Pluton calculates Cockatoo resources and reserves

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THE BOURSE WHISPERER: Pluton Resources (ASX:PLV) has announced an initial JORC Code-compliant Mineral Resource and Ore Reserve statement for the company’s 100 per cent-owned Cockatoo Island iron ore project in Western Australia.

Highlights of the statement include:

–    Seawall Hematite Member Indicated Mineral Resource of 3.9 million tonnes (Mt) at 68.8 per cent iron (at a minimum 65.5 per cent iron cut-off grade);

–    Seawall Hematite Member Inferred Mineral Resource of 3.9 Mt at 68.5 per cent iron (at a minimum 65.5per cent iron cut-off grade);

–    Cockatoo Island Highwall Inferred Mineral Resource of 3.0 Mt at 60 per cent iron (no cut-off grade applied);

–    The global Indicated and Inferred Mineral Resource tonnes reported in accordance with the JORC Code and exclusive of the Stage 4 Probable Ore Reserve stands at 10.8 Mt; and

–    The Stage 4 Probable Ore Reserve remains at 1.2Mt at 68.5 per cent iron. The Probable Ore Reserve tonnes are in addition to the Indicated and Inferred Mineral Resources outlined above.

 

Source: Company announcement

 

“It is very pleasing for Pluton to commence life as an iron ore producer with reserves and resources on Cockatoo Island totalling 12 million tonnes of direct shipping ore,” Pluton Resources managing director Tony Schoer said in the company’s announcement to the Australian Securities Exchange.

“Now that the transaction has been completed, Pluton is in final preparation stages to commence mining activities on Cockatoo Island from the 1st October.

“The mine plan, budgets and shipping schedule, as well as a work plan to convert resources into reserves, is near completion and details will be announced in due course.

“The statutory stamp duty for the acquisition was paid on the 4th September.

“This initiates the process of assessing the required level of environmental bonds to be lodged to transfer the leases to Pluton.”

Although the bonds are not required to be lodged for Pluton to commence mining, the company indicated it is currently working with potential Joint Venture partner Wise Energy to arrange funding for these bonds and expects to finalise these negotiations later this month.

Pluton said it anticipates it shares to remain in voluntary suspension while it finalises funding for the bonds and additional working capital.

Discovery Metals opens Boseto copper project

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THE BOURSE WHISPERER: Discovery Metals (ASX:DML) has held a ceremony to open the company’s 100 per cent-owned Boseto copper project, located in north-western Botswana.

The project was officially opened by the President of the Republic of Botswana His Excellency Seretse Khama Ian Khama, accompanied by Vice President and Minister for Mines, Energy and Water Resources Dr Ponatshego Kidikilwe.

 “I wish to commend Discovery Metals that amidst the global economic ills, you forged ahead without wavering,” President Khama said at the opening.

“You remained firmly focused to deliver the mine which employs about 500 people, 96 per cent being citizens.

“In addition, you deserve to be commended for sponsoring 15 young Batswana to pursue studies at the Maun Vocational College in respective career paths.”

 

Discovery Metals’ Botswana projects. Source: Company announcement

The Boseto copper project is Discovery’s first producing copper mine and has been brought on stream, on time and within budget.

The company said the project has been designed to produce an average of approximately 36,000 tonnes copper and 1.1 million ounces silver per annum in concentrate from 3 million tonnes per year of ore feed to the concentrator.

“I’m delighted that the Boseto copper project has been officially opened and to be able to report to our shareholders that we have kept our promise and brought this fantastic asset on stream, on time and within budget,” Discovery Metals chairman Gordon Galt said.

“This is a particularly impressive achievement, driven by our team with the support of the Government of Botswana and local authorities, which has delivered production within two years of receiving the bankable feasibility study.

“By bringing Boseto on stream Discovery Metals has realised its initial objective and de-risked this project.

“Our commissioning and ramp up is progressing well, and we look forward to delivering strong and sustainable cashflow into the future.

“This will allow us to fully develop the potential value in the new copper frontier that is the Kalahari Copperbelt.”

Breakaway continues WA asset sale

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THE BOURSE WHISPERER: Breakaway Resources (ASX:BRW) has continued its divestiture of non-core assets having reached agreement to sell its Spargos Reward project in the Kambalda region of Western Australia to South Australia-based minerals explorer Mithril Resources (ASX:MTH) for $200,000 in cash.

The Spargos Reward tenements form part of Breakaway’s Kambalda West project, located south of Coolgardie on the Coolgardie-Esperance Highway.

 

Spargos tenements locations. Source: Company announcement

 

The sale involves nine tenements encompassing Prospecting Licences 15/4876 – P15/4883 and 15/4866.

It excludes the Nickel Rights over the tenements, which will be retained by Breakaway, and is conditional on completion of due diligence within 30 days and successful renewal of the tenements by Breakaway before their expiry on 22 September 2012.

The company has also reached agreement with Agnew Gold Mining Company (AGMC) to close out the mining rights arrangements in respect of the Vivien and Miranda tenements in Western Australia, located south of  Cosmos-Prospero nickel complex of Jubilee Mines and north-west of Breakaway’s Wildara project.

The settlement of this deal involves Breakaway transferring four mining tenements M36/166 – M36/168 and M36/123 to AGMC, in return for a reduced liability in Breakaway’s share of rates and taxes associated with the cost of maintaining the Vivien and Miranda tenements in good standing.
 
Breakaway said the divestment of these tenements is consistent with its focus on the continued exploration, evaluation and development of the company’s 100 per cent-owned Eloise copper-gold exploration project in the Cloncurry District of North Queensland, including the Sandy Creek project, where a maiden JORC resource estimate is expected to be announced soon.

The proceeds from the sale of the Spargos Reward project will strengthen the company’s working capital position.

The deal comes on the back of the deal Breakaway recently struck with leading Australian copper producer Sandfire Resources (ASX:SFR), which also involved a farm-in joint venture for the Broader Altia project in northwest Queensland.

“The sale proceeds, in conjunction with the cash injection from Sandfire’s recent strategic investment, will strengthen our cash position, enabling us to continue to progress our North Queensland assets to the next level,” Breakaway Resources managing director Victor Rajasooriar said in the company’s announcement to the Australian Securities Exchange.

Breakaway has been in the process of reviewing and evaluating its Western Australian nickel and gold portfolio.

In February this year the company divested 10 West Kambalda tenements to Ramelius Resources (ASX:RMS).

The company said the sale of the Spargos Reward tenements and the withdrawal from the Miranda joint venture were both consistent with its focus on its copper-gold assets in North Queensland.

Aeon Metals signs Letter of Intent with Rio Tinto Exploration

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THE BOURSE WHISPERER: Aeon Metals (ASX:AQR), which used to be known as Aussie Q Resources, has signed a Letter of Intent (LOI) with Rio Tinto (ASX:RIO) subsidiary Rio Tinto Exploration (RTX).

The LOI sets out terms in regard to a proposed earn-in and Joint Venture of Aeon’s 100 per cent-owned tenement EPM 17060 and all data, reports and any other assets held by the company related to the tenement.

The tenement in question borders Aeon’s Greater Whitewash project tenement, which is situated along the porphyry geological north-south structure.

 

Source: Company announcement

 

“The proposed earn-in and joint venture with RTX will allow AQR to focus its exploration and development on the Greater Whitewash, John Hill and Kiwi Carpet projects along strike to the north, while allowing RTX’s geological team to explore along strike to the south.,” Aeon Metals explained in its ASX announcement.

Aeon has granted RTX a 60 business day exclusivity period, during which the parties intend to negotiate and execute an Exploration and Earn-In Joint Venture Agreement for the exploration and evaluation of the project.

Key indicative terms as outlined in the LOI are as follows:

Phase 1 Period – Exploration:

RTX is to sole fund an exploration program and any associated expenditure to a minimum of $200,000 within 12 months prior to any withdrawal.

Phase 2 Period – Earn-In:

Upon satisfaction of the Phase 1 commitment, RTX shall, within 20 Business Days, make a decision to conduct further exploration on the tenement or terminate the Joint Venture agreement.

If RTX elects to conduct further exploration then Aeon will extend its exclusive exploration rights to the project for a further period of thirty-six months from the date of such election.

RTX will commit to a total expenditure of $2.5 million over the Phase 2 Period to earn its initial interest.

Upon RTX satisfying the Phase 2 commitment, the two companies will form an unincorporated Joint Venture to continue the project with the following participating interests:

–    RTX: 70 per cent; and

–    Aeon: 30 per cent.

Phase 3 Period – Pre-Feasibility:

Within thirty days of formation of the JV, Aeon must notify RTX whether or not it will contribute its share of future funding of the project on a pro-rata basis, as per the parties’ participating interests in the JV.

If Aeon elects not to contribute its share of future funding, RTX will have no further obligation to fund the project but may elect, in its sole discretion, to continue to sole fund the project, in which case it will commit to:

–    expenditure of $15 million; or

–    completion of a pre-feasibility study, whichever occurs first, within a period of five years from the satisfaction of the Phase 2 commitment  to earn an additional 20 per cent interest.

Manas receives key government nod for Shambesai gold project

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THE BOURSE WHISPERER: Manas Resources (ASX:MSR) has received approval for a TEO study at the company’s 100 per cent‐owned Shambesai gold project in the Kyrgyz Republic, Central Asia.

A TEO study is the Russian interpretation for Justification of Technical and Economic Conditions.

Manas received approval for the study from the Mineral Reserves Commission acting on behalf of the State Agency for Geology and Mineral Resources (SAGMR), the controlling authority on mining issues for the Government of the Kyrgyz Republic.

The approval means Manas Resources is now entitled to apply for and receive a production license for the Shambesai gold project and commence the License Agreement process with SAGMR.

“I am extremely pleased with the support Manas has received from the Government of the Kyrgyz Republic in regard to this key approval and its desire to see gold production from Shambesai as soon as possible,” Manas Resources managing director Stephen Ross said in the company’s announcement to the Australian Securities Exchange.

“The Mineral Reserves Commission of the Kyrgyz Republic and SAGMR are incredibly supportive of the quick development of the Shambesai gold project and we look forward to delivering a low‐cost, high‐margin gold operation to the Kyrgyz Republic.”

The company explained that after the grant of the production license, a two‐stage License Agreement process begins.

License Agreement 1 requires preparation and assessment of the detailed mine and process design, including the Environmental and Social Impact Assessment (ESIA); as well as the issuing of the mining allotment (land allotment) and all the relevant operational and commercial permits based on the various sections of the approved detailed design and ESIA.

License Agreement 2 commences upon completion of all of the requirements and commitments from License Agreement 1 and will provide State authorization to proceed with construction and ultimately production from the Shambesai gold project.

Manas has been undertaking the ESIA work for a number of months now, including environmental monitoring for baseline submissions to the State Agency of Environment and Forestry.

Once License Agreement 2 and all relevant permits have been received, Manas is entitled to commence construction at Shambesai.

 

Shambesai is reported at a gold cut‐off grade of 0.5g/t gold;
Obdilla is reported at a gold cut‐off grade of 1.0g/t gold. Source:
Company announcement

 

Manas described the Shambesai gold project as a technically simple, low‐cost vat leach and heap leach operation.

It is projected to process 3.2 million tonnes of ore at 2.8 grams per tonne gold to recover 245,000 ounces of gold over 4 ½ years at life‐of‐mine cash costs of US$411 per ounce of gold.

Manas said it is currently negotiations in regard to debt financing options for the Shambesai gold project and has received positive interest from a number of well‐credentialed banks and mining finance institutions.

Navarre to take full ownership of Tandarra

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THE BOURSE WHISPERER: Victoria-based gold exploration company Navarre Minerals (ASX:NML) has taken steps to strengthen its ownership position of the company’s Tandarra prospect.

The Tandarra procect is part of the Bendigo North gold project located near Bendigo.

 

Bendigo North gold project location map. Source: Company announcement

Navarre has signed a heads of agreement with Canadian company Crocodile Gold Corp. (TSX:CRK), its largest shareholder.

The HOA will convert Crocodile’s right to earn a majority interest in Tandarra to a 2 per cent net smelter royalty (NSR) interest over future gold production at Tandarra.

Further to the agreement, Navarre has the right to buy back one per cent of the NSR for $2.0 million within four years, which would reduce the NSR to one per cent.

“This deal unshackles the long-term ownership of Tandarra and gives greater certainty for Navarre shareholders, while at the same time sharing the upside from potential gold production with Crocodile,” Navarre Minerals managing director Geoff McDermott said in the company’s announcement to the Australian Securities Exchange.

“Extinguishing Crocodile’s residual equity interest in Tandarra means that Navarre gains greater control over its number one project.

“This is a very significant milestone and gives Navarre greater flexibility in funding the exploration, evaluation and development of this emerging gold project.”

Crocodile’s earn-in right was part of the original deal to acquire Tandarra during the formation of Navarre, at which time it acquired a number of exploration assets from a company that is now an Australian subsidiary of Crocodile.

Under the original agreement with Navarre, Crocodile was entitled to earn up to 60 per cent of Tandarra once the project was proven to host a JORC-compliant resource of 0.5 million ounces of gold, of which 50 per cent was in the indicated or measured category.

“This deal clears up the long-term ownership issue at Tandarra, which has confused some shareholders and potential investors,” McDermott explained.

“Under the terms of this agreement, Navarre will own 100 per cent of one of the most advanced greenfields gold exploration projects in Victoria.

“And if we can prove up and develop a gold mine at Tandarra, Crocodile will share in any future production – a win-win for both companies.”

Navarre said formal documentation of the agreement is expected to be finalised within the coming months.

 

Dart doubles unicorn molybdenum resource

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THE BOURSE WHISPERER: Dart Mining (ASX:DTM) has had geological modelling completed of the company’s Unicorn molybdenum-copper-silver deposit near Corryong in north east Victoria.

The work has resulted in the estimation of an updated Mineral Resource to a total of 203 million tonnes at 0.06 per cent molybdenum equivalent at 0.04 per cent molybdenum equivalent cut off reported according to the JORC Code.

 

Total JORC Mineral Resources by cut‐off grade – August 2012. Source: Company announcement

 

“Dart Mining is very pleased with the result of the updated JORC Mineral Resource and is now in a position to move quickly to finalise the Unicorn scoping study scheduled for release in October,” Dart Mining managing director Lindsay Ward said in the company’s announcement to the Australian Securities Exchange.

“A 100 per cent Mineral Resource upgrade to 203 million tonnes, of which 102 million tonnes is at Measured status (at 0.07 per cent molybdenum equivalent) is a promising result for the company.

“Even better is the extensive high grade block of the Measured Mineral Resource (54 million tonnes at 0.08 per cent molybdenum equivalent) accessible from surface with a minimal strip ratio.

Should Unicorn move into production at a later stage these high grade blocks could assist early cash flows from the project.

“This is very encouraging for the economics of the Unicorn deposit.”

Dart Mining said the total Mineral Resource of 203Mt at 0.06 per cent molybdenum equivalent remains open at depth below 450 metres.

The company also made note of high-grade mineralisation (2m at 0.48 per cent molybdenum) that it intersected in a single hole at a depth of 538 metres indicating that this was encountered some 200m below the current Mineral Resource base.

Dart’s combined Measured and Indicated Mineral Resource stands at 138 million tonnes at 0.06 per cent molybdenum equivalent (at a 400 parts per million molybdenum equivalent cut off).

At a cut off of 400ppm molybdenum equivalent the total Mineral Resource contains 72,000 tonnes (159 million pounds) of molybdenum, 98,000 tonnes (216 million pounds) of copper and 19.4 million ounces of silver in-situ metal.

Dart Mining claims this resource base could support a mine life in excess of 20 years at 5 million tonnes per annum production rate or approximately 15 years at 10Mtpa – a production rate the company said would enable significant economies of scale should Unicorn become a mining operation in the future.

Dart said these economics would be established by a scoping study to be conducted later this year.

Corazon picks up Canadian gold project

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THE BOURSE WHISPERER: Australian mineral exploration company, Corazon Mining (ASX:CZN) has secured an option to acquire the Beaucage Lake gold project, in the Lynn Lake mining district of central Canada.

The Beaucage project is located in close proximity to Corazon’s core asset, the Lynn Lake nickel-copper sulphide project.

The company said the acquisition further expands its strategic exploration ground holding in the Lynn Lake district.

“This exciting new exploration opportunity offers immediate high priority drill targets within a mining friendly district supported by excellent infrastructure and a region of significant mines gold deposits, such as the 2 million ounce Maclellan gold mine currently looking to be developed,” Corazon Mining managing director Brett Smith said in the company’s announcement to the Australian Securities Exchange.

“This is an exciting exploration play for Corazon and will receive priority attention.”

The Beaucage project is situated approximately 45 kilometres southeast of Lynn Lake, which the company considers provides it with an additional exploration focus while complementing its Lynn Lake nickel-copper project and the Barrington Lake copper deposit.


Corazon project Locations – Lynn Lake district, Canada. Source: Company announcement

Corazon said it believes the high tenor of gold mineralisation, over a large area near Beaucage Lake, may be indicative of a large scale mineralised system.

The company has negotiated terms, which it said minimises the up-front cash impact of the acquisition.

Corazon has the right to acquire 100 per cent equity in the Beaucage Lake gold project by:

–    Payment of C$300,000 to the vendor in staged payments, including C$25,000 payable at the commencement of year 2, C$75,000 to be paid in year 3, C$100,000 to be paid in year 4 with an additional C$100,000 payable before the completion date at the end of year 4;

–    Issuing 250,000 new ASX:CZN shares to the vendor; and

–    Paying a sum of C$40,243 in-lieu of exploration on the mineral claims.

The C$40,243 payment will be reimbursed to Corazon by the provincial government of Manitoba, subsequent to exploration on the project.

The owner will retain a royalty on the project of 2.5 per cent, reducing to 1.5 per cent following the payment of C$1 million.

Blackham calculates resource estimate of 1.35M ounces at M1

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THE BOURSE WHISPERER: Blackham Resources (ASX:BLK) has had a Resource Estimate completed for the M1 deposit at the company’s Matilda gold project.

The M1 deposit is estimated to contain 4.1 million tonnes at 2.2 grams per tonne gold for a total of 281,200 ounces of gold.

As a result, the combined Matilda project estimate has grown to 22.2 million tonnes at 1.9g/t gold for 1.35 million ounces of gold.

 “This resource upgrade to 1.35 million ounces is significant as it is likely to give the Matilda gold project a critical mass for development,” Blackham Resources managing director Bryan Dixon said in the company’s announcement to the Australian Securities Exchange.

“The company will now focus on the development options to re-commission the Matilda Mine.”

The M1 Resource is the largest tonnage and highest grade of the six individual deposits Blackham has modelled at the Matilda Mining Centre.

The company said it expects this will have a positive impact on future mining development studies.

Resources at the Matilda Mining Centre have now reached 641,000 ounces of gold representing the largest gold endowment within the Matilda project.

 

Source: Company announcement

 

Blackham anticipates further increases with the M3 and M8 deposits currently being estimated.

The estimate for M1 represents an increase of 78 per cent above the previous quoted estimate at the Matilda Mine.

The Inferred Resource included the remaining areas where the drill spacing was broader and where the lode had been extended down dip with sparse drill intercepts.

Previous owners have mined 314,000 tonnes at 2.08 g/t gold for 21,000 ounces of gold at M3 and M8 is yet to be mined.

The company indicated the M3 and M8 remaining resource estimates are expected in the coming weeks.

CBD Energy puffs up wind farm with new partner

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THE BOURSE WHISPERER: Diversified renewable energy company, CBD Energy Limited (ASX: CBD) has received a leg up in the development of the company’s wind farm project, located at Taralga in the New South Wales southern highlands.

Global clean energy banker Banco Santander is poised to take a 90 per cent interest in the equity in the project (subject to completion of final due diligence).

The remaining 10 per cent will stay with CBD Energy.

According to CBD Energy, Santander is Europe’s largest bank with a market capitalisation of 49 billion euros and total assets of 1,290 billion euros.

“This is an exciting development for CBD and its development of the Taralga project,” CBD Energy managing director and chief executive officer Gerry McGowan said in the company’s announcement to the Australian Securities Exchange.

“Banco Santander is the world’s number one bank investing in clean energy investments. In 2011, Santander participated in projects which, once built, will have a total installed capacity of 9,181 megawatts.”

CBD Energy explained Taralga to be a circa $250 million project with development approval that is anticipated to have an installed capacity of 106.8 megawatts.

This will be Santander’s first wind project in Australia.

“We have been working with CBD for some time on this exciting project. It is one of the few shovel ready projects in Australia with an off-take agreement,” Santander head of credit markets Asia-Pacific David Swindin said in the CBD Energy announcement.

“Since 2005, Santander has actively developed projects, provided advice, raised third party funds (equity and debt) and invested proprietary equity in renewable energy transactions accounting for more than 900 megawatts.

“CBD have impressed us with their professionalism and entrepreneurship and we are in the process of evaluating other projects they have brought to us.”

The project partners said they are well advanced in raising the debt required and finalising arrangements with the project’s preferred turbine supplier.

When completed in 2014, Taralga is expected to generate 300 gigawatt hours a year of renewable energy, which CBD Energy said would be the equivalent of meeting the annual energy need of 40,000 homes.