Vimy Resources Raises Funds to Continue Mulga Rock and Alligator River Push

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THE BOURSE WHISPERER: Vimy Resources (ASX: VMY) has raised gross proceeds of $3.9 million through a placement to institutional and sophisticated investors.

Vimy Resources said the funds would strengthen the company’s balance sheet, allowing it to undertake an exploration program at the Alligator River project in the Northern Territory, as well as to update the Definitive Feasibility Study at the Mulga Rock project in Western Australia.

The company’s 2019 field season at Alligator River confirmed a pipeline of advanced exploration targets, including Such Wow and Angularli West.

Vimy considers the Wallaby Ridge, Inspiration and Southern Flank exploration greenfields targets support further exploration, especially given the excellent geochemical results it achieved at Southern Flank that the company said had confirmed its geological models and exploration methods and highlight Jabiluka-style mineralisation targets.

The proceeds of the raising will be used to complete additional field work including geochemical analysis and drilling at these targets with the company also carrying out environmental baseline studies to streamline permitting.

At the Mulga Rock project, Vimy completed a high-level review of the January 2018 DFS in Q2 2019 that identified potential capital and operating cost savings that could lower capital cost and firm up stronger project economics.

Vimy believes the outcomes from the preliminary work justify it undertaking a more thorough review of the DFS.

The raised funds will also be used to advance offtake contract(s) and project finance.

A supporting Share Purchase Plan (SPP) is to be open to eligible Vimy Resources’ shareholders who will be invited to invest up to a maximum of $30,000 per shareholder to grab their share of approximately 60 million new shares at five cents per share to raise an additional $3 million.

“It’s great to see so many investors, both new and existing, who appreciate the high quality of our portfolio,” Vimy Resources managing director and CEO Mike Young said in the company’s announcement to the Australian Securities Exchange.

“The outlook for uranium continues to improve, it feels like the whole nuclear industry has made a significant turn for the better.

“Owing to the increased rhetoric around the ‘climate emergency’ and the demonstrable failure of industrial scale renewable energy to significantly reduce greenhouse gas emissions, there is now much more dialogue around nuclear energy’s role.

“Following on from the excellent announcement on 1 October 2019, the team can’t wait to commence the next exploration program at the Alligator River project.

“The geochemistry results confirmed Vimy’s geological models and exploration methods and highlighted the exciting Jabiluka-style mineralisation targets.”

 

Email: info@vimyresources.com.au

Web: www.vimyresources.com.au

 

Perseus Mining Shuffles Seats at Boardroom Table

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THE DRILL SERGEANT: Perseus Mining (ASX: PRU) made its intentions known that it will be proposing the appointment of David Ransom to the role of non-executive director at the company’s upcoming Annual General Meeting.

Perseus Mining explained that the appointment of Ransom would bring the total number of directors serving on the company’s Board to six, including five independent, non-executive directors.

On paper, Ransom appears well-qualified, holding a Bachelor of Science (First Class Honours), and a Doctor of Philosophy (PhD) (Structural Geology), he has directly managed exploration programs for a range of companies in Australia and Canada and served as an independent consultant to the global mining industry for many years.

More recently, Ransom has been resource analyst/portfolio manager with responsibility for the Materials and Energy portfolio at the microcap investment fund, Acorn Capital Limited.

He has stepped away from his executive position at Acorn to resume an active role in the industry.

Apart from his academic resume and global industry experience, Ransom has previously served as a director of a number of ASX and TSX companies.

“Dave has a huge amount of relevant work experience gained over many years in the international mining business and with first class professional qualifications to match, his skills set, and his knowledge perfectly complement those of the current members of our Board,” Perseus Mining chairman Sean Harvey said in the company’s announcement to the Australian Securities Exchange.

“Given his outstanding skills and experience in the fields of exploration and geology combined with his deep knowledge of the mining industry globally, Dave’s appointment will be very timely in terms of Perseus’s strategy of focusing on organic growth as the primary means of replacing and expanding its significant Reserve inventory.

“I know I speak for all directors in sincerely welcoming Dave to Perseus and we look forward to receiving his guidance and benefitting from his wealth of technical knowledge and experience as we continue our journey to transform Perseus into a highly credible, mid-tier gold producer, developer and explorer.”

Ransom’s appointment follows the announcement of the retirement of Colin Carson, a founding director of the company, who has decided to retire as an executive Director at the AGM.

Since forming the company in 2004, Carson has served as an executive director.

Carson’s wealth of corporate history and knowledge will not be totally lost to the company, however, as he has agreed to continue serving as a part time consultant for the foreseeable future.

“It is with reluctance and sadness that we have accepted Colin’s decision to retire as an executive director of Perseus after many years of first-class service to the company,” Harvey said.

“In his typically selfless manner, Colin has formed the view that with Perseus’s recent successful transition into a successful, multi-mine, multijurisdictional gold producer, it is time to make way for new blood to join the Perseus Board and to refresh the skill sets available to guide the company through its next exciting phase of growth.”

 

Email: info@perseusmining.com

Web: www.perseusmining.com

 

Gold Road Resources Completes Healthy Gruyere Quarter

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THE BOURSE WHISPERER: Gold Road Resources (ASX: GOR) released its activity report for the quarter ending 30 September 2019.

Unsurprisingly the report focused on the company’s Gold Fields Joint Venture Gruyere gold mine, which is a global Tier 1 gold mine with a long operating life and forecast high margins, located east of Laverton, in Western Australia.

“Gruyere delivered another quarter of milestones as project development was completed within budget, commissioning of all processing circuits was completed, and commercial levels of production were attained at the end of the quarter and slightly earlier than guidance,” Gold Road Resources said.

The report declared the Gruyere ramp‐up to be progressing well, hitting commercial production at the end of September 2019, slightly ahead of guidance, producing 29,107 ounces of gold during the quarter.

This allowed the 2019 annual guidance range to reaffirmed at the upper end of 75,000 to 100,000 ounces and for All-In-Sustaining-Costs (AISC) to also remain unchanged for December 2019 quarter of between $1,050 to $1,150 per ounce.

As at 30 September 2019 Gold Road had cash of $65.3 million and bullion of $5.8 million on hand, net debt of $9.3 million, with $80.4 million of its $150 million facility drawn.

Gold Road has hedged 125,300 ounces at an average price of $1,837 per ounce for delivery between 1 October 2019 and 30 September 2022.

Gold Road sold 12,461 ounces of its share of the gold from Gruyere at an average price of $2,052 per ounce.

Further work has continued on the exploration front diamond drilling near‐completion at Gruyere to enable conversion of a large portion of the current Inferred Resource to the Indicated Resource category in support of future optimisation of the mine plan and mine infrastructure.

Recent drilling results include:

36.2 metres at 2.44 grams per tonne gold from 282.8m;
44.9m at 1.8g/t gold from 270.1m; and
73.4m at 1.8g/t gold from 288.6m.

At Gold Road’s 100 per cent-owned Yaffler South prospect, bedrock RC drilling intersected coherent and consistent mineralisation, yielding results of:

11m at 5.94g/t gold from 74m;
12m at 3.4g/t gold from 116m; and
12m at 2.71g/t gold from 59m.

This drilling program continued during the quarter and assays are expected in the December 2019 quarter.

 

Email: perth@goldroad.com.au

Web: www.goldroad.com.au

 

Geopacific Resources Raising $45M to Underpin Woodlark Project Development

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THE BOURSE WHISPERER: Geopacific Resources (ASX: GPR) has completed a $40 million share placement and is subsequently offering a Share Purchase Plan (SPP) to raise up to a further $5 million to eligible shareholders.

Geopacific Resources indicated the capital raising will allow the commencement of development activities at the company’s Woodlark gold project in Papua New Guinea.

The $40 million placement was made to Sophisticated and Professional Investors for 1,600 million fully paid ordinary shares at 2.5 cents per share.

The company also intends to offer a SPP, also at 2.5 cents per share to raise up to a further $5 million.

Geopacific is already funded to commence the first phase of development at Woodlark and move towards a complete project financing solution.

The company explained the net proceeds from the Placement and SPP will primarily be used for front end engineering design (FEED), project civil construction, relocation of the Kulumadau village, Woodlark mine camp upgrades, project financing costs and other working capital for project development and expansion activities.

The first phase of development is expected to de-risk project execution in preparation for the construction of the process plant and completion of project financing.

“The capital raising has provided an excellent result, with shareholders demonstrating their commitment to moving Woodlark into production,” Geopacific Resources managing director Ron Heeks said in the company’s announcement to the Australian Securities Exchange.

“All shareholders, new and existing, clearly understand the tasks and rewards ahead and we are delighted and appreciative of their strong support to begin the process of producing gold.

“The raising will allow the company to commence early site works in preparation for process plant construction which will enable gold production to be reached in a shorter timeframe.”

 

Email: info@geopacific.com.au

Web: www.geopacific.com.au

 

VRX Silica Sets Off Muchea Double Banger

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THE BOURSE WHISPERER: VRX Silica (ASX: VRX) released a double banger by announcing details of a Bankable Feasibility Study (BFS) and maiden Probable Ore Reserve at the company’s Muchea silica sand project, located north of Perth in Western Australia.

VRX noted this is the third BFS for the company’s three advanced silica sand projects.

The Probable Ore Reserve for Muchea totals 18.7 million tonnes at 99.9 per cent silicon dioxide (SiO2) – as reported in accordance with the JORC Code 2012 – with 14.6 million tonnes at 99.9 per cent SiO2 contained within the area of the company’s Mining Lease application (M70/1390) for Muchea.

This Ore Reserve follows the company’s recent announcement of Probable Ore Reserves for Arrowsmith North and Central.

“This Reserve estimate is only a small portion of the silica sand Inferred Resource Estimate for the project but produces a very high-grade product which is in high demand in specialist Asian markets,” VRX Silica managing director Bruce Maluish said in the company’s announcement to the Australian Securities Exchange.

“We have already had significant interest in the Muchea product that will command higher prices than products from our Arrowsmith North and Central silica sand projects.

“Muchea is a world class high-grade silica sand project which can support a substantial export industry for WA providing benefits to the State and the Muchea-Gingin district.

“Muchea will produce alternative high-grade products to Arrowsmith and will add to our available catalogue of products from our silica sand projects.”

The BFS was based on only 25 years production from a potentially long-term plus-100-year mine life.

The maiden Probable Ore Reserve of 14.6 million tonnes contained within the area of the company’s Mining Lease application and will support a 9 to 10-year project.

This is estimated from the Indicated Mineral Resource only and constitutes approximately 39 per cent of the estimated total production target – in terms of processed tonnes of silica sand – over the 25-year mine life.

VRX Silica intends to mine solely from Probable Ore Reserves during the initial 9 to 10 years of the project.

VRX Silica has developed a mining and rehabilitation methodology specific to the environment at Muchea, which will enable a successful restoration of mined areas.

A key challenge for industrial minerals projects is meeting market specifications.

The silica sand market has specifications for parameters such as purity in addition to tight specifications for trace elements in the glass industry.

The company is confident that it can meet specifications for the ultra-clear glass market from Muchea.

 

Email: info@vrxsilica.com.au

Web: www.vrxsilica.com.au

 

Lithium Australia Increases Stake in Envirostream

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THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) has increased its interest in Envirostream Australia Pty Ltd from 18.9 to 23.9 per cent.

Lithium Australia said the $100,000 investment greatly enhances its exposure to the process of collecting and separating spent lithium-ion batteries (LIBs), a fundamental precursor to the recycling of battery chemicals.

LIT has already, at laboratory scale, successfully recovered metals from separated batteries, used the lithium so retrieved to regenerate cathode materials and, from those materials, manufactured coin-cell LIBs, testing of which vindicated the company’s aim of closing the loop on the energy-metal cycle.

Lithium Australia explained that EA is the only company in Australia with the integrated capacity to collect, sort, shred and separate all the components of LIBs, including the lithium.

The company highlighted EA’s infrastructure, saying it is essential to developing an environmentally responsible solution to the mounting problems spent LIBs represent.

EA’s collection and physical processing/separation of spent battery components makes for a perfect fit with LIT’s recycling R&D.

Lithium Australia anticipates its expanded equity in EA, and acceleration of its R&D program will contribute to the restructuring of the recycling business to best amalgamate the capabilities of both entities.

In recycling spent LIBs, we hope to meet the ethical, social and governance standards the community has grown to expect,” Lithium Australia managing director Adrian Griffin said in the company’s announcement to the Australian Securities Exchange.

“The world’s capacity to deal with climate change is also bolstered by the resulting improvements in resource sustainability and reductions in the environmental footprint of portable power.

“Our further investment in recycling in general, and EA in particular, therefore represents a tremendous opportunity for the company.”

 

Email: info@lithium-au.com

Web: www.lithium-au.com

 

Meteoric Resources Welcomes Dr Paul Kitto Aboard

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THE BOURSE WHISPERER: Meteoric Resources NL (ASX: MEI) made its presence felt at the 2019 Brisbane Resources Roundup by announcing the appointment of Dr Paul Kitto as non‐executive technical director.

Meteoric Resources recognised Dr Kitto’s more than thirty years’ experience working within the mining industry, having served on a number of ASX Boards and having held senior level management positions around the world, including Australasia and Africa.

Dr Kitto is currently technical director for ASX-listed Tietto Minerals (ASX: TIE) and was most recently (2015‐2019) exploration manager, Africa for Newcrest Mining and prior to that, was CEO and managing director of Ampella Mining from 2008 until 2014, when Ampella was acquired by LSE/TSX-listed Centamin PLC.

Throughout his career, Dr Kitto has led or been part of exploration teams that have discovered numerous multi‐million-ounce gold deposits in Africa, Australia and Papua New Guinea providing him with extensive experience associated with a wide range of deposit types, predominantly associated with gold and base metal deposits.

In addition, Dr Kitto has considerable experience dealing with global equity capital markets, project finance together with mergers and acquisitions.

“I am thrilled to welcome Paul to the board of Meteoric Resources,” Meteoric Resources managing director Dr Andrew Tunks said in the company’s announcement to the Australian Securities Exchange.

“Paul is someone in the industry I have known, admired and respected for many years and his knowledge of the gold space is second to none.

“Paul will play a hugely significant role moving forward with Meteoric as we progress our exploration programs on the ground in Brazil at both the Juruena and Novo Astro gold projects and no doubt the company and shareholders alike will benefit from his significant global experience in developing world class gold deposits.”

 

Web: www.meteoric.com.au

 

Independence Group Teams up with Apollo Consolidated at Louisa Nickel Sulphide Project

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THE BOURSE WHISPERER: Independence Group (ASX: IGO) has entered a farm-in and joint venture with Apollo Consolidated Limited (ASX: AOP).

Apollo Consolidated announced the deal in relation to the company’s early-stage Louisa project located near Fitzroy Crossing in the West Australian Kimberley Province.

Independence is a highly-regarded nickel-copper sulphide producer and explorer that is actively exploring for nickel-copper sulphide mineralisation in the region.

Under the term sof the agreement, a wholly-owned subsidiary of Independence will spend initial expenditure of a minimum of $350,000 on the project within 24 months.

Once the initial expenditure has been reached the subsidiary may elect to continue to spend an additional $3 million within four years to earn a 75 per cent interest in the project, otherwise the subsidiary can withdraw at its election at any time provided the project tenement remains in good standing.

Apollo considers Independence Group’s interest to be a ringing endorsement of its conceptual targets in the emerging nickel-copper sulphide province.

“The entrance of Independence into the project is an endorsement of the potential for magmatic mineralisation styles in the area and will allow this potential to be rapidly evaluated by an active and highly respected nickel-copper sulphide exploration team,” Apollo Consolidated said in its ASX announcement.

Apollo said the arrangement allows it to prioritise exploration efforts at its gold discoveries at the Lake Rebecca gold project near Kalgoorlie.

Should a discovery be made at Louisa under the farm-in, Apollo retains the ability to participate as a 25 per cent partner, an equity position it believes could deliver value to shareholders.

Independence intends to apply its in-house geophysical team and state-of-the-art geophysical tools to the evaluation of the prospective mafic and ultramafic intrusions identified on the tenements.

Remote sensing work is scheduled to commence in the December 2019 Quarter, followed by field programs during the 2020 dry season.

 

Email: info@apolloconsolidated.com.au

Web: www.apolloconsolidated.com.au

 

Ardiden Inks Canadian Lithium MoU

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THE BOURSE WHISPERER: Ardiden Limited (ASX: ADV) has signed a non-binding Memorandum of Understanding (MoU) with its Canadian neighbour, lithium developer, Rock Tech Lithium Inc (TSX-V: RCK).

Ardiden announced the companies have agreed to combine efforts to work towards developing a lithium project that combines hard rock Spodumene mineral resources at Ardiden’s Seymour Lake and at Rock Tech’s Georgia Lake lithium projects in northwest Ontario.

“The projects have multiple beneficial synergies with the deposits being located proximal to railway, power supply and close to the regional mining and shipping centre at Thunder Bay,” Ardiden said in its ASX announcement.

Ardiden had previously declared its intentions to secure a partner or alliance for value extraction from the company’s 100 per cent-owned Seymour Lake project and to take advantage of the strategic advantages of this, and its other lithium holdings in Ontario.

The agreement will see Ardiden and Rock Tech develop a project to potentially supply spodumene concentrate at 6 to 7 per cent lithium oxide (Li2O), initially from a combination of the Seymour Lake and Georgia Lake projects.

Presently, within north-western Ontario, there are four other lithium projects, each in various stages of development in addition to the Ardiden and Rock Tech’s assets.

The two companies believe Seymour Lake and Georgia Lake are in an advantageous position with quality resources making the combination a logical outcome.

As such, Ardiden and Rock Tech have agreed to work together to gain a ‘First Mover’ advantage in this strategic North American region.

In March 2019, Ardiden announced an upgraded JORC 2012-compliant Mineral Resource at Seymour Lake of 4.83 million tonnes at 1.25 per cent Li2O and 186ppm tantalum pentoxide (Ta2O5).

In June 2018, Rock Tech released an NI 43-101-compliant resource estimate that included 6.58 million tonnes Measured and Indicated resources.

Additionally, 6.72 million tonnes of Inferred resources were estimated within this area.

 

Email: info@ardiden.com.au

Web: www.ardiden.com.au

 

Sayona Mining Assembles Crack Team for Operation NAL

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THE BOURSE WHISPERER: Sayona Mining (ASX: SYA) is getting serious about its bid for the North American Lithium Inc (NAL) operation, located in Québec, Canada.

Sayona Mining has put together a team of companies and advisers it considers to have the necessary skills needed to bring the NAL operation back into business following the commencement of the formal asset sale process for the lithium mine.

The NAL operation has a lithium mine and concentrator located in Abitibi near the mining district of Val d’Or, Québec and came to Sayona’s attention last year after spodumene production was halted in February 2019 and the company obtained protection from creditors in May.

Subsequently, on 16 September, the Québec Superior Court ended creditor protection and invited bids for the company’s assets.

Sayona has mustered a wealth of operational experience together with the engineering, environmental and financial capacity to ensure a successful turnaround of NAL, potentially restoring around 120 jobs, injecting new investment and boosting the province’s lithium strategy.

The team supporting Sayona in the bidding process includes Altura Mining, which will offer operational expertise and advice through common directorships.

Altura has experience in the realm having developed a world‐class hard rock spodumene (lithium) mine through to production, with its Western Australian mine fully operational just two years after breaking ground.

Engineering consultancy BBA, which is currently undertaking a revised Definitive Feasibility Study for Sayona’s Authier lithium project, also in Canada, is also on board.

Others on the team sheet include Centre Technologiques de Résidus Industriels (CTRI) – a leading technological solution provider, engineering service provider GCM Consultants, global engineering consultancy Hatch, New York‐based independent boutique investment bank Jett Capital Advisors, project cost control and management specialists Legico‐CHP, and international professional services firm PricewaterhouseCoopers.

Sayona believes this team would give NAL its best prospects for a successful turnaround, with the added advantage of combining the synergies from the Authier project.

“We’re hitting the ground running with a team supporting the bid that has a proven track record of delivering results, with expertise in producing spodumene in similar mining facilities, taking into consideration the complexity of such production,” Sayona Mining managing director Brett Lynch said in the company’s announcement to the Australian Securities Exchange.

“Importantly too, there is the unique advantage of combining lithium produced from our emerging Authier project with the lithium at the NAL site to achieve the required quality for the manufacturing of lithium batteries, as sought by the Québec Government.

“Overall, Sayona’s team offers the best combination of experienced global mining professionals that together with the necessary engineering expertise and financial backing will ensure industry best practice is achieved, delivering returns for investors, economic benefits for Québec and positive outcomes for all stakeholders.”

 

Email: info@sayonamining.com.au

Web: www.sayonamining.com.au