THE BOURSE WHISPERER: Tiger Resources has formed a strategic alliance with Zambia-focused copper explorer Chrysalis Resources.

The deal will entail Tiger investing up to $1.68 million to acquire a 19.9 per cent interest in Chrysalis by subscribing for any shortfall shares arising under Chrysalis’s current rights issue and/or taking a separate placement of Chrysalis shares.

Tiger will be entitled to appoint one representative to the board of Chrysalis and the parties will form a joint technical committee with equal representation from Tiger and Chrysalis.

Tiger presently has an exploration team based in Lubumbashi, in the Democratic Republic of Congo, which is located within 200 kilometres of Chrysalis’s Shikila and Kabwima projects in the Zambian Copperbelt.

 

Location of Chrysalis’s Zambian projects and Tiger’s Kipoi and Lupoto projects. Source: Tiger Resources announcement

Tiger said the strategic alliance with Chrysalis offered the company an opportunity to expand into the Zambian Copperbelt for a modest outlay.

“Chrysalis’s Zambian projects host significant potential for copper mineralisation and are located within the vicinity of the Lumwana and Kansanshi copper projects and Blackthorn Resources Limited’s recent discovery at Kitumba,” Tiger Resources managing director Brad Marwood said in the company’s announcement to the Australian Securities Exchange.

“In addition, Tiger will gain exposure to the Doolgunna West copper-gold project in Western Australia, adjacent to the high-grade De-Grussa copper-gold project under development by Sandfire Resources.”

Chrysalis acquired the Zambian copper project in June this year by way of purchasing a 100 per cent interest in Zambian Copper Pty Ltd, which in turn owns 99.9 per cent of Sedgwick Resources.

Sedgwick in turn owns the Zambian copper project, which covers an area in excess of 3,000 square kilometres, of which 2,180sqkm is in the Copperbelt region of northern Zambia.

 “The strategic alliance with Tiger is a key step in planning future exploration on the recently acquired Zambian copper prospects,” Chrysalis Resources executive chairman Dr Neale Fong explained in his company’s ASX announcement.

“Tiger brings a wealth of experience and resources to the alliance and Chrysalis looks forward to working closely with Tiger on not only the Zambian copper project but also Chrysalis’ other Western Australia-based projects.”

Chrysalis’ West Australian exploration projects include the Doolgunna West copper-gold project located within the Meekatharra Mineral Field.

Earlier this year Chrysalis signed a Joint Venture farm-in agreement with Talisman Mining to enable further exploration of this project.

THE BOURSE WHISPERER: Rox Resources has announced the retrieval of historic drilling results that it claims indicate a new potentially high grade zinc deposit located near the McArthur River zinc mine on the company’s Reward zinc project in the Northern Territory.

The find was made by Rox’s partner, Teck Australia as part of its work on the Reward project tenement package, which entailed an extensive review of historical open file company reports and assessment of over 100 drill holes.

Teck identified several areas to have potential to host high-grade zinc deposits of the McArthur River style.

Given the extent of known exploration, the Teena Basin presented itself as the highest potential drill ready target.

Teck subsequently located the drill core for historic holes Teena 2, 4, 4A, 6 and 8.

Intersections of past zinc mineralisation includes:

–    11.3 metres at 10.9 per cent zinc and lead, 14 grams per tonne silver from 908.8 metres;

–    8.6m at 9.84 per cent zinc and lead, 23g/t silver from 789.6m;
 
–     7.98 per cent zinc and lead, 4g/t silver from 629.2m; and

–    13.1m at 6.02 per cent zinc and lead, 5g/t silver from 599.2m.

 

Rox’s interpreted Teena cross-section. Source: Company announcement

 

Rox said despite the core being over 30 years old and heavily degraded and oxidised, mineralised intervals can still be clearly identified.

The company indicated this did give rise to a number of quality control issues in relation to the historical nature of the data with not all records necessary to meet the requirements of the JORC Code having been located.

“Teck are to be congratulated on their diligence and thoroughness in tracking down the existence of these drill holes, locating the drill core and compiling the data,” Rox Resources managing director Ian Mulholland said in the company’s announcement to the Australian Securities Exchange.

“It also highlights just how prospective our project tenements are, since this is now potentially the third significant zinc deposit, in addition to McArthur River and Myrtle that has been identified in the region.

“One can draw similarities to the Mount Isa district where a number of significant zinc-lead (and copper) deposits (e.g. Hilton and George Fisher) lie within 20 kilometres of the original Mount Isa Mine discovery.

“Needless to say, we’ll be examining our other prospects in great detail as well.”

Rox currently has an earn-in and joint venture agreement with Teck over its Reward project tenements, where Teck is spending $5 million to earn an initial 51 per cent interest and can spend up to $15 million to earn up to 70 per cent.

The main prospect on the Reward project tenements has been the Myrtle zinc deposit where a JORC compliant Indicated and Inferred Mineral Resource of 43.6 million tonnes grading 4.09 per cent zinc and 0.95 per cent lead has been defined by Rox.

Drilling has recently been completed at Myrtle by Teck and assay results are expected in about four weeks.

THE BOURSE WHISPERER: A recent Pre-Feasibility Study conducted for Azure Minerals on the company’s Promontorio copper-gold-silver project, located in Chihuahua State, Mexico has returned positive results.

According to Azure the study came back demonstrating the robust technical and economic viability of the project, with its current mining inventory of 656,000 tonnes supporting a 150,000 tonnes per annum mining and processing operation over an initial mine life of four and a half years.

The Promontorio deposit consists of massive, high grade copper sulphide mineralisation containing significant grades of gold and silver.

The current JORC-compliant Mineral Resource for the project is:

 

Source: Company announcement

The Promontorio Mineral Resource is defined over a strike length of 200 metres and remains open in all directions.

Recent drilling undertaken by Azure intersected high-grade copper-gold-silver mineralisation outside of the current Resource boundaries.

These intercepts extend the north-south strike length of the mineralised system to 400m, which the company considers to confirm additional mineral resources may be defined by further drilling.

Azure has an Exploration Target for the Promontorio project of one to two million tonnes at grades of four to five per cent copper, 1.5 to 2.5 grams per tonne gold and 80 to 120 grams per tonne silver.

Azure said it will recommence drilling as soon as practicable to increase the Resource.

“Importantly, the scenarios demonstrated that the project retained a positive cash flow within all the range of options studied,” Azure Minerals said in its ASX announcement.

“The Upside Case assumes future exploration success sufficient to double the existing Resource and realise a mining inventory of 1.3 million tonnes at the same metal grades and recoveries.

“Specifically, an operation based upon the Upside Case scenario could return Gross Revenue of US$395 million and Free Cash of US$155 million.”

The study has confirmed an underground operation at Promontorio to be the ideal scenario using a mechanised bench stoping mining method.

 

Decline and level development layout. Source: Company announcement

 

Access to the orebody will be via a decline initiated as a portal and adit into the side of a hill adjacent to the outcropping mineralisation.

 

 

THE BOURSE WHISPERER: Matilda Zircon is expecting its cash till to ring the bell with USD$13 million in revenue about to hit from the second shipment of high‐value zircon‐rutile Heavy Mineral Concentrate (HMC) from the company’s Lethbridge South mine in the Tiwi Islands.

The revenue will be a healthy boost to Matilda’s cash position, which stood at $5.9 million at 30 June 2012, which the company said will enable it to repay the debt it carries and to assist with funding the development of its Keysbrook project in Western Australia.

The company said it is now poised to make a transition from being a relatively small mineral sands miner to a sizeable producer with cashflow and growth prospects.

“We now have a substantial cash position with further inflows expected over coming months, including the third and final shipment from Lethbridge South,” Matilda Zircon chief executive Trevor Matthews said in the company’s announcement to the Australian Securities Exchange.

“This cash will give us the financial capacity to continue to advance the development of Keysbrook, which will be a game‐changer for Matilda, and drive a step‐change in the valuation of the company.”

The sale of almost 10,000 tonnes of HMC was made to China’s largest mineral sands processor, Tricoastal Minerals (Holdings) Company Limited, which is contracted to acquire all the HMC from Lethbridge South.

A final shipment from Lethbridge South is scheduled for the fourth quarter.

Matilda anticipates receiving 90 per cent of the sales proceeds early next week with the balance to be adjusted in accordance with assay results and paid once the product has been shipped to Haikou Port in China.

The company said the injection of cash means it can consider bringing forward repayment of $4.5 million it owes fellow WA mineral sands group Doral and may also repay the $1 million owed to major shareholder Stirling Resources.

Matilda has until 27 September 2012 to repay Doral, however, once that debt has been paid, it will trigger the start date of Doral’s 90‐day option to take a placement in Matilda ordinary shares (250 million Matilda shares at 23 cents per share).

If Doral elects to exercise this option, it would take an approximate 15 per cent shareholding in Matilda.

The move would also deposit a further $5.75 million into Matilda’s coffers.

 

THE BOURSE WHISPERER: Foyson Resources has signed a Heads of Agreement (HOA) to enter into a strategic relationship with TSX-listed company TVI Pacific to explore and develop Foyson’s mineral projects in Papua New Guinea.

TVI Pacific is a Canada-based company focused on the production, development, exploration and acquisition of resource projects in the Philippines.

“The company is delighted to enter into this strategic relationship with TVI to develop Foyson’s assets in PNG,” Foyson Resources chairman Doug Halley said in the company’s announcement to the Australian Securities Exchange.

“TVI has excellent skills and demonstrated competencies in exploring, developing and operating resource projects in the Asia Pacific region and we welcome them to both our share register as an aligned strategic partner and to assisting in developing our projects in PNG.”

The HOA covers the terms of a number of proposed transactions to be conducted between the two companies.

These will involve a private placement of Foyson shares, to be carried out in two tranches, two joint ventures and the right to enter two other joint ventures and a secured loan.

TVI will acquire up to 25 per centof Foyson’s expanded share capital via a placement to be completed in two tranches.

The first tranche will consist of 68 million shares in total equal to approximately 9.96 per centof Foyson’s issued capital at 1.3 cents per share raising $884,000.

Following receipt of shareholder approval, TVI has the right to subscribe for a second tranche of 160 million shares to be issued at 1.5 cents per share raising a further $2.4 million.

TVI and Foyson have agreed to enter joint ventures to develop Foyson’s PNG tenements at Amazon Bay and New Britain with options over the exploration licence applications on New Ireland and Massau and Tanga Islands.

“The Foyson projects represent an exciting opportunity to diversify TVI into a new country with strong Government support for mining and to diversify TVI’s asset mix and we are excited to be pursuing these projects with Foyson,” TVI Pacific chairman and president Clifford M. James said.

TVI has the exclusive right to conduct due diligence on Foyson, its subsidiaries and operations until the close of business (Australian Eastern Standard Time) on Friday 24 August 2012.

Subject to the first tranche of the placement transaction closing by this date, this period of exclusive due diligence will be extended until 8 October, 2012.

If TVI determines to subscribe for Tranche 2 of the placement, the exclusive due diligence period will be extended to 30 November, 2012.