, which offers both exploration upside and medium term development potential.

Chalice also announced two transactions as part of the execution of a second leg of its corporate strategy, targeting high-quality, ‘drill ready’ targets in prospective low risk mineral provinces.

The two transactions were:

A joint venture with Uranium Equities Limited (ASX: UEQ) on its Marla and Oodnadatta IOCGU projects in South Australia; and

A 10.1 per cent placement into unlisted public company GeoCrystal Limited. GeoCrystal is earning into 70 per cent of Meteoric Resources’ (ASX: MEI) 100 per cent interest in the Webb diamond project in Western Australia.

Email:
info@chalicegold.com

Website:
www.chalicegold.com

Metallica Metals (ASX: MLM)

Proposed merger of MetroCoal Limited (MLM holds 31 per cent) and Cape Alumina Limited (MLM holds 17 per cent) to create a bauxite and coal bulk commodity company – post merger (expected end December 2013) Metallica will hold a strategic 21 per cent holding in the merged company.

Research and Development Tax Refund of approximately $3.06 million received on 23 October 2013.

Until further funding can be secured, significant cost reduction strategies were put in place during the quarter to conserve the company’s cash position and these included:

A review of all costs, in particular salaries, fees and contractng rates, with a view towards planned reduction in staff in the form of transfers from salary to contracting on an as required basis; and

Reduced project and administrative costs.

SCONI scandium, nickel and cobalt project (QLD)

Metallica Minerals Limited (“Metallica” or the “Company”) has continued with the following activities on a conservative cost basis:

SCONI project nickel (Ni) cobalt (Co) and scandium (Sc) Mineral Resources upgraded and reported according to the guidelines of the JORC Code 2012. Total SCONI southern deposits (Greenvale, Lucknow, Kokomo) Mineral Resources increased by 19 per cent to 70.7 million tonnes at 1.2 per cent nickel equivalent (NiEq) using a 0.7 per cent NiEq cut-off grade. At a cut-off-grade of one per cent NiEq, the total Measured and Indicated Resources for the SCONI Southern deposits is 29.4 million tonnes at 1.62 per cent NiEq.

Total SCONI Resource base (Southern and Northern deposits) using a cut-off-grade of 0.7 per cent NiEq is
89.1 million tonnes at 1.15 per cent NiEq.

Progressing the permitting Mining Lease Applications (MLA) for Lucknow and Greenvale tenements, including discussion with land owners in relation to land owner compensation agreements – MLA for Lucknow, Greenvale and Bell Creek at advanced stage towards grant, expected early-mid 2014.

Applied for a Mining Lease to secure a surface limestone deposit located within 20 kilometres from the proposed SCONI Phase 1 plant site at Greenvale.

Progressing financing options with potential funders and or/potential partners.

Seeking additional offtake agreements or alliances with end users of scandium.

Progressing Metallica’s intellectual property (IP) applications for refining scandium bearing ore types and materials to high purity scandium oxide (greater than 99.9 per cent).

Email:
admin@metallicaminerals.com.au

Website:
www.metallicaminerals.com.au