Blackham increases Matilda Resource

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THE BOURSE WHISPERER: Blackham Resources has received the results of a review and estimate of the mineral resource for the Regent gold deposit near Wiluna, Western Australia from independent geological consultant Runge.

The Regent deposit is part of the company’s Matilda gold project.

 

Matilda gold project tenure plan. Source: Company announcement

The Regent deposit now has a resource of 3.8 million tonnes at 2.2 grams per tonne for 270,000 ounces of gold.

Blackham said the work conducted on the Regent deposit prior to re-estimation has resulted in an upgrade to both the size of the Resource and the company’s confidence in it.

The Regent Indicated resource now stands at 738,000 tonnes at 2.5 grams per tonne gold.

Blackham has reviewed the pit optimisation and reserve reports for the Regent deposit prepared by the previous owners.

The company has indicated it now intends to update mining studies for this deposit at current gold prices and cost parameters.

The new numbers have increased the total Resources for the Matilda gold project to 790,000 ounces of gold.

Blackham’s exploration work on the Matilda gold project is targeting previously defined deposits, which the company anticipates are most likely to be converted to reserves in the near term.

“The Regent deposit shows good continuity of the main mineralised zones allowing the drill hole intersections to be modelled into coherent, geologically robust wireframes,” Blackham Resources said in its ASX announcement.

“Good consistency is evident in the thickness of the structures, and the distribution of grade appears reasonable resulting in a robust deposit.

“Further drilling is necessary to test the down plunge extensions of the deposit.”

Bauxite Resources establishes Felicitas Resource

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THE BOURSE WHISPERER: Bauxite Resources has announced an initial resource for the Felicitas bauxite deposit, located in the Darling Range Western Australia.

The Felicitas resource is situated within the company’s Bauxite Alumina Joint Ventures (BAJV) joint venture with Yankuang Resources.

The new Resource stands at:

–    73.3 million tonnes at 39.2 per cent aluminium oxide (total), 30.3 per cent aluminium oxide (available), 1.9 per cent silicon dioxide (reactive).

The Felicitas Resource increases to the company’s total bauxite Resource base to:

–    124.5 million tonnes at 40.0 per cent aluminium oxide (total), 30.2 per cent aluminium oxide (available), 2.7 per cent silicon oxide (reactive).

 

Bauxite Resources tenement holding showing Felicitas Resource location. Source: Company announcement

Bauxite Resources said the new resource provides a 143 per cent increase to the total bauxite resources in which the company has an interest.

“The company considers that the new Felicitas resource advances the prospects of the BAJV achieving its stated aim of defining a minimum of 90 million tonnes of refinery grade bauxite to underpin the prospects of development of a long term alumina refinery for the joint venture,” Bauxite Resources said in its ASX announcement.

“Whilst considerable effort will still be required to achieve this objective the company is very pleased with the results achieved by the BAJV team thus far and notes that this resource has potential for increase with further exploration drilling.”

Royal Resources raises Razorback Ridge Resource

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THE BOURSE WHISPERER: Royal Resources has increased the JORC-compliant Resource at the Razorback Ridge Area, situated within the Red Dragon project, which forms part of the company’s Razorback iron ore project in South Australia.

The resource for Razorback Ridge now stands at 845 million tonnes at 23.0 per cent iron.

 

Total JORC-compliant Mineral Resource from Razorback Ridge, Razorback West and Interzone. Source: Company announcement

The company also recently announced a maiden Inferred JORC-compliant Resource at Ironback Hill, which brings the total Resource inventory for the Razorback iron project to 1,522 Million tonnes at 23.3 per cent iron.

Royal explained that the Mineral Resource estimate does not use an iron grade cut-off, as the mineralised zones are stratigraphically confined.

Application of an iron grade cut-off of 26 per cent iron produces a global high grade Mineral Resource of 437 million tonnes at 30.0 per cent iron.

 

Total JORC-compliant Mineral Resource inventory in the Razorback
Iron Project. Razorback Ridge comprises resources from Razorback Ridge,
Razorback West and Interzone. Source: Company announcement

 

The company said that although resource drilling had concluded on both the Red Dragon project and the Ironback Hill deposit, which make up the Razorback Iron project, there are still a number of assays yet to be completed.

“The need to update the pit optimisation work that will support the Pre-Feasibility Study has led to interim resource updates which Royal is happy to announce to the market to keep it fully informed,” Royal Resources said in its ASX announcement.

“Delays being experienced will likely delay the issue of the PFS, originally scheduled for the end of June.”

IOH hits 1.1 billion tonnes at Maitland River

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THE BOURSE WHISPERER: Iron Ore Holdings has received the results of a Stage 2 drilling campaign conducted at the company’s 100 per cent-owned Maitland River project, located near Karratha in Western Australia.

The drilling has resulted in an increase to the JORC Inferred Mineral Resource at the project of 796 million tonnes, taking the total Mineral Resource at Maitland River to 1.1 billion tonnes, with an average resource head grade of 30.4 per cent iron.

A central area within the project, Area B, which IOH said contains over 800 million tonnes of Mineral Resource will be the company’s main focus for further work.

The company is investigating the higher grade zones within Area B with the objective of increasing overall yield, as well as increasing the recovery of the hematite mineralisation.

“A concept study will now be conducted on Area B to define the most suitable mine footprint for a magnetite operation, flow sheet parameters, road and slurry pipe options for transporting the concentrate to the proposed Anketell Port, as well as assessing a number of options for accessing water and power,” Iron Ore Holdings said in its ASX announcement.

“IOH has already engaged with the State Government on potentially securing access to the planned Anketell Port facilities and will make further submissions as soon as the development process and proponency of Anketell Port is settled.”

The company has previously indicated that should it elect to commercialise the Maitland River project, Fortescue Metals Group has the right, subject to it exercising its Iron Valley project option, to farm-in to a 50 per cent or greater interest on commercial terms to be agreed.

 

IOH project locations. Source: Company announcement

In addition to the Coastal Hub magnetite Resource of 1.1 billion tonnes, IOH has 306 million tonnes bedded hematite and Channel Iron Deposit (CID) Resources in the Central Pilbara Hub and 263 million tonnes of CID Resources in the Western Pilbara Hub, for a total JORC Mineral Resource of more than 1.6 billion tonnes.

S&P announces June re-ratings

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S&P announces June re-ratings

THE BOURSE WHISPERER: Standard and Poors (S&P) Indices has announced changes to the S&P/ASX indices, effective after the close of trading on June 15, 2012 as a result of the agency’s June quarterly review.

In its release to the Australian Securities Exchange S&P said in this rebalance the S&P/ASX 200 index hierarchy and the S&P/ASX All Australian indices had been reviewed.

Winners and losers for this round include:

 S&P/ASX 20 – No change.

S&P/ASX 50 Index – June 15, 2012 After Market Close

Addition:
Dexus Property Group (ASX:DXS)

Removal:
Alumina Limited (ASX:AWC)

S&P/ASX 100 Index – June 15, 2012 After Market Close

Addition:
Aurora Oil & Gas Limited (ASX:AUT)
SP AusNet (ASX:SPN)

Removal:
Aquarius Platinum Limited (ASX:AQP)
CSR Limited (ASX:CSR)

S&P/ASX 200 Index – June 15, 2012 After Market Close

Addition:
Cardno Limited (ASX:CDD)
M2 Telecommunications Group Limited (ASX:MTU)

Removal:
Dart Energy Limited (ASX:DTE)
Energy Resources of Australia Limited (ASX:ERA)
S&P/ASX All Australian 50 Index – No Change.

S&P/ASX All Australian 200 Index – June 15, 2012 After Market Close

Addition:
Buru Energy Limited (ASX:BRU)
Cardno Limited (ASX:CDD)
Drillsearch Energy Limited (ASX:DLS)
M2 Telecommunications Group Limited (ASX:MTU)

Removal:
Australian Agricultural Company Limited (ASX:AAC)
Dart Energy Limited (ASX:DTE)
Energy Resources of Australia Limited (ASX:ERA)
White Energy Company Limited (ASX:WEC)

Foyson Resources to sell Myrtle Springs for $1million

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THE BOURSE WHISPERER: Recently-rebranded Foyson Resources has entered into an Option Agreement to sell the company’s interest in the Myrtle Springs magnesite tenements to Calix Limited for a Purchase Price of one million dollars.

“These arrangements are consistent with Foyson’s strategy of rationalising its minerals portfolio by divesting legacy non- core assets to realise cash, which can be used to continue the process of commercialising the company’s outstanding portfolio of resource assets in Papua New Guinea,” Foyson Resources chief executive officer Michael Palmer said in the company’s announcement to the Australian Securities Exchange.
 
Calix has paid Foyson a non-refundable Option Fee and will now commence its Due Diligence process over the Myrtle Springs tenements.

The Option arrangements allow Calix an exclusive period of five months to conduct Due Diligence.

Once Calix has completed its Due Diligence and is happy the parties will execute an Asset Sale and Purchase Agreement and settlement, which Foyson indicated is most likely to occur on or before 31 October 2012.

Myrtle Springs comprises two Mining Lease and two Mining Purposes Leases, situated in the Leigh Creek area in north western South Australia.

The tenements are currently part of Foyson’s magnesium smelter project that was proposed for Port Pirie in the early 2000s.

Foyson, under its previous moniker of Mil Resources, had maintained this interest as a magnesite mine, with ongoing contractual sales.

The project is a good fit for Calix in its business as a technology company which is commercialising its proprietary calciner technology.

The company’s core technology is a Catalytic Flash Calcination (CFC) Reactor that can heat a mineral in seconds to change its chemical property.

The resulting mineral has a range of global applications in diverse industries.

Calix is proposing to use magnesite and dolomite ore from Myrtle Springs as feed stock to a calciner and manufacturing facility with the end product being magnesium oxide board for use in the building construction industry.

Potash West granted new Dandaragan Trough tenements

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THE BOURSE WHISPERER: Potash West has been granted three new Exploration Licences covering the central and western portions of the Dandaragan Trough, located 60 kilometres north of Perth in Western Australia.

The tenements, E70/4137, E70/4138 and E70/4139, have a combined area of 620 square kilometres.

Potash West said the new tenements consolidate its 2,905sqkm holding over the Dandaragan Trough.

 

Dandaragan trough project area showing newly granted tenements. Source: Company announcement

 

The company is set to immediately commence negotiations with landowners in order to acquire surface rights to the more prospective areas of the tenements.

Once it has received approvals to commence its work programs, the company said it anticipates to be drilling on the newly granted tenure by the end of the year.

“The granting of these three tenements consolidates our dominant land holding in the world-class Dandaragan Trough,’ Potash West managing director Patrick McManus said in the company’s announcement to the Australian Securities Exchange.

“Having such a dominant position enables Potash West to accelerate our regional exploration program.”

June is shaping up as a hectic time for the company with a 2,500m drilling program at Marchagee and Walyoo Hill scheduled to commence in the first week of the month.

In the third week of June the company anticipates up to 10,000m of air core drilling will begin at the Dinner Hill prospect.

The drilling program is designed to test the continuity of the greensand host unit at Dinner Hill and provide sufficient sample density for the definition of a JORC-compliant potash resource.

Goodrich Resources takes control of Zodiac

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THE BOURSE WHISPERER: Goodrich Resources has expanded its project portfolio following the acquisition of a 52 per cent interest in unlisted exploration play Zodiac Resources.

Goodrich said the acquisition complements its already substantial exploration ground in central New South Wales and presents the company synergies to ongoing exploration and potential development activities.

The acquisition brings with it the project portfolio of Zodiac, which includes exploration licences covering 447 square kilometres in the Lachlan Orogen metallogenic province of NSW.

 

Location of Zodiac projects in relation to nearby Goodrich projects in NSW. Source: Company announcement

 

The main project is the Yeoval project, which includes a JORC-compliant Inferred Resource of 12.9 million tonnes at 0.38 per cent copper, 0.14 grams per tonne gold, 2.2 grams per tonne silver, and 120 parts per million molybdenum.

The Wilga Downs project measures approximately 300sqkm and is in a good neighbourhood sitting close to the Northparkes copper-gold mine of global mining house Rio Tinto and the Tomingley gold project of Alkane Resources.

The package also includes the additional projects of the Yarrowitch diamond mine in NSW and the Troy Creek copper-gold project in Western Australia.

 “This acquisition provides Goodrich with a strong strategic tenement position in the vicinity of significant producers,” Goodrich Resources chairman Alex Alexander said in the company’s announcement to the Australian Securities Exchange.

“It delivers exploration targets having significant potential for mineral discovery, one of which is next door to one of our current projects.”

Zodiac was controlled by Alexander and related parties, who transferred the 52 per cent stake to Goodrich for no consideration.

Firestrike Resources forms JV with Escalante Star

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THE BOURSE WHISPERER: Perth-based Firestrike Resources has completed negotiations with private Colorado-based company Escalante Star LLC to establish an incorporated joint venture.

The newly-formed JV has been established to explore and develop the Elephant Canyon gold and base metals project, located in Elephant Canyon, Utah.

 

Source: Company announcement

Firestrike said it is moving ahead with plans to commence RC drilling across a multiple fissure vein system known as the Coronado trend, which the company said is considered to be part of a lager epithermal system associated with porphyry related base metals, and precious metals mineralisation.

“This project is considered to have strong potential for gold, copper plus other base and precious metals,” Firestrike Resources said in its ASX announcement.

“It is geologically similar to the Rio Tinto mine at Salt Lake City (Bingham Canyon/Kenecott) and the closer Tintic mining district where Rio Tinto is also seeking to bring Andover Mining Corp. Big Hill copper gold project into production.”

Firestrike Resources managing director David Holden recently paid a visit to the project area, which the company said had confirmed the presence of historical pits and shafts throughout the property demonstrating significant historical mining.

The visit also confirmed the presence of copper and sulphide mineralisation in outcrop throughout mine waste dumps and exposure of skarn alteration within limestone.

Firestrike indicated its immediate focus is upon the Coronado Trend, which it claimed is traceable for over 1.2 kilometres by approximately 400 metres wide.

The zone has historical mine workings along its strike length and gold in historical rock chip samples collected from the workings from previous explorers in the region.

The company also indicated its intentions to continue developing its Australian projects.

A drilling program at Firestrike’s gold projects at Halls Creek in Western Australia remains scheduled to be undertaken during 2012.

A recently completed infill soil sampling at the company’s project near Ballarat in Victoria has identified a number of follow up gold targets.

Wolf raises $5 million from major shareholders

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THE BOURSE WHISPERER: Dual-listed (ASX and AIM) specialty mineral exploration and development company Wolf Minerals has received subscriptions for 18.5 million shares to raise $5 million.

The shares have been picked up by two of the company’s major shareholders in Resource Capital Fund V and Traxys Projects LP, which have subscribed for 16.7 million ordinary shares and 1.85 million ordinary shares respectively at a price of 27 cents (17 pence) per share.

In the first tranche Wolf will issue 4.35 million shares under its 15 per cent placement capacity (ASX Listing Rule 7.1) consisting of the Traxys Shares and 2.5 million of the RCF Shares, increasing RCF’s shareholding to 19.9 per cent.

The second tranche consisting 14.2 million RCF Shares will be issued subject to shareholder approval.

“We welcome the continued support of RCF and Traxys in this turbulent market,” Wolf Minerals managing director Humphrey Hale said in the company’s announcement to the Australian Securities Exchange.

“Wolf values the strong working relationship it has with its senior shareholders and looks forward to their ongoing support as we work to bring the Hemerdon project into production as a world class source of tungsten supply.”

Project location. Source: Comapny web site

Wolf Minerals said the subscriptions will provide additional working capital as the company works to finalise financing arrangements over its Hemerdon tungsten and tin project, in Devon, in the south-west of the United Kingdom over the coming months.

The company will put the funds to use to ensure it can maintain its development schedule and cover costs associated with construction of the Hemerdon link road and arranging project debt facilities.

When it was admitted to the AIM market recently Wolf envisaged that funding to develop the Hemerdon project to comprise a mix of debt and equity.

Since that time, the company has agreed to terms with senior lenders for a project finance facility, and with off-take partners for additional debt funding.

These provide a significant proportion of the capital costs Wolf outlined in its Definitive Feasibility Study in May 2011 as well as working capital for the Hemerdon project through to the project being cash flow positive following the anticipated commencement of production in 2014.