Aeris Resources sets sights on organic and strategic growth.

/in /by

THE INSIDE STORY: By rights, investors should be extremely familiar with Aeris Resources (ASX: AIS), especially in the current environment which is demonstrating an appreciation of developed, producing resource companies.

Aeris Resources is Australia’s fifth largest, independent copper producer by volume produced.

Its flagship asset is the Tritton Operations, located in New South Wales, which has delivered record production in three consecutive years.

Tritton delivered annual copper production for FY16 of 30,425 tonnes, far exceeding Aeris’ upgraded guidance for the financial year of 29,500 tonnes.

Aeris has completed a JORC 2012-compliant upgrade of the Mineral Resource and Ore Reserve estimates for the Tritton deposit, taking the Proved and Probable Ore Reserve estimates for the deposit to 6.4 million tonnes at 1.6 per cent copper for 100,000 tonnes of contained copper metal.

This was a substantial rise, representing a 32 per cent increase by contained metal on the company’s previous reported Ore Reserve estimate from June 2015 of 4.4 million tonnes at 1.7 per cent copper for 76,000 tonne of contained copper.

What is also important to note, is that the upgrade followed depletion by mining for the year of 28,000 tonnes of contained copper metal.

The updated Mineral Resource and Ore Reserve estimates for the Tritton deposit also underpin an extension of the mine life at the Tritton Operations to 2023.

The Tritton deposit remains open at depth, which has encouraged Aeris to commence planning further resource drilling earmarked for when suitable underground drill locations become available.

The Tritton Operations consist of a 1.8 million tonne per annum processing plant, nourished by ore mined from the Tritton underground mine and supplemented by ore from the new Murrawombie underground mine that will reach full production in FY17.

The Aeris Board approved development of the Murrawombie mine in the March quarter of FY16 following the positive completion of a Feasibility Study.

Production from Murrawombie is set to replace production from the Larsens and North East mines.

With current Ore Reserves of 3.3 million tonnes at an average grade of 1.3 per cent copper Murrawombie has emerged as a worthy replacement bringing with it a higher volume and longer life deposit, which Aeris expects to sustain and increase the supply of ore to the processing plant.

“By combining the ore from Murrawombie with the existing ore being mined at Tritton we can increase throughput of our processing plant to a rate of about 1.8 million tonnes per annum in FY17 and beyond,” Aeris Resources executive chairman André Labuschagne told The Resources Roadhouse.

“The development of the Murrawombie underground mine is expected to reach full production capacity in the second half of FY17.

“The Murrawombie deposit is the largest known concentration of copper metal to be identified to date on our tenements – outside of the Tritton deposit.

“That made it an obvious choice to supplement the ore we are currently mining at Tritton.”

As it builds a solid production base from the development of the Murrawombie mine and the continued mining at Tritton, Aeris has flagged intentions to find and develop more prospects.

To do so it will be actively exploring across the company’s 1,800 square kilometres of tenements surrounding the Tritton Operations, as it considers the region to be highly-prospective for discovering more copper orebodies.

To that end, Aeris is planning to spend some $7.5 million as it seeks to reinvigorate greenfields exploration activities at Tritton, on the lookout to find more Tritton-sized orebodies measuring over the 10 million tonne mark.

“We have been steadily evolving an exploration strategy for the region, which has been extremely effective in both identifying and testing for VMS sulphide systems, as demonstrated by exploration success at Avoca Tank, Kurrajong, Carters and Budgery,” Labuschagne said.

“We consider the quality of the remaining targets in the Tritton region and the potential for further discoveries in this large VMS copper district to be excellent.

“Our previous success, and knowledge of Besshi VMS systems – like Tritton – characterised by repeats along strike, multiple horizons and lenses and significant depth potential, provides confidence for discovery of additional deposits along the multiple prospective horizons within the region.”

Exploration and mining aside, Aeris has also been beavering away on the corporate front.

The company signed agreements to restructure and reduce debts owed to with its current financier, Standard Chartered Bank (SCB) and for a new financier, Special Portfolio Opportunity V Limited (PAG SPV) to provide the company with a US$25 million Working Capital Facility.

This reduced the SCB debt by 55 per cent to US$50 million, which is to be repaid over a period of seven years, and provided financial flexibility through the Working Capital Facility.

As an added sweetener, Aeris was able to redeem/convert US$7 million in Convertible Notes held by Credit Suisse at a substantial discount.

However, it seems Aeris is not prepared to just comfortably rest on its laurels having established a sound production path at Tritton, supported by a strong financial footing.

The company has signalled its goals for the future involve sounding out opportunities to grow, both organically and through activity in the area of mergers and acquisitions.

Aeris Resources has assembled a Board and management team with a compelling track record in corporate strategy and operational efficiency.

The company has outlined a clear vision to become a mid-sized, multi-mine company, delivering shareholder value through a focus on operational excellence.

Its focus on planning, people and maintenance has been proven by record production levels, unit cost decreases, life of mine extensions and identification of new exploration targets in the company’s extensive landholding in the prospective, under-explored copper region surrounding the Tritton Operations.


Aeris Resources Limited (ASX: AIS)
…The Short Story

HEAD OFFICE
Suite 2.2, Level 2, HQ South Tower,
20 Wickham Street,
Fortitude Valley, Brisbane QLD 4006 Australia

Ph: +61 7 3034 6200

Email: info@aerisresources.com.au
Website: www.aerisresources.com.au

DIRECTORS
André Labuschagne, Alastair Morrison, Michele Muscillo, Marcus Derwin

MAJOR SHAREHOLDERS
Standard Chartered Private Equity (Hong Kong) 15.32%
Glencore Finance (Bermuda) Ltd 9.39%
DGJ Keet Investments (Singapore) 9.34%

Middle Island eager to apply polish to Sandstone

/in /by

THE INSIDE STORY: With much love in the air for gold at present it makes perfect sense that a company looking to acquire a project would want one it can bring on stream sooner rather than later.

The acquisition of the Sandstone gold project by Middle Island Resources (ASX: MDI) is a case in point.

In 2013, Middle Island let it be known it was eager to find advanced gold (and gold/copper) opportunities, primarily within Australia and Africa.

The company made its objectives on the subject very clear – it was in the market to acquire an asset which would meet its stringent criteria: that it would mitigate shareholder exposure to sovereign and political risk; provide near-term production and cash flow potential; and require limited capital expenditure to develop.

As its search deepened it became apparent Australia would be the best jurisdiction to find, and work up, such an asset with positive administrative synergies, a favourable recent exchange rate and relatively lower operating cost environment.

There was also a much appreciative audience from improving market support for ASX-listed gold stocks.

The project to raise its head above the parapet was the Sandstone gold project and processing facility, located 12 kilometres south of the township of Sandstone, approximately 600km northeast of Perth between the mining towns of Mt Magnet and Leinster in the East Murchison Mineral Field of Western Australia.

The project is an attractive package, comprising 100 per cent interest in two granted Mining Leases and a JORC 2004 Mineral Resource of approximately 11 million tonnes at 1.4 grams per tonne gold for total contained gold of around 480,000 ounces of gold.

With this comes a 600,000 tonnes per annum CIP processing plant – which has been on care and maintenance since 2010 – a power plant, workshops and offices, licenced tailings facility, bore field, three fully equipped camps on freehold title in the nearby settlement of Sandstone and a substantially inventory of equipment and spares.

Sandstone is a proven gold producer with historic production in excess of one million ounces of gold from surface, underground and open pit operations since the 1890s.

The area has also been productive in more recent times under the watch of previous owners, including Herald Resources in the 1990’s and Troy Resources (ASX TRY), which operated the mine from 1999 to 2010.

Troy upgraded the plant to 600,000 tonnes per annum capacity in 1999 then extracted and processed a combined total of approximately 4.4 million tonnes of ore at an average grade of 3.6g/t gold producing 508,000 ounces of gold before placing the operation on care and maintenance in September 2010.

“The plant is in good condition and we anticipate spending five to eight million dollars to refurbish it and bring it back on line,” Middle Island Resources managing director Rick Yeates told The Resources Roadhouse.

After acquiring Sandstone from Troy in December 2012, Southern Cross Gold (SXG) never produced any gold, instead its objective was relocating the processing plant to its Marda project, which also never occurred.

SXG merged with Poly Metals to form Black Oak Minerals with the new entity more focused on assets in New South Wales, only to be placed into administration in 2015 and subsequently liquidation in early 2016.

Middle Island was able to pick up the Sandstone project for a highly-competitive price of $2.5 million due to its unloved status, completing the acquisition in July, which involved the original payment of a $250,000 deposit and $1.25 million at completion of the deal.

A further $500,000 is due at 18 months following completion (or $400,000, if paid by 11 October 2016), plus $500,000 on re-commencement of gold production from any source.

The tenements come with a legacy 2 per cent NSR royalty payable to Troy, along with a royalty of $1 per tonne of ore mined and processed from M57/129 to Herald and National Resources Exploration.

The transaction value of $2.5 million equates to approximately US$4 per resource ounce.

Although it didn’t produce any gold from the project, SXG did complete pit optimisations on the two main deposits of Two Mile and Shillington in 2012-2013, using then current contract mining and processing costs, as well as process recoveries from Troy’s metallurgical testwork and production records, using a gold price of $1,600 per ounce.

These numbers would stack up well today considering the drop in operating costs and buoyancy of the Australian dollar gold price current producers enjoy.

The historical work included drilling that identified two exploration targets at Two Mile Hill, the first being a 250m long and 70m wide sheeted-veined, tonalite intrusive, which returned historic drill intercepts of:

141m at 2.30g/t gold;
353.3m at 1.04g/t gold; and
156.3m at 1.14g/t gold.

The second is a strongly mineralised banded iron formation (BIF), which obliquely intersects the tonalite at depth where drilling of the BIF adjacent to the tonalite returned:

8.5m at 49g/t gold;
13.7m at 26g/t gold;
4.5m at 25g/t gold; and
3.5m at 20g/t gold.

“These two targets are brownfields opportunities that will not be addressed or included in the current feasibility program and study,” Yeates explained.

“The second target will, however, be tested via a diamond drilling program scheduled to commence late September.”

SXG’s optimisation of the Shillington and Two Mile open pit deposits estimated Indicated and Inferred Resources within the pit shells of approximately 1.1 million tonnes at 1.4g/t gold.

“Our immediate plans include a program of drilling to upgrade these deposits and the Shillington North deposit to Indicated Resource status under the JORC 2012 guidelines prior to completing a Pre-feasibility Study,” Yeates said.

“We have commenced our maiden drilling program at Sandstone, comprising approximately 153 holes for around 4,200 metres of RC drilling, designed to infill existing resources at the Two Mile Hill, Shillington and Shillington North deposits.

“Our primary objective is to upgrade the balance of Inferred resources comprising the three deposits (approximately 15%) into the Indicated category for inclusion in the PFS in September.

“We are also hoping to extend mineralisation around the periphery of the optimised pit shells in order to define additional resources for inclusion in the PFS.”

The drilling will comprise two components; the first being shallow, vertical holes on a 20m by 20m offset pattern to upgrade and extend known mineralised laterite flanking the Two Mile Hill deposit.

The second will comprise deeper, angled holes drilled within and adjacent to the optimum pit shell margins to upgrade the balance of the existing Inferred resources into the Indicated category.

Once drilling has been completed and the data fully validated, all new and existing drilling data for the Two Mile Hill, Shillington and Shillington North deposits will be applied in re-estimating the resources (2012 JORC Code guidelines) to underpin the PFS.

“Hopefully we will be in a position very soon to be able to make the call to proceed with recommissioning Sandstone’s existing 600,000 tonnes per annum CIP gold processing plant,” Yeates said.

“All that will be decided once we, hopefully, receive a positive outcome from the PFS in December.”

Middle Island Resources Limited (ASX: MDI)
…The Short Story

HEAD OFFICE
Suite 1
2 Richardson Street
West Perth WA 6005

Ph: +61 8 9322 1430

Email: info@middleisland.com.au
Website: www.middleisland.com.au

DIRECTORS
Peter Thomas, Rick Yeates, Beau Nicholls

Break of Day brightens Musgrave Minerals’ future

/in /by

THE INSIDE STORY: Timing, they say, is everything and one of the best times for an exploration company to release attention grabbing drill results is when it is conducting a fund raising and associated Share Purchase Plan (SPP).

Perth-based exploration play, Musgrave Minerals (ASX: MGV) timed its run perfectly recently with the announcement of extremely encouraging drilling results from the company’s Cue gold project, located in the Murchison region of Western Australia.

Musgrave Minerals is currently in the middle of a follow-up program of reverse circulation (RC) drilling at the Break of Day prospect.

The initial results from the first two holes of the program, 16MORC006 which was drilled to test the up-dip projection of the footwall vein and 16MORC007, which was drilled 25 metres to the south, provided plenty of excitement by holes intersecting both the footwall and hanging-wall veins.

In doing so the drilling demonstrated the continuity of and extended the mineralisation which remains open at depth and along strike at Break of Day.

Results included:

16MORC012
4 metres at 12.3 grams per tonne gold from 189m to 193m down hole in.

This result followed earlier intersections of:

16MORC006
2m at 10.8g/t gold from 66m to 68m down hole (hanging-wall vein) and 2m at 36.8g/t gold from 101m to 103m down hole (footwall vein); and

16MORC007
1m at 33.5g/t gold from 80m down hole (hanging-wall vein).

“These results were a further demonstration of the high grade gold potential we believe to exist at the Break of Day prospect,” Musgrave Minerals managing director Rob Waugh told The Resources Roadhouse.

“It was most encouraging to receive results that provided confirmation of the twin parallel gold veins at the prospect.It was an extremely positive outcome and we look forward to seeing what else the rest of the current drilling program has to offer.”

Musgrave is working towards an 80 per cent interest in the Cue project, which is a Farm-In and Joint Venture Agreement with Silver Lake Resources (ASX: SLR).

The project consists of the Moyagee gold project, which hosts the Break of Day and Purple Rain prospects and the Hollandaire copper project, which contains the Mt Eelya, Hollandaire, Hunky Dory, and Lady Stardust prospects.

Musgrave considers there to be significant potential to extend existing mineralisation and to discover new mineralisation on all these prospects within the Cue project area.

Moyagee project and hosts a combined JORC (2012) and JORC (2004) compliant Mineral Resource of 1.93 million tonnes at 2g/t gold for 126,900 ounces contained gold within four separate deposits; Lena, Leviticus, Numbers and Break of Day.

The Break of Day prospect has emerged as the project’s main contender, and as such the major focus of Musgrave’s attention.

The prospect already boasts a JORC 2004 compliant Inferred Mineral Resource of 335,700 tonnes at 1.91g/t gold for 20,600 ounces of contained gold, which the company is eager to increase.

“What we can see from the work we have completed to date, is that the gold mineralisation at Break of Day has potential to extend over a strike length of more than 400 metres and remains open down dip and down plunge,” Waugh said.

“Our plan for Break of Day is to drill in order to increase the Resource base to enable us to commence studies to define a clear path for us to get to development in the shortest possible time frame.

“We are confident we can continue the recent exploration success at Break of Day, where we have demonstrated that potential exists for high-grade gold. Now we need to define the strike extent of the gold mineralisation and to establish an Inferred Resource.”

Musgrave also enjoyed early drilling success at the Mt Eelya prospect where it encountered massive and stringer copper-gold sulphide mineralisation.

RC drill hole 16EHRC002 intersected:
8m @ 1.6 per cent copper, 0.6g/t gold and 4.5g/t silver.

The intersection, from 115m to 123m down hole with visible chalcopyrite (copper sulphide) identified throughout the interval, was part of an initial reverse circulation (RC) drill program.

Musgrave also completed a Versatile Time-Domain Electromagnetic (VTEM Max) airborne geophysical survey over the broader Hollandaire project area, which identified multiple bedrock conductors the company determined to represent high-priority gold–copper targets.

“The initial Mt Eelya sulphide drill result was the ideal way to kick off a drilling campaign and gave much support to our view on the upside volcanic massive sulphide potential of the project,” Waugh said.

“Obviously, follow-up drilling is required there, which we would have already completed had heavy rain not prevented us from already doing so.”

“These are VTEM targets – conductive bodies sitting below the surface – and what we have seen, in the work we have already carried out, is that sulphide is one of the strong conductors in the area and obviously an indication of copper-gold mineralisation.”

The results from Break of Day and My Eelya not only encouraged the company in its endeavours, they also encouraged the involvement of the investment community.

Musgrave announced a placement in July raising $750,000 towards the cause.

A subsequent Share Placement Plan looking to raise a further $1.25 million was recently closed heavily oversubscribed with applications totalling $1.984 million.

Patersons Securities, which underwrote the SPP, followed suit and agreed to participate in a Top‐Up Placement to raise up to a further $500,000.

“The success of the recent raising and subsequent placement is a huge show of support for the potential of the Cue project by our shareholder base,” Waugh said.

“The additional funding will have a twofold effect in that it will enable us to progress the drilling of the high-grade gold mineralisation at Break of Day through to resource status while also allowing us to meet expenditure requirements under the Stage 1 Earn‐In to acquire 60 per cent of the Cue project.”

The funding will also allow Musgrave Minerals room to test its other targets within the Cue project, such as Purple Rain and Lady Stardust.

Purple Rain is situated only 2km south-west of the Break of Day prospect and was identified through analysis of historical data of two rotary air blast (RAB) drill holes highly anomalous in gold.

The previous drilling at Purple Rain returned:

MRB1559
6m at 3.25g/t gold from 28m down hole, including a high grade zone of 2m at 8.02g/t gold from 29m down hole; and

MRB1560
5m at 0.44g/t gold from 39m down hole ending in mineralisation at 44m.

“Purple Rain is another indication of the excellent gold potential we consider the Cue project to possess,” Waugh said.

“The historical intersections we have analysed at Purple Rain are very similar in grade to what we have seen in the weathered zone at Break of Day.”

At the southern end of the Lady Stardust VTEM target, Musgrave has identified a new surface gold anomaly extending for approximately 700m in strike and 200m wide that is yet to be drill tested.

A further copper soil anomaly, identified using a pXRF analyser, is co-incident with the Lady Stardust VTEM target, which Musgrave has interpreted to suggest the source of the conductor may be related to base metal mineralisation.

“We also have aircore and RC drilling planned to test both the gold and copper anomalies at Lady Stardust.

“Things are looking really positive for us and we’re extremely excited by the results we have to date and we’re looking forward to more drilling to come.”

Musgrave Minerals Ltd (ASX: MGV)
…The Short Story

HEAD OFFICE
28 Richardson Street
West Perth WA 6005

Ph: +61 8 9324 1061

Email: info@musgraveminerals.com.au
Website: www.mugraveminerals.com.au

DIRECTORS
Graham Ascough, Rob Waugh, Kelly Ross, John Percival

MAJOR SHAREHOLDERS
Silver Lake Resources Limited 5.57%
Independence Group NL 5.26%
ABN AMRO Clearing Sydney Nominees Pty Ltd 4.06%
Barrick (Australia Pacific) Limited 3.50%

Neometals shifts focus downstream as Mt Marion enters production

/in /by

THE INSIDE STORY: Trailblazing lithium company Neometals (ASX: NMT) and partner Mineral Resources (ASX: MIN) have taken large steps towards downstream lithium production from concentrates produced at the Mt Marion lithium mine.

Neometals is in Joint Venture with and China’s Ganfeng Lithium Company developing the Mt Marion project near Kalgoorlie in Western Australia.

Neometals and Mineral Resources have the option to offtake 51 per cent of production after the third year of production (2019/20).

Neometals and Mineral Resources separately own the patented ELi Process, which converts spodumene concentrate into firstly, a high purity lithium chloride solution, then to high-purity lithium hydroxide through the conventional electrolysis process.

In essence a variant of the Chlor-alkali process which turns sodium chloride into sodium hydroxide (caustic soda).

The technology is owned and being developed by Reed Advanced Materials Pty Ltd (RAM), which is 70 per cent-owned by Neometals and 30 per cent-owned by MIN.

A recently-completed Feasibility Study determined using the ELi Process can produce low cost battery grade lithium products from spodumene concentrate sourced from the Mt Marion project.

The FS confirmed the project is technically feasible and economically viable with an evaluation of the operation determining its ability to produce 20,000 tonnes per annum of lithium carbonate equivalent (LCE) battery grade lithium hydroxide and lithium carbonate by conversion of spodumene concentrates.

Neometals and MIN believe the ELi Process provides a key competitive advantage with lower capital and unit operating costs when compared to current industry averages using conventional technology.

Key numbers to emerge from the FS include:

Average Annual Production of 14,000 tonnes Lithium hydroxide monohydrate (LiOH.H2O) and 5,600 tonnes lithium carbonate (Li2CO3);

Life of Plant (LOP) of 20 years;

Life of Plant Revenue of US$ 4,042 million;

Pre‐tax Net Cash flow of US$ 82.39 million;

Pre‐tax NPV (12% discount rate) of US$481.7 million;

Pre‐tax Internal Rate of Return 51 per cent;

Cash Operating Cost per tonne of LiOH.H2O – US$ 4,630;

Cash Operating Cost per tonne of Li2CO3 – US$ 5,345;

Pre‐production Capital cost (including EPCM and Contingency) US$ 158 million; and

Payback of capital costs in 2.6 years

“In terms of capital cost advantages – we will operate at around half of the capital cost arrangements of existing brine operations and around one third of what a new brine operation would cost,” Neometals managing director Chris Reed told The Resources Roadhouse.

Based on the FS results, RAM indicated its supports the project entering a full, integrated pilot plant study to refine the process design and confirm operating parameters through to a detailed design phase for a full scale plant.

“The next step we hope to take in the project’s development plan is the completion of an integrated pilot plant test program using run‐of‐mine concentrates from Mt Marion before we commit to the detailed design and construction of a full scale plant,” Reed explained.

The Mt Marion lithium mine was galvanised by the release of an increased Mineral Resource Estimate for the project taking it to Indicated and Inferred Mineral Resources of 60.5 million tonnes at 1.36 per cent lithium oxide (Li2O) and 1.09 per cent iron (Fe), at a cut-off grade of 0.3 per cent Li2O.

This represents a substantial increase in the size of the mineral resource of 160 per cent in the total contained lithium at the project from the previous Resource of 23.24 million tonnes at 1.39 per cent Li2O, at a cut-off grade of zero per cent Li2O.

“The next stage for us, after releasing the 160 per cent Resource increase, is to follow that up with a new Resource in late August, after which we anticipate declaring our maiden Reserve for the project just as we expect to be commissioning the plant,” Reed said.

The emergence of lithium as a share market favourite has produced a great deal of debate in recent times as to whether the commodity should be categorised as fad or fact.

To get some bearing, it makes sense to check out the implementations and current market trends for the product.

Lithium’s most obvious use is across the battery market for modern-day necessities such as computer, mobile phones, and televisions and, the growing electric car industry.

Meeting these current demands has not been as straightforward as most people would expect with the reality being a low base of production capacity in the high purity product sector responsible for a tightness in the current market for battery grade lithium hydroxide and lithium carbonate due to high demand growth and constrained supply.

Lithium market watchers have predicted market demand will grow substantially for the next five years through to 2020.

It is within this timeframe that the JV partners Neometals and MIN are aiming to commence production of lithium battery materials sources from conversion of Mt Marion concentrates.

“The present reality is that spodumene converters in China dominate the current battery market supply capacity for lithium hydroxide,” Reed said.

“The result of this domination of the market has been a geographic concentration of production.

“We believe the Mt Marion project has the potential to bring new supply capacity at competitive operating and capital costs to the market.”

Neometals continues to advance its Barrambie titanium project in Western Australia.

Barrambie rings in as one of the world’s highest grade titanium deposits, containing total Indicated and Inferred Mineral Resources of 47.2 million tonnes at 22.2 per cent titanium dioxide (TiO2), 0.63 per cent vanadium pentoxide oxide (V2O5), and 46.7 per cent iron   oxide (Fe2O3), at a cut‐off grade of 15 per cent TiO2.

Neometals plans to undertake a full pilot plant evaluation of the proprietary hydrometallurgical technology in the first half of 2017 following mini‐pilot plant optimisation testwork, which has been scheduled to start in the September Quarter 2016.

Should the full pilot scale test work do what it should, Neometals’ proposes to proceed to a Feasibility Study in 2017.

The company has stated its preferred project development strategy would be to advance the project to attract a titanium industry partner who would fund and operate the development of the Barrambie project on a shared equity or joint‐venture basis.

Neometals holds an exclusive licence of proprietary technology currently being evaluated for the Barrambie project.

“Neometals would be responsible for managing the commercialisation and development of the ‘Neomet Process’ technology, while all revenue received from the commercialisation of the technology will be split 25:75 between NMT and the owners of the technology,” Reed said.

Neometals struck a Strategic Alliance with Sedgman Limited, a wholly owned subsidiary of CIMIC Group (ASX: CIM), to provide the platform for the commercialisation of the technology, at no up‐front cost to NMT.

From there Neometals hopes to develop and hold a portfolio of royalty interests from sub‐licencing the technology in addition to deploying the technology for the Barrambie project.

Neometals Ltd (ASX: NMT)
…The Short Story

HEAD OFFICE
Level 1, 672 Murray Street
West Perth WA 6005

Ph: +61 8 9322 1182

Web: www.neometals.com.au

MAJOR SHAREHOLDERS
D Reed 11.7%
Melaid 7.2%
Top 20 (31‐Mar‐2016) 38%

Doray Minerals doing just fine at Deflector

/in /by

THE BOURSE WHISPERER: Doray Minerals (ASX: DRM) checked in to let the market know how things are progressing at the company’s Deflector gold project.

Doray recently commenced production of gold bullion and gold-copper-silver concentrate at the Deflector mine, some 14 months after its takeover of Mutiny Gold.

Open pit mining of the West and Central Lode pits is continuing with the open pit just over two thirds completed by the end of July.

Doray said grade control drilling it has carried out has indicated potential for additional oxide ore at the southern end of the pit, which could be mined and processed before the company makes the transition to underground primary ore.

This additional material is currently being scoped out with further drilling.

On the underground side of the operation – development is progressing on schedule with decline and lateral access advanced 230 metres at the end of July with various underground infrastructure installed.

Ramp-up of the purpose-built processing plant, including gravity and flotation circuits, is continuing with treatment of oxide material from the open pit.

“The processing plant has performed against expectations to date and the project should achieve ‘steady state’ production when the transition to primary ore sourced from underground is completed,” Doray Minerals managing director Allan Kelly said in the company’s announcement to the Australian Securities Exchange.

“Over the next few months, we will complete mining and processing of the oxide and transitional ore which together comprise a small component of the overall production profile, both in terms of mining schedule and output.

“The main game at Deflector is the primary underground ore which we are currently developing production from this ore will commence early in the 2017 calendar year and continue for the best part of six years, as per the current mine plan.”

Having completed a period of data compilation and re-interpretation, including re-mapping of the entire Gullewa Greenstone Belt, the Doray Board has approved a maiden exploration budget of $4 million for both In-Mine as well as Near-Mine exploration at Deflector.

The company indicated this budget will be used to test a series of prospective targets within the Deflector tenement package.

Website: www.dorayminerals.com.au

Diggers and Dealers Awards 2016

/in /by

THE CONFERENCE CALLER: The highlight of the closing dinner each year at the Diggers and Dealers conference in Kalgoorlie is the forum’s awards.

MEDIA AWARD

Paul Garvey: The Australian newspaper.

The media award that is presented at Diggers and Dealers each year is voted on by companies operating in the resources industry and peers within the media industry and recognises a journalist who has demonstrated a passion for the resources industry and who has been proactive in ensuring that the resources industry retains a strong external profile.

Paul Garvey (Garvs to his mates) is a worthy and popular winner of this year’s gong.

He has been covering the resources industry in a number of incarnations over the past 14 years.

The successes and spectacular lack of success experienced by his beloved Fremantle Dockers has steeled Garvs’ resolve and provided him with the empathy to report on the highs and lows the industry has endured throughout this period.

Announcing the win, Diggers and Dealers said he has ensured that resources are given excellent exposure in the national media and over an extended period has been a positive and enthusiastic supporter of the mining and exploration industry.

Congratulations, Garvs.

DEALER AWARD

Evolution Mining (ASX: EVN)

This year the winner of the Dealer of the Year Award ticked all the boxes the judges deemed to be required for driving successful corporate growth.

In qualifying for this years’ award, the panel decided Evolution Mining has managed existing assets efficiently, identified, negotiated and integrated new mines and identified potential new exploration projects via strategic acquisitions.

“The measure of this success can be evaluated by corporate production having increased from 438,000 ounces to 803,476 ounces and corporate cash flow increasing from $285 million to $428 million while maintaining efficient project operating costs,” Diggers and Dealers said.

“Shareholders have benefited from this corporate activity through the company market capitalisation increasing from $1.4 billion to $3.9 billion.”

The judges noted that during the acquisition period Evolution Mining acquired the La Mancha and Cowal mining operations and through its takeover of Phoenix developed a significant bank of excellent exploration and near term production opportunities.

DIGGER AWARD

Fortescue Metals Group (ASX: FMG)

Fortescue Metals Group emerged from one of the toughest industry transitions to reap the benefit of its disciplined focus on operating cost reductions, an unwavering approach to delivering production targets while using emerging cash flows to both provide an appropriate return to shareholders through dividends, reducing corporate debt from what many questioned as excessive to one where the balance sheet is now recognised as efficient and has retained strong cash on its balance sheet for future opportunities.

“The company has emerged from a history where many have questioned strategies and the corporate sustainability to being one of the respected companies in the Australian resources sector,” Diggers and Dealers said.

The award was accepted on behalf of the company by CEO Nev Power.

GJ STOKES AWARD

Chris Bonwick

The G J Stokes Memorial Award recognises industry leaders who have delivered sustainable benefit to the companies with which they have been associated and to the industry in general.

This year the award went to Chris Bonwick, who Diggers and Dealers said had made a great contribution technically through his profession as well as having shown disciplined, mature management and vision through his leadership of what is one of the industry’s great success stories.

Bonwick floated Independence Group and managed the company’s transition to production and cash flow while maintaining a commitment to exploration.

Under his management, Independence purchased the first nickel mine that WMC sold off and turned it into a highly profitable production asset, which paved the way for numerous others to follow in the mid-tier nickel mining industry in Australia.

Under Bonwick’s guidance, Independence discovered the famed Tropicana deposit, where it had to manage the process of how to develop or deliver success from a major discovery in a remote region.

While Bonwick is no longer involved in the management of Independence, the company continues to benefit from these early strategies and will do so for many years we expect.

Lithium Australia to sponsor ASX-listing of Canadian LiGeneration

/in /by

THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) managing director Adrian Griffin was sitting in his company booth, smiling like a Cheshire cat, on Day Three of the Diggers and Dealers conference in Kalgoorlie.

His demeanour followed the company’s announcement it would be increasing its international borders with the instigation of a Canadian alliance with LiGeneration Limited.

LIT revealed it has provided seed capital for LiGeneration, which is planning an Initial Public Offering (IPO) for listing on the boards of the Australian Securities Exchange (ASX) before the end of the year.

As part of the deal, LIT shareholders will be offered a priority entitlement to IPO share subscriptions in the LiGeneration float.

LIT will emerge as a significant shareholder and anticipates providing technical and administrative support to LiGeneration.

LiGeneration’s principle assets are lithium pegmatites in Quebec, Canada.

LiGeneration owns 100 per cent interest of the Whabouchi Southwest and Southeast lithium projects, which cover an area of more than 14,000 hectares in three separate project areas, neighbouring the world-class Nemaska Lithium Whabouchi Mine, which LIT said boasts ‘the second largest and richest global lithium reserve’.

LiGeneration also owns 100 per cent of the Wells-Lacourciere lithium project, which has undergone historical exploration consisting of trenching and bulk sampling returning assay results of between 2.87 per cent lithium oxide (Li20) and 4 per cent Li20.

LIT also advised it has lodged a provisional application for an Australian patent with a corresponding trademark in relation to a caustic digestion process which has been entitled LieNA.

Email: info@lithium-au.com

Website: www.lithium-au.com

Gold industry Group to introduce new technology-based tour

/in /by

THE CONFERENCE CALLER: The gold industry, particularly the sections of it based in Kalgoorlie, has long been proud of the innovation that has formed the strong backbone of the advances made in the sector throughout the years.

And so it was we landed at the Innovation in Mining breakfast co-hosted by the Gold Industry Group (GIG) and Deloitte to ring in Day Two of the Diggers and Dealers conference.

While the 200 delegates lined up at the buffet we couldn’t help but wonder why the formidable ability to think on your feet and adapt change to situations that aren’t working wasn’t on show with the coffee barista struggling to keep up with demand and the food line halted as hungry, hungry hippos had to wait for the single two-slice toaster to complete its set task.

We realised we were in for a bit of a caffeine imbalance when punters began leaving the building to get a take-away coffee from the café down the road.

While all this was happening the morning’s speakers bravely continued.

GIG chairman Richard Hayes used his turn at the microphone to introduce the group’s latest technological advance, being a phone app using GPS technology to enable Perth’s population and tourists to venture out on a virtual gold treasure hunt starting at Elizabeth Quay and ending at the historic Perth Mint.

“The interactive trail will appeal to tourists, families and school students alike, and we aim to integrate the project into the Australian Curriculum,” Hayes said.

“This is an exciting and innovative project.

“The Heart of Gold Discovery Trail will lead visitors to points of historic significance and deliver real-time content via smartphone or tablet.”

The start of the trail will be marked by a sculpture of the Golden Eagle nugget, one of the largest nugget to be found in Western Australia, located at Betty’s Jetty while the GIG intends to introduce pop-up style interactive gold prospecting activities at different times throughout the year.

Hayes also used his time to address some the opportunities and challenges he considers the industry is most likely to face in the near future.

“There are opportunities for us to work together more closely to strengthen our industry, to promote our importance, to support our people, and to grow our communities,” he said.

“Together we can champion gold-related education and community initiatives – just like the gold community engagement project.

“Together we can raise awareness of gold as an investment and asset class.”

Hayes then turned his attention to the challenges the industry encounter.

“Gold miners face a challenging operating environment where deposits are deeper, costs are increasing, and margins tight, he declared.

“We need a strong flow of capital to build the future of Australia’s gold industry and to secure our future prosperity.”

At the end of his talk, all most people were interested in securing was their morning cup of coffee.

Cassini Resources signs $36M JV with OZ Minerals

/in /by

THE BOURSE WHISPERER: There was much hearty handshaking happening at the booth of Cassini Resources (ASX: CZI) on the first morning of the Diggers & Dealers conference in Kalgoorlie following the announcement the company has signed a Binding Heads of Agreement with OZ Minerals (ASX: OZL).

Under the agreement OZ Minerals can earn up to a 70 per cent interest in Cassini’s 100 per cent-owned West Musgrave project (WMP) by sole funding a minimum of $36 million on development and exploration, including completion of a Definitive Feasibility Study (DFS).

The agreement includes funding for continued studies on Nebo-Babel to progress it to a “Decision to Mine”, as well as a regional exploration spend of up to $8 million to assist in identifying additional value adding opportunities.

“As well as funding exploration and development of the WMP, the partnership provides access to the significant technical capabilities of OZ Minerals, a company with significant base metal project development expertise”, Cassini Resources managing director Richard Bevan said in the company’s announcement to the Australian Securities Exchange.

“We see this as a great deal for the company and our shareholders as it provides for a significant level of funding to progress the project which will give us a clear line of sight on a decision to mine and subsequently, potential cash flow for the company.

“It is a clear endorsement of the potential of the project.”

Commenting on the deal, OZ Minerals managing director Andrew Cole described the deal as strategic, adding that it is more about the company earning into a very sizeable proportion of a new mining province rather than just a single project.

“The West Musgrave project is Australia’s largest undeveloped copper nickel deposit,” Cole continued.

“With over 200 million tonnes of resource at 1.28 per cent copper equivalent that could be mined with a shallow open pit, Nebo Babel is pretty compelling just on its own.”

OZ Minerals’ initial commitment to the deal requires it to sole fund an initial minimum spend of $3 million within a maximum 12 month period to further progress scoping studies on the WMP as well as providing for the services of two full-time technical employees to work under the instruction of Cassini while this is met.

Cassini and OZ Minerals expect the first works under the agreement to commence during the fourth quarter of 2016, which is to include drilling, metallurgical testwork and engineering studies to support further study work.

Email: admin@cassiniresources.com.au

Website: www.cassiniresources.com.au

Big coin rolls in for big time at Diggers and Dealers

/in /by

THE CONFERENCE CALLER: Money, they say, burns a hole in your pocket, but should you have a pocket big enough for this coin you should be able to set the world on fire.

Tipping its hat in salute to the 25th anniversary of Diggers and Dealers, The Perth Mint brought along its biggest trinket in the shape of the world’s largest and most valuable coin ever made.

The Australian Kangaroo One Tonne Gold Coin was transported up to Kalgoorlie, under much security, for the inaugural day of the annual mining gabfest.

The coin is listed in the Guinness Book of World Records and is making its first appearance in the outback city, from which most of the gold of its making was originally sourced.
 
Tipping the scales at one tonne of 99.99% pure gold, measuring 80cm wide and 13cm deep, and valued in excess of $60million, the colossal coin was created as the pinnacle of the nation’s gold bullion coin program, and used to promote Australian gold internationally.

“With a passion for gold, and an advocate of the industry, The Perth Mint is proud to showcase the One Tonne Coin at Diggers and Dealers during its 25th anniversary year,” Perth Mint chief executive officer Richard Hayes said.

Hayes also assured The Roadhouse that the coin was in fact made of gold and not chocolate, which would be our preference.

Diggers and Dealers chief Nick Giorgetta was pretty pleased to greet the big coin to the conference.

“The Perth Mint has made an invaluable contribution to the Australian gold industry for more than a century, and it has shown its support of Diggers and Dealers since our inception 25 years ago,” he said.
 
“We are delighted to host such a sizable treasure at this year’s conference, as it demonstrates to the industry, and to the world, how remarkable achievements such as this can heighten the promotion of gold on the world stage.”