Blackham Resources completes first gold pour at Matilda

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THE BOURSE WHISPERER: Blackham Resources (ASX: BLK) completed the first gold pour at the company’s 5.1 million ounce Matilda gold project near Wiluna in Western Australia.

The milestone was achieved 16 months after the company completed the Orion funding deal, during which time the company completed a preliminary and a definitive feasibility study, obtained mining and environmental approvals, appointed contractors to commence mining in both the Matilda open pits and the Golden Age underground, installed and commissioned a new diesel power station, and refurbished and commissioned Stage 1 of the Wiluna gold project.

“We are extremely pleased to be Western Australia’s newest gold producer and are delighted at reaching the milestone in just 16 months from completing our funding deal with Orion Mine Finance,” Blackham Resources director and chief operations officer Alan Thom said in the company’s announcement to the Australian Securities Exchange.

Blackham said plant optimisation of both throughput and recovery are now underway with a view to maximising plant performance.

The mining already carried out from the open pits and underground has contributed to stockpiles greater than five weeks mill feed.

Having completed the initial gold pour at the project, Blackham indicated it focus will now be on ramping up to commercial production.

After quickly progressing to Stage 1 gold production, Blackham is determined to fast track the Stage 2 expansion study aimed at increasing production to 175,000 to 230,000 ounces per annum.

Email: info@blackhamresources.com.au

Website: www.blackhamresources.com.au

Cassini Resources and OZ Minerals get to work at West Musgrave

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THE BOURSE WHISPERER: Cassini Resources (ASX: CZI) has completed the final Joint Venture Agreement with OZ Minerals Limited (ASX: OZL) in regards to the development of the company’s West Musgrave project (WMP), located in Western Australia.

OZ Minerals may earn up to a 70 per cent interest in the project by sole funding a minimum of $36million on development and exploration.

The latest agreement covers OZ Minerals’ staged Earn-in and Joint Venture of the WMP by funding continued studies on Nebo-Babel to progress it to a Decision to Mine, as well as regional exploration spend of up to $8 million to assist in identifying additional value adding opportunities.

OZ Minerals and Cassini Resources, have launched a $3 million scoping study of the West Musgrave copper and nickel deposits in West Australia.

According to an announcement from OZ Minerals, the scoping study will set out both the appropriate size of any future mine along with the optimal infrastructure solutions to undertake the project and is expected to be completed in September 2017.

“Following on from our initial announcement in August we have now entered into a formal joint-venture agreement with Cassini Resources and will begin to map out how to best develop this high-class resource,” OZ Minerals CEO Andrew Cole said in the company’s announcement to the Australian Securities Exchange.

“A key part of our initial scoping study is the development of a geometallurgical model for the Nebo-Babel deposit which will determine the scale of future mining operations to extract the best overall value.

“The work will also include options around infrastructure for the site, drawing on OZ Minerals’ remote mining knowledge and expertise.

“The focus of both JV partners is to clearly set out in the scoping study the economic rationale for this project and how it can be built and operated.”

Email: info@ozminerals.com

Website: www.ozminerals.com

Sheffield Resources improves Thunderbird recoveries and product specs

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THE BOURSE WHISPERER: Sheffield Resources (ASX: SFX) announced the completion of metallurgical test work conducted for the Bankable Feasibility Study (BFS) on the company’s 100 per cent-owned Thunderbird mineral sands project, near Derby in northern Western Australia.

The BFS is on schedule for release in early 2017.

The metallurgical test work was carried out on a 40-tonne BFS bulk sample, representative of the projects’ initial 6-7 years of feed.

Sheffield explained the work has enabled the process flowsheet to be optimised and resulted in high quality final products with optimisation of the wet concentration and concentrate upgrade stages resulted in further improved recoveries for the ilmenite and zircon products.

“In addition to confirming a robust process design, the test work has demonstrated further improvements to the ilmenite product quality and improved recoveries for both zircon and ilmenite products,” Sheffield Resources managing director Bruce McFadzean said in the company’s announcement to the Australian Securities Exchange.
 
“Off-take discussions with leading global ilmenite and zircon consumers have commenced with samples dispatched for initial customer testing.

“Thunderbird ilmenite, with its low chrome levels and high acid solubility will be one of the highest grade sulphate feedstocks available globally and will likely displace other lower quality ilmenites in the market.

“The high-grade ilmenite with its low alkali levels and pre-reduced state will likely produce high quality chloride grade or sulphate grade slag with a high purity pig iron co-product.

“Signs of improving market conditions are beginning to emerge, particularly for sulphate ilmenite, where prices have started rising after four years of decline.

“Zircon prices have stabilised as mines are closed and global inventories start to unwind. Initial off-take discussions have generated strong interest from consumers globally and we intend to further progress discussions in parallel with evaluating funding options and potential partnering opportunities as we finalise the BFS.”

The high-quality final product specifications achieved from the BFS mineral separation process flowsheet and Low Temperature Roast (LTR) test work include:

Premium zircon
Production of high-quality ceramic grade zircon of greater than 66 per cent zirconium dioxide (ZrO2) was achieved.

LTR ilmenite
Production of high-grade titanium dioxide (TiO2) with low alkalis and chromium suitable for:
Feedstock for sulphate pigment plants – 56.1 per cent TiO2;
Production of chloride grade and sulphate grade slag – 88% TiO2; and
Potential blended feedstock for chloride processing as well as LTR ilmenite able to be produced at higher grades (57-59% TiO2) for this potential market.

HiTi 88
A product suited to the flux cored wire welding market, production of titanium sponge, or blended material for processing via the chloride process.

Zircon concentrate
A zircon rich concentrate (44% ZrO2, 20% TiO2) suited to zirconium chemicals industry.

Titanomagnetite
A co-product from the LTR process suited to furnace protection in the steel feed industry.
Sheffield indicated appraisal of this co-product will be undertaken to determine its marketability and value as a contributor to the revenue stream.

Email: info@sheffieldresources.com.au

Website: www.sheffieldresources.com.au

Lithium Australia begins continuous lithium carbonate production

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THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) commenced piloting for continuous production of lithium carbonate.

The pilot production is part of the second stage of the company’s new test program at the Sileach pilot plant in Sydney, operated by ANSTO Minerals (a division of the Australian Nuclear Science and Technology Organisation).

Lithium Australia’s step-up to continuous lithium carbonate production follows the initial pilot scale extraction of lithium from pegmatite ore sourced from Lepidolite Hill, located 15 kilometres south of Coolgardie in Western Australia.

The company said the second stage of pilot testing will recover lithium carbonate, and potassium salts from solutions generated during the previous pilot plant test.

Lithium carbonate is used in lithium-ion batteries and potassium salts, which are valuable by-products of the process, are used as a major component of fertiliser.

“Pilot testing the company’s 100 per cent-owned Sileach process at the ANSTO Minerals has been very successful to date, extracting over 95 per cent of the lithium,” Lithium Australia managing director Adrian Griffin said in the company’s announcement to the Australian Securities Exchange.

“We anticipate very good results for the carbonate production step as the initial solutions are largely devoid of impurities.”

Website: www.lithium-au.com

Pilbara Minerals to acquire Lynas Find Lithium Project

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THE BOURSE WHISPERER: Pilbara Minerals (ASX: PLS) strengthened its position in the Pilgangoora lithium district of Western Australia, by entering into a binding agreement with next door neighbours, Dakota Minerals (ASX: DKO) to acquire 100 per cent of the adjoining Lynas Find lithium project.

Under the agreement, Pilbara will acquire the core Lynas Find granted tenements package for $4 million, which includes the newly-minted maiden Indicated and Inferred Mineral Resource, Dakota reported to the market this week of:

7.3 million tonnes at 1.25 per cent lithium oxide (Li2O), 85ppm tantalum pentoxide (Ta2O5) and 0.99 per cent iron (III) oxide (Fe2O3).

Pilbara will be required to make an additional $1 million payment on the granting of a term extension on one of these core tenements.

Pilbara has also agreed to pay a further $750,000 each, for four additional Pilgangoora exploration tenements currently under application by Dakota Minerals.

Pilbara said this strategic acquisition will further expand the company’s resource inventory at the 100 per cent-owned Pilgangoora lithium-tantalum project, which already comprises Indicated and Inferred Mineral Resources totalling:

128.6 million tonnes at 1.22 per cent Li2O, 138ppm Ta2O5 and 0.63 per cent Fe2O3.

“This further consolidates our lithium footprint in the Pilbara region and reinforces Pilgangoora’s position as the dominant project in this exciting emerging lithium province,” Pilbara Minerals managing director and CEO Ken Brinsden said in the company’s announcement to the Australian Securities Exchange.

“The acquisition provides the potential for additional new high-grade satellite ore feed to the central processing plant at Pilgangoora, based on the initial Mineral Resource for the Lynas Find project reported this week.

“Importantly, these additional tonnes are located close to surface and are at an attractive average grade, which would enhance our overall resource and future reserve inventory.

“The Dakota tenement package also contains numerous prospective new areas for lithium exploration, helping to strengthen our longer term growth pipeline.

“Importantly, this deal also gives us access to a strategic land-holding in close proximity to the existing Pilgangoora resource area, which may be suitable for the location of key infrastructure components for the Pilgangoora project – enhancing our development plan.”

Website: www.pilbaraminerals.com.au

Clean TeQ encouraged by Syerston PFS results

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THE BOURSE WHISPERER: Clean TeQ Holdings (ASX: CLQ) announced the results of a recently-completed Pre-Feasibility Study (PFS) on the company’s Syerston nickel & cobalt project in New South Wales.

Clean TeQ declared the PFS has demonstrated Syerston has the potential to become a leading global supplier of nickel and cobalt sulphate to the lithium-ion battery industry.

The project also hosts scandium by-product credits, which are considered to provide potential for substantial economic upside.

The PFS involved a project flow sheet designed to produce high purity nickel sulphate and cobalt sulphate products specifically targeted at the fast-growing lithium ion battery (LiB) market.

Clean Teq already has non-binding offtake Memorandums of Understanding (MoUs) in place with key LiB industry customers and is in further discussions in relation to offtake contracts.

The PFS assessed the economics of an operation to process 2.5 million tonnes per annum of ore over an initial 20-year period with existing Reserves available for up to 19-years of additional mine life.

From this average annual production is expected of 18,730 tonnes per annum of contained nickel metal equivalent and 3,222 tonnes per annum of contained cobalt metal equivalent in years three through twenty of operation.

Dollar-wise the study determined post-tax NPV of US$891 million ($1,187 million) and 25 per cent post-tax IRR, assuming long term average nickel and cobalt price forecasts of US$7.50 per pound and US$12 per pound respectively, although Clean TeQ indicated sulphate product premiums represent further upside pricing opportunity.

Capital costs of US$680 million ($906 million), including US$62M (10 per cent) contingency with average C1 operating cash cost in years three to 20 of US$2.96 per pound nickel, US$0.89 per pound nickel after cobalt by-product credits or negative US$0.76 per pound nickel after cobalt and scandium by-product credits.

The inclusion of the scandium oxide (Sc2O3) by-product production of 50 tonnes per annum at US$1,500 per kilogram increases the post-tax NPV to US$1,233 million ($1,645 million) and the post-tax IRR to 30 per cent.

“The coming decades will see enormous technological disruption in global energy storage and transportation markets,” Clean TeQ co-chairman Robert Friedland said in the company’s announcement to the Australian Securities Exchange.

“But this technology revolution is interdependent – it requires the rapid development of new and reliable raw material supply chains to service these fast-growing markets.

“At its heart, Syerston’s unique mineral resource, when combined with Clean TeQ’s proprietary ion exchange extraction and purification processing platform, has the potential to service a significant portion of global demand for cathode raw material into the lithium-ion battery industry, as well as providing scandium for the next generation of light-weight aluminum alloys for transportation markets.” 

The study ascertained the Syerston project to be a catalyst for regional investment and employment opportunities in central New South Wales, with peak construction workforce estimated at 850 people, and steady-state operational workforce at 335 people.

There are already key work programs, infrastructure and permits in place, while the project is located adjacent to existing road and rail line with water allocation secured and EIS approved.

Development Consent for a 2.5 million tonnes per annum operation has been previously granted.

Clean TeQ indicated it already has a Bankable Feasibility Study underway to progress engineering and design and confirm project economics.

“The PFS has demonstrated the potential for an extremely robust project, producing metals at a scale, and in a form that are becoming increasingly critical in energy and transport supply chains,” Clean TeQ CEO Sam Riggall explained.

“Market interest in the project has been very strong, and we look forward to progressively de-risking the development plan and working with potential customers and strategic partners in these supply chains.”

Email: info@cleanteq.com

Website: www.cleanteq.com

Windward Resources says YES to Independence Group takeover offer

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THE BOURSE WHISPERER: Windward Resources (ASX: WIN) has acquiesced to a takeover offer from Independence Group (ASX: IGO).

The two companies have entered into a Bid Implementation Agreement (BIA), the upshot of which will result in Independence (or a subsidiary of Independence) making an off-market takeover offer to acquire all of the issued shares of Windward.

Under the terms of the Offer, Windward shareholders will receive 19 cents cash per Windward share, a 46 per cent premium on the securities’ last trade of 13 cents.

The offer values Windward at approximately $20.5 million.

“Windward’s Board of Directors unanimously recommends that shareholders accept the offer, in the absence of a superior proposal,” Windward Resources said in its ASX announcement.

“Each Windward director has indicated they intend to accept the Offer in respect of Windward shares they own or control, in the absence of a superior proposal.”

The man with the big say in proceedings, Windward’s major shareholder, Mark Creasy, who controls entities holding a 27.44 per cent interest in the company, has given his approval to the deal with the proviso being the vote at the upcoming EGM decides against the recently announced Eastern Goldfields (ASX: EGS) transaction, which would have delivered a $2.2 million share placement at 12 cents per share to EGS.

“The Board of Windward consider the offer from Independence to be superior to the Eastern Goldfields transaction and at the Extraordinary General Meeting currently planned for 7 November 2016 will recommend shareholders vote against the Eastern Goldfields transaction,” Windward said.

Email: admin@winres.com.au

Website: www.winres.com.au

Metalicity picks up Western Australia Cobalt Project

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THE BOURSE WHISPERER: Metalicity (ASX: MCT) has lodged three exploration license applications (ELAs) covering an area of 210 square kilometres it considers to be prospective for cobalt mineralisation.

The applications are located in an area recently identified as a new cobalt district in the Yerrida Basin of the Northern Goldfields of Western Australia.

The Kyarra cobalt project (E51/1755, E51/1756 and E53/1894) lies within the Proterozoic Yerrida Basin on the northern margin of the Yilgarn Craton.

The project adjoins the Tabac cobalt-gold project, where intersections of cobalt have been reported including 80m at 0.77 per cent cobalt.

Metalicity said the location and stratigraphic position of the observed cobalt anomalism has been interpreted by others to have similarities to the mineralisation model of the copper-cobalt deposits of the Zambian Copper Belt.

Widespread cobalt anomalism exists across the Yerrida basin in historic surface rock chip samples, rotary air blast (RAB) drilling between 20 metre to 40m depth, and in diamond core drilling to 388m.

The company said the extent of the cobalt anomalism highlights potential for a cobalt mineralising system.

Within the Kyarra cobalt project area anomalous historical results have been reported including up to 0.64 per cent cobalt from surface samples and 2m at 612 ppm cobalt from drilling, across an initial strike extent of approximately 25 kilometres.

The Kyarra Cobalt project is well located in terms of access and infrastructure for exploration and mining, being located on the Goldfields Highway 40km west of Wiluna.

Metalicity claimed the three ELAs provide it with a dominant land holding in this newly identified cobalt district.

The company now has desktop and field exploration work underway with compilation of all historical exploration data, acquisition and re-processing of relevant geophysical data, as well as geochemical sampling and field surveys to identify priority areas for drilling once the tenements are granted, which is expected to be in the first half of 2017.

“The Yeririda Basin is interpreted to have similarities to the copper-cobalt deposits of the Zambian Copper Belt and widespread cobalt anomalism exists at Kyarra located in a newly identified cobalt district,” Metalicity managing director Matt Gauci said in the company’s announcement to the Australian Securities Exchange.

“The existing high sovereign risk supply of cobalt and lithium-ion batteries driven demand, means Metalicity is highly leveraged to exploration success at Kyarra.

“The project is also complementary with our portfolio of lithium and graphite projects also located in WA.”

Website: www.metalicity.com.au

Lithium Australia completes successful trial run of Sileach process

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THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) has commenced pilot plant testing of the company’s Sileach process for the recovery of lithium from silicates.

The testing was conducted at ANSTO Minerals’ (a division of the Australian Nuclear Science and Technology Organisation) Lucas Heights testing facility, located on the outskirts of Sydney, New South Wales.

Lithium Australia explained that hot commissioning of the plant was undertaken over a one day run, the nature of leach liquors and residues was evaluated and final adjustments made to plant components in preparation for continuous operation.

The pilot plant was fed continuously for six days, treating ore from LIT’s Lepidolite Hill deposit in Western Australia, using the Sileach process.

Approximately 650 kilograms of lepidolite ore was processed at an average throughput of 6kg/h.

The pilot plant design consisted of leaching and impurity removal circuits, based on test work conducted by ANSTO Minerals on similar ore to that processed during the continuous pilot plant run.

LIT said the campaign produced a purified lithium-containing liquor, devoid of impurities, which will be processed through to high-purity lithium carbonate in a second pilot campaign in the near future.

Extraction of lithium in the Sileach process exceeded 95 per cent in the leach circuit, which LIT declared to have validated both the overall extraction and accelerated rate of extraction of lithium achieved in the laboratory test work program.

The company went on to explain that the performance in the impurity removal circuits was comparable with the laboratory test work program, producing a liquor suitable for further processing.

“Plant performance could not have been better,” Lithium Australia managing director Adrian Griffin said in the company’s announcement to the Australian Securities Exchange.

“The results show that exceptional lithium extractions can be achieved without the need for fine grinding, or the production of clean concentrates.

“The material processed was not subjected to pre-concentration but still achieved outstanding performance with minimal feed preparation.

“These are key parameters for processing at low cost. Lower-grade spodumene concentrates (about 4.5 per cent Li2O) from Pilbara Minerals’ Pilgangoora project, will be processed in one of the subsequent test runs.

“We are intentionally concentrating on the lower-grade, hard rock products, from which no other processes can recover lithium commercially.

“Sileach provides significant processing advantages.

“Successful processing of spodumene from Pilgangoora is the first step of our commercialisation agreement with Pilbara Minerals, aimed at establishing a lithium chemical processing plant in Port Hedland.”

Email: info@lithium-au.com

Website: www.lithium-au.com

Tyranna Resources and WPG Resources resolve Western Gawler Craton JV dispute

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THE BOURSE WHISPERER: Tyranna Resources (ASX: TYX) has resolved a dispute with WPG Resources (ASX: WPG) and Coombedown Resources Pty Ltd (CBD) in regards to the Western Gawler Craton Joint Venture (WGCJV).

The dispute had arisen regarding the northern portion of Exploration Licence 5661, which surrounds the Challenger gold mine, which was contested by Tyranna as to whether it formed part of the WGCJV.

Tyranna is the manager of the WGCJV with a 66 per cent interest and WPG has a 34 per cent interest.

This JV was for gold only, however as part of a binding term sheet between Tyranna and WPG, Tyranna will now have 100 per cent rights to other minerals on the WGCJV tenements.

As part of the binding term sheet, Tyranna has dropped its claim to the northern portion of EL 5661 (including ML 6457) as being part of the WGCJV.

In return, WPG has agreed that ownership of the tenements subject to the WGCJV will be transferred to Tyranna and its subsidiary Half Moon Pty Ltd (HMP) and that a new joint venture will be formed between WPG and Tyranna and their subsidiaries.

The interests of the two parties in the new joint venture ab initio will be exactly the same as under the old joint venture, and there will be no change to the dilution provisions.

As with the old JV, Tyranna will be manager of the new JV venture.

Tyranna highlighted the importance of the agreement now allowing it 100 per cent rights to explore for minerals other than gold, adding that elevated base metals (including nickel, copper, PGE’s) have been recorded in RAB drilling and calcrete sampling at the Aristarchus prospect and at the Woomera Tank/South Hilga prospect areas.

Tyranna indicated it would now prepare a strategy to explore for base metals in the target areas without diverting efforts from its current gold drilling program at Jumbuck.

The company explained that the acquisition of the rights to all other minerals on the WGCJV adds an additional 2,500 square kilometres to its current 100 per cent-owned tenement holding of 5,700sqkm.

“This agreement frees Tyranna to control its own destiny by securing ownership of the WGCJV tenements,” Tyranna Resources managing director Bruno Seneque said in the company’s announcement to the Australian Securities Exchange.

“This ownership gives us the ability to explore for other minerals on the WGCJV tenements and creates a tremendous opportunity to now devise a holistic exploration strategy to maximise all of our tenements.

“Our current drilling program for gold is progressing well with results due in mid to late October.

“We are firm believers in the Jumbuck region, and are the leading junior explorer surrounding the one million ounce Challenger gold mine.”

Email: info@tyrannaresources.com

Website: www.tyrannaresources.com