Birimian Gold strikes database deal with Randgold

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THE BOURSE WHISPERER: Birimian Gold (ASX: BGS) has entered into an agreement with Randgold Resources (LSE: RRS), under which Randgold is to provide Birimian with a comprehensive exploration database for areas within the company’s Massigui gold project in southern Mali.

Birimian said access to, what it considers to be a high-quality database, will enable it to advance exploration within the Massigui Project more rapidly and in a cost effective manner.

The company said the data will enhance its capacity to discover additional gold mineralisation on the project, to which end it has commenced a comprehensive review of the new data with the aim of defining additional targets for drill testing in the near term.

The access to the Randgold database for Birimian follows on the heels of the company’s recent announcement of a new gold discovery at the Ntiola prospect.

 

Massigui gold project. Permit areas and geology. The gold
prospective Morila Formation is shown in green. Source: Company
announcement

 

“The historical database information combined with the company’s data from recent drilling will significantly augment the planning of the next drill program at Ntiola,” Birimian Gold said in its ASX announcement.

“The high-quality datasets include all historical geological, geochemical and geophysical surveys from within the Massigui project.

“The exploration database has been provided to Birimian at no financial cost, representing a significant saving to the company in both time and money.

“In return for the database Randgold will retain a First Right of Refusal to joint venture with, or acquire from Birimian, on commercial terms, any assets within the Massigui project area that the Company may elect to divest.”

Birimian indicated it is in discussions with Randgold concerning further collaborative opportunities with the aim of realising further value for both companies.

Transol Corporation acquires gold project

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THE BOURSE WHISPERER: Transol Corporation (ASX: TNC) has elected to exercise its option to acquire 100 per cent of the Southern Cross Bore project, which includes the Johnnies Reward gold prospect, from unlisted company Davenport Resources.

The Johnnies Reward prospect is located 75 kilometres north-east of Alice Springs in the Northern Territory in the Arunta mineral province where recent exploration for IOCG (iron oxide-copper gold) and SEDEX-style mineralisation has yielded promising results.

Recent exploration activity in the region includes recent drilling results reported by Kidman Resources (ASX: KDR) at its Home of Bullion prospect, located north of Johnnies Reward.

Transol said it had decided to acquire 100 per cent of Johnnies Reward following results returned from drilling undertaken at the project since mid-2012.

The company has completed two phases of Reverse Circulation (RC) drilling, which have returning encouraging intercepts including:

–    24 metres at 4.19 grams per tonne gold and 0.33 per cent copper;

–    34m at 3.83g/t gold and 0.46 per cent copper; and

–    22m at 1.23g/t gold and 1.21 per cent copper.

Transol indicated it has identified a number of exploration prospects in close proximity to the known mineralisation at Johnnies Reward, which include the Black Angus anomaly.

Black Angus is considered to be a target of some priority by Transol and is located 1.5km to the north of Johnnies Reward.

The acquisition also includes 100 per cent of the historic Hatches Creek tungsten project, located 325km north-east of Alice Springs.

 

Johnnies Reward project and Hatches Creek project locations. Source: Company announcement

 

“The completion of this transaction will see Transol put in place the final element of its plan to reposition as a focused gold-copper explorer in the Northern Territory with 100 per cent ownership of a significant emerging mineral discovery located close to Alice Springs with excellent logistics and existing infrastructure,” Transol Corporation said in its ASX announcement.

“Aggressive exploration activities are planned during 2013, providing strong news flow and activity over the coming 12 months.”

Laconia Resources signs option agreement over new Peru tenements

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THE BOURSE WHISPERER: Laconia Resources (ASX: LCR)  has negotiated and signed a formal option agreement, which will result in the company adding 5,622 hectares, covering 11 exploration licences alongside its 100 per cent-owned Rasuhuilca project located in the Andean volcanic arc of southern Peru.

Laconia indicated the new licences to be similar to the high-grade Rasuhuilca project, and that the company considers them to also be prospective for epithermal and porphyry style copper-gold-silver.

 

Location of Laconia’s current Rasuhuilca project and new earn-in option licence outlines. Source: Company announcement

 

“The signing of this Option Agreement significantly expands our exploration ground in the highly prospective Andean volcanic arc, where we recently announced high-grade copper results which have subsequently seen the company expand its exploration model to include an El-Indio style copper-gold porphyry system,” Laconia Resources managing director Ian Stuart said in the company’s announcement to the Australian Securities Exchange.

“Following on from these results, it is a great outcome for Laconia to have secured the entire volcanic system as the company believes this area demonstrates significant potential to host epithermal and porphyry systems.

“The company looks forward to advancing its exploration for a large copper-gold-silver mineralised system, while concurrently expanding our existing high-grade gold silver resource.”

Laconia sad the Option Agreement is for seven years and involves minimal initial outlay.

The company outlined the main terms of the Option Agreement as follows:

• Seven year Option Agreement to acquire an 80 per cent ownership interest in Sallka Uno y Dos S.A.C. (“SALLKA”) and Andes Exploration of Peru Numero Dos S.A.C. (“ANDES DOS”), the companies holding the 11 Licenses;

• The Option Agreement is subject to the following conditions precedent: (i) Sallka formalizing its 100 per cent ownership title over 2 of the 11 Licenses before May 31, 2013; and (ii) ANDES DOS formalizing its 100 per cent ownership title over 9 of the 11 Licenses;

• Up front consideration of US$150,000 comprising US$60,000 paid to date leaving a balance of US$90,000 due by the date in which the conditions precedent are fulfilled;

• Five annual option payments to the Vendors for a minimum of US$250,000 and maximum of US$300,000 calculated by an agreed mechanism linked to the degree of the positive percentage increase in the price of gold. The first annual payment is due in March 2014;
 
• Final option payment of a minimum of US$5 million and maximum of US$6 million to acquire 80 per cent ownership interest, calculated by an agreed mechanism linked to the degree of the positive percentage increase in the price of gold;

• Post-acquisition, the Vendors to retain 2.25 per cent net smelter royalty;

• Laconia is to spend $1.3 million per annum of exploration over the 11 Licences. The first expenditure commitment is due by mid-2015; and

• Laconia is to manage and operate the exploration program.

Laconia Resources acquired of the Rasuhuilca project in June 2012.

Rasuhuilca is an advanced, high-grade gold and silver project, which Laconia considers to represent development potential in the current high gold and silver price environment.

The Rasuhuilca project currently has an Inferred Resource estimate of 360,000 tonnes at 1.97 grams per tonne gold and 179 grams per tonne silver (at a 2.5g/t gold-equivalent cut-off).

Orion Gold to acquire Fraser Range tenements

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THE BOURSE WHISPERER: Orion Gold (ASX: ORN) has entered into a binding heads of agreement, which will result in the company acquiring controlling stakes in approximately 1,600 square kilometres of tenements across Western Australia’s Fraser Range and Tropicana belts.

The agreement involves Orion acquiring all the shares in Kamax Resources and covers more than 913sqkm of granted tenements and 669sqkm of additional applications in the two belts.

The Cundeelee project is located between the Tropicana gold project to the north, owned by Independence Group and AngloGold Ashanti and the Nova nickel-copper-cobalt project to the south, owned by Sirius Resources.

Orion Gold considers the tenement areas cover prospective targets for both Tropicana-style gold and Nova-style nickel deposits.

Kamax has obtained funding of $100,000 under the WA Government’s co-funded Exploration Incentive Drilling Scheme, offered by the Department of Mines and Petroleum.

“The Kamax ground is in a district that has delivered two of Australia’s most important mineral discoveries of the past decade,” Orion Gold managing director Errol Smart said in the company’s announcement to the Australian Securities Exchange.

“The advances in geological understanding of this region, which has become a prime investment destination, are revealing the potential for further major discoveries.

“The opportunity to acquire extensive ground holdings, located on prime target structures and with large sampling databases from previous work, is an important opportunity for Orion.

“The fact that bedrock intersections of both gold and nickel exist on the tenements is of prime importance.

“We believe that re-interpretation of extensive historic data, together with the applications of modern exploration techniques, will provide a time and cost advantage to Orion as we strive to prove the potential of this ground.”

Encounter Resources completes earn-in with St Barbara

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THE BOURSE WHISPERER: Encounter Resources (ASX: ENR) has entered into an earn-in agreement with St Barbara (ASX: SBM), the result of which will be the expansion of Encounter’s ground position in the Paterson Province in Western Australia.

The agreement relates to tenement applications ELA45/3232 and ELA45/3308, which cover an area of 60 square kilometres, located 10 kilometres north-east of the company’s Yeneena project and 15kms south-west of Newcrest’s Telfer gold-copper mine.

 

Yeneena project leasing, key structures and target areas. Source: Company announcement

 

“This completes our second earn-in agreement in the region and expands our position along the prospective corridor between our Yeneena project and the Telfer gold-copper mine,” Encounter Resources managing director Will Robinson said in the company’s announcement to the Australian Securities Exchange.

“The Paterson Province has demonstrated potential for major gold and base metals deposits and we are strategically positioned in the region.”

Encounter Resources said it regards the north-east trending structures in relation to copper-cobalt mineralisation at the Yeneena project to be of some significance.

The tenements under the new agreement are located within, what the company considers to be, a prospective north-east structural corridor of between the Yeneena project and Telfer.

Encounter indicated they include a subtle but discrete magnetic anomaly located along this north-east prospective trend.

The company said it intends to progress the tenements through to grant, complete a helicopter based EM survey to allow more detailed targeting and then conduct drilling as warranted.

Crest Minerals to acquire gold project from Reed Resources

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THE BOURSE WHISPERER: Crest Minerals (ASX: CTT) has executed a binding Memorandum of Understanding to acquire the Comet Vale gold project, located in the Eastern Goldfields region of Western Australia from Reed Resources (ASX: RDR) for $6 million in cash.

Crest is to acquire Reed’s subsidiary company Sand Queen Gold Mines, which holds the Comet Vale gold project near Kalgoorlie.

In turn, the Comet Vale project hosts the Sand Queen gold mine, which is currently on care and maintenance, with total resources of 534,000 tonnes at 10.8 grams per tonne gold containing 186,000 ounces of gold.

 

Plan of tenements surrounding the Sand Queen mine. Source: Crest Minerals company announcement

 

The sale also includes Reed’s 1 per cent zinc net smelter royalty over the Nimbus project of MacPhersons Resources (ASX: MRP), subject to MRP not exercising its pre-emptive right to purchase the royalty.

Crest has paid a non-refundable deposit of $100,000 to secure the contract, which includes a two month due diligence period.

“Our proposed acquisition of the Comet Vale gold project is in line with our business objective of delivering shareholder value via definition drilling and project generation”, Crest Minerals managing director Angus Middleton said in the company’s announcement to the Australian Securities Exchange.
 
“Our plan is to expand the current resource base at Sand Queen to underpin a bigger mine plan that will see the resumption of operations at the site as soon as is practical.

“This will coincide with the planned recommissioning of the nearby Nimbus processing plant by its owners.

“We are of the firm view that the recent history of high-grade production (80,000 tonnes at 10g/t gold) and the existing underground and surface infrastructure, should ensure the restart is low-risk with a low-capital cost.

“Crest believes the current high-grade resource inventory at Sand Queen (186,000 oz at 10.8 g/t gold) in the current global gold price environment, together with a milling solution, is a valuable company making asset.”

The sale is subject to Crest completing its due diligence enquiries within 2 months, completing a capital raising of at least $13,000,000 and the company receiving any necessary regulatory and shareholder approvals prior to the end of June 2013.

The transaction is also conditional on Reed obtaining any necessary third party consents, approvals and waivers, together with any necessary governmental authorisations or approvals.

“With the company fully focused on its now producing Meekatharra Gold Operation, it is the appropriate time to sell Comet Vale,” Reed Resources managing director Luke Tonkin said in the company’s announcement regarding the sale.

“This is consistent with the company’s strategy of realising value for its suite of attractive non-core assets, and concentrating on delivering solid cash flows from Reed’s Meekatharra Gold Operation.”

Once the deal has been finalised, Crest indicated it intends to continue exploration on its current assets, continue to seek and evaluate new opportunities.

It also intends to conduct additional exploration at Sand Queen, with a view to possibly recommencing operations.

The company said it did not expect operations will recommence until July 2014 at the earliest.

KalNorth calls up Kalpini as second gold mine

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THE BOURSE WHISPERER: KalNorth Gold Mines (ASX: KGM) has announced a second open pit mining operation at the company’s KalNorth Gold Field, unveiling plans to develop the Gambia deposit at the Kalpini Field.

With the company’s Lindsay’s Field already in production, Kalpini will be the second in the sequence of four open pit mining operations planned across the KalNorth Gold Field.

 

Location map showing roads and local processing plants. Source: Company announcement

 

The Gambia pit design is based on a Probable Reserve of 567,000 tonnes at 2.75 grams per tonne gold grade, for 50,040 ounces of gold.

KalNorth said the initial mining program has been calculated to provide the first two years of ore supply.

The company is currently looking at the potential for a larger open pit to be developed as well as the potential for more ore to be extracted by underground mining.

“Kalpini gives KalNorth the ability to continue mining and delivering ore to generate cashflow over an extended period,” KalNorth Gold Mines managing director John McKinstry said in the company’s announcement to the Australian Securities Exchange.

Planning is continuing on how best to maximise the return to the Company from Lindsay’s, Kalpini and other planned operations within the KalNorth Gold Field.”

KalNorth Gold Mines has four discovered gold fields within its tenements: Mt Jewell, Lindsay’s, Kalpini, and Kurnalpi, which collectively make up the KalNorth Gold Field.

The company is conducting drilling across the KalNorth Gold Field with the aim of increasing both Resource and Reserves, with the stated target of adding at least 500,000 ounces in calendar 2013.

Planning is already underway to develop a third and fourth mine after Lindsay’s and Kalpini.

Azure Minerals sells off non-core Mexican projects

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THE BOURSE WHISPERER: Azure Minerals (ASX: AZS) has sold two of its Mexican projects – the Estacion Llano and San Juan projects, located in the state of Sonora, Mexico.

The proceeds from the sale of the two properties are US$100,000.

Azure Minerals said the sale of the two non-core projects is in line with the company’s strategy of gaining value from its projects.

 

Project location plan. Source: Company announcement

 

The company also said it would continue to seek new opportunities in Mexico through the acquisition of projects, which it considers to have potential and are suitable to joint venture to major corporations or where it can use its own exploration expertise to quickly add value.

“We’re pleased to have been able to sell two of our non-core assets, thereby gaining value from projects that would otherwise have continued to remain inactive,” Azure Minerals managing director Tony Rovira said in the company’s announcement to the Australian Securities Exchange.

“Although we consider both of these properties to have some potential, they were unlikely to receive attention while we focus our energies on very high value projects such as the high grade copper-gold-silver Promontorio project.”

Apollo Minerals strikes $10M deal with Jindal Steel and Power

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THE BOURSE WHISPERER: Apollo Minerals (ASX: AON) has signed a non-binding term sheet with Jindal Steel and Power (Australia) Pty Ltd, a wholly owned subsidiary of Jindal Steel and Power Limited (JSPL) for a major investment into Apollo’s iron ore projects.

JSPL is a leading public company, listed in India on the National Stock Exchange and the Bombay Stock Exchange with international operations encompassing steel manufacture, power generation, mining, coal to liquids production and cement.

Apollo Minerals explained the partnership with JSPL was established ten months after JSPL’s initial equity investment in Apollo.

The company said it expected the latest deal would deliver long-term benefits to both its and JSPL’s shareholders.

“This is a transformational event for Apollo and one that will allow us to unlock maximum value for our shareholders,” Apollo Minerals non-executive chairman Tony Ho said in the company’s announcement to the Australian Securities Exchange.

“The separation of our iron ore and base-precious metals assets is an important part of this process.

“Apollo has achieved a great deal since getting access to our Commonwealth Hill Iron and Titan base-precious metals projects’ site a little over one year ago.

“We are pleased to have a major partner of the calibre of Jindal Steel and Power involved in our iron ore projects and we believe we now have the key ingredients required to take Apollo’s iron ore projects from exploration to production in the shortest possible time.”

 

Location of Apollo Minerals’ Commonwealth Hill project. Source: Company announcement

 

Formal documentation and binding agreements are expected to be signed over the next two months.

The demerger will work in the following way: it is to consist of an in-specie distribution of NewCo shares to Apollo shareholders by way of an Initial Public Offer by NewCo, through which JSPL will invest $10 million and listing of NewCo shares on the ASX.

The demerger of NewCo will result in an iron ore-focused exploration and development company.

Apollo shareholders will receive shares in NewCo via an in-specie distribution that will result in Apollo shareholders holding approximately 49 per cent of the NewCo shares as part of the demerger and after the JSPL investment.

Apollo is expected to remain 100 per cent focused on the exploration and development of its highly prospective base and precious metals portfolio in South and West Australia.
 
Full details of the in-specie distribution to shareholders are expected to be provided on or around the date of signing of definitive agreements.

Cauldron Energy makes off-market bid for Energia Minerals

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THE BOURSE WHISPERER: Cauldron Energy (ASX: CXU) is making an off-market takeover bid to acquire all of the ordinary shares of Energia Minerals (ASX: EMX).

Under the terms of the cauldron bid, Energia shareholders will be offered one Cauldron share for every eight Energia shares they hold.

This values each Energia share at an implied valuation of 34 cents, which represents a premium of 30 per cent to the closing price of Energia shares on 14 March 2013 of 26 cents and a 29 per cent premium to the company’s five day Value Weighted Average Price.

Cauldron indicated its perceived synergies between the two companies as the impetus for the takeover bid.

The company highlighted the merged entity would control over 190 kilometres of contiguous mineralisation in the Carnarvon Basin region of Western Australia.

Energia responded to the news of Cauldron’s offer by announcing it would advise its shareholders advice on the matter as soon as possible.

“Your Directors will provide further advice in due course,” Energia Minerals said in its ASX announcement responding to the Cauldron offer.

“Meanwhile, shareholders are advised to TAKE NO ACTION in relation to Cauldron’s offer.
 
“There have not been any prior discussions between Cauldron and Energia.
 
“Your Directors will keep shareholders fully informed of further developments as they occur and will provide a formal recommendation on the bid in ample time for shareholders to make an informed decision.”

Recent exploration by Cauldron, Paladin Energy (ASX: PDN) and Energia has identified the region to possess a considerable metal endowment

 

Yanrey project and prospect location plan. Source: Company announcement

 

“Our bid for Energia rests on our confidence that we are on the verge of defining a major new uranium province in the Carnarvon Basin, and that both Cauldron and Energia have huge exploration and corporate synergies,” Cauldron Energy executive chairman Tony Sage said in the company’s announcement to the Australian Securities Exchange.

“We feel this region has the potential to host a globally significant in-situ leach uranium operation.”

Cauldron announced an increase to the Exploration Target at the company’s wholly-owned Yanrey project in February from 25 to 30 million pounds to 30 to 115 million pounds uranium at a grade of 250 to 900 parts per million uranium.

That upgrade followed a 300 per cent increase in the inferred uranium resource at Bennet Well from 4.8Mlbs to 15.7Mlbs.

The Yanrey project, is adjacent to Paladin Energy’s 24 Mlbs uranium Manyingee deposit and Energia’s 16.7Mlbs Nyang deposit.

“Nyang is situated along strike from our Yanrey uranium project and appears to reinforce Cauldron’s model of uranium mineralisation as they share very similar geological settings,” Sage said.

“We believe both projects could be amendable to an in-situ leaching process, which is a very efficient and low-cost method of uranium production.

“By combining these companies we can create a uranium-focused entity that holds a dominant land position in an emerging and potentially significant uranium province.

“The new company will have the financial, material and human resources to advance multiple uranium deposits towards development, in an environment suitable for low-cost and environmentally friendly in-situ leach mining methods.”