Azure Minerals takes pinata at Mexican project auction

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THE BOURSE WHISPERER: Azure Minerals (ASX: AZS) has acquired a 100 per cent interest in the Loreto copper project, located in the state of Baja California Sur, Mexico.

The Loreto property covers an area of 9,571 hectares and is located on the east coast of the Baja California peninsula.

 

Location of Loreto project. Source: Company announcement

 

Azure picked up the project at a recent Mexican Geological Survey (SGM) auction for exploration projects considered prospective for precious and base metals.

The company’s winning for the Loreto project will cost it US$137,000 plus a one per cent Net Smelter Return.

The cash component is required to be paid in eight equal six monthly instalments.

“We had identified the Baja Peninsula as a highly prospective area some time ago and had been actively looking for opportunities to acquire a foothold in that province,” Azure Minerals managing director Anthony Rovira said in the company’s announcement to the Australian Securities Exchange.

“The acquisition of the Loreto project for what we see as a bargain price is a great first step into that area.”

Azure described the Loreto project as containing occurrences of outcropping copper mineralisation and artisanal mine workings.

Surface sampling undertaken by SGM returned anomalous copper and gold assays, ranging up to 10.1 per cent and 2.1 per cent copper and 7.6 grams per tonne and 2.8 grams per tonne gold.

Both SGM and Azure consider the property has potential to host significant porphyry copper mineralisation.

Azure will commence exploration this month.

Northern Minerals confirms high-purity mixed Rare Earth oxide

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THE BOURSE WHISPERER: Northern Minerals (ASX: NTU) has completed metallurgical studies at the company’s Browns Range Heavy Rare Earth Element (HRE) project in northern WA, which it claims has confirmed the project’s ability to produce a high-value, 92 per cent mixed RE oxide.

Northern Minerals said the results have supported preliminary hydrometallurgical studies conducted last year, which indicated the Browns Range mineral concentrate can be processed into a high-value, high-purity mixed RE oxide using conventional unit processing techniques.

 

Browns Range HRE project – simplified process flowsheet. Source: Company announcement

 

the ability to produce a mixed RE oxide significantly enhances the value of the Browns Range end product and expands the Company’s marketing options.

“Metallurgy is a critical aspect for any rare earth project, and the results from Browns Range have so far ticked all the boxes,” Northern Minerals managing director George Bauk said in the company’s announcement to the Australian Securities Exchange.

“The positive hydrometallurgical results have now further de-risked the project and now opened the door to a significantly larger and higher value market for our HRE product.”
 
The company indicated its decision to produce the mixed RE oxide will require a further 12 months to advance the hydrometallurgical test work and pilot plant, with an estimated first production of mixed RE oxide in 2016.

“The Board has considered the results and consulted with end users,” Bauk said.

“The value generated from the enhanced economics and the improved marketability of the product is significant, and warrants the additional time to develop the mixed RE oxide path.

“This pathway to production is supported by the recent $58 million funding package, which will take the project through to the completion of feasibility studies.”

After receiving the result of the earlier testing, Northern Minerals engaged Tenova Mining and Minerals to develop and manage a detailed hydrometallurgical test work program.

The first stage of this program has now been completed with the confirmation test work undertaken at both ALS and Nagrom laboratories in Perth.

Northern Minerals said the results from both laboratories confirmed the Browns Range mineral concentrate can be processed to produce a high-value and high-purity mixed RE oxide.

The key results are:

Extraction efficiency in the acid bake and water leach step exceeded 85 per cent;

The precipitation efficiency of the oxalate precipitation step exceeded 99 per cent;

The product purity of the final calcined exceeded the target of 92 per cent TREO in the mixed RE oxide; and

Heavy Rare Earths dominate the mixed RE oxide.

Rex Minerals releases Ore Reserve at Hillside copper project

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THE BOURSE WHISPERER: Rex Minerals (ASX: RXM) has released maiden open pit Ore Reserves for the company’s 100 per cent-owned Hillside copper project on the Yorke Peninsula, in South Australia.

The maiden Ore Reserve has been completed on the back of a recently-completed Pre-feasibility Study, which the company claimed designated Hillside to be Australia’s largest undeveloped copper project with a 15 year mine plan producing 70,000 tonnes per annum of copper (greater than 100,000 tonnes copper equivalent).

The JORC-compliant Ore Reserve for Hillside has come in at 120 million tonnes at 0.53 per cent copper, 0.14 grams per tonne gold and 12.8 per cent iron for contained metal of 636,000 tonnes of copper, 540,000 ounces of gold and 14,500,000 tonnes of iron ore.

 

Hillside Ore Reserve – February 2013. Source: Company announcement

 

The company indicated the numbers equate to a copper equivalent grade of 0.77 per cent.

“The Hillside Reserve is currently Australia’s largest open pit copper reserve,” Rex Minerals managing director Mark Parry said in the company’s announcement to the Australian Securities Exchange.

“Pending a further reserve upgrade by the end of 2013, Hillside is expected to host Australia’s largest copper reserves (after Olympic Dam) with over 10 years of mine life in Reserves and over 15 years of production within the life of mine plan.

“With Hillside’s maiden Ore Reserve complete, Rex will now shift its focus to the Hillside BFS which we anticipate to be finalised in the second half of 2013.

“Additionally, as part of the BFS in 2013, Rex will deliver an upgraded Ore Reserve to complement the already substantial Resource base.”

Rex has also been conducting metallurgical test work as part of the Hillside BFS, which it said has produced some improvements to the copper and gold recoveries.

The ongoing work has already produced revised metallurgical recoveries of:

–    Copper recovery of 88 per cent (compared to 85 per cent in PFS); and

–    Gold recovery of 84 per cent (compared to 82 per cent in PFS).

Cougar Metals exercises option for 51 per cent of Canadian gold project

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THE BOURSE WHISPERER: Cougar Metals (ASX: CGM) has exercised its Option Agreement with Kenora Prospectors & Miners to acquire a 51 per cent interest in the Shoal Lake gold project located in the Province of Ontario, Canada.

“This agreement marks a change in focus for Cougar’s exploration team and provides shareholders with the opportunity to participate in a project which has proven gold mineralisation, a large scope and strong near term mining potential with excellent logistics,” Cougar Metals managing director Randal Swick said in the company’s announcement to the Australian Securities Exchange.

“Whilst maintaining our exploration interests in Brazil’s promising Alta Floresta gold belt, we hope to move quickly to a viable gold production scenario in Ontario.”

 

Project location map. Source: Company announcement

 

The Shoal Lake project comes to Cougar with detailed historical exploration data.

The project includes of 6.5 square kilometres in patented claims encompassing two past gold producers and several gold occurrences describing at least 3 interpreted gold bearing trends from 13 vein structures.

Gold in the project area was first discovered in 1880’s resulting in the development of two mines on the property.

The Mikado mine, situated on the property, was discovered in 1893 and produced of over 30,000 ounces of gold (approx. 58,000 tonnes averaging 16.4g/t).

The Cedar Island mine (formerly the Cornucopia mine) was developed from an inclined shaft in 1897 and produced approximately 1,100 ounces of gold.

The mine reopened in 1935 and from a vertical shaft had a recorded production of 5,250 ounces of gold (from 16,997 tonnes averaging 9.6g/t) until 1936.

Other gold occurrences on the property include the Cedar Mainland Zone, McKinnon Reef, Sirdar No.1 and 2, Bullion No. 1 and 2, Old Ontario Veins 6 and 11, No. 3 Vein, Mikado Bay Zone, and the Grano Zone.

The Grano Zone was discovered in 1981 with intersections up to 10.63 grams per tonne gold over 2.4 metres.

In excess of 30,000 metres of diamond drilling has been completed on the property to 2004.

AusAmerican Mining completes Arizona projects fund raiser

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THE BOURSE WHISPERER: Australian-American Mining Corporation (ASX: AIW) has completed a placement to sophisticated investors of over 21.5 million shares at 4.2 cents per share, raising $905,000 before costs.

The company indicated the funds raised will be used to advance its Bluebell and De Soto VMS copper-gold-silver projects located in Arizona in the United States of America.

AusAmerican is currently undertaking an initial 5,000 metre Reverse circulation drilling program on the Bluebell project.

The initial placement also includes one free option for every two shares subscribed for.

The issue of these attaching options is subject to shareholder approval at a General Meeting of the company, which will be held in March 2013.

The options will initially be unlisted, however following the general meeting the company will apply to the ASX to have the options quoted.

At the general meeting the company will also seek approval for a further placement of up to 60 million ordinary shares for a second raising on terms no less favourable than the initial raising.

If the two raisings are successfully completed, AusAmerican said it will be funded sufficiently to advance its projects throughout the 2013 calendar year.

The planned work includes two further drilling programs, airborne geophysics, a maiden resource at Bluebell as well as paying the first instalment of the option fee to purchase 100 per cent of the two projects.

Triton Gold expands Mozambique graphite project

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THE BOURSE WHISPERER: Triton Gold (ASX: TON) has acquired a further two exploration license applications located in the Cabo Delgado Province of Mozambique, which the company considers to be an emerging graphite region.

The company said the new licence applications provide a sizeable increase to its current land holding of 920 square kilometres.

Triton said it had deliberately targeted the two license applications as it was interested in anomalies it had previously identified when analysing Aeromagnetic and Radiometric data for the region.

The two new license applications will be incorporated into the existing Joint Venture between Trion and Mozambique company Grafex Limitada.

The acquisition consideration for these licenses includes cash up to $265,000 and four million shares and four million options, being conditional on meeting certain hurdles or deliverables.
 
“The Company is very pleased to be able extend the current land holding in prolific Graphite region of the Cabo Delgado Province,” Triton Gold managing director Brad Boyle said in the company’s announcement to the Australian Securities Exchange.

“By obtaining additional license areas of highly prospective land, with identified large anomalies and within close proximity to known graphite mineralisation in Balama and Ancuabe, is clearly an excellent outcome for Triton and our shareholders.”

Ancuabe project – License 5934

This license was pegged by Grafex.

Triton explained the license holds land completely surrounding the historic Ancuabe graphite mine site.

This land is currently held by AMG Advanced Metallurgical Group, which Triton said has indicated it wants to put the graphite mine back into production, and has recently obtained a mining license over the mine site.

 

Overview of the Ancuabe project licenses including the new License 5934. Source: Company announcement

 

Balama Project – License 5966

This license was also pegged by Grafex and extends the JV land holding along the North-East corridor.

Triton indicated it considers this licence to be prospective for graphite mineralisation as it is situated a short distance from Syrah Resources’ (ASX: SYR) Balama graphite deposits.

Atlas Iron increases Pilbara Reserves 21 per cent

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THE BOURSE WHISPERER: Atlas Iron (ASX: AGO) has increased the company’s total Pilbara Ore Reserves by 21 per cent to 499 million tonnes.

The company said the result had strengthened its existing operations, near term development projects and longer-term growth strategy.

The upgraded Reserve estimate compares with figures Atlas published in 30 June last year.

 

Source: Company announcement

 

It includes a 21 per cent increase at Mt Dove, where production started recently, and a 25 per cent rise at Abydos, where construction is underway.

The increase also includes a 98 per cent jump in Reserves at McPhee Creek.

Atlas considers the Reserve increases at McPhee Creek to be important as it anticipates this project is set to play a key role the company’s Horizon 2 growth option.

The Ore Reserve update is inclusive of mining depletion at Pardoo and Wodgina.

The company put the Reserve growth, particularly that achieved at McPhee Creek, down to its continued reinvestment through drilling programs, engineering and ongoing feasibility works conducted it has undertaken over the past 18 months.

“Atlas is delivering on its strategy of generating strong production increases today while laying the foundations for substantial growth over the longer term,” Atlas Iron managing director Ken Brinsden said in the company’s announcement to the Australian Securities Exchange.

“We shipped at a record annualised rate of seven million tonnes per annum in the December 2012 Quarter and we are on track to hit 10 million tonnes per annum by the end of June this year, on the back of the production start-up at Abydos where construction is now well underway.

“At the same time, we are growing the Ore Reserves to underpin our Horizon 2 growth options.”

 


Disclaimer: The Roadhouse holds shares in Atalas Iron

Golden Rim releases maiden Resource and initial Scoping Study for Netiana Lodes

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THE BOURSE WHISPERER: Golden Rim Resources (ASX: GMR) has completed a maiden Mineral Resource estimate and received preliminary Scoping Study estimates on the Netiana Lodes at the company’s Balogo project, in Burkina Faso.

The company has had an estimated JORC-code compliant Inferred Resource calculated of 850,000 tonnes at 6.8 grams per tonne gold for 185,000 ounces of contained gold at 0.5 grams per tonne gold lower cut-off.

Having received the Inferred Resource estimate Golden Rim engaged Coffey Mining to run the Scoping Study tape over the project to assess the viability of an open cut mining and processing operation to exploit the gold resource at Netiana.

Coffey Mining was instructed to provide preliminary estimates of capital costs (CAPEX) for a processing facility inclusive of all fixed plant and basic camp infrastructure, and a tailings storage facility and operating costs (OPEX), for mining and processing only.

Although Golden Rim is still to complete some testwork, such as comminution, and has conducted limited mine planning, Coffey Mining was able to develop plans for a short term project development of the Netiana Lodes.

 

First Pass Pit Optimisation for the Netiana Lodes. Source: Company announcement

 

Coffey established the Netiana Lodes appears robust, as an open pit, with a calculated Net Present Value of $45.7 million and an Initial Rate Return of less than 100 per cent giving a CAPEX payback of less than 5 months.

The CAPEX has been estimated at $38.8 million installed.

This is for a fully transportable front end modular 250,000 tonnes per annum plant coupled to a semi-transportable back end (gravity circuit, CIL, elution and E/W, carbon activation, tails thickening and detox).

The mine OPEX has been estimated at $56/tonne or $197/ounce and the processing OPEX at $112.2/tonne or $406/ounce for a total cost of $603/ounce, inclusive of catering and consumables at a treatment rate of 30 tonnes per hour.

Mine life for this option is 2 years.

Golden Rim said it considers the Balogo project is quickly progressing to become the company’s first gold operation.

“The gold resource on the Netiana Lodes contains high grades, near surface position and excellent metallurgical recoveries to support our objective of developing an open pit mine and processing operation.” Golden Rim Resources managing director Craig Mackay said in the company’s announcement to the Australian Securities Exchange.

“Based on the current resource alone, the mine could produce revenues for Golden Rim in excess of $200 million.

“As we now move to test target areas along strike from the Netiana Lodes we believe the potential to outline satellite gold resources and expand the mine life is very high.”

Equatorial Resources releases Mayoko-Moussondji iron maiden

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THE BOURSE WHISPERER: Equatorial Resources (ASX: EQX) has defined a 767 million tonne maiden Mineral Resource Estimate (MRE) for the company’s 100 per cent-owned Mayoko-Moussondji iron project located in the south-west of the Republic of Congo.

The total MRE of 767 million tonnes at 31.9 per cent iron comprises an Indicated and Inferred Hematite Resource component of 102 million tonnes at 40.6 per cent iron and an Indicated and Inferred Magnetite Resource component of 665 million tonnes of Fresh Magnetite Banded Iron Formation (BIF) at 30.6 per cent iron.

Equatorial explained the Hematite Resource to be made up of the three ore types it has identified at Mayoko-Moussondji: Colluvial Hematite, Friable Hematite, and Hard Hematite.

 

Summary of Maiden Mineral Resource Estimate – Indicated and Inferred. Source: Company announcement

 

Based on the metallurgical test work it has completed to date Equatorial said it expects the hematite material will produce premium lump and fines iron products grading above 63 per cent iron with low impurities.

The company anticipates using the maiden Hematite Resource as the initial resource base for a Scoping Study as well as for on-going feasibility studies focused on early production from Mayoko-
Moussondji.

“The maiden JORC Resource for Mayoko-Moussondji is a significant milestone for Equatorial,” Equatorial resources managing director and CEO John Welborn said in the company’s announcement to the Australian Securities Exchange.

“The Hematite Resource of more than 100 million tonnes represents a large inventory of upgradeable material that we are targeting to deliver premium iron products to global markets using the existing railway and port which service the project.

“The maiden resource is the result of excellent work by our technical team and will immediately be incorporated into the Scoping Study which we expect to be completed by mid-year.

“The total resource of 767 million tonnes, with substantial opportunity for further growth, clearly demonstrates the scale and long term potential of the project.”

FMG terminates exclusive option deal with IOH

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THE BOURSE WHISPERER: Fortescue Metals Group (ASX: FMG) and Iron Ore Holdings (ASX: IOH) have reached agreement on the early termination of Fortescue’s exclusive option on Iron Valley and the farm-in right over the Maitland River project.

“The joint decision was primarily based on the current development focus of each company following recent market volatility and agreement that Iron Valley and Nyidinghu will not be developed as an integrated mine in the time frame as contemplated in the original transaction,” Iron Ore Holdings said in ia brief announcement to the Australian Securities Exchange.

IOH will pay $4 million to Fortescue for the early termination of the Iron Valley option.

IOH said the agreement to terminate the deal was an amicable one, which enables the company to consider alternative development options for the Iron Valley and Maitland River projects.