Venturex Resources prepares to spend Environment Bond windfall

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THE BOURSE WHISPERER: Venturex Resources (ASX: VXR) has voluntarily ‘opted in’ to the Western Australia State Government’s new Mining Rehabilitation Fund.

The move allows Venturex to retire Environmental Performance Bonds covering the company’s tenements at Whim Creek in the Pilbara region.

Venturex said the retirement of the Envirionmental Bond would result in the release of a $1.69 million bank-held security deposit.

It will also increase the company’s net cash reserves to approximately $4.3 million.

The funds have been earmarked for advancing the company’s active exploration program in the Pilbara at the Sulphur Springs and Whim Creek project areas.

Preparations for a three-hole diamond drilling program at the new Midway prospect, located between the Sulphur Springs and Kangaroo Caves resource areas, is underway.

The news continues to be good for Venturex as this drilling is to be co-funded under the WA Government Exploration Incentive Scheme program, and is anticipated to begin in late September or early October 2013.

“Discussions are continuing with respect to the potential disposal of selected non-core assets to further strengthen the company’s financial position in this challenging market,” Venturex Resources said in its ASX announcement.

Terramin Australia scores finance for gold project acquisition

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THE BOURSE WHISPERER: Terramin Australia (ASX: TZN) and its subsidiary, Terramin Exploration Pty Ltd, have executed a committed letter of offer for the provision of $1.8 million debt facility by its major shareholder, the Asipac Group.

The funds are to be used by Terramin purchase the Bird-in-Hand gold project from Maximus Resources (ASX: MXR) and to fund studies on the development of the project.

The short term facility has been provided for a term of 18 months from first drawdown on commercial arm’s length terms including an interest rate of 7 per cent per annum (payable in cash or Terramin shares subject to the provisions of the ASX Listing Rules and the Corporations Act).

“The provision of the loan facility means that Terramin has satisfied the financing condition for the acquisition of the Bird-in-Hand gold project,” Terramin Australia said in its ASX announcement.

“Subject to the satisfaction of standard conditions precedent, the transaction is expected to complete at the end of the current quarter.”

The Bird-in-Hand gold project is located approximately 30 kilometres north of Terramin’s existing mining and processing facilities at the Angas zinc mine.

The project has a high-grade Resource of 598,000 tonnes at 12.3 grams per tonne for 237,000 ounces, which Terramin considers to be amenable to underground mining.

The company anticipates, subject to the required regulatory approvals, the Bird–in-Hand ore will be processed utilising the facilities at Angas, which Terramin explained can be modified to process gold ore.

The existing tailings dam at Angas has the capacity to hold all the Bird-in-Hand tailings Terramin believes that processing of Bird-in-Hand’s high grade ore utilising the existing Angas facilities will create a low capital and low cost gold operation.

MacPhersons Resources increases Boorara Resource

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THE BOURSE WHISPERER: MacPhersons Resources (ASX: MRP) has released an increase to the JORC Mineral Resource Inventory at the company’s 100 per cent-owned Boorara gold project.

Boorara is located just southwest of the company’s 100 per cent-owned Nimbus silver-zinc-gold project located 10 kilometres east of Kalgoorlie’s Super Pit gold mine.

The Boorara JORC Mineral Resource has increased to 7.37 million tonnes at 1.09 grams per tonne gold for 258,000 ounces of gold.

The new Resource number represents a 170 per cent increase to the Mineral Resource Estimate MacPhersons released in August last year based on historical drilling.

 

Watch Morrie Goodz talk about Macphersons’ latest Resource increase

The company considers this resource as a maiden resource on the grounds it is based on a due diligence diamond drilling program completed in June 2013.

Macphersons said the Boorara project effectively doubles the available sources of feed material to the Nimbus processing facility and acts as an important step in its pipeline of projects.

According to MacPherson’s calculations 950,000 tonnes of ore at 1.3g/t gold would be available for processing through the company’s Nimbus mill located two kilometres away at a gold price of US$1240 per ounce.

MacPhersons said the Boorara project has more exploration upside with mineralisation open along strike and at depth.

Western Desert inks Roper Bar take-off deal

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THE BOURSE WHISPERER: Western Desert Resources (ASX: WDR) has reached an agreement with Noble Resources International that will result in the latter becoming the off-take partner for Western Desert’s three million tonnes per annum Roper Bar Direct Shipping Ore (DSO) project.

Noble is a global commodity trader, listed upon the Singapore stock exchange.

Under the agreement Noble will purchase all product produced for up to five years from initial shipment which is expected in fourth quarter 2013.

In addition to purchasing all product, Noble has also agreed to provide Western Desert with a revolving credit facility for working capital.

 

Roper Bar iron ore province location plan. Source: Company announcement

 

“WDR has received dozens of enquiries for off take over the last two years,” Western Desert Resources managing director Norm Gardner said in the company’s announcement to the Australian Securities Exchange.

“After a competitive process WDR selected Noble.

“Apart from having a commercially compelling offer for WDR we have a strong belief that the people we have been dealing with at Noble are like minded and share our vision for the Roper Bar project.

“WDR remains on schedule and on budget to deliver our first shipment of product under the off-take agreement.”

Western Desert said development works at the Roper Bar iron ore project continue as scheduled, with first export of DSO expected in fourth quarter 2013.

Doray Minerals welcomes first golden baby from Andy Well

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THE BOURSE WHISPERER: Doray Minerals (ASX: DRM) has completed the first gold pour at the company’s 100 per cent-owned, high-grade Andy Well gold project, located in the northern Murchison region of Western Australia.

Doray said the achievement of the first gold pour was an important milestone for the company as it marks the official transition from it being a successful explorer and developer to become Australia’s newest high-grade gold producer.

The first gold pour was completed on 5 August 2013 and consisted of a 144 ounce (4.642kg) doré [pronounced Doray] bar produced from the gravity circuit.

Doray Minerals managing director Allan Kelly told The Roadhouse the first gold pour was the culmination of 3.5 years of successful exploration, development and construction work since the initial discovery of the Wilber Lode gold deposit in March 2010.

 

Watch Allan Kelly introduce his new baby here

“We are extremely excited to be entering this new phase for the company as Australia’s newest high-grade gold producer,” Kelly said in the company’s announcement to the Australian Securities Exchange.

“Our work to date suggests that Andy Well will be a low cost operation and we expect it to fall within the lowest quartile of Australian gold projects in regards to cash operating costs per ounce.”

Kelly went on to thank all those who had been involved in the development of the Andy Well mine, paying special attention to the various contractors and consultants, which included MACA Civil, GR Engineering Services and GBF Underground Mining Company.
 
Doray has now recommenced surface exploration drilling at Andy Well, with the current program testing for depth and strike extensions to the high-grade Judy Lode and for potential additional high-grade quartz lodes.

Rox Resources encounters big zinc numbers at Teena

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THE BOURSE WHISPERER: Rox Resources (ASX: RXL) has been further encouraged by recent drilling results from the first hole of a drilling program currently underway at the Teena prospect located on the company’s Reward zinc project in the Northern Territory.

The drilling program is being managed by Teck Australia under the terms of an Earn-in Agreement with Rox, under which Teck is funding all drilling and other exploration costs.

 

Watch our interview with Rox Resources managing director Ian Mulholland

The first hole drilled by Teck into the prospect intersected a 116 metre interval of variable zinc and lead mineralisation from 1,102 metres, with multiple zones of mineralisation above a 2.5 per cent zinc/lead cut-off.

Best results from the drilling include:

–    26.4 metres at 13.3 per cent zinc/lead from 1,060.1 metres, including 8.1 metres at 8.7 per cent zinc/lead from 1,060.1 metres, and 16.2m at 17.2 per cent zinc/lead from 1,070.3 metres, including 8 metres at 21.2 per cent zinc/lead from 1,071.0 metres;

–     6.9m at 8.9 per cent zinc/lead from 1,121m, including 5m at 10.7 per cent zinc/lead from 1,1210m;

–     7m at 5.4 per cent zinc/lead from 1,049m; and

–     18.4m at 3.7 per cent zinc/lead from 1,020.6m, including 2m at 5.7 per cent zinc/lead from 1,022m, and 3m at 5.4 per cent zinc/lead from 1,028m.

Rox described the style of mineralisation as “stratiform sedex” style zinc sulphide, with minor lead sulphide, which it explained was significant due to the lateral continuity this type of mineralisation generally exhibits.

The main section of mineralisation above the 2.5 per cent zinc/lead lower cut-off occurred between 1,012m and 1,128m down hole, with some interspersed barren sections.

Complete assay results including minor elements such as silver are still to be received.

The Teena prospect is located on an Exploration Licence Rox acquired from
Legend International Holdings in September 2010.

Legend retains the diamond rights on the tenement and is also entitled to a 2.5 per cent net smelter royalty on any other minerals produced from the tenement.

Rox has signed an Earn-In and Joint Venture Agreement with Teck to explore the Reward project tenements.

Under the terms of the agreement, Teck have an option to spend $5 million by 31 August 2014 to earn an initial 51 per cent interest.

Teck can then elect to increase its interest in the project to 70 per cent by spending an additional $10 million ($15 million in total) by August 2018.

To date Teck has expended approximately $4 million.

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.

Resignation of the non-executive chairman

Renaissance Minerals (ASX: RNS) announced the resignation of Rick Hart as non-executive chairman of the company due to other business commitments.

“Rick was a founding director of the company and, on behalf of the company, I would like to thank Rick for his contribution and commitment to the company over the past three years,” Renaissance Minerals managing director Justin Tremain said.

Renaissance said the current structure of the Board is suitable on an interim basis and it does not propose to make an immediate replacement to the Board.

A replacement will be sourced when it is financially prudent to do so.

In the interim Dave Kelly will act as the non-executive chairman.

Appointment of new managing director and non-executive directors

Further to Norton Gold Fields Limited (ASX: NGF) achieving an 84.85 per cent interest in the issued capital of Kalgoorlie Mining Company Limited (ASX: KMC) and declaring the takeover offer unconditional, KMC advise the ASX of the appointment of three NGF nominated directors to its Board.

Dr Dianmin Chen has been appointed managing director of the company while Dr Noel White and Ms Xuelin Cai join Peter Cordin as non‐executive directors.

Current managing director James Croser and Roger Kwok have elected to stand down from the Kalgoorlie Mining Company Board effective immediately.

Appointment of chief operating officer

Northern Star Resources (ASX: NST) has appointed Stuart Tonkin as chief operating officer.

Tonkin is a mining engineer with more than 19 years’ experience working for both contractors and mining companies.

Most recently he was COO for mining contractor Barminco. He has also held senior positions with Oxiana and Newmont.

Northern Star said Tonkin’s extensive experience as a mining contractor would ensure that the company retained its strong focus on efficiency and productivity.

“Northern Star has had a heavy emphasis on costs and productivity since the day it acquired the Paulsens gold mine,” Northern Star managing director Bill Beament said.

“But at the same time as reducing our costs, we have grown production, resources and mine life.”

“Stuart’s experience and approach means we will maintain this formula, which is the key to maximising Shareholder returns.”

Change of chairman

Queensland Mining Corporation (ASX: QMC) advised Dr Garry Lowder has resigned as chairman and non-executive director of the company for personal reasons.

In the meanwhile, the company announced Dr Lakshman Jayaweera as the new chairman of the Board.

Triple whammy company secretary appointment

Cazaly Resources Limited (ASX: CAZ), Dempsey Minerals (ASX: DMI), and Blackham Resources (ASX: BLK) all announced the appointment of Mike Robbins as their company secretary, following the resignation of Julie Hill from the positions.
 
Robbins has well over 20 years resource industry experience gathered at both operational and corporate levels, both within Australia and overseas.

He has held numerous project level management positions as well as CFO and company secretarial roles with Hodges Resources, Bannerman Resources, Moto Gold Mines, and Asian Mineral Resources.

Board changes

ActivEX Limited (ASX: AIV) announced changes to the composition of its Board of directors.

Chairman Dick Keevers and non-executive director Ian Daymond have resigned from the Board.

Keevers has been a director and non-executive chairman of the company since May 2012.

Daymond was non-executive director of the company and the first chairman of the Board of directors from inception in 2005 through to 2012 and over the last year as a non-executive director.

ActivEX also announced the resignation of Alan Humphris as an alternate director (to Ms Min Yang), while welcoming Grant Thomas to the board as a non- executive director.

Thomas has worked for several companies, in particular spending 22 years with Rio Tinto/CRAE/Hammersley Iron and has extensive experience in a variety of metals and coal throughout the world, including Australia, Brazil, South Africa, central Asia, China and southeast Asia.


Chairman to retire

Bauxite Resources (ASX: BAU) chairman Barry Carbon announced he intends to retire from all positions with the company effective 9 August 2013.

Following Carbon’s retirement, Robert Nash will become chairman on an interim basis until further notice.

Board restructure

Windward Resources (ASX: WIN) announced the acquisition of a portfolio of exploration assets from the Creasy Group referred to as the Fraser Range projects, which will result in the Creasy Group emerging with an approximate 30 per cent interest in Windward.

Stephen Lowe, Windward’s current chairman and business manager for the Creasy Group has offered to step-down as chairman of Windward, effective immediately to manage any potential conflicts of interest and ensure good corporate governance.

Lowe will remain as a non-executive director of Windward.

It is Windward’s intention to appoint an externally sourced independent chairman as soon as possible and the Board is currently interviewing a number of candidates for this role.

In the interim, non-executive director George Cameron-Dow will immediately assume the position of interim chairman for the period to completion of the proposed acquisition.

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.

Artemis Resources (ASX: ARV)

Artemis Resources’ activities for the latest quarter included preparations for the next phase of exploration at the company’s Eastern Hills antimony project in Western Australia.

Artemis received confirmation from the Western Australian Department of Mines and Petroleum for up to $140,000 in co-funding for drilling at the Eastern Hills project.

The remainder of the program is to be funded from a rights issue the company announced on July 24.

Artemis explained this funding will cover approximately half the costs of a 16 hole, 2,800 metre RC drilling program aimed establishing a maiden JORC-compliant Resource at Eastern Hills.

The Eastern Hills project has an exploration target of 410,000 tonnes to 1.25 million tonnes Mt at 1.5 to 1.9 per cent antimony and 2.1 to 2.7 per cent lead.

Approval has been granted for the planned works program at Eastern Hills and the drilling program is planned to be completed in the September quarter.

The company also evaluated a number of high-grade gold and copper targets at its West Pilbara project with a particular focus on the Carlow Castle project, which Artemis has earmarked as a priority target for future drill testing.

Artemis has entered into discussions with several potential partners looking to invest in the West Pilbara project, through farm-in or joint venture style arrangements.

On 24 July, the company announced a rights issue to raise up to $1.2 million via the issue of approximately 196 million new shares at six cents per share on the basis of two new shares for every five shares held by eligible shareholders, to help fund its exploration programs.

The rights issue includes participation by a key shareholder and directors and is conditionally and partially underwritten to $730,000.

Subscribers will also receive one free attaching “Short Dated” option, exercisable at 12 cents each on or before 31 March 2014 and one free attaching “Long Dated” option, exercisable at two cents each on or before 31 August 2016, for every two new shares subscribed for.


Southern Cross Goldfields (ASX: SXG)

Southern Cross Goldfields’ proposed merger with Polymetals Mining (ASX: PLY) proceeding on track, with key milestones achieved during the Quarter including:

–     Completion of Scheme Implementation Agreement and Scheme Booklet; and

–    Dispatch of Notices of Meeting to both companies’ shareholders to vote on aspects of the merger.
 
Southern Cross said the merger is anticipated to be completed in August 2013 subject to shareholder approval.

Southern Cross stated the merged entity will have increased scale and liquidity as an Australian junior resources company, a strengthened capital base and improved ability to access capital markets, as well as greater visibility and investor relevance combined with a strong balance sheet.
 
The Marda gold project continued to be advanced with engineering studies continuing into the refurbishment and relocation of the Sandstone plant to Marda.
 
Southern Cross continued with a systematic regional auger drilling soil sampling program during the quarter with infill sampling confirming previous results as well as enhancing the prospectivity of several areas along the north eastern section of the Evanston Shear.
 
An auger sampling program was completed on an interpreted gold target west of the Transvaal mine approximately 15 kilometres south of Southern Cross.

The target is 7km long and has variable sand and soil cover. The wide spaced auger program has identified low level gold anomalism over 2km of strike, which Southern Cross said requires infill auger testing.
 
Financing options for the development of the Marda gold project continued following completion of independent due diligence by AMC mining consultants.
 
The company has cash at the end of the June Quarter of $1.8 million, with which it is taking a conservative approach to activities and cash management until the merger is completed.
 
Southern Cross commenced investigations into opting into the new DMP Mine Rehabilitation Fund (MRF).

The company currently has $2.8 million in cash backed environmental bonds across its Marda and Sandstone tenements.


Windward Resources (ASX: WIN)

Windward Resources announced the acquisition of a portfolio of exploration assets in Western Australia’s Fraser Range.

The company has secured firm commitments from investors to raise $10.96 million at 25 cents per share to fund this project acquisition and its exploration.

On completion of the capital raise and acquisition, Windward claims it will be one of the largest ground holders in the Fraser Range, including tenure two kilometres from Sirius Resources’ Nova deposit.

During the quarter the company completed a magnetic and radiometric survey over the entirety of its current Fraser Range South project, comprising of E70/4083 and E70/4085.

The data from the Survey has undergone initial Geophysical interpretation and is currently being reviewed by the company’s consulting Geologists.

Windward said it would use the results from this geological review to develop its understanding of the region and to prioritise the exploration of E70/4083 and E70/4085 in conjunction with proposed acquisitions and portfolio expansion.

During the quarter Windward appointed a new managing director to take on the full-time executive management of the company and exploration of its projects.

David Frances was given the job effective 1st of July 2013 and has taken over all executive and technical functions of the company.

Minotaur Exploration lodges Breakaway takeover statement

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THE BOURSE WHISPERER: Minotaur Exploration (ASX: MEP) has lodged a Bidder’s Statement with the ASX and ASIC in relation to its takeover offer for Breakaway Resources (ASX: BRW).

Minotaur is offering to exchange one Minotaur share for every ten Breakaway shares.

Minotaur Exploration chairman Derek Carter said the Breakaway Board had publicly endorsed his company’s offer and unanimously recommended all its shareholders accept, in the absence of a superior proposal being received.

“It is worthwhile noting that Breakaway’s largest shareholder, Norilsk Nickel Australia – with 24.8 per cent of Breakaway, has committed to accept within five business days after the commencement of the offer period, for 19.9 per cent of its shareholding, in the absence of a superior proposal emerging,” Carter said in Minotaur’s ASX announcement.

“We believe Norilsk’s early acceptance provides a strong indication that our offer is compelling and attractive to all Breakaway shareholders.”

Minotaur explained its offer represents a premium of 33 per cent to Breakaway’s weighted average 30 day share price as at 8 July (Breakaway’s last trading day prior to the offer).

The deal will result in Breakaway shareholders representing approximately 29 per cent of Minotaur.

Minotaur said the deal would enable Breakaway shareholders to participate in its growth plans and will provide them with direct exposure to Minotaur’s exploration assets and expertise.

“The directors of both companies agree that consolidating Breakaway’s exploration assets within the Minotaur Group will provide a wider pathway for value creation through systematic and well-funded exploration,” Carter said.

Minotaur claims to have engineered funding arrangement to ensure Breakaway’s key projects continue to receive the attention and investment they deserve.

 

Minotaur’s and Breakaway’s combined project locations. Source: Company announcement

 

“Following the proposed acquisition of Breakaway, Minotaur intends to immediately roll-out an initial 12-month exploration campaign on Breakaway’s Leinster and Eloise tenements,” Carter said.

“Minotaur has put in place an innovative investment plan with a third party that will result in significant exploration expenditure into those projects without Minotaur Shareholders being diluted through equity financing.

“The investment plan is subject to Minotaur’s offer to acquire Breakaway being successful.

“The proposed first-year work program has been determined and agreed with our private exploration Alliance partner, ‘GFR’.

“GFR is committed to an initial investment, subject to Minotaur’s offer to acquire Breakaway being successful, of $2.6 million into two new joint ventures that Minotaur and GFR have agreed to implement.”

Minotaur will act as manager and operator of each joint venture and in return for its initial investment GFR will earn a beneficial interest in each tenement package – being: Leinster 15 per cent and Eloise 14 per cent.
 
GFR will then have the option of increasing its joint venture investment into each project to earn up to 50 per cent beneficial interest in Leinster for a total $3 million over three years and in Eloise for a total $6 million over four years.

Thus, over a timeline of four years GFR may invest a total of $9 million into exploration activity on the two Breakaway projects.

Bass Metals signs on for Turkish joint venture

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THE BOURSE WHISPERER: Bass Metals (ASX: BSM) has signed a non-binding memorandum of understanding (MoU) with a private Turkish group.

Under the MoU the two companies intend to acquire, explore and develop mining projects in Turkey through a 50:50 Turkish joint venture company structure.

Bass said the signing of the agreement follows the company’s evaluation of Turkish mining opportunities after it identified the country as being underexplored but with favourable geology, a progressive minerals and commercial policy framework as well as being well endowed with high-quality regional infrastructure.

The Turkish partner to the MoU is a private group of investors Bass referred to as Turkey Mining Co. (TMCo), which apparently is a group of people claiming to have strong mining, business and political connections in the country.

The strategic alliance between Bass and TMCo is anticipated to entail:

–    An equal funding model between Bass and TMCo supporting the creation of the TJVC;

–    A business building process for which Bass has the funds to advance opportunities to a meaningful stage, without committing an excessive amount of its current capital; and

–    Bass contributing exploration and mining skills and TMCo contributing projects and local operating experience.

“This is a low cost initiative for Bass to start an ongoing business building process in a terrain renowned for large scale, high-grade polymetallic deposits,” Bass Metals managing director Mike Rosenstreich said in the company’s announcement to the Australian Securities Exchange.

“Turkey features well in the latest Fraser Institute survey ranking 22 out of 96 for the index of Mineral Potential, that’s higher than Ghana at 23rd and many of the Australian states and territories.

“TMCo is a strong local partner with substantial financial capacity, long-term generational mining industry relationships and deep political connections through its key shareholders.

“Bass and TMCo have a common vision to create a significant local mining company by establishing a project pipeline, which in time is planned to include production assets.”