Ironbark Zinc (ASX: IBG) is moving ever closer to development of the wholly owned Citronen Base Metal Project with today's agreement with NFC (China Nonferrous Metal Industry’s Foreign Engineering and Construction Co. Ltd) and Allmine Group (ASX: AZG).
Which is deftly timed as Ironbark is currently finalising a Feasibility Study on the Citronen project.
The agreement will seek to define a framework for; NFC to engineer, design, procure, supply, construct, test and commission the project on a full turnkey basis; and also to facilitate funding of the project development costs from major banks in China.
It will also look at an offtake agreement with NFC for the concentrate products of the project.
NFC has a market capitalisation of $3.4 billion and listed on the Shenzen Stock Exchange.
Jonathan Downes, managing director of Ironbark, along with chairman Peter Bennetto - signed the agreement with senior representatives of the NFC in Beijing.
Bennetto commented, “Ironbark is delighted to enter into a mutually rewarding relationship with NFC for the development of the Citronen base metal project.
"NFC’s credentials are beyond reproach in the engineering, construction and delivery of major international projects."
Qin Junman, Vice-president of the NFC added, “NFC is looking forward to fostering a close and productive relationship based on cooperation with Ironbark as we jointly work on the development of a major new zinc and lead mining operation.
"We are pleased to have signed the MOU and believe that a close relationship will result in an exciting outcome.”
Under the signed agreement the company will work with NFC and Arccon (the subsidiary of Allmine Group) to establish the development program and associated costs for the delivery of the project.
Citronen is being evaluated to mine at a rate of 3 million tonnes per annum and produce zinc and lead concentrates for delivery around the world.
The project currently hosts in excess of 11 billion pounds of zinc and lead, with the full JORC Resource 59.9 million tonnes at 5.9% zinc plus lead.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19164/ironbark-zinc-signs-key-agreement-with-chinese-construction-group-nfc-for-citronen-project-19164.html
Proactiveinvestors is a leading multi-media news organisation, investor portal and events management business with offices in New York, Sydney, Toronto, Frankfurt and London.
Wednesday, 31 August 2011
Rey Resources approvals process on track for Duchess Paradise coal project
Rey Resources (ASX: REY) has confirmed that its Duchess Paradise thermal coal project is unaffected by the West Kimberly National Heritage Listing announced by the Federal Environment Minister yesterday.
This decision, along with the recent Western Australian Environmental Protection Authority’s (EPA) level of assessment advice for the project as Public Environmental Review (PER), is in line with Rey’s expectations and provides further certainty to the company.
The company is confident the assessment process will demonstrate the project meets the EPA’s objectives for protection of the environment.
Rey is preparing to progress the project through the approvals process as the proposed mine site and associated transport route is outside the area to be included in the Heritage Listing.
Kevin Wilson, Rey Resources’ managing director, said “importantly the State process provides an opportunity for the project to be considered within the established PER framework, and we are continuing to work with the EPA to progress through the approvals process.”
“The company is looking forward to demonstrating that the project can be implemented while protecting the environment and meeting expectations of key stakeholders including Traditional Owners."
There will be an eight week public review period of the PER, expected to be in 2012.
Rey Resources has contributed to the Federal Government’s National Heritage Listing assessment of the West Kimberley over a period of two years.
A section of the Derby Port area is included in the Heritage Listing and this relates to past activities and associated historical values.
Rey has received advice from the Federal Department of Environment that new development cannot affect these values and would not need to be assessed by the Federal Minister. As a result the company believes this will not affect plans to export from the Derby Port.
The proposed Duchess Paradise Project is a thermal coal, low impact slot mining and underground operation with a planned production rate of up to 2.5 Mtpa. It is located on a remote pastoral station, 175 kilometres by road southeast of Derby.
The preliminary mine plan for the Duchess Paradise Project has been designed to have the smallest practical footprint, on land that has been grazed by livestock for well over 100 years, and does not impact on any environmental protection areas.
Rey has recently commissioned an independent economic analysis of its proposed Duchess Paradise Project using early mine plans and financial data.
This analysis has estimated the project will create employment for about 300 people during the initial construction phase starting in 2013, and an estimated 300 further jobs over the mine life.
In July Rey received a major vote of confidence from investors with firm commitments for a A$8 million placement, comprising 40 million shares at $0.20.
Rey recommenced its 2011 drilling program in June, after the wet season, at Duchess Paradise to expand shallow coal thermal coal reserves to extend the 10 year life.
The completion of the Definitive Feasibility Study at Duchess Paradise in June confirms it as being an economically robust thermal coal export project, with a longer life than expected, and strong cashflows estimated with EBITDA at $504 million over the first 5 years of sales.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19163/rey-resources-approvals-process-on-track-for-duchess-paradise-coal-project-19163.html
This decision, along with the recent Western Australian Environmental Protection Authority’s (EPA) level of assessment advice for the project as Public Environmental Review (PER), is in line with Rey’s expectations and provides further certainty to the company.
The company is confident the assessment process will demonstrate the project meets the EPA’s objectives for protection of the environment.
Rey is preparing to progress the project through the approvals process as the proposed mine site and associated transport route is outside the area to be included in the Heritage Listing.
Kevin Wilson, Rey Resources’ managing director, said “importantly the State process provides an opportunity for the project to be considered within the established PER framework, and we are continuing to work with the EPA to progress through the approvals process.”
“The company is looking forward to demonstrating that the project can be implemented while protecting the environment and meeting expectations of key stakeholders including Traditional Owners."
There will be an eight week public review period of the PER, expected to be in 2012.
Rey Resources has contributed to the Federal Government’s National Heritage Listing assessment of the West Kimberley over a period of two years.
A section of the Derby Port area is included in the Heritage Listing and this relates to past activities and associated historical values.
Rey has received advice from the Federal Department of Environment that new development cannot affect these values and would not need to be assessed by the Federal Minister. As a result the company believes this will not affect plans to export from the Derby Port.
The proposed Duchess Paradise Project is a thermal coal, low impact slot mining and underground operation with a planned production rate of up to 2.5 Mtpa. It is located on a remote pastoral station, 175 kilometres by road southeast of Derby.
The preliminary mine plan for the Duchess Paradise Project has been designed to have the smallest practical footprint, on land that has been grazed by livestock for well over 100 years, and does not impact on any environmental protection areas.
Rey has recently commissioned an independent economic analysis of its proposed Duchess Paradise Project using early mine plans and financial data.
This analysis has estimated the project will create employment for about 300 people during the initial construction phase starting in 2013, and an estimated 300 further jobs over the mine life.
In July Rey received a major vote of confidence from investors with firm commitments for a A$8 million placement, comprising 40 million shares at $0.20.
Rey recommenced its 2011 drilling program in June, after the wet season, at Duchess Paradise to expand shallow coal thermal coal reserves to extend the 10 year life.
The completion of the Definitive Feasibility Study at Duchess Paradise in June confirms it as being an economically robust thermal coal export project, with a longer life than expected, and strong cashflows estimated with EBITDA at $504 million over the first 5 years of sales.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19163/rey-resources-approvals-process-on-track-for-duchess-paradise-coal-project-19163.html
Latin Resources gold shows are shaping Gualdalco to be a major multi commodity project in Peru
Latin Resources (ASX: LRS) has delivered another boost to the Guadalupito Iron and Heavy Mineral Sand Project in northern Peru, which is showing early signs of having the potential to develop into significant multi-commodity "play".
The multi-commodity aspect is supported by the latest results from an extensive sampling program, which has discovered gold up to 5.36 grams per tonne (g/t).
The program consisted of 366 exploration pits, dug just 1 metre deep, which uncovered an average grade of 0.552g/t gold.
Highlighting the gold potential - a total of 64 samples returned plus 1.0g/t gold, with eight samples being greater than 3g/t gold.
The sampling was undertaken in a 1 kilometre by 100 metre spacing along 25 kilometres of strike, and up to 3 kilometres across strike, with a focus on prospective sediment packages.
Chris Gale, managing director, commented on the discovery - and said that he is especially encouraged by these latest results that suggest a high likelihood that gold will be added to the list of value products from the project.
“Clearly Guadalupito is taking shape not only as an Iron Sands project, but also as a robust multi-commodity mineral sands and gold project of world class proportions."
Guadalupito also contains an Iron and Heavy Mineral Sand deposit which displays potential for magnetite, with important levels of coincident heavy minerals including low iron andalusite, a variety of titanium minerals, zircon and rare earth element bearing minerals.
This all adds up to a highly anticipated Inferred JORC Resource, which is forecast to be delivered by Snowden Mining shortly.
Analysis
Acquiring an advanced project of the quality of Guadalupito is rare enough, with potential to become a significant (global) producer of magnetite and heavy mineral sands with potential for low cost development and production.
Importantly, for the project returns, capital costs are expected to be low as only very simple beneficiation will be required due to extensive weathering.
The scale and exploration target of 2 billion tonnes at Guadalupito plus its proximity to infrastructure and port tick more boxes.
The port town of Chimbote is just 25 kilometres away and proximity to one of the largest steel smelters in the country.
The recent investment by major global resources investor RMB Resources should send a signal that current valuation of Latin Resource at around $17 million is low with an upcoming JORC Resource milestone followed by a Scoping Study milestone at the end of 2011, as the company progresses Guadalupito towards production.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19162/latin-resources-gold-shows-are-shaping-gualdalco-to-be-a-major-multi-commodity-project-in-peru-19162.html
The multi-commodity aspect is supported by the latest results from an extensive sampling program, which has discovered gold up to 5.36 grams per tonne (g/t).
The program consisted of 366 exploration pits, dug just 1 metre deep, which uncovered an average grade of 0.552g/t gold.
Highlighting the gold potential - a total of 64 samples returned plus 1.0g/t gold, with eight samples being greater than 3g/t gold.
The sampling was undertaken in a 1 kilometre by 100 metre spacing along 25 kilometres of strike, and up to 3 kilometres across strike, with a focus on prospective sediment packages.
Chris Gale, managing director, commented on the discovery - and said that he is especially encouraged by these latest results that suggest a high likelihood that gold will be added to the list of value products from the project.
“Clearly Guadalupito is taking shape not only as an Iron Sands project, but also as a robust multi-commodity mineral sands and gold project of world class proportions."
Guadalupito also contains an Iron and Heavy Mineral Sand deposit which displays potential for magnetite, with important levels of coincident heavy minerals including low iron andalusite, a variety of titanium minerals, zircon and rare earth element bearing minerals.
This all adds up to a highly anticipated Inferred JORC Resource, which is forecast to be delivered by Snowden Mining shortly.
Analysis
Acquiring an advanced project of the quality of Guadalupito is rare enough, with potential to become a significant (global) producer of magnetite and heavy mineral sands with potential for low cost development and production.
Importantly, for the project returns, capital costs are expected to be low as only very simple beneficiation will be required due to extensive weathering.
The scale and exploration target of 2 billion tonnes at Guadalupito plus its proximity to infrastructure and port tick more boxes.
The port town of Chimbote is just 25 kilometres away and proximity to one of the largest steel smelters in the country.
The recent investment by major global resources investor RMB Resources should send a signal that current valuation of Latin Resource at around $17 million is low with an upcoming JORC Resource milestone followed by a Scoping Study milestone at the end of 2011, as the company progresses Guadalupito towards production.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19162/latin-resources-gold-shows-are-shaping-gualdalco-to-be-a-major-multi-commodity-project-in-peru-19162.html
Ram Resources encouraged by rare earths elements potential from results at Motzfeldt
Ram Resources (ASX: RMR) has received promising preliminary results from reconnaissance exploration work at its Merino and Romney targets within its 51% owned Motzfeldt multi element Project in South Greenland.
The company has also provided an exploration update with 820 metres of diamond drilling now been completed at the Aries prospect.
A total of and 76 rock chip samples have been acquired over the Merino and Romney exploration targets with grades of potentially economic interest for niobium (Nb2O5), tantalum and rare earth elements (REEs) confirmed across both targets.
Good grades have been seen over a strike of 1 kilometre at Merino, where a total of 15 samples had grades of >1,000 parts per million (ppm) Nb2O5.
The best sample in altered syenite on Merino grades 5,214 ppm Nb2O5, 332 ppm Ta2O5, 3.8% ZrO2 and 1.178% REO+Y2O3 (Rare Earth Oxide grade is total for La2O3, Ce2O3, Pr2O3, Nd2O3).
The company would be encouraged that attractive grades can still be found in rocks away from the main Aries Prospect. Importantly, the grades are found in lithologies that are less altered than those at Aries.
This suggests that mineralisation can be found away from the major hydrothermal event that appears to have enriched mineralisation at Aries, thus increasing the prospectivity of the Motzfeldt Centre as a whole.
Limited sampling at the Rams Head target failed to return encouraging results and this target has now been assigned a lower priority.
The samples were prepared and analysed in the field using a portable XRF.
The company said regional exploration work on new exploration licence 2011/24 is 90% complete with over 600 samples collected. These results are currently being reviewed and will be announced when this process is completed.
Drilling Update
Drilling commenced at the Aries Prospect on 27 July 2011 and about 820 metres has been drilled so far.
Drilling progress has been slower than desired due mainly to issues with the water supply to the diamond drill rigs. The company said few shifts have also been lost due to poor weather conditions.
Additional equipment has been deployed, which has resolved the drilling water issue, and this has lead to an improvement in drilling rates.
The geological team has reinterpreted and confirmed the locations of 9 diamond drill holes completed in 2001 by previous owner Angus & Ross Plc, with the assistance of Dr Ashlyn-Armour-Brown.
The locations of these historical holes had not been marked on site and had to be calculated from a local grid.
The result is that the historical holes are located slightly further south and east than previously thought.
The original 16-hole drill plan has been amended to account for the corrected historical drilling, eliminating the need for two holes.
The company now expects to complete about 10 drill holes by the second week of September 2011.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19161/ram-resources-encouraged-by-rare-earths-elements-potential-from-results-at-motzfeldt-19161.html
The company has also provided an exploration update with 820 metres of diamond drilling now been completed at the Aries prospect.
A total of and 76 rock chip samples have been acquired over the Merino and Romney exploration targets with grades of potentially economic interest for niobium (Nb2O5), tantalum and rare earth elements (REEs) confirmed across both targets.
Good grades have been seen over a strike of 1 kilometre at Merino, where a total of 15 samples had grades of >1,000 parts per million (ppm) Nb2O5.
The best sample in altered syenite on Merino grades 5,214 ppm Nb2O5, 332 ppm Ta2O5, 3.8% ZrO2 and 1.178% REO+Y2O3 (Rare Earth Oxide grade is total for La2O3, Ce2O3, Pr2O3, Nd2O3).
The company would be encouraged that attractive grades can still be found in rocks away from the main Aries Prospect. Importantly, the grades are found in lithologies that are less altered than those at Aries.
This suggests that mineralisation can be found away from the major hydrothermal event that appears to have enriched mineralisation at Aries, thus increasing the prospectivity of the Motzfeldt Centre as a whole.
Limited sampling at the Rams Head target failed to return encouraging results and this target has now been assigned a lower priority.
The samples were prepared and analysed in the field using a portable XRF.
The company said regional exploration work on new exploration licence 2011/24 is 90% complete with over 600 samples collected. These results are currently being reviewed and will be announced when this process is completed.
Drilling Update
Drilling commenced at the Aries Prospect on 27 July 2011 and about 820 metres has been drilled so far.
Drilling progress has been slower than desired due mainly to issues with the water supply to the diamond drill rigs. The company said few shifts have also been lost due to poor weather conditions.
Additional equipment has been deployed, which has resolved the drilling water issue, and this has lead to an improvement in drilling rates.
The geological team has reinterpreted and confirmed the locations of 9 diamond drill holes completed in 2001 by previous owner Angus & Ross Plc, with the assistance of Dr Ashlyn-Armour-Brown.
The locations of these historical holes had not been marked on site and had to be calculated from a local grid.
The result is that the historical holes are located slightly further south and east than previously thought.
The original 16-hole drill plan has been amended to account for the corrected historical drilling, eliminating the need for two holes.
The company now expects to complete about 10 drill holes by the second week of September 2011.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19161/ram-resources-encouraged-by-rare-earths-elements-potential-from-results-at-motzfeldt-19161.html
Aviva Corporation delivers initial resource at West Kenya project at 4% copper equivalent
Aviva Corporation (ASX: AVA, BSE: AVIVA) has achieved a maiden Inferred JORC Resource of 1.68 million tonnes (Mt) grading 4% copper (Cu) equivalent – 1.8% Cu, 0.7 grams per tonne (g/t) gold, 36.8g/t silver (Ag) and 5.4% zinc (Zn) at its Bumbo Deposit in West Kenya.
The initial resource exceeds the company's expectations in terms of tonnes and grade, and has been delineated within eight months of the commencement of drilling at Bumbo, which is part of the West Kenya Project.
The Resource was compiled by independent expert Ian Glacken, who is a Fellow of the Australasian Institute of Mining and Metallurgy.
Modelling of peripheral gold mineralisation at the base metal deposit identified an exploration target of 450,000 to 700,000 tonnes grading between 1g/t and 1.5g/t gold. It is possible that the gold mineralisation may contain other economic metals of interest, particularly silver.
Also, encouraging results from early VTEM anomaly drilling in the Bumbo base metals precinct include – 69 metres at 0.6%Zn, 0.15% Cu and 4.2g/t Ag at VTEM 3.
The company considers this result very significant as it confirms the prospectively of the stratigraphic conductors located in the northern and eastern part of the VTEM survey.
Importantly, the Bumbo VTEM survey covered only a fraction of the project area considered to be prospective for base metals and the company is bullish about the potential for more base metal deposits.
Aviva is now planning the extension of its base metals drilling, soil sampling and geophysical surveys, with a view to expanding the base metals inventory in West Kenya.
This will be done by combining the knowledge gained from drilling Bumbo and selected VTEM anomalies with the geophysical and geochemical signatures of those targets.
Bumbo is a polymetallic deposit with Cu, Zn, Au and Ag as the primary metals. The mineralisation is characterised by a central layer of massive sulphides with adjacent more disseminated and inter-layered sulphides.
The deposit is subdivided into two main lenses, each striking approximately east-west and dipping steeply to the north.
The exploration history is reasonably extensive, with several phases of activity which have focussed largely on gold mineralisation and regional targets.
Importantly, Bumbo has 44 diamond drill (DD) holes intersecting the zone of mineralisation.
In July 2010 Aviva and AfriOre International Ltd, a Lonmin (LON: LMI) subsidiary, signed a joint venture agreement under which Aviva can earn up to 75% of the West Kenya project through expenditure and completion of a Pre-Feasibility Study (PFS).
The project area covers a large part of the Ndori Greenstone belt in West Kenya comprising two contiguous licences covering around 2,800 square kilometres.
The Ndori Greenstone Belt is similar to other Greenstone Belts in the Tanzania Craton, and also closer to home in Western Australia.
Aviva can earn a 51% interest in the licenses by spending $US3 million over three years.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19160/aviva-corporation-delivers-initial-resource-at-west-kenya-project-at-4-copper-equivalent-19160.html
The initial resource exceeds the company's expectations in terms of tonnes and grade, and has been delineated within eight months of the commencement of drilling at Bumbo, which is part of the West Kenya Project.
The Resource was compiled by independent expert Ian Glacken, who is a Fellow of the Australasian Institute of Mining and Metallurgy.
Modelling of peripheral gold mineralisation at the base metal deposit identified an exploration target of 450,000 to 700,000 tonnes grading between 1g/t and 1.5g/t gold. It is possible that the gold mineralisation may contain other economic metals of interest, particularly silver.
Also, encouraging results from early VTEM anomaly drilling in the Bumbo base metals precinct include – 69 metres at 0.6%Zn, 0.15% Cu and 4.2g/t Ag at VTEM 3.
The company considers this result very significant as it confirms the prospectively of the stratigraphic conductors located in the northern and eastern part of the VTEM survey.
Importantly, the Bumbo VTEM survey covered only a fraction of the project area considered to be prospective for base metals and the company is bullish about the potential for more base metal deposits.
Aviva is now planning the extension of its base metals drilling, soil sampling and geophysical surveys, with a view to expanding the base metals inventory in West Kenya.
This will be done by combining the knowledge gained from drilling Bumbo and selected VTEM anomalies with the geophysical and geochemical signatures of those targets.
Bumbo is a polymetallic deposit with Cu, Zn, Au and Ag as the primary metals. The mineralisation is characterised by a central layer of massive sulphides with adjacent more disseminated and inter-layered sulphides.
The deposit is subdivided into two main lenses, each striking approximately east-west and dipping steeply to the north.
The exploration history is reasonably extensive, with several phases of activity which have focussed largely on gold mineralisation and regional targets.
Importantly, Bumbo has 44 diamond drill (DD) holes intersecting the zone of mineralisation.
In July 2010 Aviva and AfriOre International Ltd, a Lonmin (LON: LMI) subsidiary, signed a joint venture agreement under which Aviva can earn up to 75% of the West Kenya project through expenditure and completion of a Pre-Feasibility Study (PFS).
The project area covers a large part of the Ndori Greenstone belt in West Kenya comprising two contiguous licences covering around 2,800 square kilometres.
The Ndori Greenstone Belt is similar to other Greenstone Belts in the Tanzania Craton, and also closer to home in Western Australia.
Aviva can earn a 51% interest in the licenses by spending $US3 million over three years.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19160/aviva-corporation-delivers-initial-resource-at-west-kenya-project-at-4-copper-equivalent-19160.html
Central Petroleum's central Australian unconventional oil and gas resources valued at A$412m
Central Petroleum's (ASX: CTP) unconventional gas and oil resources located in central Australia have been estimated at a value of $412 million following the release of two new reports.
The company has also provided an update on its drilling program in the Pedirka Basin in central Australia.
The interim independent valuation reports were written by Mulready Consulting Pty Ltd with contributions by Holt Campbell and Payton Pty Ltd and DSWPET Pty Ltd.
Central's preferred valuation for the upstream component (exploration and potential production) of the fully risked prospective resources in Central’s acreage in the Amadeus and Southern Georgina Basins is $412 million.
The preferred valuation for the proposed downstream component (ultra-clean transport fuel production from Fischer Tropsch GTL plant) is $5 billion, should gas discoveries prove sufficient to supply the 5TCF of gas which would be required.
Significantly, a recurring factor in both reports is the fact that the unconventional petroleum sector is virtually unknown in Australia, whereas in North America it has become a major factor in the continent’s fuel supplies.
These valuations are based on very early stage exploration generally in Australia for unconventional petroleum and will warrant re-visiting as more transactional, exploration and possible production data become progressively available.
John Heugh, Central’s managing director, said “interest in Australian unconventional acreage and recent farmin deals into unconventional acreage have escalated considerably which has been confirmed with the BG Group’s farmin to Drillsearch’s Cooper Basin acreage imputing a valuation of approximately $300/net acre.”
“It is noteable that the Drillsearch farmout to the BG Group was a much smaller acreage but a much richer deal than previous unconventional farmout deals in Australia which collectively have imputed values ranging from approximately $10 to $35/net acre."
If further exploration brings success, the implied valuation of farmout deals per net acre of promising Australian unconventional acreage may gravitate closer to the far more lucrative North American valuations.
Central aims to selectively and progressively farmout portions of its vast acreage to different companies on successively better terms as exploration success in and around the Company’s acreage progresses.
Both Rodinia and Petrofrontier (CVE: PFC) have current drilling programs in areas close to Central which may de-risk the company’s acreage should those companies have exploration success.
The company said it does not wish to enter in to early broadacre deals over all or most of its acreage with the one company.
Drilling Update
The company is planning contingently to re-enter the Surprise-ST1 well late September 2011 to accelerate a program over the next 6-12 months focussed on re-entry and testing of Surprise-ST1 (10 MMbbls UOIIP-P50) for oil potential in both conventional and unconventional horizons.
Significant oil shows were encountered in several horizons in December 2010 and based on porosity and permeability measurements, a 9 metre cored section with abundant oil shows was reported by RPS Energy to be capable of flowing between c.500-1,000 bbls/day subject to sufficient oil saturation.
Access road and drill pad maintenance and upgrading is well advanced and a contract with ADS Rig 6 is being finalised.
Central is planning to test both the conventional and unconventional potential of the Surprise structure.
The Surprise prospect has geological parallels to the geology of the Mereenie field, which is believed on discovery had over 300 MMbbls of oil in place of which less than 10% has been extracted to date.
The company is planning other wells before the year’s end incuding the drilling of Mt Kitty-1, a large condensate/helium/gas prospect (UGIIP 2 TCFG, 100 BCF helium-P50) and the drilling of Madigan-1.
Madigan-1 is the first well on a giant structure in the Pedirka Basin thought to have UOIIP potential of over 4 billion barrels (P50) based on preliminary mapping of new seismic acquired in 2010.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19157/central-petroleums-central-australian-unconventional-oil-and-gas-resources-valued-at-a412m--19157.html
The company has also provided an update on its drilling program in the Pedirka Basin in central Australia.
The interim independent valuation reports were written by Mulready Consulting Pty Ltd with contributions by Holt Campbell and Payton Pty Ltd and DSWPET Pty Ltd.
Central's preferred valuation for the upstream component (exploration and potential production) of the fully risked prospective resources in Central’s acreage in the Amadeus and Southern Georgina Basins is $412 million.
The preferred valuation for the proposed downstream component (ultra-clean transport fuel production from Fischer Tropsch GTL plant) is $5 billion, should gas discoveries prove sufficient to supply the 5TCF of gas which would be required.
Significantly, a recurring factor in both reports is the fact that the unconventional petroleum sector is virtually unknown in Australia, whereas in North America it has become a major factor in the continent’s fuel supplies.
These valuations are based on very early stage exploration generally in Australia for unconventional petroleum and will warrant re-visiting as more transactional, exploration and possible production data become progressively available.
John Heugh, Central’s managing director, said “interest in Australian unconventional acreage and recent farmin deals into unconventional acreage have escalated considerably which has been confirmed with the BG Group’s farmin to Drillsearch’s Cooper Basin acreage imputing a valuation of approximately $300/net acre.”
“It is noteable that the Drillsearch farmout to the BG Group was a much smaller acreage but a much richer deal than previous unconventional farmout deals in Australia which collectively have imputed values ranging from approximately $10 to $35/net acre."
If further exploration brings success, the implied valuation of farmout deals per net acre of promising Australian unconventional acreage may gravitate closer to the far more lucrative North American valuations.
Central aims to selectively and progressively farmout portions of its vast acreage to different companies on successively better terms as exploration success in and around the Company’s acreage progresses.
Both Rodinia and Petrofrontier (CVE: PFC) have current drilling programs in areas close to Central which may de-risk the company’s acreage should those companies have exploration success.
The company said it does not wish to enter in to early broadacre deals over all or most of its acreage with the one company.
Drilling Update
The company is planning contingently to re-enter the Surprise-ST1 well late September 2011 to accelerate a program over the next 6-12 months focussed on re-entry and testing of Surprise-ST1 (10 MMbbls UOIIP-P50) for oil potential in both conventional and unconventional horizons.
Significant oil shows were encountered in several horizons in December 2010 and based on porosity and permeability measurements, a 9 metre cored section with abundant oil shows was reported by RPS Energy to be capable of flowing between c.500-1,000 bbls/day subject to sufficient oil saturation.
Access road and drill pad maintenance and upgrading is well advanced and a contract with ADS Rig 6 is being finalised.
Central is planning to test both the conventional and unconventional potential of the Surprise structure.
The Surprise prospect has geological parallels to the geology of the Mereenie field, which is believed on discovery had over 300 MMbbls of oil in place of which less than 10% has been extracted to date.
The company is planning other wells before the year’s end incuding the drilling of Mt Kitty-1, a large condensate/helium/gas prospect (UGIIP 2 TCFG, 100 BCF helium-P50) and the drilling of Madigan-1.
Madigan-1 is the first well on a giant structure in the Pedirka Basin thought to have UOIIP potential of over 4 billion barrels (P50) based on preliminary mapping of new seismic acquired in 2010.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19157/central-petroleums-central-australian-unconventional-oil-and-gas-resources-valued-at-a412m--19157.html
Peak Resources delivers widest and deepest intersection to date at Ngualla Rare Earth Project
Peak Resources (ASX: PEK) has received results from a further fifteen reverse circulation holes at the Ngualla Rare Earths Project in Tanzania - with several new wide drill intersections from surface.
The widest and deepest intersection was received to date, which continues to extend the area of consistent bedrock rare earth mineralisation in the Southern Rare Earth Zone.
Further boosting the latest results is that they also include the second highest grade intersection returned so far, which is located on the extreme south west corner of the current drill pattern.
New reverse circulation highlights include:
- 26 metres at 6.56% rare earth oxide (REO) from 24 metres;
- 84 metres at 3.86% REO from surface;
- 93 metres at 3.62% REO from 32 metres; and
- 92 metres at 3.13% REO from surface.
Supporting these high grade hits are some very broad intersections, such as; 161 metres at 3.88% REO from 12 metres, including 74 metres at 4.71% REO, and 101 metres at 2.86% REO from surface, including 32 metres at 5.08% REO.
Adding to the never ending potential at Ngualla - the rare earth mineralisation remains open to the north, south, east, west and with depth.
These results are demonstrating that Ngualla has potential to be one of the largest and better grade new rare earth discoveries of recent years.
The project also has potential to host large, near surface deposits of niobium – tantalum and phosphate.
The similarities with Lynas Corporations' (ASX: LYC) Mt Weld project, with both projects being rare earth enrichment within the deeply weathered regolith profile of a large carbonatite, will also not hurt.
Assays pending
The 22,000 metre drilling program for 2011 is approaching the half-way point, with operations continuing on site with a total of 76 reverse circulation holes for 9,588 metres now completed within the Southern Rare Earth Zone.
Drilling also recently commenced in the South West Alluvial Zone with 20 aircore holes for 533 metres, which was completed at the end of last month.
Adding to the short term news flow for Peak, results from an additional 73 completed drill holes are pending - forecast to be released within coming weeks.
Several of these holes intersected deep ferruginous weathering up to 140 metres vertical depth in areas of known mineralisation.
Peak moves to full ownership of Ngualla
Last week Peak entered into a conditional agreement to acquire all the issued capital of Tanzanian Joint Venture partner Zari Exploration Ltd, providing Peak full ownership of Ngualla.
The significance of the transaction for Peak is that Ngualla has the potential to be one of the largest and better grade new rare earth discoveries in recent years.
The deal will provide the company with greater flexibility of options in taking the project forward, with a maiden JORC Resource currently forecast to be delivered in the March quarter of 2012.
Payment for the acquisition to Zari shareholders is through a combination of cash and shares consisting of US$6 million cash and around 24.3 million Peak shares.
As operator and manager Peak is currently earning 80% equity in the project by carrying Zari through to the completion of a Bankable Feasibility Study.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19158/peak-resources-delivers-widest-and-deepest-intersection-to-date-at-ngualla-rare-earth-project-19158.html
The widest and deepest intersection was received to date, which continues to extend the area of consistent bedrock rare earth mineralisation in the Southern Rare Earth Zone.
Further boosting the latest results is that they also include the second highest grade intersection returned so far, which is located on the extreme south west corner of the current drill pattern.
New reverse circulation highlights include:
- 26 metres at 6.56% rare earth oxide (REO) from 24 metres;
- 84 metres at 3.86% REO from surface;
- 93 metres at 3.62% REO from 32 metres; and
- 92 metres at 3.13% REO from surface.
Supporting these high grade hits are some very broad intersections, such as; 161 metres at 3.88% REO from 12 metres, including 74 metres at 4.71% REO, and 101 metres at 2.86% REO from surface, including 32 metres at 5.08% REO.
Adding to the never ending potential at Ngualla - the rare earth mineralisation remains open to the north, south, east, west and with depth.
These results are demonstrating that Ngualla has potential to be one of the largest and better grade new rare earth discoveries of recent years.
The project also has potential to host large, near surface deposits of niobium – tantalum and phosphate.
The similarities with Lynas Corporations' (ASX: LYC) Mt Weld project, with both projects being rare earth enrichment within the deeply weathered regolith profile of a large carbonatite, will also not hurt.
Assays pending
The 22,000 metre drilling program for 2011 is approaching the half-way point, with operations continuing on site with a total of 76 reverse circulation holes for 9,588 metres now completed within the Southern Rare Earth Zone.
Drilling also recently commenced in the South West Alluvial Zone with 20 aircore holes for 533 metres, which was completed at the end of last month.
Adding to the short term news flow for Peak, results from an additional 73 completed drill holes are pending - forecast to be released within coming weeks.
Several of these holes intersected deep ferruginous weathering up to 140 metres vertical depth in areas of known mineralisation.
Peak moves to full ownership of Ngualla
Last week Peak entered into a conditional agreement to acquire all the issued capital of Tanzanian Joint Venture partner Zari Exploration Ltd, providing Peak full ownership of Ngualla.
The significance of the transaction for Peak is that Ngualla has the potential to be one of the largest and better grade new rare earth discoveries in recent years.
The deal will provide the company with greater flexibility of options in taking the project forward, with a maiden JORC Resource currently forecast to be delivered in the March quarter of 2012.
Payment for the acquisition to Zari shareholders is through a combination of cash and shares consisting of US$6 million cash and around 24.3 million Peak shares.
As operator and manager Peak is currently earning 80% equity in the project by carrying Zari through to the completion of a Bankable Feasibility Study.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19158/peak-resources-delivers-widest-and-deepest-intersection-to-date-at-ngualla-rare-earth-project-19158.html
Mount Burgess Mining identifies rare earth elements from eight tests in Namibia
Mount Burgess Mining (ASX: MTB) has identified some additional rare earth elements from tests at the Tsumkwe Rare Earth Project in Namibia.
A further eight tests have confirmed that the rare earth element mineralogy is predominantly comprised of synchysite - mainly associated with K feldspar, ranging in size from 5 microns up to 200 microns.
Mount Burgess said that the rare mineral synchysite was confirmed by XRD by the CSIRO in May this year.
The results are from SEM/PLM analysis of drill chip samples from a recent percussion hole.
Whilst monazite is a common trace mineral in granites and mineral sands/placer deposits, synchysite and bastnesite are rarely detected in most rocks.
Mount Burgess said that the predominance of synchysite in this instance is therefore seen as prospective.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19156/mount-burgess-mining-identifies-rare-earth-elements-from-eight-tests-in-namibia-19156.html
A further eight tests have confirmed that the rare earth element mineralogy is predominantly comprised of synchysite - mainly associated with K feldspar, ranging in size from 5 microns up to 200 microns.
Mount Burgess said that the rare mineral synchysite was confirmed by XRD by the CSIRO in May this year.
The results are from SEM/PLM analysis of drill chip samples from a recent percussion hole.
Whilst monazite is a common trace mineral in granites and mineral sands/placer deposits, synchysite and bastnesite are rarely detected in most rocks.
Mount Burgess said that the predominance of synchysite in this instance is therefore seen as prospective.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19156/mount-burgess-mining-identifies-rare-earth-elements-from-eight-tests-in-namibia-19156.html
IMX Resources appoints Andrew Steers as acting chief executive officer
IMX Resources (ASX: IXR) has appointed Andrew Steers as acting chief executive officer with immediate effect, following the resignation of managing director, Duncan McBain.
Steers currently holds the position of chief financial officer and company secretary, and is an integral part of the group’s executive management.
With the appointment of Steers as acting chief executive officer the business will continue to advance its current initiatives, whilst allowing the board to continue its search for a new managing director.
On August 29 IMX kicked off a second round of reverse circulation drilling at the highly prospective Snaefell iron ore prospect.
The prospect offers high potential due to its location just 12 kilometres to the south-west of the producing Cairn Hill magnetite copper gold mine.
Snaefell is part of the wholly owned Mt Woods Iron Project, which is interpreted to have a strike length of more than 3 kilometres - and a vertical depth extent of at least 250 metres.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19155/imx-resources-appoints-andrew-steers-as-acting-chief-executive-officer-19155.html
Steers currently holds the position of chief financial officer and company secretary, and is an integral part of the group’s executive management.
With the appointment of Steers as acting chief executive officer the business will continue to advance its current initiatives, whilst allowing the board to continue its search for a new managing director.
On August 29 IMX kicked off a second round of reverse circulation drilling at the highly prospective Snaefell iron ore prospect.
The prospect offers high potential due to its location just 12 kilometres to the south-west of the producing Cairn Hill magnetite copper gold mine.
Snaefell is part of the wholly owned Mt Woods Iron Project, which is interpreted to have a strike length of more than 3 kilometres - and a vertical depth extent of at least 250 metres.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19155/imx-resources-appoints-andrew-steers-as-acting-chief-executive-officer-19155.html
Crescent Gold: Focus Minerals holds up to 83.2%, offer extended to mid September
The takeover of Crescent Gold (ASX: CRE, TSE: CRA) by Focus Minerals (ASX: FML) is moving towards a conclusion, with Focus now holding 77.8% of Crescent.
This relevant interest would be further boosted to 83.2% if Focus converted up to $13 million worth of Crescent convertible notes.
To mop up the remaining shares, the offer period has now been extended to Wednesday 14 September.
The Crescent board unanimously recommends the offer in the absence of a superior proposal.
Due to the size of the Focus holding, the company considers it unlikely that a superior proposal will eventuate.
The new Focus Minerals
The transaction will allow Focus to become one of Australia's top five gold producers, with targeted annual production of 230,000 ounces.
The JORC Resource base of the new Focus would be 4.3 million ounces, with strong growth potential across two major Western Australian mining regions.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19153/crescent-gold-focus-minerals-holds-up-to-832-offer-extended-to-mid-september-19153.html
This relevant interest would be further boosted to 83.2% if Focus converted up to $13 million worth of Crescent convertible notes.
To mop up the remaining shares, the offer period has now been extended to Wednesday 14 September.
The Crescent board unanimously recommends the offer in the absence of a superior proposal.
Due to the size of the Focus holding, the company considers it unlikely that a superior proposal will eventuate.
The new Focus Minerals
The transaction will allow Focus to become one of Australia's top five gold producers, with targeted annual production of 230,000 ounces.
The JORC Resource base of the new Focus would be 4.3 million ounces, with strong growth potential across two major Western Australian mining regions.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19153/crescent-gold-focus-minerals-holds-up-to-832-offer-extended-to-mid-september-19153.html
Ironbark Zinc commences drilling targeting base metals at Peak View prospect
Ironbark Zinc (ASX: IBG) has commenced drilling at its 100% owned Peak View copper, lead, zinc, gold and silver prospect to determine the potential extent of the mineralisation at depth and extensional to the south.
Ironbark plans to drill 11 holes for a total of about 1700 metres to follow up on historic WMC drilling at the Peak View prospect located about 50 kilometres south of Captains Flat in New South Wales.
Historic intercepts include 2.1 metres at 11.65% zinc, 5.64% lead and 1.93% copper from 33 metres; and 2.65 metres at 3.89% zinc, 1.46% lead & 5.03% copperfrom 91 metres.
The Peak View prospect hosts outcropping gossans and a recent high resolution soil sampling program identified a north, north-west trending zone of continuous base metal mineralisation that extends north and south of the historic drilling.
The Peak View Project lies within the Lachlan Fold Belt that hosts numerous historic mineral occurrences and mines including the Big Badja Silver Mine and the Macanally Workings.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19154/ironbark-zinc-commences-drilling-targeting-base-metals-at-peak-view-prospect-19154.html
Ironbark plans to drill 11 holes for a total of about 1700 metres to follow up on historic WMC drilling at the Peak View prospect located about 50 kilometres south of Captains Flat in New South Wales.
Historic intercepts include 2.1 metres at 11.65% zinc, 5.64% lead and 1.93% copper from 33 metres; and 2.65 metres at 3.89% zinc, 1.46% lead & 5.03% copperfrom 91 metres.
The Peak View prospect hosts outcropping gossans and a recent high resolution soil sampling program identified a north, north-west trending zone of continuous base metal mineralisation that extends north and south of the historic drilling.
The Peak View Project lies within the Lachlan Fold Belt that hosts numerous historic mineral occurrences and mines including the Big Badja Silver Mine and the Macanally Workings.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19154/ironbark-zinc-commences-drilling-targeting-base-metals-at-peak-view-prospect-19154.html
Manas Resources: Foyil Securities places "BUY" recommendation
Eastern European stock broker Foyil Securities has written a research report on Manas Resources (ASX: MSR), placing a "BUY" recommendation on the stock.
Company data
Shares outstanding (m) 177.4
Current price (AUD) 0.185
Market Cap (AUD m) 32.82
Golden opportunity
With the price of gold off the record levels at but still trading at USD 1,730 per ounce or 20% higher YTD, we have been investigating companies in our region, which can be defined as the Former Soviet Union (FSU), that are either producing or are very close to producing gold from mining activities.
Key areas we have focused on are location, resource outlined to date and average operating cost per ounce.
We are pleased to present clients of Foyil Securities with background on Australian quoted Manas Resources (MSR AU) who are on the verge of producing gold from their 100% owned projects in the Kyrgyz Republic with a production cost that will make them one of the lowest cost gold miners in the world right at the time when gold is still viewed as a viable and safe investment in the time of global economic turmoil.
Key drivers
- Mining approvals on the horizon.
On 21st June MSR reported via an ASX release that they have submitted the TEO report (Technical and Economic Justification Study) to the Kyrgyz Ministry of Natural Resources for review.
The Kyrgyz Republic has made a major effort to attract FDI from international mining companies to develop the gold mining sector in the country.
MSR has full support from the local community and has worked where ever possible with local engineering companies to progress the projects. Approval of the TEO will immediately allow MSR to apply for a
mining license.
The Kyrgyz Republic boasts corporate tax of only 10% and gold production royalties and minor taxes that will be a maximum of 5.5% further adding to the financial strength of the project from a reporting perspective.
- 1.13 million ounces of gold resources which are compliant with the JORC code.
MSR currently has underway a 20,000 m drilling program across all active exploration sites of which 12,500 m has been completed and 5,000 m reported.
The two main target areas to date, Shambesai and Obdilla, give MSR 1.13m ounces of in-ground gold resources based on activities since 2008. MSR continues to drill prospective sites within its 4,400 km2 landholding and in Q2 drilled the first hole at a new site called Pum that lies just 3 km from the main Shambesai zone.
Drilling outside the existing resource boundaries at other prospects has produced an encouraging result, which will require further drilling and analysis but could become a third mine site within the landholding.
With an initial first-stage mine plan producing annual output of 35,000 ounces of gold for 5.5 years, the current resources offer the opportunity for significant expansion both in terms of gold output and mine life.
The next resource update for Shambesai – in which a significant expansion is expected – is due by the end of September.
- Strong balance sheet. On 10th December 2010 MSR announced a capital raising of AUD 11.5m.
This offer was heavily oversubscribed and MSR issued 57.5mn shares at an AUD 0.20 share price. This was notable for being above the prevailing market price of AUD 0.19 at the time.
At 30 June 2011 the company had cash reserves of AUD 8.8 million with 177 million shares, 60 million listed options and 15 million unlisted options on issue.
Cash burn for the current quarter is estimated at AUD 2.65m as the exploration program concludes, which will leave MSR with AUD 6.18m in cash on the balance sheet as the quarter ends, plus a further AUD 12m subject to the exercise of the 60m quoted options at AUD 0.2 exercise price , which expire September 30, 2011.
- Production to start in 2012. MSR plans to start production at the end of 2012.
The production site will be located in the Shambesai valley. CapEx necessary to launch production is estimated at AUD 16.3m, which will be spent on the construction of a Vat and Heap Leach Plant the construction of which will commence upon the company’s receiving government approval.
Money necessary for building the plant will be received either by converting 60m options provided the stock price reached AUD 0.2 per share in September, through issue of further equity or will be borrowed.
Valuation
The purpose of this report is to inform Foyil Securities’ clients of the opportunity in the region. A Scoping Study released on 16 November 2010 showed a pre-tax cash flow of USD 118M at a USD 1,000 gold price for mining mainly the 180,000 ounce high-grade oxide portion of Shambesai only.
Significant upside exists in the remaining resource at Shambesai and the 485,000 ounce Obdilla resource only 7km away.
At this point, our Buy rating of the stock is based on the expected announcement of resource upgrade in September, which will raise the company’s reserves from the current 1.13m ounces and the release of a Feasibility Study later in the year which will place a value on the cash flows to the Company as it enters production.
With a current gold price of USD 1,830 per ounce and past economic figures run at USD 1,000, there is significant potential for a substantial increase in value both on the first-stage oxide operation, future underground and sulphide operations, and on the increase of current in-ground resources.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19144/manas-resources-foyil-securities-places-buy-recommendation--19144.html
Company data
Shares outstanding (m) 177.4
Current price (AUD) 0.185
Market Cap (AUD m) 32.82
Golden opportunity
With the price of gold off the record levels at but still trading at USD 1,730 per ounce or 20% higher YTD, we have been investigating companies in our region, which can be defined as the Former Soviet Union (FSU), that are either producing or are very close to producing gold from mining activities.
Key areas we have focused on are location, resource outlined to date and average operating cost per ounce.
We are pleased to present clients of Foyil Securities with background on Australian quoted Manas Resources (MSR AU) who are on the verge of producing gold from their 100% owned projects in the Kyrgyz Republic with a production cost that will make them one of the lowest cost gold miners in the world right at the time when gold is still viewed as a viable and safe investment in the time of global economic turmoil.
Key drivers
- Mining approvals on the horizon.
On 21st June MSR reported via an ASX release that they have submitted the TEO report (Technical and Economic Justification Study) to the Kyrgyz Ministry of Natural Resources for review.
The Kyrgyz Republic has made a major effort to attract FDI from international mining companies to develop the gold mining sector in the country.
MSR has full support from the local community and has worked where ever possible with local engineering companies to progress the projects. Approval of the TEO will immediately allow MSR to apply for a
mining license.
The Kyrgyz Republic boasts corporate tax of only 10% and gold production royalties and minor taxes that will be a maximum of 5.5% further adding to the financial strength of the project from a reporting perspective.
- 1.13 million ounces of gold resources which are compliant with the JORC code.
MSR currently has underway a 20,000 m drilling program across all active exploration sites of which 12,500 m has been completed and 5,000 m reported.
The two main target areas to date, Shambesai and Obdilla, give MSR 1.13m ounces of in-ground gold resources based on activities since 2008. MSR continues to drill prospective sites within its 4,400 km2 landholding and in Q2 drilled the first hole at a new site called Pum that lies just 3 km from the main Shambesai zone.
Drilling outside the existing resource boundaries at other prospects has produced an encouraging result, which will require further drilling and analysis but could become a third mine site within the landholding.
With an initial first-stage mine plan producing annual output of 35,000 ounces of gold for 5.5 years, the current resources offer the opportunity for significant expansion both in terms of gold output and mine life.
The next resource update for Shambesai – in which a significant expansion is expected – is due by the end of September.
- Strong balance sheet. On 10th December 2010 MSR announced a capital raising of AUD 11.5m.
This offer was heavily oversubscribed and MSR issued 57.5mn shares at an AUD 0.20 share price. This was notable for being above the prevailing market price of AUD 0.19 at the time.
At 30 June 2011 the company had cash reserves of AUD 8.8 million with 177 million shares, 60 million listed options and 15 million unlisted options on issue.
Cash burn for the current quarter is estimated at AUD 2.65m as the exploration program concludes, which will leave MSR with AUD 6.18m in cash on the balance sheet as the quarter ends, plus a further AUD 12m subject to the exercise of the 60m quoted options at AUD 0.2 exercise price , which expire September 30, 2011.
- Production to start in 2012. MSR plans to start production at the end of 2012.
The production site will be located in the Shambesai valley. CapEx necessary to launch production is estimated at AUD 16.3m, which will be spent on the construction of a Vat and Heap Leach Plant the construction of which will commence upon the company’s receiving government approval.
Money necessary for building the plant will be received either by converting 60m options provided the stock price reached AUD 0.2 per share in September, through issue of further equity or will be borrowed.
Valuation
The purpose of this report is to inform Foyil Securities’ clients of the opportunity in the region. A Scoping Study released on 16 November 2010 showed a pre-tax cash flow of USD 118M at a USD 1,000 gold price for mining mainly the 180,000 ounce high-grade oxide portion of Shambesai only.
Significant upside exists in the remaining resource at Shambesai and the 485,000 ounce Obdilla resource only 7km away.
At this point, our Buy rating of the stock is based on the expected announcement of resource upgrade in September, which will raise the company’s reserves from the current 1.13m ounces and the release of a Feasibility Study later in the year which will place a value on the cash flows to the Company as it enters production.
With a current gold price of USD 1,830 per ounce and past economic figures run at USD 1,000, there is significant potential for a substantial increase in value both on the first-stage oxide operation, future underground and sulphide operations, and on the increase of current in-ground resources.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19144/manas-resources-foyil-securities-places-buy-recommendation--19144.html
Nextraction posts 23% sequential sales growth, "encouraging" flow-back rates from Alberta well
As of 9.30am EDT, shares in the Vancouver-headquartered company were up 1.69% at $0.60.
For the three months ending June 30, revenues were $238,868 and net loss was $1.03 million. On a per-share basis, losses per share totalled 4 cents.
Mark S. Dolar, President and CEO said: "Corporate and asset growth has been our primary focus in the first half of 2011."
"In the second quarter of 2011 we encountered several one-time capital expenditures required for the growth of a company of our size. With these costs now behind us, we look forward to improving our balance sheet and generating shareholder value through developing the assets in our inventory."
In February of this year, Nextraction formed a a joint venture with Magnum Energy (CVE:MEN) to acquire the 842-hectare Viking property, located in eastern Alberta's Provost Field. The company also produces light oil and liquids rich gas at its Pinedale Anticline property in Wyoming, and has exploratory rights to conduct a seismic survey and development opportunities in the Saturn Project in Montana.
The oil and gas company said in the three months to June, total production averaged 64 barrels of oil equivalent (boe) per day, weighted 32% light oil and natural gas liquids, and 68% natural gas.
This is 14% lower than average production of 75 boe per day, weighted 13% light oil and natural gas liquids, and 87% natural gas, in the first quarter of 2011, as despite higher oil production in the second quarter, natural gas output dropped from the previous period.
The company said total average production volumes for the second quarter were lower as approximately 55 boe per day was shut-in for the first half of the quarter, as a result of adding facilities required for regulatory compliance and work-over activities.
Still, higher oil and natural gas liquids production and improved realized prices for the commodity helped revenue, with prices of $99.34 per barrel in the second quarter, up 21% from the prior period.
Nextraction exited the second quarter with no debt, and a positive working capital position of $4.15 million, while also securing a commitment from a shareholder to provide a $1.5 million credit facility.
During the period, the company established its Calgary office, and acquired producing properties, beginning the drilling of its initial horizontal well in the Viking formation of eastern Alberta in June. Production is expected to come on stream in the third quarter of this year.
Looking ahead, the company said it plans to focus its attention on developing the Viking project and has identified a further 19 gross locations on the acreage, with hopes to accelerate drilling.
For the three months ending June 30, revenues were $238,868 and net loss was $1.03 million. On a per-share basis, losses per share totalled 4 cents.
Mark S. Dolar, President and CEO said: "Corporate and asset growth has been our primary focus in the first half of 2011."
"In the second quarter of 2011 we encountered several one-time capital expenditures required for the growth of a company of our size. With these costs now behind us, we look forward to improving our balance sheet and generating shareholder value through developing the assets in our inventory."
In February of this year, Nextraction formed a a joint venture with Magnum Energy (CVE:MEN) to acquire the 842-hectare Viking property, located in eastern Alberta's Provost Field. The company also produces light oil and liquids rich gas at its Pinedale Anticline property in Wyoming, and has exploratory rights to conduct a seismic survey and development opportunities in the Saturn Project in Montana.
The oil and gas company said in the three months to June, total production averaged 64 barrels of oil equivalent (boe) per day, weighted 32% light oil and natural gas liquids, and 68% natural gas.
This is 14% lower than average production of 75 boe per day, weighted 13% light oil and natural gas liquids, and 87% natural gas, in the first quarter of 2011, as despite higher oil production in the second quarter, natural gas output dropped from the previous period.
The company said total average production volumes for the second quarter were lower as approximately 55 boe per day was shut-in for the first half of the quarter, as a result of adding facilities required for regulatory compliance and work-over activities.
Still, higher oil and natural gas liquids production and improved realized prices for the commodity helped revenue, with prices of $99.34 per barrel in the second quarter, up 21% from the prior period.
Nextraction exited the second quarter with no debt, and a positive working capital position of $4.15 million, while also securing a commitment from a shareholder to provide a $1.5 million credit facility.
During the period, the company established its Calgary office, and acquired producing properties, beginning the drilling of its initial horizontal well in the Viking formation of eastern Alberta in June. Production is expected to come on stream in the third quarter of this year.
Looking ahead, the company said it plans to focus its attention on developing the Viking project and has identified a further 19 gross locations on the acreage, with hopes to accelerate drilling.
Plato hits 13.34 g/t gold over 2.1 metres at Nordeau East
Plato Gold Corp. (CVE:PGC) announced Wednesday drill results from its Nordeau East property in Quebec, which were included in an updated model of the site, putting the company in a closer position to nailing down more drill targets for further exploration.
The latest phase of diamond drilling on Nordeau East, which is located in the Abitibi Greenstone Belt east of Val-d'Or, comprised 17 holes for a total of 8,754 metres. The campaign was designed to further delineate mineralized zones intersected by Plato in 2006, 2009 and 2010, and by earlier companies' exploration programs.
Highlights of results included 3.01 grams per tonne (g/t) of gold over 1.5 metres in hole NE-11-02; and 13.34 g/t gold over 2.1 metres in hole NE09-01, as well as 12.28g/t gold over 6.5 metres in the same hole.
In addition, hole NE09-02 returned 9.11 g/t gold over 5.6 metres; and hole NE11-17 intersected 4.53 g/t gold over 3.00 metres.
Plato said the results of the 2011 diamond drill program have already been integrated into an updated database. Premliminary modeling in-house has shown that there are five main iron formation horizons at the property, the company said, which individually transect at least 1.5 kilometres of strike length through Nordeau East.
Drilling has intersected gold mineralization in distinct zones along all of these horizons, Plato added.
According to the company, the mineralized zones are not continuous along the entire strike length of the iron formations, but rather appear to be arranged in an en echelon pattern, both along strike and down dip.
A 3D model is currently being created for the project to confirm the preliminary interpretation, and to provide drill targets for further exploration.
“I am pleased with the progress and results coming out of our Nordeau East Property," said president and CEO, Anthony Cohen.
"Our goal is to continue to outline gold mineralization on the property leading to a 43-101 Resource Estimate.
"We have already outlined a NI 43-101 compliant resource at Nordeau West, and with continued success at Nordeau East, we will be able to build a respectable sized gold resource on our large Val d’Or property portfolio."
The Nordeau East property covers part of the eastern extension of the prolific “Larder Lake -
Cadillac Break”. Gold-mineralized zones are spatially associated with the iron formation horizons. Historical reserves of 345,900 tonnes grading 6.33 g/t gold were reported for the property.
The Nordeau West site has an NI 43-101 compliant resource of 30,212 indicated ounces, and 146,315 inferred ounces.
Plato holds a total of seven exploration properties in northern Quebec, as well as four in northern Ontario. It also owns the Lolita property in Santa Cruz, Argentina, which is comprised of 3 concessions, with drill targets expected on this site by year-end.
The latest phase of diamond drilling on Nordeau East, which is located in the Abitibi Greenstone Belt east of Val-d'Or, comprised 17 holes for a total of 8,754 metres. The campaign was designed to further delineate mineralized zones intersected by Plato in 2006, 2009 and 2010, and by earlier companies' exploration programs.
Highlights of results included 3.01 grams per tonne (g/t) of gold over 1.5 metres in hole NE-11-02; and 13.34 g/t gold over 2.1 metres in hole NE09-01, as well as 12.28g/t gold over 6.5 metres in the same hole.
In addition, hole NE09-02 returned 9.11 g/t gold over 5.6 metres; and hole NE11-17 intersected 4.53 g/t gold over 3.00 metres.
Plato said the results of the 2011 diamond drill program have already been integrated into an updated database. Premliminary modeling in-house has shown that there are five main iron formation horizons at the property, the company said, which individually transect at least 1.5 kilometres of strike length through Nordeau East.
Drilling has intersected gold mineralization in distinct zones along all of these horizons, Plato added.
According to the company, the mineralized zones are not continuous along the entire strike length of the iron formations, but rather appear to be arranged in an en echelon pattern, both along strike and down dip.
A 3D model is currently being created for the project to confirm the preliminary interpretation, and to provide drill targets for further exploration.
“I am pleased with the progress and results coming out of our Nordeau East Property," said president and CEO, Anthony Cohen.
"Our goal is to continue to outline gold mineralization on the property leading to a 43-101 Resource Estimate.
"We have already outlined a NI 43-101 compliant resource at Nordeau West, and with continued success at Nordeau East, we will be able to build a respectable sized gold resource on our large Val d’Or property portfolio."
The Nordeau East property covers part of the eastern extension of the prolific “Larder Lake -
Cadillac Break”. Gold-mineralized zones are spatially associated with the iron formation horizons. Historical reserves of 345,900 tonnes grading 6.33 g/t gold were reported for the property.
The Nordeau West site has an NI 43-101 compliant resource of 30,212 indicated ounces, and 146,315 inferred ounces.
Plato holds a total of seven exploration properties in northern Quebec, as well as four in northern Ontario. It also owns the Lolita property in Santa Cruz, Argentina, which is comprised of 3 concessions, with drill targets expected on this site by year-end.
Tarsis reports final batch of results from latest drill program at Erika
Tarsis Resources (CVE:TCC) announced late Tuesday final diamond drill results from its recently completed program at its Erika property in Mexico, reporting high gold values over thick intervals.
All results have now been received for the company's 2010-11 diamond drill program at the site, with a total of 4,020 metres drilled.
Highlights from the new batch of results included 2.25 grams per tonne (g/t) of gold over 3.6 metres, from within a broader interval of 10.28 metres at 1.14 g/t gold, in hole ER-11-14.
Other notable assays included 3.18 metres of 1.08 g/t gold in hole ER-11-15, including 1.40 metres of 1.78 g/t gold.
The company said that significantly elevated levels of thalliium, mercury, arsenic and antimony elements show an "excellent correlation" with gold mineralization in the drill core.
"We are very encouraged with the higher gold values and thicker intervals received from the latest drill holes and continue to believe that this property has strong potential to host a significant sediment-hosted gold system," said president and CEO, Marc Blythe.
"Sediment-hosted gold systems elsewhere are known to contain significant gold resources and are a favoured style of mineralization by major gold producers.
"Future exploration at Erika will be designed to identify possible feeder structures in areas of favourable stratigraphy which we believe may host greater thicknesses and higher grades of gold mineralization.”
Tarsis is evaluating the results of the latest drill program to determine priority targets for a follow-up round of drilling, it said.
All results have now been received for the company's 2010-11 diamond drill program at the site, with a total of 4,020 metres drilled.
Highlights from the new batch of results included 2.25 grams per tonne (g/t) of gold over 3.6 metres, from within a broader interval of 10.28 metres at 1.14 g/t gold, in hole ER-11-14.
Other notable assays included 3.18 metres of 1.08 g/t gold in hole ER-11-15, including 1.40 metres of 1.78 g/t gold.
The company said that significantly elevated levels of thalliium, mercury, arsenic and antimony elements show an "excellent correlation" with gold mineralization in the drill core.
"We are very encouraged with the higher gold values and thicker intervals received from the latest drill holes and continue to believe that this property has strong potential to host a significant sediment-hosted gold system," said president and CEO, Marc Blythe.
"Sediment-hosted gold systems elsewhere are known to contain significant gold resources and are a favoured style of mineralization by major gold producers.
"Future exploration at Erika will be designed to identify possible feeder structures in areas of favourable stratigraphy which we believe may host greater thicknesses and higher grades of gold mineralization.”
Tarsis is evaluating the results of the latest drill program to determine priority targets for a follow-up round of drilling, it said.
Fission Energy receives buy rating from Dundee Capital Markets
Fission Energy Corp (CVE:FIS) received another "buy" rating on Tuesday, this time from Dundee Capital Markets, again in light of the Cameco-Hathor bid.
Dundee said it believes Fission shares are currently trading at a 19% to 29% discount, in light of the possibility of the Cameco takeover, valuing the junior uranium company between $0.84 and $0.95 per share.
Assuming Fission has the potential for between 11 and 18 million pounds of uranium, the equities research firm said it infers a project value of between $94 and $154 million for Fission's joint venture Waterbury Lake property, half of which would be attributable to Fission.
Dundee noted that Fission's J-Zone East, J-Zone and Highland zones at Waterbury are seen as a 370 metre extension to the Roughrider deposits, Hathor's (TSE:HAT) most significant assets, located in the Athabasca Basin of Saskatchewan.
"While our studies suggest that Fission's mineralization may have an average grade around 3% (much like Roughrider's initial resource estimate), Fission too has similar potential to delineate higher grade uranium resources. Its best assays measure up to 46% over 2m and 14.7% over 6m," Dundee's report said.
"We believe that ultimately the Fission property could be required in order to develop all of the Hathor mineralization -partially due to the proximity of the property boundaries to Roughrider mineralization.
"But also because it provides further mineralization to what has become the most exciting new uranium camp in the Athabasca Basin."
Including Fission's 24 million potential pounds of uranium at the Dieter Lake project iN Quebec, the firm values Fission at a range of $85 million and $121 million, which equates to $0.84 to $0.95 per share.
Dundee's report comes shortly after uranium giant, Cameco (TSE:CCO) made its hostile bid for Hathor official, making a public offer of CAD $3.75 per Hathor share. The deal is valued at $520 million.
The $3.75 per-share cash proposal was delivered in written form by Cameco to Hathor following the close of market last Friday, but Cameco, one of the world's largest uranium producers, said that it decided to make the offer announcement after discussions with Hathor failed to result in a board-supported agreement.
Hathor's Roughrider deposit is estimated to contain indicated resources of 17.2 million pounds of uranium in the west zone, plus another 40.7 million pounds of inferred resources in the east and the west zones.
The Roughrider deposit is strategically located roughly 25 kilometres northwest of Saskatoon, Saskatchewan-based Cameco's Rabbit Lake mill, making Fission, and its concessions, a target.
In addition, Fission has further upside potential up its belt, as it is not "anywhere near" finished delineating its J-Zone deposit at Waterbury, as it remains open in several directions.
"While perhaps two years behind Hathor in exploration, what is apparent is that Fission already has more strike length potential than Hathor," added Dundee.
Aside from Waterbury and Dieter Lake, Fission also holds its Patterson Lake South property, where a 5 kilometre by 900 metre long boulder field was recently discovered, with grades of up to 40% uranium.
A total of 74 cobble and boulder samples were taken, with 25 returning assays of at least 10% uranium. While Dundee said this property can not yet be properly valued, it remains a source of "excitement".
Fission's stock on the TSX-Venture Exchange rose 5.88% as of 3:49 pm EDT, at $0.72. Meanwhile, both Cameco and Hathor's stocks rose, 1.8% to $22.60 and 3.8% to $4.10, respectively.
Dundee said it believes Fission shares are currently trading at a 19% to 29% discount, in light of the possibility of the Cameco takeover, valuing the junior uranium company between $0.84 and $0.95 per share.
Assuming Fission has the potential for between 11 and 18 million pounds of uranium, the equities research firm said it infers a project value of between $94 and $154 million for Fission's joint venture Waterbury Lake property, half of which would be attributable to Fission.
Dundee noted that Fission's J-Zone East, J-Zone and Highland zones at Waterbury are seen as a 370 metre extension to the Roughrider deposits, Hathor's (TSE:HAT) most significant assets, located in the Athabasca Basin of Saskatchewan.
"While our studies suggest that Fission's mineralization may have an average grade around 3% (much like Roughrider's initial resource estimate), Fission too has similar potential to delineate higher grade uranium resources. Its best assays measure up to 46% over 2m and 14.7% over 6m," Dundee's report said.
"We believe that ultimately the Fission property could be required in order to develop all of the Hathor mineralization -partially due to the proximity of the property boundaries to Roughrider mineralization.
"But also because it provides further mineralization to what has become the most exciting new uranium camp in the Athabasca Basin."
Including Fission's 24 million potential pounds of uranium at the Dieter Lake project iN Quebec, the firm values Fission at a range of $85 million and $121 million, which equates to $0.84 to $0.95 per share.
Dundee's report comes shortly after uranium giant, Cameco (TSE:CCO) made its hostile bid for Hathor official, making a public offer of CAD $3.75 per Hathor share. The deal is valued at $520 million.
The $3.75 per-share cash proposal was delivered in written form by Cameco to Hathor following the close of market last Friday, but Cameco, one of the world's largest uranium producers, said that it decided to make the offer announcement after discussions with Hathor failed to result in a board-supported agreement.
Hathor's Roughrider deposit is estimated to contain indicated resources of 17.2 million pounds of uranium in the west zone, plus another 40.7 million pounds of inferred resources in the east and the west zones.
The Roughrider deposit is strategically located roughly 25 kilometres northwest of Saskatoon, Saskatchewan-based Cameco's Rabbit Lake mill, making Fission, and its concessions, a target.
In addition, Fission has further upside potential up its belt, as it is not "anywhere near" finished delineating its J-Zone deposit at Waterbury, as it remains open in several directions.
"While perhaps two years behind Hathor in exploration, what is apparent is that Fission already has more strike length potential than Hathor," added Dundee.
Aside from Waterbury and Dieter Lake, Fission also holds its Patterson Lake South property, where a 5 kilometre by 900 metre long boulder field was recently discovered, with grades of up to 40% uranium.
A total of 74 cobble and boulder samples were taken, with 25 returning assays of at least 10% uranium. While Dundee said this property can not yet be properly valued, it remains a source of "excitement".
Fission's stock on the TSX-Venture Exchange rose 5.88% as of 3:49 pm EDT, at $0.72. Meanwhile, both Cameco and Hathor's stocks rose, 1.8% to $22.60 and 3.8% to $4.10, respectively.
Tuesday, 30 August 2011
iSonea clinches transformative agreement with Fortune 500 Healthcare Company
iSonea (ASX:ISN) has signed a memorandum of agreement with an as yet undisclosed Fortune 500 Healthcare Company to forge a foothold into the U.S. market for the monitoring and management of asthma and other related respiratory diseases.
The deal represents a significant endorsement of the company’s flagship Wheezometer™ product for the management of asthma by one of the world’s leading healthcare companies.
The agreement came after a year of negotiations with one of the leading global companies in this disease management space.
Initially the agreement limits the partner’s market development and product distribution rights to the US market only. The parties expect to expand partnership beyond the U.S. market soon.
The company’s Clinical and Personal WheezoMeters™ are a next generation suite of products for the asthma and other related respiratory diseases.
In May, the company signed a deal with OMRON Healthcare in Japan, an $8 billion company, and a world leading manufacturer of and distributor of health care products - to distribute iSonea’s Clinical and Personal WheezoMeters™ in multiple international territories
The new MOU in the US market, provides iSonea with access to the clinical, business development and commercial expertise of two key global players.
Executive chairman of iSonea Ross Haghighat said of the agreement, “This relationship supports the company’s stated objective of partnering with market channel leaders in Japan and in the US, which together account for nearly 60% of the global expenditure in respiratory disease diagnostic and disease management, with an annual expenditure that exceeds $20B.
"We have a real opportunity to define a new standard of care based on our revolutionary wheeze rate analysis.”
Mike Thomas, the company’s newly appointed CEO said, “The relationship defined in this MOU is the culmination of nearly a year of careful negotiations with one of the leading global players in this disease management space worldwide and complements our strategy for creating a foothold in the US.
"Entering this relationship is an important endorsement of the innovative product solutions that KSX brings to the monitoring and management of asthma and other related respiratory diseases.”
In Japan, the Company expects to secure relevant approvals in calendar year 2012 that enables initial sales to commence, while in the US, it expects to launch a joint effort with its new partner to accelerate the Company’s market seeding exercise of its flagship Wheezometer® product already started in 2011.
Background
At present there is no patient-friendly, accurate, reliable device to help measure the severity of asthma when the patient needs it most. The cost to diagnose and manage asthma in the US alone was $15 billion, according to a July 2011 Wall Street Journal report.
However, despite the GINA standards, there is no patient-friendly, accurate, reliable device to help measure the severity of asthma when the patient needs it most.
Market opportunity
In excess of 500 million people worldwide are estimated to have some form of respiratory condition (with 100 million living in the developed world) and the prevalence rate is continuing to rise.
According to an American Lung Association 2009 report, asthma ranks as one of the country's top 10 prevalent conditions that limit activity and it costs billions to treat.
Asthma is a growing global malaise. Between 8 and 12 percent of the population in the developed world suffer from asthma. In the US market alone, the number of asthmatics has grown from 21 million to nearly 25 million in the past 9 years.
The prevalence of asthma is estimated to be growing in many Asian markets and its severity is often underestimated by both physicians and patients.
Often physicians have not been able to determine whether a patient coughed or wheezed at night.
Opportunity for iSonea
iSonea has developed a suite of products for asthma management, from hospital to home devices that allow patients to monitor their conditions at home and send in data for expert analysis if required.
The product addresses a respiratory market void in the tools for supervised, yet self-led management of asthma and related diseases.
iSonea's flagship Wheezometer® product is the first such product approved by the FDA as a portable handheld and inexpensive device that provides an objective measurement of wheeze (commonly exhibited by asthmatics) in less than a minute.
The technology platform known as PulmoTrack™, is a clinic based device that allows ongoing and continuous monitoring of a variety of respiratory illnesses and allows for the collection of data from personal monitoring devices including WHolter™ and WheezoMeter™.
The PulmoTrack device will be used for continuous monitoring of wheeze and cough in the hospital environment. The Wholter will be used in the home environment.
iSonea’s products can be used at a significantly cheaper price than visiting a specialist for a professional spirometry (procedure for respiratory analysis).
iSonea’s device operates using advanced signal processing algorithms that defend against false detection of ambient noise so it can deliver objective readings of wheeze presence and extent.
This is a disease management tool that clinicians have indicated provides them with a new way of assessing the patient in ways that were not possible before. The wheeze rate could not be quantified before. It was virtually impossible.
iSonea is aiming for new gold standard in asthma management
iSonea aims to meet an unmet need for accurate, low cost, easy-to-use devices to identify and quantify the presence of wheeze. Wheeze is an indication of the severity of the patient’s asthma. The only other valid alternative for the analysis and detailed diagnosis of respiratory conditions is through the use of a spirometer. With a basic model clinical spirometer typically costing in excess of A$1,500, accessibility for the great majority of sufferers is limited.
Analysis
The importance of the previous agreement with OMRON was perhaps underestimated in the market as it represented a validation of the technology and the first major landmark agreement negotiated by iSonea with a global major medical device distributor.
The new MOU agreement with the Fortune 500 Healthcare Company is even more pivotal for iSonea as it leverages the key U.S. market, and has potential to completely transform iSonea's operational future as well as add to intrinsic market valuation of the Company.
OMRON and the Fortune 500 Company would have closely examined the ISonea's suite of products. Clearly, for them to execute the agreements with iSonea, the companies must believe that the next generation products and wheeze rate analysis define a new standard of care for asthma sufferers or those suffering from other respiratory illnesses.
At a market capitalization of just $10.3 million for iSonea, this is very light for a company on the cusp of a new gold standard for a healthcare diagnostic segment that has similarities to the ascent of ResMed in its particular market. At current pace of growth, the valuation on offer is akin to bargain basement prices on a 6-12 months view.
iSonea has early stage parallels with RedMed (ASX:RMD), which also had to define a market and develop a product for a condition that had been poorly diagnosed with limited treatment and home treatment options.
The new agreement continues the renaissance of iSonea, formerly KarmelSonix. The new senior management underscores the core patented strengths and advantages of the technology vis a vis limited legacy diagnostic options for asthma and respiratory sufferers in the past.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19084/isonea-clinches-transformative-agreement-with-fortune-500-healthcare-company-19084.html
The deal represents a significant endorsement of the company’s flagship Wheezometer™ product for the management of asthma by one of the world’s leading healthcare companies.
The agreement came after a year of negotiations with one of the leading global companies in this disease management space.
Initially the agreement limits the partner’s market development and product distribution rights to the US market only. The parties expect to expand partnership beyond the U.S. market soon.
The company’s Clinical and Personal WheezoMeters™ are a next generation suite of products for the asthma and other related respiratory diseases.
In May, the company signed a deal with OMRON Healthcare in Japan, an $8 billion company, and a world leading manufacturer of and distributor of health care products - to distribute iSonea’s Clinical and Personal WheezoMeters™ in multiple international territories
The new MOU in the US market, provides iSonea with access to the clinical, business development and commercial expertise of two key global players.
Executive chairman of iSonea Ross Haghighat said of the agreement, “This relationship supports the company’s stated objective of partnering with market channel leaders in Japan and in the US, which together account for nearly 60% of the global expenditure in respiratory disease diagnostic and disease management, with an annual expenditure that exceeds $20B.
"We have a real opportunity to define a new standard of care based on our revolutionary wheeze rate analysis.”
Mike Thomas, the company’s newly appointed CEO said, “The relationship defined in this MOU is the culmination of nearly a year of careful negotiations with one of the leading global players in this disease management space worldwide and complements our strategy for creating a foothold in the US.
"Entering this relationship is an important endorsement of the innovative product solutions that KSX brings to the monitoring and management of asthma and other related respiratory diseases.”
In Japan, the Company expects to secure relevant approvals in calendar year 2012 that enables initial sales to commence, while in the US, it expects to launch a joint effort with its new partner to accelerate the Company’s market seeding exercise of its flagship Wheezometer® product already started in 2011.
Background
At present there is no patient-friendly, accurate, reliable device to help measure the severity of asthma when the patient needs it most. The cost to diagnose and manage asthma in the US alone was $15 billion, according to a July 2011 Wall Street Journal report.
However, despite the GINA standards, there is no patient-friendly, accurate, reliable device to help measure the severity of asthma when the patient needs it most.
Market opportunity
In excess of 500 million people worldwide are estimated to have some form of respiratory condition (with 100 million living in the developed world) and the prevalence rate is continuing to rise.
According to an American Lung Association 2009 report, asthma ranks as one of the country's top 10 prevalent conditions that limit activity and it costs billions to treat.
Asthma is a growing global malaise. Between 8 and 12 percent of the population in the developed world suffer from asthma. In the US market alone, the number of asthmatics has grown from 21 million to nearly 25 million in the past 9 years.
The prevalence of asthma is estimated to be growing in many Asian markets and its severity is often underestimated by both physicians and patients.
Often physicians have not been able to determine whether a patient coughed or wheezed at night.
Opportunity for iSonea
iSonea has developed a suite of products for asthma management, from hospital to home devices that allow patients to monitor their conditions at home and send in data for expert analysis if required.
The product addresses a respiratory market void in the tools for supervised, yet self-led management of asthma and related diseases.
iSonea's flagship Wheezometer® product is the first such product approved by the FDA as a portable handheld and inexpensive device that provides an objective measurement of wheeze (commonly exhibited by asthmatics) in less than a minute.
The technology platform known as PulmoTrack™, is a clinic based device that allows ongoing and continuous monitoring of a variety of respiratory illnesses and allows for the collection of data from personal monitoring devices including WHolter™ and WheezoMeter™.
The PulmoTrack device will be used for continuous monitoring of wheeze and cough in the hospital environment. The Wholter will be used in the home environment.
iSonea’s products can be used at a significantly cheaper price than visiting a specialist for a professional spirometry (procedure for respiratory analysis).
iSonea’s device operates using advanced signal processing algorithms that defend against false detection of ambient noise so it can deliver objective readings of wheeze presence and extent.
This is a disease management tool that clinicians have indicated provides them with a new way of assessing the patient in ways that were not possible before. The wheeze rate could not be quantified before. It was virtually impossible.
iSonea is aiming for new gold standard in asthma management
iSonea aims to meet an unmet need for accurate, low cost, easy-to-use devices to identify and quantify the presence of wheeze. Wheeze is an indication of the severity of the patient’s asthma. The only other valid alternative for the analysis and detailed diagnosis of respiratory conditions is through the use of a spirometer. With a basic model clinical spirometer typically costing in excess of A$1,500, accessibility for the great majority of sufferers is limited.
Analysis
The importance of the previous agreement with OMRON was perhaps underestimated in the market as it represented a validation of the technology and the first major landmark agreement negotiated by iSonea with a global major medical device distributor.
The new MOU agreement with the Fortune 500 Healthcare Company is even more pivotal for iSonea as it leverages the key U.S. market, and has potential to completely transform iSonea's operational future as well as add to intrinsic market valuation of the Company.
OMRON and the Fortune 500 Company would have closely examined the ISonea's suite of products. Clearly, for them to execute the agreements with iSonea, the companies must believe that the next generation products and wheeze rate analysis define a new standard of care for asthma sufferers or those suffering from other respiratory illnesses.
At a market capitalization of just $10.3 million for iSonea, this is very light for a company on the cusp of a new gold standard for a healthcare diagnostic segment that has similarities to the ascent of ResMed in its particular market. At current pace of growth, the valuation on offer is akin to bargain basement prices on a 6-12 months view.
iSonea has early stage parallels with RedMed (ASX:RMD), which also had to define a market and develop a product for a condition that had been poorly diagnosed with limited treatment and home treatment options.
The new agreement continues the renaissance of iSonea, formerly KarmelSonix. The new senior management underscores the core patented strengths and advantages of the technology vis a vis limited legacy diagnostic options for asthma and respiratory sufferers in the past.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19084/isonea-clinches-transformative-agreement-with-fortune-500-healthcare-company-19084.html
Kalgoorlie Mining Company becomes gold miner, earns first revenues in transformation to producer
Kalgoorlie Mining Company (ASX: KMC) has transitioned into a cash generating gold miner with the first cash flows generated from trucking and sale of ore from the Bullant Gold Mine, via a gold ore agreement with Barrick Mines' (NYSE: ABX) Australian subsidiary.
Gross revenues of around A$2.1 million have been generated from the delivery of 10,507 dry tonnes of ore to Kanowna Belle, before haulage and processing costs. Under the terms of the ore purchase Agreement, a percentage of the provisional net proceeds will be paid to the company within 14 days.
The balance will be calculated and settled upon the treatment of the gold ore through the Kanowna Belle gold processing facility - following final determinations of grade and recoveries.
The 1,241 gold ounces recovered were at an average grade of 3.95 grams per tonne (g/t), at a provisional recovery of 93%. Grades are expected to increase with the commencement of open stope mining.
The delivery of the first gold ore and subsequent revenue generation is a pivotal moment for the company as it starts to build a significant gold business based around Bullant, which is located in the north eastern goldfields of Western Australia.
Chris Daws, managing director, told Proactive Investors today that a second phase of 12,000 tonnes of ore started the deliver process yesterday, and is forecast to be completed in around right days - at the same grade as the first delivery phase.
Adding some spice to the potential of the ore agreement, Daws said that the third run to start in late September is expected to have a grade of over 5g/t gold, providing a boost to the economics of the agreement.
The ore sales to the Australian subsidiary of Barrick are expected to continue monthly until Kalgoorlie Mining commissions its own gold treatment facility onsite in 2012.
Daws added that Kalgoorlie Mining is forecast to produce gold in the June quarter of 2012, at an annual rate of 40,000 ounces per year.
Analysis
With a current market valuation of just $25 million and likely to be earning over $1.5 million per month there is a "dis-connect" between current valuation and likely 12-18 month intrinsic value. Add in the expected ramp up in production to 30,000-40,0000 ounces per annum in 2012 and the current "mis-pricing" is far greater.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19139/kalgoorlie-mining-company-becomes-gold-miner-earns-first-revenues-in-transformation-to-producer-19139.html
Gross revenues of around A$2.1 million have been generated from the delivery of 10,507 dry tonnes of ore to Kanowna Belle, before haulage and processing costs. Under the terms of the ore purchase Agreement, a percentage of the provisional net proceeds will be paid to the company within 14 days.
The balance will be calculated and settled upon the treatment of the gold ore through the Kanowna Belle gold processing facility - following final determinations of grade and recoveries.
The 1,241 gold ounces recovered were at an average grade of 3.95 grams per tonne (g/t), at a provisional recovery of 93%. Grades are expected to increase with the commencement of open stope mining.
The delivery of the first gold ore and subsequent revenue generation is a pivotal moment for the company as it starts to build a significant gold business based around Bullant, which is located in the north eastern goldfields of Western Australia.
Chris Daws, managing director, told Proactive Investors today that a second phase of 12,000 tonnes of ore started the deliver process yesterday, and is forecast to be completed in around right days - at the same grade as the first delivery phase.
Adding some spice to the potential of the ore agreement, Daws said that the third run to start in late September is expected to have a grade of over 5g/t gold, providing a boost to the economics of the agreement.
The ore sales to the Australian subsidiary of Barrick are expected to continue monthly until Kalgoorlie Mining commissions its own gold treatment facility onsite in 2012.
Daws added that Kalgoorlie Mining is forecast to produce gold in the June quarter of 2012, at an annual rate of 40,000 ounces per year.
Analysis
With a current market valuation of just $25 million and likely to be earning over $1.5 million per month there is a "dis-connect" between current valuation and likely 12-18 month intrinsic value. Add in the expected ramp up in production to 30,000-40,0000 ounces per annum in 2012 and the current "mis-pricing" is far greater.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19139/kalgoorlie-mining-company-becomes-gold-miner-earns-first-revenues-in-transformation-to-producer-19139.html
Augur Resources hits 199m at 0.46 g/t gold and copper at Wonogiri project
Augur Resources (ASX: AUK) has returned an intersection of 199.0 metres at 0.46 g/t gold and 0.13% copper from drilling from 61 metres at the Randu Kuning prospect, Wonogiri project in Central Java, confirming the extension of mineralisation along strike to the north.
Data from local geology and recent drilling indicates that the mineralisation at Randu Kuning is related to a near vertical gold-copper porphyry within a large eroded volcanic centre, possibly related to the Oligocene to Miocene volcanic arc.
Newmont's 914 million tonne at 0.53% copper and 0.40% gold operation at Batu Hijau sits on this zone, indicating similarities to Randu Kuning.
The broad gold mineralised zone was intersected in hole WDD012 using an effective 0.17 g/t gold cut off.
The zone includes a number of significant intersections including:
- 28.0 metres at 0.64 g/t gold and 0.17% copper from 80 metres depth,
- 65.0 metres at 0.59 g/t gold and 0.14% copper from 111 metres and;
- 22.0 metres at 0.43 g/t gold and 0.10% copper from 179 metres.
Hole WDD012 was drilled to test the northern extension of the mineralisation and holes WDD013 and WDD014 were drilled to test for extension of mineralisation to the south.
Hole WDD013 intercepted anomalous gold including a 0.5 metre interval of 3.32 g/t from 38.5 metres and 2.0 metres at 0.58 g/t gold from 72 metres.
Hole WDD014 was drilled up dip of the previously reported Hole WDD011 and intersected several anomalous zones of mineralisation including 1.0 metres at 0.38 g/t gold and 0.21% copper from 151 metres and a further 1.0 metre at 0.63 g/t gold from 157 metres.
The Wonogiri project lies within the Sunda-Banda arc and covers and area of 3,928 hectares. The area is considered prospective for epithermal gold and porphyry copper-gold mineralisation.
This is similar to a number of significant porphyry deposits along this zone including Newmont’s Elang deposit on the island of Sumbawa and Intrepid Mines' (ASX: IAU, TSX: IAU) Tujuh Bukit (990Mt at 0.40% copper and 0.45g/t gold) in eastern Java.
Drilling continues to test the northern extensions of mineralisation along strike of the Randu Kuning porphyry.
Preparations have commenced for a third rig to test the shallow epithermal targets in the Wonogiri North area.
Preliminary metallurgical testing has commenced on the porphyry mineralisation at Randu Kuning.
Previous exploration completed by PT Oxindo from 2009 to 2010 targeted copper porphyry mineralisation within the northern portion of the licence.
PT Oxindo undertook detailed mapping, soil sampling and geophysical work which culminated in a five hole diamond drill program to test a number of modelled magnetic high bodies.
Augur has an agreement to earn a 51% interest of the project after the expenditure of US$1.5 million within 12 months from 15 December 2010 and can earn an 80% interest in the project with the expenditure of a further US$2.0 million with 24 months of 15 December 2010. No upfront payment or issue of shares was required.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19138/augur-resources-hits-199m-at-046-gt-gold-and-copper-at-wonogiri-project-19138.html
Data from local geology and recent drilling indicates that the mineralisation at Randu Kuning is related to a near vertical gold-copper porphyry within a large eroded volcanic centre, possibly related to the Oligocene to Miocene volcanic arc.
Newmont's 914 million tonne at 0.53% copper and 0.40% gold operation at Batu Hijau sits on this zone, indicating similarities to Randu Kuning.
The broad gold mineralised zone was intersected in hole WDD012 using an effective 0.17 g/t gold cut off.
The zone includes a number of significant intersections including:
- 28.0 metres at 0.64 g/t gold and 0.17% copper from 80 metres depth,
- 65.0 metres at 0.59 g/t gold and 0.14% copper from 111 metres and;
- 22.0 metres at 0.43 g/t gold and 0.10% copper from 179 metres.
Hole WDD012 was drilled to test the northern extension of the mineralisation and holes WDD013 and WDD014 were drilled to test for extension of mineralisation to the south.
Hole WDD013 intercepted anomalous gold including a 0.5 metre interval of 3.32 g/t from 38.5 metres and 2.0 metres at 0.58 g/t gold from 72 metres.
Hole WDD014 was drilled up dip of the previously reported Hole WDD011 and intersected several anomalous zones of mineralisation including 1.0 metres at 0.38 g/t gold and 0.21% copper from 151 metres and a further 1.0 metre at 0.63 g/t gold from 157 metres.
The Wonogiri project lies within the Sunda-Banda arc and covers and area of 3,928 hectares. The area is considered prospective for epithermal gold and porphyry copper-gold mineralisation.
This is similar to a number of significant porphyry deposits along this zone including Newmont’s Elang deposit on the island of Sumbawa and Intrepid Mines' (ASX: IAU, TSX: IAU) Tujuh Bukit (990Mt at 0.40% copper and 0.45g/t gold) in eastern Java.
Drilling continues to test the northern extensions of mineralisation along strike of the Randu Kuning porphyry.
Preparations have commenced for a third rig to test the shallow epithermal targets in the Wonogiri North area.
Preliminary metallurgical testing has commenced on the porphyry mineralisation at Randu Kuning.
Previous exploration completed by PT Oxindo from 2009 to 2010 targeted copper porphyry mineralisation within the northern portion of the licence.
PT Oxindo undertook detailed mapping, soil sampling and geophysical work which culminated in a five hole diamond drill program to test a number of modelled magnetic high bodies.
Augur has an agreement to earn a 51% interest of the project after the expenditure of US$1.5 million within 12 months from 15 December 2010 and can earn an 80% interest in the project with the expenditure of a further US$2.0 million with 24 months of 15 December 2010. No upfront payment or issue of shares was required.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19138/augur-resources-hits-199m-at-046-gt-gold-and-copper-at-wonogiri-project-19138.html
Kentor Gold delivers 6m at 3.18% copper from exploratory drilling at Jervois
Kentor Gold (ASX: KGL) has intersected some encouraging results north of the known resources at the Bellbird prospect, and south of those at Bellbird North, which are hosted within the Jervois project in the Northern Territory of Australia.
The highlight from reverse circulation drilling was; 6 metres at 3.18% copper, 23.55 grams per tonne (g/t) silver and 0.45g/t gold from 59 metres.
Most importantly for the prospectivity of the project - this intersection was from exploratory drilling.
Simon Milroy, managing director, told Proactive Investors today that the significance of the results is that they provide the company with a new area at the project to explore with deeper drilling.
"The copper hit is not into a known orebody, and therefore has the potential to be the beginning of a new mineralised system.
"The company is currently undertaking deeper diamond drilling into known ore bodies, with the last of the drilling to finish in the second week of September."
In total there is around 1800 metres of diamond drilling results pending from several prospects at Jervois, including Green Parrot, which are expected by the end of September - providing an anticipated news flow for the company in the short term.
Jervois JORC Resource
The maiden Inferred Resource at Jervois announced in July was; 8.8 million tonnes at 1.3% copper and 26.7g/t silver.
Hellman & Schofield conducted the review, which provides 113,000 tonnes of contained copper and 7.6 million ounces of contained silver.
Kentor is also studying the feasibility at Jervois of developing a large, high grade copper silver resource, with the potential of producing gold and base metals.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19137/kentor-gold-delivers-6m-at-318-copper-from-exploratory-drilling-at-jervois-19137.html
The highlight from reverse circulation drilling was; 6 metres at 3.18% copper, 23.55 grams per tonne (g/t) silver and 0.45g/t gold from 59 metres.
Most importantly for the prospectivity of the project - this intersection was from exploratory drilling.
Simon Milroy, managing director, told Proactive Investors today that the significance of the results is that they provide the company with a new area at the project to explore with deeper drilling.
"The copper hit is not into a known orebody, and therefore has the potential to be the beginning of a new mineralised system.
"The company is currently undertaking deeper diamond drilling into known ore bodies, with the last of the drilling to finish in the second week of September."
In total there is around 1800 metres of diamond drilling results pending from several prospects at Jervois, including Green Parrot, which are expected by the end of September - providing an anticipated news flow for the company in the short term.
Jervois JORC Resource
The maiden Inferred Resource at Jervois announced in July was; 8.8 million tonnes at 1.3% copper and 26.7g/t silver.
Hellman & Schofield conducted the review, which provides 113,000 tonnes of contained copper and 7.6 million ounces of contained silver.
Kentor is also studying the feasibility at Jervois of developing a large, high grade copper silver resource, with the potential of producing gold and base metals.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19137/kentor-gold-delivers-6m-at-318-copper-from-exploratory-drilling-at-jervois-19137.html
Universal Coal acquires 50% stake in South African coking coal asset
Universal Coal (ASX: UNV) has secured the Donkin licence area, adjacent to the Somerville coking coal project in the Limpopo Province of South Africa, on a farm-in basis.
Based on historical drilling data, the farm Donkin 72MS property has a Inferred JORC Resource of 42.4 million tonnes, covering the northern extent of a farm area of 1,178 hectares, with the potential for coking coal and open pit access.
Historical data shows a coal zone of up to 20 metres thick present on the northern section of the property. The company anticipates the depth to the coal zone as being between 20-70 metres.
Dr Tony Harwood, chairman, said "we are delighted to have secured an additional farm-in agreement to achieve a 50% shareholding of the Donkin property. This is in line with Universal’s strategy of consolidating key areas surrounding all our project areas.”
Terms of the farm-in agreement are as follows:
- UNV receives an effective 15% ownership upon completion of legal and technical due diligence, once Board approvals are granted.
- UNV will achieve a further;
- 10 % upon confirming the Inferred Coal Resources (25%).
- 10 % on Indicated Coal resources (35%)
- 15% on Measured Coal Resources (50%)
- UNV has a three year period to achieve the above.
At the Berenice-Cygnus Coking Coal project Universal is currently undertaking detailed analysis of samples obtained from the large diameter drill holes on the property to define the detailed coking coal and coke characteristics.
The company expects to receive the results of these tests and analyses in October this year, where-upon Universal will proceed with a Scoping Study and an aggressive Phase 2 drill-out of the deposit to a Measured JORC category.
Universal anticipates that a resource upgrade will be announced shortly. In July the company announced a 1.2 billion tonne JORC coking coal resource at the Berenice-Cygnus Project.
Universal will also be providing an update on its Kangala Thermal coal project in October this year which will include development and production targets following conclusion of the optimization study currently being undertaken.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19135/universal-coal-acquires-50-stake-in-south-african-coking-coal-asset-19135.html
Based on historical drilling data, the farm Donkin 72MS property has a Inferred JORC Resource of 42.4 million tonnes, covering the northern extent of a farm area of 1,178 hectares, with the potential for coking coal and open pit access.
Historical data shows a coal zone of up to 20 metres thick present on the northern section of the property. The company anticipates the depth to the coal zone as being between 20-70 metres.
Dr Tony Harwood, chairman, said "we are delighted to have secured an additional farm-in agreement to achieve a 50% shareholding of the Donkin property. This is in line with Universal’s strategy of consolidating key areas surrounding all our project areas.”
Terms of the farm-in agreement are as follows:
- UNV receives an effective 15% ownership upon completion of legal and technical due diligence, once Board approvals are granted.
- UNV will achieve a further;
- 10 % upon confirming the Inferred Coal Resources (25%).
- 10 % on Indicated Coal resources (35%)
- 15% on Measured Coal Resources (50%)
- UNV has a three year period to achieve the above.
At the Berenice-Cygnus Coking Coal project Universal is currently undertaking detailed analysis of samples obtained from the large diameter drill holes on the property to define the detailed coking coal and coke characteristics.
The company expects to receive the results of these tests and analyses in October this year, where-upon Universal will proceed with a Scoping Study and an aggressive Phase 2 drill-out of the deposit to a Measured JORC category.
Universal anticipates that a resource upgrade will be announced shortly. In July the company announced a 1.2 billion tonne JORC coking coal resource at the Berenice-Cygnus Project.
Universal will also be providing an update on its Kangala Thermal coal project in October this year which will include development and production targets following conclusion of the optimization study currently being undertaken.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19135/universal-coal-acquires-50-stake-in-south-african-coking-coal-asset-19135.html
Gryphon Minerals moves step closer to becoming first Australian gold producer in Burkina Faso
Gryphon Minerals (ASX:GRY) has received a boost with independent engineering studies by Lycopodium highlighting Gryphon could be producing over 180,000 ounces of gold at Banfora Gold Project at a cash cost of US$430 per ounce by 2014.
The completion of a positive independent preliminary open pit engineering assessment is based on a 2.5 million tonne per annum open pit mining operation using a conventional carbon in leach processing plant.
The company is moving closer to its goal of becoming a significant West African gold producer and the first Australian gold mining company in Burkina Faso.
Gryphon is not resting on its laurels with detailed feasibility studies expected to be completed by mid 2012, as well as continuing to maintain an aggressive A$30 million exploration program , with further resource growth anticipated during the 2011/12 financial year.
Gryphon will now begin detailed feasibility studies on a +3.5 million tonne per annum (Mtpa) operation with potential +200,000 ounces per annum (oz pa) gold production.
Steve Parsons, Gryphon Managing director, said "we are extremely pleased with the excellent results received from this independent engineering study, it has ticked some of the big boxes and provides a clear path for Gryphon to move immediately into detailed feasibility studies."
"Among the highlights from the studies are the outstanding metallurgical recoveries of 93% using a coarse grind, 65% conversion of resources to in-pit mineral inventory, cash costs well below industry peers and a head grade of more than two grams per tonne of gold."
Based on the 2.5mtpa operation, forecast production is for +180,000oz per annum, at +2.6 grams per tonne 9g/t) gold and
There have been outstanding metallurgical recoveries of 93% gold using a coarse grind (96% for oxide mineralisation and 91% for primary/sulphide mineralisation)
There is excellent infrastructure including access to surplus water, existing telecommunications facilities, roads, site locations for processing plant, dam and tailings and anticipated use of grid power.
The company anticipates permitting and construction in late 2012 with first gold poured in early 2014.
In addition the company has strong Government and local community support and had A$50.4 million cash in bank at the end of the June quarter.
With results including 8 metres at 38.75g/t gold from 68 metres from the aggressive $30 million exploration program underway at Banfora, the company's current valuation could still be on the low side within 12-18 months - given Gryphon's outstanding exploration track record in West Africa.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19133/gryphon-minerals-moves-step-closer-to-becoming-first-australian-gold-producer-in-burkina-faso--19133.html
The completion of a positive independent preliminary open pit engineering assessment is based on a 2.5 million tonne per annum open pit mining operation using a conventional carbon in leach processing plant.
The company is moving closer to its goal of becoming a significant West African gold producer and the first Australian gold mining company in Burkina Faso.
Gryphon is not resting on its laurels with detailed feasibility studies expected to be completed by mid 2012, as well as continuing to maintain an aggressive A$30 million exploration program , with further resource growth anticipated during the 2011/12 financial year.
Gryphon will now begin detailed feasibility studies on a +3.5 million tonne per annum (Mtpa) operation with potential +200,000 ounces per annum (oz pa) gold production.
Steve Parsons, Gryphon Managing director, said "we are extremely pleased with the excellent results received from this independent engineering study, it has ticked some of the big boxes and provides a clear path for Gryphon to move immediately into detailed feasibility studies."
"Among the highlights from the studies are the outstanding metallurgical recoveries of 93% using a coarse grind, 65% conversion of resources to in-pit mineral inventory, cash costs well below industry peers and a head grade of more than two grams per tonne of gold."
Based on the 2.5mtpa operation, forecast production is for +180,000oz per annum, at +2.6 grams per tonne 9g/t) gold and
There have been outstanding metallurgical recoveries of 93% gold using a coarse grind (96% for oxide mineralisation and 91% for primary/sulphide mineralisation)
There is excellent infrastructure including access to surplus water, existing telecommunications facilities, roads, site locations for processing plant, dam and tailings and anticipated use of grid power.
The company anticipates permitting and construction in late 2012 with first gold poured in early 2014.
In addition the company has strong Government and local community support and had A$50.4 million cash in bank at the end of the June quarter.
With results including 8 metres at 38.75g/t gold from 68 metres from the aggressive $30 million exploration program underway at Banfora, the company's current valuation could still be on the low side within 12-18 months - given Gryphon's outstanding exploration track record in West Africa.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19133/gryphon-minerals-moves-step-closer-to-becoming-first-australian-gold-producer-in-burkina-faso--19133.html
Dragon Mining unleashes spectacular 45.80m at 32.96g/t gold intercept at Kuusamo in Finland
Dragon Mining (ASX: DRA) has delivered a broad bonanza gold intersection at the Kuusamo gold project in Finland, with the company's aggressive exploration program paying dividends.
The latest highlight is 45.80 metres at 32.96 grams per tonne (g/t) gold from 133 metres.
Boosting the intersection even further is the inclusion of other mineralisation, being; elevated levels of cobalt (1,119ppm), copper (1,109ppm) and total rare earth oxides (266ppm).
Dragon said that the result has confirmed the widths of the mineralised zone in the area, and has returned grades commensurate with the bonanza grades obtained in historic drill hole KS/JS-21, immediately down-dip.
Todays's bonanza intersection was from an in-fill hole and is part of the 14 hole, phase 4 campaign.
This campaign is designed to test the strike and depth extensions of the identified lodes in the northern portion of the Juomasuo deposit.
Exploration continues
Drilling continues at Juomasuo with two rigs advancing the 17 hole, phase 5 campaign, which is testing the strike and depth extensions of mineralised units in the southern portion of the deposit.
The program is also evaluating the extent and geometry of mineralisation in the eastern area.
This follows up on a high grade intercept announced two weeks ago of 25.60 metres at 9.66g/t gold from 59.55 metres.
A third rig is drilling a 7 hole, 1,000 metre campaign at the Pohjasvaara deposit, 1,400 metres southeast of Juomasuo.
Juomasuo bonanza historic hits
In outlining the potential of the Juomasuo gold deposit, it is also worth reviewing some historic bonanza grade strikes.
These include:
- 19.20 metres at 179.52g/t gold;
- 3.70 metres at 426.98g/t gold;
- 19.60 metres at 63.70g/t gold;
- 4.12 metres at 265.50g/t gold; and
- 8.00 metres at 48.85g/t gold.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19132/dragon-mining-unleashes-spectacular-4580m-at-3296gt-gold-intercept-at-kuusamo-in-finland-19132.html
The latest highlight is 45.80 metres at 32.96 grams per tonne (g/t) gold from 133 metres.
Boosting the intersection even further is the inclusion of other mineralisation, being; elevated levels of cobalt (1,119ppm), copper (1,109ppm) and total rare earth oxides (266ppm).
Dragon said that the result has confirmed the widths of the mineralised zone in the area, and has returned grades commensurate with the bonanza grades obtained in historic drill hole KS/JS-21, immediately down-dip.
Todays's bonanza intersection was from an in-fill hole and is part of the 14 hole, phase 4 campaign.
This campaign is designed to test the strike and depth extensions of the identified lodes in the northern portion of the Juomasuo deposit.
Exploration continues
Drilling continues at Juomasuo with two rigs advancing the 17 hole, phase 5 campaign, which is testing the strike and depth extensions of mineralised units in the southern portion of the deposit.
The program is also evaluating the extent and geometry of mineralisation in the eastern area.
This follows up on a high grade intercept announced two weeks ago of 25.60 metres at 9.66g/t gold from 59.55 metres.
A third rig is drilling a 7 hole, 1,000 metre campaign at the Pohjasvaara deposit, 1,400 metres southeast of Juomasuo.
Juomasuo bonanza historic hits
In outlining the potential of the Juomasuo gold deposit, it is also worth reviewing some historic bonanza grade strikes.
These include:
- 19.20 metres at 179.52g/t gold;
- 3.70 metres at 426.98g/t gold;
- 19.60 metres at 63.70g/t gold;
- 4.12 metres at 265.50g/t gold; and
- 8.00 metres at 48.85g/t gold.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19132/dragon-mining-unleashes-spectacular-4580m-at-3296gt-gold-intercept-at-kuusamo-in-finland-19132.html
Ventnor Resources: maiden high grade copper resource in the making
The dream run for newly listed Ventnor Resources continues with further spectacular copper intersections from the flagship Thaduna and Green Dragon Prospects situated 40 kilometres east of Sandfire Resources' (ASX:SFR) DeGrussa Project (14.6Mt @ 4.6%, 1.6 g/t gold).
This follows hot on the heels of high grade copper-oxide intersections from Sipa Resources Ltd (ASX: SRI) at the nearby Enigma Copper Deposit (Thaduna Copper Project, ASX Announcement, 19/8/2011). It appears the region is turning into a copper province.
The Thaduna Prospect returned high grade intersections including;
- 5 metres @ 4.2% Cu from 30 metres downhole and
- 3 metres @ 4.5% Cu from 121 metres downhole.
Significantly the last phase of RC drilling also extended the strike length of the known copper mineralisation along strike to the north. Mineralisation remains open along strike and at depth. Similarly at Green Dragon, the second phase of RC drilling returned numerous potentially ore grade intercepts including;
- 2 metres @ 9% Cu from 85 metres downhole and
- 12 metres @ 5.1% Cu from 80 metres downhole.
Aside from the high-grade copper intercepts this campaign also identified previously undetected mineralisation in both the hanging and footwalls.
Proactive Investors considers that these projects are shaping up to be high-grade open pittable copper deposits consisting of multiple shoots up to 15 metres in thickness. The proximity to DeGrussa suggests potential for a toll treat operation, or if results continue, a stand-alone operation providing contained copper exceeds 150,000-200,000 tonnes.
An impressive start given the Company has only drilled approximately 8,000 metres for what Proactive Investors considers has outlined somewhere in the vicinity of 50,000 tonnes of contained copper.
The Company is currently planning 8,000-12,000 metre RC drilling program, supplemented with 1,000 metres of diamond drilling which will incorporate some metallurgical testwork. Pending the outcome of this program, it is anticipated that the Company will commence environmental and ground water studies ahead of a Scoping Study on Thaduna and Green Dragon.
Our peer analysis indicates a target price of 42 cents per share immediately on the basis of our target JORC Resource of 50,000 tonnes of contained copper with a target of 80 cents within 12 months based on JORC resources of 100,000 tonnes of contained copper. This may well surprise on the upside.
INVESTMENT CASE
Exceptional Targets: Recent RC drilling at Thaduna and Green Dragon have confirmed their potential to host high-grade potentially economic copper mineralisation that may be suitable for either toll treat (to DeGrussa) or a stand-alone operation. Proactive Investors believes a maiden JORC Resource in excess of 75Kt of contained copper is likely this calendar year.
Known Geology: Given that both Thaduna (30,290 tonnes @ 8.7% Cu) and Green Dragon are both historical mines with untested intersections at depth, the opportunity presented Ventnor Resources with a walk up start. Given the mines are broadly located on the same structure as DeGrussa, exploration can be targeted towards known mineralising structures.
Undervalued: We consider there is immediate upside to +40 cents per share (based on 50Kt of contained Cu) with a 12 month target of 80 cents per share (based on 100Kt of contained Cu) based on our peer comparison
Drilling Imminent: Ventnor Resources is gearing up for an aggressive 8,000-12,000 metre RC and 1,000 metre Diamond drilling program which has an excellent probability of further extensions at Thaduna and Green Dragon both along strike and down dip. Environmental and water studies are also likely to commence as a precursor to a Scoping Study.
Why Doolgunna-Goodin Dome Region? The 2009 discovery of DeGrussa which now stands at 14.6Mt @ 4.6% copper and 1.6 g/t gold for approximately 800,000 tonnes of Copper (equiv) provides investors with around A$6.70 Billion reasons to look for more! Enough said!
Directors & Management: The Company is well placed to gain maximum leverage from this exciting discovery. Managing Director Bruce Maluish has 30 years mining and mineral exploration experience.
COMPANY OVERVIEW
Ventnor Resources was listed on ASX in March 2011 with a focus on copper at Thaduna/Green Dragon (Copper), nickel at Warrawanda and Nickel Hills (Pilbara, Western Australia) and base metals and gold in the Georgina Basin (Mount Isa region, Queensland). Figure 1 sets out the Company’s tenement portfolio.
Since listing, the Company has enjoyed remarkable success with its first two phases of drilling at the flagship Green Dragon/Thaduna Projects. Proactive Investors considers a maiden resource in excess of 50K tonnes of contained copper is possible this calendar year
EXPLORATION OVERVIEW: Thaduna and Green Dragon Projects
Location and Access
The abandoned 700 metre long, 80 metre wide Thaduna Copper Mine (Figure 2) is situated approximately 40 kilometres west of Sandfire Resources’ DeGrussa Project (14.6 Mt @ 4.6% Cu, 1.6 g/t Au) and is accessed from the Great Northern Highway by a dirt road for approximately 35km, and then by tracks for another 12km.
The 330 metre long, 70 metre wide Green Dragon Prospect is located just 5 kilometres north of Thaduna.
Previous Exploration and Mining
Thaduna produced 30,290 tonnes @ 8.7% Cu and has stockpiles of 48,400 tonnes @ 2.7% Cu and tailings of 20,500 tonnes @ 2.5% Cu. The nearby Green Dragon (Figure 3) project was operated as a satellite deposit at the same time as Thaduna. In addition, the Ricci Lee copper mine, 3km south-southwest of the Thaduna Mine, was worked from 1942 to 1970 for a production of 2,912 tonnes of ore and concentrates containing 287 tonnes of copper. The Rooney Mine, 5km north-northwest of Thaduna, produced a small tonnage of cupreous ore, approximately 110 tonnes @ 7.7% Cu from small underground workings and a 3-m-deep pit.
Open cut mining and limited underground mining took place from 1955 to 1971.
Reconnaissance exploration during the 1970’s was successful in outlining three copper-anomalous close to the two mines. Successive phases of Diamond drilling in the mid 1960’s and in the late 1980’s/early 1990’s were intersected relatively narrow copper mineralisation beneath the Thaduna and Green Dragon open pit including a best intercept of 9 metres downhole @ 5.22% Cu.
Limited metallurgical testwork in 1993 showed relatively poor flotation tests but encouraging heap leach results with more than 80% of the Cu recoverable over a 70-100 day leach.
Geology and Mineralisation
Mineralisation at Thaduna/Green Dragon comprises high-grade, shear hosted shoots and lower-grade disseminated mineralisation up to 20 metres wide in places. Strong alteration zones of chlorite (after hematite) introduced by hydrothermal fluids envelope the mineralisation. The mineralisation is totally oxidised to a depth of around 50 metres. Secondary copper minerals include chrysocolla, malachite, azurite and cuprite with a supergene zone to 90 metres vertical depth containing chalcocite and lesser covellite. Chalcopyrite and bornite are the dominant copper bearing minerals in the primary zone.
The controlling structures appear to be two graphitic shears trending 90° and 60° which are mineralised with cuprite-chalcocite-malachite at their intersection and form a 50 metre long shoot striking broadly east-west. Two other sub-parallel shoots returned elevated copper from drilling with widths ranging from 0.5-5.2 metres. Supergene mineralisation is found to a vertical depth of 53m.
Recent Exploration
Since listing earlier this year, the Company has drilled just over 8,000 metres of RC at Thaduna and Green Dragon with a view to following up historical high-grade drill intercepts. This latest phase of RC drilling by Ventnor Resources has extended mineralisation both along strike and down dip in addition to identifying multiple lodes which have the potential to significantly enhance the resource and in turn the project economics of the deposit
Thaduna
Highlights from the 2Q 2011 RC program which targeted historic intercepts (including 10 metres @ 5.4% Cu from 97 metres) included;
The second phase - 44 hole, 5,432 metre program tested a 1.5 kilometre strike length to a depth of 150 metres. Over 21 holes returned high grade intercepts (+1% Cu over +2 metres) with better results including;
In particular the northernmost section on section 7176540mN is 130 metres north of the existing Thaduna pit with two holes (THRC013 with 4 metres downhole @ 3.5% Cu and THRC021 with 5 metres downhole @ 4.2% Cu) intersecting shallow mineralisation which remains open up and down dip.
THRC 041 is the deepest drillhole at Thaduna at 250 metres down hole (around 190 metres vertical depth), and all mineralised lodes appear to be open both up and down dip as well as along strike to the north.
Green Dragon
The recent program tested a strike length of 500 metres to a depth of up to 130 metres with 26 holes for 3,020 metres. 16 RC holes intersected high-grade mineralisation (>1% Cu) with generally good continuity between sections-an observation that has only now become apparent. The highlight of this phase was the intersection of multiple zones of mineralisation that remain open to the north, south, and up and down dip along the known trace of mineralisation.
Another interesting point is the intersection of an additional high-grade footwall zone which brings the total mineralised zones to three. A further zone has also been intersected on 774900mE and will be the subject of follow up drilling over the next few months. The shallow orientation also brings recently identified footwall zones into play with potential to add significantly to a JORC Resource.
The highest grades were intercepted below 774940mE with four holes, GDRC004, 020, 021, 025, intersecting three zones with the highest grades situated on the main lode and footwall positions. Holes GDRC021 and 025 intersected higher grades on the footwall zone.
OTHER PROJECTS
Warrawanda Nickel Project (Pilbara, Western Australia): The project is located approximately 40km south of Newman and is prospective for nickel-cobalt laterites, chrome and nickel sulphide mineralisation (Mt Keith style) and comprises an apparent 17km of lightly tested ultramafic rocks.
The Warrawanda South Greenstone Belt, which hosts the Warrawanda Project, is a 30-km-long, 200-800m-wide, easterly trending ultramafic body with in excess of 70 drill intersections >0.2% Ni in laterite.
Results from a recent 2,800 metre RC drill program targeting EM and magnetic anomalies over the Warrawanda and Nickel Hills prospects is anticipated shortly. The program was targeting large-tonnage, low-grade disseminated sulphide Ni deposits.
Nickel Hills Project (Pilbara, Western Australia): Situated just 8 kilometres north of Warrawanda, the project comprises two Exploration Licenses covering around 82km2. Pacminex explored Nickel Hills in the early 1970s and three copper anomalies were identified. This included limited drilling over the ultramafic intrusion contact. One hole was reported to contain the nickel sulphides violarite, millerite and heazelwoodite.
The Warrawanda North Greenstone Belt which hosts the Nickel Hills Project consists of an east-trending BIF, shale, schistose amphibolite and serpentinite. The tenements are mostly underlain by ultramafic lithologies. Drilling in the 1970s Pacminex reported nickel sulphide intercepts. The target is an ultramafic-mafic contact interpreted to be the base of a thick ultramafic volcanic flow. SRK have also confirmed the presence of gossanous sulphide float at surface. It is likely that the Company will commence exploration over previously identified high- grade zones in the coming quarter.
Georgina Basin (Mount Isa Region, Queensland): The Project is situated approximately 200 kilometres southwest of Mount Isa, a world class Ag-Pb-Zn, iron-oxide copper-gold (“IOCGU”) and massive sulphide province. Ventnor Resources’ tenements have no outcrop of prospective rocks of the Mount Isa Inlier with the Proterozoic sequences covered by post-Proterozoic sedimentary basins. Geophysical surveys in 2008 highlighted several magnetic and gravity features broadly consistent with a concealed IOCG model.
RISK ANALYSIS
We have excluded ASX listed companies such as OZ Mining Limited, PanAust Limited, Anvil Mining Limited and Aditya Birla Minerals Ltd as they are currently in production and not directly comparable to Ventnor Resources situation. We have however incorporated (Figure 17, Table 1) companies such as Sandfire Resources (ASX: SFR), CuDeco Limited (ASX: CDU), Haviliah Resources Limited (ASX: HAV), Hillgrove Resources Limited (ASX: HGO), Rex Minerals Limited (ASX: RXM), Discovery Metals (ASX: DML) Altona Mining (ASX: AOH) which are still in the exploration, feasibility study or pre-development phase. We have also taken into consideration the recent trade sale by Exxco Resources Ltd (ASX: EXM) of the Cloncurry Copper Project for A$175 million which valued the 630Kt of copper (Equiv) at around A$275/tonne. We also anticipate Voyager mineral (market capitalisation A$130 million) to come out with a high-grade copper resource shortly from its KM Porphyry Copper Project in Brazil shortly.
Ventnor certainly looks cheap on EV/Resource multiples, however resource growth may be somewhat less rapid than DeGrussa (Sandfire) for example.
We derive a peer group average enterprise value per resource tonne contained copper of $490/tonne, with the higher grade deposits such as Sandfire Resources and Discovery Metals attracting a premium. In contrast, lower grad/larger tonnage deposits such as Intrepid Mines Tuju Bukit deposit (990Mt @ 0.40% Cu) have been discounted by the market.
On this basis, and upon initiation of a scoping study, applying our average EV metric of $490, we derive an enterprise value of around A$25 million or around A$0.42 representing an approximate premium to the current share price of 91%. We anticipate that the maiden resource may well be in excess of 100,000 of contained copper which would equate to a Ventnor Resources share price approaching A$0.80 based on similar metrics. Clearly a resource approaching 150,000-200,000 tonnes of copper would push valuations higher as this is the approximate tonnage required to justify a stand-alone operation.
Disclaimer / Disclosure
This report was produced by Proactive Investors Pty Ltd, which is a Corporate Authorised Representative of RM Capital Pty Ltd (AFSL 221938). Proactive Investors received a fee for the compilation and distribution of the research report. Proactive Investors has made every effort to ensure that the information and material contained in this report is accurate and correct and has been obtained from reliable sources. However, no representation is made about the accuracy or completeness of the information and material and it should not be relied upon as a substitute for the exercise of independent judgment. Except to the extent required by law, Proactive Investors does not accept any liability, including negligence, for any loss or damage arising from the use of, or reliance on, the material contained in this report. This report is for information purposes only and is not intended as an offer or solicitation with respect to the sale or purchase of any securities. The securities recommended by Proactive Investors carry no guarantee with respect to return of capital or the market value of those securities. There are general risks associated with any investment in securities. Investors should be aware that these risks might result in loss of income and capital invested. Neither Proactive Investors nor any of its associates guarantees the repayment of capital.
WARNING: This report is intended to provide general financial product advice only. It has been prepared without having regarded to or taking into account any particular investor’s objectives, financial situation and/or needs. Accordingly, no recipients should rely on any recommendation (whether express or implied) contained in this document without obtaining specific advice from their advisers. All investors should therefore consider the appropriateness of the advice, in light of their own objectives, financial situation and/or needs, before acting on the advice. Where applicable, investors should obtain a copy of and consider the product disclosure statement for that product (if any) before making any decision.
DISCLOSURE: Proactive Investors and/or its directors, associates, employees or representatives may not effect a transaction upon its or their own account in the investments referred to in this report or any related investment until the expiry of 24 hours after the report has been published. Additionally, Proactive Investors may have, within the previous twelve months, provided advice or financial services to the companies mentioned in this report. As at the date of this report, the directors, associates, employees, representatives or Authorised Representatives of Proactive Investors and RM Capital may hold shares in Ventnor Resources Limited.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19068/ventnor-resources-maiden-high-grade-copper-resource-in-the-making-19068.html
This follows hot on the heels of high grade copper-oxide intersections from Sipa Resources Ltd (ASX: SRI) at the nearby Enigma Copper Deposit (Thaduna Copper Project, ASX Announcement, 19/8/2011). It appears the region is turning into a copper province.
The Thaduna Prospect returned high grade intersections including;
- 5 metres @ 4.2% Cu from 30 metres downhole and
- 3 metres @ 4.5% Cu from 121 metres downhole.
Significantly the last phase of RC drilling also extended the strike length of the known copper mineralisation along strike to the north. Mineralisation remains open along strike and at depth. Similarly at Green Dragon, the second phase of RC drilling returned numerous potentially ore grade intercepts including;
- 2 metres @ 9% Cu from 85 metres downhole and
- 12 metres @ 5.1% Cu from 80 metres downhole.
Aside from the high-grade copper intercepts this campaign also identified previously undetected mineralisation in both the hanging and footwalls.
Proactive Investors considers that these projects are shaping up to be high-grade open pittable copper deposits consisting of multiple shoots up to 15 metres in thickness. The proximity to DeGrussa suggests potential for a toll treat operation, or if results continue, a stand-alone operation providing contained copper exceeds 150,000-200,000 tonnes.
An impressive start given the Company has only drilled approximately 8,000 metres for what Proactive Investors considers has outlined somewhere in the vicinity of 50,000 tonnes of contained copper.
The Company is currently planning 8,000-12,000 metre RC drilling program, supplemented with 1,000 metres of diamond drilling which will incorporate some metallurgical testwork. Pending the outcome of this program, it is anticipated that the Company will commence environmental and ground water studies ahead of a Scoping Study on Thaduna and Green Dragon.
Our peer analysis indicates a target price of 42 cents per share immediately on the basis of our target JORC Resource of 50,000 tonnes of contained copper with a target of 80 cents within 12 months based on JORC resources of 100,000 tonnes of contained copper. This may well surprise on the upside.
INVESTMENT CASE
Exceptional Targets: Recent RC drilling at Thaduna and Green Dragon have confirmed their potential to host high-grade potentially economic copper mineralisation that may be suitable for either toll treat (to DeGrussa) or a stand-alone operation. Proactive Investors believes a maiden JORC Resource in excess of 75Kt of contained copper is likely this calendar year.
Known Geology: Given that both Thaduna (30,290 tonnes @ 8.7% Cu) and Green Dragon are both historical mines with untested intersections at depth, the opportunity presented Ventnor Resources with a walk up start. Given the mines are broadly located on the same structure as DeGrussa, exploration can be targeted towards known mineralising structures.
Undervalued: We consider there is immediate upside to +40 cents per share (based on 50Kt of contained Cu) with a 12 month target of 80 cents per share (based on 100Kt of contained Cu) based on our peer comparison
Drilling Imminent: Ventnor Resources is gearing up for an aggressive 8,000-12,000 metre RC and 1,000 metre Diamond drilling program which has an excellent probability of further extensions at Thaduna and Green Dragon both along strike and down dip. Environmental and water studies are also likely to commence as a precursor to a Scoping Study.
Why Doolgunna-Goodin Dome Region? The 2009 discovery of DeGrussa which now stands at 14.6Mt @ 4.6% copper and 1.6 g/t gold for approximately 800,000 tonnes of Copper (equiv) provides investors with around A$6.70 Billion reasons to look for more! Enough said!
Directors & Management: The Company is well placed to gain maximum leverage from this exciting discovery. Managing Director Bruce Maluish has 30 years mining and mineral exploration experience.
COMPANY OVERVIEW
Since listing, the Company has enjoyed remarkable success with its first two phases of drilling at the flagship Green Dragon/Thaduna Projects. Proactive Investors considers a maiden resource in excess of 50K tonnes of contained copper is possible this calendar year
EXPLORATION OVERVIEW: Thaduna and Green Dragon Projects
Location and Access
The 330 metre long, 70 metre wide Green Dragon Prospect is located just 5 kilometres north of Thaduna.
Previous Exploration and Mining
Open cut mining and limited underground mining took place from 1955 to 1971.
Reconnaissance exploration during the 1970’s was successful in outlining three copper-anomalous close to the two mines. Successive phases of Diamond drilling in the mid 1960’s and in the late 1980’s/early 1990’s were intersected relatively narrow copper mineralisation beneath the Thaduna and Green Dragon open pit including a best intercept of 9 metres downhole @ 5.22% Cu.
Limited metallurgical testwork in 1993 showed relatively poor flotation tests but encouraging heap leach results with more than 80% of the Cu recoverable over a 70-100 day leach.
Geology and Mineralisation
Mineralisation at Thaduna/Green Dragon comprises high-grade, shear hosted shoots and lower-grade disseminated mineralisation up to 20 metres wide in places. Strong alteration zones of chlorite (after hematite) introduced by hydrothermal fluids envelope the mineralisation. The mineralisation is totally oxidised to a depth of around 50 metres. Secondary copper minerals include chrysocolla, malachite, azurite and cuprite with a supergene zone to 90 metres vertical depth containing chalcocite and lesser covellite. Chalcopyrite and bornite are the dominant copper bearing minerals in the primary zone.
The controlling structures appear to be two graphitic shears trending 90° and 60° which are mineralised with cuprite-chalcocite-malachite at their intersection and form a 50 metre long shoot striking broadly east-west. Two other sub-parallel shoots returned elevated copper from drilling with widths ranging from 0.5-5.2 metres. Supergene mineralisation is found to a vertical depth of 53m.
Recent Exploration
Since listing earlier this year, the Company has drilled just over 8,000 metres of RC at Thaduna and Green Dragon with a view to following up historical high-grade drill intercepts. This latest phase of RC drilling by Ventnor Resources has extended mineralisation both along strike and down dip in addition to identifying multiple lodes which have the potential to significantly enhance the resource and in turn the project economics of the deposit
Thaduna
Highlights from the 2Q 2011 RC program which targeted historic intercepts (including 10 metres @ 5.4% Cu from 97 metres) included;
- 16 metres @ 3.5% Cu from 80 metres downhole,
- 4 metres @ 4.4% Cu from 87 metres downhole, and
- 7 metres @ 5.7% copper from 757 metres downhole
The second phase - 44 hole, 5,432 metre program tested a 1.5 kilometre strike length to a depth of 150 metres. Over 21 holes returned high grade intercepts (+1% Cu over +2 metres) with better results including;
- 5 metres @ 4.2% Cu from 30 metres downhole
- 3 metres @ 4.5% Cu from 121 metres downhole
- 5 metres @ 5.1% Cu from 100 metres, 4 metres @ 3.9% Cu downhole, and
- 11 metres @ 5.6% from 100 metres downhole
In particular the northernmost section on section 7176540mN is 130 metres north of the existing Thaduna pit with two holes (THRC013 with 4 metres downhole @ 3.5% Cu and THRC021 with 5 metres downhole @ 4.2% Cu) intersecting shallow mineralisation which remains open up and down dip.
THRC 041 is the deepest drillhole at Thaduna at 250 metres down hole (around 190 metres vertical depth), and all mineralised lodes appear to be open both up and down dip as well as along strike to the north.
Green Dragon
The recent program tested a strike length of 500 metres to a depth of up to 130 metres with 26 holes for 3,020 metres. 16 RC holes intersected high-grade mineralisation (>1% Cu) with generally good continuity between sections-an observation that has only now become apparent. The highlight of this phase was the intersection of multiple zones of mineralisation that remain open to the north, south, and up and down dip along the known trace of mineralisation.
Another interesting point is the intersection of an additional high-grade footwall zone which brings the total mineralised zones to three. A further zone has also been intersected on 774900mE and will be the subject of follow up drilling over the next few months. The shallow orientation also brings recently identified footwall zones into play with potential to add significantly to a JORC Resource.
The highest grades were intercepted below 774940mE with four holes, GDRC004, 020, 021, 025, intersecting three zones with the highest grades situated on the main lode and footwall positions. Holes GDRC021 and 025 intersected higher grades on the footwall zone.
OTHER PROJECTS
Warrawanda Nickel Project (Pilbara, Western Australia): The project is located approximately 40km south of Newman and is prospective for nickel-cobalt laterites, chrome and nickel sulphide mineralisation (Mt Keith style) and comprises an apparent 17km of lightly tested ultramafic rocks.
The Warrawanda South Greenstone Belt, which hosts the Warrawanda Project, is a 30-km-long, 200-800m-wide, easterly trending ultramafic body with in excess of 70 drill intersections >0.2% Ni in laterite.
Results from a recent 2,800 metre RC drill program targeting EM and magnetic anomalies over the Warrawanda and Nickel Hills prospects is anticipated shortly. The program was targeting large-tonnage, low-grade disseminated sulphide Ni deposits.
Nickel Hills Project (Pilbara, Western Australia): Situated just 8 kilometres north of Warrawanda, the project comprises two Exploration Licenses covering around 82km2. Pacminex explored Nickel Hills in the early 1970s and three copper anomalies were identified. This included limited drilling over the ultramafic intrusion contact. One hole was reported to contain the nickel sulphides violarite, millerite and heazelwoodite.
The Warrawanda North Greenstone Belt which hosts the Nickel Hills Project consists of an east-trending BIF, shale, schistose amphibolite and serpentinite. The tenements are mostly underlain by ultramafic lithologies. Drilling in the 1970s Pacminex reported nickel sulphide intercepts. The target is an ultramafic-mafic contact interpreted to be the base of a thick ultramafic volcanic flow. SRK have also confirmed the presence of gossanous sulphide float at surface. It is likely that the Company will commence exploration over previously identified high- grade zones in the coming quarter.
Georgina Basin (Mount Isa Region, Queensland): The Project is situated approximately 200 kilometres southwest of Mount Isa, a world class Ag-Pb-Zn, iron-oxide copper-gold (“IOCGU”) and massive sulphide province. Ventnor Resources’ tenements have no outcrop of prospective rocks of the Mount Isa Inlier with the Proterozoic sequences covered by post-Proterozoic sedimentary basins. Geophysical surveys in 2008 highlighted several magnetic and gravity features broadly consistent with a concealed IOCG model.
RISK ANALYSIS
- Follow-up drilling may not demonstrate sufficient continuity down-dip, up-dip and along strike to allow the calculation of a JORC Inferred Resource
- The relatively small tenement holdings may cap the resource upside of Thaduna and Green Dragon with upside more limited to down plunge extensions which may require higher stripping ratios (and therefore higher mining costs) or more capital intensive underground mining methods
- The Company is primarily exposed to copper (and to a lesser extent at this stage, nickel) which has weakened from recent highs of just over US$10,000/tonne in February 2011, however on Friday (26/08/2011) copper ended higher for a fourth straight day as investors banking on second half demand revival from China and longer term supply tightness increased purchases. Proactive Investors therefore sees more upside risk for copper in coming months
- Further declines in equity markets may continue to put pressure on junior resource companies as investors switch out of “risk” into perceived safe haven investments such as cash, gold and counter cyclical equities. Our medium term view is that the risk premium has been eroded for many junior resource companies and we see near term upside
- A strengthening Australian dollar (as funds flow back into riskier currencies) may make the price of copper in local (Australian) currency terms less attractive. This could have negative influences on Australian copper miners however it is more relevant to producing companies
We have excluded ASX listed companies such as OZ Mining Limited, PanAust Limited, Anvil Mining Limited and Aditya Birla Minerals Ltd as they are currently in production and not directly comparable to Ventnor Resources situation. We have however incorporated (Figure 17, Table 1) companies such as Sandfire Resources (ASX: SFR), CuDeco Limited (ASX: CDU), Haviliah Resources Limited (ASX: HAV), Hillgrove Resources Limited (ASX: HGO), Rex Minerals Limited (ASX: RXM), Discovery Metals (ASX: DML) Altona Mining (ASX: AOH) which are still in the exploration, feasibility study or pre-development phase. We have also taken into consideration the recent trade sale by Exxco Resources Ltd (ASX: EXM) of the Cloncurry Copper Project for A$175 million which valued the 630Kt of copper (Equiv) at around A$275/tonne. We also anticipate Voyager mineral (market capitalisation A$130 million) to come out with a high-grade copper resource shortly from its KM Porphyry Copper Project in Brazil shortly.
| Company | EV/T Cu equiv ($) | Resource Tonnage (Mt) | Cu Equiv (Mt) | EV ($m) |
| Discovery Metals Ltd | $1,496.01 | 17.00 | 0.33 | $488.71 |
| Rex Minerals Ltd | $107.41 | 217.00 | 1.83 | $196.87 |
| Hillgrove Resources Ltd | $376.83 | 32.20 | 0.34 | $126.76 |
| Havilah Resources Ltd | $30.44 | 92.00 | 1.24 | $37.61 |
| Exco Resources Ltd | $279.54 | 61.00 | 0.63 | $175.78 |
| Sandfire Resources Ltd | $1,348.10 | 14.60 | 0.84 | $1,133.18 |
| Cudeco Limited | $401.04 | 118.50 | 1.07 | $427.71 |
| *Ventnor Resources Ltd | $114.04 | 1.00 | 0.05 | $5.70 |
| Intrepid Mines Ltd | $102.54 | 990.00 | 7.25 | $743.86 |
| Altona Mining Ltd | $197.39 | 150.70 | 1.05 | $208.23 |
*Assumes maiden JORC Resource of 50Kt of contained copper
A note of caution is the relatively small size of our Ventnor Resources compared to these piers (roughly 6-12% of Sandfire Resources based on scenarios of 50-100K tonnes of contained copper). Our comparison focuses on total JORC resources at this stage. We note that Sandfire’s high grade and large tonnage will warrant a premium valuation.Ventnor certainly looks cheap on EV/Resource multiples, however resource growth may be somewhat less rapid than DeGrussa (Sandfire) for example.
We derive a peer group average enterprise value per resource tonne contained copper of $490/tonne, with the higher grade deposits such as Sandfire Resources and Discovery Metals attracting a premium. In contrast, lower grad/larger tonnage deposits such as Intrepid Mines Tuju Bukit deposit (990Mt @ 0.40% Cu) have been discounted by the market.
On this basis, and upon initiation of a scoping study, applying our average EV metric of $490, we derive an enterprise value of around A$25 million or around A$0.42 representing an approximate premium to the current share price of 91%. We anticipate that the maiden resource may well be in excess of 100,000 of contained copper which would equate to a Ventnor Resources share price approaching A$0.80 based on similar metrics. Clearly a resource approaching 150,000-200,000 tonnes of copper would push valuations higher as this is the approximate tonnage required to justify a stand-alone operation.
Disclaimer / Disclosure
This report was produced by Proactive Investors Pty Ltd, which is a Corporate Authorised Representative of RM Capital Pty Ltd (AFSL 221938). Proactive Investors received a fee for the compilation and distribution of the research report. Proactive Investors has made every effort to ensure that the information and material contained in this report is accurate and correct and has been obtained from reliable sources. However, no representation is made about the accuracy or completeness of the information and material and it should not be relied upon as a substitute for the exercise of independent judgment. Except to the extent required by law, Proactive Investors does not accept any liability, including negligence, for any loss or damage arising from the use of, or reliance on, the material contained in this report. This report is for information purposes only and is not intended as an offer or solicitation with respect to the sale or purchase of any securities. The securities recommended by Proactive Investors carry no guarantee with respect to return of capital or the market value of those securities. There are general risks associated with any investment in securities. Investors should be aware that these risks might result in loss of income and capital invested. Neither Proactive Investors nor any of its associates guarantees the repayment of capital.
WARNING: This report is intended to provide general financial product advice only. It has been prepared without having regarded to or taking into account any particular investor’s objectives, financial situation and/or needs. Accordingly, no recipients should rely on any recommendation (whether express or implied) contained in this document without obtaining specific advice from their advisers. All investors should therefore consider the appropriateness of the advice, in light of their own objectives, financial situation and/or needs, before acting on the advice. Where applicable, investors should obtain a copy of and consider the product disclosure statement for that product (if any) before making any decision.
DISCLOSURE: Proactive Investors and/or its directors, associates, employees or representatives may not effect a transaction upon its or their own account in the investments referred to in this report or any related investment until the expiry of 24 hours after the report has been published. Additionally, Proactive Investors may have, within the previous twelve months, provided advice or financial services to the companies mentioned in this report. As at the date of this report, the directors, associates, employees, representatives or Authorised Representatives of Proactive Investors and RM Capital may hold shares in Ventnor Resources Limited.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19068/ventnor-resources-maiden-high-grade-copper-resource-in-the-making-19068.html
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