Brockman Resources – Wah Nam no thank you Ma’am

Besieged iron ore hopeful Brockman Resources released a letter to its shareholders updating them on the recent takeover activity from hostile suitorWah Nam International Holdings.

In the lengthy letter Brockman advised shareholders, “Wah Nam had publicly advised that it had received acceptances for its offer bringing its holding in Brockman to 45.39 % of the total Brockman shares on issue. Wah Nam’s offer is now scheduled to close on Monday 16 May 2011 at 4pm WST (subject to any further extensions by Wah Nam).”

The Brockman board reiterated its position to shareholders telling them not to accept the Wah Nam offer.

“The Brockman Directors do not currently intend to accept the Wah Nam offer as proposed, in respect of their personal holdings in Brockman,” the company continued.

The letter came hot on the heels of another release from Brockman responding to Wah Nam claims that a broad section of its shareholders had already accepted the offer.

Brockman said an overwhelming majority of shareholders had not accepted Wah Nam’s offer with 96.49% of the total acceptances so far having come from only 9 shareholders, with only 0.59% of acceptances from Australian / NZ registered shareholders.

“Based on information received by Brockman… 96.49% of the total acceptances received by Wah Nam had come from only 9 shareholders or 0.34% of Brockman’s total shareholder base of 2642 shareholders,” Brockman claimed.

“These 9 shareholders accounted for 21.77% of the 22.56% increase in Wah Nam’s relevant interest in Brockman as a result of the takeover.

“Of those acceptances received to date, the majority have originated from off-shore investors located in Hong Kong or Singapore. Acceptances by Brockman shareholders with registered addresses in Australia or New Zealand account for only 0.59% of acceptances (which equates to 0.12% of Brockman’s issued shares).

“From these figures, it is clear that the overwhelming majority of Brockman shareholders have NOT accepted Wah Nam’s offer.”


Cazaly Resources gets Freo Heave-Ho

Cazaly Resources has been told by the Fremantle Port Authority that it has not been allocated any export capacity at the Kwinana Bulk Terminal for its Parker Range Iron Ore Project.

Fremantle Ports has determined that the available export capacity will instead be allocated to a competing iron ore developer in Griffin Coal.

Fortunately Cazaly has had the presence of mind to have been working on a number of alternate options with the preferred option from these having been incorporated into its Feasibility Study.

Cazaly now proposes to initially export through the port of Fremantle at a rate of 1.4 million tonnes per annum followed by export through the port of Esperance at a rate of 4.6 Mtpa.

“The project greatly benefits from its close location to existing and accessible infrastructure including road, rail, port, power and township,” Cazaly said in an announcement.

“This access allows for the relatively rapid development and ramp up to full production within 2 years.”

The proposed initial start-up rate of 1.4 Mtpa utilises capacity available to the company within the existing container transport, storage and port infrastructure facilities at Fremantle.

Containerised product is unloaded into bulk ships using a proven dustless system recently pioneered in South Australia by Flinders Ports and IMX Resources.

The subsequent Esperance port ramp up to 4.6 Mtpa will be undertaken using conventional bulk transport and handling methods.

“These positive results now allow for the advancement of government and non-government stakeholder consultation and the completion of discussions for financing,” Cazaly said.

“The (Feasibilty) study has shown that the Company is on track to become a major iron ore producer in the Yilgarn region of Western Australia behind Koolyanobbing Operations who have successfully operated in the region for many years.”


Red October Resources hunting in Kazakhstan

West Perth-based Red October Resources has announced it is evaluating several advanced mineral projects in the Central Asian Republic of Kazakhstan.

“On the heels of our recently completed initial public offering, we are working to hit the ground running as we strive to bring about early and significant returns to the investors who have put their faith in our experience and abilities,” Red October chairman and managing director Ross Smith said.

“In keeping with our mandate to explore global resource opportunities, the board of Red October has decided to focus on acquiring advanced resource projects in the Central Asian Republic of Kazakhstan.

Smith said the company had been offered a raft of projects covering a number of commodities including gold, silver, tin, copper, manganese, platinum, iron ore and potash.

“All of which have JORC compliant resources associated with them,” he continued.

“We have appointed Perth based Micromine, who have an office in Almaty Kazakhstan along with Russian and Kazakh speaking geological staff to assist us in undertaking our preliminary due diligence of these exciting resource projects.”

Smith identified a clutch of what he called “significant benefits to acquiring advanced resource projects in the Central Asian Republic of Kazakhstan”.

These included low operating costs such as for diesel, which is only 60 cents per litre.

“The projects are all situated near established road and rail links to China for access to markets, resources and materials, and there are minimal topographic or environmental barriers to proceed,” Smith said.

“These are all criteria that form part of our evaluation of any project and we are pleased with what we’ve found thus far in Kazakhstan.”


RIU Sydney Resources Round-up Day Two

Catalpa Resources managing director Bruce McFadzean stood before the assembled delegates at the RIU Sydney Resources Round-up on the back of a market release that announced recent report exploration assay results the company has recently received from the Cracow Gold Operations in Queensland.

The recent activity has been targeting high grade epithermal gold mineralisation south of the western Cracow Goldfield with a focus to support the current resource upgrade at Tipperary and Kilkenny together with exploration on a number of other prospects.

A total of 56 underground holes were drilled at Tipperary and Kilkenny for 8,434 metres resulting in high grade intersections including 6.1m at 8.8g/t gold and 8.0m at 13.5g/t gold.

Catalpa is continuing drilling in order to validate the Kilkenny and Tipperary shoots and to also extend the vertical extent of the Tipperary Shoot.

The company expects the results to support a material increase in confidence to the Tipperary Mineral Resource, which is likely to be upgraded to the Indicated category enabling conversion to Ore Reserve.

At 31st December 2010, Tipperary contained an Inferred Mineral Resource estimate of 101,000 ounces.

Also presenting today was Meridian Minerals managing director Jeremy Read, managing director of Meridian Metals, which announced to the market yesterday it had extended the period of exclusivity for due diligence to be completed on the potential acquisition of a 75% interest in Russian Gold Company, Omchak, has been extended by a further two months.

Meridian announced in February that it had entered into a non-binding Heads of Agreement to acquire a 75% interest in the non-alluvial assets of Russian gold company ZAO ZRK Omchak from UK listed Petropavlovsk PLC.

Meridian and Petropavlovsk have now agreed to extend the exclusivity period from 11 May 2011 until 11 July 2011.

Meridian said this two month extension has been necessary to allow it to complete its due diligence on Omchak and its assets.

Under the HoA, Meridian and Petropavlovsk have agreed to an exclusivity period which now ends on 11 July 2011 during which Meridian intends to:
– Complete the due diligence to its absolute satisfaction;
– Advise Petropavlovsk if Meridian will proceed with the purchase of the 75% interest in the non-alluvial assets of Omchak;
– Negotiate and enter into a sale and purchase agreement reflecting the terms and conditions of the acquisition as agreed in principle in the HoA and such other terms as customary for this type of transaction;
– Conclude a shareholders’ agreement to record the terms and conditions for the development of the Omchak assets.


Sheffield Resources rock chips return high grade iron

Bulk minerals explorer Sheffield Resources has announced high grade iron results from rock chip sampling on its tenements located in the eastern Pilbara region of Western Australia.

Initial helicopter-supported reconnaissance took 40 samples, which outlined new zones of iron enrichment on three of Sheffield’s four recently granted iron ore tenements in the region.

The most significant results are from the Three Pools project located 22km north of Newman, where five substantial areas of high grade iron mineralisation have been outlined.

A total of 25 samples from the project averaged 63.0% iron with low to moderate levels of impurities.

Profiles of the iron enrichment in outcrop show evidence of mineralisation extending to depth.

The iron mineralisation at Three Pools is associated with both the Boolgeeda Iron Formation and a banded iron formation within the Wongarra Volcanics.

The Boolgeeda Iron Formation is known to host several significant iron deposits in the Pilbara, including FMG’s Horatio deposit and Atlas Iron’s Hickman and McCamey’s North discoveries.

Sheffield Resources managing director Bruce McQuitty said the results at Three Pools demonstrate the company’s ability to identify new iron ore targets from greenfields projects.

“Sheffield’s experienced exploration team have outlined five significant zones of mineralisation at Three Pools within just three months of the granting of the tenements,” he said.

“We plan to prove up these targets fairly quickly and to consolidate further iron projects with the aim of attaining sufficient size and scale to unlock an infrastructure solution in the region.”

Detailed mapping and sampling will be undertaken at Three Pools during the latter half of Q2 2011 ahead of drilling planned for Q3.

Other results from the reconnaissance work include:

The identification of Channel Iron Deposit (CID) and minor bedded iron enrichment on the Eagle Pool tenement located 4km west of the Three Pools project, and

The outlining of a zone of iron mineralisation with a strike length of approximately 500m to 600m with a thickness of between 20m and 40m at Sheffield’s Panorama project located near Atlas Iron’s Abydos mining centre. Seven rock chip samples from this zone averaged 59.8% iron, although phosphorous levels were elevated.

Ampella scores positive drill results at Konkera

Ampella Mining has announced the hit of multiple wide high-grade zones of gold mineralisation during infill drilling at the Konkera 2.2 million ounce gold JORC Code Compliant Resource on its 100% owned Batie West Project in Burkina Faso, West Africa.

Konkera has an Indicated Resource of 22.5 Mt at 1.6 grams per tonne gold for 1,182,600 ounces gold and an Inferred Resource of 19.9 Mt at 1.6 g/t gold for 1,041,500 ounces gold.

The latest gold assays stem primarily from extensions to drill-holes targeting projected continuations to gold mineralisation associated with the Konkera Resource at Konkera Main, Konkera East and Konkera North.

From Konkera Main, Ampella received gold assays for an additional 16 drill-holes for a total of 3,384m of drilling. 

Multiple zones of higher grade gold mineralisation were intersected in a number of holes and included:
20m at 4.5 g/t gold and 9m at 3.0 g/t gold from 144m
41m at 3.0 g/t gold and 19m at 2.2 g/t gold from 114m
15m at 3.9 g/t gold and 12m at 3.1 g/t gold from 128m
11m at 2.9 g/t gold and 7m at 3.5 g/t gold from 116m

Ampella is close to completing a further 10 drill-holes at Konkera Main with the aim to extend the Resource to depth.

At Konkera East, assay results were returned for 5 additional infill drill-holes for a total of 884m of drilling. Again, multiple zones of gold mineralisation were intersected in a number of holes and included:
4m at 6.0 g/t gold and 6m at 4.8 g/t gold from 189m (KERD029)
6m at 2.6 g/t gold and 4m at 2.6 g/t gold from 15m (KMRD029)
10m at 2.9 g/t gold from 173m (KNRD073)

At Konkera North, gold assays were received for 5 additional re-entry drill-holes for a total of 282m of drilling.  The best drill-hole extension consisted of:
33m at 1.6 g/t gold from 112m (KNRD118)

Ampella remains confident the deep drilling program currently underway at Konkera North has the potential to add additional resource ounces to the Konkera Gold Resource.

To date, a total of 14 holes have been completed out of 17 planned holes. 


Maximus Share Purchase Plan raises $707,500

The recently closed non-renounceable share purchase plan of South Australian gold play Maximus Resources, which closed on Wednesday 4th May 2011, raised a total of $707,500 before costs.

This represents approximately 41.6 million new shares to be issued to the 112 participating shareholders.

Proceeds from the SPP will be used principally to fund completion of the detailed review of the
Narndee suite of gold and base metals tenements, located in the gold producing, Mount Magnet region of Western Australia.

The funds will enable Maximus to commence field exploration programs on recently identified targets on Narndee, as well as providing the company general working capital.

The SPP offered a maximum take‐up of 90,129,311 shares for a total of $1.5 million.

“Notification to shareholders will commence on Wednesday 11th May and new shares quoted on the
ASX effective Thursday 12th May 2011,” Maximus said in an announcement.

“New shares issued through subscriptions via the SPP are ordinary fully paid shares and will rank equally with existing Maximus ordinary shares.”

The Board of Directors of Maximus said the result was pleasing, given the current turmoil in the investment market and remains enthusiastic about the significant upside potential at Narndee following the recent interrogation of the TEM survey and ground gravity data.

Royalco Resources looks at East African projects

Melbourne-based Royalco Resources has executed Memoranda of Understanding (MoU) with two, geotechnically qualified Ethiopian entities, over two separate project areas approximately 450 kilometres north of the capital city of Addis Ababa.

The MoUs signal the company’s initial foray into acquiring gold and base metal exploration leases within Ethiopia.

The company has flagged these to potentially be the first of what could be a number of East African transactions.

The first of the MoUs signed is for an Exploration Licence covering what is known as the Sarkaysa project, which the company said is, “highly prospective for gold and base metals”.

Royalco can earn a 60% interest in the tenement for the expenditure of US$1 million.

Initial exploration at Sarkaysa will entail soil sampling and geophysical interpretation to be completed over coming months with a view to drilling identified targets by the last quarter this year.

The second MoU, signed with a separate local Ethiopian entity, encompasses the Kilaj project, located in the same region as Sarkaysa.

Targets include both precious and base metals with Royalco earning an 80 % interest in the project area for an expenditure of US$750,000.

Proposed exploration activities at Kilaj will again encompass soil sampling and geophysics.

“Ethiopia has recently enacted mining legislation, including fiscal obligations, considered to be globally competitive,” Royalco said in an announcement.

“Other mining groups active in the country include BHP Billiton (potash), AngloGold (precious metals), Nyota (precious metals), as well as a handful of Canadian and UK junior exploration groups focussing on either potash or precious metals.”
Royalco’s expects it exploration to involve a blend of advanced and grass roots prospects where access is straight forward with selected targets offering a higher risk-higher reward outcome in a short time frame.

Both the Sarkaysa and Kilaj projects fall into the grass roots category.

Royalco is currently in negotiations regarding additional projects in Ethiopia as well as in countries nearby.


Toro and Deep Yellow drill Namibia

Nova Energy Namibia, which is owned by a consortium including Deep Yellow, Toro Energy and Sixzone Investments, is to commence a drilling program of approximately 10,000m RC drilling on its tenements in Namibia.

 Deep Yellow, operating through Reptile Uranium Namibia, will manage the program, which has been designed, subject to strict environmental and rehabilitation conditions, to test the “Alaskite-style” uranium potential of EPL 3669.

According to a Toro Energy release, “The drilling will evaluate the western strike extension of uranium mineralisation recently reported by Extract Resources at the Pizarro prospect (8m metres @ 638 ppm U3O) along with other targets related to low magnetic responses contained within a stratigraphic and structural corridor.”

“Holes will be drilled to a nominal 150m depth. All holes will be gamma probed and anomalous zones will be assayed.”


RIU Sydney Resources Round-up – Day One

The 2011 RIU Sydney Resources Round-up kicked off this morning to news that Wayne Swan had left the mining industry out of the Federal Budget.

That came as a bit of an anti-climax, especially for us journalistic types who enjoy a good government versus mining industry stoush.

It would appear the Gillard government has done its utmost to avoid any confrontation with the miners leaving that particular battle to be picked up by the Greens.

Greens leader Bob Brown was fairly succinct in his description of the budget saying it was “lacklustre”, giving a clear indication his party will be expecting a few changes to be made to the budget make-up.

“It’s got some high notes and low notes, but the music’s not there,” he told ABC TV.

“This is a wealthy country, we have the best resources base in the world, there is a mining boom and all we’re hearing from the big parties is cuts.”

Brown however, didn’t go into any great detail about any of the changes the greens may want to make, saying he wanted to take the time to see how the budget was configured and set in legislation.

“We have always said we’re going to ensure supply,” he said.

“On the other hand it is our job to improve and if we can improve this budget for a better outcome for Australians we’ll certainly be looking at that.”

Meanwhile at the Resources Round-up delegates were treated to a key note address on what the immediate future may hold for the base metals market by BNP Paribus senior metals strategist, commodity markets strategy Stephen Briggs.

“Increasingly metal prices, base metal prices in particular, will have to flourish on their own fundamentals more than on wider economic conditions,” Briggs said.

Briggs said base metals have become almost a mainstream asset class in the last couple of years.

Not only as an avenue to buy into futures markets, but there has been any number of other paths for investors that have been supportive of this trend.

“These metal markets also become ever more forward looking,” Briggs said.

“But I would warn you that this forward looking aspect of the market is not symmetric.

“All financial markets, but particularly base metal markets, are very good at pricing in future bullish developments.

“They are truly lousy at anticipating bearish developments.”

On the company front junior Pilbara iron ore producer BC Iron announced that it had terminated its proposed Scheme of Arrangement with Regent Pacific Group.

The company said in an announcement to the market that it “wishes to advise that its independent expert, KPMG, has concluded that Regent Pacific Group Limited’s (Regent Pacific) proposed Scheme of Arrangement (Scheme) is not fair and not reasonable and therefore, is not in the best interests of shareholders.”

The termination brings to an end the protracted take-over bid from Regent.

 “After careful consideration and taking into account the conclusions of the Independent Expert and Senior Counsel, the BC Iron Board has determined that the withdrawal of its recommendation for, and termination of, the Scheme of Arrangement is in the best interests of our shareholders,” BC Iron chairman Tony Kiernan said.

“This decision largely reflects the positive changes in your company’s value since announcing the Scheme.

“Looking forward, the Board and management are excited at the opportunities to grow BC Iron for the benefit of all shareholders.
“Our status as Australia’s latest iron ore producer at a time of very strong iron ore prices makes the Company extremely well placed to consider future strategic opportunities.”