THE BOURSE WHISPERER: Southern Crown Resources has completed a JORC compliant resource estimate on the soil target at its Xiluvo Rare Earth Element (REE) project in Mozambique.

The company has estimated an Indicated category Mineral Resource of 1.1 million tonnes at 2.05 per cent total rare earth oxides (TREO) has been estimated at a cut-off grade of one per cent TREO.

Southern Crown claims the resource contains a good balance of light and heavy rare earth elements containing an above average quantity of the five critical rare earth oxides (CREO) neodymium, europium, terbium, dysprosium and yttrium.

This group of CREO is projected to be in critical undersupply for the next five to ten years.

“Generation of an indicated JORC resource at our Xiluvo REE project marks an important milestone for Southern Crown,” the company’s managing director Dr Jock Harmer said in its announcement to the Australian Securities Exchange.

“Being unconsolidated and lying on surface, the soils represent a rare earth deposit that is expected to be easy and cheap to mine, positioned alongside excellent rail and paved road access to the port of Beira only 110 kilometres away.

“Achieving an indicated category resource on one of our projects within six months of acquisition is a fantastic achievement.

“We will now look to embark on a comprehensive program of metallurgical tests to identify an optimum process to concentrate the REE from the soils.”

Southern Crown’s Xiluvo REE project covers part of the Monte Xiluvo carbonatite complex situated in the Sofala Province of Mozambique inland of the major Mozambique port of Beira.

Geological sketch map of the Monte Xiluvo carbonatite complex showing the location of the REE enriched soils. Source: Company announcement

 The Xiluvo complex is bound on the northern side by the paved EN6 national road and on the west and south by the national rail routes linking Zimbabwe (via Mutare) and Beira.

Southern Crown has a Joint Venture Agreement with Promac Lda, a Mozambican quarrying and construction company that holds a mining license over the area and operates a quarrying operation exploiting the calcitic carbonatite for use as construction aggregate.

Under the terms of the agreement Southern Crown can earn up to 85 per cent ownership of the REE assets by spending US$1,000,000 developing the project.

THE BOURSE WHISPERER: Burkina Faso-focused gold exploration play Ampella Mining has announced an independently verified upgrade to its gold resource estimate for the Konkera prospect, located within the company’s Batie West gold project.

The company said the Mineral Resource has been prepared in accordance with the JORC Code and is an estimation of gold for the Konkera Resource covering a total strike length of 4.9 kilometres.

The resource area is made up of five interconnected prospects: Konkera East, Konkera Main, Konkera North, The Gap and Kouglaga.

At a 1.0 grams per tonne gold cut-off, the Indicated Resource component within the global resource comprises 20.8 million tonnes at 1.9 g/t gold for just less than 1.3 million ounces gold.

The Inferred Resource component comprises 21.9 million tonnes at 1.9 g/t gold for just over 1.3 million ounces gold.

Ampella claims the new Konkera Resource (at 1.0 g/t gold cut-off) now represents Burkina Faso’s largest single undeveloped gold resource.

The Indicated and Inferred Mineral Resource estimate for Konkera is based on drill results the company has received to date from its ongoing resource drill programs at Batie West.

“The three million ounce mark in three years is a tremendous achievement by the company and its dedicated exploration team who are the first to explore the Batie West permits which Ampella holds 100 per cent in its own right,” Ampella Mining managing director and CEO Dr Paul Kitto said in the company’s announcement to the Australian Securities Exchange.

“This resource milestone is a reward and testament to all who have supported the company from the outset which include our loyal shareholders, staff and the Board.
 
“At the Konkera prospect, gold mineralisation extends over 4.9 kilometres and remains open at depth and along strike.

“Potential exists for a large tonnage long-life open pit gold project with additional potential for underground development based on a higher grade component containing a combined Indicated and Inferred Resource of 13.9 million tonnes at 2.9 grams per tonne gold for 1.3 million ounces at a 2.0 grams per tonne gold cut-off.
 
“The Resource estimate will be immediately incorporated into the Pre-Feasibility Study mine plan scheduled for completion at the end of Quarter one 2012.”

THE BOURSE WHISPERER: Poseidon Nickel has submitted a detailed Mining Proposal for the Mount Windarra Mine to the Department of State Development of the Western Australian Government.

The proposal is seeking approval to both restart mining operations at Mount Windarra and to build a processing plant on the site.

The proposal includes mining up to 500,000 tonnes of ore per annum from Mount Windarra with an initial mine life of six years.

The Windarra project has a resource base of 6.6 million tonnes of ore at an average nickel grade of 1.67 per cent, of which approximately 58 per cent is included in the Mount Windarra resource with the remaining ore located at Cerberus and South Windarra.

Source: Company announcement

Poseidon’s plans for the site entail the construction of a 700,000 tonne capacity nickel sulphide concentrator to process ore from Mount Windarra and from the Cerberus mine.

The company has indicated a construction time for the plant and associated infrastructure of approximately 12 months.

It has also indicated the new plant will be built largely inside the footprint of the historical plant.

“The size of the plant selected provides good economies of scale and processing costs are likely to be in line with other nickel peer producers in Western Australia,” Poseidon Nickel said in its announcement to the ASX.
 
The company’s Mining Proposal application includes construction of the following infrastructure:

–    Existing underground mine, ventilation shafts, access portal and underground crusher chamber;

–    Refurbishment of existing vertical haulage shaft to reduce decline haulage costs;

–    Flotation concentrator plant including power plant and water; and

–    Accommodation camp, use of exiting administration buildings, workshops and lay down areas.

“Following a detailed evaluation of the mine, in conjunction with the projects geotechnical and mining consultants, Poseidon has chosen a sub-level cave mining method as the safest and most cost effective method to recover the ore,” the company said.

“This mining method is possible due to the sub-vertical nature of the ore body and should provide one of the lowest nickel sulphide mining costs in Western Australia.”

Poseidon said it also intends submitting other mining, environmental and works approval applications.

These will include a separate Mining Proposal for the Cerberus deposit and are likely to be submitted by the end of this year.

THE BOURSE WHISPERER: The New Zealand-based partner of ASX-listed CO2 Group Limited, CO2 New Zealand has secured a $10 million carbon sequestration project in with the Iwi Maori community on the Land of the Long White Cloud’s North Island.

CO2 Group holds a 45 per cent interest in CO2 New Zealand.

The project is to be undertaken in partnership with the Iwi and other local authorities, and according to CO2 Group will bring additional benefits such as carbon based afforestation, erosion control and waterway management.

“This is a significant project for CO2 Group and further strengthens our New Zealand business,” CO2 Group chief executive officer Andrew Grant said in the company’s announcement to the Australian Securities Exchange.

“It also diversifies our revenue streams and client base, and it is in line with our strategy of partnering with leading blue chip organisations, municipalities and government bodies.”

As well as securing this particular investment project, CO2 New Zealand has also been able to secure over $7 million of long term carbon contract sales with major New Zealand Emission Trading Scheme (ETS) compliance parties.

Grant went on to point out t that CO2 New Zealand is continuing to expand its range of services within the country, further positioning it as a broader based environmental services company.

He provided an example of this diversification to be the mapping of Pre-1990 forestry land currently being undertaken by CO2 New Zealand for a range of its clients.

Owners of pre-1990 forest land are subject to deforestation obligations under the New Zealand Emissions Trading Scheme.

The decrease in land value for some pre-1990 forest landowners as a result of the ETS rules will be partially offset by a one-off free allocation of New Zealand Units (NZUs) from the Government.

CO2 New Zealand is currently involved in the mapping of more than 220,000 hectares which will realise close to 5.7 million NZUs for clients.

Co2 Group claims this makes CO2 New Zealand the largest land applicant to the New Zealand Government for Pre-1990 forest allocations on behalf of its clients.

“This area of our business continues to grow and we are partnering with a number of leading blue chip organisations in the energy, agriculture, forestry and manufacturing sectors to manage their mapping and application activities,” Grant said.

“It is further evidence of our diversified environmental services model.”

CO2 Group said it is in strong shape financially with no debt and a growing cash position.

THE BOURSE WHISPERER: ASX-listed Wolf Minerals is soon to be a multi-listed company as it seeks admission to the AIM market of the London Stock Exchange.

AIM (Alternative Investment Market) is the London Stock Exchange’s international market for smaller emerging companies.

It is considered to be the most successful growth market in the world, and since its launch in 1995, more than 3,000 companies from around the world have listed on its boards.

Wolf said it expects to gain admission to the AIM market from 8.00am (United Kingdom time) on 30 November 2011, and that trading of the company’s shares on AIM will also commence as of this date.

Wolf will trade on AIM under the ticker WLFE.

The company’s AIM listing is a compliance listing and is being managed by leading London-based investment bank Evolution Securities.

Wolf is seeking to list its entire existing ordinary share capital on AIM and has indicated that there will be no capital raising associated with the listing.

“Having delivered the Definitive Feasibility Study for the Hemerdon project in Quarter Two this year, we believe a London listing is a logical next step for the company,” Wolf Minerals managing director Humphrey Hale said in the company’s announcement to the Australian Securities Exchange.

“Wolf is committed to developing the project as a major mine in the south-west of England, and also contributing to the rejuvenation of mining in the country as a whole.

“We look forward to sharing our success with investors whilst simultaneously enjoying the benefits of UK capital market access.”

Wolf’s core project is the world class Hemerdon Tungsten and Tin project located in the county of Devon, in the United Kingdom.

Source: Company announcement

The company is focused on developing the project into a large scale, open pit mining operation, which it envisages becoming a major new source of supply of tungsten for global manufacturing and industry.

The Hemerdon project has been mined and explored at times throughout the 20th Century.

Wolf has built up a JORC defined model, leading to the successful completion of bankable feasibility study that it claims identifies Hemerdon to be a highly economic potential producer of low cost tungsten located near a range of viable infrastructure routes.