THE BOURSE WHISPERER: WPG Resources (ASX: WPG) was forced to temporarily close down operations at the company’s Tarcoola gold mine in South Australia due to two large rain downpours, leaving all roads to the mine closed for the time being.

WPG Resources said the road closures caused interruptions to scheduled deliveries of potable water, diesel and camp supplies.

“Heavy vehicle access between Tarcoola and Challenger has also been interrupted,” WPG Resources said in its ASX announcement.

“Ore haulage to Challenger has been interrupted since Saturday 22 April but will resume upon the rail access corridor road becoming passable.

“Pit production has been temporarily suspended commencing Tuesday 25 April and will remain suspended until further notice.”

WPG Resources indicated that no ore will be mined this week and a decision will be made next week as to when mining resumes.

The company said there are sufficient ROM at Challenger so that milling operations will be unaffected.

Email: info@wpgresources.com.au

Website: www.wpgresources.com.au

THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) and wholly-owned subsidiary, Lithophile Pty Ltd, has been granted title to areas in the Gascoyne Province of Western Australia the company considers to be prospective for lithium mineralisation.

Lithium Australia has been granted five exploration licences which make up the Gascoyne project, located approximately 800 kilometres north of Perth in Western Australia.

The project area lies along strike and adjacent to the Nardoo Pegmatite District and is spatially associated with peraluminous S-type granitoids that LIT believes could be a possible source of the extensive pegmatites of the district.

Lithium Australia had a GIS data package of all open file geophysical and geological data assembled in November 2016 by Southern Geoscience Consultants (SGC) that enabled the company to generate targets for ground geological reconnaissance and sampling on most of its WA projects.

LIT said it anticipates SGC’s GIS data package will generate additional targets over the Gascoyne project.

“The Gascoyne has many of the attributes of WA’s other emerging lithium centres,” Lithium Australia managing director Adrian Griffin said in the company’s announcement to the Australian Securities Exchange.

“The area has been a focus of past rare metal exploration, but its lithium potential has been ignored. The project is an important part of LIT’s long-term strategy to procure alternative lithium sources to feed its versatile, 100 per cent-owned Sileach processing technology.”

Email: info@lithium-au.com

Website: www.lithium-au.com

THE BOURSE WHISPERER: Aruma Resources (ASX: AAJ) has been granted the Slate Dam gold tenement east of Kalgoorlie in Western Australia.

Aruma Resources said the new tenement sits adjacent to the company’s Glandore Joint Venture with Southern Gold (ASX: SAU) and its Goddards Dam project.

The company claimed the tenement to cover highly anomalous gold ground within the geology that hosts the Majestic and Imperial gold deposits.

Aruma indicated it is now waiting for granting of the adjacent Mulga Dam lease, which is scheduled for granting in the coming months.

Aruma applied for the Slate Dam and Mulga Dam exploration licences (EL25/553 and ELA25/556) in 2016 with the intention to investigate the gold potential in sulphidic sediments associated with granites and mineralisation like the Invincible deposit at Kambalda.

The company is now arranging statutory requirements for programs of work (PoW) and Heritage Surveys while existing exploration databases and geology are being validated in preparation for drilling.

“Aruma now has a significant landholding in excess of 200 square kilometres in a desirable address east of Kalgoorlie which is highly prospective for gold,” Aruma Resources managing director Peter Schwann said in the company’s announcement to the Australian Securities Exxchange.

“Our activity in the area will increase this year as we define and drill targets from an extensive database of drilling results, magnetic surveys and HyVista mapping.”

Email: info@arumaresources.com

Website: www.arumaresources.com

THE BOURSE WHISPERER: Sheffield Resources (ASX: SFX) signed two memorandums of understanding (MoUs) for the future sale of premium zircon from the company’s Thunderbird mineral sands project, in Western Australia.

Sheffield Resources said the MoUs are non-binding and have been signed with an industry leading Indian ceramics company, Ruby Ceramics Pvt Ltd, and a well-established European ceramics company, CFM Minerales s.a. of Spain.

Sheffield declared the combined agreements represent up to approximately 20 per cent of the estimated total volume of premium zircon expected to be produced from Stage 1 of the Thunderbird project.

The company explained the signing of the MoUs came after product testing and discussions between the parties, adding that all involved have affirmed their intentions to finalise negotiations and enter binding offtake agreements over the coming months.

Sheffield indicated it is also in negotiations with other potential consumers of its products and will update the market as required.

“The MoUs have been signed with zircon consumers with a high standing in the industry, confirming Sheffield’s capability of supplying the global market with very high quality products once in production,” Sheffield Resources managing director Bruce McFadzean said in the company’s announcement to the Australian Securities Exchange.

“The recent BFS confirms that zircon will represent 62 per cent of the estimated project revenues and we look forward to advancing binding offtake agreements with both Ruby and CFM, as cornerstone premium zircon customers of the company.

“In conjunction with these arrangements, we are working with our financial advisor, Azure Capital, to progress the funding for project development.”

Sheffield claim Thunderbird to be one of the largest and highest grade mineral sands discoveries in the last 30 years.

A Bankable Feasibility Study has demonstrated Thunderbird to be a technically low risk, modest capex project that should generate strong cash margins from global levels of production over a long mine life of 42 years.

Subject to permitting activities, Sheffield Resources is targeting project construction commencing in late 2017 with initial production in 2019.

Email: info@sheffieldresources.com.au

Website: www.sheffieldresources.com.au

THE BOURSE WHISPERER: Sheffield Resources (ASX: SFX) released results of a recently-completed Bankable Feasibility Study (BFS) on the company’s 100 per cent-owned Thunderbird mineral sands project, located near Derby in northern Western Australia.

Sheffield Resources said the BFS demonstrated Thunderbird to be a financially robust and technically strong project, forecast to generate EBITDA of $5.1 billion over a 42 year mine life.

The company explained the BFS was based on a conventional dozer trap mineral sand mining and processing operation involving an initial 8.5 million tonnes per annum throughput (single mining unit), doubling to 17 million tonnes per annum in Year five via the addition of a second mining unit and processing stream.

“The study findings show Thunderbird is a technically low risk project and is anticipated to generate significant and consistent financial returns over an exceptionally long mine life of 42 years,” Sheffield Resources managing director Bruce McFadzean said in the company’s announcement to the Australian Securities Exchange.

“Thunderbird is located in one of the most attractive mining investment jurisdictions and is well placed to deliver a long term, secure supply of high quality products to a range of potential customers.

“Completion of the BFS clears the way for delivery of the next major milestones; offtake, permitting and project finance ahead of a targeted construction start in the second half of 2017.

“Offtake discussions are progressing with leading global ilmenite and zircon consumers.

“There has been strong interest in our high-quality suite of products.

“In conjunction with our corporate advisors Azure Capital, we are engaging with both project finance providers and potential strategic partners to arrive at an optimal funding solution.”

Email: info@sheffieldresources.com.au

Website: www.sheffieldresources.com.au