Share Collective Aims to Take Mystery Out of Resources Investment

THE CONFERENCE CALLER: At the 2019 Gold Coast Investment Showcase, The Roadhouse met Tyson Keen CEO of Share Collective.

A quick squiz of the Share Collective website tells you it provides punters with a, “unique opportunity to view any mining project in the world with transparency”.

“It brings critical data to your fingertips, enabling you to compare and contrast any mining project in the world.

“This catalysis intelligent discussion and understanding for the entire industry.”

We asked Keen to fill us in on what that all means and what Share Collective has to offer to assist investors to part with their money in a more informed way.

 

 

Email: customercare@sharecollective.co

Web: www.sharecollective.co

 

 

Last Look at Resources Companies Presenting at Gold Coast Investment Showcase

THE CONFERENCE CALLER: The 2019 Gold Coast Investment Showcase kicks off next week and The Resources Roadhouse continues its look at companies that will be in attendance.

 

Venture Minerals (ASX: VMS) has upgraded the Resources at the company’s Riley iron ore project in Tasmania.

Venture Minerals announced the upgrade as part of the ongoing iron ore mining study underway at the Riley project that has updated the JORC Code 2004 maiden resource statement of 2 million tonnes at 57 per cent iron to meet the guidelines of the JORC Code 2012.

The company indicated the upgrade coincides with release of the tender documents to be released this coming week to contractors for the mining, processing and haulage components of the Riley DSO project, from which the resultant prices will be used in the updating of the mining study.

Venture said that as part of the mining study update, the Riley ore reserves will also be upgraded to JORC Code 2012 so that a decision to recommence mining can be made at the earliest opportunity by the Board.

Following a favourable study outcome and a decision to mine, Venture’s goal is to commence iron ore production in Q4 2019.

“The resource upgrade and the imminent release of the tender documents for the three main contracts of the Riley Mine are significant steps towards completing the updated mining study,” Venture Minerals managing director Andrew Radonjic said.

Venture Minerals’ Resource upgrade follows firm commitments under a Share Placement to sophisticated and professional investors.

Venture Minerals is raising just over $1.5 million through the issue of around 78 million Ordinary Shares at an issue price of two cents per share.

The company explained the raised funds will provide certainty that it will be funded to progress the development of the Riley iron ore project in Tasmania should a positive decision to mine be reached by the Board.

“The Placement and the fully underwritten Entitlement Offer secures key funding capacity for Venture to progress the updated feasibility study on the Riley iron ore project during a time of significant strength for global iron ore markets,” Radonjic said.

“The recently executed off-take agreement for the Riley project provides strong market validation that the Riley product will be highly sought after.

“The Fully Underwritten Entitlement Offer provides all shareholders the opportunity to participate in the future of the company as we enter an exciting phase of working towards potentially bringing Australia’s next iron ore mine into development.

“With the iron ore price recently breaking through US$100 a tonne, the outlook for the iron ore sector is positive and the Riley project will benefit from a quick-to-market development status by leveraging circa 90 per cent of the required equipment that was previously purchased in 2014 being still on hand.

“The Board looks forward to completing the updated feasibility study on the Riley iron ore project and updating the market on its outcome in the near term.”

Venture has also invited eligible institutional shareholders to participate in a Fully Underwritten Institutional Entitlement Offer.

 

Meteoric Resources (ASX: MEI) recently completed the acquisition of the highly prospective Juruena and Novo Astro gold projects in Brazil from Crusader Resources (ASX: CAS).

The Juruena and Novo Astro projects cover an area of approximately 770 square kilometres, comprising 24 tenements, located on the western end of the highly prospective Alta Floresta Belt, which is host to major miners including Anglo American and Vale.

Geologically, the Alta Floresta belt is a Paleoproterozoic, east west trending, continental magmatic arc, estimated to have produced over seven million ounces of gold to date.

The Alta Floresta Belt is arguably the most desirable gold exploration destination in Brazil.

The Juruena project hosts a JORC (2012) Compliant Resource Estimate of 1.3 million tonnes for 261,000 ounces of gold at 6.3 grams per tonne.

“The formal completion of the Acquisition of Juruena and Novo Astro marks the commencement of the next exciting stage of development for Meteoric as we move to commence exploration,” Meteoric Resources managing director Dr Andrew Tunks said.

Tunks advised that he was travelling to site to join Meteoric operations manager Peter Sheehan and the company’s Brazilian team to finalise the initial drilling plan for the Dona Maria and Querosene prospects, the two most advanced targets on Juruena.

“These prospects already contain a combined high-grade JORC 2012 Mineral Resource Estimate of 436,000 tonnes at 14.7 grams per tonne for 205,000 ounces it is our intention to complete further drilling at these bonanza grade prospects,” Tunks continued.

“This is truly an exciting time for the company and its shareholders as we move into gold exploration in what we believe is one of the most prospective regions in the world, the Alta Floresta Belt in Brazil, which is home to majors including Anglo American and Vale.

“Since the announcement of the Acquisition back in April, the Meteoric team – myself included – have been itching to get on the ground and start exploration and I am simply thrilled that we are now mobilising.”

 

Companies of Interest Presenting at Gold Coast Investment Showcase

THE CONFERENCE CALLER: The 2019 Gold Coast Investment Showcase is just two weeks away and The Resources Roadhouse continues its look at companies that will be in attendance.

 

Pioneer Resources (ASX: PIO) informed the market of TSX-listed Novo Resources Corp.’s intention to enter into a US$30 million farm-in and Joint Venture agreement with Sumitomo Corporation of Tokyo, Japan, and its wholly-owned Australian subsidiary.

The aim of the JV is to advance Novo’s Egina project located approximately 80 kilometres south-southwest of Port Hedland in Western Australia.

The Egina project includes Pioneer Resource’s Kangan gold project, where Novo is currently earning an interest under a binding memorandum of agreement that has now been replaced with a new agreement on essentially the same terms that allows Sumitomo to become a party to it.

Pioneer retains a 30 per cent free-carried interest in the Kangan project up to a decision to mine, after which it becomes a contributing JV partner.

Pioneer explained that Sumitomo, via an Australian subsidiary, has agreed to join Novo in spending $460,000 within the next 18 months to earn a joint 70 per cent interest in the Kangan gold project.

Upon Novo and Sumitomo earning their combined 70 per cent interest, Pioneer is free carried up to a decision to mine and thereafter contributes in proportion to its JV interest.

The Kangan gold project, currently held 100 per cent by Pioneer, forms a key part of Novo’s Pilbara exploration portfolio and sits within that company’s Egina project, which lies in the heart of the Pilbara conglomerate gold province.

“The addition of Sumitomo to the Kangan farmin/JV adds significant financial and technical power to support Novo’s efforts at the Kangan JV project, and we look forward to receiving results as exploration programs at Egina and Kangan advance,” Pioneer Resources managing director David Crook said.

The gold deal comes as Pioneer maintains its caesium-focus with drilling underway at the company’s Sinclair lithium-caesium-tantalum (LCT) Pegmatite at its 100 per cent-held Pioneer Dome project near Norseman in Western Australia.

The drilling coincides with the company’s plans for a third shipment of pollucite scheduled for the third week of June 2019.

The RC drilling, comprising 2,000m, has been designed to discover extensions to the core zone of the Sinclair Pegmatite, which contains the complex array of alkali metal minerals including pollucite, potash feldspar, petalite, lepidolite and cleavelandite.

Drilling will test a zone approximately 150m long both to the north and south of the pit.

A further 500m of diamond core drilling will commence as the RC drilling phase nears completion, targeting pollucite mineralisation extensions and caesium anomalies that occur to the north of the Sinclair Pit.

 

Matsa Resources (ASX: MAT) recently announced the execution of an Ore Purchase Agreement with AngloGold Ashanti Australia (AGAA) for the purchase of ore from the company’s Red October mine.

Matsa Resources informed the market that ore from Red October is to be treated at the AGAA-owned Sunrise Dam gold mine, for up to five years.

The 3.8 million tonne per annum mill at the Sunrise Dam gold mine is located approximately 60 kiloetres from the Red October gold mine and provides Matsa with access to a nearby milling solution for its Stage 1 production ore and for a further 4.5 years thereafter.

Matsa has previously delivered ore from its Fortitude and Red Dog gold mines to Sunrise Dam and is confident in the outcomes of the ore processed there.

Matsa will be responsible for mining and transporting the ore to Sunrise Dam with AGAA taking possession of ore once delivered.

The company said the agreement will allow Matsa to continue to progress mining at the Red October gold mine at a relatively low capital cost.

“The execution of the Agreement with AngloGold Ashanti continues our strong relationship and builds on the MoU both parties entered into in mid-2018,” Matsa Resources executive chairman Paul Poli said.

“Previous mining campaigns at Fortitude and Red Dog have been successfully processed at Sunrise Dam with minimal fuss and we expect this to be no different.

“The fact that AngloGold are prepared to potentially accept all ore from Red October for up to five years is testament to this as Matsa looks to develop a longer term mine plan in the future.”

 

Graphite-focused Renascor Resources (ASX: RNU) has been bust at the company’s 100 per cent-owned Siviour graphite project, located in South Australia’s Eyre Peninsula.

Renascor Resources received a Letter of Interest (LoI) for export credit agency (ECA) cover from Atradius Dutch State Business, the Government of the Netherlands’ official ECA

The LoI came after a preliminary assessment of the Siviour graphite project by Atradius on behalf of the Dutch State, confirming in principle project finance support under the Dutch export credit guarantee scheme.

Atradius is the official ECA that administers the ECA scheme for the Government of the Netherlands.

In order to promote Dutch exports, Atradius offers insurance and guarantee products for projects involving the export of capital goods from the Netherlands.

ECA Cover from Atradius is often used to assist Dutch exporters in winning export transactions and increasing the capacity to raise finance from banks for projects involving Dutch exports.

The Dutch ECA scheme was identified as applicable to Renascor’s Siviour project based on the sourcing of Dutch content through Renascor’s Dutch strategic engineering partner, Royal IHC.

Renascor has estimated that up to approximately 60 per cent of project capital expenditure is expected to qualify under the Atradius ECA Cover.

Renascore also had a Mineral Lease for the Siviour graphite project granted by the South Australian Minister for Energy and Mining.

The grant came on the back of three-years of preparation and review of all potential environmental, social, economic and technical aspects of the project.

A positive Pre-Feasibility Study confirmed the opportunity to unlock further value from Siviour through Australia’s first integrated graphite concentrate and spherical graphite operation.

Renascor believes the project economics of the Spherical PFS highlight Siviour’s potential to achieve high economic returns through the vertically integrated development of a mine and flake graphite concentrate operation, plus downstream production of spherical graphite.

The company also upgraded the JORC Mineral Resource estimate for the Siviour project after completion of an infill drill program, which was conducted to improve the confidence in the Siviour Indicated Resource

This resulted in a Measured Resource estimate of 15.8 million tonnes at 8.8 per cent total graphitic carbon (TGC) for approximately 1.4 million tonnes of contained graphite.

The total (Measured, Indicated and Inferred) Siviour Mineral Resource estimate now consists of 87.4 million tonnes at 7.5 per cent TGC for 6.6 million tonnes of contained resource (with 64 per cent classified as Measured or Indicated).

 

Healthy Mix of Resources and Oil & Gas Companies Travelling to Gold Coast Investment Showcase

THE CONFERENCE CALLER: With the 2019 Gold Coast Investment Showcase closing fast, The Resources Roadhouse continues its look at companies that will be in attendance.

Altech Chemicals (ASX: ATC) has Stage 1 construction at the company’s high purity alumina (HPA) project site in Johor, Malaysia, progressing well.

The company has completed advanced design and engineering that has allowed permits and approvals to be issued.

The site development order was approved allowing site works to commence and activities at site have transitioned from the establishment phase well into the construction phase.

Initial site establishment activities are completed, with the site fully fenced and secured.

Other work has included the completion of a site construction office, a security post, a vehicle wash down bay with sediment control, a site weather monitoring station, and temporary ablutions have been installed.

As far as actual mining goes, removal of topsoil from the site, bulk earthworks and site levelling has been undertaken with soil compaction in most areas close to being finalised.

A foundation piling rig established the foundation piling for the workshop building and the concrete footings for this building are also nearing completion.

The first steel was recently raised in plant construction anger, representing the culmination of the above-mentioned series of achievements at the project over the last six months.

Winchester Energy (ASX: WEL) is set to spud a step-out well in July at the company’s Mustang prospect, located in the Permian Basin of Texas, USA.

Winchester Energy explained the step-out well is to spud 420 metres from the previous Mustang Prospect well White Hat 20#3, which returned initial production (IP) of 306 barrels of oil per day (bopd) and continues to produce consistently.

The new well, White Hat 20#4, is a development well on the newly discovered Mustang Oil Field and is designed as a low risk well which, if successful, will further increase Winchester’s net oil production.

Winchester is planning a drilling program to develop the central lobe of the Mustang prospect that will include approximately 15 well locations.

The Mustang prospect has a Prospective Resource target best estimate P50 of 1.43 million bbls recoverable and a high estimate P10 of 3.76 million bbls recoverable from the Strawn Sand.

“The impending spud of White Hat 20#4 builds on the success of the White Hat 20#3 which returned exceptional flow rates of 306 barrels of oil per day,” Winchester Energy managing director Neville Henry said in the company’s announcement to the Australian Securities Exchange.

“White Hat 20#4 represents a low risk opportunity to further increase oil production and also increased confidence in the newly discovered Mustang Oil Field.

“We hope to extend the play further to the north and south and expect a series of large basin-floor sand lobes to occur within the Mustang area.

“The company intends to execute its Mustang development plan which focusses on relatively low risk locations initially stepping out from White Hat 20#3.

“This should see Winchester steadily expand its oil production and cash flow and with the El Dorado and Spitfire prospects representing yet more genuine upside for the company.”

King Island Scheelite (ASX: KIS) released results of an updated Feasibility Study and Revised Mineral Reserve Estimate for the redevelopment of the company’s 100 per cent-owned Dolphin tungsten project in King Island, Tasmania.

The probable reserves, in accordance with JORC 2012 code, have estimated to be 3 million tonnes at 0.73 per cent tungsten oxide WO3 (Cut‐off 0.2%).

King Island Scheelite reported the study outlined the Dolphin Open‐cut project is planned to mine and process approximately 400,000 tonnes per annum of ore for eight years to produce approximately 3,500 tonnes of tungsten concentrate per year.

This concentrate will be sold into a market the company expects to be of growing demand and constrained supply.

The Dolphin processing plant has been substantially modified since a Reserve Estimation carried out in 2015.

Processing will now be conducted through, primarily, a gravity circuit followed by a small flotation circuit to which some of the gravity tails will report.

The company has carried out further site infrastructure engineering works, resulting in capital and operating cost savings from the previous estimation.

King Island indicated its relatively advanced engineering studies and proposed methodology based on a modular design, has allowed its engineering consultants to determine that detailed design, procurement, construction and commissioning could be achieved within a fifteen‐month period after financial close.

The company is confident that once financial close has been reached, commissioning of the mine and processing plant can be achieved within the stated fifteen month period, meaning that should financial close can be achieved in the second half of 2019 then first shipment of product could be achieved in the first quarter of 2021.

“Having recently secured the first of a number of multi‐year offtake agreements, together with the flexibility in the operating site and supportive local community, we now look forward to achieving frequent operational milestones as we proceed to tungsten production, anticipated in 2021,” King Island Scheelite chairman Johann Jacobs said in the company’s announcement to the Australian Securities Exchange.

“The King Island Scheelite team has actively progressed and de‐risked the 100 per cent-owned Dolphin tungsten project, both technically and commercially.

“As part of this process, we commissioned independent consultants to provide inputs into a financial model to prepare scenario analysis to assist in interpreting the net present value ranges, potential returns and expected payback period, associated with the Dolphin open‐cut project.

“The impressive indicative economics reiterate that we have chosen to develop the right project with the right commodity in the right place and time.”

 

 

AMEC 2019 Convention

THE CONFERENCE CALLER: The Roadhouse attended the 2019 AMEC Convention this week and caught up with the latest goings on for some of our regulars.

Obviously this is a new innovation we are learning to use, so try not to stand too close to the screen when checking out the pics.

Fortunately it is all about listening so sit back and relax and hear what these MDs have to say.

 

BRUCE MALUISH managing director VRX Silica (ASX: VRX)

 

MIKE YOUNG managing director Vimy Resources (ASX: VMY)

 

SEAN GREGORY managing director Barra Resources (ASX: BAR)

 

PATRICK MUNTZ managing director Image Resources (ASX: IMA)

 

Strong Resources Line-up Awaits Gold Coast Investment Showcase Attendees

THE CONFERENCE CALLER: It’s only a few weeks until we pack our bags and shine our white shoes to head off to the land of sunshine to attend the 2019 Gold Coast Investment Showcase.

In the lead up to the event The Resources Roadhouse will take a weekly look at a few of the resource industry-focused companies that will be in attendance.

 

BMG Resources (ASX: BMG) announced it has formally commenced the Chilean lithium brine Joint Venture with Lithium Chile SpA (LCS) following execution of full formal documentation.

BMG entered a binding agreement with project owner LCS in 2018 to form a JV to progress and develop three Lithium brine projects.

The company executed a revised binding term sheet in February 2019 after undertaking due diligence investigations, an initial geophysical survey at Salar West, and expanding the project area that now spans over 20,000 hectares across three claims in the Salar de Atacama, Salar de Pajonales and Salar de Tuyajto – Natalie in the Chilean region of the ‘Lithium Triangle’ – a region of the Andes encompassing parts of Northern Chile, southwest Bolivia and northwest Argentina.

This is lithium brine heartland, hosting more than 50 per cent of the world’s lithium resources and the largest and highest-grade lithium brine deposits in the world.

BMG is now gearing up for its maiden drill program, which is expected to comprise two diamond holes of around 200 metres each in key conductive units in the Southern area (4,200 Ha) of Salar West the company identified in recent geophysical surveys.

“We are excited to have formalised our joint venture agreement with Lithium Chile SpA, and are now finishing preparations for our first drilling program at Salar West, which we expect to commence within the next month,” BMG Resources managing director Bruce McCracken said.

“Surveys we completed during due diligence identified a consistent strongly conductive unit on the southern properties, so we look forward to drilling this area with the support of our JV partners to gain a closer understanding of the scope of potential lithium resources.”

BMG is set to invest US$3.5 million over three years to earn a 50 per cent interest in the projects.

 

FYI Resources (ASX: FYI) received results from a recently completed drilling program undertaken at the company’s 100 per cent-owned Cadoux kaolin project (EL/4673) in Western Australia.

FYI Resources said the results came from a combination of diamond (DDH) and reverse circulation (RC) drilling and have confirmed the presence of high-grade, high-quality high purity alumina (HPA) feedstock characteristics.

The company indicated the drilling data and results will assist in progressing the current bankable feasibility study (BFS) and project permitting.

FYI said the combined RC and diamond drilling program was carried out at the Cadoux kaolin project to meet several key technical project objectives and contribute to delivery of a robust BFS for the company’s integrated HPA strategy.

As FYI progresses the BFS and commences pilot plant project studies, undertaking the detailed drilling campaign provides the company with an increased understanding of the project’s metallurgical model in terms of grade and variation of the deposit as a feedstock.

The drilling should also increase FYI’s technical understanding and confidence in the deposit for an upgrade from a Measured to a Proven Reserve for the first phase of mining as well as grade control data for the first phase of mining, increasing the predictability of the future production schedule.

“The program and subsequent results of the latest round of drilling are particularly pleasing as it confirms our view that the quality of the Cadoux kaolin has excellent feedstock characteristics for HPA processing and it also provides us with specific detailed information to finalise our environmental permitting and mining study phases in preparation for mine plan application – well ahead of normal submission timeframes,” FYI Resources managing director Roland Hill said.

 

Blackstone Minerals (ASX: BSX) struck a binding term sheet for the exclusive option to acquire a 90 per cent interest in the Ta Khoa nickel project.

The Ta Khoa nickel project is located 160 kilometres west of Hanoi in the Son La Province of Vietnam and includes an existing modern nickel mine built to Australian Standards that is currently under care and maintenance.

The Ban Phuc nickel mine operated as a mechanised underground nickel mine from 2013 to 2016 and its previous owners invested more than US$136 million in capital and generated US$213 million in revenue during a 3.5-year period of falling nickel prices.

The project was placed into care and maintenance in mid-2016 during some of the lowest nickel prices in the past 10 years.

Existing infrastructure associated with the project includes an internationally designed 450,000 tonne per annum processing plant connected to local hydro grid power with a fully permitted tailings facility and a modern 250- person camp.

Blackstone Minerals also has its eyes on the potential the project offers with the 150 square kilometre land package hosting more than 25 advanced stage massive sulphide vein (MSV) targets and many large disseminated sulphide (DSS) targets including the unmined Ban Phuc DSS.

Blackstone also signal its interest in investigating the potential to develop downstream processing infrastructure in Vietnam to produce a downstream nickel and cobalt product to supply Asia’s growing lithium ion battery industry.

“This is an exciting opportunity for Blackstone to acquire a 90 per cent interest in a project that has a history of profitable nickel production even during low nickel prices,” Blackstone Mineral managing director Scott Williamson said.

“Blackstone will be the first company to explore Ta Khoa for both MSV and DSS nickel sulphide deposits all the while investigating downstream processing opportunities to meet the demands of the growing Asian lithium ion battery sector.”

 

 

Petroleum Exploration Stats Jump as APPEA Prepares for Battle

THE CONFERENCE CALLER: With the RIU Good Oil Conference just around the corner the Australian Petroleum Production and Exploration Association (APPEA) seems to have resigned itself for a soon-to-be elected Labor Federal Government and is steeling its loins against possible new regulatory battles.

The lobby group shot off a broadside at the Federal Labor Party’s proposal for permanent controls on Australia’s gas exports, declaring these would not lower long-term domestic gas prices.

APPEA’s position is that more regulation and political uncertainty risks deterring investment in new gas supply which, over time, will mean higher prices.

“Like manufacturers, gas producers compete in a tough global market and understand the pressures to stay competitive,” APPEA chief executive Dr Malcolm Roberts said.

“However, trying to regulate prices does not tackle the real problems – the rising cost of producing gas and tightening local supply in Victoria and New South Wales.”

APPEA highlighted the measures proposed by the Labor Party it believes demand further discussion, including:

1) A decision to make the export controls permanent should be informed by the findings of the scheduled review in 2020. Making export controls permanent will compound the already significant level of sovereign risk created by the Australian Domestic Gas Security Mechanism, affecting more than $250 billion invested in Australia by both domestic and foreign investors. It sends an alarming signal to investors considering future investment in Australia.

2) References to a ‘benchmark price’ from the ACCC’s December 2017 report are out-of-date and misleading. The ACCC found, in its most recent (July 2018) report “… domestic price offers have reduced substantially and converged with export parity (LNG netback) prices at Wallumbilla”.

3) More broadly, the ACCC has consistently cautioned that gas prices are influenced by many factors and these factors change over time. These factors include the cost of transportation, the cost of gas production, the “non-price” terms customers request in their gas supply agreement and the role of domestic short-term gas trading markets.

4) It is unclear what “new powers” the ACCC requires. The ACCC is already actively monitoring the gas market and providing regular reports through its Gas Market Inquiry 2017 2020 and has significant powers through the Competition and Consumer Act 2010 to act against any anti-competitive behavior it observes in any market across the Australian economy. and

5) Proposals to strengthen ‘use it or lose’ provisions appear unnecessary and potentially counterproductive. A recent review for the COAG Energy Council found “… no evidence that gas is being withheld (or warehoused) from development and production …” and “… to apply a use it-or-lose-it policy to deliver downstream objectives risks longer term investment distortions and higher prices.”

APPEA believes the only effective way to put downward pressure on gas prices is by creating more supply from more suppliers and that supply needs to be from a local source to avoid customers paying significant shipping costs.
APPEA cited a report from June this year from the Australian Energy Market Operator (AEMO), in which it forecast that it does not expect supply gaps until 2030.

This was supported by similar findings of the Australian Competition and Consumer Commission (ACCC) in its July 2018 Gas Market Inquiry 2017-2020 report.

“The export controls introduced last year were not needed to ensure supply in 2018 and will not be needed in 2019 or into the future,” Roberts said.

“APPEA members are committed to supplying local customers at competitive prices.

“The east coast LNG projects are offering all their uncontracted gas to domestic buyers first.”

According to APPEA, the ACCC reports that three LNG projects in Queensland have contracted to sell 305 petajoules (PJ) of natural gas to domestic customers in 2018 – about half of east coast demand – and are likely to do the same in 2019.

Companies operating from offshore Victoria, South Australia and other Queensland gas projects will be responsible for meeting the rest of demand.

ACCC monitoring of the market shows that prices have fallen sharply over the last twelve months.
“APPEA encourages all governments to focus on lasting solutions,” Roberts continued.

“It is bizarre that Labor in New South Wales and Victoria supports bans on local gas projects while Federal Labor now proposes to penalise the gas industry in states that do support development.

“Restricting exports and killing jobs in Queensland does not lower gas prices in Sydney and Melbourne.

“Unless new gas resources in New South Wales and Victoria are developed, families and businesses in those states will pay more than those in states continuing to develop new supply.”

What’s worth taking note of is that the Petroleum industry is currently enjoying surge in activity that is resulting in some positive statistics.

Latest figures from the Australian Bureau of Statistics (ABS) shows the trend estimate for total petroleum exploration expenditure in the recently-completed June quarter 2018 rose 10.6 per cent ($25.3m) to $262.9 million.

Exploration expenditure on production leases rose 0.6 per cent ($0.3m) and exploration expenditure on all other areas rose 13 per cent ($24.4m).

The seasonally adjusted estimate for total petroleum exploration expenditure rose 84.8 per cent ($149.9m) to $326.6 million for the June quarter.

Although exploration expenditure on production leases fell 4.2 per cent (-$2.2m) the news was all good elsewhere with exploration expenditure on all other areas rising 122.2 per cent ($152.2m).

Western Australia maintained its slot as number one Resources State by being the largest contributor to the increase in the trend estimate (up 19.8 per cent, $26.3m) and the largest contributor to the rise in the seasonally adjusted estimate (up 181.2 per cent, $137.9m).

ONSHORE

The ABS trend estimate for onshore petroleum exploration expenditure rose 7.7 per cent ($6.4m) to $89.3 million during the quarter and expenditure on drilling rose 8 per cent ($4m) along with other onshore petroleum exploration expenditure that rose 7.6 per cent ($2.5m).

The seasonally adjusted estimate for onshore petroleum exploration expenditure rose 29.3 per cent ($22.5m) to $99.4 million with expenditure on drilling up 6.4 per cent ($3.3m) and other onshore petroleum exploration jumping 75 per cent ($19.2m).

OFFSHORE

The trend estimate for offshore petroleum exploration expenditure rose 12.1 per cent ($18.7m) to $173.4 million.

Offshore expenditure on drilling rose 34.6 per cent ($24m) and other offshore petroleum exploration expenditure bucked the trend by falling 6.2 per cent (-$5.3m).

The seasonally adjusted estimate for offshore petroleum exploration expenditure rose 127.7 per cent ($127.4m) to $227.2 million.

Expenditure on drilling rose 472 per cent ($118m) and other offshore petroleum exploration expenditure rose 12.6 per cent ($9.4m).

 

The RIU Good Oil Conference 2018

The Good Oil Conference will bring you up-to-date with the exciting developments taking place in the oil and gas industry.

There will be two days of presentations from the leaders of the country’s emerging oil and gas companies on recent developments and new discoveries plus an outline for the sector’s future.

The conference also affords the opportunity to meet these industry leaders at what has become the most popular conference in Australia for the mid-tier and junior sector of the oil and gas market.

The RIU Good Oil Conference 2018 will be held at the Hyatt Regency Hotel Perth, Western Australia, located at 99 Adelaide Terrace Perth.

To find out more and to register CLICK HERE

 

South Africa Looking to Increase Mining Investment

THE CONFERENCE CALLER: The reinvigoration of South Africa’s beleaguered mining industry is hoping to attract new investment of more than $11 billion, or around 122 billion rand, over and above current project commitments.

The outlook was posted on the second day of the three day Paydirt 2018 Africa Down Under mining conference in Perth by the chief executive officer of the Minerals Council South Africa, Roger Baxter.

Recognising that the minerals rich country had not reached its full mining potential in the past decade, Baxter said key findings of an industry report last year for change and now backed by government, pointed to a much stronger outlook if implemented successfully.

“The current mining capex for the next four years for South Africa is R145 billion,” Baxter said.

“Potential new capital expenditure under a more certain and conducive environment would add a further R122 billion (A$11 billion plus) to this outcome.

“This is 84 per cent higher than current commitments.

“Our findings last year showed that most companies had held back investment due to South Africa’s then mining policies and uncertain regulatory environment.

“This dampened outlook also included certain minerals, due to adverse economic conditions.

“But our modelling has also shown that if South Africa gets back into the top 25 per cent of favoured mining investment destinations globally, this would create a further 200,000 jobs.

“It would profound positive impacts on South Africa’s minerals supply chain, export earnings, taxation contributions and ultimately, the much desired transformation of South Africa’s mining industry to where it should be, given its mineral wealth.”

The Minerals Council chief said reforms enacted this year were showing green shoots for the industry, and would come to a head with a proposed international investment summit in November this year.

The only thorns among the green shoots included anxieties around talks on land expropriation without compensation and the agreement yet on a satisfactory Mining Charter.

Baxter acknowledged that South Africa’s once internationally renowned mining reputation, had, “been through a tough patch”.

“From 2013 to 2017, real net capital formation in South Africa’s mining sector declined by 50 per cent,” Baxter said.

“The investment pipeline has also been weak – the country attracting just one per cent of total global exploration expenditure last year compared to 14 per cent for each of Australia and Canada.

“Of the South African exploration allocation, only 10 per cent of that was on greenfields activity – meaning a much weaker and limited pipeline of new mining projects being developed.”

Baxter said the Minerals Council believed the economic and transformational potential of mining in South Africa was huge – and an invigorated best practice approach could see mining investment double in just four years.

 

Ghana Keen to Shift Focus to Industrial Metals

THE CONFERENCE CALLER: One objective of African mining powerhouse, Ghana, is to bring about more sustainable extraction of its mineral wealth.

Although it is starting to deliver on this, the country is determined to diversify into non-traditional mining areas.

Speaking on the second day of the three day Paydirt 2018 Africa Down Under mining conference in Perth, Ghana’s Deputy Minister for Lands and Natural Resources, the Hon. Barbara Oteng-Gyasi, said that for the past two and a half decades, the country had attracted mining sector investment to the order of US$18 billion.

“This has contributed to a trajectory growth in our gold production in the opening half of this year, a provisional 2.4 million ounces compared as against 2.1 million ounces in the first half of 2017,” Ms Oteng-Gyasi said.

“Production of manganese in the same comparable periods rose to 1.9 million tonnes against 1.3 million tonnes previously.

“Such performances are indicative of the success of our strategy to ensure sustainable extraction of Ghana’s mineral resources through more intensive monitoring of mining activity to ensure environmental compliance, improved technical capacity of our small-scale miners, and decentralising government regulatory processes.

“Not surprisingly, our mining sector has contributed strongly to Ghana’s overall provisional growth in GDP with the mining-quarrying sub-sector recording the highest year-on-year quarterly GDP growth rate in the Q1 2018 this year.”

The Deputy Minister also noted the Government was focused on better integrating the mining sector into Ghana’s economy and value-add opportunities, including mining related industrial processes, and wanted to reduce any over-dependence on traditional minerals.

Ghana has historically been a major African producer of gold, manganese, bauxite and diamonds.

The current focus is to build an integrated aluminium industry from bauxite deposits in the country.

However, the move to wider opportunities would now include intensified exploitation of Ghana’s industrial minerals, including solar salt, granites, lithium, and base and clay metals.

 

Diggers & Dealers 2018 Awards

THE CONFERENCE CALLER: Diggers & Dealers ends up each year with the gala dinner with the Forum’s award winners announced.

 

DIGGER AWARD
Canadian-based Victorian-operating interloper, Kirkland Lake Gold picked up the Digger Award following a year that saw the company increase its mine production by 70 per cent over the 12-month period, while treating 22 per cent ore.

All from a mine that has operated for several years, the Fosterville gold mine.

In 2012 the mine produced some 90,000 ounces at 4.4 grams per tonne.

In 2017 it produced 264,000 ounces at 15.8g/t with 2018 accounting for 141,000 ounces at the higher grade of 20.5g/t.

The success of the mine has been credited with re-igniting interest in gold in Victoria.

DEALER AWARD
The Dealer Award stayed in Western Australia and will grace the trophy cabinet of Kidman Resources.

The lithium producer struck a Joint Venture with Chilean giant SQM by giving up 50 per cent of the company’s Mt Holland lithium project.

When the deal was announced Kidman had a market cap of $183 million.

Today it sits around the $600 million mark, having fallen back from knocking on the door of $1 billion earlier this year.

This was followed by it becoming a Level-2 Lead Agency, granted by the WA government.

Kidman also signed an offtake agreement with electric vehicle manufacturer Tesla.