THE BOURSE WHISPERER: Australian base metals company Ventnor Resources (ASX: VRX) has released further significant results from the previously announced high-grade zone of copper mineralisation at the company’s Thaduna/Green Dragon copper project, located north of Meekatharra, Western Australia.

The Green Dragon project is situated within the Doolgunna district, 40km east of Sandfire Resource’s (ASX: SFR) DeGrussa project.

New high grades intersected at Thaduna include:

–    10 metres at 6.65 per cent copper;
 
–     7m at 4.07 per cent copper; and

–    7m at 3.04 per cent copper.

Field observations of bornite in diamond core continue to produce plus five per cent copper intersections.

“These are the type of intersections that we are following up to investigate the underground mining potential and we will continue to drill deeper while we keep getting these high grade and sulphide rich zones,” Ventnor Resources managing director Bruce Maluish said in the company’s announcement to the Australian Securities Exchange.

“We are also committing to two deeper step-out holes.

“One will be targeting the projected down plunge high grade zone at 500 metres vertical depth and the other will investigate a recently identified EM anomaly at 450 metres vertical depth.

 

Drilling results at Thaduna. Source: Company announcement

 

“The maiden JORC-compliant resource estimate being undertaken by consultants Cube Consulting for the Thaduna/Green Dragon project is nearing completion with final reporting underway and an announcement is imminent.

“The modeling shows good continuity between sections and down dip with essentially tabular orebodies.

“We also have results pending on an extensive metallurgical testwork program to follow up on initial float testwork and QemScan studies.”

THE BOURSE WHISPERER: TNG Limited (ASX: TNG) is about to embark on new drilling programs at the company’s Mount Hardy copper and Mount Peake vanadium-titanium-iron projects, both located in the Northern Territory.

The company anticipates it will have three rigs operating for much of November.

Drilling at the Mount Hardy copper project is scheduled to commence by the end of October, subject to rig mobilisation from previous work.

The program will test priority targets where TNG has recently reported rock chip sample results with peak rock chip grades of 35 per cent copper, 6.85 per cent zinc, 16.15 per cent lead and 7.93 grams per tonne gold.

The samples came from coincident EM targets identified from highly successful HELITEM® and ground EM surveys TNG conducted over the Mount Hardy project area earlier this year.

TNG said it considered the combination of excellent results from geophysics and fieldwork including mapping, soil sampling and rock chip samples had enhanced the prospectivity of the Mount Hardy project.

At the Mount Peake vanadium-titanium-iron project, TNG is to undertake additional drilling to extend and upgrade the current JORC compliant resource.

The company completed a Pre-Feasibility Study (PFS) at Mount Peake earlier this year based on an updated JORC Indicated and Inferred Resource it had released in October 2011 of 160 million tonnes at 0.3 per cent vanadium, 5 per cent titanium and 23 per cent iron (Indicated 110Mt at 0.29 per cent vanadium, 5.3 per cent titanium and 23 per cent iron; Inferred 48Mt at 0.24 per cent vanadium, 4.5 per cent titanium and 21 per cent iron).

In addition to this resource, TNG has published an Exploration Target of 500 to 700 million tonnes grading 0.2 to 0.4 per cent vanadium and 25-35 per cent iron.

The company said recent regional drilling has highlighted the potential to further increase the Company’s resource inventory in the region.

The forthcoming drilling program will comprise 7,000m of diamond and RC drilling and is designed to extend the resource to the east by converting some of the current Exploration Target to JORC resources, as well as to upgrade the existing resource to the JORC Measured category.
 
The company expects this will provide a foundation for the Definitive Feasibility Study (DFS).

TNG said it is scheduled to make a decision to proceed with the DFS during Q4 2012.

“The results we have achieved recently from Mount Hardy are exceptional for early-stage exploration, and have confirmed the prospectivity of this very exciting copper region,” TNG Limited managing director Paul Burton said in the company’s announcement to the Australian Securities Exchange.

“We are really looking forward to putting some of these priority targets to the ultimate test with drilling.

“Copper exploration within our portfolio will be a key ongoing focus for us for much of the rest of the year.

“In addition, we have decided to undertake additional drilling at Mount Peake to extend and upgrade the resource.

“This will further enhance and strengthen the project as we move towards a decision on a Definitive Feasibility Study later this Quarter.”

THE BOURSE WHISPERER: Phoenix Gold (ASX: PXG) has completed a Placement of approximately 66.7 million shares at 30 cents per share to raise $20 million.

The Placement received strong support from both existing shareholders and enabled a number of new institutional investors to be added to Phoenix’s register.

The offer price of 30 cents per share represents a 13 per cent discount to Phoenix’s last trading price on 18 October 2012.

Phoenix said it would also be offering eligible existing shareholders the opportunity to participate in a Share Purchase Plan (SPP) to raise up to $2 million.

The SPP shares will be offered to existing shareholders at the Placement price of 30 cents per share.

“Drilling success to date at Castle Hill and Broads Dam has demonstrated that the more drilling we do, the bigger the project becomes,” Phoenix Gold managing director Jon Price said in the company’s announcement to the Australian Securities Exchange.

“With shareholder support and encouragement it has become apparent that we must accelerate the drilling programs at our flagship projects to grow the resource and reserves as fast as possible.

“With these funds raised today we will triple the drilling activity at Castle Hill and Broads Dam and fast track the DFS in parallel.

“This work will put us in a strong position to be able to make a sound investment decision in the December Quarter of 2013 to develop the projects and construct a stand-alone processing plant at Castle Hill.”

 

Source: Company announcement

 

Phoenix indicated the Funds from the Placement and SPP will be used to accelerate the company’s planned drilling program over the next 12 to 15 months and to complete a Definitive Feasibility Study.

The company has planned an escalated drilling program of approximately 217,000 metres over its projects.

This will be comprised of:

–    Resource extensions along strike and at depth;

–    Greenfield drilling of new targets; and

–    Infill and sterilisation drilling to support the DFS.

This activity will involve up to four drilling rigs and increased field work.

Phoenix said it expected to increase both resources and reserves while it completes its DFS.

THE BOURSE WHISPERER: Southern Cross Goldfields (ASX: SXG) has received indicative term sheets for 100 per cent debt funding for the company’s recently announced acquisition of the Sandstone gold project in Western Australia from Troy Resources (ASX: TRY).

Southern Cross announced the agreement to acquire Sandstone in August for consideration comprising $5 million cash ($2.5 million of which will replace existing environmental bonds), a two per cent net smelter royalty and 43.665 million unlisted Southern Cross options exercisable at ten cents per share.

The Sandstone project comprises a fully permitted 600,000 tonnes per annum gold plant, 100-person camp and 700,000 ounce JORC-compliant gold resource.

The transaction will increase Southern Cross’ combined JORC resource base to 1.3 million ounces.

Southern Cross said it expects the acquisition of the Sandstone plant and camp will halve the estimated capital cost of the company’s Marda gold project, as well as unlock significantly enhanced financial returns, reduce project development risk and provide greater production flexibility.

 

Combined Marda and Sandstone tenement and Resource package. Source: Company announcement

 

Simultaneously with the completion of the debt funding process, Southern Cross and Troy are proceeding positively toward completion of formal documentation for the acquisition.

Southern Cross said it was pleased with the progress of the debt funding process, indicating the indicative term sheets it has received reflect the transformational nature of the Sandstone acquisition for the company and the strength and quality of its key assets.

“The debt markets are currently very much open for business and we are focussed on securing a competitive financing package that will enable us to move ahead with completion of this important transaction and put SXG on a clear pathway to gold production in 2013,” Southern Cross Goldfields managing director Glenn Jardine said in the company’s announcement to the Australian Securities Exchange.

Southern Cross said financing activities to secure debt funding for the Marda project have also progressed.

The company has received indicative term sheets, which it considers to be in line with its expectations and previous announcements.

Evaluation of the indicative term sheets is underway with short-listing to follow.

Southern Cross said debt financing for the Marda project is expected to be finalised in the December 2012 Quarter.

THE BOURSE WHISPERER: MZI Resources (ASX:MZI) has had the Ore Reserve and Mineral Resource for the company’s Keysbrook mineral sands project in Western Australia, independently estimated and reported in accordance with the guidelines of the JORC Code.

The report has shown the operation to have as sufficient Mineral Resources for a potential mine life of 11 years, subject to further land access agreements and extension of existing approvals.

The maiden Ore Reserve estimate of 670,000 tonnes of in-situ heavy minerals underpins the first 5.5 years of the Keysbrook operations.

MZI highlighted that over 88 per cent of the Ore Reserve is in the Proven category.

 

Keysbrook project – Ore Reserve statement as at 17 October 2012. Source: Company announcement

 

“The Ore Reserve and Mineral Resources…provides further evidence of the robust economics of the Keysbrook project,” MZI Resources said in its announcement to the ASX.

The company said the estimates will be included in the Keysbrook Feasibility Study, which it expects to release later this month.

“The study and the Ore Reserve and Mineral Resource estimates will form the basis upon which financing will be arranged for the development of the project,” MZI said.

MZI indicated the Ore Reserve estimate features a higher Leucoxene 88 content than it had expected.

Leucoxene 88 has a titanium dioxide (TiO2) content of 88 per cent and is a highly-valued mineral sand product that attracts a premium price.

Zircon is another high value mineral sands product and it comprises a further 14.6 per cent of the Ore Reserve mineral assemblage.

The completion of the Mineral Resource and Ore Reserve estimates ensures MZI remains on track to become a major mineral sands producer, with construction of Keysbrook scheduled to begin in early 2013 and first production targeted for late 2013.

The Keysbrook Project will make MZI one of the world’s largest annual producers of leucoxene, an important feedstock for TiO2 production.