THE BOURSE WHISPERER: Australian diversified resources company Reed Resources has increased the Gold Reserve inventory at the company’s Meekatharra gold project by 40 per cent.

Reed said the headline increase in total Reserves to 750,800 ounces of gold from 533,700 ounces had been achieved through the company’s continued geological evaluation of its assets as well as conversion of the recently announced large increase in resource at Paddys Flat and Reedy deposits.

 

Plan view of Paddys Flat deposit locations. Source: Company announcement

The company said it intends maintaining a strategic evaluation of its assets in order to ensure sustainable operations and a long-term production outlook.

“The continued expansion of openpit Reserves confirm the potential of the Meekatharra gold project to be a significant long-life producer of gold,” Reed resources managing director Christopher Reed said in the company’s announcement to the Australian Securities Exchange.

“This fundamental step forward for the company not only expands our future production sources but places the company within sight of defining a million ounce reserve.

“The Bankable Feasibility Study is almost complete and we are advanced in our assessment for future expansions.”

The optimisation of Resources at Paddys Flat (openpit) and Reedy (underground) identified 185,300 of Probable Reserve ounces at a grade of 1.42 grams per tonne gold.

Reed said it has also identified mineralisation beneath the Aladdin pit at Nannine, and at the Maid Marion prospect 20 kilometres north of Meekatharra.

These resources have been optimised classifying an additional 30,100 ounces of Probable Reserves at 1.63 grams per tonne gold.

THE BOURSE WHISPERER: Hot Rock has expanded its South American geothermal exploration portfolio via the recent granting of the Turu geothermal tenement located in Southern Peru.

The granting of the Turu tenement brings the company’s holding in Peru to four granted tenements, in addition to its 13 tenements in Chile.

 

Locations in Peru of geothermal tenements granted to HRL (red) and
tenements still in process (green), showing the location of the recently
granted Turu project. Source: Company announcement

 

Hot Rock said it has a further five tenement applications for volcanic geothermal prospects in Southern Peru currently being processed, which it expects to be granted this year.

The company described the Turu tenement as being associated with a volcanic caldera complex.

According to the company the tenement displays field evidence for a geothermal reservoir with subsurface temperatures suitable for electrical power generation.

“With this grant, Hot Rock further cements its position as the leading geothermal company within two of the most exciting, emerging geothermal provinces in the world today, in Peru and Chile,” Hot rock executive chairman Mark Elliot said in the company’s announcement to the Australian Securities Exchange.

“We are now able to commence community consultation work at Turu after which we will proceed with surface exploration studies, comprised of geology, geochemistry and geophysics.

“Of note, these activities will be undertaken outside of a Joint Venture program that we are currently advancing with the Energy Development Corporation (EDC) from the Philippines, the largest integrated geothermal company in the world, involving our already granted Quellaapacheta and Chocopata projects.

“This will allow Hot Rock to independently proceed with the proving and development of our fully-owned projects in Peru, in parallel with the two Joint Venture projects.”

THE BOURSE WHISPERER: Mutiny Gold has received confirmation from Cobra Mining that the latter intends to begin gold production at the White Well project in Western Australia in the second half of this year.

Mutiny entered into an agreement with Cobra last year that established fast-tracking of the development of the White Well gold project, located east of Cue in WA.

Under the deal Cobra will fund and conduct the mining operations for a 70 per cent share of the profit. Mutiny will receive 21 per cent, with joint venture partners Lee/Daxon receiving 9 per cent.

Over the last three months Cobra has conducted mining and economic studies on the project including comprehensive reviews of the metallurgy and geological data.

 

Resource for the White Well deposit. Source Company announcement

 

According to Mutiny Cobra has said it will commence the permitting process to begin mining and is aiming for production to commence in the second half of 2012.

Upon Cobra attaining approval of its mining proposal they must pay $750,000, of which Mutiny receives 70 per cent.

“The decision by Cobra to proceed with mining operations at White Well is a fantastic development for Mutiny shareholders,” Mutiny Gold managing director John Greeve said in the company’s announcement to the Australian Securities Exchange.

“In addition to the upfront $750,000 payment, the company expects to receive strong revenues from White Well over the coming years as mining operations ramp up.

“This will supplement the expected strong revenues from the company’s flagship Deflector project which targeting commencement of production in late 2012.”

Mutiny outlined the operation strategy for the White Well deposit to be mined by open pit.

The agreement does not include the advanced exploration targets of Bounty and Bligh, which are separate zones within the White Well tenement.

Mutiny said its alliance with Cobra provides it with an opportunity for a revenue stream in times of record gold prices at the lowest possible risk.

The company said the development of White Well comes at a time when it is moving ahead with its proposed development of the Deflector gold/copper project in Western Australia.

THE BOURSE WHISPERER: Monto Minerals has released a revised Resource calculation for the Baal Gammon mine located within the Herberton Tin Field of Northern Queensland.

The new calculation was derived from a 28 hole diamond drilling program conducted by Kagara at the Baal Gammon mine, which was completed in October 2011.

The revised Baal Gammon Resource now stands at 2.8 million tonnes at one per cent copper, 40 grams per tonne silver, 0.2 per cent tin and 39 grams per tonne indium.

The drilling also identified a larger than anticipated high grade zone within the Baal Gammon Resource of 829,000 tonnes at 2.5 per cent copper, 96g/t silver, 0.4 per cent tin and 96g/t indium.

“The purpose of the Baal Gammon Resource calculation was to optimise the current pit design to ensure maximum recovery of the higher grade portions of the Resource,” Monto Minerals said in its ASX announcement.

“The identification of the larger than expected high grade Resource zone within the broader Baal Gammon Global Resource has enhanced the economics of the Baal Gammon mine with this material having been prioritised for production from the commencement of mining in late September 2011.

“Copper in this zone averages 2.5 per cent with significant silver credits of 96 grams per tonne.

“Investigations are continuing on the potential to recover tin.”

Baal Gammon ore is currently being processed at Kagara’s Mt Garnet plant.

THE BOURSE WHISPERER: As it prepares to begin construction work on its Wilcherry Hill mine on the Eyre Peninsula in South Australia IronClad has announced the raising of $6 million.

The cash has been raised through the placement of 7.5 million shares with Hong Kong-based resources industry investor, New Page Investments.

The agreed price for the placement is 80 cents per share, which represents a premium of 20% on the 10th January 2012 closing price of 66.5 cents for IronClad shares on the Australian Securities Exchange.

New Page Investments is the major shareholder in China-based global steel trading, distribution, processing and manufacturing company, Novo Group, which is dual-listed on the Hong Kong and Singapore stock exchanges, and already has investments in the Australian iron ore industry.

“The successful conclusion of this share placement marks another significant milestone in what will be a defining year for the Company and its shareholders, and in the development of our Wilcherry Hill asset,” IronClad Mining executive Chairman Ian Finch said in the company’s announcement to the Australian Securities Exchange.

“Funds raised by the New Page share placement will be used to finance start-up works at the Wilcherry Hill site – due to commence later this month after the imminent awarding and signing of key infrastructure and mining contracts.”

IronClad said its maiden production from the mine is due to commence in the current March quarter, with the first shipment of iron ore on track to be exported to Chinese customers in the June quarter.

To add some extra sparkle to his day, Finch also advised the market that the company was close to formalising another off-take agreement for production from the Wilcherry Hill project.

IronClad said it expects negotiations for the additional off-take agreement to be finalised later this week and would involve 50 per cent of all iron ore produced by the IronClad-Trafford Resources joint venture in the first four years of operations.