Genesis Minerals picks up Ulysses gold project

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THE BOURSE WHISPERER: Genesis Minerals (ASX: GMD) has acquired the Ulysses gold project, located approximately 30 kilometres south of Leonora and approximately 200km north of Kalgoorlie in Western Australia.

The project, which is being acquired from a private party, contains the Ulysses deposit which comes with an estimated Indicated and Inferred Resource of 2.1 million tonnes at 2.1 grams per tonne gold for 138,000 ounces.

The Ulysses deposit was mined by Sons of Gwalia in 2002 producing 24,985 ounces of gold.

Once the acquisition has been done, Genesis said it intends to complete, over the next six months, drilling to upgrade its confidence in the resource, extend the orebody at depth and along strike and undertake a mining study on the deposit.

The company said scoping studies had recently been completed on the current resource, which indicate potential for high-grade open pit development with toll treatment of ore and low capital start-up costs.

The company said believes, subject to the results of an upcoming drilling program and a positive mining study, it can bring the project into production within a nine to 18 months timeframe.

The Ulysses deposit is located on a granted Mining Lease 40/166 close to mining infrastructure, which Genesis considers may allow toll treatment of ore from Ulysses.

“This acquisition, when completed, will allow the company to achieve rapid growth through its strategy of acquiring projects with excellent potential for defining shallow, high-grade gold resources capable of being rapidly and efficiently advanced towards development,” Genesis Minerals said in its AX announcement.

“This complements Genesis’ ongoing strategy at its 100 per cent-owned Viking project to the south where it is drill testing a series of targets for high-grade, shallow gold resources with access to infrastructure and nearby toll treatment options.”

Email: info@genesiminerals.com.au

Website: www.genesisminerals.com.au

Anatolia Energy to merge with US-based Uranium Resources

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THE BOURSE WHISPERER: Anatolia Energy (ASX: AEK) has announced a merger with NASDAQ-listed uranium play Uranium Resources.

The prize for Uranium Resources is access to Anatolia’s Temrezli uranium project in central Turkey, and for Anatolia, is the ability to fast-track Temrezli through to production.

Once the deal is completed the new entity, under the Uranium Resources moniker, will be listed on both NASDAQ and ASX.

In the release to the ASX announcing the merger, Anatolia highlighted the benefits of the merger.

These include:

The combination of Uranium Resources’ in-house technical abilities and operational ISR experience, stronger balance sheet and existing ISR processing infrastructure. This will be put to work developing the Temrezli project, which both companies consider to provide the best avenue for to low cost uranium production for both Anatolia and Uranium Resources shareholders;

The creation of a larger, international uranium development company, with a combined market capitalisation of approximately US$68.1 million ($88.7 million);

The deal provides shareholders exposure to an extensive project portfolio consisting of the Temrezli project and associated exploration tenements in Turkey as well as mid-term and long-term uranium exploration projects in South Texas and New Mexico in the USA; and

Potential to improve the economics of the Temrezli project through reducing upfront capital costs and other additional synergies identified through the potential to utilise and relocate Uranium Resources’ Rosita processing plant in South Texas;

“The Merger with Uranium Resources provides an excellent solution to Anatolia’s current objectives to advance Temrezli into production as quickly and efficiently as possible, and brings with it the possibility of greatly reducing the upfront capital costs if we can successfully relocate and utilise Uranium Resources’ Rosita ISR processing plant in South Texas as currently expected,” Anatolia Energy managing director and CEO Paul Cronin said in the company’s announcement to the Australian Securities Exchange.

“The Rosita processing plant had major upgrades and additions in 2007-2008 before construction was halted.

“It is fit for our Temrezli project, and has the added benefit of already being designed and constructed with the ability to scale up the production profile from 800,000 pounds uranium per annum to 1.6 million pounds uranium per annum with some additional upgrades, which would accommodate potential future production from satellite operations that may feed into the Temrezli central processing plant.

“We’re very pleased to be partnering with the professional team at Uranium Resources, who have a lot to offer in terms of hands-on ISR operations experience, not to mention the benefit of bringing in-house a lot of the specialist skills that Anatolia would otherwise have been outsourcing as we transition from explorer to developer and then producer in the period ahead.”

Website: www.anatoliaenergy.com.au

Caravel strikes new Farm-In for Calingiri

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THE BOURSE WHISPERER: Caravel Minerals (ASX: CVV) has received a pat on the back from one of its main shareholders, First Quantum Minerals, in the form of a Farm-in Agreement for the company’s flagship Calingiri copper-molybdenum project in Western Australia.

Under the terms of the agreement, First Quantum has the right to contribute $3.6 million to ongoing exploration activities to earn a 50.1 per cent interest in the Calingiri project.

First Quantum Minerals is a global resources group with an impressive market cap in excess of $13billion.

The group currently operates seven mines producing copper, nickel, gold, zinc and platinum group metals from locations across Australia, Africa and Europe.

It also has five developmental projects located in Zambia, Peru and Panama, from which it expects to increase annual copper production capacity to more than 1.3 million tonnes per annum.

The Farm-In agreement is the third investment by First Quantum in Calingiri, which Caravel considers to be a demonstration of its confidence in the project’s potential.

“This is a tremendous vote of confidence in the quality and potential of the Calingiri project by one of the world’s most successful copper mine developers and producers of the past 15 years,” Caravel Minerals chief executive Marcel Hilmer said in the company’s announcement to the Australian Securities Exchange.

“The proceeds from the FIA will be used to execute the next phase of exploration activities at Calingiri that will significantly advance the project.

“Our recent successful drilling programs have already established Calingiri as potentially one of the largest bulk tonnage deposits for copper and molybdenum in Australia, with an endowment potential well in excess of 1.4 million tonnes of copper metal.

“Our focus now is to increase our exploration targets, establish JORC compliant resource for the project and to advance Calingiri towards a Scoping Study.

“With this additional funding injection, we will be well placed to move towards achieving these objectives.

“Caravel is looking forward to continuing its long and successful relationship with First Quantum Minerals.

Website: www.caravelminerals.com.au

St George completes Share Placement to raise $1.05M

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THE BOURSE WHISPERER: St George Mining (ASX: SGQ) has completed a share placement to raise $1.05 million.

The raising resulted from the issue of 15 million shares at 7 cents per share with Alto Capital acting as lead manager to the placement.

St George said the funds raised will be used to continue exploration activities at the nickel sulphide prospects at the company’s 100 per cent-owned East Laverton property in Western Australia.

The company recently announced a major drilling program at East Laverton, which it is about to commence.

“We are very pleased with the support from investors who recognise the significant potential of our project and the deep value created by our systematic exploration to date,” St George Mining executive chairman John Prineas said in the company’s announcement to the Australian Securities Exchange.

“The funding we have secured will ensure we can maintain the momentum of our exploration throughout the upcoming drilling program, which is testing several outstanding targets for massive nickel sulphides.”

St George indicated it was now reviewing oversubscriptions it received for the placement and is considering how it may place an additional 5.4 million ordinary shares on the same terms.

Website: www.stgm.com.au

Ramelius Board approves Vivien gold mine

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THE BOURSE WHISPERER: The nodding heads surrounding the Boardroom table of Ramelius Resources (ASX: RMS) has given the go-ahead for commencement of mining at the company’s Vivien gold project, located near Leinster in Western Australia.

The company said the approval to commence mining at the Vivien gold mine rounds-out the implementation phase of its new projects in the north-eastern goldfields of WA.

These projects will provide high-grade feed to the low-cost Mt Magnet treatment plant.

The approval coincides with a $10 million finance facility the company has negotiated with the Commonwealth Bank of Australia.

In order to lock in operating margins over Mt Magnet production and the Vivien and Kathleen Valley mine developments, Ramelius has entered into further forward gold sales for 39,489 ounces over the next two years.

“The forward sales, including others secured in February 2015, now total 86,689 ounces at an average hedge price of $1,570 per ounce and represent approximately 40 per cent of the Group’s total gold production forecast over the period,” the company said in its ASX announcement.

Email: info@rameliusresources.com.au

Website: www.rameliusresources.com.au

Valence achieves very coarse graphite flake production at Uley

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THE BOURSE WHISPERER: Valence Industries (ASX: VXL) has produced a graphite product mix including larger proportions of large flake graphite than expected from metallurgical analysis at the company’s Uley graphite plant during the first stage of the commissioning.

Valence said it was pleased with the results indicating the larger flake graphite generally commands a higher price in the graphite market.

The product mix includes more than 71 per cent in larger flake sizes with size distribution including:

9 per cent reported as extra-large coarse flake graphite (+500 microns (μm) or +35 to 24 mesh) (Super-Jumbo flake)

24 per cent reported as large-coarse flake graphite (+300μm or +50 to 35 mesh) (Jumbo flake)

28 per cent reported as coarse flake (+180μm or +80 to 50 mesh) (Very large flake) and

10 per cent reported as medium flake (+150μm or +100 to 80 mesh)

Purity levels achieved ranged between 90 per cent and 95 per cent based on the production processing runs to meet different customer needs.

“The results from production processing at our existing plant demonstrate the unique quality and value of the flake graphite from our Uley graphite project,” Valence Industries CEO and managing director Christopher Darby said in the company’s announcement to the Australian Securities Exchange.

We can produce very coarse flake in volumes and sizes that will demand premium pricing in the graphite market.

“Multiple customer contracts and multi-year MoUs signed for up to 37,000 tonnes per annum attest to the demand for our quality products.”

Email: info@valenceindustries.com

Website: www.valenceindustries.com

Mincor Resources Kambalda restructure drops 50 jobs

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THE BOURSE WHISPERER: Mincor Resources (ASX: MCR) announced a new mining plan for the company’s nickel mines in Kambalda Western Australia, which will result in the loss of around 50 jobs.

Workers at the company’s Miitell and Mariners mines will be retrenched of the revised mining plan, which Mincor said was part of a new strategy to maximise operating margins and the development of its new growth projects following a recently completed review of the company’s mining operations.

The company said the review was in response to the weakness in the nickel price, which it indicated had fallen sharply through the financial year and remains at multi-year lows.

Mincor will suspend capital development at its Miitel mine, having already stopped it at the Mariners mine and proceed with stoping-only operations at both mines.

On this basis, Mincor expects to produce approximately 120,000 tonnes of ore at 2.8 per cent nickel between June and November 2015, and to achieve its previously stated production target for FY2015 of approximately 8,500 tonnes of nickel-in-ore.

Mincor will be reviewing operations at Miitel and Mariners through the second half of the year in respect to the current nickel price with a view to recommencing capital development and ramping up production from those mines or reducing production after November to focus primarily on the development of its new growth projects at Burnett, Cassini, Voyce and Durkin.

The company expects the revised mining plan will optimise mining cash flows while the initial studies are completed on these new projects.

This will also leave substantial undeveloped Ore Reserves available for future mining at both Miitel and Mariners when the price picks up again.

Mincor stressed the plan is reversible at any time, should the nickel price improve.

Detailed resource modelling is currently underway on the Voyce, Durkin and Burnett projects, while Cassini is undergoing conceptual scoping studies in order to determine drilling priorities for the recommencement of diamond drilling.

In addition, planning for an aircore drilling program over the un-explored northern half of the Cassini magnetic anomaly is well-advanced.

“Our revised mining plan will optimise cash flows and allow us to re-build production at both mines in due course, while giving us the scope to complete the drilling and evaluation of our four exciting new growth projects,” Mincor resources managing director David Moore said in the company’s announcement to the Australian Securities Exchange.

“Based on our strong ore reserve position and these new discoveries, the future outlook for Mincor remains compelling.

“Consensus forecasts for the nickel price are very strong and the changes announced today will give us a solid foundation on which to build our next decade of profitable nickel mining in Kambalda.”

Email: info@valenceindustries.com

Website: www.valenceindustries.com

KBL Mining commences development of Pearse gold deposit

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THE BOURSE WHISPERER: KBL Mining (ASX: KBL) has commenced development works at the Pearse Open Cut, within the company’s Mineral Hill project in New South Wales.

KBL said production is scheduled commence in August 2015 with operations initially focusing on extraction of transitional and sulphide ore, which will be processed through the existing mill flotation plant with the tails being stored for processing when the CIL plant comes online in
November 2015.

“The beginning of development of Pearse is another significant milestone,” KBL Mining managing director Brian Wesson said in the company’s announcement to the Australian Securities Exchange.

“Following the recent financing the company is now accelerating operations and development with mining of Pearse open pit beginning in June and the production of ore from August 2015.

“The extraction of ore from Pearse will have a significant positive impact on the company’s cash flow.”

The Pearse deposit has a current Proven and Probable Ore Reserve of 235,000 tonnes at 6.9 grams per tonne gold and 72g/t silver.

KBL indicated an update on the reserve is expected to be finalised during June 2015.

The pit is planned to supply approximately 30,000 tonnes of ore per month for 9 to 10 months from August 2015, based on a 1.5g/t gold cut off.

KBL modelling has estimated production forecasts of 35,000 ounces to 40,000 ounces of gold and 280,000 ounces to 290,000 ounces of silver, in a combination of concentrate and gold bullion.

KBL said it already has marketing arrangements in place for the sale of the gold concentrates, while the bullion is expected to be refined and sold through a local mint.

Website: www.kblmining.com.au

Potash West L-Max technology plant commissioned

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THE BOURSE WHISPERER: Potash West (ASX: PWN) announced the construction of a small processing plant utilising the company’s 25 per cent-owned L-Max process.

Potash West is a mineral exploration company focused on developing phosphate and potassium greensand deposits in West Australia’s Perth Basin.

As part of this development Potash West, with Strategic Metals (SM), developed the K-Max process to treat glauconite to produce potash and other minerals. This IP is owned 100 per cent by PWN.

Subsequent to this SM developed the L-Max process, for lithium bearing micas, of which it agreed to vest 25 per cent ownership to PWN.

The technology has been taken up by Lepidico Ltd, which has constructed and operated a continuous process operation, using a small scale plant, to produce lithium carbonate from lepidolite, a lithium-rich mica.

PWN and SM are in the process of transferring the ownership of Li-Technology to Lepidico, in exchange for shares.

Lepidico task is to now commercialise the technology.

As far as that goes Lepidico has been fast tracking the development of the L-Max process to ensure it can complete that task.

The first laboratory tests were only conducted in September 2014 and since then Lepidico claims to have confirmed the complete process, from ore to final products, through batch laboratory tests, and computer modelling.

With the mini-plant, Lepidico aims to confirm process parameters when the process is operated on a continuous and closed circuit basis as would be the case in a commercial plant.

Continuous operations were carried out, using Lepidolite ore supplied by Cobre Montana (ASX: CXB).

“This is an important step in the development of the L-Max technology and the demonstration of its applicability to lithium extraction,” Potash West managing director Patrick McManus said in the company’s announcement to the Australian Securities Exchange.

“The mini-plant will be a great asset for Lepidico to trial micas from other deposits, and will provide data to support the commercialisation of the process.

“In addition the operation of the plant provides data that will feed into the further development of the K-Max process.”

Email: info@potashwest.com.au

Website: www.potashwest.com.au

Vimy Resources bags $30M funding package

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THE BOURSE WHISPERER: Vimy Resources (ASX: VMY) is set to raise $5 million through a placement of 16.67 million shares at 30 cents per share to Resource Capital Fund.

On top of the placement, RCF has also conditionally offered to provide an additional $25 million of funding in the form of a royalty and bridging loan.

Vimy anticipates the $5 million proceeds from the placement will enable it to complete a pre-feasibility study on the company’s 100 per cent-owned Mulga Rock uranium project (MRUP) northeast of Kalgoorlie in Western Australia.

The pre-feasibility study is expected to be delivered in Q3 2015.

Vimy has accepted RCF’s in-principle offer of additional funding of $25 million, comprising:

$10 million cash in exchange for a 1.15 per cent royalty on all revenue from the MRUP; and

A $15 million, unsecured bridging loan with a 31 March 2017 repayment date (subject to the occurrence of accelerated repayment events).

“We are very happy to have RCF’s support for the Mulga Rock uranium project,” Vimy Resources CEO and managing director Mike Young said in the company’s announcement to the Australian Securities Exchange.

“The recently released Scoping Study confirmed our belief that we have one of Australia’s best undeveloped uranium projects, viable at today’s long term pricing.

“RCF’s funding package will provide the funds we need to complete our studies and secure project financing for the MRUP.”

Website: www.vimyresources.com.au