THE BOURSE WHISPERER: As they say in the classics; it’s better to have 50 per cent of a project than 100 per cent of no project.
Baotou considers Kimba Gap synergies with Bungalow
Centrex Metals (ASX: CXM) has received a letter from its partner for the Bungalow Magnetite Joint Venture, Baotou Iron & Steel (Group) Co. requesting the Prefeasibility Study currently in draft form for Bungalow be extended to analyse potential synergies with Centrex’s Kimba Gap magnetite project.
Centrex is currently undertaking resource drilling at Kimba Gap, located just 50km north of Bungalow, with completion expected in mid-2014 followed by a Mineral Resource Estimate.
Centrex will also complete conceptual development studies for the project based on the resource.
Baotou has asked that the Bungalow PFS be extended to incorporate results from the current Kimba Gap studies as it: “Considers that given the very similar nature of the magnetite projects at Bungalow and Kimba Gap, synergies will likely exist in utilising common supporting infrastructure for both projects.”
And that: “Sharing common supporting infrastructure would be a win-win scenario for both the Bungalow and Kimba Gap projects, and would spread the cost of these capital intensive items.”
Environmental Authority granted for Lorena gold project
Malachite Resources (ASX: MAR) announced the Queensland Department of Environment and Heritage Protection has granted the Lorena Joint Venture an Environmental Authority Permit (EA) in accordance with the Environmental Protection Act 1994 for the development of the Lorena gold project located east of Cloncurry in northwest Queensland.
The EA takes effect from 1 May 2014 and allows the JV to proceed with the development of the Lorena gold project subject to terms and conditions which are set out in the Permit.
The Lorena gold project is a 50/50 JV between Malachite and BCD Resources (ASX: BCD).
Joint Venture funding for West African iron project
Apollo Minerals (ASX: AON) has reached an agreement with Zoradox Ltd for the terms of a farm-in joint venture agreement for the Kango North iron ore and gold project in Gabon, central west Africa.
Under terms of the agreement, Zoradox may earn a 50.01 per cent equity interest in Apollo Gabon SA, which owns the project by sole funding:
a) US$750,000 of exploration and development activities during the remainder of 2014, and
b) a further US$3,250,000 before the end of 2017.
“We are pleased to have secured farm-in joint venture terms for the Kango North project,” Apollo Minerals chief executive officer Dominic Tisdell said.
“Apollo’s work to date suggests the Kango North project has the potential to be a member of the next round of successful mining projects in Africa.
“We welcome Zoradox to the project and look forward to working closely with them in further evaluating this exciting opportunity.”
Apollo and Zoradox are progressing exploration and planning of ground geophysics, sampling and mapping and a near term drilling program, which is designed to test a potentially significant DSO-grade iron ore prospect, P1, in the southeast of the project area.
Musgrave Project Collaboration
PepinNini Minerals (ASX: PNN) has announced a Research and Development (R&D) Collaboration with CSIRO for the company’s South Australian nickel–copper Musgrave project.
The collaboration will involve geophysical data collection and interpretation using the latest fixed wing high-moment electromagnetic system.
PepinNini said the electromagnetic surveying system will be similar to that developed by Anglo American for regional target generation, which is understood to be instrumental in the 2013 discovery of the Manchego nickel-copper system in West Musgrave currently held by Phosphate Australia Limited(ASX: POZ).
The collaboration will be managed by CSIRO and will involve expenditure by funding grant and company contribution in the order of $500,000.
“CSIRO will bring technical excellence to the Company’s R&D project aimed at deploying technical innovation to refine target mapping on the Musgrave project,” PepinNini Minerals Musgrave project geologist Todd Williams said.
Earn-in option for McArthur River project
Brumby Resources (ASX: BMY) has entered into an earn-in option arrangement with Teck Australia, a wholly-owned subsidiary of Canada’s Teck Resources to explore for zinc on Brumby’s McArthur River tenements (EL 25467 and L29021) in the Northern Territory.
Teck will take a placement of 25 million Brumby shares at a set price of two cents per share, providing Brumby with $500,000.
Teck may earn up to a 70% interest in the McArthur River project by spending a minimum of $3.5 million on exploration expenditure before 30 June 2018, with a minimum of $0.5 million of this total to be spent before 30 June 2015.
Upon formation of the joint venture, Brumby will be entitled to a 1.5 per cent net smelter royalty on production from the McArthur River project.
Brumby has acquired the remaining 20 per cent of Exploration Licence 25467 from Arnhem Resources in consideration for the issue of 5 million shares in Brumby.
The subscription by Teck for the 25 million shares in Brumby is conditional upon the registration of Brumby as the holder of the remaining 20 per cent interest in Exploration Licence 25467 by the Northern Territory Department of Mines which is expected to be completed in the coming weeks.