THE BOURSE WHISPERER: The regular game of musical chairs continues within the boardrooms across the resources industry. The Whisperer pokes his head down the corridors of power to take a quick look at some of the chairs to have recently been vacated and to find out which ones have been filled:

Medusa restructures board

Following the company’s decision to delist from the Toronto Stock Exchange, and to oversee the next phase of its growth and development, Medusa Mining announced some changes to the composition and structure of its board which are to take effect immediately:
 
Peter Jones is to stand down as chairman and retire as Non-Executive Director.

Geoff Davis will stand down as managing director to be re-appointed as non-executive chairman to replace Jones.

Peter Hepburn-Brown is to be appointed as managing director of the company to replace Davis.

Roy Daniel is to retire as finance director and joint company secretary of the company but will continue in his role as chief financial officer.

Carabella Resources changes chairman

Following a review of the company’s board structure, current Carabella Resources non-executive director Andrew Amer, will replace Michael Addison as non-executive Chairman of the company.

Addison, currently a substantial shareholder, will remain on the board as a non-executive director.

Norton Non-Executive Director Steps Down

Mark McCauley announced his resignation from the board of Norton Gold Fields effective 31 August.

“On behalf of the Board I would like to thank Mr McCauley for his contribution over the last 4 years”, Norton chairman Mark Wheatley said.

“Mark has been involved with Norton over a period of restructure and renewal and the time is right for Mark to move on. The notice period will allow sufficient time for me to work with the board to secure the services of a suitable independent non-executive director as a replacement”.

Busy appointment book at Stonehenge

Stonehenge Metals announced a number of key appointments to its management in line with its corporate objective to develop Korea’s first uranium mining project.

The appointments included:
Tony Chamberlain as chief metallurgist to be responsible for maximising extraction of multi metals from the Black Shales.

Steven Michael as chief financial officer. Michael was recently with the Royal Bank of Canada as director of research sales – global equities. He holds a degree in commerce and has been a member of the Institute of Chartered Accountants for 15 years.

Injin Jeong  as project engineer to be responsible for coordinating all geological, metallurgical and environmental matters for the company. Jeong holds a degree in chemical engineering from Chonnam National University and is studying for a masters’ degree at UWA.

NuPower appoints managing director

NuPower Resources has appointed of Andrew Johnstone as managing director.

Johnstone has previously held senior management positions at a number of ASX listed companies including Discovery Metals and Gulf Industrials. He brings with him over 20 years’ experience working in exploration, resource development and mining.

NuPower executive chairman Mick Muir said the company considered Johnstone’s appointment a significant milestone in the company’s progress.

“Andrew joins us at an opportune time with a capital raising well underway and a major phosphate exploration program about to begin. His experience in Northern Territory exploration will be invaluable to NuPower,” Muir said.

THE BOURSE WHISPERER: The current round of the Western Australian State Government’s Co-funded Exploration Drilling Program has highlighted gold to be the much-favoured commodity of choice for exploration plays by featuring in 49 per cent of applications.

WA Mines and Petroleum Minister Norman Moore didn’t surprise anyone by speaking glowingly about the program that began under his watch.

However, what he did say has been supported by the number of applications the program receives each year.

Moore said the program provided companies an extra incentive to drill in underexplored areas, which was the key to the continuity of the WA mining industry.

“Again gold was the commodity that featured in most successful applications with 26 projects listing it as the main target, or as one of the commodities sought,” Moore said.

“Gold was followed by copper in 17 projects, nickel in 10 and iron for nine projects. Other commodities being explored include platinum group elements, zinc, lead, uranium and manganese.

“It is also pleasing to see a geothermal and an oil and gas project among the successful applications.”

The most recent application round closed on March 25 and resulted in 53 successful applications.

Applications included nine from prospectors for drilling programs which will be carried out between July 2011 and the end of June 2012.

General applicants will share in $4.5million while prospectors are being offered $196,000.

The Co-funded Industry Drilling Program provides co-funding of up to 50 per cent of direct drilling costs with caps of $150,000 for a multi-hole project, $200,000 for a single deep hole and $30,000 for a prospector’s project.

Payment is made to successful applicants after the completion of their drilling programs.

Information acquired by the companies through the drilling programs is publicly released on the Department for Mines and Petroleum’s website after a short confidentiality period.

The information adds to the geological knowledge of the State and helps reduce risks for subsequent explorers.

Another round of co-funded drilling will be advertised from August 2011 – calling for applications in September-October 2011 for projects to be undertaken between January 2012 and the end of December 2012.

THE BOURSE WHISPERER: Sydney-based Proto Resources & Investments has acquired rights over the Kiefernberg nickel-cobalt development project located in Saxony, Germany.

Proto has entered an option to purchase the Granulite Mountains licence from Deutsche Rohstoff AG.

The licence covers over 600 square kilometres and includes both known mineralised zones and the site of a historical nickel-cobalt mine.

The Granulite Mountains licence also contains several known nickel laterite mineralisation including an advanced nickel laterite development project at Kiefernberg.

Proto intends to induct the Kiefernberg project as its second nickel-cobalt development, and will use the same technology as that at the company’s flagship Barnes Hill project in Northern Tasmania which is currently in approvals.

Proto managing director Andrew Mortimer indicated the strategic significance of the acquisition to the company.

“Kiefernberg is the perfect fit for Proto, and will allow us to leverage the nickel processing technology we have been piloting for Barnes Hill into an environment marked by excellent infrastructure,” Mortimer explained in an announcement.

“Our ability to cheaply and rapidly replicate the extensive development work undertaken for Barnes Hill will be key to our plans to build nickel production tonnage over the next few years.”

Proto has already begun the process of compiling all historical geochemical results from the Kiefernberg project into a digital database.

From this the company will prepare and implement a program of targeted drilling to provide the necessary confirmatory information for it to define a JORC-compliant resource in conjunction with the extensive existing geological and exploration data.

The Kiefernberg project has undergone historic al material non-JORC compliant drilling carried out by the GDR’s former Communist Government.

These historical drill results were assayed at 0.5m intervals, with tight drill spacing of less than 30m by 30m.

The company is expectant this should allow rapid completion of the necessary geological work to define a JORC compliant resource and reserve in order to support mine planning and plant engineering.

Proto considers that Kiefernberg represents an excellent opportunity to replicate the plant that has been designed for its flagship project at Barnes Hill in Tasmania.

The initial assessment of historical drilling results has identified several high grade nickel zones that would allow the fast-tracking of the plant and suggest sound economic potential.

THE DRILL SERGEANT: Kula Gold has intersected further gold mineralisation adjacent to the Kulumadau Resource at its 100% owned Woodlark Island gold project in Papua New Guinea.

Recent assay results received by the company have confirmed a new, previously undiscovered zone of mineralisation present under a relatively thin 20 metre limestone cover.

The new zone of mineralisation was uncovered due more to chance than circumstance when the company was drilling a sterilisation line of 20 RC drill holes at approximate 75m collar spacing to sterilise an area for a waste dump, immediately to the east of the proposed Kulumadau pit.

Significant new assays results included:

– 47m at 1.3 grams per tonne gold Au from 25m;
– 64m at 1.3g/t gold from 34m including 13m at 3.3 g/t gold;
– 11m at 4.6 g/t gold from 91m including 2m at 15.5g/t gold, and
– 23m at 1.5g/t gold from 22m including 1m at 8.3g/t gold.

“The confirmation of this new mineralisation outside of the proposed open pit at Kulumadau is very welcome and the company will be accelerating its drilling program to delineate the full potential of this larger mineralised system,” Kula Gold managing director Lee Spencer said in an announcement.

“This new discovery confirms our belief in the excellent near-surface potential under thin cover on Woodlark Island.”

Geological logging carried out on the holes indicated the hydrothermal system at Kulumadau to be much larger than previously thought as a result of the intensive phyllic alteration and intrusive breccias that were intersected in a number of these RC holes.

Three out of the first four holes drilled returned significant gold assays, which the company had reported in an announcement in May.

The new assay results provide confirmation that the newly discovered mineralisation extends for some 400m east of the Kulumadau pit collar as delineated by the Pre-Feasibility Study.

The company is hopeful an intersection of lower grade mineralisation in two of the holes together with zones of elevated base metals in other holes may indicate additional zones of mineralisation are present closer to the PFS pit collar.

A diamond hole was drilled to confirm structural and host lithological data, which indicated the style of alteration and mineralisation are similar to that which constitutes the Kulumadau Resource.

A reconnaissance RC drill hole line is presently being drilled 300m to the south and parallel with the first drill line with the objective of determining the limits of the mineralising system and two RC holes have been drilled 75m to the north to determine strike orientation.

THE DRILL SERGEANT: Australian gold producer Tanami Gold increased its company-wide gold Resources and Ore Reserves across both of its operational centres as production at the Central Tanami project moves towards commencement.

Recent drilling at the company’s flagship Groundrush deposit has resulted in a maiden Mineral Resource of 203,000 ounces gold and a Mineral Reserve of 48,400 ounces gold.

“Due to time constraints on some assays, only 2 of the 13 holes drilled to date were included within the new Reserve and Resource,” Tanami Gold said in an announcement.

“Given this, there is excellent potential for further growth in both Reserves and Resources with a number of wide-high grade drill intersections yet to be included in the Resources, including diamond hole GD 0008 which reported 4.35metres at 159.50 grams per tonne and 9.5 metres at 38.8 grams per tonne.

“An extensive and focused surface diamond drilling program is planned to target known extensions to the mineralisation, which remains open along strike in both directions and at depth.”

Tanami announced a further substantial increase in its gold Mineral Resources, with total Measured, Indicated and Inferred Mineral Resources increasing to 2.30 million ounces of gold from 23.7 million tonnes grading 3.0 grams per tonne.

The updated Mineral Resource represents a 12 per cent increase in total Resource ounces compared with the December 2010 Mineral Resources estimate of 21.3Mt at 3g/t for 2.03 million ounces, which the company announced in February.

The latest increase also includes a 17% increase in the Mineral Resources at Tanami’s 100%-owned Central Tanami project in the Northern Territory, providing encouragement for it plans to commence production at the project in 2012.

The company expects the Central Tanami project will form a second substantial production hub alongside its existing 40-50,000 ounce per annum Western Tanami Operations.

The latest Central Tanami project Resources estimate has resulted in total Measured, Indicated and Inferred Resources of 1.75 million ounces of gold from 20.9 million tonnes grading 2.6g/t (see Table 6).

Within the total new Resources, 1.3 million ounces, or approximately 75%, classified as Measured or Indicated.

“The latest upgrade of Resources and Ore Reserves represent key milestones for the company, enabling it to focus on completing the Central Tanami project Feasibility Study with the aim of commencing gold production at the Central Tanami project by mid-2012,” Tanami Gold managing director Graeme Sloan said in the announcement.
 
“Particularly pleasing is that within four months of announcing updated Resources in February 2011, we have further increased Resources by more than 12 per cent and announced a total Ore Reserve of 402,000 ounces of gold for both our key operational hubs, the Western and Central Tanami.

“Achieving this level of Resource growth over such a short period highlights the enormous potential of the Central Tanami Project area – especially at Groundrush, where timing constraints resulted in the inclusion of just two of thirteen diamond drill holes from the current drill program within the maiden Resource of 203,000 ounces of gold.

“Add to this the recent grant of two large Exploration Licences, which opens up approximately 100 kilometres strike of the highly prospective Mt Charles Formation, and you can understand why the company is confident the Central Tanami project will deliver increasing Resources, Reserves and gold production.

“A ramp-up in drilling is currently underway for Resource to Reserve conversion, to drill test extensions to known mineralisation, and to drill test numerous new targets.”