THE BOURSE WHISPERER: Emerging iron ore miner, Lincoln Minerals has been granted an additional iron ore prospective Exploration License, named Nantuma, located near Warramboo on South Australia’s central Eyre Peninsula.

Nantuma is immediately adjacent Iron Road’s 2.1 billion tonne iron ore deposits.

Lincoln said the new license adds to its portfolio of near mining and advanced iron ore deposits and tenements throughout the Peninsula, including proposed maiden production from Gum Flat near Port Lincoln.

“Nantuma adds to Lincoln Minerals’ portfolio of iron ore projects in the highly prospective Gawler Craton where iron ore has been mined for more than 110 years,” Loncoln Minerals said in its ASX announcement.

Lincoln’s current Eyre Peninsula iron holdings comprise more than 120 million tonnes of JORC classified Inferred and Indicated iron ore resources, with additional high priority iron ore exploration targets in excess of 1 billion tonnes, at Gum Flat, in the Cummins-Wanilla district and at Eurilla.

The company said it aims to commence mining direct shipping (DSO) hematite iron ore from its Gum Flat project late this year to early 2013 subject to getting all necessary approvals.

Lincoln Minerals’ Managing Director, Dr John Parker:
“The new exploration license enhances Lincoln’s long-term focus on iron ore exploration targets on Eyre Peninsula,” Lincoln Minerals managing director Dr John Parker said in the company’s announcement to the Australian Securities Exchange.

“While Iron Road’s Murphy South and Boo Loo deposits are relatively low grade at an average grade of 16.2 per cent iron, Iron Road has demonstrated through prefeasibility test work that a high quality concentrate grading 67 per cent iron may be produced using a coarse grind size of  less than 106 microns.
 
“Lincoln Minerals looks forward to undertaking detailed aeromagnetic surveys and analysis at Nantuma in the near future to prioritise exploration targets for drill testing later in 2012.

“With the prospects of a potential new bulk minerals port at Port Spencer, only 120 kilometres to the southeast of Nantuma, Eyre Peninsula is shaping up to be a revitalised and substantial modern era iron ore mining district for the future and Lincoln Minerals is keen to be an integral contributor to that new resource profile in the region.”

THE BOURSE WHISPERER: Carpentaria Exploration says it has strengthened its position as a leading tenement holder in the Braemar Iron Province.

The company’s pronouncement was supported by the announcement of a new joint venture agreement with Maosen Australia that gives Carpentaria the chance to earn a 100 per cent interest an exploration licence in South Australia.

Maosen is a private company based in Queensland, which has other iron ore interests within South Australia, and an extensive network of connections within the Chinese steel industry.

The tenement covers over 20 kilometres of the Braemar Iron Formation, which hosts Carpentaria’s $3.2 billion Hawsons iron project, and is also located adjacent to Carpentaria’s South Dam JV.

Carpentaria Exploration executive chairman Nick Sheard claimed the agreement to be a significant boost for the company’s iron ore interests, highlighting its position as first mover in the province.

“This new Braemar Joint Venture, together with the Hawsons iron project, South Dam and the Torrowangee EL in New South Wales, gives CAP a combined 1,182 square kilometres of tenement holdings and more than 81 kilometres of collective strike of the magnetite siltstone,” Sheard said in the company’s announcement to the Australian Securities Exchange.

“Carpentaria will use its extensive knowledge of the Braemar Iron Formation to fast-track exploration, giving the opportunity to potentially develop a new iron ore project just 200 kilometres from a capital city and close to rail and port infrastructure.”

Under the terms of the JV, Carpentaria is required to pay Maosen Australia a $25,000 execution payment, subject to 30 days due diligence.

On renewal of the tenement, Carpentaria is required to complete 500m of drilling and award Maosen 200,000 fully paid shares.

To earn a 60 per cent interest in the JV, Carpentaria must define a 200 million tonne magnetite resource within three years of initial access and pay Maosen $100,000.

Carpentaria may earn an 80 per cent interest by completing a prefeasibility study and making a further cash payment to Maosen of $200,000, at which time Maosen has the right to contribute on a pro rata basis.

Should Maosen then elect not to contribute to further development, Carpentaria could earn a 100 per cent interest in the project for a further $1millon cash payment to Maosen, whereby Maosen would revert to a 1.5 per cent Net Profit Royalty.

At the completion of a detailed feasibility study, Maosen could elect to regain a 10 per cent interest.

THE BOURSE WHISPERER: Resource and Investment (RNI) has greeted the New Year by announcing following a deal to acquire the Fortnum gold project and surrounding exploration tenements in the Bryah Basin of Western Australia.

The Fortnum project, owned by BlueCrest subsidiary Grosvenor Gold, is located 170 kilometres north-west of Meekatharra in WA.

RNI has entered into a Sale & Purchase Agreement with BlueCrest Mercantile Master Fund Limited.

Under the terms of the agreement RNI will acquire all the issued capital of Grosvenor Gold for a total consideration of $35 million payable as $20 million in cash and $15 million of fully paid ordinary shares in RNI.

RNI said the deal sets it up to become a gold producer, with significant exploration upside.

“Fortnum hosts a JORC-compliant resource of 1.2 million ounces at a grade of 2.2 grams per tonne and has more than 100 walk-up drilling targets based on an extensive exploration database compiled by previous owners, offering outstanding exploration potential for both lode gold and VMS copper-gold deposits,” Resource and Investment said in its ASX announcement.

The acquisition also entails the one million tonne per annum Fortnum processing plant, which RNI said it plans to bring back into production within 12 to 18 months.

The acquisition will increase RNI’s footprint in the Bryah-Padbury Basin from its current standing of 434 square kilometres to 2,225 square kilometres.

“This will make RNI a dominant tenement holder in the region with control of a 100km strike length of the highly prospective Narracoota Volcanics, host to the world-class DeGrussa copper-gold deposit currently being developed by Sandfire Resources,” the company said.

THE BOURSE WHISPERER: Western Areas has updated the Mineral Resource at Spotted Quoll.

The update includes the first resource estimate for the Stage 2 area at the project.

The previous mineral resource estimate for Spotted Quoll was released in January 2009.

It comprised a total of 2,021,600 tonnes at an average grade of 6.2 per cent nickel for 125,460 tonnes contained nickel.

The revised mineral resource estimate for Spotted Quoll comprises a total of 3,054,900 tonnes at an average grade of 5.9 per cent nickel containing 179,000 tonnes nickel; 85 per cent is in the Indicated Mineral Resource category.

Mineral Resource Statement 31 December 2011 Spotted Quoll Deposit
above lower cut-off of zero per cent nickel. Source: Company
announcement

The upgrade represents an increase of 78 per cent in reported contained nickel metal compared to the figures the company reported in its September 2011 Quarterly Report.

Surface diamond drilling carried out by the company during the past 24 months has defined a Mineral Resource for the Stage 2 target area, located between 630 metres and 1050 metres below surface.

This constitutes an Indicated Mineral Resource of 923,500 tonnes at 5.6 per cent nickel for 51,960 tonnes contained nickel, and an Inferred Mineral Resource of 244,900 tonnes at 5.1 per cent nickel for 12,570 tonnes contained nickel.

This has exceeded the company’s initial target for this area of 40,000 tonnes to 60,000 tonnes contained nickel.

“This resource upgrade clearly demonstrates the world class nature of the Spotted Quoll deposit and positions the recently commenced Spotted Quoll underground mine for a substantial increase in mine life,” Western Area operations director Dan Lougher said in the company’s announcement to the Australian Securities Exchange.

“Further work will now be conducted to convert this resource into a Probable Reserve.

“This will include optimisation of the production schedule with the aim of increasing the annual nickel output from the mine.

“This could also potentially lead to a mill upgrade.”

THE BOURSE WHISPERER: IronClad Mining has finalised key infrastructure and mining contracts for its Wilcherry Hill project in South Australia.

Construction works on the project are due to commence later this month following the recent announcement by the SA Government of formal approval for IronClad’s Program for Environmental Protection and Rehabilitation (PEPR) – formerly known as the Mining and Rehabilitation Plan  (MARP) – which was the final statutory hurdle for the project.

IronClad Mining project location map. Source: Company website.

IronClad said it is on track to commence maiden production from the mine in the current March quarter, with first product to be exported to Chinese customers in the June quarter.

“We are focusing on the employment of local people in order to enhance the project’s connection with the area’s community while at the same time building a reliable workforce,” IronClad Mining executive chairman Ian Finch said in the company’s announcement to the Australian Securities Exchange.

“As the second junior mining company to move into iron ore production in SA in recent times, and the first from the state’s Eyre Peninsula region, our contracting strategy is working well for IronClad and for South Australia’s expanding resources industry and the flow-on effect from that upsurge.

“Years of planning and hard work are now only weeks away from coming to fruition for our company.”

The Wilcherry Hill iron ore project is an 80:20 Joint Venture between IronClad and its associated company, Trafford Resources.