Australian Potash Encouraged by Lake Wells Scoping Study Results

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THE BOURSE WHISPERER: Australian Potash (ASX: APC) has completed a Scoping Study on the development of the company’s 100 per cent-owned Lake Wells potash project in Western Australia.

Australian Potash declared the Scoping Study exceeded its expectations and had confirmed the Lake Wells project’s economic, financial and technical aspects to all be exceptionally strong.

The company also said the Study highlights its potential to become a long-life, low capital and high margin sulphate of potash (SOP) producer.

Having received the results, Australian Potash indicated it will immediately move to conduct brief optimisation studies, site investigations and test-work, all of which will form the basis for a Feasibility Study planned to commence in the second quarter of 2017.

“This Scoping Study shows that the Lake Wells potash project, located 500 kilometres north-east of Kalgoorlie, will enjoy considerable production scale, low capital expenditure, high margins and a long mine life,” Australian Potash executive chairman Matt Shackleton said in the company’s announcement to the Australian Securities Exchange.

“From initial planned production rates, we have numerous opportunities to expand production capacity to meet growing demand and the market environment at the time.

“The project has the right location, the right brine chemistry and the right extraction method of the resource, to truly allow for numerous expansion pathways.

“In addition, we have identified numerous potential upside opportunities for the project, which in turn allows for the optimisation of fundability and economic returns and positions APC exceptionally well to dominate Australian SOP supply.

“In light of these strong findings, we are commencing optimisation studies before quickly moving to a Feasibility Study, beginning with building a pilot harvest pond.

“The optimisation studies and Feasibility Study will generate strong newsflow over the coming months as we seek to expedite technical studies, funding discussions and project development.”

Website: www.australianpotash.com.au

Pioneer Resources Produces Battery-Grade Lithium Carbonate using Lepdico L-Max Technology

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THE BOURSE WHISPERER: Pioneer Resources (ASX: PIO) announced results of testwork carried out on a sample of lepidolite-bearing pegmatite sourced from the company’s 100 per cent-owned Pioneer Dome lithium-caesium tantalum (LCT) project in Western Australia.

Pioneer Resources said that Lepidico (ASX: LPD) informed the company of the results from the recent trial.

These included the production of high specification battery grade lithium carbonate grading 99.7 per cent produced using Lepidico’s L-Max technology.

Lepidico said the L-Max process had achieved over 93.9 per cent lithium extraction from the flotation concentrate, with estimated lithium recovery to the final lithium carbonate product of 90 per cent.

“Mineralised samples used in the test program contained approximately 57 per cent lithium mica and graded 2.8 per cent lithium oxide (Li2O),” Pioneer Resources said in its ASX announcement.

“From a three kilogram sub-sample, a flotation concentrate was produced grading 3.6 per cent Li2O.

“Lithium recovery to concentrate was over 99 per cent.

“The sample was then subjected to leaching under standard L-Max conditions, with extractions for lithium and caesium of approximately 94 per cent and 93 per cent respectively achieved.

“The leach liquor from the test was subjected to the usual L-Max downstream process flowsheet in a series of batch tests.

“Lithium losses in the post leach L-Max process were estimated at less than 3 per cent, with total recovery from concentrate to lithium carbonate of approximately 90 per cent.

“Battery grade lithium carbonate grading 99.7 per cent lithium carbonate (Li2CO3) was produced from these tests.

“Caesium and rubidium in residue also represent an excellent opportunity to extract further valuable by-products, as has been undertaken on previous samples tested by Lepidico.”

Pioneer and Lepidico struck a Joint Venture for PEG009 in February, 2017 at Pioneer’s Pioneer Dome LCT pegmatite project in the Eastern Goldfields of Western Australia.

Under the JV terms Lepidico may earn a 75 per cent interest in Lepidolite mineralisation at the PEG009 prospect by delineating at least 500,000 tonnes of mineralisation grading at least 1.2 per cent Li2O in lepidolite within two years.

This is considered sufficient to feed a proposed Phase 1 L-Max Plant for five years.

The JV is restricted to lepidolite and minerals able to be treated by the L-Max process sourced from the PEG009 prospect only.

The JV area is approximately 2 per cent of the total Pioneer Dome LCT project area of 338 square kilometres.

Website: www.pioresources.com.au

Plymouth Minerals Acquires Historic San Jose Feasibility Study

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THE BOURSE WHISPERER: Plymouth Minerals (ASX: PLH) has acquired all data produced as part of a historical feasibility study completed on the company’s San Jose lithium deposit in Spain.

Plymouth Minerals said the comprehensive data set was produced over several years by diversified Spanish mining company Tolsa which owned the project during the study period from 1985 to 1991.

Plymouth is earning up to 75 per cent of San Jose and is partnered with Spanish engineering and construction company Sacyr, through its wholly-owned subsidiary mining arm, Valoriza Mineria.

The company explained it purchased this data from the previous owner, Tolsa, in order to expedite the development of San Jose.

In light of the acquisition, Plymouth has paused its current RC and diamond drilling campaign after the completion of the 10th drill hole pending the integration of all available drilling data received through this acquisition.

Plymouth said the newly-acquired data acquired will enable it to fast track completion of a maiden JORC resource for San Jose outlining its intentions to publish a maiden JORC resource combining the historic data and its recently drilled holes.

The company believes the acquisition of the data will reduce the expected time and cost of the required drilling programs.

“This is a significant step forward and as a result a major saving of time and money for Plymouth,” Plymouth Minerals executive chairman Adrian Byass said in the company’s announcement to the Australian Securities Exchange.

“We believe this data will accelerate work and allow Plymouth to cement San Jose’s position as one of the most advanced lithium carbonate development projects in the world.”

Website: www.plymouthminerals.com

Altech Chemicals Given Government Approval for Meckering

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THE BOURSE WHISPERER: Altech Chemicals (ASX: ATC) has received Western Australia Department of Mines and Petroleum approval for the mining proposal and the associated mine closure plan for the company’s Meckering kaolin deposit.

Altech Chemicals said the approval was important for the development of the proposed Meckering kaolin mine, which will provide feedstock for Altech’s proposed Malaysian-based high purity alumina (HPA) plant.

Altech explained the approved submission allows for mining activities to commence within the 100 per cent-owned Meckering mining lease M70/1334, located approximately 140 kilometres east of Perth.

At Meckering, Altech plans to mine approximately 140,000 tonnes of kaolin once every three years with mining scheduled to take place in short two-month mining campaigns.

The resultant raw kaolin ore will be stockpiled on site, then containerised into standard shipping containers at the rate of approximately 40,000 tonnes per annum and shipped to Johor, Malaysia via the port of Fremantle.

“The company is delighted to have received mining approval for the Meckering kaolin deposit,” Altech Chemicals managing director Iggy Tan said in the company’s announcement to the Australian Securities Exchange.

“Whilst the company will not need to commence mining kaolin until 2018, the approval of the mine is an important developmental milestone that has now been ticked off.

“The next step is the works approval application for the proposed loading facility at Meckering, which is assessed by the Department of Environment Regulation.”

Email: info@altechchemicals.com

Website: www.altechchemicals.com

Southern Gold Concludes Cannon Campaign Number Seven

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THE BOURSE WHISPERER: Southern Gold (ASX: SAU) released results of the seventh processing campaign of ore treated during January and February 2017 from the company’s Cannon Gold Mine southeast of Kalgoorlie in Western Australia.

Southern Gold’s gold processing is being managed by Westgold Resources (ASX: WGX).

The latest campaign produce 14,257 ounces of gold, bring total production from Cannon to 44,576 ounces of gold.

Southern Gold indicated the eighth processing campaign of approximately 40,000 tonnes of Cannon gold ore is expected to commence towards the end of March and extend into April.

The ninth, and final, processing campaign from the open-pit is currently pencilled in for June.

“The seventh processing campaign was a substantial one for us, providing a window to sell gold into the current spot price north of $1,600 per ounce,” Southern Gold managing director Simon Mitchell said in the company’s announcement to the Australian Securities Exchange.

“Our recently announced hedge at $1,621 per ounce covers a portion of production yet to come.

“The Cannon proceeds account is now well in the black, providing Southern Gold with optionality on various final mine designs, including the potential to develop underground access that will enable the drilling of Cannon extensions at depth.”

Email: info@southerngold.com.au

Website: www.southerngold.com.au

Southern Gold Strikes Gold Hedge with Sumitomo

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THE BOURSE WHISPERER: Southern Gold (ASX: SAU) has put a gold hedge in place with Japan’s Sumitomo Corporation Global Commodities (SCGC).

Southern Gold described the hedge as a fixed forward contract to sell 2,500 troy ounces (Toz) of gold at $1,621 per Toz, representing a contract value of $4,052,500.

The company explained the forward sale is to be cash settled on 30 June, 2017, however, the contract is also able to be cash settled early at any time prior to that date.

Arrangements are also in place with SCGC to enable additional hedging should Southern Gold look to do so.

The hedge covers less than Southern Gold’s 50 per cent share of gold currently in stockpile, which the company said represents a low delivery risk and as such has been executed on an unsecured basis.

“It is prudent that the company locks in a portion of its future cash flow at current gold prices north of $1,600 per ounce and take some of the volatility out of projected earnings, especially given how material they are compared to Southern Gold’s market capitalisation,” Southern Gold managing director Simon Mitchell said in the company’s announcement to the Australian Securities Exchange.

“I acknowledge the good work undertaken by the hedge counterparty, Sumitomo Corporation Global Commodities Ltd, which was assisted locally by Royalty Stream Investments, to put this hedge in place.

“It is an excellent outcome for a company of our size and points to their confidence in Southern Gold’s immediate future.

“I look forward to working with them again on our new projects currently in the pipeline.”

Email: info@southerngold.com.au

Website: www.southerngold.com.au

Vimy Resources Receives Commonwealth Approval for Mulga Rock Project

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THE BOURSE WHISPERER: Vimy Resources (ASX: VMY) received Commonwealth approval for the company’s Mulga Rock uranium project in Western Australia.

Vimy Resources said the Minister for the Environment and Energy, Josh Frydenberg, has approved its proposed action, being the development of the Mulga Rock project, located 240 kilometres north east of Kalgoorlie, subject to specified conditions.

The Minister’s approval for the Mulga Rock project comes at an opportune time for Vimy, just days before the Western Australian election that could result in a Labor Government led by Mark McGowan that may not have much affection for uranium mining in the state.

Vimy explained this was the final approval required before work on the project can commence.

Early works have, up until now, been prohibited by s.74AA of the Environment Protection and Biodiversity Conservation Act 1999.

The Mulga Rock project was initially referred by Vimy under the EPBC Act in November 2013 and was determined by the Department of Environment in January 2014 to be a controlled action that would be assessed under the bilateral agreement with the Western Australian State Government.

The proposal was varied in December 2015 to reflect an increase in footprint that had resulted from feasibility study work.

“This is the final environmental approval required before work can commence,” Vimy Resources chairman Cheryl Edwardes said in the company’s announcement to the Australian Securities Exchange.
 
“This approval has been more than three years in the making and has involved considerable effort on the part of all those involved.”

Email: info@vimyresources.com.au

Website: www.vimyresources.com.au

Southern Gold receives third $2M profit share distribution from Cannon gold mine

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THE BOURSE WHISPERER: Southern Gold (ASX: SAU) has received payment of the third profit share distribution from the company’s operating Cannon open-pit gold mine near Kalgoorlie in Western Australia.

Southern Gold explained the Cannon gold mine operations committee resolved to pay $4 million in distributions: $2 million to the company with the processing plant, Westgold Resources (ASX: WGX) and $2 million to Southern Gold.

This takes total payments so far to Southern Gold from the Cannon mine to $5.5 million.

Westgold is managing operations at the Cannon gold mine and processing Cannon ore at the South Kalgoorlie Operations Jubilee plant.

Southern Gold it intends directing approximately $1 million of this distribution to the repayment of the Convertible Debt Facility, after which the company shall be debt free.

Southern Gold’s seventh processing campaign of Cannon ore has just been completed and the eighth is currently projected to commence during March 2017, however, the exact start date is yet to be confirmed.

“Assuming the mine is taken to completion, Southern Gold expects to receive further distributions during the period to 30 June 2017 of approximately $10 million under the base case (assuming $1600 per ounce gold price and 90 per cent recovery),” Southern Gold said I its ASX announcement.

“The exact timing and quantum of distributions will be optimised over the coming month with final mine plans being designed to take account of ‘goodbye cuts’ and the extraction of higher grade gold ore while also managing geotechnical issues.”

Email: info@southerngold.com.au

Website: www.southerngold.com.au

Lithium Australia Signs German MoU and Farm-In Deal

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THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) has entered into a binding Memorandum of Understanding (MoU) to form a Joint Venture with Tin International AG, a subsidiary of German-listed company Deutsche Rohstoff AG.

Lithium Australia explained the JV will include the Sadisdorf deposit, located in Saxony, Germany.

Under the terms of the deal, Lithium Australia has the right to earn 15 per cent of the to-be-established company by spending a total of EUR 750,000 on exploration at Sadisdorf until the end of 2017.

Alternatively, the company can elect to pay the outstanding amount in cash to Tin International by year-end.

By investment of a further EUR 1.25 million over a three-year period Lithium Australia has the right to further increase its interest in the JV Company to 50 per cent.

After the completion of this ‘earn-in’ period, the partners equally bear the project development costs or are diluted accordingly.

“Sadisdorf has mine openings, historic tin production and a well identified lithium halo through and around the JORC Resource,” Lithium Australia managing director Adrian Griffin said in the company’s announcement to the Australian Securities Exchange.

“This is a great opportunity to establish a substantial lithium resource to feed a Sileach processing facility in Europe.”

Lithiun Australia will be manager of the JV, which aims to extend and upgrade the existing Sadisdorf JORC 2012-compliant Inferred resource of 3.36 million tonnes at 44 per cent tin at a cutoff of 0.25 per cent tin.

From tis the aim is to delineate a lithium resource which is anticipated to be associated with the tin mineralisation.

The tin orebody is thought to contain the order of 15 per cent zinnwaldite, which Lithium Australia explained to be a lithium mica considered to be very easily treated with the company’s registered Sileach process.

“We are pleased about the signed MoU,” Deutsche Rohstoff CEO Thomas Gutschlag said.

“Lithium Australia brings a wealth of processing technology and knowledge that will potentially enable the extraction of lithium as by-product from the tin production and will make Sadisdorf an economically viable project.”

Email: info@lithium-au.com

Website: www.lithium-au.com

Musgrave Minerals Sells Fraser Range Tenements to Legend Mining

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THE BOURSE WHISPERER: Legend Mining (ASX: LEG) has purchased two granted exploration licences from Musgrave Minerals (ASX: MGV), located in the Fraser Range district of Western Australia.

Legend Mining said the 238.5 square kilometre tenements are contiguous with the company’s Rockford project.

Legend’s total tenement holding in the Fraser Range is now 2,792.5sqkm, comprising nine exploration licences and three exploration licence applications.

“This transaction complements our existing project as both tenements are contiguous with other Rockford tenements,” Legend Mining managing director Mark Wilson said in the company’s announcement to the Australian Securities Exchange.

“It increases the project exposure to the western stratigraphy of the Fraser Zone and a quality data set came with the acquisition.

Legend Mining indicated it has identified several targets of interest from aeromagnetic/gravity data interpretation on the new tenements, which will be integrated into exploration activities within the larger Rockford project program.

Follow up work will include regional high powered moving loop electromagnetic surveys (MLTEM) and aircore drilling aimed at defining RC/diamond drill targets.

Under the terms of the agreement, Musgrave will transfer to Legend 100 per cent of its interests in the tenements, for which it will receive 10 million fully paid ordinary shares in Legend (which will be freely tradeable) and 10 million unlisted options exercisable at four cents expiring 30 March 2021.

“The transaction with Legend delivers on the company’s objectives of crystalizing value via divesting non-core assets to enable the company to direct its focus on the Cue project in the Murchison region of Western Australia,” Musgrave Minerals managing director Rob Waugh said in his company’s ASX announcement.

“The transaction with Legend also provides Musgrave Shareholders with exposure to the very large land holding held by Legend in the Fraser Range region.”

Email: info@musgraveminerals.com.au

Website: www.musgraveminerals.com.au