Black Cat Syndicate Identifies Balagundi JV Base Metals Targets

THE BOURSE WHISPERER: Black Cat Syndicate (ASX: BC8) has reached the second stage of the earn-in it has in place with Essential Metals (ASX: ESS) at the Balagundi Joint Venture, part of the Kal East gold project in Western Australia.

Recent work carried out by the JV at Balagundi has demonstrated it to be prospective for both gold and VMS style, base metal deposits.

Surface geochemical programs overlayed on structural interpretation identified new targets including:

Dingo Dam (copper-gold-zinc): a 2km long copper-gold-zinc anomaly containing historical mine shafts;

Anvil (copper-lead-zinc-gold): a discrete, approx. 1.5 kilometres long copper-lead-zinc-gold anomaly with values up to 634 ppm copper; and

Brontes and Asterope (copper): two gossans, within 500m east of Anvil.

“Balagundi has the potential to host both gold and base metal deposits and we look forward to the second stage of the farm-in with Essential Metals,” Black Cat Syndicate managing director Gareth Solly said in the company’s ASX announcement.

“Black Cat controls a pipeline of exploration projects to fortify the longevity of the Kal East Gold Project and our systematic exploration across the tenement package is only just starting to hint at that potential.

“Balagundi is a prime example of an overlooked historical high-grade goldfield and we have identified numerous excellent geochemical targets in the area; our upcoming geophysical surveys will greatly aid in both gold and base metal targeting.

“Black Cat is rapidly moving towards production while continuing to actively explore our large and underexplored land holding.”

Black Cat entered into Farm-in and JV Agreements with Essential in July 2019 to earn 75 per cent of Balagundi by spending $600,000 on the project within five years.

The earn-in period has two stages, Stage 1 sees $150,000 of expenditure spent within the first two years, while stage 2 sees a further $450,000 spent in the next three years.

Black Cat has now completed Stage 1 of the earn-in and is proceeding with Stage 2.








Poseidon Nickel DFS Declares Windarra Gold Project a Goer

THE BOURSE WHISPERER: Poseidon Nickel (ASX: POS) released the outcomes from a Definitive Feasibility Study (DFS) carried out on the company’s Windarra gold tailings project located in the Eastern Goldfields region of Western Australia.

Poseidon Nickel is considering development of the Windarra gold tailings project, which comprises the Windarra Gold Tailings Mineral Resource contained within the North and South tailings dams and the Lancefield Gold Tailings Mineral Resource.

The Mineral Resource comprises 4.75 million tonnes at the Windarra North and South dams at an average grade of 0.73 grams per tonne gold and 1.21 million tonnes at Lancefield at an average grade of 1.27g/t gold, all classified as Indicated resources.

The study determined an Ore Reserve of 5.54 to 5.73 million tonnes, subject to mining method, grading 0.84g/t gold and 2.1g/t silver for approximately 150,000 ounces of contained gold and 375,000 ounces of contained silver.

The study found Windarra Gold Tailings could produce approximately 53500 to 55200 ounces gold, subject to mining method, over a 45-month period, utilising low-cost, low-risk tailings mining methods and a conventional 1.5 million tonnes per annum modular designed processing facility.

“The results from the DFS demonstrate a robust and profitable project retreating the gold tailings at Windarra and Lancefield,” Poseidon Nickel managing director and CEO Peter Harold said in the company’s ASX announcement.

“The gold tailings present a project which can generate positive cash flows to be invested into our nickel business, which is our primary focus.

“The tailings project would be ideal for a partnership style arrangement or an outright sale.

“We will be actively looking for a high-quality partner to work with to bring this project into production or a party to acquire the project so we can monetise the asset for Poseidon shareholders.”






Burley Minerals Thrown to the ASX Sharks in IPO Feeding Frenzy

THE BOURSE WHISPERER: Burley Minerals (ASX: BUR) was welcomed onto the boards of the ASX on Wednesday by a feeding frenzy that saw the 20 cent IPO list on the positive side of 37 cents.

Burley Minerals listed on the back of the Yerecoin project, which the company believes has the nickel-copper-PGE potential to become another Julimar deposit that is located just 60 kilometres to the south.

The Yerecoin project already hosts a JORC 2012 compliant Indicated and Inferred Mineral Resources totalling approx. 247 million tonnes of high-grade coarse-grained magnetite at an average grade of 30 per cent iron.

Metallurgical studies have demonstrated magnetite concentrate at 68 per cent iron concentrate grade, considered by Burley to be a potentially premium coarse-grained magnetite product with low level impurities, suitable for direct sinter plant feed.

The company is led by CEO and managing director Gary Powell, who is supported by non-executive director Jeff Brill and executive chairman Bryan Dixon.





Company Merger Results in Project Spinout

THE BOURSE WHISPERER: With the ink barely dry on their recent merger agreement, Gascoyne Resources (ASX: GCY) and Firefly Resources (ASX: FFR) are set to spin out project from their combined portfolio into a new entity.

The two companies announced a binding Demerger Implementation Deed (DID), under which they have agreed the terms of a demerger of various assets.

These include the Paterson copper-gold project, the Forrestania gold project, and lithium mineral rights over various tenements held by both Gascoyne and Firefly, all of which are to be acquired by a newly incorporated wholly owned subsidiary of Firefly, Firetail Resources Limited.

Firetail will initially be a publicly unlisted company with an intention to seek an ASX listing sometime following implementation of the merger.



Matador Mining Completes $16 Million Placement to Fund Cape Ray Gold Project Drilling

THE DRILL SERGEANT: Matador Mining (ASX: MZZ) announced the completion of a raising that delivered proceeds of $16 million.

The funds were raised from the placement of 28.5 million shares at a price of 56 cents per share, which was a 28 per cent premium to the last closing price of Matador shares on 24 June 2021 of 44 cents per share.

Matador explained it was able to issue the New Shares at a premium, as they were issued under the Canadian flow-through share scheme, which provides tax incentives to eligible investors for expenditures that qualify as flow through mining expenditures under the country’s Income Tax Act.

The company indicated the funds raised will enable the company to expand and accelerate exploration activities at the Cape Ray gold project in Newfoundland, Canada.

This increased program is to include expanding diamond drilling from 20,000 metres up to 45,000 metres, increasing the power auger drilling capacity from three to five rigs and increasing the Heli-mag program to 80 kilometres of strike from 40 kilometres.

“I would like to thank both new and existing shareholders for their strong support in this Placement,” Matador Mining executive chairman Ian Murray said in the company’s ASX announcement.

“To have such strong demand highlights the market support for our exploration strategy to systematically test the potential of our Cape Ray Gold Project, in Newfoundland, Canada.

“These additional funds now mean that we can materially accelerate our work program, with the aim of advancing the timing of new discoveries.

“Being able to achieve this is a great result for all shareholders as we reduce dilution whilst also raising additional funds.”








Ardea Resources Completes Capital Raising to fund Kalgoorlie Nickel Project Feasibility Work

THE BOURSE WHISPERER: Ardea Resources (ASX: ARL) has raised $5.7 million to accelerate activities at the company’s Kalgoorlie nickel project (KNP) in Western Australia.

After the cash is banked, Ardea Resources will have more than $10 million cash it intends spending to progress feasibility study work streams, including hydrology and metallurgical drilling programs, metallurgical test work, and pit optimisation studies.

“The proceeds of the placement ensure Ardea is well funded to maintain momentum on accelerated Kalgoorlie Nickel Project feasibility study work streams,” Ardea Resources managing director Andrew Penkethman said in the company’s ASX announcement.

“With the continued expansion of the lithium-ion battery sector and Original Equipment Manufacturers needing to secure sustainable and ethical mineral supply, Ardea’s Kalgoorlie Nickel Project is perfectly positioned to play a leading role with its globally significant nickel-cobalt and scandium resource at Goongarrie with direct transport infrastructure links to the emerging Kwinana Battery Hub We have drill rigs contracted for the KNP Goongarrie Hub to commence drilling water production bores and metallurgical core holes during the September 2021 Quarter.

“Borefield exploration drilling has recently been completed and defined production bore targets are ready for drilling.

“This hydrology drilling will lock in secure process water supplies for the development of our nickel and critical mineral resources at the Goongarrie production hub.

“The metallurgical testwork will provide samples for additional testwork to refine our plans to use mineralised neutraliser sourced during conventional open pit mining as opposed to having to import neutraliser.

“We will also be assessing options to recover additional critical minerals, in addition to the planned nickel-cobalt and scandium production.

“All of these work streams will further enhance the Kalgoorlie Nickel Project and build upon the prefeasibility and expansion studies completed by Ardea in 2018.”









Kalamazoo Resources Expands Victorian Gold Portfolio

THE BOURSE WHISPERER: Kalamazoo Resources (ASX: KZR) bp;stered its portfolio of Victorian gold projects after being granted Exploration Licence EL007323, also known as the Myrtle gold project.

The Myrtle project EL is located within the highly endowed Bendigo Zone of the Central Victorian Goldfields and covers 44 square kilometres of highly prospective goldfields geology, 30km south of the high-grade Fosterville gold mine.

The addition of the Myrtle gold project takes Kalamazoo’s Victorian exploration tenure in the prolific Bendigo Zone to approximately 515sqkm.

“The Myrtle gold project is a great addition to our Victorian portfolio, given its proximity to our nearby Castlemaine and South Muckleford gold projects,” Kalamazoo Resources chairman and CEO Luke Reinehr said in the company’s ASX announcement.

“With the Myrtle gold project located just 30 kilometres from the world-class Fosterville gold mine, it will play an important role in our strategy to consolidate exploration tenure in the immediate vicinity of Fosterville and the highly prospective Central Victorian Goldfields.”








Ora Banda Mining Receives Investor Support with $21M Raising

THE BOURSE WHISPERER: Ora Banda Mining (ASX: OBM) received support for its recent run of operational achievements with commitments from professional and sophisticated investors to raise $21 million.

Ora Banda Mining completed the placement of approximately 124 million new fully paid ordinary shares at an offer price of 17 cents per new share, receiving support from both new and existing shareholders, with Australian and international institutional investors introduced to the register.

The company also announced a share purchase plan (SPP) to existing eligible shareholders, to raise approximately a further $4 million, also at the placement issue price of 17 cents.

The placement and SPP proceeds, together with Ora Banda’s existing cash balance, will be used to fund resource definition and reserve replacement, maiden reserves work, regional exploration, ramp up costs and working capital for the company’s Davyhurst gold project in Western Australia.

“We are very pleased with the support the placement received, and welcome a number of highly credentialed Australian and offshore investors to the register,” Ora Banda Mining managing director David Quinlivan said in the company’s ASX announcement.

“On behalf of the Board, I would also like to thank our existing shareholders for their strong support.

“FY 2021 has been an incredibly busy time for Ora Banda.

“It was the year in which the company started three new mines, installed and commissioned a range of significant infrastructure on site including a new LNG power station, built a new camp, completed the planned process plant remedial works program on time and within budget and then recommissioned this plant.

“All of this achieved during a year of significant global “Covid-19” disruptions.

“With three mines online by the end of June, the company has a solid and flexible production base as processing ramps up to nameplate capacity.

“Funding to progress resource and reserve definition and advance high priority exploration targets ahead of when previously planned will further underpin the company’s long-term future.”










Red 5 Limited Lowers Darlot Gold Mine Production Expectations Due to Labour Shortage

THE BOURSE WHISPERER: Red 5 Limited (ASX: RED) reflected the reality of the effect a booming industry can have by reporting lower-than-planned production at the company’s Darlot gold mine due to mining rates continuing to be negatively impacted by machine operator and labour shortages now prevalent across the mining industry.

Red 5 advised it has revised production guidance for the Darlot gold mine for FY2021 to 74,000 – 78,000 ounces (previously 80,000 – 85,000 ounces) at an All In Sustaining Cost (AISC) of $2,240 – $2,290 per ounce (previously $2,150 – $2,280/oz).

The company explained labour availability at both the Darlot underground mine and the Great Western open pit mine has continued to impact production.

In the March 2021 Quarter, Red 5 commenced mining at the Great Western mine, however due to a shortage of machine operators and truck drivers, the contractor has been unable to ramp up mining activities at the planned rate.

This has delayed the delivery of higher-grade ore to the Darlot Mill into FY2022.

Red 5 management is now undertaking a comprehensive review of the Darlot mining operations, with production and cost guidance for FY2022 to be provided in the September Quarter 2021.

“Red 5 continues to make excellent progress on the King of the Hills gold project, however we continue to face challenges at our Darlot gold mine,” Red 5 managing director Mark Williams said in the company’s ASX announcement.

“The difficulty of sourcing skilled labour for both Darlot and for our new Great Western mine has impacted our ability to achieve our FY21 production guidance.

“As previously announced, King of the Hills remains on schedule and budget and is expected to commence gold production in the June Quarter 2022.”








Blackstone Minerals Announces Gold Asset Spin Out

THE BOURSE WHISPERER: Blackstone Minerals (ASX: BSX) caught punters at the 2021 RIU Sydney Resources Roundup on the hop by taking time from its presentation slot to announce that its wholly owned subsidiary, Codrus Minerals, has lodged a Prospectus with ASIC to raise $5 million in new equity via an IPO and ASX Listing.

Codrus Minerals has lodged its IPO prospectus with ASIC to raise a minimum of $5 million and a maximum of $8 million with the aim of becoming a highly prospective gold company with the spin-out of Blackstone’s Western Australian gold assets, including the Silver Swan South project, Red Gate project and the Middle Creek project.

Codrus’ portfolio is also to include the Bull Run project in Oregon USA, consisting of 90 claims in Baker County in Eastern Oregon, prospective for gold and has been mined since 1929.

“We are delighted to announce the IPO Prospectus for Codrus, enabling Blackstone to create shareholder value with a valuation of $7 million in new Codrus shares received from the non-core gold portfolio, while we remain focused on our Ta Khoa nickel-PGE-copper-cobalt project in Vietnam as well as retaining the Gold Bridge project in Canada,” Blackstone Minerals managing director Scott Williamson said in the company’s ASX announcement.