AVZ Minerals Scoping Study Strengthens Manono Economic Potential

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THE BOURSE WHISPERER: AVZ Minerals (ASX: AVZ) released extended results of a Scoping Study for five million tonnes per annum capacity on the company’s Manono lithium and tin project in the Democratic Republic of Congo (DRC).

AVZ Minerals explained the study evaluated the technical, transport, power and potential economic viability of an open pit mine development at the Manono project, where a JORC Mineral Resource of 400 million tonnes of 1.65 per cent lithium oxide (Li2O) has been defined.

All costings and projections in the financial model were prepared on all classifications of resources namely, Measured, Indicated and Inferred Resource tonnages.

Measured and Indicated portions combined, account for approximately 67.25 per cent of the existing Mineral Resource while the Inferred category resources accounts for the remaining 32.75 per cent.

The company said the lower categorised resource provides a lower level of confidence in the figures and reduces the reliability of the estimated returns.

The study considered various processing options to optimise throughput capacity and recoveries, with consideration given to managing early stage cash flow and upfront capital costs.

Mining and processing parameters were investigated at US$750 per tonne selling price (base price based on 5.8 per cent Li20 concentrate).

This scoping study plan is to develop Manono as a 5 million tonnes per annum (Case 2) high-grade open pit mine to supply material to a conventional crushing, high pressure grinding, dense media separation (DMS) and flotation plant.

The estimates presented by the Scoping Study were based on 100 per cent project interest although currently AVZ holds 60 per cent interest in the Manono project.

The 5Mtpa capital costs for the processing plant and associated project infrastructure are estimated at approximately US$380 to US$400M (C5 ±35% and includes US$78M contingency).

“Not only does the results of the five million tonnes per annum (Case 2) study confirm the excellent quality of the Manono project, it further underlines the expandability of the project,” AVZ Minerals managing director Nigel Ferguson said in the company’s announcement to the Australian Securities Exchange.

“Management will now turn its attention to selecting the optimal throughput level in conjunction with consultants working on the DFS.”

AVZ has commenced a Definitive Feasibility Study on the Manono lithium and tin project that is aimed at improving the accuracy of cost estimates and to provide additional definition on the project’s infrastructure requirements such as water, power and transport.

 

The Resources Roadhouse sat down with AVZ managing director Nigel Ferguson at the recent RIU Sydney Resources Roundup. WATCH THE INTERVIEW HERE

 

Email: admin@avzminerals.com.au

Website: www.avzminerals.com.au

 

Technology Metals Australia Strikes Chinese MoU

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THE BOURSE WHISPERER: Technology Metals Australia (ASX: TMT) has executed a non-binding Memorandum of Understanding (MoU) with CNMC Ningxia Orient Group Company Ltd. (CNMNC).

Technology Metals Australia explained the deal is in relation to establishing a binding vanadium pentoxide (V2O5) offtake agreement over vanadium production from the company’s Gabanintha vanadium project.

CNMNC is a rare metal manufacturer headquartered in Shizuishan, Ningxia Province in China.

CNMNC is a controlled subsidiary of China Nonferrous Metal Mining Co., Ltd and its vanadium alloy production business, CNMC Ningxia Orient Group Special Materials Co., Ltd., produces vanadium nitrogen alloys and ferrovanadium for use in the Chinese steel industry.

“We are very excited to have entered into this agreement with CNMNC, a China Nonferrous Metal Mining (Group) company, as a key step in establishing a strong and supportive customer base for the development of the high quality globally significant Gabanintha vanadium project.

“The very high purity of the Gabanintha vanadium pentoxide (V2O5) product provides a clear competitive advantage for the project.”

The MoU between TMT and CNMNC establishes a framework for ongoing discussions and negotiations aimed at delivering a definitive and binding offtake agreement.

Key terms that have been defined and agreed upon in the MoU are:

Initial minimum annual quantity of V2O5 to be purchased of 2,000 tonnes per annum on a take-or-pay basis;

CNMNC to purchase such quantity of product that is available, up to 2,000 tonnes per annum, during the ramp-up and commissioning phase of the project;

Pricing to be negotiated based on the Metal Bulletin V2O5 Pricing Index incorporating a floor and ceiling price structure;

Sales to be based on FOB at Port of Fremantle or similar;

Minimum term of three years with an option to renew for an additional three years; and

Consideration for CNMNC to refer TMT to its parent entity, CNMC, to discuss additional project support, including scope for financing and/or EPC arrangements.

TMT outlined the next steps to progress towards finalising the agreement include due diligence to be completed by both parties in conjunction with the progression of the Gabanintha Definitive Feasibility Study (DFS) and further refinement and agreement of the key off take terms.

 

Email: investors@tmtlimited.com.au

Website: www.tmtlimited.com.au

 

Matsa Resources Strikes 5 Year Ore Purchase Agreement with AngloGold Ashanti

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THE BOURSE WHISPERER: Matsa Resources (ASX: MAT) has executed an Ore Purchase Agreement with AngloGold Ashanti Australia covering the purchase of ore from the former’s Red October mine which is to be treated at the AGAA-owned Sunrise Dam gold mine, for up to five years.

Matsa Resources said the terms of the agreement remain confidential; however, it did say that costs and revenues of the ore purchase agreement are entirely consistent with the parameters applied in its previously published mining studies.

The 3.8 million tonne per annum mill at the Sunrise Dam gold mine is located approximately 60 kms from the Red October gold mine and provides Matsa with access to a nearby milling solution for its Stage 1 production ore and for a further 4.5 years thereafter.

Matsa has previously delivered ore from its Fortitude and Red Dog gold mines to Sunrise Dam and remains confident in the outcomes of the ore processed there.

The company will be responsible for mining and transporting the ore to Sunrise Dam with AGAA taking possession of ore once delivered.

Matsa Resources declared the agreement will allow it to progress mining at the Red October gold mine at a relatively low capital cost.

“The execution of the agreement with AngloGold Ashanti continues our strong relationship and builds on the MoU both parties entered into in mid-2018,” Matsa Resources executive chairman Paul Poli said in the company’s announcement to the Australian Securities Exchange.

“Previous mining campaigns at Fortitude and Red Dog have been successfully processed at Sunrise Dam with minimal fuss and we expect this to be no different.

“The fact that AngloGold are prepared to potentially accept all ore from Red October for up to five years is testament to this as Matsa looks to develop a longer term mine plan in the future.”

Matsa added that while production has commenced at Red October, as previously advised, there has been a methodical build up to bringing ore to surface as finalisation of a number of items is completed and to ensure that an ore purchase agreement was in place to ensure an orderly transition into full scale mining.

The company expects first delivery of ore to Sunrise Dam will occur by the end of June 2019.

 

Email: reception@matsa.com.au

Website: www.matsa.com.au

 

Metro Mining Declares Continued Supply to Chinese Bauxite Market

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THE BOURSE WHISPERER: Metro Mining (ASX: MMI) reassured the market bauxite from the company’s Bauxite Hills Mine was still being delivered to its Chinese customer.

Metro Mining cited reports in the Chinese Press regarding temporary closure of Alumina refinery capacity in Shanxi province following environmental audits by Chinese authorities, reporting that Xinfa Group’s Shanxi Jiaokou Refinery being one plant impacted by the closure.

Metro explained that Shanxi is an inland province and Xinfa source 100 per cent of their bauxite to feed this refinery from domestic sources within Shanxi.

The Xinfa aluminium business owns and operates six alumina refineries in China, of which Jiaokou is one and the other five refineries remain in operation with no restrictions.

Metro has in place a long-term offtake contract with Xinfa and has been supplying material from its Bauxite Hills Mine since the commencement of operations in April 2018.

Metro’s bauxite is supplied to Xinfa’s Refinery located in the coastal province of Shandong, which is completely unaffected by any of the current environmental issues.

Metro is continuing to supply bauxite to Xinfa as planned under this offtake agreement.

“Metro and Xinfa have formed a strong and mutually beneficial relationship over a number of years,” Metro Mining CEO Simon Finnis said in the company’s announcement to the Australian Securities Exchange.

“We meet regularly to discuss ways to build on this sound footing, and we look forward to this partnership continuing to flourish as Bauxite Hills continues to deliver on its commitment to Xinfa.”

 

Email: info@metromining.com.au

Website: www.metromining.com.au

 

BCI Minerals Completes Mardie PFS Optimisation Study

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THE BOURSE WHISPERER: BCI Minerals (ASX: BCI) completed a pre-feasibility study (PFS) Optimisation Study for the company’s Mardie salt & potash project, located on the Pilbara coast of Western Australia.

BCI Minerals said the PFS report supported the technical and financial viability of the Mardie project by delivering improved economics along with other changes that include an increase in salt production from 3.5 million tonnes per annum to 4 million tonnes per annum; Sulphate of Potash (SOP) production increasing from 75,000 tonnes per annum to 100,000 tonne per annum.

The company indicated that both salt and SOP would now be exported via a port at Mardie, eliminating all road haulage costs while the operating life of the project has increased from 30 years to 60 years.

Following completion of the PFS, BCI initiated a definitive feasibility study (DFS) and is currently progressing project designs, tenure, environmental approvals and early construction works for the project.

As part of initial DFS planning activities, BCI investigated a number of optimisation opportunities, most notably an increase of salt and SOP production along with the development of an export facility at the Mardie site.

The PFS Optimisation Study has incorporated these initiatives into the development case, proving that they will add value to, and further de-risk, the Mardie project.

“The recent approval by the Minister for Ports for an export facility at the Mardie project site and PFS flowsheet optimisation work resulting in higher production targets, support important amendments to our DFS scope,” BCI Minerals managing director Alwyn Vorster said in the company’s announcement to the Australian Securities Exchange.

“The PFS Optimisation Study has shown these amendments will deliver lower operating costs and improve the overall project economics.

“With salt, Mardie is expected to be cost competitive with existing large WA salt operations owned by major companies.

“Given SOP is a by-product of salt production and its location on the coast, Mardie should logically have a SOP on-ship cost of $50 to $100 per tonne lower than any other WA SOP projects that are located 800 to 1,000 kilometres from their preferred port.”

 

Email: info@bciminerals.com.au

Website: www.bciminerals.com.au

 

Venture Minerals to Update Mt Riley Study

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THE BOURSE WHISPERER: Venture Minerals (ASX: VMS) announced it has started work on updating a previously conducted mining study at the company’s Mt Lindsay iron ore mine in Tasmania.

Venture Minerals said the updated study was being carried out so that a decision to recommence mining at Mt Lindsay can be made at the earliest opportunity.

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

Venture has had the Riley mine on Care & Maintenance since August 2014 shortly after it suspended operations.

The iron ore price is currently around 30 per cent higher in AUD terms than it was upon closing and since early last December, the 62 per cent iron price has risen more than 40 per cent in USD terms.

The unfortunate recent events at Vales’ mines in Brazil suggest the current price levels could be sustained for at least the near term.

Venture has already completed extensive pre-production work at the Riley project putting in place all the necessary requirements to commence mining, making it a ‘quick to market’ opportunity for the company.

“Venture believes the efficiencies of restarting the Riley mine will benefit greatly by working again with the team that delivered the start of the Riley mining operations,” Venture Minerals managing director Andrew Radonjic said in the company’s announcement to the Australian Securities Exchange.

“The addition of the Rapallo Engineering Group will not only assist in this process but will afford the company the optionality to look at newer lower cost techniques as part of the exercise.”

 

The Resources Roadhouse caught up with Andrew Radonjic at the recent RIU Sydney Resources Roundup

– WATCH THE INTERVIEW HERE.

 

Email: info@ventureminerals.com.au

Website: www.ventureminerals.com.au

 

Calidus Resources has Warrawoona PFS on Track for July Finish

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THE BOURSE WHISPERER: Calidus Resources (ASX: CAI) declared the pre-feasibility study currently underway at the company’s Warrawoona gold project in the Pilbara region of Western Australia is progressing well and is on track for completion in July.

The company reported that all the information it has gathered so far has demonstrated the Warrawoona project, which has a total Mineral Resource (Indicated and Inferred) of 1.25 million contained ounces, would have a simple layout and processing route.

“The pre-feasibility study is now well advanced and it already shows that Warrawoona is shaping up as a very simple development scenario,” Calidus Resources managing director Dave Reeves said in the company’s announcement to the Australian Securities Exchange.

“The completed mine design on the outcropping Klondyke shear shows a single, two-kilometre-long continuous pit.

“The process flow sheet that has been locked in results in a very simple primary crush, SAG mill comminution circuit, followed by a gravity gold and conventional carbon-in-leach (CIL) recovery plant.

“This conventional layout will also have the benefit of a modest capital and operating cost to build and operate.

“The tailings are proposed to be thickened and disposed in a valley fill tails dam which will result in a much smaller tails dam embankment being required compared to conventional paddock dams, thereby reducing capital for this component of the study.

“Sustaining capital is also negated as no upstream lifts of walls are required as in the case of paddock dams.

“Exploration drilling for water has now been completed, with good sources of high-quality water identified close to the processing plant.

“The drilling rig has now moved back to regional exploration and I look forward to updating the market on this as results become available.”

The Resources Roadhouse spoke with Calidus Resources managing director Dave Reeves at the recent RIU 2019 Sydney Resources Roundup – WATCH THE INTERVIEW HERE

 

Email: info@calidus.com.au

Website: www.calidus.com.au

 

Breaker Resources Raises $6.3M to Advance Lake Roe Project

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THE BOURSE WHISPERER: Breaker Resources (ASX: BRB) has undertaken a $6.3 million placement involving approximately 21 million shares at an offer price of 30 cents per share.

Breaker Resources said the placement had received strong support from institutional and sophisticated investors based in Australia and Europe with Bell Potter Securities acting as lead manager.

The company indicated the funds raised via the placement will be used for advancing the company’s Lake Roe gold project near Kalgoorlie in Western Australia.

The funds have been earmarked for further drilling as part of Breaker’s strategy to extend the existing 1.1-million-ounce Bombora Resource within the Lake Roe project and advancing the open pit pre-feasibility study (PFS) on Bombora.

Extra drilling will be aimed at further discoveries at Lake Roe.

“A resource update is planned for July 2019 and the completion of a PFS is anticipated two to three months later,” Breaker Resources said in its ASX announcement.

 

Email: breaker@breakerresources.com.au

Website: www.breakerresources.com.au

 

Blackstone Minerals Acquires Interest in Vietnamese Nickel Project

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THE BOURSE WHISPERER: Blackstone Minerals (ASX: BSX) rocked the auditorium on Day One at the RIU Sydney Resources Roundup by announcing it was entering a binding term sheet for the exclusive option to acquire a 90 per cent interest in the Ta Khoa nickel project.

The Ta Khoa nickel project is located 160 kilometres west of Hanoi in the Son La Province of Vietnam and includes an existing modern nickel mine built to Australian Standards, which is currently under care and maintenance.

The Ban Phuc nickel mine perated as a mechanised underground nickel mine from 2013 to 2016 and its previous owners invested more than US$136 million in capital and generated US$213 million in revenue during a 3.5-year period of falling nickel prices.

The project was placed into care and maintenance in mid-2016 during some of the lowest nickel prices in the past 10 years.

Existing infrastructure associated with the project includes an internationally-designed 450,000 tonne per annum processing plant connected to local hydro grid power with a fully-permitted tailings facility and a modern 250- person camp.

Blackstone Minerals also has its eyes on the potential the project offers with the 150 square kilometre land package hosting more than 25 advanced stage massive sulphide vein (MSV) targets and many large disseminated sulphide (DSS) targets including the unmined Ban Phuc DSS.

Blackstone also signal its interest in investigating the potential to develop downstream processing infrastructure in Vietnam to produce a downstream nickel and cobalt product to supply Asia’s growing lithium ion battery industry.

“This is an exciting opportunity for Blackstone to acquire a 90 per cent interest in a project that has a history of profitable nickel production even during low nickel prices,” Blackstone Mineral managing director Scott Williamson said ni the company’s announcement to the Australian Securities Exchange.

“Blackstone will be the first company to explore Ta Khoa for both MSV and DSS nickel sulphide deposits all the while investigating downstream processing opportunities to meet the demands of the growing Asian lithium ion battery sector.”

 

Email: admin@blackstoneminerals.com.au

Website: www.blackstoneminerals.com.au

 

Magnetic Resources Raises $3.1M to Fund Ongoing Exploration

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THE BOURSE WHISPERER: Magnetic Resources (ASX: MAU) received applications for approximately $3.1 million via a placement of new shares at 28 cents per share.

Magnetic Resources had initially sought to raise $2.5 million, but accepted oversubscriptions due to strong demand shown from existing and new shareholders.

The company indicated the funds raised will be predominately used at the Hawks Nest 9 project for a shallow program of 96 RC holes totalling 3360 metres, which is expected to be finished by May 2019 and a number of follow up deeper RC program starting with a 20 hole 3000m program in late June 2019.

Metallurgical and scoping studies will commence in August 2019 with additional funds used for general working capital requirements.

“The company is continuing to undertake an aggressive drilling program as it continues to define additional mineralisation and ultimately a resource,” Magnetic Resources managing director George Sakalidis said in the company’s announcement to the Australian Securities Exchange.

“These funds will allow the company to fully explore the known mineralisation and test targets at depth.”

 

Website: www.magres.com.au