Australian Bauxite strikes offtake deal for Bald Hill bauxite

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THE BOURSE WHISPERER: Australian Bauxite (ASX: ABX) has been offered a Long Term Offtake Agreement for bauxite from the company’s first bauxite operation planned at Bald Hill, near Campbell Town, Northern Tasmania.

“Our objective has always been to find a compatible, supportive off-take partner so as to maximise the blending opportunities for our bauxite and to create a market niche that we can supply successfully for many years,” Australian Bauxite CEO Ian Levy said in the company’s announcement to the Australian Securities Exchange.

“This off-take agreement will allow us to develop the project and satisfy this market niche simultaneously – something we probably could not do alone during the ramp-up to steady-state production.

“We are now ramping-up railings of bauxite product from stockpiles at the mine to Bell Bay export port so as to ship our first shipment of bauxite into China later this quarter.”

Email: corporate@australianbauxite.com.au

Website: www.australianbauxite.com.au

Sandfire close to solar power station construction

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THE BOURSE WHISPERER: Sandfire Resources (ASX: SFR) is set to commence construction of a 10.6 megawatt (MW) solar power station at its DeGrussa copper mine in Western Australia.

Sandfire has signed final agreements for the $40 million project to proceed.

The company anticipates the DeGrussa Solar Photovoltaic (PV) System will set new benchmarks for the use of renewable power for mining and processing operations.

Sandfire has executed a final Power Purchase Agreement (PPA) with juwi Renewable Energy Pty Ltd, which will develop and operate the project.

Diversified infrastructure and survey solutions company OTOC Limited (ASX: OTC) has been awarded the procurement and installation contract for the project via a joint venture with juwi, while French renewable energy firm Neoen will own the facility.

The Clean Energy Finance Corporation (CEFC) is committing up to $15 million in finance towards the project, while the Australian Renewable Energy Agency (ARENA) is providing $20.9 million of funding with Neoen contributing most of the balance.

Sandfire’s cash contribution to the project will be less than $1 million.

“Sandfire is pleased to be participating in this project as part of an extensive consortium which brings together the expertise of some of the world’s leading renewable energy companies, backed by significant funding provided by ARENA and the Clean Energy Finance Corporation,” Sandfire Resources managing director Karl Simich said in the company announcement to the Australian Securities Exchange.

“We identified some time ago that solar power presented an exciting opportunity for us to participate in a low-risk renewable energy initiative at DeGrussa and we have no doubt that this project has the potential to be an Australian and possibly a world first – establishing DeGrussa as a reference site for the use of off-grid solar and battery storage technology in the mining industry.

“I would like to take this opportunity to acknowledge the hard work that has been put into this project over the past few months by all of the consortium members and, on our side, by our operations and commercial teams.

“We are very much looking forward to this exciting new addition to our mine site as it is progressively constructed over the second half of this year.

“The project has the potential to reduce the mine’s diesel consumption and is consistent with our relentless focus on driving down costs.

“At the same time, it will reduce our carbon footprint, make an important contribution towards achieving improved environmental outcomes and potentially help promote the use of renewable energy in the Australian mining industry.”

Email: info@sandfire.com.au

Website: www.sandfire.com.au

Vimy confirms ore beneficiation at Mulga Rock uranium project

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THE BOURSE WHISPERER: Vimy Resources (ASX: VMY) has completed commercial scale pilot test work it claims to have confirmed ore beneficiation results for its Mulga Rock uranium project.

According to Vimy, scaled up commercial pilot test work has confirmed uranium mineralisation can be easily beneficiated to produce a highly-concentrated plant feed.

The company claimed the uranium grades it achieved from this ore beneficiation are 2.7 to 3.4 times greater than it had previously scored, with a mass rejection range of 65 to 72 per cent of run-of-mine ore achieved.

Uranium recoveries ranged from 95 to 96 per cent to final concentrate.

“Proving the ore beneficiation results at commercial scale, using a very simple but effective process to recover the uranium mineralisation, has given the team confidence in the beneficiating process route,” Vimy Resources managing director and CEO Mike Young said in the company’s announcement to the Australian Securities Exchange.

“This is truly outstanding work by our technical team and will significantly improve the already robust economics of the project.

“Reducing mill throughput by up to 72 per cent whilst recovering up to 96 per cent of the uranium is simply an exceptional result.”

Website: www.vimyresources.com.au

Duketon Mining inks gold JV with Regis Resources

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THE BOURSE WHISPERER: Duketon Mining (ASX: DKM) and Regis Resources (ASX: RRL) have struck up a gold only exploration Joint Venture over four of Duketon’s exploration licences in Western Australia.

The licences are contiguous with some of Regis’ tenure in proximity to its Moolart Well project.

The joint venture tenure covers approximately 373 square kilometres and hosts a number of shear zones considered to be prospective for gold, including a northern strike continuation of the shear zone hosting Regis’ Petra gold deposit and part of a shear zone extending north of the Garden Well gold deposit.

Regis will make an up-front payment to Duketon of $100,000 and will be required to spend a minimum of $1 million exploring for gold on the tenure, over a two year period, to earn a 75 per cent interest in any mining project its decides to go ahead with.

All non-gold mineral rights remain with Duketon and should Regis not confirm a decision to mine within two years, Duketon gets the gold rights back.

Should Regis decide it does want to mine any gold deposit that may be discovered, Duketon will have the options of:

Participating in a mining joint venture at a 25 per cent contributing interest (subject to some capital funding assistance from Regis);

Selling its interest in the mining project to Regis for $850,000; or

Commuting the interest to a 2 per cent net smelter royalty on all gold produced from the project.

These options will relate to each separate discovery on which a decision to mine is made by Regis.

“This is a great outcome for both companies and a true win-win,” Duketon Mining managing director Stuart Fogarty said in the company’s announcement to the Australian Securities Exchange.

“It allows Duketon to continue to focus on nickel exploration whilst exposing our shareholders to the potential upside of gold exploration by Regis.

“It also achieves a significant cost savings on the maintenance of those tenements.

“Duketon is now well positioned to drive value from three approaches – our nickel exploration programs over our highly prospective 100 per cent-owned tenure, our gold exploration across our 100 per cent-owned tenure which may provide future mining or divestment opportunities and this gold Joint Venture with Regis in respect of four of our tenements over the Duketon Greenstone Belt.”

 

Website: www.duketonmining.com.au

Anatolia’s merger partner makes South Texas move

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THE BOURSE WHISPERER: Anatolia Energy (ASX: AEK) informed the market its proposed merger partner, NASDAQ listed Uranium Resources Inc (URI) has agreed to secure a database of geological information pertaining to its Butler Ranch Project in South Texas.

Anatolia said the deal increases the historical drilling information available to URI, including information in respect of historical resource estimates.

“We commend the team at URI on the innovative non-cash land swap transaction they completed in November 2014, which has effectively provided URI with five highly prospective projects considered amendable to ISR development, and now this follow-on transaction to deliver a significant volume of drilling information for an upfront cash outlay of only US$150,000,” Anatolia Energy managing director Paul Cronin said in the company’s announcement to the Australian Securities Exchange.

“These transactions are smart deals that preserve cash, whilst greatly improving the prospects of URI returning to uranium production in South Texas.

“All five projects acquired by URI are within only 75 miles of the company’s licensed Rosita and Kingsville Dome processing facilities, and although the Rosita plant is earmarked for relocation to Turkey for use at our Temrezli project, any resources discovered on the South Texas properties are expected to be capable of being cost effectively developed by making use of URI’s fully licensed Kingsville Dome processing facility.”

Anatolia explained that validation of the historical resource estimates at the Butler Ranch Project by URI is expected to move it closer to returning to uranium production in the medium term in South Texas.

According to Anatolia URI already has existing In-Place Reserves which are considered recoverable with a stronger uranium price.

Anatolia considers this deal will provide it exposure to a second low-cost uranium production centre, and other benefits that come from having multiple production assets including diversification of cashflow, and increased production scale.

Email: admin@anatoliaenergy.com.au

Website: www.anatoliaenergy.com.au

Talga Resources to collaborate with Haydale on graphene developments

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THE BOURSE WHISPERER: Talga Resources (ASX: TLG) has signed a non-binding term sheet with AIM-listed Haydale Graphene Industries to collaborate on the development of finished graphene composite and ink products.

Talga said the aim of the collaboration is to combine the resources and expertise of the two companies to explore graphene commercialisation opportunities, and deliver technology material solutions to end users at industrial scales.

Haydale owns a proprietary process to functionalise graphene and other nanomaterials while Talga is an emerging large-scale graphene primary producer with the intention to provide basic finished graphene materials to end users or intermediaries for integration into end use applications.

“We are delighted to enter into this collaboration with Haydale who are positioned further down the supply chain from Talga and together provide optimised graphene products tailored for specific applications,” Talga Resources managing director Mark Thompson said in the company’s announcement to the Australian Securities Exchange.

“The speed at which industry will adopt graphene into real world applications is in part linked to the sophistication and nanomaterial handling capabilities of end users.

“In some circumstances, if materials are not in a format that can be mixed directly with the end product matrix, handling techniques can cause varied results.

“Haydale has an established track record at providing these solutions but requires a source of graphitic carbon nanomaterials.

“Talga has a special and large natural source from which to produce low defect graphene, so there is a tremendous opportunity to upscale feed to Haydale’s processes and leverage from existing opportunities that Haydale has created.”

Email: admin@talgaresources.com

Website: www.talgaresources.com

Cobre Montana completes 10 Day Test Run

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THE BOURSE WHISPERER: Cobre Montana (ASX: CXB) has completed producing lithium carbonate from lithium based mica concentrates over a continuous 10 day period fusing mica recovered the Lepidolite Hill deposit, located 55 kilometres south-west of Kalgoorlie, Western Australia.

The Lepidolite Hill deposit forms part of the Coolgardie Rare Metals Venture (80% Cobre and 20% Focus Minerals (ASX: FML)).

The testing involved a custom designed mini-processing plant operating under the supervision of Perth based Strategic Metallurgy.

Cobre indicated lithium carbonate of at least 99.5 per cent purity was produced.

Cobre explained the mini-plant operated for 10 days to produce lithium carbonate for the initial stages of commercial product evaluation.

The lithium carbonate produced during the course of the mini-plant run, will be sent to end-users for evaluation and independent product endorsement.

“Our plan to commence production of lithium carbonate for commercial evaluation by the end of June has been fulfilled with carbonate produced on a steady-state basis,” Cobre Montana managing director Adrian Griffin said in the company’s announcement to the Australian Securities Exchange.

“The ten day test has provided lithium carbonate for distribution to potential end-users but will also provide valuable process information for the design of larger test plants.

“The current program is a critical step towards commercializing disruptive technology for the production of lithium chemicals.

“This very successful test run has demonstrated the ability to process the most common lithium minerals, the micas, on a continuous basis.

“The know-how developed will be applied to other deposits currently under assessment in Western Australia and Western Europe.”

Email: info@cobremontana.com.au

Website: www.cobremontana.com.au

Saracen ends FY with record gold quarter

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THE BOURSE WHISPERER: Saracen Mineral Holdings (ASX: SAR) announced it had beaten its annual gold production target of 145,000 to 155,000 ounces by hitting out 167,531 ounces of gold.

The total was pumped up from record gold production achieved in the June Quarter of 46,563 ounces of gold from the company’s Carosue Dam gold mine in Western Australia.

The company has now completed mining of the Whirling Dervish open pit.

“We finished the pit within 36 hours of the original predicted completion date of 30 June 2015 which we set back in 2012 before mining commenced,” Saracen Mineral Holdings managing director Raleigh Finlayson said in the company’s announcement to the Australian Securities Exchange.

“The pit has been a great success and gives us real momentum and confidence as we embark on our next project at Thunderbox.”

With $44.9 million in cash and bullion, no debt and a hefty ore stockpile, Saracen said it anticipates a further strong production outlook for its next phase of growth at the Thunderbox open pit.

Saracen has a production target of 150,000 to 160,000 ounces from Carosue Dam in the upcoming FY16 at an All-in Sustaining Cost (AISC) of $1025 to $1075 per ounce.

With the addition of Thunderbox, Saracen indicated production is set to double to approx. 300,000 ounces per annum from the two operational centres at an AISC of less than $1075 per ounce within two years.

Email: info@saracen.com.au

Website: www.saracen.com.au

Cobre Montana swoops early to tie up lithium technology

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THE BOURSE WHISPERER: Cobre Montana (ASX: CXB) has made its move 15 months before necessary to exercise an option for new processing license agreements

Cobre explained the agreements will combine its mica-based lithium deposits near Coolgardie, Ravensthorpe and Southern Cross in Western Australia and the Cinovec project in the Czech Republic, with what it claims to be the only known practical processing technology able to extract lithium from sheet like micas.

The process is a proprietary technology developed and owned by Perth-based technology provider, Strategic Metallurgy.

Having exercised the agreements, Cobre Montana now has conditional use of Strategic Metallurgy’s technology for the next 25 years.

“Given the nature of the licenses provided, Cobre has first mover advantage over competitors,” Cobre Montana managing director Adrian Griffin said in the company’s announcement to the Australian Securities Exchange.

Under the terms of the licenses, Cobre Montana will be subject to:

A requirement to continue testing with Strategic Metallurgy;

Gross product royalty of 2%;

License exclusivity for all of Western Australia for 5 years from exercise; and

Exclusivity extended another 20 years if Cobre commits to build a plant anywhere in the world during the initial 5 year exclusivity period;

Two further license options available anywhere in the world, with Cobre having the right to change nominations by agreement with Strategic. One of these licenses has been assigned to the Cinovec project in the Czech Republic where Cobre Montana plans to operate in Joint Venture with European Metals Holdings Limited.

“We have been exceptionally pleased with the test results using this technology and the license agreements provide us with the ability to lock in our position, with no additional outlay as further testing progresses,” Griffin said.

Email: info@cobremontana.com.au

Website: www.cobremontana.com.au

MOD Resources scores well in Mahumo Scoping Study

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THE BOURSE WHISPERER: MOD Resources (ASX: MOD) has completed report scoping level metallurgical test work at the company’s Mahumo copper-silver project in South Africa.

The testwork was carried out using bornite copper sulphide ores from the project and have, according to the company, exceeded results it achieved from shallower chalcocite ores, which were announced in May 2015.

MOD said both Mahumo bornite and chalcocite ore types generated copper recoveries well above 90 per cent into high-grade copper-silver concentrates.

The company has further optimisation testwork planned, which is expected to be carried out during a proposed pre-feasibility study (PFS).

“First pass testwork on a relatively deep bornite rich composite (from 196.6m to 524m depth) has yielded an excellent response to flotation with copper and silver recoveries of 96.6 per cent and 85.9 per cent respectively into a low mass concentrate grading 38.5 per cent copper and 758 grams per tonne silver,” MOD Resources director and metallurgist Steve McGhee said in the company’s announcement to the Australian Securities Exchange.

“This complements the outstanding results already achieved with a shallower chalcocite rich composite.

“Future test work will aim to increase the silver recovery for bornite rich ores.”

MOD explained its Stage One underground scoping study is nearing completion adding that initial results from models based on the preliminary mine design and using costs from comparable mines in the region were positive, providing encouragement in the potential viability of the project.

MOD expects to be able to report detailed outcomes from the scoping study when cost estimates are confirmed by South African mining contractors.

The company also indicated it had made progress in negotiations with companies to assist with the potential development of the Mahumo project, including feasibility studies, which if positive, may continue through to project construction and operations.

Email: administrator@modresources.com.au

Website: www.modresources.com.au