THE BOURSE WHISPERER: Toro Energy (ASX: TOE) has released its Environmental Scoping Document (ESD) for environmental assessment of extending the company’s wholly-owned and advanced Wiluna uranium project in Western Australia.

Toro explained the public release of the ESD is the next step in government environmental assessment and approval processes for the Wiluna project expansion.

Toro already has the approval of the Western Australian and Federal governments to establish a processing facility and commence mining of two of Wiluna’s deposits, Centipede and Lake Way.

The ESD provides information about Toro’s plans to integrate two additional deposits at Millipede and Lake Maitland into an expanded Wiluna project.

The company said the purpose of the ESD is to identify key environmental issues to be addressed during further government assessment of the project, and to identify the work required to complete the environmental review.

The ESD will be on public exhibition until 20 October, allowing interested parties, including members of the public, to make comments about the document to the Western Australian Environmental Protection Authority (EPA).

Toro acknowledged it will be required by the EPA to respond to comments made during the public exhibition period and to then produce a final ESD.

This will guide the preparation of a Public Environmental Review which continues the government assessment and approval process.

Toro Energy managing director Dr Vanessa Guthrie said the company’s latest public consultation is an important step in the environmental assessment process.

“Toro welcomes the opportunity to discuss our plans for the wider Wiluna project with the community, and to explain how the development of the Millipede and Lake Maitland deposits can be undertaken with the environment and local community in mind,” Guthrie said in the company’s announcement to the Australian Securities Exchange.

“Much is already known about the environmental impacts of mining at Millipede and Lake Maitland through previous studies.

“Millipede is immediately adjacent to the Centipede deposit which was approved in October 2012 and April 2013 by the WA and Federal Governments, while the environmental conditions at the Lake Maitland deposit have been extensively studied prior to its acquisition by Toro in late 2013.

“Toro’s overarching strategy for the extended Wiluna project remains to use one central processing plant adjacent to the Centipede deposit to reduce the regional footprint and environmental impacts by avoiding a duplication of operations and infrastructure across multiple deposits.

“We look forward to consulting with the community on our expanded project and remain confident that a thorough and rigorous environmental assessment process for Millipede and Lake Maitland will be implemented by government and can be completed during 2016.”

The ESD can be viewed at the company’s website: www.toroenergy.com.au

Submissions on the ESD must be made to the EPA, not Toro.

They can be made through the EPA consultation hub at: consultation.epa.wa.gov.au

Email: info@toroenergy.com.au

THE BOURSE WHISPERER: Rumble Resources (ASX: RTR) informed the market it has submitted two strategic exploration licence applications adjoining the company’s Big Red project and contiguous to new applications made by the world’s second biggest producer of nickel, Vale in the Fraser Range in Western Australia.

Rumble reported Vale has recently applied for two license applications south of its Big Red project and east of the Thunderstorm project in the Fraser Range, which the company declared has highlighted the quality of rumbles projects.

 

Source: Company announcement

 

Vale owns Voisey’s Bay – one of the largest nickel mines in the world.

Rumble considers Vale’s entry into the region underlines the potential of the Fraser Range to host additional magmatic nickel copper mineralisation in the region.

The two new applications increase the Big Red project to 1491 square kilometres while expanding Rumble’s Fraser Range foot print by 71 per cent.

“Rumble secured this license for nil consideration and will continue to strategically expand its foot print providing Rumble shareholders multiple opportunities to make the next significant nickel discovery,” Rumble Resources said in its ASX announcement.

“Rumble has gained approvals to drill the compelling Voisey Bay style target at Big Red and is in final stage discussions with drilling contractors.

“Drilling is expected to commence in three to four weeks.”

Email: enquiries@rumbleresources.com.au

Website: www.rumbleresources.com.au

THE BOURSE WHISPERER: Peel Mining (ASX: PEX) announced that its wholly-owned subsidiary company Peel (CSP) Pty Ltd has entered into a Memorandum of Agreement (MoA) with Japan Oil, Gas and Metals National Corporation (JOGMEC).

Under the terms of the agreement JOGMEC may earn up to 50 per cent of certain exploration tenements owned by the subsidiary, located in New South Wales, known as the Cobar Superbasin project by funding up to $7 million of exploration expenditure.

Key terms of the MoA are as follows:

Stage 1 – JOGMEC has the right to earn a 40 per cent interest in the Cobar Superbasin project by funding $4 million of exploration expenditure on the project tenements over a period of up to three years;

JOGMEC has the right to earn a further 10 per cent interest in the project tenements, by funding a further $3 million of exploration expenditure on the tenements over a period of up to two further years;

JOGMEC is required to spend a minimum of $500,000 before withdrawing from the agreement;

Subject to JOGMEC earning a vested interest in the project tenements, the companies will form a Joint Venture;

Peel to act as Operator of the project on behalf of the parties during the farm-in and any subsequent JV unless JOGMEC becomes a majority owner, at which point the Operator shall be appointed by JOGMEC;

The MoA is subject to Australian Foreign Investment Review Board approval (FIRB), if required;

JOGMEC has the right to assign its interest in the agreement (this is in line with JOGMEC’s mission, which is to help source and de-risk opportunities for Japanese corporations).

 

Cobar Superbasin project tenements subject to JOGMEC Farm-in agreement. Source: Company announcement

 

“This is a great outcome for Peel at a time when funding for exploration activities is difficult,” Peel Mining managing director Rob Tyson said in the company’s announcement to the Australian Securities Exchange.

“The JOGMEC deal gives Peel a clear path for exploration on the Cobar Superbasin assets in the medium term, and along with the co-funding agreements with the NSW government announced on 22 September 2014, provide Peel and JOGMEC the best opportunity for exploration success.

“Exploration has been ongoing throughout the year and resulted in the delineation of several priority targets which we plan to commence drilling on in the near term.”

Website: www.peelmining.com.au

Doray Minerals: delivering on exploration & production

THE BOURSE WHISPERER: In 2014 Doray Minerals (ASX: DRM) emerged as one of Australia’s highest-grade and lowest-cost gold producers at its flagship property, the Andy Well gold project, located in the Murchison region of Western Australia.

Doray transformed from explorer and developer to producer in under four years and became a successful high-grade gold producer while continuing a progressive exploration program.

Doray Minerals managing director Allan Kelly, who jointly won the coveted 2014 AMEC Prospector Award, said the focus maintained by the Board and management, with the assistance from contractors and consultants, helped ensure the Andy Well gold project succeeded in delivering on its targets time and time again.

“Our first gold pour in August 2013 was the culmination of three and a half years of hard work and a steadfast belief in the project,” Kelly said.

“We proved we could discover, develop and construct the project on time and within budget and produce quality gold.

“Andy Well is estimated to produce approximately 75,000 ounces per year over an initial 3.7 years.

“Quarterly production results prove that Andy Well is a high-grade, economical gold operation – and recent exploration results confirm significant project upside.”

 

The company met its first year production and cost guidance at Andy Well with 76,785 ounces produced at a head grade of 10.8 grams per tonne gold with a cash operating cost of $522 per ounce and an All In Sustaining Cost of $1,044 per ounce.

Quite an achievement for a company in its first year of production.

Revenue from gold sales was $110.3 million, average price received was $1,506 per ounce, and average margin was $462 per ounce for 2014FY.  

The high margins generated in the first year enabled Doray to significantly reduce debt to $13.9 million, which equates to an approximate 75 percent reduction, with $41.1 million repaid or reserved since August 2013.

Doray’s hedging program helped attain the high margins, especially considering the unstable gold price.

Doray hedged 45,000 ounces at $1,620 per ounce to September 2014; 39,000 ounces at $1,505 per ounce between October 2014 and September 2015; with 45 percent of production hedged at $1,547 per ounce between July 2014 and September 2015.

The hedging program has somewhat insulated Doray from the fluctuating gold price and helped ensure a consistent price going forward.

Exploration remains a strong focus for Doray and will continue in the 2015 financial year.

Andy Well’s Judy Lode deposit, located immediately adjacent to the Wilber Lode underground mine, is the second high-grade deposit discovered in the area.

In August 2014 the company announced a 37 per cent increase in the Judy Lode Mineral Resource and a maiden high-grade Judy Ore Reserve of 203,000 tonnes at 8.8g/t gold for 58,000 ounces.

Kelly said the maiden Judy Reserve effectively replaced the reserve depletion from the first year of mining, maintaining the current life of mine at Andy Well.

 

In addition to Judy, a third parallel high-grade gold discovery, the Suzie Zone, was announced in October 2013, and in February 2014 Doray announced the presence of high-grade gold mineralisation within the ‘Kirsty Zone’, adding to the potential extension in mine life.

Horizontal underground drilling across the footwall stratigraphy at Andy Well confirmed multiple parallel mineralised structures including Suzie and Kirsty providing confidence of near term extensions to the Andy Well mine life and also confirmed intersection in the Suzie Zone over one kilometre from the initial discovery area.

Kelly said the Company would focus on consistent production and systematic exploration of near-mine opportunities.

“We will systematically drill out the Suzie and Kirsty structures and this should hopefully result in a step-change in the resource and reserve base – and ultimately mine life – of the project,’ he explained.

“The company is focussed on reaching production targets, delivering strong financial results and accelerating exploration.”

Doray’s exploration strategy in Western Australia has a multi-pronged approach.

“There remains a strong focus on the Andy Well gold project and developing a significant gold camp in the project area,” Kelly continued.

“The strategy also aims to build a footprint of projects within trucking distance of the Andy Well processing plant and includes acquisition and joint venture opportunities into quality gold projects.

“The $17 million capital raising in February 2014 aimed to accelerate near mine and regional exploration, and assisted in acquiring the highly prospective Gnaweeda project in the northern Murchison, which has the potential to add value to the Andy Well gold project in the near term.

“It also helped the company participate in a joint venture project with Alloy Resources Limited at the Horse Well project in the north eastern Goldfields of Western Australia, where a diamond drill hole recently intersected a significant gold mineralised structure.”

Doray has proven that it’s more than just the Wilber Lode, with Judy, Suzie, Kirsty and other parallel zones expected to increase the mine life in the near future, in addition to new joint venture and acquisition opportunities.

“I believe a continued focus on success in exploration, meeting production and cost guidance, and delivering on the stated 2012 Bankable Feasibility Study should see a positive shift for our investors,” Kelly said.

Doray is not just a Western Australian mining success story, it is an Australian one too.

Its swift progression from explorer to quality gold producer has been meteoric, with production figures to challenge its industry rivals.

Doray Minerals is now well-placed to deliver further exploration success and extend mine life.