Azure raises 15 Million to progress Mexican discoveries

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THE BOURSE WHISPERER: Azure Minerals (ASX: AZS) has banked an impressive $15 million, raised through a placement to institutional and sophisticated investors.

A total of 395 million fully paid ordinary shares will be issued at a price of 3.8 cents.

The company plans to also undertake a Share Purchase Plan to existing shareholders to raise a further $3 million.

Azure indicated the funds would be put to use by accelerating development studies and the continuation of the ongoing exploration campaign on the silver and gold discoveries at the company’s Alacrán project in northern Mexico.

“The strong investor support has significantly strengthened our balance sheet,” Azure Minerals managing director Tony Rovira said in the company’s announcement to the Australian Securities Exchange.

“I am very pleased with the support shown from both existing shareholders and institutions in North America, Europe and Australia.

“The Alacrán project is one of the most exciting projects I have been involved with and I am looking forward to being able to accelerate both our development and exploration programs.”

Email: admin@azureminerals.com.au

Website: www.azureminerals.com.au

Vital Metals raises $800,000 for West Africa exploration

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THE BOURSE WHISPERER: Vital Metals (ASX: VML) announced it has raised $800,000 via a share placement to fast-track gold exploration and pre-development activities at the company’s high-grade Kollo gold project in Burkina Faso, West Africa.

The company said it intends using the proceeds of the share placement to:

Undertake in-fill drilling and extensional drilling along the Kollo trend to test for extensions of the known mineralisation;

Fund a Scoping Study on the potential development options at Kollo, which will consider mining, processing methods, infrastructure, waste management and environmental approvals. This Study is targeted for completion by the end of August 2016; and

For general working capital purposes.

“This represents a significant vote of confidence in our strategy to pursue gold exploration in Burkina Faso as a near-term strategy to unlock value for our shareholders,” Vital Metals managing director Mark Strizek said in the company’s announcement to the Australian Securities Exchange.

“Exploration at Kollo has to date been focused on high-grade, near-surface gold mineralisation which appears to be amenable to open pit mining, opening up the potential for an attractive source of near-term cash-flow.

“The proceeds of this placement will be used to test the extents of gold mineralisation along the Kollo trend.”

Email: vital@vitalmetals.com.au

Website: www.vitalmetals.com.au

Gold Road Resources granted Yamarna Mining Leases

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THE BOURSE WHISPERER: Gold Road Resources (ASX: GOR) announced the signing of a native title agreement, enabling the granting of mining leases covering the company’s Gruyere, Central Bore and Attila projects.

These leases are all owned 100 per cent by Gold Road, and are located in the Yamarna Greenstone Belt, approximately 200 kilometres east of Laverton in Western Australia.

Gold Road signed the Gruyere and Central Bore Native Title Agreement with the Yilka People and the Cosmo Newberry Aboriginal Corporation (CNAC) on 3 May 2016.

This enabled Gold Road to lodge State Deeds for the mining leases, which have subsequently been granted by the WA Government.

The leases cover all three JORC 2012-compliant gold resources discovered by Gold Road in the Yamarna Belt, including the 6.2 million ounce Gruyere deposit, which is currently the subject of a Feasibility Study and is expected to be developed as the company’s first gold mine.

“Securing the mining leases represents a further achievement in the ongoing de-risking of the Gruyere project and we would like to thank the state government, the Yilka People and CNAC for their support in reaching this significant milestone,” Gold Road executive chairman Ian Murray said in the company’s announcement to the Australian Securities Exchange.

“The company looks forward to bringing the Gruyere project into production.”

Gold Road is on schedule to complete its Feasibility Study over the Gruyere project by the end of 2016.

Email: perth@goldroad.com.au

Website: www.goldroad.com.au

Middle Island acquires Sandstone gold mining and processing project

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THE BOURSE WHISPERER: Middle Island Resources (ASX: MDI) is to acquire a 100 per cent interest in the Sandstone gold project, located in the East Murchison gold district of Western Australia.

The Sandstone project comprises a 100 per cent interest in two granted Mining Leases owned by Black Oak Minerals Limited, which is currently in Liquidation with Receivers and Managers appointed.

The Sandstone project comes with a Mineral Resources of approximately 11 million tonnes at 1.4 grams per tonne gold for total contained gold of 480,000 ounces.

Middle Island said previous drilling carried out on the project indicates potential to rapidly expand this resource base, including at least two potential company-making targets.

The project also boasts an existing CIP processing plant with a 600,000 tonnes per annum capacity, associated infrastructure as well as an inventory of spares, with recommissioning costs estimated at five to eight million dollars.

“In excess of one million ounces of gold has been produced from surface, underground and open pit operations in the Sandstone area since the 1890s,” Middle Island Resources said in its ASX announcement.

“In addition to historic mining activities, more recent gold production is variously attributed to Herald Resources Limited in the 1990s and Troy Resources Limited from 1999 to 2010.

“Troy extracted and processed a combined total of approximately 4.4 million tonnes of ore at an average grade of 3.6g/t gold for 508,000 ounces of gold before the operation was placed on care and maintenance in September 2010.

“Southern Cross Gold Limited (SXG) acquired the Sandstone project from Troy in December 2012 with the primary objective of relocating the processing plant to its Marda project some 100 kilometres to the south.

“A subsequent merger of SXG and Poly Metals to form Black Oak Minerals diverted focus to Poly Metals’ NSW assets before being placed into administration in September 2015 and subsequently liquidation in early 2016.”

Two exploration targets have been identified at the Two Mile Hill prospect, located 3.2km north of the processing plant.

The first is 250m long and 70m wide and includes historic drill intercepts of 141m at 2.3g/t gold, 353.3m at 1.04g/t gold and 156.3m at 1.14g/t gold.

A banded iron formation (BIF), which obliquely intersects at depth, is also very strongly mineralised.

Drilling within the BIF, includes intercepts (essentially true widths) of 8.5m at 49g/t gold, 13.7m at 26g/t gold, 4.5m at 25g/t gold, and 3.5m at 20g/t gold at a depth of some 200m below surface.

The Sandstone project acquisition has a headline value of $2.5 million, which is to be paid as follows:

$250,000 deposit by 9 May 2016 (which is non-refundable except in limited circumstances);

$1.25 million at completion, being no later than 1 July 2016 (unless otherwise agreed by the parties);

$500,000 at 18 months following completion (or $400,000, if paid by 1 October 2016); and

$500,000 on re-commencement of gold production from any source by the company.

The tenements come with a legacy 2 per cent NSR royalty payable to Troy, along with a royalty of $1 per tonne of ore mined and processed from M57/129 that is payable to Herald and National Resources Exploration.

The precise legal status of a further legacy royalty remains unclear and is under review.

Email: info@middleisland.com.au

Website: www.middleisland.com.au

Australian Bauxite completes first sale from Bald Hill

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THE BOURSE WHISPERER: Australian Bauxite (ASX: ABX) has concluded its first sale of bauxite from the company’s Bald Hill mine in Tasmania with the maiden shipment of 5,557 tonnes of cement-grade bauxite from Bell Bay Port.

Bald Hill is the first new bauxite project in Australia for more than 35 years.

ABx said its customer is seeking a second, larger shipment of 30,000 to 40,000 tonnes once the large stockpile warehouse in the receiving port is approved and ready to receive bauxite.

This is anticipated to occur within two months.

“The bauxite is in perfect condition for our bauxite cement customer,” Australian Bauxite logistics manager Paul Glover said in the company’s announcement to the Australian Securities Exchange.

“It is even grained, dry, dust-free and exceptionally clean due to rigorous processing by Stornoway contractors at Bald Hill mine, careful transport pit-to-port by TasRail and professional port handling by QUBE Ports.

“This, combined with excellent chemistry makes our bauxite ideal for a range of customers, several of which have recently requested samples from us for testing.”

The company highlighted its intentions to continue with its plan to use sales revenues, rather than capital raisings to fund growth, including R&D into TasTech technology which allows ABx to separate Tasmanian bauxite into the three constituent product-types:

1. High grade, ultra-cleaned metallurgical-grade bauxite for the aluminium industry;

2. Cement-grade bauxite for the manufacture of certified, high specification cement; and

3. Fertiliser-grade bauxite for the fertiliser industry.

Gold Road raising $74M to advance Gruyere project

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THE BOURSE WHISPERER: Gold Road Resources (ASX: GOR) announced an institutional placement and a 1 for 10 pro-rata accelerated non-renounceable entitlement offer with the intention of raising approximately $74 million.

Gold Road already has plenty of cash on hand and is currently fully-funded to complete its ongoing Gruyere project Feasibility Study (FS).

The company indicated the funds raised via the Equity Raising will be used to:

Purchase long lead time capital items;

Commence early works and front end engineering and design (FEED);

Provide flexibility to fund possible Gruyere open pit depth extensions as well as regional exploration programs at priority targets across the Yamarna Greenstone Belt; and

General working capital and corporate purposes.

By raising this capital now, Gold Road insists the Gruyere project execution plan will be further de-risked and de-bottlenecked allowing for a smoother development schedule.

“This Equity Raising follows the release of the detailed Pre‐Feasibility Study confirming the Gruyere project as one of Australia’s best undeveloped gold deposits, with a long life and low costs,” Gold Road Resources executive chairman Ian Murray said in the company’s announcement to the Australian Securities Exchange.

“The findings indicate a technically sound and financially viable project, which is anticipated to support strong margins and cash flow.

“The decision to raise additional equity now is a strong signal of Gold Road’s commitment to developing the Gruyere project.

“It also highlights significant investor interest in supporting Gold Road in this endeavour.

“This Equity Raising will enable Gold Road to de-risk and to de-bottleneck the Gruyere project, and to expedite its development, through the purchase of long lead time capital items and commencement of early works and FEED, in parallel with the completion of the Feasibility Study and a continued focus on exploiting priority exploration targets across the Yamarna Greenstone Belt.”

Email: perth@goldroad.com.au

Website: www.goldroad.com.au

Investigator Resources leaves Brisbane to set up house in Adelaide

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THE BOURSE WHISPERER: The Roadhouse was fortunate to catch up with Investigator Resources (ASX: IVR) managing director John Anderson in Brisbane.

We just knocked on the front door as the company announced its intentions of moving its head office from Brisbane to Adelaide.

Anderson said the company was shifting its focus entirely to South Australia, which the company considers to be a vibrant and resurging minerals frontier.

The move is also spearheading a drive to reduce the costs of Investigator’s on-going exploration and development opportunities.

“The consolidation of the corporate and operational offices in Adelaide will facilitate Investigator’s focus on developing the Paris silver deposit and exploring its other exciting copper gold and nickel opportunities in South Australia,” Anderson explained to The Roadhouse.

“With sentiment turning in the market, our 33 million ounce Paris silver project is finally attracting market interest reflected in the strong rise in Investigator’s share price since early February.”

Investigator announced an upgraded Resources at Paris last November, which received limited interest from the market.

Anderson mused that point appears to be have been at the bottom of the market, or what he described as, “the silence before the dawn of the next upturn”.

With a robust grade of 116 grams per tonne silver and shallow open-pit attributes for Paris, Anderson remains confident it is only a matter of time before a renewed interest in bullion would launch Investigator out of the pack.

“There is plenty of exploration potential around Paris to discover more silver,” he said.

“But we also perceive market interest in the step-change concepts for copper-gold and nickel discovery that we are developing with our innovative approach out of the Paris lead.”

Anderson indicated the Nankivel copper gold targets near Paris as potential prospects of being South Australia’s first porphyry deposits, probably of Olympic Dam age.

“We are also aiming to turn the surprise of finding previously unknown ultramafics with nickel sulphides near Paris into another breakthrough for that region,” Anderson continued.

“And based on new government research, we feel the Maslins gravity target is well positioned for a renaissance in IOCG exploration in the southern extensions of the Olympic Dam belt.

“Our corporate relocation into South Australia is well and truly justified by our intention to develop Paris into an operating mine, along with the quality and diversity of precious and base metal exploration projects we are taking into the next upturn.”

Email: info@investres.com.au

Website: www.investres.com.au

Lithium Australia participation in Venus Metals placement advances processing hub strategy

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THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) outlined its long-term strategy for the establishment of a lithium processing hub in Western Australia.

The company indicated its initial preference to be Port Hedland, citing the port city’s proximity to infrastructure, as well as its proximity to WA’s lithium hotspot, Pilgangoora.

The strategy follows recent announcements by the company of funding initiatives with Federal Government Business Innovation Grant and Minerals Research Institute of Western Australia (MRIWA) regarding the commercialisation of its Sileach process.

In line with the State Government-based nature of the MRIWA funding, LIT has been actively seeking local support for the studies to advance and promote Port Hedland, Pilgangoora and WA.

As a result it has struck a deal with Venus Metals Corporation (ASX: VMC), which has agreed to be a joint founding partner with LIT in the application to MRIWA for co-investment in this study.

To this end LIT has participated and subscribed to ordinary fully paid shares in a recent private placement conducted by VMC at 25 censt per share.

The two companies have commenced a desktop study with VMC planning a reconnaissance field trip to LIT’s Pilgangoora tenements.

“LIT’s point of difference with all other lithium companies is the ability to recover lithium from spodumene without the requirement for the extraordinary expense of roasting,” Lithium Australia managing director Adrian Griffin said in the company’s announcement to the Australian Securities Exchange.

“The company’s proprietary Sileach process has the flexibility to process any lithium bearing silicates.

“If our application is successful, the MRIWA grant will enable the commercialization of the Sileach process to be accelerated through to large-scale piloting.”

Email: info@lithium-au.com

Website: www.lithium-au.com

Australian Bauxite enters into third bauxite marketplace with sale from Bald Hill

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THE BOURSE WHISPERER: Australian Bauxite (ASX: ABX) has diversified its bauxite market share by moving into the fertiliser and cement markets.

Australian Bauxite (ABx) announced its maiden sale, with shipping dates locked-in, of bauxite into the fertiliser and cement markets at prices, it claims to be, considerably higher than the currently over-supplied metallurgical bauxite market.

The sale comes from the company’s Bald Hill mine in Tasmania – the first new bauxite project to be developed in Australia for more than 35 years.

This maiden Bald Hill sale is for cement-grade bauxite, with shipping dates to start from 18 April for an initial despatch of 5,000 tonnes for immediate use in the last week of April.

ABx indicated the customer is already putting its hand up for a second, larger shipment of 30,000 to 40,000 tonnes once stockpile sites in the receiving port are approved.

The company anticipates this to occur within two months.

“This is a significant step forward by ABx and is just reward for our supportive shareholders, brokers and advisers,” Australian Bauxite CEO Ian Levy said in the company’s announcement to the Australian Securities Exchange.

“These sales are part of a resilient marketing plan developed by COO, Leon Hawker and Logistics Manager, Paul Glover.

“ABx conducted test work during 2014 and 2015 to achieve cement and fertiliser industry technical specifications and can now sell into all three bauxite markets at the best prices and terms available.

“This sale into the cement market delivers our budgeted profit margin in stark contrast to the metallurgical market which is suffering from short-term weakness.”

ABx and its marketing partner RawMin are continuing negotiations with metallurgical and cement-grade bauxite customers in China, India and the Middle East.

RawMin has sold its own bauxite into these markets for three decades and has introduced ABx to several customers that require specialised bauxite, especially in the Middle East.

Website: www.australianbauxite.com.au

Gascoyne Resources raises $15M for WA exploration push

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THE BOURSE WHISPERER: Gascoyne Resources (ASX: GCY) has raised an impressive $15 million to fund upcoming exploration programs on high-priority gold targets at the company’s Dalgaranga gold project in the Murchison region of Western Australia, and Glenburgh project in the Gascoyne region of WA.

The two projects have combined existing JORC Resources of over two million ounces of gold (1.05Moz at the Dalgaranga project and 1Moz at the Glenburgh project).

Gascoyne Resources said it considers there to be potential for growth in the Resources at both of these projects.

The raising means it can now commit to an extensive drilling program to better appraise these projects, and follow-up high priority targets.

Besides funding ongoing drilling and other exploration activities, Gascoyne will also now be fully-funded to complete a final Feasibility Study at the Dalgaranga project, for which Pre-Feasibility results announced in March, showed it to be a technically and financially robust gold project able to produce an average of 104,000 ounces of gold per annum over an initial six year mine life at an average All-in Sustaining Cost of $913 per ounce, and capital payback within the first year of production.

Funds raised will also provide the financial flexibility to secure certain long lead time items required to accelerate development of Dalagranga.

This flexibility provides the company with potential to achieve first gold production sooner than would otherwise be possible.

“The overwhelming demand for the Placement from a large number of well-respected institutional investors provides a strong endorsement of the quality of our portfolio, which includes both a near-term high margin gold development asset at the Dalgaranga project, and the Glenburgh project in the Gascoyne region, which provides the company with the ability to grow organically into a plus-200,000 ounce per annum gold producer in the medium term,” Gascoyne Resources managing director Mike Dunbar said in the company’s announcement to the Australian Securities Exchange.

“The company is now in the strongest position it has ever been to greatly expand its exploration efforts to unlock the very significant exploration upside we believe remains on our projects.”

Email: admin@gascoyneresources.com.au

Website: www.gascoyneresources.com.au