Central Asia Resources rings up more gold sales from Dalabai

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THE BOURSE WHISPERER: Central Asia Resources has made further gold sales of approximately 1005 ounces for US$1.5 million from the company’s Dalabai gold project in Kazakhstan.

Central Asia said it expects to receive the sales proceeds by the week ending June 22, 2012.

As well as the being set to pocket US$1.5M in gold sales, the company indicated it also has approximately 500 ounces, from the first two weeks of production in June, on resin, which will be trucked to mining services company Dank in Semey, Kazakhstan for processing.

Central Asia now has its plans in motion to construct a second heap leach pad at Dalabai as part of its progress to increase production to 2,000 ounces of gold per month at the plant.

“Now that all our systems are in place we can move towards hitting our nameplate production of 2000 ounces of gold per month,” Central Asia Resources executive chairman Guy Warwick said in the company’s announcement to the Auistralian Securities Exchange.

“Joint managing director Robin Gill and his staff have again exceeded budget expectations with May production of 1,005 ounces of gold versus an anticipated 1,000 ounces.”

Atlantic Gold earns government nod for Touqouy acquisitions

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THE BOURSE WHISPERER: Atlantic Gold has received notice from Nova Scotia Minister of Natural Resources that vesting orders have been issued over the company’s Touquoy gold project under the provisions of the Mineral Resources Act for 14 surface land titles.

The 14 titles were the only remaining non-Crown titles (of a total of 63 non-Crown titles) over the planned Touquoy gold mine site the company required to complete the surface title acquisition program.

 

Touquoy gold project location. Source: Company web site.

 

“The company is delighted to have successfully completed the surface titles acquisition program at the Touquoy gold project,” Atlantic Gold executive director Wally Bucknell said in the company’s announcement to the Australian Securities Exchange.

“It represents a major milestone in the development timeline of the project, and with Environmental Assessment Approval and the Mineral Lease already in place, is one of the last major requirements prior to commencing development programs to take the project into production.”

Atlantic expects to assume possession of the 14 properties over the coming months as compensation to the affected land owners is determined under the provisions of the Expropriation Act.

However, Atlantic Gold will make an application under the Expropriation Act for immediate possession of 11 of the properties which are abandoned and/or have indeterminate title or ownership.

Compensation will be determined in a post-possession process using recently completed valuations of those properties.

Atlantic subsidiary, DDV Gold is already in possession of, and is the legal title holder of, 49 titles having completed numerous purchase and sale agreements.

Atlantic Gold said it welcomed the Minister’s decision adding it sets the stage for the development of a major and modern gold mining operation long awaited by many in Nova Scotia.

Spitfire Resources identifies further manganese targets

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THE BOURSE WHISPERER: Spitfire Resources has identified further high-priority targets during the early stages of a planned 100 square kilometre Gradient Array Induced Polarisation (GAIP) survey program being conducted at the company’s South Woodie Woodie manganese project.

Spitfire has now completed three of the planned 16 blocks, from which it has identified further large chargeable anomalies since it last updated the market in May 2012.

“Carrying on from the success of last year’s 18.5 square kilometre GAIP program, which identified the Contact North deposit, Spitfire has identified large chargeable anomalies in each of the first three blocks extending the prospective area north from the Contact/Contact North deposits,” Spitfire Resources said in its ASX announcement.

 


Spitfire Resources GAIP update map. Source: Company announcement

“It is envisaged the current GAIP program will provide multiple high priority targets for future drilling as Spitfire drives towards its goal of being a significant supplier of manganese ore to Asian steel producers.”

Spitfire has a current exploration target of 20 to 30 million tonnes of manganese grading 15 to 20 per cent manganese.

The company has completed metallurgical test work on diamond core from Contact and Contact North indicating product grades of up to 44.6 per cent manganese achievable from simple beneficiation.

Spitfire said further interpretation it has carried out of the target anomalies has shown a strong correlation with previous GAIP results that resulted in the discovery of the 11.3 million tonne at 15 per cent manganese Contact/Contact North Inferred Mineral Resource the company announced in March 2012.

“Spitfire continues to be encouraged by the ongoing success of the GAIP program and is looking forward to testing these new, highly-prospective targets in the future,” the company said.

“A further update on the GAIP program will be provided to the market when available.”

What the Brokers say

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THE BOURSE WHISPERER: The team at Breakaway Research provided a couple of resource company notes this week. Here we take a quick look at the highlights.

ZYL Limited (ASX:ZYL)

ZYL’s objective is to become a leading producer of anthracite for both South African and export markets.

It has prioritised development of its Mbila project in KwaZulu-Natal province for the delivery of high-grade anthracite, primarily to South African industrial consumers.

Over the medium-term, the company also plans to develop its Kangwane project, consisting of the Kangwane South and Central areas, in Mpumalanga province, which will produce anthracite for export markets.

Mbila is ZYL’s most advanced project and is on track to commence producing anthracite in Q3 2013. An interim Feasibility Study outlined a project with high operating margins between A$82.2 per tonne and A$59.2 per tonne.

The project is located close to critical infrastructure, minimising up-front capital costs to A$84.5 million.

A shortlist of preferred debt providers has been selected.

Current reserves of 33.4 million tonnes support a long life operation, as well as providing potential for expansion.

ZYL Limited is an ASX-listed metallurgical coal exploration and development company with two advanced anthracite projects in South Africa.

All of ZYL’s projects host large anthracite resources and are in close proximity to key infrastructure, including ports and rail.

ZYL is well placed to take advantage of a growing shortfall in South African and international anthracitic coal markets.

Recommendation: Speculative Buy

 

 Blackham Resources (ASX:BLK)

Blackham Resources recently acquired the Matilda gold project located in the Wiluna region of Western Australia.

The project’s assets include previously operating mines, some infrastructure and a JORC resource of 12.5 million tonnes at 1.9 grams per tonne gold for 757,000 ounces of gold, made up from four nearby deposits.
 
Blackham has a near term exploration target of plus one million ounces of gold with significant exploration potential at depth and along strike of the existing deposits.

A recent 4,000m RC drill campaign confirmed the prospectivity of the targets by intersecting wide zones of ‘ore grade’ mineralisation.

Further opportunity exists to identify additional deposits hosted along 40km of strike over the Wiluna Mine Sequence and 10km strike along the Coles Find Mine Sequence.

The Wiluna plant, owned and operated by Apex Minerals, is located in close proximity to the Matilda project and has both oxide and sulphide treatment circuits.

Potential exists to toll treat oxide ore through the plant providing Apex with additional revenue and operational efficiencies (as the plant is underutilised) while Blackham has the opportunity for early cash flow to fund additional exploration and development costs.

Blackham is also evaluating the potential of coal export and a Coal to Liquids facility to process lignite from the 1.4 billion tonne Scaddan and Zanthus deposits located near the port of Esperance.

The project is well serviced by infrastructure and may warrant a standalone mining operation for the export market should an appropriate lignite market be identified.

The Matilda gold project already hosts a sizable resource however significant exploration potential still exists along strike and at depth of the known deposits and resource upgrades are likely.

Blackham has potential to develop sufficient resources to justify its own operation or for early cash flow via the toll treatment of ore through the nearby and underutilised Wiluna gold plant, providing additional funding for exploration and development.

Recommendation: Speculative BUY

Doray releases Andy Well maiden reserve

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THE BOURSE WHISPERER: Doray Minerals has announced a maiden high-grade mining reserve for the company’s 80 per cent-owned Andy Well gold project, located 45kilometres north of Meekatharra, in the Murchison region of Western Australia.

Doray is making progressing a Bankable Feasibility Study at Andy Well, with the aim of commencing open pit mining in the second half of 2012 and first gold production in mid-2013.

“This maiden high grade open pit and underground mining reserve is another important milestone in the progression of the Andy Well project towards development and comes just over two years after the discovery drill hole and just over a year since the maiden Wilber Lode resource,” Doray Minerals managing director Allan Kelly said in the company’s announcement to the Australian Securities Exchange.

“With an average open pit grade, across two open pits, of almost 15 grams per tonne and an average underground mined grade of just under 13 grams per tonne, which takes into account all dilution related to minimum mining widths, this project represents a fantastic near term production opportunity for the company.

“We also believe there is substantial near term upside at Andy Well with the recent results from the nearby Judy Zone confirming our long held belief that there exists the potential for multiple deposits within the project.”

 

Long Section of Wilber Lode showing maiden mining reserve and proposed
open pit and underground mine infrastructure. Source: Company
announcement

The maiden JORC-compliant Mining Reserve for Andy Well is based on the Wilber Lode Resource Model the company announced in March 2012, and has been calculated utilising mining and processing assumptions developed as part of the Bankable Feasibility Study currently nearing completion.

The combined high grade open pit and underground mining reserve for Andy Well currently stands at:

–    570,000 tonnes at 12.8 grams per tonne gold for 235,000 contained ounces.

A recently completed scoping study for the project indicated maiden Mining Reserve to be:

–    (stage one) open pit – 32,000 tonnes at 14.9g/t gold for 15,000 contained ounces; and

–    underground – 507,000 tonnes at 12.6g/t gold for 206,000 contained ounces.

Talga Gold to commence Swedish drilling

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THE BOURSE WHISPERER: Talga Gold is about to commence its maiden drilling program on the company’s 100 per cent-owned graphite and iron deposits in northern Sweden.

The drilling is due to kick off by the end of June; just weeks after the company acquired the Swedish portfolio of Teck Resources.

 

Talga’s graphite project locations and infrastructure in north Sweden. Source: Company announcement

That acquisition was completed earlier than expected due to Talga being satisfied to the projects within the portfolio demonstrating mineralised potential and project development upside.

The initial program is to comprise 5,000 metres of diamond drilling across four graphite and one iron ore projects.

The company said it expects drill results will enable it to conduct preliminary economic studies on several deposits.

The objectives of the upcoming drilling program are:

At the Nunasvaara and Raitajärvi graphite projects the company is looking to expand respective current JORC-code compliant Inferred Resources of 3.6 million tonnes at 23 per cent carbon and 0.5 million tonnes at 10.8 per cent carbon, with the intention to, in part, upgraded to the Indicated Resource category.

“Drill samples will supply fresh material for detailed metallurgy and the commencement of economic studies,” Talga Gold said in its ASX announcement.

“It is envisaged that the resource upgrades can be completed in Q4 2012 and scoping studies commenced in Q1 2013.”

The Jalkunen and Pajala graphite projects currently contain JORC code-compliant Exploration Targets with a respective combined total of 10 to 35.2 million tonnes at 3.4 per cent to 30.6 per cent carbon (Jalkunen project) and 1.3 to 2.3 million tonnes at 3.9 per cent to 40.9 per cent carbon (Pajala project).

The company said its objectives include:

–    Extending the graphite intercepted in historic drilling;
–    Upgrading at least part of these Exploration Targets into JORC-code compliant Inferred Resource category and;

–    Providing fresh material for graphite specification and metallurgy testwork.

At the Masugnbysn iron ore project Talga hopes to expand the size of the current JORC-code Inferred Resource of 44.1 million tonnes at 30.9 per cent iron at the Junosuando deposit and at least in part upgrade this to Indicated Resource category.

“The initial drilling focus will be on shallow and higher grade zones identified from the historical database review,” the company said.

“Drillcore will provide material for metallurgical testing, concentrate specification and ore type appraisal by strategic partners and off-take customers.”

Central Asia Resources signs Kazakhstan gold MOU

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THE BOURSE WHISPERER: Central Asia Resources has signed a memorandum of understanding (MOU) with Kazakhstan gold producer, JSC AK Altynamas.

The MOU anticipates a toll treatment agreement for the processing of Central Asia’s ore from the company’s Altyntas, Kengir and Kepken deposits in Kazakhstan at Altynalmas’ nearby Akbakai plant.

Altyntas is the largest of the three Central Asia prospects with a defined resource of approximately 600,000 ounces of gold.

Kepken has a 411,000-ounce gold resource, with 264,000 ounces of Indicated Resources and 174,000 ounces of Inferred Resources while Kengir has a 127,000-ounce gold resource, with 56,000 ounces of Indicated resources and 69,000 ounces of Inferred resources, at a cut-off grade of 0.5 grams per tonne gold.

Central Asia had previously planned to develop Altyntas in two stages with a heap leach processing followed by construction of a carbon-in-leach plant that would be funded by production from the company’s Dalabai gold project, which commenced production in February this year.

The agreement with Altynamas will replace these plans and according to Central Asia will allow it rapid development of a mine at Altyntas without the need for complex planning and permitting of a processing facility.

Central Asia expects being able to achieve higher recoveries from Altynalmas’ plant, which will offset toll treatment and trucking costs for ore or concentrate.

Over the past 18 months, Altynalmas has upgraded operations at its Akbakai site, which is close to Central Asia’s Altyntas, Kengir and Kepken projects.

This upgrade involved construction and improvement of infrastructure and processing facilities to international standards, as well as an introduction of a mechanised mining method to its underground mining operations.

“We are fortunate to have found such good partners in JSC AK Altynalmas and its team,” Central Asia Resources chairman Guy Warwick said in the company’s announcement to the Australian Securities Exchange.

“It is not just the availability of a world-class facility at Akbakai only 30 kilometres from our biggest deposit at Altyntas, but equally important is co-operation with the team whose business network and understanding of the local development processes will greatly accelerate bringing Altyntas into production.”

Tasman enters tenement sell-up to BHP

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THE BOURSE WHISPERER: Tasman Resources has agreed to sell five Exploration Licences (ELs) and one Exploration Licence Application (ELA) to global powerhouse BHP Billiton.

All six tenements are located on the Stuart Shelf in South Australia.

 

Location Plan showing Tasman’s ELs and ELA to be transferred to BHP Billiton. Source: Company announcement

Total consideration for the sale is $3 million, which will be split up as $2.925million being payable upon transfer of the ELs with the remaining $75,000 due upon transfer of the ELA to BHP.

The sales are each subject to several conditions precedent, including satisfactory completion of due diligence by BHP Billiton, Ministerial Consent and completion of EL and ELA transfers within six and nine months, respectively,” Tasman Resources said in its ASX announcement.

“Following satisfaction of these conditions precedent, BHP Billiton will acquire from Tasman ELs 4206, 4300, 4405, 4770 and 4857, and ELA 2011/299.”

The ELs and ELA cover a total area of 1,176 square kilometres and are located West, North and North East of Olympic Dam, and South East of Woomera.

The Agreements do not include Tasman’s EL 4322, which relates to the Vulcan iron-oxide copper gold uranium discovery located approximately 30km north of Olympic Dam, which is the subject of a Farm-in/Joint Venture Agreement with Rio Tinto Exploration.

Tasman said the sale would enable it to focus on Vulcan joint venture project, which it considers to be a priority at this stage.

Mutiny Gold announces high-grade gold Reserves for Deflector

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THE BOURSE WHISPERER: Australian gold-copper resources company Mutiny Gold has announced a maiden JORC-compliant ore reserve and initial Life of Mine (LOM) production plan for the company’s Deflector gold-copper deposit in Western Australia.

The Deflector maiden initial ‘LOM production plan’ produces 450,000 ounces of gold equivalent including, 349,000 ounces of gold, 17,530 tonnes of copper and 429,000 ounces of silver.

 

Deflector deposit LOM production statement by Resource classification. Source: Company announcement

 

According to the company this LOM production plan includes reserves of 332,000 ounces of gold equivalent.

Mutiny Gold’s latest re-optimisation of Deflector contains mineral resources of 3.26 million tonnes at 5.1 grams per tonne gold, 6.01 grams per tonne silver and 0.82 per cent copper for 532,000 ounces of gold, 630,000 ounces of silver and 27,000 tonnes of copper.

Measured and Indicated Resources total 2.35 million tonnes at 4.7g/t gold, 6.82g/t silver and 0.90 per cent copper for 354,000oz of gold, 514,000oz silver and 21,000t of copper.

“We have forecast an initial life of mine of seven years for Deflector,” Mutiny Gold managing director John Greeve said in the company’s announcement to the Australian Securities Exchange.

“The recent highly successful exploration expansion results will see Deflector as potentially reaching a 10 year plus mine life.”

“Our Bankable Feasibility Study is nearing completion and the Mutiny team is keen to show the wealth of potential present at Deflector.

“We have a corporate goal of reaching 2.5 million gold ounces for Deflector, and with the upside present this is now firmly in our sights.”

Mutiny said the economic analyses came from a new updated resource model produced by using an Ordinary Kriged estimation using Micromine software.

The estimate includes a program of infill drilling completed by the company, but does not include recently reported high-grade intersections from the company’s 2012 exploration program.

Cleveland Mining acquires Brazilian iron ore project

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THE BOURSE WHISPERER: Cleveland Mining has its sights set on building a 5 million tonne per annum iron ore operation in northern Brazil.

The company’s ambitions arise from the recent signing of an Option Agreement over the Ferradura iron ore project.

Cleveland had a review of existing drilling information conducted by mining consulting group SRK, which it said confirmed the project’s potential to hold a mineral resource of several hundred million tonnes of hematite and magnetite mineralisation.

“The Ferradura project represents an outstanding acquisition for the company,” Cleveland Mining managing director David Mendelawitz said in the company’s announcement to the Australian Securities Exchange.

“Hematite and magnetite iron-ore mineralisation is abundant at Ferradura, along with the infrastructure and supportive government that is needed to build a robust operation.

“I believe that this is one of the world’s best undeveloped iron ore addresses due to the amount of iron mineralisation, a skilled labour force, and presence of power, road and port infrastructure, along with a government that actually encourages the development of projects.”

Cleveland said it had already commenced engineering studies at Ferradura and will start metallurgical testwork and a major drilling program in the coming months.

The company has provided numerous check samples of previously drilled core to a laboratory for size-fraction analysis and confirmation of grades.

“Within a few short months, we expect to have a significant JORC-compliant Resource for the previously drilled area,” Mendelawitz added.

“We will also begin to investigate many of the numerous exploration targets in the Ferradura tenements.”

Cleveland is busy in the land of the Samba with construction of it Premier gold mine nearing completion.

The company said it anticipates commissioning the plant at Premier within a month.