Lincoln Minerals granted Mineral Lease for Kookaburra Gully graphite project

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THE BOURSE WHISPERER: Lincoln Minerals (ASX: LML) has been granted a Mineral Lease by the South Australian Government for the company’s wholly-owned Kookaburra Gully graphite project on South Australia’s Eyre Peninsula.

Lincoln has been granted ML 6460, through its wholly-owned subsidiary, Australian Graphite Pty Limited, for a period of 21 years commencing on 3 June 2016.

“Kookaburra Gully is Australia’s highest grade flake graphite deposit and in the world’s Top 10 deposits based on grade,” Lincoln Minerals chairman Yubo Jin said in the company’s announcement to the Australian Securities Exchange.

“The grant of ML 6460 is the key pivot point and milestone to ensure delivery of Lincoln’s transformation now from project explorer and developer to an emerging graphite producer, in an industry at the forefront of the growing global green energy market.

“It is also the de-risking step-change awaited by our potential project financiers and off-take customers to now elevate mine construction financing and operating negotiations to a level where commercial transaction outcomes can be achieved.

“Now that the Mineral Lease has been granted, Kookaburra Gully’s Program for Environment Protection and Rehabilitation (PEPR) can be finalised.

“A geotechnical and resource diamond drilling program, soil engineering test pits and establishment of a groundwater and surface water monitoring network were completed at the proposed mine site early in May this year and further engineering studies are in progress.

“Once the PEPR is approved, Lincoln will be in a position to commit to and commence project development at Kookaburra Gully.”

The Kookaburra Gully flake graphite deposit extends to at least 125m depth, remains open at depth and along strike.

The deposit hosts total Indicated and Inferred Mineral Resources of:

2.20 million tonnes at 15.1 per cent Total Graphitic Carbon (TGC).

It also abuts the Lincoln-owned Koppio graphite mine, which as a second potential source for the Kookaburra Gully mine, adds an Inferred Mineral Resource of 1.85 million tonnes at a grade of 9.8 per cent TGC into the overall project’s mining potential.

Lincoln Minerals explained it is targeting an output of up to 40,000 tonnes per annum of high-grade graphite concentrate from Kookaburra Gully for an initial mine life of at least seven years.

Email: info@lincolnminerals.com.au

Website: www.lincolnminerals.com.au

Metalicity signs Chinese Mou to raise $3M

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THE BOURSE WHISPERER: Metalicity (ASX: MCT) has struck a non‐binding Memorandum of Understanding (MoU) and made a placement to raise approx. $3 million with members of the China Battery Association.

The MoU is with China New United Shanghai Metal Resources Co, Ltd (Shanghai Metals), which Metalicity said will advance the company’s lithium exploration and business development strategy plans.

The MoU will jointly fund, develop and acquire Lithium projects and will also off‐take a minimum of 100,000 tonnes per annum and up to 150,000 tonees per annum of lithium spodumene concentrate produced from Metalicity’s existing or future projects.

The controllers of Shanghai Metals have agreed to subscribe for shares in Metalicity by way of a placement for approximately $3M at seven cents per share.

Metalicity has already banked $2.7 million of the proceeds with the remaining funds expected to be banked on 6 June 2016.

Metalicity described Shanghai Metals to be an emerging lithium Industry participant whose strategy is to build on its interests in the lithium industry value chain for the ultimate production of lithium carbonate and cathodes.

The company said its new partners see its lithium exploration and business development strategy as an important step in achieving this goal.

Metalicity is well advanced into an accelerated $1 million exploration program including field exploration in the Pilgangoora, Greenbushes and Lake Cowan lithium districts.

Comprising a comprehensive and systematic sampling and mapping across all projects areas, the company outlined the key focus of this phase will be the central outcropping pegmatites at Stannum, which forms part of the Pilgangoora South project.

This work is generating drill targets for a maiden drilling program planned to commence at Stannum as soon as licenses are granted and approvals obtained.

“The MoU and Placement with a key China Battery Association Member further accelerates this plan with an additional $3m of funds now banked and applied to this strategy,” Metalicity managing director Matt Gauci said in the company’s announcement to the Australian Securities Exchange.

Website: www.metalicity.com.au

Lithium Australia granted Ravensthorpe work permits

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THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) has been granted approval by Western Australia’s Department of Mines and Petroleum for initial preparatory site works on the company’s wholly-owned Ravensthorpe project, west of Esperance in the State’s south.

The company said the approval to clear native vegetation is the forerunner to awaited approvals for its proposed maiden drill program for Ravensthorpe.

The exploration licence is situated 10 kilometres west of the Mt Cattlin lithium mine and extends along 20km of prospective strike.

Lithium Australia has thirty-five drill holes planned within the first target zone which is located 18km to the south-west of Mt Cattlin and includes the Horseshoe prospect.

LIT claims to have had some exploration success in the region, focused on lithium bearing pegmatite swarms extending to the southwest of the neighbouring development that is the subject of a $700 million merger between Galaxy Resources (ASX: GXY) and General Mining Corporation (ASX: GMM).

The company said the Ravensthorpe project hosts abundant lithium pegmatites, which like the nearby Mt Cattlin, contain both lithium mica and spodumene. 

“The abundance of lithium pegmatites at Ravensthorpe, and nearby lithium production, clearly places Lithium Australia at the focus of one of the most promising lithium centres in the world,” Lithium Australia managing director Adrian Griffin said in the company’s announcement to the Australian Securities Exchange.

“The recent corporate activity in this commodity is a positive testament to the value and upside of the regional lithium potential and the new approvals contribute to our ability to capitalise on the opportunities available in the area.”

Lithium Australia has also had bulk sampling permits granted to remove up to 5,000 tonnes of material from the Ravensthorpe exploration licence to be used for bulk sampling and metallurgical test programs employing the company’s 100 per cent-owned Sileach process.

This process has the capability of recovering lithium from all lithium silicates including spodumene.

Email: info@lithium-au.com

Website: www.lithium-au.com

Doray Minerals produces first gold and concentrates at Deflector

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THE BOURSE WHISPERER: Doray Minerals (ASX: DRM) announced the first gold pour and commencement of concentrate production at the company’s Deflector gold project in Western Australia.

The announcement comes approximately 14 months after Doray completed its takeover of Mutiny Gold in March 2015.

The company said construction of a new, purpose-built 480,000 tonnes per annum processing plant recently achieved Practical Completion, on schedule.

Mineralised material is now being fed through the plant, resulting in production of the first gold bars from the gravity circuit.

Commissioning of milling, gravity and flotation circuits is ongoing with production of concentrate also commenced.

Ramp-up to commercial production is anticipated over the next two months.

Doray said it expects the first shipment of gold-copper-silver concentrate in late June 2016.

Open pit mining is progressing and the company’s underground contractor is on its way to prepare to establish the portal and commence underground development, scheduled for June 2016.

“In the 14 months or so since we completed the takeover of Mutiny Gold, we have funded, permitted and built a new 480,000 tonne per annum processing plant, a new 150-person accommodation village and all other associated mine infrastructure, and commenced open pit mining at Deflector,” Doray Minerals managing director Allan Kelly said in the company’s announcement to the Australian Securities Exchange.

“I’m now very pleased to be able to announce the commencement of gold production at Deflector, the second high-grade gold mine we have funded, permitted, built and commissioned in just under four years.”

Website: www.dorayminerals.com.au

Breaker sells of Mt Gill and Kurrajong tenement and completes $2.1M raising

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THE BOURSE WHISPERER: Breaker Resources (ASX: BRB) has sold its Mt Gill and Kurrajong project tenements to Gold Road Resources (ASX: GOR) and its South Yamarna joint venture partner Sumitomo Metal Mining Oceania Pty Ltd.

The total consideration for the transaction is $50,000 cash with Breaker receiving a further one million in the event of 500,000 ounces in a JORC-compliant Resource being defined across any of the three sale tenements.

In its announcement to the ASX, Breaker said the sale would enable the company to increase its current focus on its recent gold discovery at the Lake Roe project.

In a separate announcement Breaker advised it had completed a $2.1 million raising, the funds from which would be dedicated to Lake Roe as well as its Duketon North gold project.

A 9,000 metre aircore drill program at Lake Roe is currently in progress in preparation for reverse circulation (RC) drilling.

This drilling is situated directly north of high-grade primary gold lodes Breaker discovered by recent RC drilling and is expected to be completed within the next two weeks.

The company said a maiden aircore drill program at the Duketon North project is planned to start in late June 2016.

Email: breaker@breakerresources.com.au

Website: www.breakerresources.com.au

Galaxy Resources and General Mining form big lithium merger

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THE BOURSE WHISPERER: Galaxy Resources (ASX: GXY) and General Mining Corporation (ASX: GMM) have entered into a definitive Takeover Bid Implementation Agreement to merge the two companies.

Under the agreement Galaxy will acquire all of the issued shares of General Mining that it does not already own in a share based transaction by way of an off-market takeover offer.

General Mining shareholders will receive 1.65 new Galaxy shares for every one General Mining share they hold.

The Galaxy proposal is unanimously recommended by the directors of General Mining who have also agreed to accept in respect of all shares they control, in each case in the absence of a superior offer.

The companies believe the merged entity will create a diversified, global lithium producer well positioned for continued project expansion and development and further opportunities, including existing production and a pipeline of market leading development projects.

The new entity will possess a wholly-owned and geographically diversified portfolio of hard rock and brine based lithium assets across multiple jurisdictions, including:

Maiden spodumene and tantalum production in third quarter 2016 at Mt Cattlin, Western Australia, generating and growing cash flow;

A flagship world-scale Sal De Vida project in Argentina with superior brine chemistry and expansion potential; and

The James Bay project in Canada with potential to be a future supplier into the rapidly growing North American market.

Martin Rowley, chairman of Galaxy, will remain as chairman of the Board of the combined group, while Anthony Tse, managing director of Galaxy will remain as MD.

“We are extremely pleased that the joint venture arrangement we entered into with General Mining in 2015 has resulted in a merger proposal that makes sound strategic sense and, importantly, gives the shareholders of both Galaxy and General Mining the opportunity to participate in the upside of a merged lithium company of global significance,” Galaxy chairman Martin Rowley said in the announcement to the ASX.

“The arrangement struck between Galaxy and General Mining has enabled the re-commissioning of the Mt Cattlin mine, drawing on General Mining’s financial and technical resources, with Mt Cattlin now poised to deliver first production of spodumene to contracted buyers in the third quarter of calendar 2016.

“We are confident that merging the companies will result in significant benefits to both sets of shareholders with the opportunity for a re-rating for the expanded shareholder base from the enhanced equity and capital markets profile.”

Michael Fotios, executive chairman of General Mining, will be offered a position as a director on the Board of the combined group.

“General Mining and Galaxy are an excellent and natural fit, given existing joint venture owned assets, complementary project development and operational expertise, as well as aligned, success driven cultures,” Fotios added.

“Both companies have successful track records of creating substantial value for shareholders and, together, we will retain this focus.

“Our ability to capture future growth opportunities in the rapidly evolving lithium market will be significantly enhanced by this merger.”

Carpentaria Exploration signs up Chinese customer for Hawsons iron ore

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THE BOURSE WHISPERER: Carpentaria Exploration (ASX: CAP) has signed a non-binding letter of intent (LOI) with independent commodities trading house Gunvor Singapore for the purchase of one million tonnes per annum (mtpa) of Supergrade from the company’s 62 per cent-owned Hawsons iron project.

Carpentaria explained the new LOI targets supply to smaller Chinese steel mills.

It also follows recent LOIs the company has signed with blue-chip Japanese trading house Mitsubishi Corporation RtM and Middle Eastern DR pellet maker Bahrain Steel, resulting in 50 per cent of initial planned production from the project being assigned to high-value direct reduction (DR) markets in the Middle East and to blast furnace markets in China and the Asia-Pacific.

Under the LOI, the parties intend to develop binding offtake arrangements, initially for a 10-year term, with first supply targeted in 2020.

“The early success of the company’s international marketing campaign highlights that the product is attractive across key markets, buyers are willing to support new independent supply and that future demand will be strong,” Carpentaria Exploration managing director Quentin Hill said in the company’s announcement to the Australian Securities Exchange.

“This latest LOI with Gunvor, another international blue-chip company, is another step in project development, product acceptance and investment attraction.

“The addition of this LOI, our first focused on the Chinese market, demonstrates the clear commercial advantages that Hawsons product quality and the location close to key markets provides.

“It also demonstrates that Hawsons is ideally suited to meet international demand for high-grade and DR pellet feed and pellets that is forecast to increase over time as the global steel industry shifts focus to higher productivity and cleaner, more efficient operations.”

Email: info@capex.net.au

Website: www.capex.net.au

Kin Mining completes $1.68M raising

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THE BOURSE WHISPERER: Kin Mining (ASX: KIN) has completed an over-subscribed share placement to raise $1.68 million.

Under the Placement, the company will issue a total of 12 million new shares to sophisticated and professional investors at a price of 14 cents each.

The raising follows the company’s recent strategy of promoting growth and development for its Leonora gold project in Western Australia.

Kin Mining said the funds raised will be used to advance and progress the company’s projects including:

Completion of phase 2 drilling at Merton’s Reward T1 and T2 lode targets to further confirm the correlation of the new geological model with the objectives being to increase the resource base at Merton’s Reward;

Preparation of a revised resource calculation based upon the new geological model incorporating all the current and proposed drilling scheduled in early June;

Completion of a strategic plan to implement operational improvements with the objective to fast track the scheduling of the Feasibility Study once the revised resource modelling has been completed; and

To begin mining of the Lewis Prospect East Pit to extract 15,000 tonnes of ore for leaching and test the results of this process.

Kin Mining said it anticipated to be updating shareholders in the coming weeks in relation to the phase 2 drilling program, as well as operational improvements to fast track the scheduling of the feasibility study.

News is also expected on development of the mining and leaching process at Lewis and progress on other projects.

“The company has been very pleased and thankful for the overwhelming support by the investor response to the placement which is a testament to both the quality of the projects and our development strategy,” Kin Mining managing director Trevor Dixon said in the company’s announcement to the Australian Securities Exchange.

“We have a strong and dedicated group of people who now have financial backing to drive forward with developing these projects and propel the company to deliver its objectives in becoming a sustainable mining company.”

Email: info@kinmining.com.au

Website: www.kinmining.com.au

Lithium Australia earns 25% of Electra JV

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THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) announced it has earned a 25 per cent stake of the Electra joint Venture in Mexico with TSX-listed Alix Resources (TSX: AIX).

Lithium Australia indicated work was ongoing at the Electra project to explore and develop projected extensions of the Sonora lithium clay deposit at the project.

In its announcement to the ASX Lithium Australia said the two companies acknowledge they have a challenge in bringing low-grade large deposits like Sonora into production identifying what they believe to be the key to commercialisation.

This includes:
Low energy process flowsheets; and
Potential to beneficiate the ore.

The JV believe lithium clay deposits present them with a challenge, but the application of the best available technology will be key to commercialising these, adding the application of advanced exploration techniques will accelerate resource assessment.

Adoption of mineral separation technology from other industries may allow the production of a beneficiated product, to reduce capital and operating costs.

“At Lithium Australia we recognize the value of innovation in developing process solutions,” Lithium Australia managing director Adrian Griffin said in the company’s announcement to the Australian Securities Exchange.

“Our success in developing the Sileach process for spodumene is a great example and we strongly believe we can develop a processing strategy to enhance the commercial opportunity provided by processing lithium clays.”

Email: info@lithium-au.com

Website: www.lithium-au.com

Genesis Minerals signs toll treatment deal with Eastern Goldfields

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THE BOURSE WHISPERER: Genesis Minerals (ASX: GMD) has struck a Memorandum of Understanding (MoU) with Eastern Goldfields (ASX: EGS).

The deal is in regards to the toll treatment of high-grade gold ore from former’s 100 per cent-owned Ulysses gold project, located between Leonora and Kalgoorlie in Western Australia).

The MoU will result in batch treatment of the Ulysses ore at the Davyhurst Mill located approximately 135km by road to the south of the project.

The agreement rests on a few conditions, namely the completion of a mining study on the 151,000 ounce Ulysses gold Resource by Genesis; the re-commissioning of the Davyhurst Mill; and commencement of production by Eastern Goldfields at the Davyhurst project.

The company’s anticipate the Davyhurst Mill will be operational in the December 2016 quarter.

As part of the MoU, the two companies will also be considering ways to co-operate that will be mutually beneficial in terms of future processing and exploration of the tenement position Genesis holds in the district.

“The signing of an agreement with Eastern Goldfields for the potential treatment of ore at Davyhurst is an extremely positive step forward for the company and gives us an attractive option to start treating our ore in the second half of this year,” Genesis Minerals managing director Michael Fowler said in the company’s announcement to the Australian Securities Exchange.

“We look forward to working with Eastern Goldfields to extract significant value from Ulysses.”

Website: www.genesisminerals.com.au