Lithium Australia joins Mexico lithium JV

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THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) has continued its march towards world domination of the lithium scene with news it has signed a Joint Venture with TSX-listed Alix Resources (TSX: AIX) to explore and develop the projected extensions of the giant Sonora lithium clay deposit located in Mexico, known as the Electra project.

In its announcement to the ASX Lithium Australia highlighted recent analysis of global lithium deposits by Edison Investment Research, which demonstrated the Sonora region’s importnace to future world lithium production.

“The dominance of clay and mica deposits amongst the ‘giants’ may point to the future of the lithium industry, which is where the joint efforts of LIT and Alix will concentrate their exploration efforts,” Lithium Australia said.

LIT has previously announced successful testing of its disruptive lithium extraction technologies on the giant Cinovec deposit in the Czech Republic where LIT has a non-binding Memorandum of Understanding with project owner European Metals Holdings Limited (ASX: EMH).

LIT has exposure to other major lithium provinces, having established a presence in the greisen deposits of Europe through its relationship with European Metals Holdings and around Greenbushes in Western Australia.

The company is also working with Pilbara Minerals (ASX: PLS) in the Pligangoora region, which has of late has become something of a lithium hotspot.

Email: info@lithium-au.com

Website: www.lithium-au.com

Gold Road Resources confirms long life for Gruyere gold project

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THE BOURSE WHISPERER: Gold Road Resources (ASX: GOR) has completed the Pre‐Feasibility Study (PFS) for the development of the company’s 5.62 million ounce Gruyere project, east of Laverton in Western Australia.

Gold Road claims the PFS to have confirmed the Gruyere project to be one of Australia’s best undeveloped gold deposits.

According to the company the PFS has indicated the project to be technically sound and financially viable, being capable of generating over $1 billion in free cash flow (pre‐tax) over an initial 12‐year project life.

The total forecast capital cost is estimated to be $455 million, which includes a project contingency of $35 million.

The PFS produced a Whittle‐optimised open pit shell and Ore Reserve modelled at $1,400 per ounce.

All financial analysis was undertaken using an Australian Dollar $1,500 per ounce gold price, representing the five‐year historic average.

Following the completion of the PFS, Gold Road has been able to declare a Maiden Ore Reserve for Gruyere of 3.17 million ounces, which supports an average annual gold production of 265,000 ounces over the life of the mine.

The company boasted that production at this rate would elevate it into the ranks of Australia’s mid‐tier gold producers.

Based on the positive PFS outcome, the Gold Road Board has approved the immediate progression to a Feasibility Study (FS) on the project to further define and support the case for project funding and development.

Gold Road executive chairman Ian Murray said in the company’s announcement to the Australian Securities Exchange.
“Following the detailed work undertaken last year in the Options Study that determined the best development case for the Gruyere project, the PFS has now confirmed the project’s robust economics and technical simplicity.

“While the PFS suggests a substantial 12‐year project life, the demonstrated exploration potential of Gruyere and the surrounding Yamarna region means there is significant potential to extend the life beyond that initial term.

“None of this potential upside has been included in the scope of the PFS.

“We are now aiming to complete the FS on Gruyere by the end of 2016, which will allow Gold Road to make an investment decision in early 2017.

“Opportunities to optimise and enhance the financial performance of the project will be thoroughly assessed during this feasibility stage.”

Email: perth@goldroad.com.au

Website: www.goldroad.com.au

Lithium Australia confirms lithium hydroxide production process

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THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) claims to have potential for a second commercial lithium product – lithium hydroxide – to be produced from the company’s Lepidolite Hill mica deposit, located southwest of Kalgoorlie in Western Australia.

The company received final control assays from recent production of lithium hydroxide, which it said substantiated the potential to produce this product from lithium micas by conversion of lithium carbonate.

The tests were conducted on lithium carbonate samples Lithium Australia produced during a mini-plant production run carried out in July 2015 using lepidolite from Lepidolite Hill.

Lithium hydroxide was produced by dissolution of the lithium carbonate and addition of lime with filtration of the solution removing most of the solid impurities (primarily calcium and magnesium). 

According to the company, the tests showed that while some lithium is precipitated with these solids, they can be recycled to the primary mica leach, prior to precipitation of the lithium carbonate feed, which lessens any potential lithium losses from precipitated solids.

The test cycle also generated results showing 80 per cent of the lithium can be recovered by evaporation, with any lithium remaining in solution recycled to the lithium hydroxide precipitation, minimising solution losses.

The production of high-purity lithium carbonate is the second breakthrough for Lithium Australia on testwork on Lepidolite Hill samples.

Last year, the company produced a 99.58 per cent purity lithium carbonate from test work on Lepidolite Hill’s micas.

“The latest assay results come amid a push by Lithium Australia to trial hydrometallurgical techniques for the recovery of lithium and other metals on a wide range of silicates,” Lithium Australia said in its ASX announcement.

“In the case of lithium, the ability to digest the target mineral, and produce a final hydroxide product, remains a common thread, with hydroxide production potentially being one of the most significant value adding steps in the process.

“The ability to achieve these outcomes potentially adds enormous value to Lithium Australia’s Western Australian and international projects in Europe and Mexico.”

Email: info@lithium-au.com

Website: www.lithium-au.com

Renaissance Minerals secures Okvau funding with new JV partner

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THE BOURSE WHISPERER: Renaissance Minerals (ASX: RNS) has signed up a development partner for the company’s Cambodian gold projects, in particular the Okvau gold deposit, having inked a Joint Venture with Emerald Resources (ASX: EMR).

The two companies have struck a legally binding Memorandum of Agreement (MoA), under which Emerald may earn up to a 51 per cent interest in Renaissance’s Cambodian gold projects by sole funding a Definitive Feasibility Study (DFS) for the development of the Okvau gold deposit to a bankable level, an Environmental & Social Impact Assessment (ESIA) and a two year exploration program of US$3 million ($4.3 million).

Renaissance had previously estimated the cost of the DFS and ESIA to be in the vicinity of US$4-5 million ($5.7-$7.1 million).

Emerald and Renaissance have agreed the standard of DFS the former is required to complete based on a comprehensive criteria and to a level of accuracy that will be acceptable to potential bona-fide project financiers.

Under the terms of the MoA, Emerald is to be sole manager of the DFS while Renaissance and Emerald will jointly manage the exploration program.

Emerald has subscribed for 57.4 million shares in Renaissance as part of an equity placement of 114.8 million at three cents per share to raise $3.4 million.

Upon completion of the Placement, Emerald will hold a 10 per cent interest in Renaissance and will be entitled to appoint a non-executive director to the Board.

“The Emerald team is undoubtedly one of the best credentialed gold development teams in Australia with a proven history of developing projects successfully, quickly and cost effectively,” Renaissance Minerals managing director Justin Tremain said in the company’s announcement to the Australian Securities Exchange.

“The fact that this team has been attracted to the Okvau project is a testament to its potential.

“Renaissance is committed to taking the Okvau project forward and in light of current equity market conditions believe this Joint Venture provides the most attractive funding option for our shareholders.

“Renaissance shareholders retain significant ownership of the Okvau project with an exceptional development partner, and will benefit from any improvement in development economics and from future exploration success without the associated immediate funding obligation.

The funding of a DFS and ESIA alone is a significant cost burden that this transaction removes from Renaissance shareholders.

“The Joint Venture also provides for the funding of ongoing exploration.”

Email: admin@renaissanceminerals.com.au

Website: www.renaissanceminerals.com.au

Metalicity applies for new WA lithium projects

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THE BOURSE WHISPERER: Metalicity (ASX: MCT) has lodged four exploration licence applications (ELAs) across three project areas the company considers to be prospective for lithium, tantalum and tin mineralisation, located in established rare metal geological settings in Western Australia.

Metalicity generated the projects have from its own in-house exploration targeting model it developed from a comprehensive database of lithium, tantalum and tin occurrences and prospective geological settings for lithium mineralisation, primarily in established rare metal producing regions in WA.

The first two applications are at Lake Cowan (E15/1502 and E15/1503) and are located five kilometres south of the Bald Hill tantalum mine, operated by Alliance Mineral Assets Limited.

Metalicity explained that the pegmatites in the Alliance project area are known to contain the lithium mineral, spodumene.

The third application is known as Greenbushes East (E70/4809) and is located 25km east of the Greenbushes lithium deposit where the world’s largest and highest grade deposit of spodumene (hard rock lithium) is being mined, processed and exported via the port of Bunbury, WA.

Metalicity claims its application area covers a similar regional geological setting to the Greenbushes deposits.

The final application is for Pilgangoora East (E45/4688), located 20 km east of the Pilgangoora lithium deposits, held by Pilbara Minerals (ASX: PLS) and Altura Mining (ASX: AJM).

The Pilbara Minerals deposit is the world’s second largest spodumene deposit.

The Pilgangoora East application area covers a similar geological setting to the Pilgangoora deposits.

Metalicity outlined its intentions to explore the new project areas for outcropping and undetected pegmatites that may host rare metal mineralisation.

The company has commenced desktop surveys to refine target areas for field surveys, which will include geological mapping and geochemical sampling programs.

Metalicity stressed its initial exploration programs are sufficiently funded.

“We have rapidly developed an in-house exploration targeting model focussed on lithium mineralisation in Western Australia and have secured a further 914 square kilometres of tenements considered prospective for rare metals mineralisation in prolific districts, to add to the existing highly prospective Pilgangoora South project,” Metalicity managing director Matt Gauci said in the company’s announcement to the Australian Securities Exchange.

“The exploration of these projects is sufficiently funded and we look forward to progressing work programs.”

Kibaran Resources signs MoU with Japanese commodities trader

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THE BOURSE WHISPERER: Kibaran Resources (ASX: KNL) has gained access to the Japan-Korea battery market through the signing of a non-binding Memorandum of Understanding (MoU) with Japanese commodities trader, Sojitz Corporation.

The signing is Kibaran’s second expansion into international graphite markets, following its binding 10-year 30,000 tonnes per year offtake deals last year with European customers including the German global industrial conglomerate, ThyssenKrupp Metallurgical Products GmbH.

The MoU sets out an in-principle understanding for Sojitz and Kibaran to enter into commercial negotiations concerning the following:

Sojitz to source graphite in Tanzania exclusively from Kibaran’s high-grade and wholly-owned Epanko project;

Exclusive sales and marketing by Sojitz, for a range of key applications, in Japan, Korea, Taiwan, China and the United States for Epanko’s high-purity natural flake graphite grades;

Entry via Sojitz to the lucrative supply-chain for the fast growing lithium ion (Li-Ion batteries or LIB) battery market; and

Unique long-term sales into Japanese and Korean battery anode manufacturers.

“The Sojitz MoU is a major milestone for the company, providing Kibaran with additional independent endorsement of the quality and commercial appeal of our Epanko natural flake graphite,” Kibaran Resources managing director Andrew Spinks said in the company’s announcement to the Australian Securities Exchange.

“This MoU not only supports the development of Epanko but also advances Kibaran’s plans to manufacture spherical graphite, expandable graphite and other value added products for a broad range of industrial applications with forecast significant growth rates.

“It is not yet fully understood by equities markets but lithium ion battery innovation is being led by Japan, Korea, China and Germany, hence our emerging positioning of Kibaran as a major supply chain and alternative supply to mainland China.”

Email: info@kibaranresources.com

Website: www.kibaranresources.com

Lithium Australia seeks approval for Lepidolite Hill bulk sampling program

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THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) has submitted a Program of Works (PoW) for approval by the Western Australian Department of Mines and Petroleum, in regards to Lepidolite Hill, which is part of the Coolgardie Rare Metals Venture with Foucus Minerals (ASX: FML) (80% LIT and 20% FML).

On gaining approval, the JV intends recovering about 1,500 tonnes of lepidolite for further metallurgical testing.

Lithium Australia signalled it plans to undertake larger scale pilot testing of lithium micas later in 2016 using its L-Max technology – exclusively licensed to LIT in Western Australia and the Cinovec project in the Czech Republic.

L-Max has been specifically developed to recover lithium, in the form of lithium carbonate, from lithium micas.

Material recovered from the Lepidolite Hill bulk sampling program is likely to be included in the pilot plant feed.

Lithium Australia has commenced discussions with metallurgical laboratories to ensure plant and equipment are available to undertake the program when required.

“The bulk sampling will provide a significant supply of material for further testing. Pilot testing is part of the process of de-risking the flowsheet and will generate data required for further feasibility studies,” Lithium Australia managing director Adrian Griffin said in the company’s announcement to the Australian Securities Exchange.

“We are keen to reach this stage of development as soon as practical as pilot testing will further demonstrate the veracity of the process.

“This is part of the rigour required for project financing and we need to be able to take that step when required.”

Email: info@lithium-au.com

Website: www.lithium-au.com

Blackham Resources increases Matilda Mine Resource

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THE BOURSE WHISPERER: Blackham Resources (ASX: BLK) announced a resource estimate update for the company’s Matilda mining centre, located near Wiluna in Western Australia.

The Matilda mine resource now totals 12.9 million tonnes at 1.8 grams per tonne gold for 724,000 ounces of gold with the Measured and Indicated resource now totalling 7.6 million tonnes at 1.8g/t gold for 439,000 ounces of gold.

Blackham is currently into a Definitive Mining Study on the updated resource at the Matilda mine.

Studies completed to date on the current resource indicate the shallow mineralisation at Iceberg 2 and Scorchers prospects immediately to the north and south of the M4 Pit influence the optimisations to extend in each direction.

Recent drilling carried out at the M3 and M1 South prospects has pushed these pits wider and deeper.

Currently 90 per cent of the in-pit resource is in the Measured and Indicated categories.

Blackham is currently drilling a RC program at the Matilda mine to upgrade Inferred lodes to Indicated as identified within the DFS pit optimisation as well as targeting further repeating and stacked lodes along the seven kilometres of strike.

“The increase in the Measured and Indicated resources at the Matilda mine gives us further confidence that the Matilda mine will keep growing,” Blackham Resources managing director Bryan Dixon said in the company’s announcement to the Australian Securities Exchange.

“We continue to find repeat and stacked lodes along the deeply weathered Matilda system.

“The Matilda mine is shaping up as an important source of base load free milling ore to re-commission the Wiluna gold plant.”

Email: info@blackhamresources.com.au

Website: www.blackhamresources.com.au

Neometals expands Mt Marion lithium offtake

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THE BOURSE WHISPERER: Neometals (ASX: NMT) announced an expansion to the lithium offtake agreements in place at the company’s Mt Marion project in Western Australia.

The company, along with Mineral Resources (ASX: MIN) referred to their announcement dated 28 September 2015 regarding financial close of the Mt Marion project Offtake and Equity Investment with Chinese lithium producer, Ganfeng Lithium Co., Ltd.

“Under the initial offtake arrangements between Ganfeng and the project vehicle, Reed Industrial Minerals Pty Ltd (RIM), Ganfeng agreed to take-or-pay 100 per cent of the six per cent lithium oxide (Li2O), chemical grade spodumene concentrate produced from the Mt Marion project,” Neometals explained in its ASX announcement.

Recent metallurgical test work has identified an additional spodumene product can be generated through the addition of a flotation circuit to the current beneficiation plant.

As a results Neometals and MIN have eached an agreement with Ganfeng agreed to expand the scope of the offtake arrangements to take-or-pay an additional 80,000 tonees per annum of spodumene concentrate of between four and six per cent Li2O content, generated by flotation at agreed discounts to the market prices for the six per cent Li2O product.

“The expansion remains conditional on RIM and MIN (via its wholly owned subsidiary, Process Minerals International Pty Ltd) agreeing and finalising the necessary variations to the Mining Services Agreement to cover the production of the lower grade product, which will include the addition of a flotation plant at the Mt Marion project,” Neometals said.

“The variation will be concluded on completion of a detailed metallurgical test program currently being undertaken.”

Email: info@neometals.com.au

Website: www.neometals.com.au

Mining Projects to acquire lithium project from Tyranna Resources

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THE BOURSE WHISPERER: Mining Projects Group (ASX: MPJ) has agreed to acquire the ‘Lynas Find Assets’ from Tyranna Resources (ASX: TYX) in the Pilbara region of Western Australia.

The assets are to be renamed the Pilbara lithium-gold project and adjoin both Pilbara Minerals’ (ASX: PLS) Pilgangoora lithium-tantalum project and Altura Mining’s (ASX: AJM) Pilgangoora lithium project.

The Pilbara lithium-gold project covers 29 square kilometres approximately 100 kilometres south of Port Hedland.

In 2008, one of Tyranna’s former entities, Trafford Resources published a JORC (2004) gold resource of 49,515 ounces comprising 933,400 tonnes at 1.65 grasm per tonne gold.

“The extensive exploration undertaken at Pilbara had clearly demonstrated its potential to host significant lithium and gold mineralisation.,” Mining Projects managing director Joshua Wellisch said in the company’s announcement to the Australian Securities Exchange.

“This view was also underpinned by the extensive lithium resources established on the adjacent tenements by Pilbara Minerals and Altura Mining.

“The lithium-bearing pegmatite sills which have been identified, the extensive gold mineralisation already outlined and the considerable success enjoyed by our neighbours in establishing substantial lithium resources gives us every reason to be excited about the Pilbara acquisition.

“Upon settlement of the acquisition, we will move quickly to begin an aggressive on-ground exploration program at Pilbara.”

Tyranna Resources executive chairman Ian Finch will join the Mining Projects board as chairman.

Website: www.miningprojectsgroup.com.au