Pantoro Considers Norseman Processing Plant Options Review Outcomes

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THE BOURSE WHISPERER: Pantoro Limited (ASX: PNR) has completed a Processing Plant Options Review and Scoping Estimate at the company’s Norseman gold project in Western Australia.

The study was completed by Como Engineers and considered three options for the processing plant including:

Option A – Refurbishment of existing structures and equipment in the existing location. The existing plant configuration utilises primary crushing, and a high aspect SAG mill and ball mill in series;

Option B – Reconstruction of the processing facility with the same configuration at a new location using a combination of refurbished existing major equipment and new structures, piping, electrical and services in a new location; and

Option C – Construction of a completely new processing facility utilising primary and secondary crushing and a single 2.3MW ball mill.

The review concluded the existing leaching circuit to be extensively corroded and in addition to the large capital repair cost would have a high operating cost due to the historical air operated Pachuca tanks in place.

As such, all options included a new leaching circuit using a modern mechanically agitated CIL circuit.

The review found that Options A and B require similar expenditure, while the Option C capital requirement is approximately $10 million higher.

Option A was noted to be higher risk from both safety and financial perspectives.

Option B was therefore chosen for detailed design and cost estimation prior to construction.

“The outcome of this study provides Pantoro with a clear way forward for reconstruction of the Norseman processing facility,” Pantoro managing director Paul Cmrlec said in the company’s announcement to the Australian Securities Exchange.

“The large amount of existing infrastructure at the site provides a major reduction in capital costs for the project, and the review confirms our pre-acquisition cost assumptions.

“We look forward to commencing the definitive plant design and cost calculation in the new year. The project is advancing as expected as we progress towards re-commencement of production.”

 

Email: admin@pantoro.com.au

Web: www.pantoro.com.au

 

Image Resources Secures December Quarter Sales

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THE BOURSE WHISPERER: Image Resources (ASX: IMA) has secured sales agreements from off-take partners for the December quarter 2019.

Image Resources has organised the sale of a nominal total of 65,000 tonnes heavy mineral concentrate (HMC) for the December quarter 2019 with no reduction in zircon pricing.

The HMC will be produced from the company’s 100 per cent-owned, high-grade, zircon-rich Boonanarring mineral sands project located 80 kilometres north of Perth in the North Perth Basin of Western Australia.

The company recently finalised a regular monthly shipment of HMC of nominally 20,000 tonnes, which was purchased by off-taker partner Natfort and sailed at the end of October.

In addition, a sales agreement was secured from off-taker partner Hainan Wensheng for nominally 45,000 tonnes to be delivered over two shipments, one in the latter half of November and the second in December.

Image Resources declared that demand for its HMC remains strong, including from parties other than the current off-take partners.

While the benchmark price for premium grade zircon decreased 2.5 per cent to US$1,580 to 1,590 per tonne in November, Image’s sale price for standard grade zircon contained in the HMC remained unchanged for its scheduled November and December shipments.

Image’s realized price for titanium dioxide (TiO2) contained in the HMC increased approximately six per cent in August and this higher price has continued in the December quarter.

“We continue to receive robust demand for our zircon-rich HMC product,” Image Resources managing director and CEO Patrick Mutz said in the company’s announcement to the Australian Securities Exchange.

“The committed sales of 65,000 tonnes in the December quarter, at stable zircon pricing, keeps the company firmly on track to deliver on our updated CY2019 guidance.”

 

Email: info@imageres.com.au

Web: www.imageres.com.au

 

Virgo Resources to IPO With Namibia-Botswana Projects

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THE BOURSE WHISPERER: Former Gold Road Resources (ASX: GOR) chairman Ian Murray is about to launch a new company on the boards of the Australian Securities Exchange.

Murray is heading up Virgo Resources, a copper focused exploration and mineral project development company based in Perth, Western Australia.

The company is listing on the back of prospective copper and gold interests that include a 2012 JORC code-compliant copper and gold resource in Namibia, as well as prospective copper assets in Botswana.

Virgo has interests in three copper projects:

The company has a 70 per cent interest in the Hope copper-gold VMS project in Namibia where it has an option to increase its stake to 90 per cent.

The Hope copper-gold VMS project comprises EPL5796, EPL6605 and EPL7170 (application), which cover a total of over 1,200 square kilometres within the Matchless Copper Belt in Namibia.

These tenures are located in central Namibia and straddle the boundary between the Erongo and Khomas regions, about 200 kilometres from Windhoek, the capital of Namibia.

Hope is Virgo’s most advanced copper project and contains a large, high-grade JORC 2012 mineral resource of 10.2 million tonnes at 1.9 per cent copper and 0.3 grams per tonne gold.

The Resources estimate lies across the Hope, Gorob-Vendome and Anomaly prospects of containing some 193,000 tonnes of contained copper metal plus 103,000 ounces of gold and possible silver credits.

Virgo likes the prospects for growth of the current mineral resources and further discoveries as no modern, regional-scale exploration has been applied to the area.

Historic drilling was carried out; however, it was not assayed for gold.

Virgo claims newer drill holes and surface rock-chip samples indicate gold grades from 0.1 to 6.8g/t gold.

The project comes with an extensive exploration database that contains 203 diamond drill holes have been completed for 33,500m of drilling.

The Rhinelands copper project in Namibia, in which Virgo has a 90 per cent Interest, is an iron-oxide-copper-gold (IOCG) exploration play with abundant surface copper mineralisation that has not been properly tested at depth.

The Rhinelands project covers approximately 185sqkm to the northwest of Windhoek and includes records of historic exploration by Falconbridge in the 1960 and 70s that identified two copper prospects along the highly prospective Rehderstal Fault.

Over in Botswana, the company owns 100 per cent of the Kalahari Copper Belt project that is located
within an under-explored, emerging copper province that hosts major development projects including Cupric Canyon Capital’s Zone 5 copper-silver deposit and MOD Resource’s T3 copper-silver deposit that now belongs to Sandfire Resources following a $167 million takeover.

Virgo considers its most prospective tenure sits in this region on PL40/2018, which is situated along strike of large copper-silver mineralisation deposits held by other Kalahari Copper Belt explorers and developers.

 

Web: www.virgoresources.com.au

 

Renascor Resources Releases Siviour DFS Results

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THE BOURSE WHISPERER: Renascor Resources (ASX: RNU) delivered results of a Definitive Feasibility Study (DFS) for the company’s 100 per cent-owned Siviour graphite project near the coast of South Australia’s Eyre Peninsula.

Renascor Resources declared the DFS confirms Siviour’s potential as a low-cost, long-life graphite project that can achieve consistently attractive profit margins even in the current lower graphite price environment.

The study determined Siviour to be a world-class, low-OPEX project with a projected life of mine (LOM) operating cost of $508 or US$355 per tonne (A$471 or US$330 per tonne over first ten years), placing it amongst the lowest projected operating costs globally.

The project will be developed in stages to reduce up-front capital cost with the DFS based on a staged development, with average production of 80,000 tonnes per annum during first stage (years one to four), before expansion in year five to be funded through expected project cashflows.

Average projected production in years five to ten is 144,000 tonnes per annum with the DFS adjusted for current graphite market conditions with pricing from Benchmark Mineral Intelligence. This resulted in a decrease from previous basket price through 2025 of 22 per cent to $1,149 or US$804.

The results confirm compelling project economics, including:

Post-tax NPV10 of $388 million or US$271m;
Post-tax IRR of 33 per cent;
Start-up capital requirement of $114 million or US$79 million plus a mining pre-strip of $4 million or US$3 million; and
Average EBITDA of $83 million or US$58 million, EBITDA margin of 57 per cent.

The Study expects up to 60 per cent of the start-up capital requirement to qualify for in-principle support from Atradius, the Dutch export credit agency (ECA), subject to finalising the procurement strategy in the front-end engineering design (FEED) phase.

Renascor identified its next immediate steps are expected to include securing binding offtake agreements, final project permitting and commencing financial due diligence.

“The DFS confirms Siviour’s status as a low-cost, tier one graphite project that can achieve consistently attractive profit margins even in the current lower graphite price environment,” Renascor Resources managing director David Christensen said in the company’s announcement to the Australian Securities Exchange.

“We believe this cost advantage, coupled with our location in the low sovereign risk jurisdiction of South Australia, will enable Siviour to become a premier provider of graphite for the growing lithium-ion battery market, as this sector becomes the dominant end-user of natural flake graphite.

“With the DFS now complete, we look forward to advancing towards securing binding offtake agreements and working with our finance partners to secure funding for Siviour’s stage-one development.”

 

Email: info@renascor.com.au

Web: www.renascor.com.au

 

Southern Gold Receives Gubong Project ‘Permit to Develop’

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THE BOURSE WHISPERER: Southern Gold (ASX: SAU) has been received word from its Joint Venture partner, London-listed Bluebird Merchant Ventures, of confirmation that the Permit to Develop for the Gubong gold mine in South Korea.

Southern Gold explained that the mine had previously been announced as having been approved by the Ministry of Trade, Industry and Energy (MOTIE) and has now been endorsed by the Cheongyang Provincial Government.

Further explanation informed us that mine development in South Korea is formally approved through a process run by the provincial government.

Southern Gold said the latest nod marks the next important milestone in the project development approval process and is subject to several conditions largely in relation to physical development requirements regarding safety and environmental management.

Bluebird will now present this approval document to the local County government prior to initiating any site works, for which County government approval is required.

“From a practical point of view, the approval is now in hand and allows for the next stage of development works to begin, subject to presentation of these activities to local community members,” Southern Gold said in its ASX announcement.

Southern Gold and Bluebird each hold a 50 per cent interest in Singaporean company Gubong Project JV Co Ltd, which in turn holds 100 per cent of South Korean company Gubong Project Co Ltd, which holds the Gubong gold development project.

Joint Venture costs are shared 50/50 while Bluebird is responsible for day to day operations.

 

Email: info@southerngold.com.au

Web: www.southerngold.com.au

 

Red 5 Inks Option Agreement to Purchase Great Western Gold Deposit

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THE BOURSE WHISPERER: Red 5 Limited (ASX: RED), by way of the company’s wholly-owned subsidiary, Darlot Mining Company, has entered into an Option Agreement for the right to purchase a 100 per cent interest in Mining Lease M37/54, containing the Great Western gold deposit in Western Australia.

Red 5’s subsidiary struck the deal with Terrain Minerals (ASX: TMX) at a consideration for the issue of $2.2 million worth of ordinary fully paid shares in Red 5.

An option fee payable to Terrain Minerals of $300,000 is payable in immediately available funds within five business days.

Red 5 said the proposed acquisition provided a low-risk opportunity for the company to increase its Mineral Resource base within economic trucking distance of the Darlot gold processing plant.

“This represents a strong opportunity for Red 5,” Red 5 managing director Mark Williams said in the company’s announcement to the Australian Securities Exchange.

“Mining Lease M37/54 has an existing Mineral Resource, and is located in close proximity to our existing Darlot operations.

“This option agreement with Terrain Minerals provides the opportunity to complete additional drilling and confirm this potential with minimal upfront cash outlay.

“Darlot is one of the great gold mines of the Eastern Goldfields, operating continuously for over 30 years and producing approximately 2.9 million ounces of gold to date.

“It is a core asset for Red 5 and we have a multi-pronged plan underway to deliver continued growth in Resources and mine life.”

 

Email: info@red5limited.com

Web: www.red5limited.com

 

Metalicity Pegs New Tenements

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THE BOURSE WHISPERER: Metalicity (ASX: MCT) announced the acquisition of a further four prospecting and exploration tenements in the Kookynie Area in the Goldfields region of Western Australia.

On top of that, Metalicity received notification its applications on the Fraser Range North and two of the three Warburton tenements have now been granted.

“I am absolutely delighted we were able to peg and apply for this incredibly strategic and prospective tenure within the Kookynie Area,” Metalicity managing director and CEO Jason Livingstone said in the company’s announcement to the Australian Securities Exchange.

“We are making great strides towards consolidation of the Kookynie and Yundamindra gold projects through farm-ins and joint ventures, coupled with opportunistic pegging of ground to ensure that value is created for Metalicity shareholders.

“With part of the Warburton and the Fraser Range North projects being converted to live tenure, I look forward to working with the Traditional Owners to ensure access agreements are fair and equitable for all.

“Metalicity is growing a pipeline of projects headed by our Kookynie and Yundamindra farm-in agreements with incredibly prospective greenfields acquisitions.”

While Metalicity’s focus remains on the Kookynie and Yundamindra gold projects, the company highlighted that it is striving to create value through the development of a pipeline of projects within the gold and base metal space.

The Kookynie area especially has been subject to fractured ownership over a very long period and Metalicity considers, through well-structured farm-in/joint venture arrangements and being highly cognisant of competitor activities in the region, it is making great head way into re-consolidating the Kookynie area to ensure exploration is not hampered by arbitrary tenement boundaries.

Coupled with the grant of two exceptionally prospective nickel-copper and copper projects in proven, well-endowed provinces of the Fraser Range and Musgraves, this further illustrates Metalicity’s drive to develop a well credentialed pipeline of Projects to generate value for the company.

 

Web: www.metalicity.com.au

 

Gateway Mining to Divest Non-Core Edjudina Exploration Project

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THE BOURSE WHISPERER: Gateway Mining (ASX: GML) has entered into a tenement sale agreement for the sale of the company’s Edjudina project Exploration Licences in the Laverton Region of Western Australia.

Gateway Mining explained the divestment is part of the company’s strategy of extracting value from its portfolio of non-core exploration assets while maintaining a strong focus on gold exploration and development at its 100 per cent-owned Gidgee gold project.

Through a wholly-owned subsidiary company, Gateway has entered into a conditional tenement sale agreement with Syndicated Metals (ASX: SMD), under which SMD has agreed to acquire an 80 per cent interest in tenements E39/1765, E39/1882, E31/1150 and E31/1134.

The transaction is subject to SMD conducting due diligence in respect of the tenements to its reasonable satisfaction, a condition that must be satisfied or waived by 30 November 2019.

As consideration, SMD will provide Gateway $250,000 that could be paid in up to $200,000 worth of SMD shares.

The deal also involves the grant of a 1.5 per cent gross revenue royalty over the Tenements, payable after the first 200,000 ounces of gold or equivalent mineral product has been recovered.

Gateway’s subsidiary’s remaining 20 per cent interest in the tenements will be free-carried until such a time as a decision to mine is declared, and the parties have agreed to enter into a Joint Venture.

“Syndicated is a well-established ASX-listed explorer with an experienced corporate and technical team with whom we have an existing strong relationship,” Gateway Mining non-executive chairman Trent Franklin said in the company’s announcement to the Australian Securities Exchange.

“The transaction crystallises value, including cash, from the divestment of this non-core project, while preserving exposure for our shareholders to future upside from exploration success through a future production royalty, a free-carried 20 per cent interest and, potentially, shares in Syndicated Metals.”

 

Web: www.gatewaymining.com.au

 

Lithium Australia Subsidiary Confirms Offtake Deal with Korean Battery Recycler

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THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) announced its 24 per cent subsidiary Envirostream Australia Pty Ltd signed a memorandum of understanding (MoU) with South Korean company SungEel HiTech Co., Ltd for the sale of recycled battery metals.

Lithium Australia explained the Envirostream/SungEel MoU involves the exclusive supply of metals extracted from recycled lithium-ion batteries (LIBs) out of Australia.

That supply comprises mixed metal dust (MMD) that contains the energy metals cobalt, nickel and lithium that are recovered from spent LIBs at Envirostream’s battery recycling plant in Melbourne.

Currently, Envirostream is the only Australian company able to recycle all the energy metals from spent LIBs.

Envirostream will recommence shipments of MMD this month, following a recent expansion of the company’s recycling facilities.

Under the new deal, SungEel has agreed that Envirostream will have exclusivity of MMD supply from Australia.

Envirostream will now increase its MMD shipments to SungEel, for refining into cobalt, nickel and lithium chemicals for the production of new LIBs.

“Lithium Australia is working with Envirostream to roll out the latter’s Australia-wide collection network and expand its shredding and separation capacities as rapidly as possible,” Lithium Australia managing director Adrian Griffin said in the company’s announcement to the Australian Securities Exchange.

“The MoU with SungEel provides for immediate refining of the MMD that Envirostream produces.

“It is expected that Envirostream’s next MMD shipment to SungEel will take place this month.

“Expanding Envirostream’s processing capacity to keep spent LIBs from landfill and export the energy metals they contain is an Australian imperative.

“Closing the loop on the production of battery materials reduces the environmental footprint of the mining and processing aspects inherent in LIB production, improves sustainability and prevents the components of spent LIBs from leaking into groundwater and oceans as a consequence of their relegation to landfill or transport to other jurisdictions.

“Together, Lithium Australia, Envirostream and SungEel can provide an immediate and viable solution to the LIB disposal crisis in this country.”

SungEel recovers critical energy metals from LIB scrap, has become not only South Korea’s largest battery recyclers, but is also a global leader in the development of environmentally sustainable technologies.

Envirostream is the only company in Australia with the integrated capacity to collect, sort, shred and separate all the components of spent LIBs, which Lithium Australia considers makes it a perfect fit with its recycling expertise.

 

Email: info@lithium-au.com

Web: www.lithium-au.com

 

Independence Group Makes Take-Over Bid for Panoramic Resources

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THE BOURSE WHISPERER: Independence Group (ASX: IGO) rattled the boards of the ASX by announcing its intention to make an off-market takeover offer to acquire all of the ordinary shares of Panoramic Resources (ASX: PAN) it does not already own.

At the date of the announcement, Independence Group’s interest in Panoramic consisted approximately 24.9 million shares, representing approximately 3.8 per cent of the target company’s total issued capital.

IGO explained it opted to directly engage Panoramic shareholders following a number of unsuccessful attempts to engage with the Panoramic Board on a change of control transaction.

The company cited Panoramic’s recent operational performance and the lack of engagement from Panoramic’s Board to date as the impetus behind the offer.

The conditions to the offer include a number of conditions that IGO believes to be necessary to confirm the current status of operating performance at Savannah.

The offer is in the form of one IGO Share for every 13 Panoramic shares held, giving Panoramic a share price of 47.6 cents per Panoramic share, which values the company at around $312 million.

IGO indicated its preference is to conduct an expedited and thorough due diligence process, and to proceed with a recommendation from the Panoramic Board rather than seek the confirmations required under the offer conditions, however IGO said it is prepared to see the offer to completion should the offer conditions be satisfied.

“The Offer represents a rare instance of genuine and obvious mutual benefit for both Panoramic and IGO shareholders,” Independence Group managing director and CEO Peter Bradford said in the company’s announcement to the Australian Securities Exchange.

“Panoramic shareholders will be able to crystallise future value from Savannah at a very attractive price and retain exposure to its upside potential, while also gaining exposure to Nova and Tropicana and IGO’s extensive portfolio of belt-scale exploration projects prospective for nickel and copper.

“The company remains leveraged to the nickel market and we believe IGO has the financial, operational and technical capability to fully unlock value from Savannah and Panoramic’s exploration portfolio.

“Given our unique positioning as Australia’s largest independent producer of nickel, to unlock value at Savannah, we have decided to provide the offer for the consideration of all Panoramic shareholders.”

I response, Panoramic did nothing to surprise anybody by recommending its shareholders take no action in relation to the IGO takeover offer.

“The Board will evaluate the offer and Independence Group’s Bidder’s Statement and provide shareholders with a recommendation in due course,” Panoramic Resources said.

“Until then, shareholders should take no action.”

 

Email: investor.relations@igo.com.au

 

Web: www.igo.com.au