Fund Raising across the Boards

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THE FUND RAISER: Always good to see funds raised and then put to good use out in the field.

US$45M Facility for Tembang gold project

Sumatra Copper & Gold (ASX: SUM) announced its wholly-owned subsidiary, PT Dwinad Nusa Sejahtera, has signed a senior secured debt facility of up to US$45 million with Nomura Singapore Limited and Indonesia Eximbank.

The Facility is to fund the commercial development of the company’s Tembang gold project located in southern Sumatra, Indonesia.


$1.69 million for Big Springs project

Anova Metals (ASX: AWV) has received firm commitments for a capital raising of $1.69 million at 4 cents per share from sophisticated and professional investors.

The funds will be used primarily for drilling and permitting programs at the company’s 100 per cent-owned Big Springs project in Nevada, USA.

Drilling will commence immediately at South Sammy with planned drilling at North Sammy to be undertaken in mid-November.


Non-Renounceable Rights Issue

Antipa Minerals (ASX: AZY) announced a non-renounceable rights issue to raise up to approximately $650,000.

Net proceeds in conjunction with the company’s existing cash reserves will be used to advance the search for a joint venture partner, fund tenement costs and for general working capital.

New shares will be offered on the basis of two new shares for each three shares held.

The offer price of the new shares will be 0.5 cents per new share with one free attaching listed option exercisable at one cent with an 18 month exercise period.

The company’s directors have indicated that they will participate in the offer by accepting their entitlement for an aggregate amount of approximately $90,000.


Institutional Equity Placement

Kula Gold (KGD: ASX) has completed an equity placement to institutions and sophisticated investors of approximately 59.33 million fully paid ordinary shares at 6 cents each to raise approximately $3.56 million.

The funds raised by the placement, net of offer costs, will be approximately $3.3million.

These funds will be used for further exploration of the targets successfully delineated by recent helimag geophysics survey and structural interpretation, and for working capital.

“The successful share placement raising approximately $3.56 million and the expected discharge of the debt under the working capital facility is a great outcome,” Kula Gold CEO Stuart Pether said.

“The company will be re-positioned debt free and with available funds.

“This will allow us to apply funds to further test our new exploration model on Woodlark Island with a view to developing targets, ready for resource definition drilling and growing the resource inventory.”


$2 million to Sophisticated Investor

Aguia Resources (ASX: AGR) has secured a $2 million placement with Sulliden Mining Capital comprising of 40 million shares at an issue price of 5 cents per share.

“We are delighted to have been able to secure the next stage of the company’s funding,” Aguia Resources managing director Prakash Hariharan said.

“Sulliden is seeking to invest in high quality projects.

“Sulliden’s financial commitment to develop Aguia presents a great opportunity for the team to aggressively embark on an exploration program to unlock value.”


Capital Raising

Nemex Resources (ASX: NXR) has entered into an agreement with Cicero Advisory Services to raise $360,000 through a private placement.

Nemex proposes to issue 12 million shares at an issue price of 3 cents per share, together with 6 million attaching options (exercisable at 5 cents on or before 31 December 2015).

The monies will provide funding for the company’s ongoing working capital requirements.

The capital raising is scheduled to close on or around 24 October 2014.

What the Analysts Say

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WHAT THE ANALYSTS SAY: Interesting news and views from across the Resource Analyst universe.

Website: www.beerandco.com.au

Company: Syndicated Metals (ASX: SMD)

Syndicated Metals has over 5.9 million tonnes of Resources containing 83,000 tonnes of copper, 27,000 ounces of gold and over 400,000 ounces of silver in its 2,469 square kilometre tenement package northwest of Cloncurry in Queensland.

SMD has executed a Joint Venture agreement with CopperChem to supply ore to its recently closed mill at the Great Australian mine near Cloncurry.

SMD is currently undertaking a feasibility study, funded by CopperChem.

Beer & Co estimate that it will cost less than $20 million in capital (ie. $10 million for SMD, and assume 50% debt funded) for SMD to be in production by 2015 Q2.

Barbara depth confirming under‐ground potential

In September, SMD announced drilling had intersected broad zones of mineralisation below the Barbara South open pit, with 40m at 1.75 per cent copper from 186m down‐hole, including 9m at 4.01 per cent copper; and 32.5m at 1.9 per cent copper from 225m down‐hole, including 14m at 2.73 per cent copper.

Further high-grade zones are now emerging below the mid lode and the south lode, with 6m at 2.23 per cent copper from 290.5m down‐hole and 0.9m at 2.14 per cent copper from 288m.

Lillymay Resource drilling

In September, SMD announced recent infill RC drilling confirmed extension of the mineralised zone, with 2m at 1.8 per cent copper from 91m down‐hole; and 3m at 1.69 per cent copper from 98m down‐hole.

SMD are targeting a maiden JORC Resource before the end of 2014.

SMD have an exploration target of 400,000 tonnes to 800,000 tonnes 2 per cent to 3 per cent copper for Lillymay.

Website: www.breakawayresearch.com

Company:  Alligator Energy (ASX: AGE)

Alligator Energy continues to concentrate its activities on the world class Alligator River Uranium Province, the location of Australia’s highest grade uranium deposits and mines, making it prime real estate for uranium exploration, with the area being underexplored, particularly areas under sandstone cover.

Alligator is managed by an experienced and committed team, and since listing in early 2011 has been focussed and has had significant exploration success to date in what can sometimes be a technically challenging exploration environment, whilst successfully weathering a very challenging investment climate for junior resources, and the uranium sector in particular.

The company has developed its exploration techniques to suit the geology.

Now backed by their cornerstone investor, the Macallum Group, Alligator is currently drill testing a number of high-priority prospects generated over the last few years.

Alligator Energy is an Australian mineral exploration company whose sole focus is exploring for high-grade unconformity related uranium mineralisation in the world class Alligator River Uranium Province of the Northern Territory, which hosts the high grade Ranger, Nabarlek and Jabiluka deposits.

Subsequent to listing on the ASX on February 1, 2011 after raising $15 million in a fully subscribed IPO, the company has defined a maiden JORC-compliant resource at the Caramal prospect, whilst defining a number of high priority prospects.

Work to date over the company’s projects has included over 20,000m of RC and diamond drilling.

Since listing in early 2011 Alligator has concentrated activities solely on the Alligator River Uranium Province, despite the investment climate being less than ideal for uranium explorers – Alligator is one of the few ASX-listed junior explorers now solely exploring for uranium in Australia.

Parts of the company’s holdings were acquired through a competitive tender from Cameco Australia Pty Ltd, a subsidiary of the major Canadian uranium miner Cameco.

The company’s activities are focussed on prospects that they believe have the potential for a minimum contained 100 million pounds of uranium.

Disclaimer: The above is intended as a guide only. The Roadhouse accepts no responsibility for investments made from this advice, successful or otherwise.

The views, opinions or recommendations of this article do not in any way reflect the views, opinions, recommendations, of The Resources Roadhouse.

The Roadhouse makes no representation or warranty with respect to the accuracy, completeness or currency of the content. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian financial services licensee before making investment decisions.

Friday Flashback

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THE WEEKLY WRAP: The All Ordinaries finished on a reasonable note last week by closing in positive territory for the fourth day on the trot, running against the trend of overseas markets, which saw the US market suffer its sixth consecutive down day.

Virgin Australia (ASX: VAH) did its best to pull focus from the Orbis Gold (ASX: OBS) – SEMAFO cage match to announce it had struck a deal which will result in the carrier acquire the remaining 40 per cent of shares it doesn’t own in discount airline Tiger Australia for a price of $1.

There’s possibly a good number of holiday makers out there who, having either had flights cancelled or been separated from their luggage over the years by the fly-by-night feline, may consider the deal to be overpriced.

SEMAFO had a battle victory in its war with Orbis with the latter deferring a shareholder vote on plans to hand a 17 per cent stake to London investor Greenstone Resources.

The local market enjoyed a bright start to the week with bargain hunters insisting the best value remains in buying the major stocks of BHP Billiton (ASX: BHP), which took a 44 cent jump and Rio Tinto (ASX: RIO) up 36 cents.

The shopping spree even extended to potential take-over target Fortescue Metals Group (ASX: FMG), which just managed to bother the scorers for the day with a two cent rise.

On Tuesday St George Mining (ASX: SGQ) announced it had extended a VMS system on the company’s East Laverton property in Western Australia to record a rise of 0.05 cents.

Meanwhile, the country stood still and lowered its collective flag to half-mast in recognition of the passing of former Prime Minister Gough Whitlam.

Readers of The West Australian woke up on Wednesday to a suggestion Doray Minerals’ (ASX: DRM) request for a trading halt could have something to do with a Vulcanesque mind-meld with Mutiny Gold (ASX: MYG).

Not a bad result all-up for Hump Day with the market posting its seventh positive in a row and the gold price soaring to a six week high.

The Doray/Mutiny Mystery deepened on Thursday when Mutiny Gold requested, “ASX grants the company a suspension of its securities from trading effective immediately pending an announcement regarding a potential corporate combination.”

The local bourse followed overseas trends to record a sluggish start to the day.

However, just to ensure the week finished with more mystery than an episode of Scooby Doo those pesky kids at Krucible Metals (ASX: KRB) requested a trading halt, “pending the release to the market of a discovery announcement…relating to recent exploration and current drilling on its Tobermorey EL28170 tenement in the Northern Territory”.

Whoever said there’s nothing happening in the junior sector is obviously not paying any attention at all.

 

Ironbark anticipates big zinc payday

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THE INSIDE STORY: Ironbark Zinc (ASX: IBG) is focused on the zinc component of the company’s wholly-owned Citronen base metal deposit located in Greenland.

The Citronen project currently hosts in excess of 13 billion pounds of zinc and lead with a JORC-compliant resource of 55.8 million tonnes at 6.1 per cent zinc and lead, including an Indicated resource of 29.9 million tonnes at 5.8 per cent zinc and 0.6 per cent lead, and an Inferred resource of 25.9 million tonnes at 5 per cent zinc and 0.7 per cent lead.

This includes a higher grade resource of 22.6 million tonnes at 8.2 per cent zinc and lead with an Indicated resource of 14.3 million tonnes at 7.8 per cent zinc and 0.7 per cent lead and an Inferred resource of 8.2 million tonnes at 7.1 per cent zinc and 0.7 per cent lead.

 

The company recently lodged a formal application for an Exploitation Licence (Mining Licence) for Citronen with the Greenland Government authorities.

“Being able to lodge the Mining Licence application is a defining step forward, not just for the Citronen project but for Ironbark as a company,” Ironbark Zinc managing director Jonathan Downes told The Resources Roadhouse.

“Defining because it is an important step that enables us to progress the project that much closer to towards developing a globally significant zinc mining operation, which will ultimately rank as the fifth largest in the world.

“The thing that defines the Citronen project, as far as being ASX-listed junior exploration play goes, is that zinc has, in recent times, been a neglected commodity.

“There is no other ASX-listed company that has dedicatedly focused on a zinc project right through such a long period of negativity and taken it as far as we have.

“We have followed it through. We purchased a world-class asset and have spent over $50 million taking it through a BFS to now having just lodged our Mining Licence permit.”

It is true that zinc has not been high on the commodity hit-list as investors and developers have concentrated their collective attention on the traditional market favourites of gold and iron ore.

So much so, one could say this has resulted in zinc being under-invested for far too long, however, this looks likely to change with a serious shortage about to hit the market.

Zinc is probably the one commodity that is the most resource-constrained and there is very limited, potential new supply to come on to fill the gap.

The key to this supply issue is the depletion and upcoming closure of great producing zinc mines, such as the 500 tonnes per annum Century mine of MMG and the 215,000tpa Lisheen mine of Vedanta Resources, which are both scheduled to close in early 2015.

Zinc prices are on the rise. While this is not any great phenomenon it is to be expected according to mining engineering economists AME Group, which suggests zinc price forecasts are being driven by impending mine closures.

These closures of Lisheen and Century are not inconsequential with the zinc market experiencing a 200,000 tonnes deficit from the first half of 2014, and MMG facing delays with its proposed 215,000tpa Dugald River operation in Queensland.

All this conspires to indicate the zinc market faces a deficit of over 4300,000 tonnes in the full year 2014.

In June the LME zinc spot settlement price rose by a healthy 7.7 per cent taking it to US$2,214 per tonne.

AME Group said zinc prices reached three-year record highs during June this year as LME stocks tumbled to four year lows.

“In June, LME warehouse stocks continued their falling trend from December 2012 and fell another 43,000 tonnes, or 6.5 per cent, to 668,000 tonnes, a level not seen since November 2010,” AME Group said.

Another contributing factor to the rise in zinc’s fortunes has been a slow rise in production of refined zinc, only four per cent during May to 461,000 tonnes, in China.

AME explained Chinese production of zinc is broadly cyclical, which has its analysts expecting refined zinc production to fall further.

“In May, Chinese imports of finished zinc were down month on month by 24 per cent to 49,000 tonnes; however, year-to-date quantities are still 27 per cent higher year on year compared to 2013,” AME said.

“Chinese imports of zinc concentrates, whilst down 21 per cent year on year in April, are still showing a 21 per cent increase for the first third of the year compared to 2013.

“The influx of imported concentrates into China have seen treatment charges (TCs) climb to US$140-155 per tonne, up from US$135-145 per tonne.

“This has been the second consecutive month of increases with rises in April attributed to ample local supply.”

No matter which way you approach it, the result will be a serious lack from the supply side of the global zinc equation.

The situation is underlined by the fact there have been very few companies with the vision to explore new deposits or develop new mines for a very long time.

“The serious supply issues are going to bite and they’re going to bite hard. There will be a classic zinc run, like the one we saw back in 2007, where zinc ran all the way up to hit US$2.20 per pound,” Downes said.

“At the moment the long-term tenure average for zinc is around US$1.30 per pound, and at present the price is sitting around US$1.02 per pound.

“Even if it gets back to long-term average we are looking at developing a very healthy mine, which means that should we see a real tightness in the market, which many analysts are forecasting, we anticipate seeing an extraordinary zinc run.

“We are on the starting blocks. We have done everything – the granting of the Mining Licence Application was the final piece of the puzzle – so when the zinc run comes we will be ready for it.”

 

A recent capital raising of $2.5 million ensures the company can continue to progress permitting and pre-development preparation works at Citronen.

The placement was strongly supported by Ironbark’s loyal shareholder base to the point where it was more than four times oversubscribed.

“Our shareholder base, which includes strategic partners China Nonferrous, Nyrstar and Glencore, has a strong attachment to and understanding of the global zinc industry,” Downes said.

As part of the Mining Licence application, Ironbark will undertake a full Feasibility Study covering the Process Plant, Infrastructure Works, Mine Development-Underground and Open Pit, Tailings Disposal, Power Generation, Accommodation and Emergency Services, Ship-Loading and Shipping and Execution Planning.

“We look forward to making significant progress on permitting and development as we progress the project to the next stage,” Downes continued.

“This is a fantastic project, in a supportive mining jurisdiction that will be producing a much sought-after commodity.

“How can we not be excited by what the future may hold?”

Ironbark Zinc Limited (ASX: IBG)
…The Short Story

HEAD OFFICE
Level 1
350 Hay Street
Subiaco WA  6008

Ph: +61 8 6461 6350
Fax: +61 8 6210 1872

Email: info@ironbark.gl
Web: www.ironbark.gl

DIRECTORS and MANAGEMENT
Jonathon Downes, Adrian Byass, Gregory Campbell, Chris James, Peter Duncombe Bennetto, John McConnell, David Kelly, Gary Comb

MAJOR SHAREHOLDERS
Nyrstar NV             23.62%
Glencore Xstrata         10.66%
L1 Capital             8.16%
Board and Mgt         5.9%

PharmAust human drug trial advancing to second patient

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THE ROADHOUSE PHARMACY: PharmAust Limited (ASX: PAA) is moving towards the treatment of the second patient in its ‘First in Man’ trial with the company’s anti-cancer drug PPL-1.

Following the approval of the study by the Royal Adelaide Hospital Research Ethics Committee in April, PharmAust commenced recruitment and treatment of the first patient with PPL-1.

Unfortunately, the first patient passed away due to reasons unrelated to the study drug.

This resulted in a standard process of investigations causing delays in the treatment of the second patient.

The company indicated an ethics application is to be resubmitted to the Royal Adelaide Hospital Ethic Committee to seek approval for advancing the clinical trial.

According to PharmAust, PPL-1 is an approved drug launched in recent years by one of the leading global animal health corporations for the treatment of parasitic diseases in animals.

PharmAust, through its wholly owned subsidiary, Pitney Pharmaceuticals, owns patents on the use of PPL-1 in cancer and malignant disease.

Through New South Innovations (NSi), PharmAust has received royalty-free assignments of the intellectual property relating to the use of PPL-1 in cancer from the University of New South Wales.

The company claims research it and the St George Hospital has carried out into the mechanism of action of PPL-1 indicates important cancer inhibitory pathways are involved in the action of the molecule.

“It is sad and unfortunate that the first patient passed away in days after beginning treatment with PPL-1,” PharmAust’s executive chairman Dr Roger Aston said in the company’s announcement to the Australian Securties Exchange.

“It should be noted that an inclusion criterion of the trial is that patients will have failed all other ‘Standards of Care’ – as such, some of the patients entering the trial may have significant progressive disease.

“The drug will be potentially administered to patients suffering from diverse cancers.

“Recruitment will include selection of patients suffering from lung, pancreas, oesophageal, gastric, colorectal, ovarian, breast, prostate, liver, sarcoma, lymphoma, and melanoma.”

Website: www.pharmaust.com

Admedus announces Canadian CardioCel launch

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THE ROADHOUSE PHARMACY: Admedus Limited (ASX: AHZ) has been granted a Medical Device Licence in Canada by Health Canada for the company’s CardioCel®.

CardioCel is the Admedus Group’s lead regenerative tissue bio-implant and is used in repairing heart defects, including the repair of heart valves.

Canada becomes the latest market approval for CardioCel, with the product already having received CE Mark in Europe and 510k clearance in the United States.

The product’s use in Australia continues under the early access Authorised
Prescriber Scheme (APS).

Admedus said CardioCel is being used by heart surgeons to treat patients at centres across Australia, Europe and the US.

“The Canadian approval is another important step in the global launch of CardioCel and will add revenue growth for the Admedus Group,” Admedus chief executive officer Lee Rodne said in the company’s announcement to the Australian Securities Exchange.

The company explained the launch of CardioCel in Canada is part of a continuing global strategy to gain product regulatory approval in major markets and directly secure key centres and surgeons as customers.

CardioCel is now available for immediate sale and use by heart surgeons throughout Canada.

Email: info.au@admedus.com

Website: www.admedus.com

FAR raises $46.7 million

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THE ROADHOUSE BOWSER: FAR Ltd (ASX: FAR) has completed a placement to institutional and sophisticated investors to raise $46.7 million.

The raising comes via the issue of approximately 425 million shares at 11 cents each.

The capital raising follows the company’s oil discovery in FAN-1, offshore Senegal with its partners Cairn Energy plc, ConocoPhillips and Petrosen.

 

Location of the two Senegalese wells in the FAR 3D seismic area, offshore Senega. Source: Company announcement

 

The semi-submersible drilling unit ‘Cajun Express’ used to drill the FAN-1 well has now mobilised to complete the second exploration well in the Senegalese drilling program, SNE-1.

“We won very strong support for this capital raising,” FAR managing director Cath Norman said in the company’s announcement to the Australian Securities Exchange.

“Given the state of the market we are very pleased to have been oversubscribed with particularly strong support from Australian institutions and our existing shareholders.

“The discovery of oil in FAN-1 and an extended period of unscheduled maintenance have resulted in an increase to the forecast cost of the Senegal drilling program that exceeds our funding cap for both wells.

“The additional funds raised will now allow us to complete this very exciting drilling program.

“The discovery of oil in FAN-1 has gone some way to increasing the chance of success in the SNE-1 well so we eagerly await the results from this next well and hope to repeat the success of FAN-1.

“FAR also looks forward to advancing our other exploration ventures in Kenya, Guinea Bissau and Australia and embarking on new ventures.”

This capital raising leaves FAR with approximately $85 million of cash and in a very strong position from which to complete our near term corporate objectives.”

Email: info@far.com.au

Website: www.far.com.au

Pryme reaches total depth of first Capitola well

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THE ROADHOUSE BOWSER: Pryme Energy (ASX: PYM) announced the first well to be drilled in the company’s Capitola oil project, the Mahaffey Bishop PU 1 in the Sweetwater, acreage block in Texas, has reached its total depth of 6,090 feet (1,856 metres).

The company said mud log data collected while drilling, and electric logs run post drilling, indicate its primary objective, the A Sand within the Canyon Sand formation, contains 34 feet net (10m) of oil and gas saturated sandstone.

The well also encountered a number of hydrocarbon shows in the Cline Shale as well as in other intervals within the wellbore.

Production casing has been set and cemented in the wellbore in preparation for completion.

Pryme indicated the drill rig is now demobilizing and will move to the second Capitola oil project well, the Hope Boles PU1 in the southern region of the Sweetwater acreage block, where drilling is expected to commence soon.

 

Drilling of the Mahaffey Bishop PU1 well within the Capitola oil project. Source: Company announcement

 

Drilling of the third Capitola oil project well, the McCain 189-F1 in the Canyonville acreage block, is also scheduled to commence.

“Well completion will begin in November following drilling and casing of the three wells in the initial program,” Pryme Enrgy COO and executive director Ryan Messer said in the company’s announcement to the Australian Securities Exchange.

“In the meantime we will incorporate the well data into the design of the completion and fracking program.

“We are encouraged by the data acquired and are optimistic about the well’s contribution to the project.

“Completion will be followed by flow testing to determine the well’s production capability.”

Website: www.prymeenergy.com

Phoenix pours first gold at Kintore West

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THE BOURSE WHISPERER: Phoenix Gold (ASX: PXG) has completed the first gold pour from the Kintore West open cut, part of the company’s Castle Hill Stage 2 project area on the Kunanalling shear zone in the heart of the Western Australian Goldfields.

 

Phoenix team with first gold bar from the Kintore West mine. Source: Company announcement

 

“It is a credit to the Phoenix team and our contract partners to have commenced mining, haulage and ore treatment from Kintore on schedule and budget,” Phoenix Gold managing director Jon Price said in the company’s announcement to the Australian Securities Exchange.

“Ore treatment at the Greenfields Mill is performing very well with higher than expected throughput rates and excellent gravity and overall gold recoveries.

“In line with our staged development plan, Kintore, which is part of Castle Hill Stage 2, is the first in a series of open cut developments that will contribute cash to the business.

“We continue to progress the joint venture with Norton Gold Fields for the development of Castle Hill Stage 1 and are on track to complete the updated heap leach feasibility study for treatment of lower grade ore mined this quarter.”

Email: info@phoenixgold.com.au

Website: www.phoenixgold.com.au

What the Analysts Say

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WHAT THE ANALYSTS SAY: Interesting news and views from across the Resource Analyst universe.

Website: www.fostock.com.au

Company: Red River Resources Ltd (RVR: ASX)

We visited RVR’s Southern Region project 200 kilometres south west from Townsville.

First we observed the Port of Townsville, which is Australia’s largest exporter of copper and zinc, and includes berths operated by BHP and Glencore.

We also saw Sun Metals’ zinc refinery. We would expect RVR to eventually transport concentrate to the refinery and/or the port once it restarts production.

The road from Townsville to Thalanga is 200km by the sealed Flinders Highway.

Along the way we stopped at Charters Towers which, together with Townsville, will be the major sources of the Southern Region project’s workforce.

The Thalanga mill was intact and its pumps operating while we were there, being under active care and maintenance.

Main equipment includes primary crusher, banks of flotation cells to produce separate copper, zinc, and lead concentrates, filtration, and thickeners.

The site also has offices, core shed full of samples, and workshop.

Only 2km from the mill is the West 45 portal. This has a decline of 600m length and 85m depth.

We envisage RVR will aim to restart production most likely from West 45 given it has a mining license, resource, decline in place, and is nearby the mill.

The company aims to recommence production end CY2015 which is reasonable timeframe.

The decline will need to be dewatered and power and ventilation reinstalled.

The prospectivity of the region is promising. We visited the project’s Liontown deposit which has JORC (2004) Resource and also the nearby Highway Reward deposit (owned by a third party).

RVR will undertake an exploration program to ultimately determine what will come into production after West 45.

It will involve assembling an exploration team, assessment of historical databases; undertaking IP over all the tenements; prioritising anomalous drill targets; undergoing a drill campaign.

Although RVR as yet not released any capex or cost figures, we estimate RVR will require ca. $15 million for to restart production and ca. $10 million for exploration.

The zinc deficit continues to widen, with the latest ILZSG figures showing it being 248,000 tonnes for the seven months to July 2014, up from 100,000 tonnes in May.

The site visit confirms the key advantages we believe RVR possess. These include:

Excellent infrastructure support including roads, port, refinery, and grid power;

Access to residential workforce (Townsville, Charters Towers);

Existing mill that is intact;

Advanced developed orebody nearby to mill; and

High-grade JORC (2004) resources and access to historical exploration data.

Website: www.breakawayresearch.com

Company: Rumble Resources Limited (ASX: RTR)

Rumble Resources has highly prospective tenements in the emerging Fraser Range Nickel Province.

Work to date has identified a number of high quality ground EM and magnetic geophysical targets, with similarities to the Nova “Eye” feature, associated with Sirius Resources Nova-Bollinger nickel-copper massive sulphide discovery.

This is located just 25 kilometres to the west of Rumble’s Zanthus project.

Work at the Big Red project has delineated a potential ‘feeder’ style massive sulphide target, with the exploration model being the high grade Ovoid deposit at Voiseys Bay in Canada.

The company now planes to drill test both Zanthus and Big Red.

In addition the company has two other highly prospective projects – the base metal Beadell project in WA, and the precious metal Derosa project in the Birimian Greenstone Belt of Burkina Faso, a world-class gold terrane.

Both of these projects have the potential to host company maker mineralisation in their own right.

Rumble Resources is an Australian junior mineral exploration company whose main focus is nickel-copper exploration in the Fraser Range Nickel Province.

The company has a package of eleven tenements and applications of 3260 square kilometres, with ten of the tenements 100 per cent held by Rumble.

Work to date has been largely restricted to geophysical surveying, which has delineated a number of targets that now require drill testing.

Rumble is concentrating its activities on the emerging Fraser Range Nickel Province.

This tightly held area has experienced significant excitement and activity since Sirius’ Nova discovery in mid-2012, and has the potential to be established as a world class nickel province.

Nova-Bollinger is the first deposit of a particular type found in Australia, and from the Canadian experience (Voiseys Bay, Thompson, Raglan) these magmatic nickel-copper-PGE deposits occur in camps with belts containing multiple deposits.

Work by the company to date, and analysis of public data has defined a number of prospective targets, which the company now plans to drill.

A number of the targets at Zanthus show geological and geophysical similarities to those associated with Sirius’ Nova deposit, with similar EM and magnetic signatures.

Disclaimer: The above is intended as a guide only. The Roadhouse accepts no responsibility for investments made from this advice, successful or otherwise.

The views, opinions or recommendations of this article do not in any way reflect the views, opinions, recommendations, of The Resources Roadhouse.

The Roadhouse makes no representation or warranty with respect to the accuracy, completeness or currency of the content. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian financial services licensee before making investment decisions.