THE BOURSE WHISPERER: The resilience of the small end of town exploration sector continues to deliver new opportunities as companies look for new opportunities.

NEVADA COPPER JOINT VENTURE

Metal Bank (ASX: MBK) has entered into an agreement with Mason Valley Copper Properties (MVCP) to farm into the Mason Valley copper project, located within the Yerington Copper District of Nevada in the United States of America.

Metal Bank described the Yerington camp as a significant copper district with a NI43-101 resource base of over 12 million tonnes of copper and past production of approximately one million tonnes of copper.

The project includes three main historical underground copper mines (high-grade copper skarn style deposits) with average mined grades of between 2 per cent to 6 per cent copper.

Metal Bank indicated future exploration targeting resource development will focus on extensions to the skarn mineral systems that hosted the high-grade copper orebodies, which the company said pretty much remain open at depth and along strike.

A number of high-priority geophysical targets occur coincident along strike to the existing min, which the company believes could potentially represent new copper rich skarn systems.

Metal Bank explained that past exploration and drilling (modern and historical) over the Mason Valley mining camp has been limited due to previous fragmented ownership of the mining claims/tenure.

Under the new agreement the entire Mason Valley mining camp, including three high-grade historical copper mines has been secured under 10 square kilometres of contiguous claims.

The partnership has access to historical documentation for these three mines, which collectively produced approximately 3.8 million tonnes at a grade of 1.5 per cent to 6.2 per cent copper from 1910 to 1931.

These three copper mines are:

Mason Valley Mine – historical production of 1.7 million tonnes at 2.5 per cent to 6 per cent copper;

Bluestone Mine – historical production 1.5 million tonnes at 1.5 per cent to 3.5 per cent copper; and

Malachite Mine – historical production 0.6 million tonnes at 3.5 per cent to 6.2 per cent copper.

“The Mason Valley copper project is in a low risk, pro-mining district that is undergoing a significant mining revival with 12 million tonnes of copper metal in resources currently at feasibility or mine development stage,” Metal Bank chair Inés Scotland said in the company’s announcement to the Australian Securities Exchange.

“With the establishment of this Joint Venture, we are able to apply modern exploration and resource development to a highly prospective area that has previously seen limited activity as a result of fragmented ownership of the mining claims.

“While the majority of the district’s copper inventory is contained in large porphyry style deposits being developed by majors such as Freeport McMoRan, it is the higher grade skarn style systems that represent the priority target for MBK.”

ACQUISITION OF GOLD PROJECT IN NORTHERN SWEDEN

Dragon Mining (ASX: DRA) has executed a conditional Sale and Purchase Agreement with the Bankruptcy Estate of Lappland Goldminers Fäboliden AB to acquire the Fäboliden gold project in northern Sweden.

Dragon said the Fäboliden gold deposit is a potential source of open pittable material that could be processed at the company’s nearby, fully-owned Svartliden production centre.

In consideration for the acquisition, Dragon Mining will make staged payments to the Bankruptcy Estate comprising:

6 million SEK (A$0.95million) within 10 business days of receiving confirmation the pledgees in the Bankruptcy Estate approve the Agreement;

24 million SEK (A$3.79million) within ten business days from the date of a final, legally binding and unappealable granting by the appropriate court of the extension of the start-up time set out in the Environmental Permit of at least four years; and

10 million SEK (A$1.58 million) on or before the date 18 months after the Completion Date (being the seventh day following the fulfilment of the two conditions: i. a final, legally binding and unappealable granting by the appropriate court of the extension of the start-up time set out in the Environmental Permit of at least four years; and ii. a final, legally binding and unappealable approval from the Mining Inspectorate of Sweden or an approval from the Swedish Government of the transfer of the Exploitation Concession to Dragon Mining.

If the conditions are not achieved within two years of execution of the Agreement, the Agreement shall be considered void and payments reversed, apart from 0.25 million SEK (A$0.04 million) that will be retained by the Bankruptcy Estate.

“The company is very pleased to have secured the acquisition of the Fäboliden gold project,” Dragon Mining executive director Brett Smith said in the company’s ASX announcement.

“Fäboliden represents an advanced project that was previously explored as a large tonnage-low grade gold project.

“Dragon Mining, however, intends to focus on the identified narrower, near-surface higher grade zones within the lower grade envelope that could be more amenable to open pit mining and processing at Svartliden.

“Metallurgical test work and processing of a 1000 tonne sample at the Svartliden Plant has confirmed Dragon Mining’s ability to process material from Fäboliden.

“The existing infrastructure at Svartliden, including the CIL plant and tailings disposal will enable the company to potentially develop an operation at a greatly reduced cost and smaller environmental foot print compared to the original Fäboliden concept.”

Dragon Mining declared it intends to commence activities immediately at Fäboliden, staring with a diamond core infill drilling program targeting the near-surface, higher grade gold mineralisation.

THE BOURSE WHISPERER: Sirius Resources (ASX: SIR) has commenced development of the Nova nickel mine and construction of associated infrastructure.

Sirius kicked off mining operations on the Australia Day public holiday having received final statutory approvals required for the commencement of operations on the mining lease.

The milestone comes two and a half years since the discovery of Nova, and exactly on the project’s planned timeline.

Sirius already had pre-positioned contractors on site in anticipation of the approvals for mining operations to begin, which are now underway alongside other key construction activities.

The competitive nature for contractors being generated by the current state of the industry has enabled Sirius to identify capital cost savings of $30 million on the original Definitive Feasibility Study estimate of $473 million, bringing that figure down to $443 million.

“We have started the project on time, on plan and significantly within original capex budget estimates,” Sirius Resources managing director Mark Bennett said in the company’s announcement to the Australian Securities Exchange.

“I would like to thank the WA Environmental Protection Agency, the Department of Mines and Petroleum, and the Department of Environment Regulation for their professional and efficient participation in this process.

“It is also pleasing to continue involving local stakeholders such as the traditional owners and local pastoralists in the venture.

“Our project management team have done a great job getting Sirius to this point so smoothly, so quickly and with the benefit of significant savings.”

Initial mining of the boxcut (the small open pit excavated to access fresh rock from which the underground decline starts) is expected to take approximately three months to complete.

 

Start of mining at Nova – the boxcut site on Australia Day, Monday 26th January 2014. Source: Company announcement

 

Immediately following this, mining of the underground decline to access the Nova orebody will commence.

The exploration camp is currently being expanded and converted to become a 200 person temporary construction camp to house the workforce whilst the main accommodation village is being built.

This work is due to be finished in March 2015, and the permanent accommodation village is expected to be completed by August 2015 at a cost of $23 million.

Email: admin@siriusresources.com.au

Website: www.siriusresources.com.au

THE BOURSE WHISPERER: Australian Bauxite (ASX: ABX) has received development approval from Northern Midlands Council for mining to commence at the company’s Bald Hill bauxite mine in northern Tasmania.

The company wasted no time in immediately securing the site, with an emphasis on public safety.

Construction is too soon commence on ore haulage roads and fences within the Mining Lease.

Australian Bauxite has reached an agreement with the Council that it will conduct remedial work on Macquarie Road and West Street, Campbell Town prior to commencing cartage.

The company indicated the work will be coordinated with the Council and will commence as soon as possible on the areas requiring remediation, which were identified by a deflectograph test recently conducted on behalf of ABX.

 

Locations of ABX projects and Infrastructure in Tasmania. Source: Company announcement

 

“The final approval by Northern Midlands Council paves the way for Australian Bauxite to commence mining operations on schedule – a credit to all concerned,” Australian Bauxite chief operating officer Leon Hawker said in the company’s announcement to the Australian Securities Exchange.

“Our expectation is that 45 direct jobs will be created at the mine, in transport, at Bell Bay Port and in administration as a consequence of the Bald Hill mine.

“A multiple number of additional indirect jobs will arise as operations expand.

“This is the first new bauxite mine in Australia for over 35 years and will introduce a new bauxite supply into the seaborne bauxite market when the market is strong.

“We look forward to continuing and further developing the relationships that have been built in Tasmania.

“ABX can only operate with a strong social licence and however modest our contribution to local jobs, industry and the economy may be, we will make every effort to meet the expectations of our diverse stakeholders.”

Email: corporate@australianbauxite.com.au

Website: www.australianbauxite.com.au

THE BOURSE WHISPERER: The regular game of musical chairs continues within the boardrooms across the resources industry.

Director Resignations

BC Iron (ASX: BCI) announced that Mike Young, Malcolm McComas, and Peter Wilshaw have resigned as non-executive directors of the company.

These resignations reduce the Board from eight to five, comprising the chairman, the managing director and three non-executive directors.

BC Iron said the resignations reflect recent Board discussions to reduce its size in the current iron ore price environment.

The Board has also resolved to reduce the fees of the remaining non-executive directors.

“BC Iron wishes to acknowledge the material contributions from each of Mike Young, Malcolm McComas and Peter Wilshaw,” BC Iron chairman Tony Kiernan said.

“They have initiated this change and we thank them sincerely for their particular contributions to the Board and the company.”

Retirement of Director

Adelaide Resources (ASX: ADN) announced John den Dryver has retired from his role as a director of the company.

Den Dryver joined the Board of Adelaide Resources almost 10 years ago as a non-executive director, a position he has held since that time.

Prior to joining Adelaide Resources he held senior managerial and executive positions with a number of resources companies.

In addition to his non-executive role at Adelaide Resources, he has also acted as a non-executive director for a number of other ASX-listed resources groups.

Appointment of Managing Director

Southern Cross Goldfields (ASX: SXG) announced David Sproule has assumed the positions of managing director and chief executive officer.

Sproule was appointed executive director in September 2014 to focus on bringing the company’s projects into production over the next 12 month commencing with the Manuka silver and Mt Boppy mines.

Managing Director resigns

Spectrum Rare Earths (ASX: SPX) announced Ian Bamborough will cease employment as managing director of the company at the completion of his current contract term on 30 November 2014.

Bamborough has served more than seven years in this position having been appointed a few months after the company’s listing on ASX in 2007, and has been responsible for the discovery of the company’s suite of rare earths prospects, including Quantum, Stromberg and Skyfall.