Venture Minerals Upgrades Riley DSO Resources to Meet JORC 2012 Specs

THE BOURSE WHISPERER: Venture Minerals (ASX: VMS) has upgraded the Resources at the company’s Riley iron ore project in Tasmania.

Venture Minerals announced the upgrade as part of the ongoing iron ore mining study underway at the Riley project that has updated the JORC Code 2004 maiden resource statement of 2 million tonnes at 57 per cent iron to meet the guidelines of the JORC Code 2012.

The company indicated the upgrade coincides with release of the tender documents to be released this coming week to contractors for the mining, processing and haulage components of the Riley DSO project, from which the resultant prices will be used in the updating of the mining study.

Venture said that as part of the mining study update, the Riley ore reserves will also be upgraded to JORC Code 2012 so that a decision to recommence mining can be made at the earliest opportunity by the Board.

Following a favourable study outcome and a decision to mine, Venture’s goal is to commence iron ore production in Q4 2019.

“The resource upgrade and the imminent release of the tender documents for the three main contracts of the Riley Mine are significant steps towards completing the updated mining study,” Venture Minerals managing director Andrew Radonjic said in the company’s announcement to the Australian Securities Exchange.

The Roadhouse caught up with Andrew Radonjic at the 2019 Gold Coast Investment Showcase






Kin Mining Completes $2.1M Placement

THE BOURSE WHISPERER: Kin Mining (ASX: KIN) completed a share placement of 42 million shares at five cents per share existing sophisticated shareholders, raising $2.1 million.

Kin Mining said the funding will enable it to complete the Pre-Feasibility Study for the company’s Cardinia gold project and provide additional working capital for the next phase of work on the project assessment after consideration of the PFS outcomes by the Board.

The PFS is due for completion shortly.

“We continue to be encouraged by the support of our major shareholders,” Kin Mining managing director Andrew Munckton said in the company’s announcement to the Australian Securities Exchange.

“The additional funding puts Kin in a stronger financial position to finalise the Pre-Feasibility Study for the Cardinia gold project and commence the next phase of project assessment and development work.”





BCI Minerals Tips Higher Iron Ore Earnings

THE BOURSE WHISPERER: BCI Minerals (ASX: BCI) is anticipating a healthy windfall from the recent rise in global iron ore prices.

BCI Minerals said it expects increased EBITDA from Iron Valley for the June 2019 quarter compared to the levels reported for the first three quarters of the current financial year (FY19).

Iron Valley is a mine in the Central Pilbara region that is operated by Mineral Resources (ASX: MIN) and has Ore Reserves of 95 million tonnes at 58.4 per cent iron (as at 30 June 2018).

BCI receives a quarterly royalty from MIN and the company’s EBITDA from Iron Valley has ranged between $5.6 million (FY18) and $18.3 million (FY17) since operations commenced in 2014.

BCI previously reported its EBITDA from Iron Valley for the first nine months of FY19 was $6 million from 5.5 million tonnes shipped and that it expects Iron Valley EBITDA for FY19 of between $6 million and $12 million.

However, iron ore prices have enjoyed a large spike during the last six months due to global supply issues and ongoing strong steel demand and have been particularly strong in the June 2019 quarter to date, with the CFR 62 per cent Fe iron ore price averaging US$96 per dry metric tonne (dmt) in April and May and the spot price currently at US$105/dmt.

This compares to an average of US$74/dmt for the first nine months of FY19.

Discounts for 58 per cent Fe iron ore products have also reduced materially and are at the lowest level in more than three years, leading to a reduction in discounts for Iron Valley product.

Although most of the recent Iron Valley shipments have been iron ore fines, which has a lower price than lump, overall pricing for Iron Valley product has been strong, particularly in April and May 2019.

BCI now expects FY19 EBITDA from Iron Valley to be between $11 million and $12 million, which is at the upper limit of the company’s previous estimate.

“If the iron ore market and MIN production levels remain at current levels, FY20 is expected to be another positive year for BCI’s Iron Valley royalty,” BCI Minerals said in its ASX announcement.

“Potential further upside exists if the proportion of lump shipped by MIN returns to long range average levels.”

BCI Minerals currently boasts a cash position of $34.8 million (as at 31 May 2019).

Combined with stronger royalty earnings from Iron Valley, the company believes it is in good stead to continue advancing its Tier 1 development project, the Mardie salt & potash project, located on the West Pilbara coast in the centre of Australia’s key salt production region.

The Mardie project is expected to produce high-purity salt (typically 99.7 per cent NaCl) and sulphate of potash (SOP) via solar evaporation of seawater.

“Using an inexhaustible resource and a production process driven mainly by natural solar and wind energy, Mardie is a sustainable opportunity to supply the salt and potash growth markets in Asia over many decades,” BCI Minerals explained.

“The long-term demand outlook for both salt and SOP is positive.

“High purity salt produced at Mardie will be used in chemical and industrial processes that create thousands of everyday products.

“Demand in this market segment, particularly in Asia, is expected to grow strongly over the next decade and result in a supply deficit.”





De Grey Mining Achieves High Gold Recoveries with Conventional CIL Processing at Toweranna

THE BOURSE WHISPERER: De Grey Mining (ASX: DEG) announced positive results from metallurgical test work recently undertaken on samples from within the proposed Toweranna open pit resource area at the company’s Pilbara gold project in Western Australia.

De Grey Mining carried out test work to assess conventional carbon-in-leach (CIL) gold recovery from both oxidised and fresh rock.

The company indicated it had obtained high gold recoveries from all of the oxide zone samples, ranging from 92 per cent while the fresh rock samples returned results with 94.7 per cent gold recovery.

De Grey said the results indicate Toweranna mineralisation is free milling and fully amenable to convention CIL processing.

Separate samples were also tested for gravity recovery, with oxide and fresh rock samples returning recoveries of 20.8 per cent and 54.3 per cent respectively.

The company considers the high levels of gravity gold indicate that it may be possible to lift total gold recovery by installing a gravity concentrator ahead of the CIL circuit and as such will evaluate the merits of employing gravity extraction in subsequent test work.

“Toweranna continues to grow in stature with strong resource growth potential and high recovery with conventional CIL processing characteristics,” De Grey Mining technical director Andy Beckwith said in the company’s announcement to the Australian Securities Exchange.

“On-going drilling results continue to define multiple stacked lodes to at least 200 metres depth.

“Once drill assays are finalised, we will update the zero to 200 metres open pit resource and run open pit optimisations.

“We are increasingly seeing free gold in the veins in core and the high gold recovery together with the simple free milling nature is encouraging.

“Toweranna is poised as a game changer as it has the potential to rapidly increase resources and improve the PFS economics.”





AVZ Minerals Executes Strategic Relationship Agreement with Huayou Cobalt Group

THE BOURSE WHISPERER: AVZ Minerals (ASX: AVZ) informed the market that it has entered a strategic relationship with Shanghai-listed company, Zhejiang Huayou Cobalt Co. Ltd.

The deal has been struck via the latter’s group company, Huayou International Mining (Hong Kong) Limited.

AVZ Minerals explained the agreement would enable it to draw on Huayou Cobalt Group’s experience in the Democratic Republic of Congo (DRC) and mainland China as it completes a Definitive Feasibility Study for the company’s Manono lithium and tin project in the DRC.

AVZ expects Huayou will also be able to provide advice and assistance with respect to project financing, offtake financing, strategic services, EPCM and cost-effective transport of product to final recipients.

Huayou Cobalt Group is one of the world’s largest manufacturers of cobalt chemicals for use in batteries and has extensive in-country experience with several established cobalt mining and processing operations within the DRC.

Huayou is also a 9.47 per cent shareholder in AVZ.

AVZ outlined the strategic relationship that will emanate from the deal, saying it has been designed to promote discussions to advance Manono to production including, but not limited to, the Definitive Feasibility Study; project financing; off-take and EPCM; – Consideration of any other ways in which a relationship between the two parties may be beneficial for all stakeholders.

The Strategic Relationship agreement is non-binding and non-exclusive.

“AVZ values its existing relationship with Huayou very highly and this new agreement will see the two companies come even closer to advance the Manono project,” AVZ Minerals managing director Nigel Ferguson said in the company’s announcement to the Australian Securities Exchange.

“We believe that bringing Huayou’s tremendous mining expertise to bear on the DFS, financing and offtake negotiation will accelerate the commercialisation of the largest lithium ore body on the ASX and yield tremendous value for AVZ shareholders.”





ioneer Produces Battery-Grade Lithium Hydroxide

THE BOURSE WHISPERER: ioneer Ltd (ASX: INR) has had battery-grade lithium hydroxide produced using standard commercial processes on ore from the company’s Rhyolite Ridge lithium-boron project in Nevada, USA.

ioneer said the testwork had been carried out by Veolia Water Technologies Inc. as part of the Rhyolite Ridge DFS.

Veolia is the world’s largest supplier of evaporator and crystalliser systems and is globally regarded for its processing expertise.

Veolia’s benchscale testwork simulated major unit operations within the DFS process flowsheet and produced: boric acid and lithium carbonate; and high-purity (battery grade) lithium hydroxide.

“Veolia has a strong track record in designing and supplying production processes for the lithium industry,” ioneer managing director Bernard Rowe dais in the company’s announcement to the Australian Securities Exchange.

“By simulating major unit operations of the Rhyolite Ridge process flowsheet, Veolia has successfully validated the commercial process and confirmed key flowsheet parameters being finalised in the Rhyolite Ridge DFS.

“This gives us confidence that our commercial process is both straightforward and scalable.

“Using the technical-grade lithium carbonate produced from Rhyolite Ridge DFS flowsheet, Veolia has successfully completed bench-scale testing to support the commercial application for crystallising battery-grade lithium hydroxide.

“The testwork confirms that Rhyolite Ridge will be able to produce a range of products at the mine site including boric acid, lithium carbonate and lithium hydroxide.

“ioneer is well placed to meet the expected strong North American demand for lithium as the United States looks to develop a domestic battery supply chain.”




Pioneer Resources and Novo Resources Welcome Sumitomo to Kangan Gold JV

THE BOURSE WHISPERER: Pioneer Resources (ASX: PIO) informed the market of TSX-listed Novo Resources Corp.’s intention to enter into a US$30 million farm-in and Joint Venture agreement with Sumitomo Corporation of Tokyo, Japan, and its wholly-owned Australian subsidiary.

The aim of the JV is to advance Novo’s Egina project located approximately 80 kilometres south-southwest of Port Hedland in Western Australia.

The Egina project includes Pioneer Resource’s Kangan gold project, where Novo is currently earning an interest under a binding memorandum of agreement that has now been replaced with a new agreement on essentially the same terms that allows Sumitomo to become a party to it.

Pioneer retains a 30 per cent free-carried interest in the Kangan project up to a decision to mine, after which it becomes a contributing JV partner.

Pioneer explained that Sumitomo, via an Australian subsidiary, has agreed to join Novo in spending $460,000 within the next 18 months to earn a joint 70 per cent interest in the Kangan gold project.

Upon Novo and Sumitomo earning their combined 70 per cent interest, Pioneer is free-carried up to a decision to mine and thereafter contributes in proportion to its JV interest.

The Kangan gold project, currently held 100 per cent by Pioneer, forms a key part of Novo’s Pilbara exploration portfolio and sits within that company’s Egina project, which lies in the heart of the Pilbara conglomerate gold province.

“The addition of Sumitomo to the Kangan farmin/JV adds significant financial and technical power to support Novo’s efforts at the Kangan JV project, and we look forward to receiving results as exploration programs at Egina and Kangan advance,” Pioneer Resources managing director David Crook said in the company’s announcement to the Australian Securities Exchange.





Cassini Resources Completes Yarawindah Brook Acquisition

THE BOURSE WHISPERER: Cassini Resources (ASX: CZI) has completed acquisition of an 80 per cent interest in the Yarawindah Brook nickel-copper-cobalt project, located near the town of New Norcia in Western Australia.

Cassini Resources completed the deal by acquiring 80 per cent of the issued share capital of Souwest Metals Pty Ltd, a private company associated with Kalgoorlie prospector and identity Scott Wilson.

Payment for the acquisition consist the payment of $300,000 and the grant of approximately 6.1 million options, each with a three-year expiry date and exercisable at 12.35 cents.

Subsequent to the deal, Cassini and the existing Souwest shareholders have executed a Joint Venture agreement, the terms of which require Cassini to sole fund all expenditure up until a Decision to Mine is made.

After the Sole Funding Period, Cassini and Souwest are to contribute proportionally to the JV, or alternatively, Souwest may elect to convert its then Shareholder Interest into a 2 per cent Net Smelter Royalty.

The Yarawindah Brook project is located 130 kilometres northeast of Perth and has undergone limited nickel, copper and cobalt exploration, despite its favourable regional setting, prospective geology and near-surface occurrences of nickel and copper mineralisation.

Historic exploration on E70/4883 has focussed primarily on a small platinum and palladium (PGE’s) resource, which Cassini considers as a ‘path-finder’ anomaly for potential massive nickel-copper-cobalt sulphides.

The company completed an airborne electromagnetic survey (AEM) over the project in early 2018 identifying numerous conductors it considers worthy of further investigation.

A surface fixed loop electromagnetic (FLEM) survey has also been completed over several of the higher priority AEM anomalies in order to confirm and better constrain the conductors prior to drilling.

In a nod to the prospectivity of the region, Cassini has added additional tenements E70/5116 and E70/5166 to the project, taking its total land position to 146 square kilometres.

The company is currently progressing access agreements with local landholders and environmental approvals in preparation for drill testing.





Peel Mining Raises $7M to Advance Cobar Projects

THE BOURSE WHISPERER: Peel Mining (ASX: PEX) has received firm commitments to raise $7 million to continue advancing the company’s 100 per cent-owned Wagga Tank-Southern Nights deposit and 50 per cent-owned Mallee Bull deposit towards development.

Both projects are in the Cobar Basin of New South Wales.

Peel Mining said the funds raised under the Placement will enable it to undertake mining scoping studies at the Wagga Tank-Southern Nights deposit and to continue pre-development activities at the Mallee Bull deposit.

The funds will also be put towards continued exploration for new mineralisation at Wagga Tank-Southern Nights and to continue CSP programs of work with Joint Venture Partner JOGMEC.

The company signalled it would also be able to carry out advanced exploration at some of its exciting regional targets.

The Placement comprised the issue of approximately 22.6 million fully paid ordinary shares at 31 cents each to raise $7 million.

“The company is about to embark on the most exciting phase in its history, as we deliver the maiden resource at the high-grade Wagga Tank-Southern Nights deposit, and finalise plans to bring the Mallee Bull deposit into development,” Peel Mining managing director Rob Tyson said in the company’s announcement to the Australian Securities Exchange.

“We will commence mining scoping studies at Wagga Tank-Southern Nights as well as continue to drill test for new mineralisation associated with this major mineral system.

“This successful raising places the company in a strong financial position to continue advancing these high-grade Cobar assets towards development.”





Corazon Mining Identifies New Near-Mine Targets at Lynn Lake

THE BOURSE WHISPERER: Corazon Mining (ASX: CZN) provided an update on recent activities at the company’s Lynn Lake nickel-copper-cobalt sulphide project in Canada.

Corazon Mining has utilised a new geophysical processing technique to deliver major benefits at Lynn Lake, resulting in modelling of magnetic data using newly developed methods, such as Magnetic Vector Inversion (MVI), which the company says has radically opened the prospectivity of the Lynn Lake Mining Centre.

The company said the techniques have proved more effective and accurate than the previously utilised conventional Magnetic Susceptibility Inversion method.

Corazon explained that the MVI process can identify known (previously mined) orebodies and resource areas down to at least 600 to 700 metres below surface – double that of conventional techniques.

The MVI processing of existing detailed ground magnetic data has also identified new areas of interest within Lynn Lake’s prolific historic mining centre.

“Our aim is to utilise this new modelling technique on a number of fronts at Lynn Lake,” Corazon Mining managing director Brett Smith said in the company’s announcement to the Australian Securities Exchange.

“The potential for new discoveries is obvious, however, there are also numerous historically drill defined targets in the mining area that have yet to be properly tested.

“Our focus will be on these near-mine targets with a view towards optimising the potential of the mine area ahead of more detailed mine-planning and feasibility drill-outs for the project.”

Corazon began using the MVI modelling following a review of results from the last phase of drilling it completed at the Fraser Lake Complex (FLC) at Lynn Lake that targeted compelling anomalies generated by conventional Magnetic Susceptibility Inversion modelling processes.

“Put simply the conventional inversion modelling methods didn’t deliver the results anticipated at the Fraser Lake Complex,” Smith added.

“We’re looking within a large, complex, multi-phase magmatic sulphide system with variable magnetic characteristics.

“Too complex for the conventional methods to accommodate.

“With MVI, the level of information and detail is substantial and allows us to interrogate the anomalies better.

“Targets that have previously been ignored because of their overall magnetic characteristics are now being reassessed more favourably.”

The MVI activity continues a run of good news from Lynn Lake, from where the company recently announced exceptional metallurgical results from testwork on the project’s mineralisation.

Despite Lynn Lake having a long mining history, modern reagents and processing techniques have enabled separate high-value nickel and copper concentrates to be produced for the very first time.

The initial work highlighted:
Nickel concentrate with a grade of 26 per cent nickel with recoveries of 71 per cent; and
Copper concentrate with a grade of 27 per cent copper with recoveries of 77 per cent.

These results were not optimised, and Corazon believes further refinement of the testwork could deliver even greater improvements, particularly in the recoveries.

A new round of testwork is currently in progress incorporating the same float circuit used in the previous testing, however, utilising methodologies more representative of a commercial operation.

This work is expected to optimise the methodology and deliver similar high-grade concentrates, but with increased recoveries.