Metallica SCONI scandium used to produce Master Alloy

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THE BOURSE WHISPERER: Metallica Minerals’ (ASX: MLM) European strategic alliance partner KBM Affilips has used scandium from Metallica’s SCONI pilot plant to manufacture an ingot of aluminum/scandium master alloy.

KBM Affilips is a marketing and sales organisation for a wide range of specialised master alloys manufactured by its production companies KBM Master Alloys in The Netherlands and Affilips in Belgium.

KBM Affilips is the world’s largest manufacturer of non-ferrous master alloys delivering well over 40,000 tonnes of products to 80 different countries.

The company’s Australian representative Bob McKee handed over the “waffle” ingot, to Metallica at its East Brisbane office in October.

 

Bob McKee from KBM Affilips presenting aluminium/scandium “waffle”
to Metallica MD Andrew Gillies and CEO Gavin Becker at Metallica
Minerals office. Source: Company announcement

 

Metallica considers production of the ingot to have reinforced the positive working relationship it has cultivated with KBM Affilips saying it was a step in developing the market for aluminium/scandium alloys.

“Whilst we have a very important customer in Bloom Energy seeking significant scandium oxide off-take in the Solid Oxide Fuel Cell sector, Metallica also realises the need, and opportunity, for the aluminium alloy sector to be a substantial long-term consumer of SCONI scandium,” Metallica Minerals chief executive officer Gavin Becker said in the company’s announcement to the Australian Securities Exchange.

“This master alloy manufactured by KBM Affilips is the first practical step in that direction.

“We look forward to continuing to work with KBM Affilips, and its customers and colleagues in Europe, to assist in the supply of improved aluminium alloys for numerous applications, by positioning SCONI to be the world’s first reliable long-term supplier of scandium.”

Metallica said that as far as the company was aware this is the first aluminium/scandium master alloy to be produced in the West using scandium sourced from scandium oretypes and not as a minor by product from other metal processing.

Mithril closing in on Spargos Reward deal

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THE BOURSE WHISPERER: David Hutton-led Mithril Resources (ASX: MTH) has executed a Tenement Sale Agreement with Breakaway Resources (ASX: BRW) for the purchase of the Spargos Reward gold project for $200,000 in cash.

Hutton was previously managing director of Breakaway Resources.

The Spargos Reward gold project is located 25 kilometres west of Kambalda, and 16km north along strike from the Wattle Dam gold mine of Ramelius Resources (ASX: RMS) in the Eastern Goldfields of Western Australia.

 

Spargos Reward location plan. Source: Company announcement

 

The acquisition has come following the completion of due diligence, and the renewal of the project tenements.

The project comprises the high-grade Spargos Reward gold mine, which historically produced approximately 29,257 ounces at eight grams per tonne gold and the surrounding 15 square kilometres of tenements (Prospecting Licences 15/4876 to 4883 and 15/4886).

“The strategically located project offers significant potential for the discovery of economic gold mineralisation and the company has now received statutory approval to commence exploration activities including drilling,” Mithril Resources said in its ASX announcement.

The sale excludes the project’s nickel rights, which will be retained by Breakaway Resources.

The deal is conditional upon the execution of a Deed of Assignment and Assumption in respect of an existing three per cent royalty of all gold recovered from PL 15/4876 to 4883 and a Royalty Deed in respect of an equivalent royalty on PL 15/4886.

Mithril said it expects to complete the acquisition by mid-November 2012 and commence its exploration activities soon after.

Winmar completes 51 per cent earn-in at Hamersley iron project

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THE BOURSE WHISPERER: Winmar Resources (ASX: WFE) has completed its earn-in requirements under the Farm-in and Joint Venture Agreement with Cazaly Iron, a wholly owned subsidiary of Cazaly Resources (ASX: CAZ), for the Hamersley iron project.
 
Winmar has informed its JV partner Cazaly that it is of the view it has now earned its 51 per cent participating interest in the Hamersley project by virtue of it having expended in excess of $6 million on exploration at the project, as per the Farm-in and Joint Venture Agreement.

The relevant information has been passed onto Cazaly for its review and assessment.

Subject to confirmation by Cazaly, the joint venture between Winmar and Cazaly in respect of the Hamersley Project will be formed.

The participating interests of the parties in the joint venture are Winmar 51 per cent and Cazaly 49 per cent; Winmar will continue to manage the project.

The Hamersley project is located in the Tom Price Region of the Pilbara, in close proximity to Fortescue Metals’ (ASX: FMG) Solomon project and Rio Tinto’s (ASX: RIO) Marandoo and Brockman mines.

 

Location of Winmar’s Hamersley iron ore project. Source: Company announcement

 

“Winmar is delighted to have successfully completed its earn-in requirements for the project, which it views as an advanced exploration target with major exploration upside and development potential,” Winmar Resources said in its ASX announcement.

“Moving forward, both parties will be severally liable in proportion to their participating interest for all obligations and liabilities incurred at the project in the course of carrying out future joint venture activities.”

Winmar indicated it has conducted a series of works programs at the Hamersley project, designed to expedite its development.

These included a $2.2 million exploration program completed this year, which included a 20 hole, 4012 metre RC drilling program, and culminated in a major Resource.

The project’s current Inferred Mineral Resource estimate stands at 368 million tonnes at 54.7 per cent iron Fe (58 per cent calcined iron), which includes a Channel Iron Deposit (CID) zone of 343.3 million tonnes at 55.3 per cent iron (58.7 per cent calcined iron).

Winmar has also commenced advanced metallurgical work, environmental assessments and Native Title negotiations.

The company recently completed its latest phase of drilling at the project, in October.

This was a 10 hole, 1500 metre RC program, designed to define the extent of shallow high-grade mineralisation in the southwest of the project area.

The company indicated it hopes to utilise the results to convert a portion of the Resource to the JORC Indicated category.

The Resource at the Hamersley project remains open in several directions with significant intercepts to the southwest and northeast on the edge of the current drill area.

Some of these previous holes finished within mineralisation.

YTC acquires 100 per cent of Doradilla project

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THE BOURSE WHISPERER: YTC Resources (ASX: YTC) has reached an agreement with Straits Resources (ASX: SRQ) to acquire 100 per cent of the Doradilla project in north-western New South Wales.

Prior to the Agreement, YTC had been earning an initial 70 per cent in the Doradilla project from Straits Resources through sole funding exploration expenditure of $1.5 million by 18 December 2012.

The funding was part of an Exploration Joint Venture Agreement from 2007 between YTC and Templar Resources, a 100 per cent-owned subsidiary of Straits Resources.

 

Project location plan. Source: Company announcement

 

Under the new agreement, YTC will acquire 100 per cent of the Doradilla project tenement in consideration for the issue of $250,000 worth of YTC fully paid ordinary shares at a deemed price of 28.6 cents per share.

At the date of the agreement, YTC had sole funded approximately $1.25 million of exploration expenditure.

The company recently completed a 1,830 metre aircore drilling program on the tenement.

The Doradilla Project lies approximately 50km south-east of Bourke, NSW, and hosts a 16 kilometre long tin-mineralised skarn referred to as the DMK Line, which hosts the tin-skarn deposits of Doradilla, Midway and 3KEL.

“Historical exploration has concentrated on the primary zones of Doradilla, Midway and 3KEL, with YTC more focused on the oxide deposits,” YTC Resources said in its ASX announcement.

“All previous exploration has highlighted the large scale of the mineralisation.”

Some of the stronger results from historic and YTC drilling include:

Doradilla Deposit:

–    6 metres at 1.16 per cent tin and 0.11 per cent copper;

–    7m at 1.2 per cent tin (deepest hole into Doradilla deposit);

–    38m at 0.53 per cent tin (Doradilla Oxide Zone); and

–     1.5m at 683 grams per tonne silver and 1.2 per cent bismuth.

3KEL Deposit:

–    40m at 1.5 per cent tin, 0.52 per cent copper, 110 parts per million indium and 0.35 per cent zinc, including 18m at 3.04 per cent tin, 0.85 per cent copper, 230ppm indium and 0.73 per cent zinc; and

–    42m at 1.32 per cent tin, 40ppm indium, 0.23 per cent Zn and 0.18 per cent bismuth, including 10m at 4.44 per cent tin and 106ppm indium and 0.1 per cent bismuth.

Midway Deposit:

–    5.5m at 0.36 per cent tungsten trioxide.

In 2008 YTC completed an aircore drilling program at 3KEL that was able to validate previous drilling and allow for the estimation of a JORC-compliant Inferred Mineral Resource for the oxide zones at Midway-3KEL of 7.8 million tonnes at 0.29 per cent tin.

The deposits also contain potentially economic levels of copper, zinc and indium which were not included in the Resource estimate.

YTC has also completed a metallurgical program on the 3KEL oxide material, which suggested tin-fuming was a potentially viable process available to extract the tin.

Ventnor announces maiden Resource at Thaduna-Green Dragon

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THE BOURSE WHISPERER: Australian base metals company Ventnor Resources (ASX: VRX) has announced a maiden JORC-compliant Resource estimate for the company’s Thaduna/Green Dragon copper project, located 170 kilometres north of Meekatharra, Western Australia, in the Doolgunna district.

The Thaduna/Green Dragon copper project is situated 40km east of Sandfire Resources’ (ASX: SFR) DeGrussa project.

A total Indicated and Inferred Resource of 6.33 million tonnes at 1.60 per cent copper and 2.77 grams per tonne silver for 101,413 tonnes of contained copper and 563,000 ounces of silver has been estimated for both deposits at a nominal 0.5 per cent cut-off grade.

“This is a milestone event for the project and will allow the company to progress to a scoping study for the open cut potential of this Resource,” Ventnor Resources managing director Bruce Maluish said in the company’s announcement to the Australian Securities Exchange.

“This allows the project to advance while drilling is underway to continue to investigate the underground potential below an open pit.

“We have completed in excess of 38,000 metres of drilling on the project since listing last February and the bulk of this drilling has contributed to the Resource estimate.”

 

Thaduna longsection showing the Resource modelled outline. Source: Company announcement

 

In addition to the drilling included in this resource Ventnor explained there are 10 more diamond holes awaiting assays, or to be drilled, at Thaduna and tow diamond holes at Green Dragon awaiting assays.

The company is scheduled to commence drilling of two deep diamond holes targeting possible depth extensions.

Ventnor said it anticipates an updated JORC Resource will be completed early in 2013 to incorporate this extra drilling.

Rex PFS defines Hillside as largest undeveloped copper project in Australia

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THE BOURSE WHISPERER: Rex Minerals (ASX: Rex) has announced the results of a recently completed Pre-feasibility Study conducted on the company’s 100 per cent-owned Hillside project in South Australia.

Rex said the PFS results have confirmed the potential for the project to hold a production profile 70,000 tonnes per annum copper for a period of 15 years or greater.

Given the current status of available copper Resources in Australia, Rex claimed this now defines Hillside to be the largest undeveloped copper project in Australia.

“This new Hillside study reaffirms the economics of a robust and significant copper project, possibly the best open pit project in Australia since Ernest Henry 25 years ago,” Rex Minerals managing director Mark Parry said in the company’s announcement to the Australian Securities Exchange.

 

Location diagram showing Rex’s exploration licence on the Yorke
Peninsula and the of the Hillside project. Source: Company announcement

 

“Hillside is blessed with location advantages of port, power, water and near surface ore, which are the drivers of low capital and operating costs.

“In an environment where project capital spends are increasing worldwide, Hillside’s capital intensity is over 30 per cent less than a recent world average estimate of US$15,000 per tonne of annual copper equivalent production.

“In Australia and globally, as copper mines are going deeper and underground, new open pit mines are far and few between.”

Rex said it expects being able to release the first Reserve statement for Hillside, which it considers to be another important step towards proving up Hillside as one of Australia’s largest copper projects.

“The depth of Hillside is yet to be fully tested but provides great promise for the mine’s second decade of life,” Parry said.

“Hillside has many great attributes and we will advance permitting and finance options over the next year in preparation for construction in 2014.”

Echo identifies large gold anomaly at Yandal

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THE BOURSE WHISPERER: Reconnaissance soil sampling conducted by Echo Resources (ASX: EAR) at the company’s Yandal project has identified a 5.5 kilometre long gold-in-soil anomaly at the Marvin prospect.

The Marvin prospect is located 85km south of Echo’s Julius gold discovery, and 3km west of open-cut workings at the Mt McClure-Bronzewing gold mine, in central Western Australia.

The company has also identified a second anomaly at the Magrathea prospect, situated 4.5km south of Marvin.

Combined, the gold anomalies extend over a strike length of 11km.

Echo said it intends to carry out further sampling to see if these two anomalies coalesce.

 

Marvin and Magrathea gold-in-soil anomalies over satellite image. Source: Company announcement

 

“First pass soil sampling at Marvin and Magrathea has successfully outlined two previously unknown, large-scale gold-in-soil anomalies adjacent to the Yandal gold province, one of Australia’s most significant gold mining districts,” Echo Resources managing director Dr Ernst Kohler said in the company’s announcement to the Australian Securities Exchange.

“The full extent of the Marvin and Magrathea anomalies remains to be tested.

“Further soil sampling programs will commence next week to provide infill samples between the anomalous first pass traverses, and to test the area between Marvin and Magrathea.”

The Marvin and Magrathea anomalies are developed over variably weathered, north-northwest- striking mafic and granitic rocks along a major shear zone that defines the western margin of the Yandal Greenstone Belt.

In contrast to the Yandal Belt, which has been the subject of intensive exploration for gold over the past two decades, Echo explained there is little evidence of historical prospecting activities at Marvin and Magrathea.

Both prospects are situated within a 290 square kilometre package of granted exploration licences and an exploration licence application that are all 100 per cent-owned by Echo.

Red Mountain acquires Mindoro’s Philippines copper-gold tenements

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THE BOURSE WHISPERER: Red Mountain Mining (ASX: RMX) has acquired a suite of advanced gold projects and copper gold tenements in the Philippines from Mindoro Resources (ASX: MDO).

The acquisition covers a 100 per cent direct and indirect interest in the Batangas gold project and 75 per cent direct and indirect interest in the Tapian San Francisco copper-gold assets.

The Batangas project, located south of Manila, contains JORC-compliant gold resources.

The 270 square kilometre project Manila contains an Indicated Resource of 10.1 million tonnes at 1.2 grams per tonne gold for 393,000 ounces of gold and 1,427,800 ounces of silver, and an Inferred Resource of 3.8 million tonnes at 0.88 grams per tonne gold for 108,000 ounces of gold and 210,000 ounces of silver.

Red Mountain described the Tapian San Francisco tenements in northern Mindanao as a major copper-gold porphyry prospect.

All up, three mineral production sharing agreements (MPSA’s), 10 granted exploration permits (EP’s) and six exploration permit applications (EPA’s) have been acquired by Red Mountain.

 

Source: Company announcement

 

Under settlement terms, Red Mountain has issued Mindoro with 100 million fully paid ordinary RMX shares, worth around $10 million with full voting rights, to be held in escrow for 12 months, together with 50 million Performance shares.

The Performance shares will convert to full voting shares upon Red Mountain upgrading the Indicated Resource at Batangas to 600,000 ounces of gold and completing a scoping study that demonstrates a viable gold mining project based on more than 50 per cent of the Indicated Resource converting to Mineral Reserve or equivalent within 12 months of completion of the transaction.

“We are delighted to have completed the acquisition and look forward to progressing our current aggressive drilling program targeting high-grade gold zones at the flagship Archangel resource within the Batangas project, as well as testing other targets such as at Lobo,” Red Mountain Mining executive chairman and acting CEO Neil Warburton said in the company’s announcement to the Australian Securities Exchange.

“The move is the first definitive signal to the market of Red Mountain’s corporate objective to acquire and develop under-explored or under-developed mineral assets, principally gold, across Asia, and particularly on those projects offering major economic interest in significant resources, high exploration upside and additional resource potential tenements.

“Our approach is three tiered – convert low grade/high tonnage gold resources into higher grade near surface mineable reserves, use existing infrastructure to fast track development, further explore our large land holdings and test multiple targets to establish long mine life.”

Corazon to acquire WA copper –gold project

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THE BOURSE WHISPERER: Corazon Mining (ASX: CZN) has secured an option to earn up to 75 per cent of Border Exploration, which owns 100 per cent of the Top Up Rise (TUR) project in the Gibson Desert region of north-eastern Western Australia.

Announcing the deal Corazon described the project to be prospective for large gold-copper intrusive related deposits, similar in style to Olympic Dam, Prominent Hill and Carapateena.

A primary target has already been identified on the project, which Corazon said is an unexplored gravity anomaly, which it considers to present one of the largest amplitude residual gravity anomalies in Australia.

The core of the anomaly is eight kilometres by four kilometres in area, similar in size to the Olympic Dam geophysical anomaly.

“We believe this project presents a unique opportunity to quickly test and explore for a world class style of deposit on our doorstep,” Corazon Mining chairman Clive Jones said in the company’s announcement to the Australian Securities Exchange.

“The project displays numerous indicators for the Olympic Dam style IOCG mineralisation.

“The anomaly is very large and, being one of the largest residual gravity anomalies in Australia, represents an exciting opportunity for the company.”

The company said the TUR project complements its existing portfolio of exploration and development projects, which includes the Lynn Lake nickel-copper sulphide project and the
Beaucage Lake high-grade gold exploration play, both located in Canada.

Details of the earn-in agreement include:

Stage 1 – Corazon to earn 10 per cent in Border through the issue of 15 million Corazon shares and 15 million Corazon options (3 year expiry date, at a price 134 per cent of the 5 day VWAP at issue) and cash consideration to Border for costs (of up to $250,000);

Stage 2 – At its election, Corazon to earn a further 41 per cent (total of 51 per cent) in Border by paying the vendors $200,000 in cash, and either defining a JORC-compliant Mineral Resource and completing a Scoping Study on the TUR project or spending a minimum of $4 million on exploration; and then subsequently issuing Border with Corazon shares or cash equal to 10 per cent of the issued capital of Corazon; and

Stage 3 – At its election, Corazon to earn a further 24 per cent (total of 75 per cent) in Border by completing a definitive feasibility study on the TUR project (if the vendors decide not to contribute towards development at this stage). Consideration for the Stage 3 interest will be calculated with reference to a sliding scale, based on Corazon’s market capitalisation at the time. The maximum consideration payable will be $6 million (payable in either cash or shares or combination of both, at the election of Corazon) should Corazon’s market capitalisation be greater than $500 million;

The vendors of Border will be free carried until a decision to mine is made; and

Upon Corazon making a decision to mine the TUR project, the vendors and Corazon will form a formal production joint venture. A pre-emptive right will exist between the parties to the joint venture.

The acquisition of an interest in Border by Corazon will be subject to all necessary Corazon shareholder approvals, including those approvals required because Corazon managing director Brett Smith is a director and Shareholder of Border.

MZI says Feasibility Study shows Keysbrook will generate outstanding returns

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THE BOURSE WHISPERER: MZI Resources (ASX: MZI) has received the results of a Feasibility Study for the Keysbrook mineral sands project, located in Western Australia.

The Feasibility Study has demonstrated the Keysbrook project to have strong economics.

Highlights if the study include:

–    Mine life of 7.2 years with potential to extend to up to 11 years (based on Mineral Resource conversion rates, further approvals and land access arrangements);

–    Project Net Present Value estimated at $133 million (post tax) using midpoint TZMI price forecasts and assuming a 7.2 year mine life;

–    Initial Rate of Return of approximately 71 per cent with a payback period of less than 15 months;

–    Project capital cost of $53.6 million, total development costs of $64.3 million and operating costs of $34.1 million per annum; and

–    Average mining rate of 4.5 million tonnes per annum (dry) of ore, producing an average 91,000 tonnes per annum (dry) of mineral sands products comprising:

–    26,000tpa (dry) of leucoxene 70 per annum titanium oxide product;

–    36,200tpa (dry) of leucoxene 88 per cent titanium oxide product; and

–    28,700tpa of zircon concentrate.

The company said the study made a compelling case for developing Keysbrook, putting the project on track for first product sales in the March quarter 2014.

“The findings of this study provide a strong platform for MZI to move to the next phase of project development,” MZI Resources chief executive officer Trevor Matthews said in the company’s announcement to the Australian Securities Exchange.

“This will see the company continue detailed design and engineering work as well as increase its financing activities as part of the plan to complete construction next year.”

Keysbrook is located approximately 70 kilometres south of Perth.

 

Keysbrook location. Source: Company announcement

 

The project comprises heavy mineral sands contained in degraded dunes within the Bassendean Formation.

Mineral Resources currently stand at 49.1 million tonnes at 2.6 per cent heavy minerals.

MZI indicated the project is characterised by its high leucoxene content and claim that once in operation will be one of the world’s largest producers of the premium Leucoxene 88 (comprising 88 per cent titanium dioxide) product.