Neometals and Mineral Resources Ship First Load of Mt Marion Lithium to China

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THE BOURSE WHISPERER: Mt Marion lithium project partners Mineral Resources (ASX: MIN), Neometals (ASX: NMT) and Ganfeng Lithium Co. Ltd informed the market of the first shipment of lithium concentrates produced at the project in Western Australia.

The companies said the first shipment of 15,000 tonnes of lithium concentrates have been loaded onto the MV Pacific Venus at the Port of Kwinana.

The shipment is bound for the Zhenjiang Port, China where it will deliver the product to Ganfeng.

Neometals and minerals Resources said this first shipment follows commissioning and continued ramp up of production from Mt Marion, which is forecast to produce 400,000 tonnes per annum at full capacity.

“The successful first shipment from Mt Marion is a significant milestone for Neometals and our project partners, and we are proud to have been part of progressing the project from final investment decision to first shipment within 18 months,” Neometals managing director Chris Reed said in the combined ASX announcement.

“Today’s inaugural shipment from Mt Marion is the outcome of hard work and dedication by the construction and operations teams of MRL who have demonstrated our proven ability to safely deliver world class projects in a fast tracked and cost effective manner,” Mineral Resources managing director Chris Ellison said.

“I also congratulate our Mt Marion partners on this important project milestone and thank them for their continued trust and support.”

Email: info@neometals.com.au

Website: www.neometals.com.au

Lithium Australia Makes Takeover Move on Lepidico

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THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) made its intentions known that it is making a conditional off-market scrip bid for Western Australia lithium explorer and developer, Lepidico Ltd (ASX: LPD).

Lithium Australia announced the offer, valued at $23.8 million, for all of the fully paid ordinary shares in LPD on the basis of one LIT fully paid ordinary share for every 13.25 fully paid ordinary shares in LPD.

LIT admitted the bid is a healthy premium to the current trading price and values LPD at a 13 per cent premium, however it also claimed the bid provides LPD shareholders with the opportunity to participate in a combined group which would be the holder of one of the largest lithium exploration and development portfolios in the world, as well as holding multiple lithium processing technologies for treating both spodumene and mica mineralogies.

To that end LIT has already entered into agreements with LPD shareholders currently holding 17.87 per cent of LPD, including Parkway Minerals (ASX: PWN) , which has agreed to sell its 97 million shares, who have agreed to accept the bid on the terms set out, in the absence of a higher bid.

LIT is making its Bid for LPD to secure ownership and control of LPD, explaining it has already been in negotiations to achieve a merger with LPD while also seeking a declaration from the WA Supreme Court in relation to the Sileach lithium treatment process.

LIT said it considers combining the companies is in the interests of shareholders of both companies as it will bring the Sileach process and LPD’s L-Max process as well as each group’s other intellectual property under common ownership.

“Lithium Australia and Lepidico have a similar business strategy, and both have excellent exploration projects and development prospects,” Lithium Australia managing director Adrian Griffin said in the company’s announcement to the Australian Securities Exchange.

“The litigation relating to processing technology is distracting and expensive and although Lithium Australia is confident of a positive outcome, the time and resources currently dedicated to the legal processes would be better employed in advancing our projects and technologies in concert, and for the benefit of the shareholders of both companies.

“It is the synergies in aspirations and assets that make combining the two companies the perfect opportunity for all shareholders.

“The combined entity is likely to be significantly more attractive for investors and financiers as well as a global leader in lithium processing at a time of unprecedented lithium demand.”

Lepidico replied via a market announcement of its own, saying it only learned of LIT’s intentions through its announcement that morning.

Lepidco said it was ruminating on its response, advising shareholders to Take No Action in relation to the announcement or any document received from Lithium Australia in relation to the proposed takeover offer until they receive the Directors’ formal recommendation.

“Lepidico wishes to clarify a disclosure made in the Announcement and confirms that it is not in negotiations with Lithium Australia to achieve a merger,” the company advised.

“The Board of Lepidico will keep shareholders fully informed of further developments as they occur.

‘In the meantime, following the excellent results reported from the Phase 1 L-Max Plant PreFeasibility Study over the past months, the company advises that it is continuing with its efforts to fast track and promote the project generally.”

Email: info@lithium-au.com
           info@lepidico.com

Website: www.lithium-au.com
               www.lepidico.com

Capricorn Metals Welcomes New Cornerstone Investor

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THE BOURSE WHISPERER: Capricorn Metals (ASX: CMM) announced a cornerstone $10 million investment by a leading international mining investment fund.

Capricorn Metals has entered into a binding agreement with Hawke’s Point, an international asset manager focused on the mining and metals sector, to subscribe for a $10 million placement in Capricorn shares at 11.7 cents per share.

The company said the deal would be a boost to its intentions of taking bringing its 100 per cent-owned Karlawinda gold project in Western Australia to production by next year.

Capricorn Metals said the investment from Hawke’s Point would will ensure the company is fully-funded through to completion of the current Definitive Feasibility Study and decision to mine, which is anticipated in Q3 2017.

It will also provide the capacity to accelerate exploration activities at the Karlawinda gold project with a view to further growing its resource inventory in the lead-up to first production.

“After extensive due diligence, we believe Hawke’s Point shares our view that the Karlawinda project is one of the most attractive new gold development projects in Australia, and we are delighted that they have agreed to become our cornerstone shareholder by making this significant investment,” Capricorn Metals managing director Peter Thompson said in the company’s announcement to the Australian Securities Exchange.

“The investment delivers a number of benefits for our shareholders, and provides access to capital on attractive terms.

“With a greatly strengthened balance sheet, Capricorn will be fully funded through to a decision to mine while also having much greater flexibility to expedite drilling of several near-mine targets we have identified in recent months.

“The agreed placement to Hawke’s Point is unanimously supported by Capricorn’s Directors, and we look forward to completing documentation for the investment and to getting on with the job of developing the Karlawinda gold project.”

Email: enquiries@capmetals.com.au

Website: www.capmetals.com.au

Panoramic Resources Feasibility Study gives thumbs up for Savannah North

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THE BOURSE WHISPERER: Panoramic Resources (ASX: PAN) has taken receipt of results of the Feasibilty Study conducted at the company’s Savannah nickel operation.

Panoramic Resources said the study demonstrates that mining of Savannah North extends the mine life at the Savannah operation with globally competitive cash costs and minimal pre-production capital requirements.

Panoramic placed the Savannah operation on care and maintenance last year due to the low price of nickel and the detrimental effect it was having on the operation’s bottom line.

The Feasibility Study was based on mining the remaining Ore Reserve at Savannah, whilst developing across to the Savannah North deposit.

Access development from Savannah to first ore at Savannah North is scheduled to take approximately nine months, with full production from Savannah North reached 15 months after commencement of development.

The FS forecast a low up-front capital investment of only $20 million to resume production.

Panoramic said the low restart cost is due to the mine development already in place to access existing Savannah ore and the existing mobile equipment fleet, processing plant and supporting infrastructure at Savannah being kept in good condition under care and maintenance since the suspension of mining operations in May 2016.

“The release of the Savannah Feasibility Study confirms the potential to extend the mine life of Savannah by at least ten years,” Panoramic Resources managing director Peter Harold said in the company’s announcement to the Australian Securities Exchange.

“The company’s decision to place Savannah onto care and maintenance in May 2016, thereby preserving the remaining Ore Reserve during this current cycle of weak nickel prices, will allow us to resume operations with a short lead time and minimal capital investment.

“The forecast annual metal production rates, combined with the forecast low cash costs, are capable of driving strong cash flows when the nickel price recovers to a level consistent with long-run industry forecasts.”

GWR Group strikes Wiluna MoU with Blackham Resources

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THE BOURSE WHISPERER: GWR Group Limited (ASX: GWR) has executed a non-binding Memorandum of Understanding (MoU) with Blackham Resources (ASX: BLK) with respect to the company’s Wiluna West gold project.

Blackham Resources is the owner and operator of the Matilda/Wiluna gold operation, which includes a recently re-commissioned processing and treatment plant, located 40 kilometres from the Wiluna West gold project.

The Wiluna West gold project contains JORC (2004) compliant Mineral Resources of 3,478,000 tonnes at 2.3 grams per tonne gold for an estimated 258,200 ounces of gold (at a 1g/t lower cut off), including an Indicated Resource estimate of 46,000 tonnes at 3.5g/t gold for 5,200 ounces and an Inferred Resource estimate of 3,432,000 tonnes at 2.3g/t gold for 253,000 ounces.

GWR said the MoU sets the framework the two companies to delineate, study and mine gold deposits at Wiluna West and process at Blackham’s 100 per cent-owned Wiluna gold plant.

The MoU assumes the parties will agree to either a profit sharing or ore sales arrangement for Wiluna West.

GWR will be responsible for drilling the gold deposits out to JORC (2012) compliant level with a minimum Indicated category as well as for initial sighter metallurgical testwork associated with the deposits.

Following resource definition and initial metallurgical testwork, GWR may propose the deposit to Blackham as a Proposed Qualifying Deposit, at which time, Blackham will undertake a Feasibility Study (to a minimum Pre-Feasibility Study level) to determine the economic potential of the project.

Upon completion of a positive Feasibility Study for a Qualifying Deposit, Blackham will be entitled to make an offer to GWR that schedules the mining and processing of ore from the Qualifying Deposit following receipt of necessary permits and approvals.

Blackham will be responsible managing the mining, transport and processing of ore from a Qualifying Deposits unless it elects to purchase ore from GWR delivered to the Wiluna gold plant ROM.

If mining does occur, Blackham will pay GWR either its profit share or ore sales proceeds on a monthly basis.

“The MoU with Blackham is an important step in potentially monetising the Wiluna West gold project,” GWR Group chief executive officer Craig Ferrier said in the company’s announcement to the Australian Securities Exchange.

“The commencement of operations by Blackham and their willingness to enter into the MoU provides a significant opportunity for GWR.

“The current size of the Wiluna West gold deposits does not justify the construction of a standalone processing plant, however access to the Wiluna gold plant provides GWR with a low capital option for development and the opportunity to realise value for shareholders.”

GWR indicated it has commenced a detailed review of both the Golden Monarch and Emu / Eagle deposits and is planning drilling programs that will upgrade the current JORC (2004) Inferred Resources to JORC (2012) compliant confidence level of Indicated or higher.

As part of the proposed drilling program, larger composite samples will be collected for the sighter metallurgical testwork program.

The company anticipates these programs will be undertaken in the first half of 2017.

The Golden Monarch and Emu / Eagle deposits are upon granted Mining Leases and are within areas that Clearing Permits have already been granted as part of the Wiluna West iron ore project approvals.

Email: admin@gwrgroup.com.au

Website: www.gwrgroup.com.au

Lithium Australia sets up camp in South Australia

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THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) has made its move into the South Australian lithium exploration and development sector with the lodgement of an application for ground prospective for lithium on Kangaroo Island.

Lithium Australia announced the application resulted from an ongoing strategy by the company to continue to look Australia-wide to add to its strong domestic lithium holdings throughout Western Australia, Northern Territory, and Queensland.

The company’s national research identified prospective geological setting on Kangaroo Island, leading to Exploration Licence Application 2017/00005, which covers what it considers to be the most favourable ground on the eastern side of Kangaroo Island.

The application area is located 100 kilometres southwest of Adelaide and covers an area of 27 square kilometres.

Lithium Australia’s geological focus is on the pegmatite intrusives into the Tapanappa Formation of the Kanmantoo Group where the pegmatite is predominantly feldspar-quartz-muscovite with varying amounts of topaz, tourmaline varieties elbaite, rubellite and indicolite, graphite, citrine, and apatite.

The Geological Survey of South Australia has noted lepidolite in the area.

Small Mining Claim 4400, which covers the abandoned Dudley Mine area; a collection of shallow pits and shafts in the pegmatite, all lie within the ELA.

Lithium Australia explained the Dudley Mine was worked during the 1890s and early 1900s for gem tourmaline, ceramic-grade feldspar, silica, and kaolin for brickmaking.

Previous exploration has centred on assessing the pegmatites for kaolin and gem quality tourmaline, with no exploration for lithium being recorded.

“Our broadened nationwide search is designed to de-risk the company’s lithium exploration portfolio by providing exposure to multiple lithium opportunities across multiple state jurisdictions,” Lithium Australia managing director Adrian Griffin said in the company’s announcement to the Australian Securities Exchange.

“The area we have identified on Kangaroo Island, South Australia, shows the hallmarks we are looking for.

“It is the right geological environment, has past identification of the lithium mineral suite and has some historic pegmatite mining.

“Like so many other areas across Australia, lithium has never been an exploration or production target on Kangaroo Island.

“Geographic diversity strengthens our portfolio and provides the opportunity to match the best available processing technology with the mineralisation types encountered.

“The South Australia campaign adds to Lithium Australia’s strong and expanding project suite and technological alliances.”

Email: info@lithium-au.com

Website: www.lithium-au.com

Ramelius Resources completes 12 quarter run of beating production guidance

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THE BOURSE WHISPERER: Ramelius Resources (ASX: RMS) has racked up its 12th consecutive quarter of meeting production Guidance from the company’s operations in Western Australia.

Ramelius Resources produced 31,367 ounces of gold for the December 2016 quarter, surpassing guidance of 31,000 to 35,000 ounces.

Contributing production centres were Mt Magnet with 12,674 ounces, Vivien contributing 16,524 ounces, and Kathleen Valley yielding 2,169 ounces.

The company said that although gold production is in the lower portion of the guidance range, the unit costs (AISC/oz) are expected to be higher than guidance of $1,100 per ounce (US$825/oz).

“Effectively three years of achieving production Guidance is an excellent performance by the operations team, which has no doubt provided a reliable foundation for the company going forward,” Ramelius Resources managing director Mark Zeptner said in the company’s announcement to the Australian Securities Exchange.

“Ramelius has successfully completed Kathleen Valley and commenced both Blackmans and Water Tank Hill during the quarter, and we continue the discipline of delivering into our lowest priced forward gold sales as they become due.

“On the exploration front, in line with our $15 million budget this year there has been a noticeable ramp up of activity at both Mt Magnet and Vivien, which will continue until at least the end of June.”

Email: info@rameliusresources.com.au

Website: www.rameliusresources.com.au

Gascoyne Resources takes 100 per cent of Dalgaranga

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THE BOURSE WHISPERER: Gascoyne Resources (ASX: GCY) has moved to 100 per cent-ownership of the Dalgaranga gold project by way of finalising the purchase of the minority joint venture partner’s 20 per cent interest in the Mining Lease and miscellaneous leases.

Gascoyne Resources has already advanced the Dalgaranga gold project to a Measured, Indicated and Inferred Resource of 25.7 million tonnes at 1.4 grams per tonne gold for 1.12 million ounces of contained gold including Proved and Probable Ore Reserve of 552,000 ounces of gold.

The company said drilling is ongoing on the Dalgarana project with recent results from a further 30 RC holes at Gilbeys South prospect returning assay results of:

5m at 5.2 grams per tonne gold from 40m;
14m at 1.4g/t gold from 14m;
12m at 1.7g/t gold from 18m;
10m at 1.3g/t gold from 16m;
11m at 1.4g/t gold from 23m;
10m at 1.6g/t gold from 83m;
8m at 1.9g/t gold from 110m;
9m at 1.5g/t gold from 188m;
15m at 1.1g/t gold from 147m; and
18m at 1.0 g/t gold from 148m.

“Results continue to show broad zones of strong gold mineralisation south of the existing Gilbeys open pit and resource,” Gascoyne Resources said in its ASX announcement.

“The company has been advised by the assay laboratory that results outstanding from a further 40 RC holes from the Gilbeys South area are expected to be received in the next two weeks.

“Soon after receipt of these additional results, the company expects to report a maiden Mineral Resource estimate for the Gilbeys South area.”

Email: admin@gascoyneresources.com.au

Website: www.gascoyneresources.com.au

Kin Mining PFS demonstrates Leonora to be potential high-margin gold producer

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THE BOURSE WHISPERER: Kin Mining (ASX: KIN) released the results of a recently-completed Pre-Feasibility Study (PFS) on the company’s 100 per cent-owned Leonora gold project (LGP) in Western Australia.

Kin Mining said the PFS demonstrated the LGP to have potential to generate strong cash-flows underpinned by low capital and operating costs, robust margins and a short payback period.

In conjunction with independent consultants, Kin has updated costs and produced a new mining and processing strategy based upon the 2009 PFS completed by the project’s previous owner Navigator Resources, to determine the most profitable path to gold production.

The study evaluated a heap leach/ carbon-in-leach (CIL) combination and a 100 per cent CIL processing option.

Following an optimisation process, it was determined the lowest risk pathway to developing the LGP was to adopt the processing route of a new conventional 750,000 tonne per annum CIL processing plant for the first two years, before ramping up in Year 3 to approximately 1.2 million tonnes per annum through a modest mill expansion.

Kin said the PFS concluded the LGP is technically viable and economically robust, with a forecast production profile from open pit sources commencing at the rate of 43,000 ounces of gold per annum, and rising to 52,000 ounces of gold per annum by Year 3.

Life-of-mine all-in sustaining costs (AISC) are forecast to be $1,084 per ounce with capital costs estimated to be approximately $35 million, with a capital payback period of approximately 18 months.

The initial mine life stands at approximately 6.5 years with a Production Target of 6.8 million tonnes at 1.54 grams per tonne gold for 309,000 ounces of recovered bullion.

Kin considers there to be plenty of potential to grow the mineral resource with a corresponding increase in mine life on the back of exploration at and around known deposits and advanced exploration prospects within the project area.

Having completed the PFS, Kin is looking to have a Feasibility Study (FS) on the LGP completed by the middle of 2017 with first gold production targeted for 2018.

“The study shows that the Leonora project will enjoy low up-front costs which will in turn underpin a low-risk, high-margin operation with a short payback period of 18 months,” Kin Mining chief executive Don Harper said in the company’s announcement to the Australian Securities Exchange.

“This strategy will enable us to generate early profits and accelerate production while at the same time seeking to grow mine life through an aggressive exploration program.

“The Leonora project offers a low-risk, low capital pathway to gold production in the heart of one of WA’s richest gold-mining districts.

“The completion of the PFS marks an important milestone for Kin and sets the scene for our imminent transformation into a significant Australian gold development company.”

Email: info@kinmining.com.au

Website: www.kinmining.com.au

Lithium Australia designates Sileach pilot plant designer

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THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) declared it had advanced the commercialisation of the company’s revolutionary Sileach process for the recovery of lithium from silicates.

The advancement announced by Lithium Australia came in the form of its commitment to the Sileach process engineering design with an engineering study being awarded to CPC Project Design Pty Ltd.

The brief for CPC is to design a plant capable of an output of 2,500 tonnes per annum of lithium carbonate with a scheduled completion of April 2017 along with capital cost estimates, operating cost estimates and comparative logistic costs of a number of Western Australian sites.

Lithium Australia has maintained Port Hedland to be a location of high priority to provide it with the greatest flexibility in servicing its requirements under the terms of the company’s commercialisation agreement with Pilbara Minerals (ASX: PLS).

Lithium Australia is hopeful a successful large-scale pilot testing may lead to a 50/50 joint venture with Pilbara Minerals to process spodumene from Pilbara Minerals’ Pilgangoora deposit, which is located only 120 kilometres south of Port Hedland.

Lithium Australia and ANSTO have scheduled further pilot testing later this month and in January 2017 to process spodumene concentrates from Pilbara Minerals’ Pilgangoora deposit.

Work has commenced at Murdoch University, funded by a research grant from the Minerals Research Institute of Western Australia that will focus on impurity deportment, and maximising the value of by-product credits.

“The progression from the first laboratory tests, to awarding the engineering contract has all been encapsulated in 2016, the most progressive year in Lithium Australia’s history,” Lithium Australia managing director Adrian Griffin said in the company’s announcement to the Australian Securities Exchange.

“The commitment of our partners at ANSTO Minerals and Murdoch University, and support by grants from the federal and state governments has been paramount in this development.

“The decision to award the engineering contract to CPC Engineering retains much of the financial and intellectual property benefit in Western Australia, and maintains our scheduled target for commercialisation of the Sileach process.”

Email: info@lithium-au.com

Website: www.lithium-au.com