Meteoric Resources Encounters Visible Gold in First Novo Astro Hole

THE DRILL SERGEANT: Meteoric Resources (ASX: MEI) was champing at the bit to inform the market of recent developments from recently commenced drilling at the company’s 100 per cent-owned Novo Astro gold project in Brazil.

Red 5 Inks Option Agreement to Purchase Great Western Gold Deposit

THE BOURSE WHISPERER: Red 5 Limited (ASX: RED), by way of the company’s wholly-owned subsidiary, Darlot Mining Company, has entered into an Option Agreement for the right to purchase a 100 per cent interest in Mining Lease M37/54, containing the Great Western gold deposit in Western Australia.

Renascor Resources Releases Siviour DFS Results

THE BOURSE WHISPERER: Renascor Resources (ASX: RNU) delivered results of a Definitive Feasibility Study (DFS) for the company’s 100 per cent-owned Siviour graphite project near the coast of South Australia’s Eyre Peninsula.

Indiana Resources Kicks Off Mali Soil Sampling Program

THE DRILL SERGEANT: Indiana Resources (ASX: IDA) announced the commencement of a comprehensive soil geochemistry program at the company’s Saboussire gold prospect in Western Mali.

Southern Gold Receives Gubong Project ‘Permit to Develop’

THE BOURSE WHISPERER: Southern Gold (ASX: SAU) has been received word from its Joint Venture partner, London-listed Bluebird Merchant Ventures, of confirmation that the Permit to Develop for the Gubong gold mine in South Korea.


Renascor Resources Releases Siviour DFS Results

THE BOURSE WHISPERER: Renascor Resources (ASX: RNU) delivered results of a Definitive Feasibility Study (DFS) for the company’s 100 per cent-owned Siviour graphite project near the coast of South Australia’s Eyre Peninsula.

Renascor Resources declared the DFS confirms Siviour’s potential as a low-cost, long-life graphite project that can achieve consistently attractive profit margins even in the current lower graphite price environment.

The study determined Siviour to be a world-class, low-OPEX project with a projected life of mine (LOM) operating cost of $508 or US$355 per tonne (A$471 or US$330 per tonne over first ten years), placing it amongst the lowest projected operating costs globally.

The project will be developed in stages to reduce up-front capital cost with the DFS based on a staged development, with average production of 80,000 tonnes per annum during first stage (years one to four), before expansion in year five to be funded through expected project cashflows.

Average projected production in years five to ten is 144,000 tonnes per annum with the DFS adjusted for current graphite market conditions with pricing from Benchmark Mineral Intelligence. This resulted in a decrease from previous basket price through 2025 of 22 per cent to $1,149 or US$804.

The results confirm compelling project economics, including:

Post-tax NPV10 of $388 million or US$271m;
Post-tax IRR of 33 per cent;
Start-up capital requirement of $114 million or US$79 million plus a mining pre-strip of $4 million or US$3 million; and
Average EBITDA of $83 million or US$58 million, EBITDA margin of 57 per cent.

The Study expects up to 60 per cent of the start-up capital requirement to qualify for in-principle support from Atradius, the Dutch export credit agency (ECA), subject to finalising the procurement strategy in the front-end engineering design (FEED) phase.

Renascor identified its next immediate steps are expected to include securing binding offtake agreements, final project permitting and commencing financial due diligence.

“The DFS confirms Siviour’s status as a low-cost, tier one graphite project that can achieve consistently attractive profit margins even in the current lower graphite price environment,” Renascor Resources managing director David Christensen said in the company’s announcement to the Australian Securities Exchange.

“We believe this cost advantage, coupled with our location in the low sovereign risk jurisdiction of South Australia, will enable Siviour to become a premier provider of graphite for the growing lithium-ion battery market, as this sector becomes the dominant end-user of natural flake graphite.

“With the DFS now complete, we look forward to advancing towards securing binding offtake agreements and working with our finance partners to secure funding for Siviour’s stage-one development.”





Renascor Resources produces Positive Process Design Test Results

THE BOURSE WHISPERER: Renascor Resources (ASX: RNU) announced results of recent process design tests undertaken at the company’s 100 per cent-owned Siviour graphite project in South Australia.

Renascor Resources said the test were carried out on Siviour graphite concentrates using the caustic roasting purification process, producing results the company declared has provided support for the proposed spherical graphite operation, as described in Renascor’s Siviour Spherical Graphite Pre-Feasibility Study that was released in February.

Renascor explained that Spherical Graphite must generally be purified to at least 99.95 per cent total carbon (TC) to be used in lithium-ion battery anodes.

Renascor’s previous Spherical Graphite purification programs included tests involving both caustic roasting, as well as hydrofluoric acid purification.

In both cases, Renascor produced +99.95 per cent TC, battery-grade anode material from Siviour graphite concentrates.

For the Spherical PFS, Renascor adopted a caustic roasting technique that combined Siviour graphite concentrates with a caustic solution and roasted them at low temperature before being leached with hydrochloric acid.

The tests produced +99.95 per cent TC, battery-grade anode material, with an average grade of 99.965 per cent TC.

The company considers the results of additional caustic roast test programs important for its strategy to produce purified Spherical Graphite by confirming that Siviour graphite concentrates are amenable to caustic roast purification to achieve +99.95 per cent TC, battery-grade graphite.

The recent tests also validated process design parameters adopted in the Spherical PFS and suggest potential operational costs savings through reduced roasting time and reagent consumption.

The recent test work also demonstrates that these results can be achieved through the more environmentally friendly caustic roasting process.

“The Spherical PFS demonstrated strong potential for Renascor to produce competitively-priced, purified spherical graphite for the growing market for lithium-ion battery anodes,” Renascor Resources managing director David Christensen said in the company’s announcement to the Australian Securities Exchange.

“The results today offer further confirmation that Siviour can achieve these competitive margins through the use of a more environmentally friendly caustic roasting purification process, which avoids the use of hydrofluoric acid.

“With nearly all natural flake spherical graphite used in lithium-ion batteries currently sourced from Chinese production facilities using hydrofluoric acid, these results demonstrate Siviour’s potential to offer strategic diversification of supply in a manner that is both cost-competitive and environmentally sensible.”





Companies of Interest Presenting at Gold Coast Investment Showcase

THE CONFERENCE CALLER: The 2019 Gold Coast Investment Showcase is just two weeks away and The Resources Roadhouse continues its look at companies that will be in attendance.


Pioneer Resources (ASX: PIO) informed the market of TSX-listed Novo Resources Corp.’s intention to enter into a US$30 million farm-in and Joint Venture agreement with Sumitomo Corporation of Tokyo, Japan, and its wholly-owned Australian subsidiary.

The aim of the JV is to advance Novo’s Egina project located approximately 80 kilometres south-southwest of Port Hedland in Western Australia.

The Egina project includes Pioneer Resource’s Kangan gold project, where Novo is currently earning an interest under a binding memorandum of agreement that has now been replaced with a new agreement on essentially the same terms that allows Sumitomo to become a party to it.

Pioneer retains a 30 per cent free-carried interest in the Kangan project up to a decision to mine, after which it becomes a contributing JV partner.

Pioneer explained that Sumitomo, via an Australian subsidiary, has agreed to join Novo in spending $460,000 within the next 18 months to earn a joint 70 per cent interest in the Kangan gold project.

Upon Novo and Sumitomo earning their combined 70 per cent interest, Pioneer is free carried up to a decision to mine and thereafter contributes in proportion to its JV interest.

The Kangan gold project, currently held 100 per cent by Pioneer, forms a key part of Novo’s Pilbara exploration portfolio and sits within that company’s Egina project, which lies in the heart of the Pilbara conglomerate gold province.

“The addition of Sumitomo to the Kangan farmin/JV adds significant financial and technical power to support Novo’s efforts at the Kangan JV project, and we look forward to receiving results as exploration programs at Egina and Kangan advance,” Pioneer Resources managing director David Crook said.

The gold deal comes as Pioneer maintains its caesium-focus with drilling underway at the company’s Sinclair lithium-caesium-tantalum (LCT) Pegmatite at its 100 per cent-held Pioneer Dome project near Norseman in Western Australia.

The drilling coincides with the company’s plans for a third shipment of pollucite scheduled for the third week of June 2019.

The RC drilling, comprising 2,000m, has been designed to discover extensions to the core zone of the Sinclair Pegmatite, which contains the complex array of alkali metal minerals including pollucite, potash feldspar, petalite, lepidolite and cleavelandite.

Drilling will test a zone approximately 150m long both to the north and south of the pit.

A further 500m of diamond core drilling will commence as the RC drilling phase nears completion, targeting pollucite mineralisation extensions and caesium anomalies that occur to the north of the Sinclair Pit.


Matsa Resources (ASX: MAT) recently announced the execution of an Ore Purchase Agreement with AngloGold Ashanti Australia (AGAA) for the purchase of ore from the company’s Red October mine.

Matsa Resources informed the market that ore from Red October is to be treated at the AGAA-owned Sunrise Dam gold mine, for up to five years.

The 3.8 million tonne per annum mill at the Sunrise Dam gold mine is located approximately 60 kiloetres from the Red October gold mine and provides Matsa with access to a nearby milling solution for its Stage 1 production ore and for a further 4.5 years thereafter.

Matsa has previously delivered ore from its Fortitude and Red Dog gold mines to Sunrise Dam and is confident in the outcomes of the ore processed there.

Matsa will be responsible for mining and transporting the ore to Sunrise Dam with AGAA taking possession of ore once delivered.

The company said the agreement will allow Matsa to continue to progress mining at the Red October gold mine at a relatively low capital cost.

“The execution of the Agreement with AngloGold Ashanti continues our strong relationship and builds on the MoU both parties entered into in mid-2018,” Matsa Resources executive chairman Paul Poli said.

“Previous mining campaigns at Fortitude and Red Dog have been successfully processed at Sunrise Dam with minimal fuss and we expect this to be no different.

“The fact that AngloGold are prepared to potentially accept all ore from Red October for up to five years is testament to this as Matsa looks to develop a longer term mine plan in the future.”


Graphite-focused Renascor Resources (ASX: RNU) has been bust at the company’s 100 per cent-owned Siviour graphite project, located in South Australia’s Eyre Peninsula.

Renascor Resources received a Letter of Interest (LoI) for export credit agency (ECA) cover from Atradius Dutch State Business, the Government of the Netherlands’ official ECA

The LoI came after a preliminary assessment of the Siviour graphite project by Atradius on behalf of the Dutch State, confirming in principle project finance support under the Dutch export credit guarantee scheme.

Atradius is the official ECA that administers the ECA scheme for the Government of the Netherlands.

In order to promote Dutch exports, Atradius offers insurance and guarantee products for projects involving the export of capital goods from the Netherlands.

ECA Cover from Atradius is often used to assist Dutch exporters in winning export transactions and increasing the capacity to raise finance from banks for projects involving Dutch exports.

The Dutch ECA scheme was identified as applicable to Renascor’s Siviour project based on the sourcing of Dutch content through Renascor’s Dutch strategic engineering partner, Royal IHC.

Renascor has estimated that up to approximately 60 per cent of project capital expenditure is expected to qualify under the Atradius ECA Cover.

Renascore also had a Mineral Lease for the Siviour graphite project granted by the South Australian Minister for Energy and Mining.

The grant came on the back of three-years of preparation and review of all potential environmental, social, economic and technical aspects of the project.

A positive Pre-Feasibility Study confirmed the opportunity to unlock further value from Siviour through Australia’s first integrated graphite concentrate and spherical graphite operation.

Renascor believes the project economics of the Spherical PFS highlight Siviour’s potential to achieve high economic returns through the vertically integrated development of a mine and flake graphite concentrate operation, plus downstream production of spherical graphite.

The company also upgraded the JORC Mineral Resource estimate for the Siviour project after completion of an infill drill program, which was conducted to improve the confidence in the Siviour Indicated Resource

This resulted in a Measured Resource estimate of 15.8 million tonnes at 8.8 per cent total graphitic carbon (TGC) for approximately 1.4 million tonnes of contained graphite.

The total (Measured, Indicated and Inferred) Siviour Mineral Resource estimate now consists of 87.4 million tonnes at 7.5 per cent TGC for 6.6 million tonnes of contained resource (with 64 per cent classified as Measured or Indicated).


Renascor Resources Confirms Additional High-Grade Graphite

THE DRILL SERGEANT: Renascor Resources (ASX: RNU) reported assay results from the first 36 holes of a recently completed Definitive Feasibility Study (DFS) drilling program on the company’s saviour graphite project in South Australia.

Renascor Resources said the drill assays received from this initial batch of holes intersected additional near-surface, high-grade graphite, which it considers to further demonstrate continuity of widespread, shallow and high-grade graphite within the Siviour Indicated Resource where Renascor expects to place the initial pit.

From this area, the results included several wide intersections of graphite from within approximately 10 metres of the surface, including:

25m at 14 per cent total graphitic carbon (TGC) from 12m;

33m at 8.9 per cent TGC from 11m;

24m at 10.2 per cent TGC from 26m;

24m at 9.5 per cent TGC from 8m; and

23m at 9.4 per cent TGC from 8m.

“These drill results are another important step in de-risking the Siviour graphite project as we move through our Definitive Feasibility Study work programs and progress to our goal of establishing a globally significant graphite mine,” Renascor Resources managing director David Christensen said in the company’s announcement to the Australian Securities Exchange.

“We are particularly pleased that these assays include several wide intervals of high-grade graphite that are very close to the surface, as this offers further evidence that Siviour will benefit from low mining costs and, in turn, low operating costs.”





Renascor Resources Strikes Agreement to Progress Siviour Graphite Project

THE BOURSE WHISPERER: Renascor Resources (ASX: RNU) announced a strategic partnership agreement with international Engineering, Procurement and Construction (EPC) contractor, Royal IHC Australia (Royal IHC).

Renascor Resources said the agreement would accelerate the development of the company’s Siviour graphite project in South Australia.

Under the terms of the agreement, Royal IHC, with the support of Brisbane-based engineering firm Wave International and Renascor, will establish an integrated team to deliver the Siviour Definitive Feasibility Study.

Royal IHC has also committed $1 million to undertake early project works, including metallurgical testing and detailed engineering and design work.

Renascor said the Strategic Partnership Agreement is the first step in what is planned to be a long and mutually beneficial relationship for both Renascor and Royal IHC, leading to project financing and completion of the Siviour project under an EPC contract.

“We are delighted to have entered into a strategic partnership with a high-quality global engineering partner such as Royal IHC,” Renascor Resources managing director David Christensen said in the company’s announcement to the Australian Securities Exchange.

“This is an innovative partnership that we expect will accelerate the development of the Siviour graphite project towards production.

“Royal IHC have demonstrated their strong belief in Siviour by contributing $1 million to undertake early works thereby ensuring we can continue to rapidly advance the DFS.”

Renascor explained that in the event the project proceeds, the agreement provides that Royal IHC will assist the company in obtaining project finance commitments to support the capital development of Siviour.

Such assistance is expected to include utilising Royal IHC’s Treasury team which has strong connections with major commercial banks and export credit agencies that may participate in project financing.

The agreement further provides that, in the event Renascor does not obtain financing for Siviour within three months after final regulatory approvals, IHC may convert its contribution into Renascor shares, subject to any necessary shareholder approvals, at the greater of Renascor’s current share price and the share price at time of conversion.