Convergent Minerals increases gold resource at Van Uden project

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THE BOURSE WHISPERER: Convergent Minerals (ASX: CVG) has upgraded the gold resource at the company’s 80 per cent-owned Van Uden project.

Gold resources at the company’s two development projects within its Mt Holland Goldfield holding, Van Uden and Blue Vein, now total 603,000 ounces of gold.

The upgrade brings the total resources at Mt Holland to 1.17 million ounces of gold.

The new, combined Measured, Indicated and Inferred JORC resource for Van Uden totals 5.4 million tonnes at 1.38 grams per tonne gold for a total of 238,000 ounces of gold (at a 0.50g/t gold lower cut-off).

 

The new Van Uden JORC-classified gold mineral resources estimate. Source: Company announcement

 

Convergent said the upgraded resource represents a 92 per cent increase in ounces to its previous estimate, which was released in 2010, and a 25 per cent increase in the average grade.

“With gold mineralisation commencing from surface and when combined with near-surface gold resources at Blue Vein, this new resource at Van Uden lends support to management’s aim for near-term, open cut mining and heap leach processing,” Convergent Minerals said in its ASX announcement.

“Van Uden and Blue Vein together are being viewed as an early cash flow opportunity for Convergent.

“Scoping Studies are in progress for an open cut mining operation, with processing by heap leach technology.”

As part of the current scoping studies, Convergent has follow-up metallurgical test-work in progress on Van Uden heap leachable material to optimize gold extraction.

The company has designed two open cut mines for Blue Vein north and has mine designs underway for Van Uden.

These designs are being incorporated into the scoping studies, which the company anticipates to be completed by the end of the March quarter 2013.

Sedgman inks $90M EPC contract with La Mancha for Mungari gold project

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THE BOURSE WHISPERER: Resource sector services company Sedgman (ASX: SDM) has scored a contract to Engineer, Procure and Construct (EPC) a new processing plant for Montreal-based La Mancha Resources’ Mungari gold project near Kalgoorlie in Western Australia.

The value of the EPC work to be completed by Sedgman is approximately $90 million from the total La Mancha project value of $110 million.

Sedgman said the award of the La Mancha contract had validated the company’s strategic diversification into the metals sector.

“We recognised some time ago the need to diversify across commodities and regions,” Sedgman managing director and CEO Nick Jukes said in the compnay’s announcement to the Australian Securities Exchange.

“Sedgman have worked closely with La Mancha to successfully deliver early phase solutions for the La Mancha project.

“The award of the EPC contract is a significant project and demonstrates our commitment to building a stronger service offering targeting metals.”

Sedgman was awarded the contract having completing a Definitive Feasibility Study (DFS) and the Front End Engineering Design (FEED) phases for the project last year.

The Mungari plant has been designed to process 1.5 million tonnes per annum blend of ore from the Frog’s Leg and White Foil mines to produce a gold doré product.

Sedgman asserted its plant design will provide the project a cost effective processing solution at the same time as maintaining high levels of reliability, operability and maintainability.

The company’s scope of work for La Mancha at Mungari will include detailed design, procurement and construction of the plant and associated infrastructure.

Construction is expected to commence in April 2013 and is scheduled for completion in early 2014.

Corazon raises cash to tackle TUR project

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THE BOURSE WHISPERER: Corazon Mining (ASX: CZN) has raised funds via a Share Purchase Plan and subsequent Shortfall Placement.

The Share Purchase Plan, which closed last Friday, raised approximately $600,000 from existing shareholders.

The SPP raised interest from other investors, which resulted in the company placing the shortfall from the SPP for approximately $900,000.

Corazon said the funds raised by a recent placement, the SPP and the Shortfall Placement have ensured it is fully cashed-up to commence its planned high-impact drilling program at the recently-acquired Top Up Rise project (TUR) in Western Australia.

In relation to the success of the SPP and the Shortfall Placement

“It was encouraging to receive such strong support from existing Corazon shareholders for the SPP, and such strong demand from a number of investors for the Shortfall Placement,” Corazon Mining managing director Brett Smith said in the company’s announcement to the Australian Securities Exchange.

“It is an excellent validation of the potential of our projects.

“We are now fully funded for the first phase of exploration at the TUR project, where the targeted model is a large copper-gold deposit and we are keen to get on the ground and test this very significant anomaly.

“Ground exploration at the TUR project will commence in March, with drill testing in April/ May 2013.”

Corazon now boats over $3.5 million in cash, investments and receivables available to pay for exploration, which means the company has the capacity to also advance and add value to its Canadian projects.

These projects include a prospective development opportunity at the Lynn Lake nickel-copper sulphide project, plus exploration potential at the Beaucage Lake gold project, where high-grade gold mineralisation has been identified in outcrop over seven to eight kilometres of strike.

AMMG lodges alumina process patent

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THE BOURSE WHISPERER: Australia Minerals and Mining Group (AMMG) (ASX:AKA) has filed a new patent application with the Australian patent office, Intellectual Property (IP) Australia.

The patent application relates to AMMG’s acid-based processing technology, which produces alumina from its aluminous clay material (kaolin) sourced from the company’s 100 per cent-owned South West HPA (high purity alumina) project.

 

Tenement locations of AMMG’s South West HPA projects. Source: Company announcement

 

HPA refers to alumina with a purity level of more than 99.99 per cent.

It is a premium high-value product used in a number of applications such as high-performance electronics; tablets, mobile phones, computer screen backlighting; LED’s; and hybrid cars.

The company’s newly-developed process is capable of producing alumina with purity levels greater than 99.95 per cent purity.

“The company’s aim in filing the patent application is to protect the intellectual property relating to the creation of its own unique processing technology, which is in part favoured by the mineralogy of AMMG’s aluminous clay material,” AMMG managing director Ric Dawson said in the company’s announcement to the Australian Securities Exchange.

“AMMG’s processing technology benefits from a low-energy input; the process uses low temperatures and pressures.

“It produces saleable by-products and the key reagents are recyclable.

“With the patent application, AMMG has the confidence to advance its commercialisation strategy, which involves determining the optimised location and potential construction of a HPA pilot plant facility.

“After the successful production of greater than 99.9 per cent HPA using our process, AMMG will now build on advancing the level of interest we have received to date from around the world.”

AMMG’s South West HPA project is held by its wholly-owned subsidiary Kaolin Resources.

The project consists of one granted exploration licence and nine applications, targeting aluminous clay in the south west of Western Australia and in the Yilgarn mineral belt: Meckering, Kerrigan, Kellerberrin, Bobalong and Gibson.

Corazon Mining gets TUR go-ahead from traditional owners

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THE BOURSE WHISPERER: Corazon Mining (ASX: CZN) has completed a Heritage Survey and clearance for ground geophysical work programs at the company’s Top Up Rise project in Western Australia.

The company signed a land access agreement in December 2012 with the Tjamu Tjamu (Aboriginal Corporation) RNTBC and Ngaanyatjarra Land Council (Aboriginal Corporation) on the TUR project.

Corazon then submitted work programs for detailed ground geophysics over the target area.

Earlier this month, the Tjamu Tjamu visited the site proposed for exploration and subsequently provided clearances for the commencement of exploration.

Corazon indicated arrangements are underway for a ground gravity survey to occur in the next few weeks.

Corazon secured the option to earn up to 75 per cent of Border Exploration last year, which owns 100 per cent of the TUR project.

 

Project and anomaly location. Source: Company announcement

 

Top Up Rise contains a gravity anomaly that has been defined from multiple stations on a 2.5 kilometre spaced grid pattern, upon which Corazon proposes to conduct a detailed gravity survey over the existing gravity high and surrounds.

The proposed gravity survey will take between two and three weeks to complete.

The company anticipates it will provide sufficient detail from which drill targets can be defined and hopefully be ready for drilling, which is planned for April-May.
 
The TUR project is located in the Gibson Desert region of north-eastern Western Australia and is considered to be prospective for large gold-copper intrusive related and iron-oxide copper gold (IOCG) deposits, similar in style to Olympic Dam, Prominent Hill and Carapateena.

Atlantic Gold to raise $2.6 million via placement

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THE BOURSE WHISPERER: Atlantic Gold (ASX: ATV) has entered into a placement agreement to issue 74 million fully paid ordinary shares to a private investment company, Rosemoor Development Pte Ltd, at 3.5 cents per share to raise $2.6 million.

The placement and the payment of the application moneys are to be concluded by 7 March 2013.

The placement will result in Rosemoor holding an approximate 9.8 per cent voting interest in Atlantic Gold.

“Atlantic Gold welcomes the support of Rosemoor Development as a substantial shareholder in the company,” Atlantic Gold said in its ASX announcement.

“We look forward to a rewarding association with Rosemoor Development and our other shareholders as we develop the Touquoy and Cochrane Hill gold projects, and other gold development and exploration activities, in Nova Scotia,”

Vector Resources finalises toll treatment review

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THE BOURSE WHISPERER: Vector Resources (ASX: VEC) is finalising studies aimed at establishing a toll treatment operation for the company’s Gwendolyn gold project near Southern Cross in Western Australia.

The company is using the studies to assess the technical and financial viability of toll treating ore from the high-grade lodes at Gwendolyn and will include a detailed review of the Gwendolyn resource to ensure the model is optimised for a high-grade toll treatment project.

To this end, Vector said it has held advanced discussions with a nearby processor.

The company said more details regarding the discussions will be disclosed when the findings of the studies are available.

To help fund the studies and other work at Gwendolyn, Vector has announced it will undertake a one-for-two rights issue at 3 cents per share to raise $3.9 million.

“Vector believes that a toll treatment project has the potential to generate far superior returns for shareholders than a conventional project development,” Vector Resources said in its ASX announcement.

“The company believes the financial advantages of this option are also boosted by the ability to target Gwendolyn’s high-grade lodes, which will further reduce operating costs, maximising margins and cash generation.”

Nevada iron increases East deposit resource

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THE BOURSE WHISPERER: Nevada Iron (ASX: NVI) has released an updated resource estimate for the East deposit, located at the company’s Buena Vista iron project in Nevada, United States of America.

The new estimate has come in at:

–    28.8 million tonnes grading 19.7 per cent  total iron for contained iron of 5.7 million tonnes at a 10 per cent total irone cut off in the Inferred category.

The resource includes a higher grade core of:

–    12.0 million tonnes grading 25.9 per cent total iron for contained iron of 3.1 million tonnes at a 10 per cent total irone cut off in the Inferred category.

Nevada Iron said the new resource contains approximately 40 per cent more iron than its previous estimate and has taken the total contained iron in the project resource base to 33.4 million tonnes.
 

The East deposit is located approximately one kilometre east of the proposed West deposit pit.

 

Buena Vista project magnetic anomalies. Source: Company announcement

 

The deposit is near surface and contains a high-grade core averaging 25.9 per cent total iron, which Nevada indicated is the highest grade resource to be defined to date on the project.

“Further drilling is planned to upgrade the resource to the Indicated category, and to determine if there is potential to expand the resource given the limited drilling on the East deposit to date,” Nevada Iron said in its ASX announcement.

“All deposits defined to date are shallow and have relatively minor amounts of overburden that results in low waste:ore ratios for the designed pits.

“The mining schedules being developed for the current study envisage processing the higher grade cores of each deposit in the initial part of the mine life, while stockpiling the lower grade halo material for treatment in the latter part of the mine life.”

The company considers the expanded East deposit resource, along with the West deposit and Section 5 resources, support its belief sufficient near-surface, low waste:ore ratio mineralisation is present to support the development of the Phase 1 project to produce in the order of 2.4 million tonnes per annum of high-grade iron concentrate.

Drilling has been planned to take place on other exploration targets at South West, Iron Point and BV-D during the second half of the year, which Nevada anticipates will underpin the further expansion of the project.

“Conversion of the exploration targets to resources has been successful to date for the East and Section 5 deposits and there is significant potential to expand the resource base given the exploration targets of 183 million tonnes to 250 million tonnes with a grade range of 16 per cent to 21 per cent total iron,” Nevada iron said.

MGT Resources sells first tin concentrate shipment

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THE BOURSE WHISPERER: MGT Resources (ASX: MGS) has signed a contract to sell its first shipment of tin concentrate to its off-take partner Taimetco International Trade Co.

MGT said approximately 17 metric tonnes of 65 per cent tin concentrate will be shipped directly to a smelter in Asia.

The tin concentrate was processed at the company’s Mt Veteran processing plant located at its Mount Garnet project in far North Queensland.

The concentrate was processed from material sourced from stockpiles at the plant, which had been left over from previous mining operations in the Mount Garnet area.

“We are pleased to be selling our first shipment of product,” MGT Resources managing director Jonathan Back said in the company’s announcement to the Australian Securities Exchange.

“Tin concentrate needs to meet stringent standards in order for a smelter to be prepared to accept it.

“This trial shipment shows that our product can be accepted and processed by a world class LME [London Metals Exchange] approved smelter.”

MGT said the shipment was the completion of another milestone in the company’s objective to become a fully-fledged tin producer.

Red Sky gets nod of approval for SOLEIR solar power project

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THE BOURSE WHISPERER: Red Sky Energy (ASX: ROG) has been granted an updated Development Approval for the company’s proposed solar power project in Dubbo, in New South Wales.

Red Sky acquired solar energy company, SOLEIR, in November last year, which is a developer of utility scale photovoltaic solar power projects with its first project located for the major regional city of Dubbo.

According to Red Sky Energy the first phase of the project is on schedule to be in operation by 30th June 2013.

SOLEIR had previously secured development approval for a 2 megawatt (MW) project at Dubbo.

Following an expanded and revised design and configuration of the project, an updated development approval was sought for a 2.5MW size project that has now been granted.

SOLEIR has a 30 year lease over a 24.9 hectares project site from the Dubbo City Council, of which the 2.5MW project only requires five hectares.

The site could potentially accommodate an expanded project, of up to 12 MW.

 

Aerial view of Dubbo with project site highlighted. Source: Company announcement

 

“The feasibility study for the Dubbo project is currently underway and is progressing well,” Red Sky Energy said in its ASX announcement.

“Detailed electrical and structural design is nearing completion, grid connection studies (based on data from grid owner Essential Energy) have commenced and quotations have been received for the supply of PV panels and inverters.

“The feasibility study is expected to be completed by mid-March, and the project’s capital cost estimate will also be finalised at that time.”

Red Sky outlined SOLEIR’s business model as being to progressively develop and partially own a number of significant size, cost effective photovoltaic solar energy power projects, which are cost competitive with large scale wind projects.