Panoramic Resources Signs New Savannah Sales Agreement

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THE BOURSE WHISPERER: Panoramic Resources (ASX: PAN) reported a new four-year Concentrate Sales Agreement over concentrate that may be produced from the company’s Savannah nickel-copper-cobalt project in the East Kimberley of Western Australia.

Panoramic Resources announced that Sino Nickel Pty Ltd, Jinchuan Group Co., Ltd and Savannah Nickel Mines Pty Ltd (a wholly owned subsidiary of Panoramic) have executed a new four-year Concentrate Sales Agreement.

The agreement covers 100 per cent of the concentrate that may be produced from the Savannah nickel-copper-cobalt project.

This new Agreement replaces the Extended Concentrate Sales Agreement struck in 2010, which was due to expire on 31 March 2020.

Panoramic said the terms of the new Agreement will be applicable from the first shipment of concentrate from the recommissioned Savannah project and incorporate improved payabilities for certain contained metals compared to the 2010 Extended Concentrate Sales Agreement.

Panoramic declared the terms of the Agreement are highly competitive in the global market for Savannah’s bulk nickel-copper-cobalt concentrate, based on the bids for the concentrate received from several parties and the knowledge that the market for nickel concentrates has tightened in the past 12 months.

The general terms and conditions of the new Agreement are as follows:

Product – sulphide concentrate with a typical specification of 8 per cent nickel, 4.5 per cent copper, 0.6 per cent cobalt, 46 per cent iron, less than 1 per cent manganese oxide;

Quantity (in-bulk) – 100 per cent of production from the Savannah Project;

Load Port – Wyndham, Western Australia;

Payable metals – nickel, copper and cobalt;

Price basis – agreed per centage of LME cash price for nickel and copper and agreed per centage of Metal Bulletin Co price; and

Life of new contract – four years commencing from the date of the first shipment or 31 March 2019, whichever occurs first.

“The new Agreement, which will cover concentrate produced from the Savannah and Savannah North orebodies, is an important condition precedent to restarting the Savannah project,” Panoramic Resources said in its ASX announcement.

“Now that the new offtake has been concluded, the finalisation of the project debt financing is the last remaining condition precedent to the Board making the decision to restart the project.

“Negotiations with potential financiers on the debt funding are progressing well and the company should be a position to make an announcement on project debt funding shortly.”

 

 

Intermin Resources Finalises Goongarrie Lady Feasibility Study

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THE BOURSE WHISPERER: Intermin Resources (ASX: IRC) announced Feasibility Study results from the company’s 100 per cent-owned Goongarrie Lady gold project, located 85km north of Kalgoorlie-Boulder in Western Australia.

Intermin Resources released details of the study results, including an updated JORC 2012 Mineral Resource Estimate for the project now totalling 0.31 million tonnes at 2.4 grams per tonne gold Au for 24,000 ounces (1.0g/t gold lower grade cut-off).

Over 87 per cent of the Mineral Resource Estimate has been promoted to the Measured and Indicated categories.

A maiden Ore Resrve has been calculated of 0.135 million tonnes at 2.94g/t gold for 12,700 ounces.

Metallurgical test work completed on representative samples from all ore zones included estimated recoveries of 94 per cent.

Statutory approvals are well advanced and the study assumes contract mining and haulage and ore processing at one of three nearby third party facilities.

Intermin Resources said that Feasibility Study findings indicate a technically strong and financially viable project with the following:

Open pit mine design producing 135,000 tonnes at a fully diluted grade of 2.94g/t gold for 12,700 ounces over a seven month mine life;

Third party milling at 94 per cent metallurgical recovery producing 11,938 ounces;

Low up-front capital costs of $0.73 million;

C1 Costs of $1,131 per ounce and All In Sustaining Costs of $1,164 per ounce;

The project is expected to generate $5.7 million in free cash flow in seven months at a $1,700 per ounce gold price.

“The Goongarrie Lady Feasibility Study has delivered robust economic results with strong projected cash margins and reduced geological risk,” Intermin Resources managing director Jon Price said in the company’s announcement to the Australian Securities Exchange.

“As with the successful Teal gold mine, the company has taken a conservative approach to both Resource estimation and development studies with the infill drilling increasing geological confidence and mine optimisation studies adopting conservative cut off grades to ensure acceptable cash margins.

“The company now looks forward to completing final statutory approvals and determining the optional development pathway to maximise and realise value for Intermin shareholders as Goongarrie Lady is confirmed as the next development in the production pipeline to enable our self-funded organic growth.”

 

Email: iadmin@intermin.com.au

Website: www.intermin.com.au

 

Galena Mining Completes Abra Scoping Study

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THE BOURSE WHISPERER: Galena Mining (ASX: G1A) released details of a Scoping Study undertaken at the company’s 100 per cent-owned Abra base metal project in Western Australia.

Galena Mining said the Study had confirmed Abra as an economically and technically robust opportunity, with potential to become a long-life, high margin West Australian lead-silver producer.

Study results include:

Initial mine life of 11 years, with opportunities identified to extend beyond 11 years;

Annual throughput of one million tonnes per annum, with average grades of 9.7 per cent lead and 15 grams per tonne silver, producing 91,000 tonnes per annum of lead and 450,000 ounces of silver annually; and

Average life of mine cash (C1) costs of US$0.46 per pound and total costs (C3) costs of US$0.56 per pound (includes all royalties) – high margin, strongly cash generative operation.

Galena declared exploration potential exists to add to the lead-silver mineralisation already identified to be converted to JORC Resource with additional drilling.

The company believes the potential development of Abra coincides with a very strong outlook for lead with increasing demand and reducing supply producing an average spot lead price of US$0.97 per pound over the last 10 years.

Base case analysis in the study uses a US$0.95 per pound lead price.

On the back of the study results, Galena has signalled it is progressing into the next phase of work at Abra, across multiple fronts and at a maximum pace.

A Pre-Feasibility Study (PFS) is due for completion in September 2018.

“This Scoping Study has confirmed the economic viability of the Abra project and has increased our confidence in the real potential of the project as a near-term Western Australian development opportunity,” Galena Mining CEO Ed Turner said in the company’s announcement to the Australian Securities Exchange.

“This is an exciting long life, high margin and low capital project in a Tier-1 jurisdiction.

“Abra’s latest representative metallurgical test work demonstrates that it can produce a very high-grade (74.5 per cent lead and 140g/t silver), high quality clean concentrate that is in high demand.”

 

Website: www.galenamining.com.au

 

Draig Resources Achieves High Gold Recoveries from Tribune Lode

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THE BOURSE WHISPERER: Draig Resources (ASX: DRG) reported excellent initial gravity and cyanide leach recovery test work results from the Tribune Lode discovery at the company’s Bellevue gold project in Western Australia.

Draig Resources tested three composite samples during the metallurgical program, all of which were sourced from hard rock samples of primary Lode material for testwork conducted by ALS Metallurgy in Perth.

The work returned total gold extraction results of up to 98.8 per cent through a combination of gravity and 48-hour cyanide leach bottle rolls.

Exceptional gravity recoveries of up to 82.5 per cent of total gold recovered by the Knelson Concentrator prior to cyanide leaching.

Draig Resources said the results of the preliminary program were in line with company expectations based on historical performance at the adjacent Bellevue mine.

The company said the results also indicate that Tribune Lode will be amenable to a conventional gravity and cyanide leach processing circuit.

The company indicated it will be continuing drill testing of deeper extension targets below the Bellevue underground mine over the coming weeks leading to an anticipated Resource estimate for the Bellevue gold project in quarter three this year.

“The confirmation of excellent gold recoveries from the Tribune Lode is in line with our expectations and demonstrates a conventional processing technique can be used to extract gold from the Tribune Lode,” Draig Resources executive director Steve Parsons said in the company’s announcement to the Australian Securities Exchange.

“We are looking forward to updating the market to our activities in quarter three 2018 in regard to the deeper drill targeting, our maiden resource estimate for the Bellevue gold project and the commencement of regional exploration.”

 

Email: admin@draigresources.com

Website: www.draigresources.com

 

Sheffield Resources Granted Thunderbird Miscellaneous Licences

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THE BOURSE WHISPERER: Sheffield Resources (ASX: SFX) advised that it has been granted Miscellaneous Licences 04/82 and 04/83 by the Western Australian Department of Mines, Industry Regulation and Safety.

Sheffield Resources said the grant of the miscellaneous licences follows completion of a coexistence agreement with Walalakoo Aboriginal Corporation (WAC), the prescribed body corporate for the Nyikina Mangala native title holders, securing road access to the company’s Thunderbird mineral sands project.

“The finalisation of the coexistence agreement with the Nyikina Mangala people announced last week provided for the granting of the Miscellaneous Licences today,” Sheffield Resources managing director Bruce McFadzean said in the company’s announcement to the Australian Securities Exchange.

“We now have full miscellaneous licence access to the mining lease application area.

Sheffield Resources indicated it will continue to advise the community and shareholders of further developments in relation to Thunderbird.

 

Email: info@sheffieldresources.com.au

Website: www.sheffieldresources.com.au

 

Sheffield Resources Signs Thunderbird Ilmenite Take-Off Deal

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THE BOURSE WHISPERER: Sheffield Resources (ASX: SFX) announced a maiden binding ilmenite offtake agreement for the future sale of low temperature roast (LTR) ilmenite from the company’s Thunderbird Mineral Sands project in Western Australia.

Sheffield Resources has signed the deal with Bengbu Zhongheng New Materials S&T Co., Ltd.

The agreement is based on a five-year minimum annual supply of 150,000 tonnes of LTR ilmenite.

This represents approximately 50per cent of the estimated total volume of LTR ilmenite to be produced from Stage 1 of Thunderbird.

“We welcome and value the important relationship that we have established with Bengbu and look forward to further growth opportunities in the future,” Sheffield Resources managing director Bruce McFadzean said in the company’s announcement to the Australian Securities Exchange.

“This binding offtake agreement further demonstrates the quality of products that Sheffield will export from Thunderbird.

“Through this relationship, we are able to target Thunderbird LTR ilmenite as feedstock for the high growth chloride slag market.

“With this agreement now in place, more than 75 per cent of Stage 1 forecast revenue is contracted under binding offtake agreement, covering 100 per cent of our Stage 1 zircon products and 50 per cent of Stage 1 LTR ilmenite.

“Demand for our products remains very strong and we look forward to providing the community and our shareholders with further offtake and project updates in the future.”

 

Email: info@sheffieldresources.com.au

Website: www.sheffieldresources.com.au

 

Pioneer Resources Strikes 100 per cent offtake deal for Sinclair Caesium Mine

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THE BOURSE WHISPERER: Pioneer Resources (ASX: PIO) has entered into an offtake agreement with Cabot Specialty Fluids Ltd, a wholly owned subsidiary of New York-listed Cabot Corporation.

Pioneer Resources struck the deal, which will result in Cabot (NYSE: CBT) buying 100 per cent of the caesium ore to be extracted from the Sinclair Zone caesium deposit – to be known as the Sinclair mine.

The Offtake Agreement includes a US$4.8 million loan facility to fund mining operations at the proposed Sinclair mine, which is part of Pioneer’s 100 per cent-owned Pioneer Dome project near Norseman in Western Australia.

The Sinclair mine will be Australia’s first ever commercial caesium ore producer.

The US$4.8 million interest-free loan facility will fully fund mining operations at the proposed Sinclair mine to extract the project’s caesium ore in the form of the mineral pollucite.

The loan is to be offset by Pioneer through the delivery of direct shipping ore (DSO) pollucite from the Sinclair mine via the Offtake Agreement with Cabot, or by cash settlement.

The offtake agreement provides for the sale and purchase of all of the pollucite mined from proposed Sinclair mine, which will be supplied as DSO product.

“The Offtake Agreement is a significant milestone for Pioneer and for the Sinclair mine,” Pioneer Resources managing director David Crook said in the company’s announcement to the Australian Securities Exchange.

“We are delighted to have secured an off-taker with the credibility and reputation that Cabot Corporation holds.

“Within two years, the company has discovered and defined Australia’s first caesium deposit, been granted a Mining Lease, completed a robust mining study for the proposed Sinclair mine, and are advancing the statutory mining approval process.

“We now add to that the execution of the Offtake Agreement – a key element of which is the US$4.8 million loan facility which provides sufficient funds to extract the caesium (pollucite) ore from the Sinclair mine, with delivery as a DSO product to a global caesium specialist.”

 

Email: pioneer@PIOresources.com.au

Website: www.PIOresources.com.au

 

Matsa Resources and AngloGold Ashanti Sign MoU

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THE BOURSE WHISPERER: Matsa Resources (ASX: MAT) has struck a Memorandum of Understanding (MoU) with AngloGold Ashanti Australia (AGAA).

Matsa Resources said the deal would be of great benefit to the company’s gold mining and exploration activities throughout its Lake Carey gold project which includes the Fortitude, Red Dog and Red October gold mines in Western Australia.

Key aspects of the MoU include:

AGAA to receive first option, and endeavour to treat all gold ore produced by Matsa within the MoU area subject to ore complying with technical requirements;

Both parties to enter a separate technical data sharing agreement under which exploration and other technical information is to be shared and discussed, subject to confidentiality provisions;

Sharing of infrastructure including airport, roads, medical and other facilities where mutually beneficial; and

A model access agreement to be used in all instances of overlapping tenements, especially miscellaneous licences for haul roads etc. which will streamline the grant process within the MoU area.

Matsa explained the non-binding MoU is the outcome of a working relationship established between Matsa and AGAA over the last two years, which included the Fortitude trial mine that ultimately underpinned the economic viability of that recently completed operation.

The MoU covers a large area including Matsa’s Lake Carey and Red October gold projects and AGAA’s Lake Carey and Sunrise Dam operations in the Lake Carey district.

“This agreement represents a massive increase in potential and boost in credibility to Matsa’s Fortitude, Red October and Red Dog mines within the stated area of interest,” Matsa Resources executive chairman Paul Poli said in the company’s announcement to the Australian Securities Exchange.

“Matsa and AngloGold have developed a strong working relationship with each other and this MoU strengthens that relationship to help identify and develop new gold deposits to both party’s benefit.

“Both companies are winners with this cooperation as it allows Matsa access to facilities and knowledge that has been developed by AngloGold over many years.

“This access will strengthen and increase the ability of Matsa to grow its gold ore resources which in turn may assist AGAA to gain additional ore feed for the Sunrise Dam treatment plant.

“It’s a ‘win-win’ for both companies.”

 

Email: reception@matsa.com.au

Website: www.matsa.com.au

 

Alloy Resources Strike Farm-In JV with Rio Tinto

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THE BOURSE WHISPERER: Alloy Resources (ASX: AYR) has struck a Farm-In and Joint Venture Agreement with Rio Tinto subsidiary, Rio Tinto Exploration Pty Limited (RTX).

Alloy Resources and RTX will join forces to explore Exploration Licence EL 45/4807, located in the Paterson region of Western Australia.

The key terms of the Binding Term Sheet include:

Upon Execution RTX is to reimburse Alloy’s previous costs of $40,000.

RTX has the right to earn a 70 per cent joint venture interest in the Tenement by completing the following within 3 years:

Expenditure of at least $500,000; and
At least 500 metres of drilling on the Tenement.

RTX must spend a minimum of $133,000 within 12 months before it can withdraw and is obligated to keep the Tenement in good standing prior to any withdrawal.

In the event RTX earns a 70 per cent interest, Alloy will have a First Election to:

Commence contributing in accordance with its 30per cent participating interest;
Convert its interest to a 1.25 per cent NSR Royalty capped at $15 million plus a right to receive a $1.5 million prepayment of the Royalty upon a decision to mine; or
Not commence contributing to the joint venture and for RTX to continue to sole fund expenditure to earn a further 15 per cent interest.

“We are pleased to have RTX’s interest in exploring our large exploration area north-west of Telfer,” Alloy Resources executive chairman Andy Viner said in the company’s announcement to the Australian Securities Exchange.

“They have been actively exploring in the region since 2015 and we are hopeful that this intellectual knowledge can accelerate definition of the potential for gold-copper mineralisation within our Tenement.

“The area has some historic first pass copper and gold drill results of interest, however this was from back in the 1990s and we will now benefit from modern exploration techniques and geological models.”

 

Email: info@alloyres.com

Website: www.alloyres.com

 

Intermin Resources Consolidates Yarmany Ground

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THE BOURSE WHISPERER: Intermin Resources (ASX: IRC) has moved to consolidate tenure for the Yarmany gold project, 65 kilometres west of Kalgoorlie-Boulder in Western Australia.

Intermin Resources’ Yarmany project area comprises five granted tenements and five applications.

Of these, ELA15/1655 and ELA 16/510 are recent applications that cover newly available ground contiguous with the company’s 100 per cent-owned Yarmany and Area 54 prospects.

Intermin now claims to hold a dominant position overlying the Ida and Reptile Shear zones and covering over 320 square kilometres.

Previous geochemical work completed by earlier owners identified numerous anomalies, many of which Intermin is yet to follow up.

The Iguana – Jamaica and Lizard gold mines along strike of the company’s tenure were developed between 2000 and 2009 producing 68,000 ounces of gold grading three grams per tonne and have current resources of 201,000 ounces.

Intermin has commenced data compilation and target generation for drilling in early 2019 upon final granting of applications.

“The consolidation of the Yarmany tenure is in line with the company’s strategy of acquiring quality assets on major geological structures contiguous with existing landholding and in close proximity to supporting infrastructure,” Intermin Resources managing director Jon Price said in the company’s announcement to the Australian Securities Exchange.

“The area has had limited work completed in the last 20 years and was consolidated through pegging at very low cost.

“We see great opportunity for Yarmany to join Teal, Anthill and Blister Dam as a key growth project for Intermin in this world class gold producing region.”

 

Email: iadmin@intermin.com.au

Website: www.intermin.com.au