Marenica Energy Raises $1.6M to Continue Uranium Exploration

THE BOURSE WHISPERER: Marenica Energy (ASX: MEY) completed a capital raising for a total of $1.6 million.

Marenica Energy completed the placement of approximately 16 million fully paid ordinary shares at an issue price of 10 cents per share plus around 16 million free attaching options, expected to raise an approximate total of $1.6 million.

The company explained the options will be granted on the basis of one option for every share subscribed and have an exercise price of 17 cents per share, exercisable within two years.

The placement was completed to sophisticated and new institutional shareholders with Patersons Securities Limited as lead manager.

Marenica said the funds raised will be applied to fund exploration activities and working capital, including to continue to explore Marenica’s Namibian uranium tenement portfolio and, its extensive tenement position in the Erongo region.

Marenica has been granted five new tenements in the Erongo region and it plans to progressively explore each tenement as soon as possible.

Drilling has commenced on the first of those tenements, being EPL 6987, known as Koppies.

The company also intends to advance its Australian uranium projects, being the Angela, Thatcher Soak, Minerva and Oobagooma project areas and Joint Venture holdings in the Bigrlyi, Malawiri, Walbiri and Areva JV, subject to completion of their acquisition from Optimal Mining Limited.

The company will also continue to assess the application of its patented U-pgrade™ beneficiation process to third party assets.

“Over the past 12 months, we have assembled an impressive portfolio of tenements and in the near-term, we expect to have the largest uranium tenement holdings in Namibia,” Marenica Energy managing director Murray Hill said in the company’s announcement to the Australian Securities Exchange.

“We are excited about the potential of the drilling which has recently commenced on EPL 6897 in Namibia and the expected extensions of that drilling into our tenement applications.

“Marenica’s recent counter-cyclical agreement to purchase high-grade uranium resources in Australia, averaging 859ppm U3O8, will increase our uranium resources by 48 million pounds U3O8, when and subject to the expected completion of the acquisition in September.

“Following completion of the acquisition, Marenica will have one of the largest uranium resource inventories of ASX-listed companies, diversified by location and with a revolutionary uranium beneficiation process.

“Based on this, Marenica is set up for an expected turnaround in the uranium sector.

“Marenica continues its exciting phase of development in the uranium space.”





Matsa Resources Commences Ore Haulage to Sunrise Dam

THE BOURSE WHISPERER: Matsa Resources (ASX: MAT) announced the first delivery of ore from the company’s Red October gold mine in Western Australia to the Sunrise Dam gold treatment plant owned by AngloGold Ashanti Australia (AGAA).

Matsa Resources executed a five years Ore Purchase Agreement with AGAA for the purchase of gold ore from the Red October gold mine that is to be treated at the Sunrise Dam gold mine.

AnlgoGold Ashanti’s Sunrise Dam treatment plant is a 3.8 million tonne per annum mill and is located approximately 10 kilometres north of the Red October gold mine and provides Matsa with access to a substantial and modern nearby milling facility.

The haulage route is a predominately Matsa owned and maintained road around Lake Carey of 60kms between Red October and Sunrise Dam.

Matsa has previously delivered ore from its Fortitude and Red Dog gold mines to Sunrise Dam.

“The delivery of first ore from the Red October gold mine is another significant milestone for both Matsa and its shareholders,” Matsa Resources executive chairman Paul Poli said in the company’s announcement to the Australian Securities Exchange.

“It is expected that this will be the start of regular, continuous ore deliveries to Sunrise Dam for the foreseeable future generating a regular income stream in the process.

“Under the previously announced ore purchase agreement, AngloGold are keen to accept potentially all ore from Red October for up to five years allowing us to focus on developing a long-term production profile.

“We remain committed and are confident that we can build a long-term profitable mine at Red October.”





Black Cat Syndicate Extends Bulong Ground Position

THE BOURSE WHISPERER: Black Cat Syndicate (ASX: BC8) has entered into Farm-in and Joint Venture Agreements in respect of the Balagundi project (E27/558) with Pioneer Resources (ASX: PIO).

Balagundi sits adjacent to the north-west portion of Black Cat Syndicate’s Bulong gold project in Western Australia and runs parallel to a major structural trend bounding the Balagundi and Bulong Subdomains.

The company explained the 40.6 square kilometre tenement increases the size of Bulong by around 46 per cent from 87sqkm to 128sqkm.

Balagundi currently comprises five key gold and base metal targets:

Black Widow (gold);
Funnel Web (gold);
Montana (gold);
Trap Door (gold); and
Anvil (base metals).

The Farm-in involves a minimum spend by Black Cat of $150,000 over a maximum period of two years, at which time Black Cat can withdraw.

Black Cat can earn 75 per cent by completing earning expenditure of $600,000 over five years and Pioneer would retain a 25 per cent free carried interest to completion of an approved Bankable Feasibility Study.

Black Cat is the Manager of the Joint Venture.

“Balagundi sits along a major structural trend immediately adjacent to our Bulong gold project,” Black Cat Syndicate managing director Gareth Solly said in the company’s announcement to the Australian Securities Exchange.

“This is a strategic move by Black Cat to expand our footprint around Bulong. Balagundi has four attractive gold targets and one base metal target which will be evaluated over the next two years.

“This work can be done in conjunction with other activities planned for our existing landholdings.

“We look forward to working with the Pioneer team and to unlocking further value around our core landholding.”

Work already completed at Balagundi includes that by Pioneer and previous owners that has collected geochemical and soil data across the project.

Historic drilling has been limited to 281 RAB and AC holes and a further 20 RC holes at an average depth of 72m.

Black Cat draws similarities between Balagundi and Bulong, saying that Balagundi has seen mainly shallow drilling and remains underexplored and highly prospective.

Black Widow: is an extensive gold in soil anomaly partly drilled by Anglo/Redback in the 1990s.

Several discrete geochemical trends exist that split this area into a number of sub anomalies that trend onto Black Cat’s existing leases.

This broad target is hosted by mafic volcanic, gabbro and high magnesian basalt near the eastern margin of the Balagundi Subdomain.

Minimal historic work has been conducted in this area.

Black Widow has only been tested with first pass RAB drilling on a 400m by 100m spaced grid.

Funnel Web: is a large gold in soil anomaly generated by Acacia in the 1990s.

Drill intercepts are interpreted to contain both paleochannel and bedrock hosted gold.

Historic drilling shows bedrock mineralisation is associated with mafic rocks and the southern end of a large, interpreted magnetic alteration zone.

Previous intersections include: 2m at 6.33g/t gold from 49m, 2m at 5.34g/t gold from 42m, and 1m at 8.54g/t gold from 56m.

Montana: is an extensive gold in soil anomaly developed over the contact between high-magnesian basalt and ultramafic units on the eastern boundary of the Balagundi Subdomain.

Montana has only been tested with first pass RAB drilling on a 300m by 100m spaced grid that insufficiently tested the anomaly and warrants further work to identify the source of the gold anomalism.

Trap Door: is a discrete linear gold in auger anomaly which also contains a copper anomaly.

The gold anomalism is associated with an extensive potassic alteration zone, hosted in felsic volcaniclastic sediment and cut by a NW trending structure.

RAB drilling returned intersections of 4m at 3.2 per cent copper from 20m, and 1m at 2.2g/t gold from 10m.

RC drilling chips show copper being hosted by fine veinlets/fracture zones in the volcaniclastic.

Further work is warranted to assess the gold and copper potential in this area.

Anvil: was defined on a 400m by 100m auger grid, with results showing a discrete copper anomaly with values up to 634ppm over an approximate 1.5km of strike length.

Infill soil sampling subsequently defined a coincident copper-lead-zinc (Cu-Pb-Zn) anomaly that remains untested by drilling.





Bellevue Gold Announces $18.5M Placement

THE BOURSE WHISPERER: Bellevue Gold (ASX: BGL) has launched a fully underwritten institutional placement to raise approximately $18.5 million.

Bellevue Gold is offering the placement at 57 cents per share, which represents an 8.8 per cent discount to the closing price of the company’s shares on 23 July 2019 of 62.5 cents per share.

The company declared the placement will strengthen its balance sheet and in conjunction with its existing war chest of $20 million of cash, will enable it to undertake exhaustive infill drilling to further define its existing resource base, in addition to expanding its step-out exploration drilling program over the next 12 months.

The placement is fully underwritten by Canaccord Genuity (Australia) Limited and will result in approximately 32.4 million new fully paid ordinary shares in the company issued to sophisticated, professional and institutional investors.

Bellevue indicated the proceeds from the placement will be used to fast-track several key initiatives at the Bellevue gold project, including ongoing step-out resource growth exploration drilling, an infill drilling program to seek to convert existing inferred resources into measured and indicated resources, and other pre-development activities.

Meanwhile, in conjunction with the placement, the company’s Board members Ray Shorrocks (non-executive chairman), Steve Parsons (managing director) and Michael Naylor (executive director) declared their intention to sell shares in the company at the offer price.

The Director Sell-Down will acount for up to approximately 12 million shares, for total proceeds of up to approximately $6.8 million.

Bellevue highlighted that a portion of the sale proceeds from the Director Sell-Down will be used by Steve Parsons and Ray Shorrocks to exercise outstanding options that they currently hold in Bellevue Gold.

Specifically, Parsons will utilise sale proceeds from the Director Sell-Down to exercise approximately 15 million outstanding options, which will result in him holding approximately twice as many shares in the company as prior to the Director Sell-Down.

“The Director Sell-Down represents the first occasion that the Directors have sold any shares in the company,” Bellevue Gold said in its ASX announcement.

“Furthermore, the company notes that since the appointment of Steve Parsons as a Director on 31 March 2017, the Bellevue Gold share price has appreciated from 3.8 cents to 62.5 cents, representing an approximate 16 fold increase.”





Canyon Resources Working with Cameroon Government on New Train Line

THE BOURSE WHISPERER: Canyon Resources (ASX: CAY) reported that the Government of Cameroon has completed a rail study involving a link between the company’s Minim Martap bauxite project to the Kribi Deep Water Port.

Canyon Resources said an independent Feasibility Study for the construction of a rail line from Edea to Kribi Port, was completed for the Government of Cameroon by Studi International.

The Feasibility Study focused on a long-term solution for Cameroon’s rail infrastructure linking different parts of the country to the existing rail and ports.

Canyon has engaged with Studi International to gain an insight into the study and the technical aspects of the proposed rail upgrade and development process.

Canyon and Mota-Engil Africa will work together to apply the outcomes of this study to the requirements for Minim Martap.

The Cameroon government has called for tenders to manage the railway infrastructure and develop models for possible Public-Private Partnership financing and operation of the rail line.

Canyon Resources said the tender aims to finalise the financial model for operating the existing Camrail upgraded rail line as well as an extension to the Kribi Port and other potential rail infrastructure.

Canyon Resources managing director Phillip Gallagher said in the company’s announcement to the Australian Securities Exchange.

“It’s pleasing to see the Cameroon Government progressing its rail network to a level that will potentially provide the infrastructure required for Canyon to transport bauxite product from our globally significant project at Minim Martap to the Kribi Port.

“We will continue to work with the Cameroon government and Camrail to ensure the best possible outcome for the rail network, as it is an important piece in unlocking the potential of our Tier 1 bauxite resource at Minim Martap.”





St George Mining Raises $4M to Continue Drilling at Mt Alexander

THE BOURSE WHISPERER: St George Mining (ASX: SGQ) completed a placement of approximately 37.2 million fully paid ordinary shares at 11 cents per share to raise $4 million.

“We are very pleased with the strong investor backing which recognises the substantial exploration upside at the high‐grade Mt Alexander project at a time of heightened investor interest in the nickel sulphide market,” St George Mining executive chairman John Prineas said in the company’s announcement to the Australian Securities Exchange.

“We thank new and existing shareholders for their continued support.

“We are preparing a major drill program for Mt Alexander that will test nickel‐copper sulphide targets across the highly mineralised Cathedrals Belt including a large number of EM conductors.”

St George Mining said the funds from the placement will fund upcoming exploration at the company’s Mt Alexander project and other projects as well as working capital and general corporate expenses.




ioneer Upgrades Rhyolite Ridge Mineral Resource Estimate

THE BOURSE WHISPERER: ioneer Ltd (ASX: INR) announced an updated Mineral Resource estimate for the company’s 100 per cent-owned Rhyolite Ridge lithium-boron project in Nevada, USA.

Ioneer has taken the total lithium-boron Mineral Resource for the South Basin at Rhyolite Ridge to be now estimated (at a cut-off grade of 5,000ppm boron) to contain:

154 million tonnes at 1,650ppm lithium (equivalent to 0.9% lithium carbonate) and 14,100ppm boron (equivalent to 8% boric acid); and

1.3 million tonnes of lithium carbonate and 12.4 million tonnes of boric acid.

The company said the update represents an increase of 200,000 tonnes of lithium carbonate and 3.8 million tonnes boric acid compared to the previous lithium-boron Mineral Resource estimate.

The updated Mineral Resource includes a maiden Measured Resource of 41 million tonnes at 1,700ppm lithium and 14,400ppm boron.

This contains a higher-grade Measured Resource of 27.5 million tonnes at 1,900ppm lithium and 17,800ppm boron for the Upper Zone.

“This upgraded Mineral Resource is exactly what we were aiming to achieve with the 2018/2019 drill program at Rhyolite Ridge,” ioneer managing director Bernard Rowe said in the company’s announcement to the Australian Securities Exchange.

“The higher confidence Measured Resource relates to the planned starter pit and due to the significantly higher grades, we can expect to see a material increase in the projected early operating cash flows.

“The total Resource has continued to grow with step-out drilling to the south where both the lithium and boron grades are some of the highest we have seen in the deposit.

“The lithium-boron mineralisation remains open to the south where it continues to be shallow and we expect further increases to the Resource with additional drilling.

“With the recent focus by the US Government on ensuring the supply of critical minerals, ioneer is well placed to become the first major domestic supplier of lithium to the American electric vehicle industry.”

The company explained that a planned starter pit is being developed as part of the Rhyolite Ridge Definitive Feasibility Study (DFS).

This starter pit will mine the Measured Resource and is expected to provide stronger cash flows in the early years of the project compared to the Preliminary Feasibility Study (PFS).

ioneer said the improved cash flows would become evident upon completion of the updated mine plan and schedule currently being undertaken as part of the DFS.

Lithium-boron (searlesite) mineralisation is the focus of the DFS as it represents the highest value material.

The low-clay and high-searlesite content of the lithium-boron mineralisation allows for a low-cost, simple processing route due to being amenable to low-cost acid leaching.




AVZ Minerals Increases Manono Project Stake

THE BOURSE WHISPERER: AVZ Minerals (ASX: AVZ) has executed a Share Sale Purchase Agreement with Dathomir Mining Resources SARL that will result in an increase to the former’s equity in the Manono lithium and tin project in the Democratic Republic of Congo (DRC).

AVZ Minerals said it has been in discussions with Dathomir over the past few months, from which Dathomir has agreed to sell a five per cent equity share in Dathcom Mining SAS to AVZ for a total consideration of US$5.5 million.

Dathcom currently holds 100 per cent of the Manono lithium and tin project concession.

AVZ explained the terms of this purchase agreement represent a highly accretive transaction for AVZ shareholders with minimal upfront payment.

The first tranche payment of US$500,000 is to be paid within 14 days of execution and the balance of the consideration can be paid at any time within a period of 36 months from execution of the agreement.

At the completion of the transaction, AVZ’s equity interest in the project licence will increase to 65 per cent, representing an NPV value added, based on the recent 5 million tonnes per annum Scoping Study of some US$130 million to approximately US$1.68 billion for AVZ’s 65 per cent equity interest (based on ±35% accuracy and including US$78M in capital contingency).

The deal will need to pass an Extraordinary General Meeting of Dathcom to be convened in late July or early August to approve the sale of additional equity within Dathcom to AVZ.

“AVZ is pleased to be able to secure further equity interest in the Manono lithium and tin project, given its Tier 1 status,” AVZ Minerals managing director Nigel Ferguson said in the company’s announcement to the Australian Securities Exchange.

“We are still in discussion with our main partner, La Congolaise D’Exploitation Miniere (Cominiere) to secure additional equity from them on similar terms.

“Cominiere, as with all parastatal entities in the DRC, are currently under a ‘suspension of signature authority’ following the Presidential elections.

“It is hoped that this will soon be lifted and a positive outcome to purchase further equity in the project, as discussed to date with Cominiere, can soon be achieved for AVZ.

“The extra equity in the Manono lithium and tin project will add significantly to the bottom line and Net Present Values and it is critical for project financing as AVZ continues discussions with potential financiers and offtakers.”





FYI Resources Completes Capital Raising

THE BOURSE WHISPERER: FYI Resources (ASX: FYI) has received commitments to raise approximately $811,000 through the issue of approximately 16.22 million shares at five cents per share with one attaching unlisted option for every two shares issued.

FYI Resources said the placement had received support from Regal Funds Management for its full pro rata of 12.9 per cent, while Foster Stockbroking acted as lead manager to the issue.

The company declared the placement received strong support from local and international sophisticated and professional investors including existing major shareholders.

The funds raised will be used for continued development of FYI’s high purity alumina (HPA) strategy, including operation of the pilot plant to produce product for customer qualification (test work), on-going project development at the Cadoux project and completion of the bankable feasibility study (BFS) and general working capital.

FYI informed the market that its High Purity Alumina (HPA) project development is progressing along an active development path for the company’s HPA strategy.

FYI is currently undertaking bankable feasibility studies (BFS) and pilot plant test work of the Cadoux kaolin project feedstock, from which it is achieving excellent technical results from an R&D program which it believes should lead to positive project economics.

“The pilot plant, currently being commissioned, will provide essential product processing data that will be important in refining the BFS economic case,” FYI Resources said in its ASX announcement.

“Importantly, the pilot plant will provide simulated ‘production’ generated HPA in sufficient quantities so that interested parties can trial the alumina for product qualification specific to their individual requirements and applications.

“This feedback will allow FYI to tailor the end product (through further R&D) to suit each customer’s needs.”

FYI is positioning itself to be a substantial producer of 4N and 5N HPA to meet the rapidly developing high-tech product markets.

The foundation of the company’s HPA strategy is the superior quality aluminous clay (kaolin) deposit at the Cadoux project and positive response that the feedstock has to the company’s moderate temperature, atmospheric pressure HCl flowsheet.





Technology Metals Confirms High Recoveries from Gabanintha

THE BOURSE WHISPERER: Technology Metals Australia (ASX: TMT) received results of pilot plant scale roasting testwork of a bulk sample collected from within the North Pit region of the company’s Gabanintha vanadium project near Meekatharra in Wesertn Australia.

Technology Metals explained the bulk sample for the pilot plant scale testwork was collected from within the North Pit region of the Gabanintha project late last year.

A total of 14.2 tonnes of sample was collected from this program; consisting of a blend of transitional massive magnetite mineralisation, fresh massive magnetite mineralisation, transitional hanging wall banded mineralisation, fresh hanging wall banded mineralisation and fresh footwall banded mineralisation.

The pilot plant scale testwork using this bulk sample was designed to confirm optimal operating parameters and scalability of laboratory testwork results and provide data for vendor definition of design parameters and cost estimates for the ‘roasting’ section of the processing circuit.

Initial ‘sighter’ testwork was completed previous to this using a representative 300 kilogram sub-sample of the bulk sample that confirmed the very high purity of final vanadium pentoxide (V2O5) product that can be produced from the GVP, delivering a 99.36 per cent V2O5 product purity.

Samples of this material have been sent to potential end-users / offtake partners for independent verification.

The latest testwork was conducted by roasting kiln suppliers FLSmidth in Pennsylvania USA, confirming the very high vanadium solubility/recovery rates indicated from the previous laboratory and sighter scale testwork.

Rates ranged from 84.9 per cent to 90.7 per cent during continuous feed, confirming the 85 per cent solubility/recovery to be used in the Definitive Feasibility Study.

FLSmidth is now undertaking engineering design and cost estimates for the roasting section of the process circuit.

Technology Metals expects delivery of the DFS mid-2019, which will ultimately be determined by how long it takes to verify and incorporate this information in to the overall DFS model.

“The very important pilot scale testwork, a key component of the delivery of a high-quality Definitive Feasibility Study, has confirmed the very high recovery rates for the roasting section of the process circuit,” Technology Metals Australia managing director Ian Prentice said in the company’s announcement to the Australian Securities Exchange.

“Delivery of the kiln design and operating parameters from kiln experts FLSmidth is the next vital step to be completed.”