THE BOURSE WHISPERER: Black Oak Minerals (ASX: BOK) has carried out its first silver pour having recently completed commissioning of the company’s Manuka silver project in central New South Wales.

The company boasted its first silver pour produced 136 kilograms of dore, delivering approximately 4,000 ounces of silver.

Production at Manuka is anticipated to increase progressively over coming weeks to meet its current capacity of around 200,000 ounces of silver per month.

After six months, Black Oak said it intends to then switch processing to treat gold ore trucked from the company’s nearby Mount Boppy gold mine where mining has recently commenced.

“Another milestone has been achieved in our growth strategy,” Black Oak Minerals managing director David Sproule said in the company’s announcement to the Australian Securities Exchange.

“It provides cashflow to underpin the investment required to increase value for our shareholders.

“Entering into the ranks of producers is a significant event for the company, our employees and shareholders.

“We are proud of the achievement, and pleased that these activities have been done professionally and safely; this is a credit to our work team on site.”

Black Oak acquired the Manuka silver project in September 2014.

This purchase included a process plant and infrastructure built at a cost of more than $60 million with a production capacity in excess of two million ounces per year, a 60 million ounce silver JORC Resource, and around 840 square kilometres of exploration ground in the Cobar Basin.

Email: admin@blackoakminerals.com.au

Website: www.blackoakminerals.com.au

THE BOURSE WHISPERER: Platina Resources (ASX: PGM) has received results of a scoping study carried out at the company’s Owendale scandium project by SNC-Lavalin Australia.

Platina said the Study results support the economic and technical viability of the project.

The Study included the development of capital and operating cost estimates to ±50 per cent accuracy for a suitable processing facility.

Platina said its base case for the project is a simple, open pit mining operation which will mine approximately 50,000 tonnes of ore per annum for treatment and concentration on site to produce 30 tonnes of scandium oxide at 99.9 per cent purity.

The Owendale project hosts a JORC 2012-compliant Indicated and Inferred Mineral Resource of 24 million tonnes of scandium grading 384ppm scandium (at a cut-off of 300ppm scandium) and contains a total in-situ content of 9,100 tonnes of scandium metal or 14,000 tonnes of scandium oxide.

“The scoping study results show what we have always understood; that Owendale can be Australia’s first scandium mine with further optional platinum credits and nickel and cobalt,” Platina Resources managing director and CEO Robert Mosig said in the company’s announcement to the Australian Securities Exchange.

“We will commence our environmental, PFS and final BFS studies as soon as possible, subject to securing the requisite financing.

“Off-take discussions will also continue with existing and new parties whilst we progress the final remaining feasibility studies to secure binding agreements.”

Platina explained mining at Owendale is anticipated to take place two to three times per year in small campaigns from shallow open pits.

Basically, the mining will involve conventional shovel and truck open cut mining, most likely located on a shallow, high grade starter pit.

The Owendale project received a boost earlier this year when it was identified that more than 90 per cent of accompanying platinum mineralisation in the Owendale ore was extracted by the HPAL processing technique.

Platina claims this demonstrates Owendale has the potential to become Australia’s first scandium producer with platinum credits.

Having been encouraged by the favourable results achieved by the scoping study, Platina indicated it will immediately initiate a Prefeasibility Study (PFS) followed by a Bankable Feasibility Study (BFS).

The company plans to commence the Owendale PFS and BFS, and remaining environmental studies, subject to finance.

Email: admin@platinaresources.com.au

Website: www.platinaresources.com.au

THE BOURSE WHISPERER: PLD Corporation (ASX: PLD) has completed its due diligence on the Admiral Bay zinc and Rocky Gully nickel-copper project and has subsequently notified Kagara (currently in liquidation), Heron Resources and Third Reef that it intends proceeding with the acquisition of the projects.

PLD described Admiral Bay is one of the largest undeveloped zinc projects in the world, saying it hosts an Inferred Mineral Resource Estimate (MRE) of 72 million tonnes at 6.7 per cent zinc equivalent (ZnEq).

Rocky Gully is located in the Fraser Range, where PLD is exploring for Nova-type nickel-copper deposits.

PLD announced it has signed agreements with two leading mining finance managers, Resource Capital Funds (RCF) and Mining Finance Fund (MFF).

The company said the deals will fund the acquisition of Admiral Bay and Rocky Gully as well as a 24 month work program, involving new technology, innovation and leadership, and ultimately feasibility studies.

A Subscription Agreement has been signed with RCF for a placement of approximately 68 million shares at one cent per share to raise just on $0.68 million.

A Term Sheet for the sale of a one per cent Net Smelter Royalty (NSR) at Admiral Bay, has also been struck for US$5 million.

MFF has signed a Confidential Term Sheet regarding two NSRs at Admiral Bay for US$2.5 million.

Total proceeds from the agreements come to $10.28 million.

“Our $10 million financing underwrites the acquisition and development plan for the projects involving new technology, innovation and leadership,” PLD Corporation managing director Matt Gauci said in the company’s announcement to the Australian Securities Exchange.

“While discussions with potential partners for Admiral Bay will continue, we are satisfied that via these agreements, owning, funding and developing the projects 100 per cent will create more value for our shareholders.”

THE BOURSE WHISPERER: Resources sector services company Sedgman (ASX: SDM) has been awarded an $18.5 million contract as Principal Contractor for a Relocatable Modular Mineral Sands Wet Concentrator Plant to be constructed at Twin Pines Minerals’ (TPM) New Jersey facility in the United States of America.

Sedgman said the facility will eventually process 232 tonnes per hour of heavy mineral sands feed from an existing tailings deposit, producing a concentrate of zircon and ilmenite ready for downstream mineral separation and future processing.

Sedgman’s involvement in the project will entail engineering design, procurement, fabrication and delivery of the modular plant and associated infrastructure, and subsequent construction and commissioning technical support.

The company explained it had been awarded the contract following a front end engineering design and metallurgical test work development phase where it utilised modern processing technologies and developed an innovative, cost effective plant design concept for TPM.
 
“It is exciting to be working with TPM in the United States’ minerals sands market,” Sedgman chief executive officer and managing director Peter Watson said in the company’s announcement top the Australian Securities Exchange.

“We have been working closely with TPM over the last two years to refine the design and delivery model to meet the requirements of this project, and are currently active in developing other near term project opportunities with TPM.

“The modular plant design, delivery and commissioning is a great example of our Global Minerals Strategy in action involving inputs from multiple offices to offer TPM state of the art design delivered in a cost effective and timely manner through our Shanghai procurement hub.

“It is also strategically important as Sedgman was an active participant in minerals processing in the United States market up until 2006.

“This project gives a solid foundation to re-establish our presence in the North American market and continue strengthening our relationship with TPM.”

Detailed design has commenced on the project with completion scheduled for March-April 2016.

Website: www.sedgman.com

THE BOURSE WHISPERER: Citigold Corporation (ASX: CTO) has reached an agreement with Kingsford Investment Groups (KIG) for the investment of $72 million into a joint venture (JV) to develop the company’s Charters Towers gold field in Queensland.

Citigold will manage the project on behalf of the JV.

In its announcement to the ASX, Citigold said the incorporated JV will expand the underground operations at Charters Towers with the intention of moving back into low cost sustained gold production.

The Central area of the goldfield will be the JV’s initial focus with the Imperial area to be brought on stream once Central is cash flow positive.

The Central and Imperial are the two main access declines into the Charters Towers gold mine.

All the ore will be processed in an existing centralised processing facility.

Citigold explained the JV aims to turn this gold deposit into a large-scale gold mine with an initial annual production of 50,000 ounces of gold growing to over 300,000 ounces of gold per annum at completion of the planned expansion.

The principle terms of the agreement include:

Offtake
All gold produced is sold to KIG at market prices;

KIG payments
KIG’s interest will be earned in the JV after the receipt of the $72 million total investment due to be paid as follows; i. $10 million on or before 6 May 2015; and ii. $62 million on or before 10 June 2015.

KIG interest in JV after the required payments are made will be 60 per cent of the incorporated JV.

The JV Board
Once KIG has completed the investment the Board will comprise of a total of five members with KIG appointing three and Citigold appointing two persons.

The farm-in JV will commence when the initial funds are received from KIG.

“We are excited to be joining with KIG to develop Citigold’s 100 per cent-controlled high-grade gold field at Charters Towers,” Citigold chairman Mark Lynch said in the company’s announcement to the Australian Securities Exchange.

“This JV creates a win-win for Citigold and KIG as it provides the required capital to develop the Charters Towers gold field delivering all stakeholders directly and indirectly whilst also providing KIG with opportunities in their other business areas.

“The combination of our management, the solid foundation in place for expansion at Charters Towers and KIG has created a partnership which can deliver a highly successful and sustainable project.”

Website: www.citigold.com