Aquila resources moves to end West Pilbara budget dispute

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THE BOURSE WHISPERER: Aquila Resources (ASX: AQA) and its joint venture partner in the West Pilbara iron ore project, AMCI  have not been able to reach agreement on a proposed budget for the 2012/2013 financial year.

The dispute had earlier been referred to arbitration in September 2012, in accordance with the dispute resolution procedures of the Joint Venture Agreement.

As a result of the existence of the budgetary dispute, the project had had been operating on minimum expenditure.

“Aquila advises that it has given notice to AMCI which Aquila considers brings to an end the arbitration about the budget for the 2012/2013 financial year,” Aquila Resources said in an announcement to the ASX.

“In conjunction with this decision, Aquila has also agreed to maintain the project on minimum expenditure for the remainder of the 2012/2013 financial year.

“Aquila will continue to focus its efforts on how best to progress the project.”

Tanami Gold to raise $65.3M

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THE BOURSE WHISPERER: Tanami Gold (ASX: TAM) has reached agreement with Patersons Securities to underwrite a renounceable pro-rata entitlements issue to raise $65.3 million before costs, subject to Patersons being satisfied with the due diligence process and the company issuing a Prospectus.

The Entitlements Issue will be made to eligible shareholders at an issue price of 20 cents per share on the basis of five new shares for every four shares held.

The company’s largest shareholder, Allied Properties Resources, has committed to taking up their entitlement.

Proceeds of the Entitlements Issue will be used to:

–    Repay the company’s current debt to AP Finance in full;

–    Fund the completion of a Definitive Feasibility Study for the development of the Central Tanami project;

–     Fund the costs of the Entitlement Issue; and

–     Provide additional working capital.

A Prospectus setting out the details of the offer will be lodged with the Australian Securities and Investments Commission and the Australian Securities Exchange on or about Friday 8 February 2013.

Deep Yellow updates Namibian uranium Resource

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THE BOURSE WHISPERER: Deep Yellow (ASX: DYL) has announced an updated Mineral Resource estimate for the company’s Ongolo Alaskite deposits in Namibia.

The upgrade of the Ongolo Resource includes for the first time a contribution from the satellite Ongolo South Deposit of 3.1 Mt at 364 parts per million uranium for 2.5 million pounds of uranium.
 
“This is an outstanding result” Deep Yellow managing director Greg Cochran said in the company’s announcement to the Australian Securities Exchange.

“A 39 per cent increase in metal content as well as the improvement in confidence is exactly what we were aiming for and brings us significantly closer to our 50 million pound uranium short term project resource target.

“Despite the minor reduction in deposit grade we are pleased to see that the project’s average grade remains significantly higher than our Namibian exploration peers.

“Whilst drilling continues we are also conducting a review to identify new targets to ensure that we continue to grow the Project’s high grade resource base.”

Blackham Resources ties up $13M deal with Gutnick’s Great Central Gold

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THE BOURSE WHISPERER: Blackham Resources (ASX: BLK) has locked in a $13 million funding package for the company’s 100 per cent-owned Matilda gold project in Western Australia.

The Matilda gold project has 1.5 million ounces of gold resources.

Blackham has signed a deal with Great Central Gold, a private company run by mining industry identity Joseph Gutnick.

Blackham has agreed to a Private Placement with Great Central, which will result in Great Central being issued 15.79 million Blackham ordinary shares at 21 cents per share, to raise $3.32 million.

On Blackham’s invitation, Gutnick has accepted on completion of the deal Gutnick will be appointed non-executive chairman of the company.

“Mr Gutnick’s agreement to be chairman of the company and to personally provide a large funding package at a significant premium is an important validation of the quality of the Matilda gold project and recognition of the success we have had in advancing the project over the past year,” Blackham Resources managing director Bryan Dixon said in the company’s announcement to the Australian Securities Exchange.

“In addition, Mr Gutnick’s extensive knowledge and experience will be a valuable addition to the Board.

“Securing this funding, in a difficult market for emerging gold companies will enable management to continue adding value at Matilda for the benefit of shareholders.

“The Company plans to immediately commence a 30,000 metre drilling program targeting the Williamson and Matilda Mine areas.”

The Placement price comes at a 37 per cent premium to the 5 day VWAP of Blackham shares based on the company’s closing price on Friday 1 February 2013.

The Placement is set to be completed in two tranches, with the first tranche (12,215,000 shares) issued under Blackham’s existing 25 per cent capacity.

The second tranche, of 3,575,000 shares, will be completed following receipt of necessary regulatory and shareholder approvals.

Once the Placement has been completed Great Central will hold a 19.8 per cent interest in Blackham.

In addition to the Placement, Great Central has agreed to subscribe for $10 million in Convertible Notes in Blackham.

The convertible note conversion price is at 63 per cent6 premium to the 5 day VWAP.

“I am delighted to be able to make this strategic investment in a high quality project backed by a strong management team,” Incoming Blackham chairman Joe Gutnick said in the announcement.

“I have waited many years for the right opportunity re-enter the East Murchison and Yandal Belts.

“I look forward to exploring and developing world-class gold mines in a province where I have enjoyed much success.”

Blackham has made steady progress on the Matilda gold project since acquiring the project 14 months ago, with key developments including:

–    Increased gold resource from 310,000 ounces to 1.50 million ounces of gold;

–    Identifying very large exploration target at Williamson;

–    Confirmed the Matilda and Williamson metallurgy as free milling; and

–    Completion of an initial scoping study at the Matilda Mine confirming robust economics.

Golden Rim chases down Korongou gold project

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THE BOURSE WHISPERER: Golden Rim Resources (ASX: GMR) has executed an agreement with Burkinabe company Epsilon Gold Mines to acquire 90 per cent of the Korongou gold project in Burkina Faso.

The transaction is subject to the finalisation of Golden Rim’s due diligence, although this is expected to be completed by mid-February 2013.

The project area covers 315 square kilometres and consists of the following permits:

–    Korongou Exploration Permit covering 65sqkm;

–    Gandeni Exploration Permit covering 250sqkm; and

–    Banouassi Small Scale Mining Permit, covering 1sqkm and which sits entirely within the Korongou Permit.

 

Location of the Korongou project in Burkina Faso. Source: Company announcement

 

“Korongou has been one of the most sought after gold properties in Burkina Faso,” Golden Rim managing director Craig Mackay said in the company’s announcement to the Australian Securities Exchange.

“Extensive zones of gold mineralisation have been identified and over the past decade, Epsilon has received offers from more than 20 companies to purchase the property, including offers from several of the gold majors.

“Golden Rim has chased this project for some time and is confident of its potential to quickly produce a gold resource in excess of one million ounces.”

Previous work completed by Epsilon has mapped over 70 kilometres of potential gold mineralised structures or exposed in artisanal workings within the Korongou permit, which are ready for drilling.

Golden Rim indicated Epsilon has demonstrated the grade of the gold mineralisation within these structures can be very high.

Epsilon have rock chip sample results up to 313 grams per tonne gold, while artisanal miners have been reported to have exploited gold from several small bonanza pits grading in excess of 1,000g/t gold.

Under the terms of the agreement, Golden Rim has the right to acquire a 90 per cent interest in the Korongou project for $3 million in staged cash payments to Epsilon.

A total of $2 million is payable over a period of two years.

The additional $1 million is payable upon the commencement of a Definitive Feasibility Study.

Epsilon will retain a 10 per cent free carried interest in the project until the Decision to Mine.

After this time, Golden Rim will provide loans for Epsilon to maintain its 10 per cent interest in the project.

These loans will be repayable to Golden Rim from Epsilon’s share of the profits from production.

“Further divestment of Golden Rim’s extensive portfolio of exploration permits in Burkina Faso is planned to allow the company to focus on the Korongou and Balogo projects,” Mackay said.

Nimrodel Resources diversifies into Tanzanian copper

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THE BOURSE WHISPERER: Nimrodel Resources (ASX:NMR) has implemented its first diversification strategy into copper.

The company has executed a First Heads of Agreement for the right to acquire a 75 per cent interest of a Prospecting Licence application in the copper mining area of Kigoma in western Tanzania.

 

General location of Prospecting Licence. Source: Company announcement

 

The 500 square kilometre Kigoma copper project is located at the western margin of the intracratonic rift systems hosting Lake Tanganyika.

The project is accessible by road and rail from the national capital Dar es Salaam.

Nimrodel said the deal takes it to what it described as being an emerging copper district was clear demonstration of its diversification strategy.

The region is currently being worked by local artisanal miners under Primary Mining Licences.

Nimrodel has now secured control over a large portion of consolidated ground held under a prospecting Licence application with a plan in mind to apply modern mining and exploration techniques to this under-explored region.

“The low entry cost afforded by this JV will allow Nimrodel to establish itself as a “leader explorer” in the area and formulate further ventures with multiple willing partners that lack the technical or capital capacity to progress,” Nimrodel Resources managing director Allan Mulligan said in the company’s announcement to the Australian Securities Exchange.

“While minimal historical exploration has been undertaken, extensive small scale artisanal copper mining activity in the area continues to produce hundreds of tonnes of copper ore monthly that is being trucked to a smelter in Dar es Salaam and our plan is to consolidate smaller holdings and then subject them to modern, organised exploration programs providing Nimrodel with a first mover advantage in the region.”

Nimrodel indicated a visual inspection of the area and interpretation of geological and geophysical data had identified the Kigoma area as a viable base metal target with promising styles of mineralisation such as sediment hosted copper and mafic extrusive flood basalt nickel-copper – platinum group mineralisation.

Under the Heads of Agreement with a local Tanzanian Company that has secured rights to the prospect area, Nimrodel has the right to earn-in to 75 per cent of the project by delivering a Prefeasibility study within three years of the commencement date.

Nimrodel will refund previous expenditure incurred on the PL in the amount of US$25,000 and a further US$15,000 in the second year.

“NMR’s immediate exploration strategy will be to undertake geophysical, geochemical and RAB drilling programs to identify the host mineralised systems within a largely unexplored area,” Mulligan said.

Nimrodel said it was currently in advanced stage negotiations with local rights holders.

Pegasus Metals nestles in next door to National Park

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THE BOURSE WHISPERER: Pegasus Metals (ASX: PUN) has let everybody know the company’s McLarty Range copper project sits outside the boundary of the Class A national park currently being proposed north-east of Broome in the Kimberley region by the Western Australia Government.

The proposed park, which includes Horizontal Falls at Talbot Bay, comprises an area set aside by the WA Government when it created a Mining Act Section 19 Exemption Area over the Horizontal Falls in December last year.

The proposed park also includes areas that are not the subject of granted Exploration Licences.

McLarty Range copper project. Source: Company announcement

 

Pegasus explained the tenements that form part of its McLarty Range project include one granted Exploration Licence and an Exploration Licence Application, which fall outside and to the east of the proposed area of the Class A national park.

The company told the market in December 2012 this Exemption Area did not affect in any way the granted tenure or access to the Bowerbird and Copper Cliff/Main Syncline prospect areas where it has been focusing it exploration activities as part of the McLarty Range project.

Pegasus also highlighted, along with its partner in the McLarty Range project Kimminco, the company had provided much assistance to the WA Government in defining this Exemption Area by relinquishing an ELA (E04/2001) and two blocks of a granted exploration licence (E04/1441).

Pegasus had already declared these areas to be part of a “self-imposed buffer zone” adjacent to the Horizontal Falls.

“The proposed national park will have no impact on future exploration at McLarty Range,” Pegasus Metals director Michael Fotios said in the company’s announcement to the Australian Securities Exchange.

“Pegasus has already declared the area subject to the proposed national park as a ‘selfimposed buffer zone’ as part of its policy to protect the Horizontal Falls site nearby.

Pegasus indicated future exploration at McLarty Range will include airborne magnetic/radiometric and VTEM surveys as the company aims to further understand the geology and controls on the copper mineralisation.

Diamond drill testing of targets will follow these surveys with the initial focus on determining the presence of primary copper mineralisation at Copper Cliff in the main syncline area on the east side of the project.

Field activities are expected to commence in the June Quarter of this year after the end of the wet season, subject to any regulatory approvals required.

RIU Explorers Conference, Fremantle

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THE BOURSE WHISPERER: The pipers have started piping, calling the first gathering of the junior to mid-cap exploration and mining clan for 2013.

The event is the RIU Explorers Conference, to be held at its spiritual home of the Esplanade Hotel in Fremantle, Western Australia from February 13-14.

Since its inception in 2002 the RIU Explorers Conference has built a solid reputation as a source of information on investment, joint venture opportunities, and keeping up with new exploration techniques, making it the must attend event to start the Australian conference year.

Now in its 13th year, the event now attracts over 700 attendees every year.

The conference has provided a launching pad for junior resources companies, giving rise to their aspirations of becoming the next Fortescue Metals Group.

In fact, it was in the early days of FMG that Andrew ‘Twiggy’ Forrest stood at the RIU Explorers podium to spruik the lofty ambitions of what wwas destined to become Australia’s third largest iron ore producer.

In recent times the conference has paid homage to mining identity Craig Oliver, who was tragically lost in the fateful Sundance Resources plane crash in June 2010 with the introduction of the Craig Oliver award.

The award has been won by Independence Group in 2011 and Silver Lake Resources in 2012.

 

Silver Lake Resources managing director Les Davis holds the 2012 Craig Oliver Award

Nominees for the award this year are:

Doray Minerals;

Northern Star Resources;

Papillon Resources;

Phoenix Gold;

Regis Resources;

Sandfire Resources; and

Sirius Resources.

This year’s event features a 51 booth Exhibition area and two auditoria featuring 35 resources companies, four keynote speakers and 19 technical presentations in the ‘rOREdata technical auditorium.

For more information regarding the RIU Explorers Conference please visit www.verticalevents.com.au

Aussies make African progress

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THE BOURSE WHISPERER: As the global mining community gathers for the Indaba conference in Africa, we check out a few ASX-listed companies operating around the continent.

BOSS RESOURCES (ASX: BOE)

Boss Resources (ASX: BOE) has reported a number of gold intercepts of notable grade and width from the Gariaga prospect within the company’s Gourma project in Burkina Faso.

Boss Resources project and permit location plan. Source: Company announcement

The company said the results are from a maiden Aircore drilling program it carried out within the Fada N’Gourma Greenstone Belt in eastern Burkina Faso, which was designed to test for primary gold mineralisation beneath three soil anomalies within the Diabatou and Foutouri permits.

Intercepts returned from the maiden drilling program included:

–    14 metres at 2.1 grams per tonne gold from 1 metre;

–    3m at 11.3g/t gold from 5m;

–    7m at 2g/t gold from 19m;
 
–    7m at 1g/t gold from 29m;

–    3m at 2.3g/t gold from 45m;

–    2m at 3.2g/t gold from 29m; and

–    5m at 1.2g/t gold from 5m.

“The Gariaga results confirm the substantial strike extent of gold mineralisation in the Gariaga-Diabatou area and with further drilling we’re confident that the mineralisation will extend beneath the alluvial cover between the two prospects,” Boss Resources managing director Leigh Ryan said in the company’s announcement to the Australian Securities Exchange.

“With results from the Gourma Shear Zone at Bohongou and Foutouri still pending and extensive gold in soil anomalism throughout the Project now ready for drill testing things are looking very positive for Boss.”

PREDICTIVE DISCOVERY (ASX; PDI)

Predictive Discovery (ASX: PDI) released drilling results from four prospects tested in its December 2012 RC drilling program at the company’s Burkina Faso projects.

The program was aimed at five locations where Predictive had intersected high-gold grade mineralisation in previous sampling or drilling.

 

PDI Eastern Burkina Faso Project, showing locations of drilled prospects. Source: Company announcement

 

Having released results from the first prospect drilled, Bongou, earlier Predictive released drill results from 19 RC holes it had completed at the Madyabari, Tambiri South, Solna and Prospect 71 prospects.

Highlights from these results included:

Solna prospect

–    2m at 26g/t gold from 70m, including 1m at 51g/t gold; and

–    2m at 12g/t gold from 12m, including 1m at 21g/t gold.

Madyabari prospect

–    3m at 8.3g/t gold from 23m, including 1m at 21g/t gold; and

–    2m at 8.3g/t gold from 34m, including 1m at 14g/t gold.

Tambiri South prospect

–    4m at 6.1g/t gold from 83m, including 1m at 14g/t gold.

Prospect 71

–    3m at 6.1g/t gold from 69m, including 1m at 14g/t gold.

“Our small December 2012 drilling program was aimed at testing high-grade drill targets within our Eastern Burkina Faso project for prioritisation of ongoing exploration activities,” Predictive Discovery managing director Paul Roberts said in the company’s ASX announcement.

“Encouraging grades were confirmed at all of the drilled prospects including Bongou, which we reported on last week.

“These results further enhance the pipeline of prospects and targets in PDI’s Eastern Burkina Faso project and offer two obvious targets for follow-up drilling.”

BASSARI RESOURCES (ASX: BSR)

Bassari Resources (ASX: BSR) informed the market it has been able to achieve high metallurgical recoveries from the company’s Makabingui gold project in Senegal, West Africa.

The company claimed recent test work from the expanded one million ounces of gold resource had confirmed the metallurgical response of the ore to be consistent with results from test work undertaken in April 2011.

 

Makabingui gold project plan. Source: Company announcement

 

The Makabingui gold project Mineral Resource was upgraded to one million ounces of gold in 11.9 million tonnes at 2.6g/t gold, at a cut-off of 0.5g/t gold in December 2012.

Additional metallurgical characterisation test work and comminution tests were commissioned to establish the Ball Mill Work Index of the ore.

The company said the objective of the test work is to assist in the conceptual forward planning for the potential development of the Makabingui gold project.

“The additional metallurgical results are very encouraging and support the test work carried out in 2011”, Bassari Resources managing director Jozsef Patarica said in the company’s ASX announcement.

“There is no evidence of refractory gold mineralisation with significant amounts of free gold evident, leading to a simple processing method incorporating a gravity circuit.

“These results, indicating free milling ore with a high gravity component, in addition to the high gold grade of 2.6 grams per tonne and near surface nature of the mineral resource (80 per cent above 200 metres below surface), augur well for the future development potential of the project.

“We have also carried out ore hardness test work to assist with the conceptual planning of the processing facility as we continue to grow the mineral resource and unlock the larger potential within the Makabingui project area.”

Gryphon Minerals delivers Banfora BFS

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THE BOURSE WHISPERER: Gryphon Minerals (ASX: GRY) has released the results of a Bankable Feasibility Study for the company’s 100 per cent-owned Banfora gold project in Burkina Faso.

The company said the study had confirmed Banfora to be an economically and technically robust project.

 

Key commercial results of the BFS in US$. Source: Company announcement

 

The BFS proposes a contract mining operation at Banfora utilising a conventional industry standard Carbon In Leach (CIL) two million tonnes per annum gold processing plant, along with associated infrastructure, to mine and process approximately 16.7 million tonnes of ore from defined ore reserves over an initial eight-year period.

The plant has been designed for up scaling to plus four million tonne per annum at a later date.

Gryphon indicated this could potentially be funded from project cash flows.

A gold price of US$1,300 was used for pit optimisations and base case financial modelling.

“The completion of this BFS is a significant step towards the Banfora gold project becoming a major mining operation and towards Gryphon’s transformation into a gold producer, Gryphon Minerals managing director Steve Parsons said in the company’s announcement to the Australian Securities Exchange.

“The BFS confirms the economic viability of this low risk, conventional open pit CIL operation.

“Gryphon will continue to work closely with all stakeholders, including the Burkina Faso Government and local community, as it focuses on full funding and development of the Banfora gold project and obtains all the necessary approvals to commence construction over the coming months.

“Furthermore, we are extremely excited by the huge exploration upside the project continues to deliver on.

“We anticipate additional conversion of resource to reserve ounces with ongoing infill drilling, plus continued resource growth from step-out shallow as well as deeper drilling and more new discoveries at Banfora.”