THE BOURSE WHISPERER: Sheffield Resources (ASX: SFX) has appointed Bruce McFadzean as managing director of the company.

Sheffield said it believes McFadzean possesses the right skills set to progress the company’s world-class Thunderbird minerals sands project in Western Australia’s Kimberley region through to production.

McFadzean brings more than 35 years’ experience in the global resources industry to the post, which includes 15 years with BHP Billiton (ASX: BHP) and Rio Tinto (ASX: RIO) in a variety of positions.

He was also managing director of Western Australia gold miner Catalpa Resources, during which time he presided over the construction and operation of the Edna May gold mine, the acquisition of 30 per cent of the Cracow gold mine and the eventual merger into Evolution Mining (ASX: EVN).

Under his management, Catalpa’s market capitalisation grew from $10 million to $1.2 billion following the Evolution merger.

His arrival as MD, which is slated to take effect on 2 November, will result in a few changes to the company’s Board structure with current managing director Bruce McQuitty taking an executive director role and Will Burbury’s chairmanship also becoming a non-executive role.

“Sheffield is rapidly advancing the 100 per cent-owned Thunderbird project in order to meet an expected global supply shortfall in the mineral sands industry this decade,” Burbury said in the company’s announcement to the Australian Securities Exchange.

“The Board believes Bruce’s appointment will ensure Thunderbird is producing in a timely and effective manner for the maximum benefit of all stakeholders.

“We are very pleased Bruce has recognised the opportunity that Thunderbird presents, to the extent that the vast majority of his remuneration is share based and linked to delivery of key project milestones.”

Email: info@sheffieldresources.com.au

Website: www.sheffieldresources.com.au

THE BOURSE WHISPERER: Blackham Resources (ASX: BLK) has finalised the Preliminary Feasibility Study (PFS) on the company’s 100 per cent-owned Matilda gold project, located near Wiluna in Western Australia.

The company said the PFS had confirmed the Matilda project’s robust economics including a low capital requirement, short timeframe to production, fast payback and operating costs.

Blackham said the Matilda’s low capex was due to substantial plant and infrastructure already at site and relatively minor plant refurbishments required to re-start the project.

The PFS has added an additional year to the mine life forecast in the Scoping Study while confirming strong conversion of Inferred Resources into Indicated Resources and Scoping Mineral Inventory into Reserves.

Since finalising the PFS Resources Blackham has reported exploration success at Golden Age and Matilda and is currently awaiting drill results from Galaxy and Williamson drilling programs.

Blackham explained the results of the PFS confirm mining and processing parameters are very similar to the results of the Scoping Study, firming up a sound understanding of the technical and operational aspects of the project and further de-risking the development of the Matilda gold project.

“The Matilda gold project PFS has confirmed the robust cash flows that will be generated by the project, its capital efficient nature and that it can be bought into production rapidly,” Blackham Resources managing director Bryan Dixon said in the company’s announcement to the Australian Securities Exchange.

“The DFS drill programs and studies are well advanced enabling the DFS to be completed by January 2016.

“Since finalising the PFS Resource, we have enjoyed significant exploration success and we plan to keep growing the mine life through aggressive drilling programs.

“It is an exciting time as we look to transition Blackham into Western Australia’s next significant gold producer.”

Blackham indicated it is making progress on the DFS with drilling programs and resource, metallurgical, environmental and engineering studies underway that are expected to enable the company to complete the DFS much quicker than anticipated, which it hopes will further de-risk the project by increasing confidence levels.

Email: info@blackhamresources.com.au

Website: www.blackhamresources.com.au

Source: Company announcement 

THE BOURSE WHISPERER: Minotaur Exploration (ASX: MEP) and OZ Minerals (ASX: OZL) have struck up a binding collaboration agreement over OZ Minerals’ tenements in the Mt Woods area in South Australia, specifically excluding the Prominent Hill mine Mining Licence ML 6228.

Minotaur Exploration provided a bit of a history lesson in its ASX announcement of the deal, referring to the initial discovery of Prominent Hill some ten years ago by the previous incarnation of the company – Minotaur Resources and the subsequent transfer of ownership to Oxiana Limited, which morphed into being OZ Minerals.

Since all this happened OZ Minerals has carried out extensive greenfields exploration work in the region around the Prominent Hill mine camp, building a vast library of exploration knowledge, comprising geophysical data, geochemistry, drill logs, drill core etc.

That work has resulted in numerous discoveries, however Minotaur Exploration said it believes scope exists for the database to reveal further opportunities.

“Given its resources are currently directed towards identifying and acquiring advanced mineral assets OZ Minerals invited Minotaur Exploration to partner with it in an endeavour to identify, assess and test prospects which could lead to new copper discoveries,” Minotaur Exploration said.

“The Gawler Craton is a highly prospective formation so we believe there could be many large discoveries yet to be made,” Minotaur Exploration managing director Andrew Woskett said.

“The Minotaur team is very excited at the prospect of re-entering the tenements of its origins, particularly in partnership with OZ Minerals.

“Minotaur considers the agreement to be of significant strategic value, complementing OZ Minerals’ number three position on Minotaur’s shareholder register.

“It is entirely consistent with Minotaur’s drive to cement strong joint venture alliances with highly credentialed industry participants, sharing exploration risk and cost.”

Under the arrangement Minotaur Exploration will have unrestricted access to OZ Minerals’ database and its physical components, saving it millions of dollars and years of exploration work, from which Minotaur will potentially identify new options for mineral discovery.

For its part, OZ Minerals will reimburse Minotaur for up to 80 per cent of its time costs expended on the research work.

If the two companies collectively agree on the merits of a particular target, an on-ground assessment will be carried out.

A $3 million budget funded 50/50 will allow for initial truthing of prospects to achieve ‘proof of concept’, with Minotaur as operator.

Following the ‘proof of concept’ phase a Joint Venture will be formed in which the beneficial interest in each prospect will be notionally allocated 80 per cent to OZ Minerals and 20 per cent to Minotaur.

Minotaur may then elect to sole fund the initial $2 million of exploration activity to earn an additional 10 per cent interest in a particular target (bringing its equity to 30 per cent) otherwise each party will contribute on a pro-rata basis or Minotaur may dilute.

“This is a win-win for OZ Minerals and Minotaur. We get Minotaur’s proven expertise in exploration and analysis and they get access to our vast repository of data,” OZ Minerals managing director and CEO Andrew Cole said.

Website: www.minotaurexploration.com.au

THE BOURSE WHISPERER: Sheffield Resources (ASX: SFX) has completed a Pre-feasibility Update on the company’s 100 per cent-owned Thunderbird mineral sands project, located near Derby in Western Australia.

The PFS Update has reduced pre-production capital expenditure for the project by 26 per cent taking it down to $271 million.

The new figures also include a 13 per cent increase in annual EBITDA to $135 million, improvement of capital payback to 3.4 years and a 25 per cent increase in mine life to 40 years.

The company explained the PFS Update has been based on a conventional dozer trap mineral sand mining operation involving an initial 12 million tonnes per annum (Mtpa) throughput, increasing to 18Mtpa in year eight, and a low risk, conventional processing flow sheet with all infrastructure located on site.

“The PFS update has confirmed that the Thunderbird project is a strategic, high margin, zircon-rich asset located in one of the world’s most stable mining jurisdictions,” Sheffield Resources managing director Bruce McQuitty said in the company’s announcement to the Australian Securities Exchange.

“It is a project that requires modest capital expenditure yet generates strong EBITDA margins over a very long mine life.

“We have carefully developed the updated PFS using proven, cost-effective conventional mining and processing techniques.

“Importantly, we have shown that Thunderbird will generate a highly marketable suite of products.

“The primary zircon is of premium quality whilst the upgraded ilmenite demonstrates characteristics that are superior to other sulphate ilmenites in the market, meaning it should become a preferred feedstock.

“Whilst there has been strong interest in relation to Thunderbird’s products, the company has chosen not to commit to offtake agreements until after completion of the DFS.

“Thunderbird is an asset of strategic importance in the global mineral sands industry and of State significance in Western Australia.”

Email: info@sheffieldresources.com.au

Website: www.sheffieldresources.com.au

THE BOURSE WHISPERER: Neometals (ASX: NMT) Mineral Resources (ASX: MIN), via the latter’s wholly-owned subsidiary, Process Minerals International, announced the start of the construction phase of the Mt Marion lithium project following the Final Investment Decision.

The companies announced that first production from Mt Marion is expected by mid-2016.

The Mt Marion project is designed to produce more than 200,000 tonnes per annum of chemical grade spodumene concentrate.

Neometals and MIN explained that a financial close had been reached regarding formal agreements the two entities had executed with China’s second largest lithium producer, Jiangxi Ganfeng Lithium Co., Ltd (Ganfeng), in respect of that company’s equity investment in the Mount Marion lithium project.

As a result of a Share Sale, Subscription and Option Agreement, the parties have entered into a Shareholders Agreement to govern their investments in Reed Industrial Minerals Pty Ltd (RIM), which is the owner of the project.

RIM has also entered into a life-of-mine Offtake Agreement with Ganfeng, and a Mining Services Agreement with MIN for the construction and operation of the project on a Build-Own-Operate basis.

The completion of these agreements constitutes the Final Investment Decision.

Neometals has received a net amount of US$19.75 million from Ganfeng in respect to the equity investment in RIM.

“This heralds a new chapter for Neometals as we move into the construction phase of Mt Marion,” Neometals managing director Chris Reed said in the company’s announcement to the Australian Securities Exchange.

“We have successfully executed our strategy to bring Mt Marion to fruition teaming with a partner who provides expertise in construction and processing as well as securing a valuable offtake partner.”

Email: info@neometals.com.au

Website: www.neometals.com.au