IMX Resources (ASX: IXR) chairman Johann Jacobs indirectly acquired 50,000 ordinary shares at $0.42 per share on June 29 in on market purchases.
The shares were acquired for a consideration of A$21,000 and Jacobs now indirectly holds 955,000 ordinary shares through Finmin Solutions P/L.
IMX plans to complete the Ntaka Hill Scoping Study at the Nachingwea joint venture nickel project in Tanzania in October 2011.
Nachingwea is a joint venture between IMX Resources (25%) and Continental Nickel (CVE: CNI) (75%).
The JV intends to expand the resources at the new Sleeping Giant Resource that is still open in all directions, continue to explore the broader Nachingwea tenements including following up the malachite showing that was uncovered by artisanal miners over the wet season, and advance Ntaka Hill towards production.
The Measured and Indicated Resources at Ntaka is 3.683 million tonnes at 1.52% nickel, 0.28% copper and 0.05% cobalt (at a US$80/tonne NSR cut-off).
In addition Inferred Resources, which are dominated by the new Sleeping Giant discovery, total 10.9 million tonnes at 0.98% nickel and 0.22% copper.
The contained nickel in all resource categories totals 161,800 tonnes.
IMX Resources last traded at $0.465 per share.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17575/imx-resources-chairman-tops-up-shareholding-17575.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.
Thursday 30 June 2011
Aura Energy eyes U3O8 JORC Resource at Reguibat after continued high grade results
Aura Energy (ASX: AEE) continues to confirm the extensive nature of the calcrete uranium mineralisation at the Reguibat Project in Mauritania, with the final results from the company's major resource drilling program.
The latest high grade intercepts included:
- 4.5 metres at 1076 parts per million (ppm) U3O8 from 1 metre;
- 6.0 metres at 1356ppm U3O8 from surface;
- 3.0 metres at 1303ppm U3O8 from 3 metres; and
- 4.0 metres at 1409ppm U3O8 from surface.
Importantly for the news flow of Aura - the company said a JORC Resource estimate is expected early July 2011, to be conducted by Coffey Mining.
Bob Beeson, managing director, is very encouraged by the latest results and said “We are very pleased that we have continued to intersect strong uranium mineralisation throughout our main target areas and we are confident we can establish a resource.'
The positive of the latest hits are that they are in line with previous results and support the potential for the project envisaged by Aura at the completion of the 2010 drill program.
The program was extensive, covering more than 2000 holes, with the majority at Reguibat.
Drilling covered all of Aura’s wholly owned permits as well as the joint venture permits for over 9,100 metres.
The U308 exploration target at Reguibat is 40 to 60 million pounds, with the company's permits covering an extensive 8400 square kilometres.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17566/aura-energy-eyes-u3o8-jorc-resource-at-reguibat-after-continued-high-grade-results-17566.html
The latest high grade intercepts included:
- 4.5 metres at 1076 parts per million (ppm) U3O8 from 1 metre;
- 6.0 metres at 1356ppm U3O8 from surface;
- 3.0 metres at 1303ppm U3O8 from 3 metres; and
- 4.0 metres at 1409ppm U3O8 from surface.
Importantly for the news flow of Aura - the company said a JORC Resource estimate is expected early July 2011, to be conducted by Coffey Mining.
Bob Beeson, managing director, is very encouraged by the latest results and said “We are very pleased that we have continued to intersect strong uranium mineralisation throughout our main target areas and we are confident we can establish a resource.'
The positive of the latest hits are that they are in line with previous results and support the potential for the project envisaged by Aura at the completion of the 2010 drill program.
The program was extensive, covering more than 2000 holes, with the majority at Reguibat.
Drilling covered all of Aura’s wholly owned permits as well as the joint venture permits for over 9,100 metres.
The U308 exploration target at Reguibat is 40 to 60 million pounds, with the company's permits covering an extensive 8400 square kilometres.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17566/aura-energy-eyes-u3o8-jorc-resource-at-reguibat-after-continued-high-grade-results-17566.html
Continental Coal accelerates payments to acquire outstanding 35.9% in Mashala
South African focused Continental Coal (ASX: CCC) subsidiary CCL has elected to accelerate payments of an option to acquire the outstanding 35.9% minority interests in Mashala Resources.
Continental said the decision by CCL to move towards 100% ownership of Mashala follows the recent US$65 million debt financing from ABSA Capital.
The decision was also supported by the agreement reached with a Broad Based Black Economic Empowerment Group (BBBEE) to acquire the existing 26% Black Economic Empowerment equity interest in CCL and repay around US$20 million of the existing inter-company loan.
Mashala also includes the underlying Ferreira Export Thermal Coal Mine, Delta Processing Operations and Penumbra and De Wittekrans Export Thermal Coal Projects.
CCL has elected to acquire the outstanding minority interests to ensure that the company holds a minimum 75% interest in Mashala and the key operating mine and development projects prior to the establishment and drawdown of the proposed ABSA Capital debt financing, and the conclusion of the BBBEE transaction scheduled for completion in August 2011.
Continental said the acquisition will improve operating efficiencies and simplify operating and reporting procedures, along with greater cash flows.
To complete the acquisition of the minority interests, Continental has entered into an agreement with Socius CG II, a United States based investment group and a wholly-owned subsidiary of Socius Capital Group for up to a US$20 million equity investment in the company.
Socius will emerge as the company’s largest substantial institutional and cornerstone shareholder with an initial shareholding of around 6.86%, increasing to over 12.3%.
Continental has completed an initial placement to Socius of 234,962,406 new shares at A$0.043 to raise US$10 million, and issued 117,481,203 unlisted 5 year warrant options at A$0.044.
A subsequent tranche will be completed with Socius at a price that will be determined at premium to the market share price at the time of draw down.
The proceeds of the first tranche of the placement will allow the company to increase its shareholding in Mashala from the current 64.1% interest to up to a maximum 83.3% interest.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17565/continental-coal-accelerates-payments-to-acquire-outstanding-359-in-mashala-17565.html
Continental said the decision by CCL to move towards 100% ownership of Mashala follows the recent US$65 million debt financing from ABSA Capital.
The decision was also supported by the agreement reached with a Broad Based Black Economic Empowerment Group (BBBEE) to acquire the existing 26% Black Economic Empowerment equity interest in CCL and repay around US$20 million of the existing inter-company loan.
Mashala also includes the underlying Ferreira Export Thermal Coal Mine, Delta Processing Operations and Penumbra and De Wittekrans Export Thermal Coal Projects.
CCL has elected to acquire the outstanding minority interests to ensure that the company holds a minimum 75% interest in Mashala and the key operating mine and development projects prior to the establishment and drawdown of the proposed ABSA Capital debt financing, and the conclusion of the BBBEE transaction scheduled for completion in August 2011.
Continental said the acquisition will improve operating efficiencies and simplify operating and reporting procedures, along with greater cash flows.
To complete the acquisition of the minority interests, Continental has entered into an agreement with Socius CG II, a United States based investment group and a wholly-owned subsidiary of Socius Capital Group for up to a US$20 million equity investment in the company.
Socius will emerge as the company’s largest substantial institutional and cornerstone shareholder with an initial shareholding of around 6.86%, increasing to over 12.3%.
Continental has completed an initial placement to Socius of 234,962,406 new shares at A$0.043 to raise US$10 million, and issued 117,481,203 unlisted 5 year warrant options at A$0.044.
A subsequent tranche will be completed with Socius at a price that will be determined at premium to the market share price at the time of draw down.
The proceeds of the first tranche of the placement will allow the company to increase its shareholding in Mashala from the current 64.1% interest to up to a maximum 83.3% interest.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17565/continental-coal-accelerates-payments-to-acquire-outstanding-359-in-mashala-17565.html
Lachlan Star strikes copper at CMD Mine opposite Teck Resources Andacollo mine
Unhedged gold producer Lachlan Star (ASX: LSA) has intersected broad zones of copper at the CMD gold mine in Chile, which is strategically located adjacent to Teck Resources (NYSE: TCK) massive Andacollo mine.
Andacollo hosts resources of; 535 million tonnes at 0.37% copper and 0.12 grams per tonne (g/t) gold, highlighting the copper potential upside at the project.
Highlights from the first copper drill program include:
- 30 metres at 0.53% copper from 35 metres;
- 29 metres at 0.48% copper from 76 metres; and
- 10 metres at 0.37% copper from 30 metres.
Importantly for Lachlan Star is the continuation of copper mineralisation into the CMD tenements at grades similar to those mined next door by Teck.
Boosting the project credentials is the presence of copper and gold mineralisation located between adjoining open pits, which potentially could be extracted with very low waste/ore ratios given that the majority of the waste on either side of the mineralisation has been cut back already.
Lachlan Star said the mineralisation appears to be hosted in broad north trending shear zones that carry both copper and gold.
Despite being located adjacent to a large operating copper mine - there has been no previous systematic copper exploration on Lachlan Star's CMD tenements.
Additional results for the remainder of the program are pending.
The CMD Gold Mine
Lachlan Star has a JORC Probable Reserve of; 5.8 million tonnes at 0.8g/t gold for 157,000 ounces.
The total JORC Resource is 1.4 million gold ounces.
CMD is an open pit heap leach gold mine that commenced production in 1995 and has historically produced around 830,000 gold ounces.
The company has an unhedged production of around 45,000 gold ounces annually.
In the March 2011 quarter the company produced 8,348 gold ounces at a C1 cash cost of US$840 an ounce, but importantly two-thirds of the ore mined for the period was outside the Reserve (10% of ore from Inferred Resource).
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17564/lachlan-star-strikes-copper-at-cmd-mine-opposite-teck-resources-andacollo-mine-17564.html
Andacollo hosts resources of; 535 million tonnes at 0.37% copper and 0.12 grams per tonne (g/t) gold, highlighting the copper potential upside at the project.
Highlights from the first copper drill program include:
- 30 metres at 0.53% copper from 35 metres;
- 29 metres at 0.48% copper from 76 metres; and
- 10 metres at 0.37% copper from 30 metres.
Importantly for Lachlan Star is the continuation of copper mineralisation into the CMD tenements at grades similar to those mined next door by Teck.
Boosting the project credentials is the presence of copper and gold mineralisation located between adjoining open pits, which potentially could be extracted with very low waste/ore ratios given that the majority of the waste on either side of the mineralisation has been cut back already.
Lachlan Star said the mineralisation appears to be hosted in broad north trending shear zones that carry both copper and gold.
Despite being located adjacent to a large operating copper mine - there has been no previous systematic copper exploration on Lachlan Star's CMD tenements.
Additional results for the remainder of the program are pending.
The CMD Gold Mine
Lachlan Star has a JORC Probable Reserve of; 5.8 million tonnes at 0.8g/t gold for 157,000 ounces.
The total JORC Resource is 1.4 million gold ounces.
CMD is an open pit heap leach gold mine that commenced production in 1995 and has historically produced around 830,000 gold ounces.
The company has an unhedged production of around 45,000 gold ounces annually.
In the March 2011 quarter the company produced 8,348 gold ounces at a C1 cash cost of US$840 an ounce, but importantly two-thirds of the ore mined for the period was outside the Reserve (10% of ore from Inferred Resource).
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17564/lachlan-star-strikes-copper-at-cmd-mine-opposite-teck-resources-andacollo-mine-17564.html
Reed Resources completes Meekatharra Gold Project acquisition, to commence drilling in July
Reed Resources (ASX: RDR) will finalise the settlement of the Meekatharra Gold Project acquisition today and is set to shortly commence a reverse circulation (RC) and diamond core drill program.
The Meekatharra project, located in Western Australia, was acquired by Reed in January 2011. The company is paying the final instalment for the project today with A$8 million cash and A$1.3 million worth of Reed shares.
The company is looking to recommence production from its 2.5 million ounce (Moz) Resource at the project in 2012.
Diamond drilling will begin July 12 at the 600,000 oz Mickey Doolan Resource with targets including Chunderloo, Bluebird and Paddys Flat.
Chunderloo is a shear hosted copper-gold-silver prospect located three kilometres west of Reed's Bluebird mill, on the western contact of the belt.
Historical intersections are impressive and include 15 metres at 14.7 grams per tonne (g/t) gold and 4.1% copper (Cu) (including 7 metres of 28.9 g/t gold and 8.3% Cu). Numerous geochemical and geophysical targets have been identified over 1.5 kilometres strike.
The diamond core drilling has been designed to collect geotechnical information from the Prohibition ore body and metallurgical samples of the Mickey Doolan and Macquarie mineralisation.
The RC drilling program is targeting resource extensions at Prohibition, Batavia and Rhens, and also testing extensions to mineralisation at Chunderloo (copper – gold – silver), Sirdar, Rocklea, Whangamata, Paddys Flat and Reedy.
Resource RC drilling will target extensions and areas of the JORC Inferred Resource at Prohibition which stands at 5.4 million tonnes (Mt) at 2.6 g/t gold for 454,000 oz.
Extensions will also be targeted at the Batavia Resource (0.3Mt at 2.4 g/t for 24,000 oz) and the Rhens resource (2.8Mt at 1.6 g/t for 143,000 oz).
The aim of the program is to increase the open pit probable reserves at each of the areas targeted.
The exploration drilling is aimed at progressing a number of brown field targets. Projects range from exploratory drilling beneath shallow historic workings at Rocklea North, to validation drilling and targeting extensions to mineralisation in areas that have been extensively drilled to shallow depths such as Chunderloo.
Drilling around the historical pit at Whangamata is designed to significantly expand the length of the Resource and Reserve.
RC exploration drilling at Paddys Flat is targeting a fold hinge in banded iron formation (BIF) located 600 metres west of the Prohibition BIF.
Paddys Flat has historical gold production of 2.3Moz and a new underground mine is planned. This mineral field continues to deliver results in line with the company's expectations from the due diligence conducted on the project.
Significantly, on June 22 Reed increased the global resource for the Vivian-Consols-Mudlode-Fatts ore system at Paddys Flat from 1.78Mt for 318,000 oz to 1.77Mt for 373,000 oz, that moves it closer to re-commencement strategy to include underground operations.
The re-interpretation of the ore system was completed by Snowden. The upgrade represented a 17% increase in global grade from 5.4g/t to 6.6g/t, which will result in a greater number of ounces for less tonnage.
The RC drilling in the Reedy area will investigate possible depth extensions to mineralisation along the Turn of the Tide and Reedy lines of mineralisation. This will target expansions to the existing pits at Culculli, Thompsons Bore and Turn of the Tide.
With a market capitalisation around $140 million, $31 million in cash and $9 million in debt, the recent upgraded Resource boosts the 2.5Moz at Meekatharra and places Reed on an EV/ounce of under $50, excluding its other lithium and vanadium projects.
Meekatharra Gold project was acquired by Reed for less than $30m and boasts an established 200 man camp, 3Mt per annum mill and other facilities which have a replacement cost of $100 million.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17563/reed-resources-completes-meekatharra-gold-project-acquisition-to-commence-drilling-in-july-17563.html
The Meekatharra project, located in Western Australia, was acquired by Reed in January 2011. The company is paying the final instalment for the project today with A$8 million cash and A$1.3 million worth of Reed shares.
The company is looking to recommence production from its 2.5 million ounce (Moz) Resource at the project in 2012.
Diamond drilling will begin July 12 at the 600,000 oz Mickey Doolan Resource with targets including Chunderloo, Bluebird and Paddys Flat.
Chunderloo is a shear hosted copper-gold-silver prospect located three kilometres west of Reed's Bluebird mill, on the western contact of the belt.
Historical intersections are impressive and include 15 metres at 14.7 grams per tonne (g/t) gold and 4.1% copper (Cu) (including 7 metres of 28.9 g/t gold and 8.3% Cu). Numerous geochemical and geophysical targets have been identified over 1.5 kilometres strike.
The diamond core drilling has been designed to collect geotechnical information from the Prohibition ore body and metallurgical samples of the Mickey Doolan and Macquarie mineralisation.
The RC drilling program is targeting resource extensions at Prohibition, Batavia and Rhens, and also testing extensions to mineralisation at Chunderloo (copper – gold – silver), Sirdar, Rocklea, Whangamata, Paddys Flat and Reedy.
Resource RC drilling will target extensions and areas of the JORC Inferred Resource at Prohibition which stands at 5.4 million tonnes (Mt) at 2.6 g/t gold for 454,000 oz.
Extensions will also be targeted at the Batavia Resource (0.3Mt at 2.4 g/t for 24,000 oz) and the Rhens resource (2.8Mt at 1.6 g/t for 143,000 oz).
The aim of the program is to increase the open pit probable reserves at each of the areas targeted.
The exploration drilling is aimed at progressing a number of brown field targets. Projects range from exploratory drilling beneath shallow historic workings at Rocklea North, to validation drilling and targeting extensions to mineralisation in areas that have been extensively drilled to shallow depths such as Chunderloo.
Drilling around the historical pit at Whangamata is designed to significantly expand the length of the Resource and Reserve.
RC exploration drilling at Paddys Flat is targeting a fold hinge in banded iron formation (BIF) located 600 metres west of the Prohibition BIF.
Paddys Flat has historical gold production of 2.3Moz and a new underground mine is planned. This mineral field continues to deliver results in line with the company's expectations from the due diligence conducted on the project.
Significantly, on June 22 Reed increased the global resource for the Vivian-Consols-Mudlode-Fatts ore system at Paddys Flat from 1.78Mt for 318,000 oz to 1.77Mt for 373,000 oz, that moves it closer to re-commencement strategy to include underground operations.
The re-interpretation of the ore system was completed by Snowden. The upgrade represented a 17% increase in global grade from 5.4g/t to 6.6g/t, which will result in a greater number of ounces for less tonnage.
The RC drilling in the Reedy area will investigate possible depth extensions to mineralisation along the Turn of the Tide and Reedy lines of mineralisation. This will target expansions to the existing pits at Culculli, Thompsons Bore and Turn of the Tide.
With a market capitalisation around $140 million, $31 million in cash and $9 million in debt, the recent upgraded Resource boosts the 2.5Moz at Meekatharra and places Reed on an EV/ounce of under $50, excluding its other lithium and vanadium projects.
Meekatharra Gold project was acquired by Reed for less than $30m and boasts an established 200 man camp, 3Mt per annum mill and other facilities which have a replacement cost of $100 million.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17563/reed-resources-completes-meekatharra-gold-project-acquisition-to-commence-drilling-in-july-17563.html
Dragon Mining shares soar 10% on high grade gold hits at Kuusamo in Finland
Dragon Mining (ASX: DRA) has been released from a trading halt this morning after releasing results from the Kuusamo gold project in Finland, with the company's shares rallying 10% higher in morning trade to last change hands at $1.33.
The latest highlights from a scissor hole at the Juomasuo project targeting the known gold bearing lodes returned; 8.95 metres at 11.42 grams per tonne (g/t) gold from 60 metres, and 8.40 metres at 10.06g/t gold from 77 metres.
In addition two intervals located within the mineralised envelope have been shipped to the ALS Chemex Laboratory in Vancouver for specialised sample preparation and assaying.
Dragon said the intercepts provide evidence of the continuation of the eastern most lode and/or the presence of new lode(s) in the area, which has previously been subjected to only limited near surface drilling.
Exploration is also ramping up at the project, with a third rig now mobilised to site.
Juomasuo is the largest of the five deposits identified to date within Kuusamo.
Kuusamo is located 700 kilometres northeast of Helsinki, and comprises a series of tenements with a combined Indicated and Inferred Resource of; 2.19 million tonnes at 5.4g/t gold for 383,500 ounces.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17562/dragon-mining-shares-soar-10-on-high-grade-gold-hits-at-kuusamo-in-finland-17562.html
The latest highlights from a scissor hole at the Juomasuo project targeting the known gold bearing lodes returned; 8.95 metres at 11.42 grams per tonne (g/t) gold from 60 metres, and 8.40 metres at 10.06g/t gold from 77 metres.
In addition two intervals located within the mineralised envelope have been shipped to the ALS Chemex Laboratory in Vancouver for specialised sample preparation and assaying.
Dragon said the intercepts provide evidence of the continuation of the eastern most lode and/or the presence of new lode(s) in the area, which has previously been subjected to only limited near surface drilling.
Exploration is also ramping up at the project, with a third rig now mobilised to site.
Juomasuo is the largest of the five deposits identified to date within Kuusamo.
Kuusamo is located 700 kilometres northeast of Helsinki, and comprises a series of tenements with a combined Indicated and Inferred Resource of; 2.19 million tonnes at 5.4g/t gold for 383,500 ounces.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17562/dragon-mining-shares-soar-10-on-high-grade-gold-hits-at-kuusamo-in-finland-17562.html
Arafura Resources signs milestone agreement for Nolans Rare Earths Project
Arafura Resources (ASX: ARU) has reached an important milestone in the development of the Nolans Rare Earths Project by signing a land purchase contract with OneSteel Limited (ASX: OST), securing the site for the Whyalla rare earths processing complex.
Signed contracts were exchanged with subsidiary OneSteel Manufacturing Pty Ltd to purchase 800 hectares of land at Whyalla in South Australia, which will help underpin Arafura’s position as one of the very few near-term producers of rare earths.
The Nolans Project in the Northern Territory is regarded as one of the world's largest undeveloped rare earths projects and is aiming for rare earth oxide production from 2013.
The project will use a production process developed in Australia, and will be one of the first major producers outside of China for users worldwide.
Under the contract, which is subject to final government approvals, Arafura retains rights to access the Whyalla site to continue with detailed engineering and environmental studies.
Dr Steve Ward, Arafura managing director and CEO, said "Whyalla is a key part of Arafura’s business model which is to add value to resources in Australia and produce rare earth oxides for users worldwide using production processes developed in Australia.
“The Whyalla community and the South Australian and Northern Territory governments have been very supportive of our plans to deliver a project that will place Australia well and truly on the global rare earths industry map."
The land is located within the current OneSteel Whyalla landholding and the contract incorporates easements for the location of infrastructure.
In September 2010, Arafura and OneSteel signed an exclusivity deed to negotiate a formal sale agreement which has now been concluded.
Earlier this month Arafura received Environmental Impact Statement (EIS) guidelines relating to development approvals for the Rare Earths Complex at the site.
The Whyalla site was identified after a comprehensive Australia-wide assessment, and has many of the characteristics necessary for the development and operation of a substantial minerals processing and chemical facility, such as availability of services, close proximity to transport infrastructure, and access to a skilled workforce.
The company continues to progress work relating to the EIS approval.
Arafura recently expanded the scope of Bankable Feasibility Study (BFS) for the Nolans project and extended the expected completion date of the BFS by nine to twelve months.
The expanded BFS will not only reduce operating and capital costs and de-risk the proposed Rare Earths Complex at Whyalla, but take advantage of 1,221 per cent higher rare earths prices, by simplifying the project flow sheet to focus on rare earth products.
Notably, the average valuation for the Nolans Rare Earths mix has lifted to US$207.53/kg (FOB) in June 2011, compared to the June 2010 value. These higher prices are expected to continue because of the demand and supply equation for rare earths.
By the end of 2011 the company expects to have a much clearer understanding of the deposit’s capability to support expanded production far into the future, with sample analysis and geological interpretation of drill data well underway.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17561/arafura-resources-signs-milestone-agreement-for-nolans-rare-earths-project-17561.html
Signed contracts were exchanged with subsidiary OneSteel Manufacturing Pty Ltd to purchase 800 hectares of land at Whyalla in South Australia, which will help underpin Arafura’s position as one of the very few near-term producers of rare earths.
The Nolans Project in the Northern Territory is regarded as one of the world's largest undeveloped rare earths projects and is aiming for rare earth oxide production from 2013.
The project will use a production process developed in Australia, and will be one of the first major producers outside of China for users worldwide.
Under the contract, which is subject to final government approvals, Arafura retains rights to access the Whyalla site to continue with detailed engineering and environmental studies.
Dr Steve Ward, Arafura managing director and CEO, said "Whyalla is a key part of Arafura’s business model which is to add value to resources in Australia and produce rare earth oxides for users worldwide using production processes developed in Australia.
“The Whyalla community and the South Australian and Northern Territory governments have been very supportive of our plans to deliver a project that will place Australia well and truly on the global rare earths industry map."
The land is located within the current OneSteel Whyalla landholding and the contract incorporates easements for the location of infrastructure.
In September 2010, Arafura and OneSteel signed an exclusivity deed to negotiate a formal sale agreement which has now been concluded.
Earlier this month Arafura received Environmental Impact Statement (EIS) guidelines relating to development approvals for the Rare Earths Complex at the site.
The Whyalla site was identified after a comprehensive Australia-wide assessment, and has many of the characteristics necessary for the development and operation of a substantial minerals processing and chemical facility, such as availability of services, close proximity to transport infrastructure, and access to a skilled workforce.
The company continues to progress work relating to the EIS approval.
Arafura recently expanded the scope of Bankable Feasibility Study (BFS) for the Nolans project and extended the expected completion date of the BFS by nine to twelve months.
The expanded BFS will not only reduce operating and capital costs and de-risk the proposed Rare Earths Complex at Whyalla, but take advantage of 1,221 per cent higher rare earths prices, by simplifying the project flow sheet to focus on rare earth products.
Notably, the average valuation for the Nolans Rare Earths mix has lifted to US$207.53/kg (FOB) in June 2011, compared to the June 2010 value. These higher prices are expected to continue because of the demand and supply equation for rare earths.
By the end of 2011 the company expects to have a much clearer understanding of the deposit’s capability to support expanded production far into the future, with sample analysis and geological interpretation of drill data well underway.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17561/arafura-resources-signs-milestone-agreement-for-nolans-rare-earths-project-17561.html
Stirling Products in pre-open pending board and funding announcements
Stirling Products (ASX: STI) has been granted a trading halt by the ASX pending several announcements, with the company's shares placed in pre-open.
Stirling is set to announce changes in the board, along with a progress update with funding and positioning for a planned UK AIM dual listing.
The company will also update the market on the appointment of a chief executive officer, and the HDA drug delivery license.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17559/stirling-products-in-pre-open-pending-board-and-funding-announcements-17559.html
Stirling is set to announce changes in the board, along with a progress update with funding and positioning for a planned UK AIM dual listing.
The company will also update the market on the appointment of a chief executive officer, and the HDA drug delivery license.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17559/stirling-products-in-pre-open-pending-board-and-funding-announcements-17559.html
Rey Resources firm commitments for A$8m placement to fund growth ambitions
Rey Resources (ASX: REY) has received a major vote of confidence from investors with firm commitments for a A$8 million placement, comprising 40 million shares at $0.20.
The placement will be in two tranches, with the first to raise $1.34 million under the company's 15% capacity, with the second $6.66 million subject to shareholder approval.
The capital injection will be used for continued exploration targeting an increase in resources and extension of mine life, along with optimisation studies and permitting.
Kevin Wilson, managing director, said the placement would allow the company to accelerate its growth ambitions.
“We are delighted with the strong level of support for the placement and believe it is a strong endorsement of the Duchess Paradise Project and our strategy to maximise value through further exploration and development.
"As a result of this capital raising, our company is in a healthy financial position to prove the potential of our large land holding, negotiate with potential strategic partners and ultimately demonstrate the substantial upside of the Duchess Paradise Project.”
Rey Resources completed the Definitive Feasibility Study on the development of the Duchess Paradise thermal coal export project last month, confirming the project as economically robust and technically viable.
The study proposed a highwall mining operation producing 2.0 to 2.5 million tonnes of 5,500 kcal/kg thermal coal per year to be exported from the company’s existing port infrastructure at Derby in Western Australia.
Undertaken by Marshall Miller & Associates Inc. the study confirms the prospect of a longer life project and increased economic and employment opportunities for the area.
The study proposes an initial operation with a mine life of at least 10 years, an ungeared NPV (10% discount rate) of A$176 million (after taxes and MRRT), an internal rate of return of 27%, and a payback of 3.4 years.
Production costs are estimated at A$70 per tonne.
Rey Resources is now looking to extend the mine life beyond 10 years through further exploration.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17560/rey-resources-firm-commitments-for-a8m-placement-to-fund-growth-ambitions-17560.html
The placement will be in two tranches, with the first to raise $1.34 million under the company's 15% capacity, with the second $6.66 million subject to shareholder approval.
The capital injection will be used for continued exploration targeting an increase in resources and extension of mine life, along with optimisation studies and permitting.
Kevin Wilson, managing director, said the placement would allow the company to accelerate its growth ambitions.
“We are delighted with the strong level of support for the placement and believe it is a strong endorsement of the Duchess Paradise Project and our strategy to maximise value through further exploration and development.
"As a result of this capital raising, our company is in a healthy financial position to prove the potential of our large land holding, negotiate with potential strategic partners and ultimately demonstrate the substantial upside of the Duchess Paradise Project.”
Rey Resources completed the Definitive Feasibility Study on the development of the Duchess Paradise thermal coal export project last month, confirming the project as economically robust and technically viable.
The study proposed a highwall mining operation producing 2.0 to 2.5 million tonnes of 5,500 kcal/kg thermal coal per year to be exported from the company’s existing port infrastructure at Derby in Western Australia.
Undertaken by Marshall Miller & Associates Inc. the study confirms the prospect of a longer life project and increased economic and employment opportunities for the area.
The study proposes an initial operation with a mine life of at least 10 years, an ungeared NPV (10% discount rate) of A$176 million (after taxes and MRRT), an internal rate of return of 27%, and a payback of 3.4 years.
Production costs are estimated at A$70 per tonne.
Rey Resources is now looking to extend the mine life beyond 10 years through further exploration.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17560/rey-resources-firm-commitments-for-a8m-placement-to-fund-growth-ambitions-17560.html
Eagle Eye Metals to focus on West African gold, allows Australian option to expire
Eagle Eye Metals (ASX: EYE) has elected not to exercise an option to acquire a 20% interest in the project plus 1 million gold ounce Aphrodite project near Kalgoorlie in Western Australia.
Eagle Eye has advised Aphrodite Gold (ASX: AQQ), which allows Aphrodite to maintain full ownership of the highly prospective Aphrodite project.
Consideration to exercise the option comprised a cash payment of $1.44 million plus reimbursement of 20% of the direct exploration and development costs incurred by Aphrodite on the project to date.
Eagle Eye though still has exposure to the upside of Aphrodite, with Eagle Eye holding 11.85 million shares, equivalent to 8.9%, and 5.925 million options in Aphrodite.
This decision allows Eagle Eye to focus on the company's promising West African gold projects, which were recently acquired.
Inaugural drilling has already kicked off at the Dankassa Gold Project in Mali, with the country having historically produced around 250 million gold ounces.
Exploration has started at the Kourouba prospect with 2500 metres of reverse circulation drilling targeting a coherent gold in soil geochemistry anomaly, which extends over more than 5000 metres of strike.
Gold is known to occur within the prospect, with historical results including; 10 metres at 5.75 grams per tonne (g/t) gold, and 20 metres at 2.17g/t gold.
Around 58 holes were drilled at the prospect before the Eagle Eye acquisition, with the area providing exploration potential as mineralisation remains open in all directions.
Dankassa is within 200 kilometres of the Morila 7 million ounce project and the Siguiri 5 million ounce project.
The company believes there is considerable potential to discover additional gold mineralisation with infill, extensional and deeper drilling.
Dankassa is located 110 kilometres south of Bamako, the capital of Mali, and is readily accessible by a sealed highway and gravel roads.
Adding to the infrastructure is that high voltage power passes within 5 kilometres of the project, and a town that services a hydro-electric power scheme 40 kilometres to the south.
Eagle Eye has some big supporters - with Macquarie Group (ASX: MQG) recently becoming a cornerstone investor after subscribing to $500,000 worth of shares at $0.09, providing a vote of confidence in the company.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17558/eagle-eye-metals-to-focus-on-west-african-gold-allows-australian-option-to-expire-17558.html
Eagle Eye has advised Aphrodite Gold (ASX: AQQ), which allows Aphrodite to maintain full ownership of the highly prospective Aphrodite project.
Consideration to exercise the option comprised a cash payment of $1.44 million plus reimbursement of 20% of the direct exploration and development costs incurred by Aphrodite on the project to date.
Eagle Eye though still has exposure to the upside of Aphrodite, with Eagle Eye holding 11.85 million shares, equivalent to 8.9%, and 5.925 million options in Aphrodite.
This decision allows Eagle Eye to focus on the company's promising West African gold projects, which were recently acquired.
Inaugural drilling has already kicked off at the Dankassa Gold Project in Mali, with the country having historically produced around 250 million gold ounces.
Exploration has started at the Kourouba prospect with 2500 metres of reverse circulation drilling targeting a coherent gold in soil geochemistry anomaly, which extends over more than 5000 metres of strike.
Gold is known to occur within the prospect, with historical results including; 10 metres at 5.75 grams per tonne (g/t) gold, and 20 metres at 2.17g/t gold.
Around 58 holes were drilled at the prospect before the Eagle Eye acquisition, with the area providing exploration potential as mineralisation remains open in all directions.
Dankassa is within 200 kilometres of the Morila 7 million ounce project and the Siguiri 5 million ounce project.
The company believes there is considerable potential to discover additional gold mineralisation with infill, extensional and deeper drilling.
Dankassa is located 110 kilometres south of Bamako, the capital of Mali, and is readily accessible by a sealed highway and gravel roads.
Adding to the infrastructure is that high voltage power passes within 5 kilometres of the project, and a town that services a hydro-electric power scheme 40 kilometres to the south.
Eagle Eye has some big supporters - with Macquarie Group (ASX: MQG) recently becoming a cornerstone investor after subscribing to $500,000 worth of shares at $0.09, providing a vote of confidence in the company.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17558/eagle-eye-metals-to-focus-on-west-african-gold-allows-australian-option-to-expire-17558.html
Montezuma Mining to appoint new chairman on retirement of Denis O’Meara
Montezuma Mining Company (ASX: MZM) will appoint Seamus Cornelius as chairman following the retirement of the company’s founding chairman, Denis O’Meara, on 30 June 2011.
Cornelius will brings 21 years of corporate experience in both legal and commercial negotiations to the board of directors. He has been based in Shanghai and Beijing since 1993 where he has been living and working as a corporate lawyer.
From 2000 to 2010, Cornelius was an international partner with one of Australia’s leading law firms and specialised in dealing with cross border investments, particularly in the energy and resource sectors.
Montezuma is expecting results shortly from the completed manganese focused reverse circulation drilling program at the highly prospective Butcherbird Manganese/Copper Project in Western Australia.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17557/montezuma-mining-to-appoint-new-chairman-on-retirement-of-denis-omeara-17557.html
Cornelius will brings 21 years of corporate experience in both legal and commercial negotiations to the board of directors. He has been based in Shanghai and Beijing since 1993 where he has been living and working as a corporate lawyer.
From 2000 to 2010, Cornelius was an international partner with one of Australia’s leading law firms and specialised in dealing with cross border investments, particularly in the energy and resource sectors.
Montezuma is expecting results shortly from the completed manganese focused reverse circulation drilling program at the highly prospective Butcherbird Manganese/Copper Project in Western Australia.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17557/montezuma-mining-to-appoint-new-chairman-on-retirement-of-denis-omeara-17557.html
Aphrodite Gold maintains full ownership of plus 1m gold ounce Aphrodite project
Aphrodite Gold (ASX: AQQ) will continue to wholly own the highly prospective plus 1 million gold ounce Aphrodite gold project, which is strategically located near Kalgoorlie in Western Australia.
Aphrodite granted an option to Eagle Eye Metals (ASX: EYE) in 2010 to acquire by the 30 June 2011 a 20% interest in the project.
Eagle Eye has advised Aphrodite that the company will not exercise the option, with Eagle Eye to instead focus on operations in West Africa - where the company recently acquired some prospective gold projects.
Consideration to exercise the option comprised a cash payment of $1.44 million plus reimbursement of 20% of the direct exploration and development costs incurred by Aphrodite on the project to date.
Aphrodite continues to move the project forward with reverse circulation drilling and detailed metallurgical programs underway, with a Scoping Study set to commence in the September quarter of 2011.
The company is looking to increase the gold resource, and last month commenced drilling at the nearby Chameleon Prospect, which forms part of the Scotia Gold Joint Venture Project the company recently farmed into with Breakaway Resources (ASX: BRW).
Chameleon is just 5 kilometres from the plus 1 million gold ounce Aphrodite project.
Under the terms of the farm-in and joint venture agreement, Aphrodite can earn up to 80% of the gold rights in the Scotia Project tenements covering 217 square kilometres - with Breakaway retaining the rights to all other minerals.
Boosting the chances of drilling success is known gold at the prospect, with the joint venture to follow up some wide historic hits including:
- 29 metres at 3.40 grams per tonne (g/t) gold from 124 metres;
- 22 metres at 5.43g/t gold from 150 metres; and
- 8 metres at 3.39g/t gold from 202 metres.
Most importantly mineralisation remains open both at depth and along strike.
Eagle Eye is a substantial shareholder of Aphrodite, holding 11.85 million shares, equivalent to 8.9%, and 5.925 million options.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17556/aphrodite-gold-maintains-full-ownership-of-plus-1m-gold-ounce-aphrodite-project--17556.html
Aphrodite granted an option to Eagle Eye Metals (ASX: EYE) in 2010 to acquire by the 30 June 2011 a 20% interest in the project.
Eagle Eye has advised Aphrodite that the company will not exercise the option, with Eagle Eye to instead focus on operations in West Africa - where the company recently acquired some prospective gold projects.
Consideration to exercise the option comprised a cash payment of $1.44 million plus reimbursement of 20% of the direct exploration and development costs incurred by Aphrodite on the project to date.
Aphrodite continues to move the project forward with reverse circulation drilling and detailed metallurgical programs underway, with a Scoping Study set to commence in the September quarter of 2011.
The company is looking to increase the gold resource, and last month commenced drilling at the nearby Chameleon Prospect, which forms part of the Scotia Gold Joint Venture Project the company recently farmed into with Breakaway Resources (ASX: BRW).
Chameleon is just 5 kilometres from the plus 1 million gold ounce Aphrodite project.
Under the terms of the farm-in and joint venture agreement, Aphrodite can earn up to 80% of the gold rights in the Scotia Project tenements covering 217 square kilometres - with Breakaway retaining the rights to all other minerals.
Boosting the chances of drilling success is known gold at the prospect, with the joint venture to follow up some wide historic hits including:
- 29 metres at 3.40 grams per tonne (g/t) gold from 124 metres;
- 22 metres at 5.43g/t gold from 150 metres; and
- 8 metres at 3.39g/t gold from 202 metres.
Most importantly mineralisation remains open both at depth and along strike.
Eagle Eye is a substantial shareholder of Aphrodite, holding 11.85 million shares, equivalent to 8.9%, and 5.925 million options.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17556/aphrodite-gold-maintains-full-ownership-of-plus-1m-gold-ounce-aphrodite-project--17556.html
Gold One International acquisition by Chinese consortium now unconditional
Gold One International (ASX, JSE: GDO) has been informed that the conditions for the African Global Capital (AGC) acquisition are now unconditional, signifying a major step in the completion of this process.
On May 16, Gold One invited a consortium of Chinese investors to become a long term strategic partner and major shareholder in the company in a transformational transaction.
The consortium will invest at least A$150 million (ZAR1.1 billion) to secure a 60% to 75% stake in Gold One.
As part of the transaction, the consortium, via BidCo, has made a cash offer to Gold One shareholders at A$0.55 (ZAR4.08) per share, representing a 27.9% premium to the latest closing price and 25.1% above the 30-day VWAP.
The capital injection of A$150 million through BidCo will significantly bolster Gold One’s balance sheet.
The consortium may subscribe for up to an additional 188.7 million shares in Gold One at A$0.53, should the initial subscription by the consortium and acceptances of the A$0.55 per Gold One share cash offer not result in achieving an aggregate interest of 60%.
The consortium has secured 17.64% of the company from African Global Capital.
Gold One has developed a strategy to increase the company's scale and production capacity and has identified that the consortium as an investment partner can strengthen acquisition capabilities.
The consortium will commit substantial financial and technical support to assist Gold One to realise its strategy of expanding its African portfolio of assets, and subsequently, international assets, while also enhancing access to Asian capital markets.
Gold One’s transaction advisers are Macquarie Capital Advisers and Hartleys.
To accommodate certain administrative arrangements for the payment and transfer of the AGC shares, consortium member Baiyin Non-Ferrous Group Co Limited and AGC have agreed to finalise the completion of the transaction by 15 July 2011, and amend the terms of their agreement accordingly.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17555/gold-one-international-acquisition-by-chinese-consortium-now-unconditional-17555.html
On May 16, Gold One invited a consortium of Chinese investors to become a long term strategic partner and major shareholder in the company in a transformational transaction.
The consortium will invest at least A$150 million (ZAR1.1 billion) to secure a 60% to 75% stake in Gold One.
As part of the transaction, the consortium, via BidCo, has made a cash offer to Gold One shareholders at A$0.55 (ZAR4.08) per share, representing a 27.9% premium to the latest closing price and 25.1% above the 30-day VWAP.
The capital injection of A$150 million through BidCo will significantly bolster Gold One’s balance sheet.
The consortium may subscribe for up to an additional 188.7 million shares in Gold One at A$0.53, should the initial subscription by the consortium and acceptances of the A$0.55 per Gold One share cash offer not result in achieving an aggregate interest of 60%.
The consortium has secured 17.64% of the company from African Global Capital.
Gold One has developed a strategy to increase the company's scale and production capacity and has identified that the consortium as an investment partner can strengthen acquisition capabilities.
The consortium will commit substantial financial and technical support to assist Gold One to realise its strategy of expanding its African portfolio of assets, and subsequently, international assets, while also enhancing access to Asian capital markets.
Gold One’s transaction advisers are Macquarie Capital Advisers and Hartleys.
To accommodate certain administrative arrangements for the payment and transfer of the AGC shares, consortium member Baiyin Non-Ferrous Group Co Limited and AGC have agreed to finalise the completion of the transaction by 15 July 2011, and amend the terms of their agreement accordingly.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17555/gold-one-international-acquisition-by-chinese-consortium-now-unconditional-17555.html
Arthur Lipper to advise Colt Resources
Canadian Junior explorer Colt Resources (CVE:GTP) said on Thursday that it has appointed Arthur Lipper as special advisor to the company’s board of directors.
Lipper, who has served on the boards of privately owned and publically traded companies, brings with him a broad experience as an investment banker, corporate advisor and author.
He founded and co-founded and chaired two institutional New York Stock Exchange member firms which have held memberships in many other stock and commodities futures exchanges.
His previous board memberships and advisory positions include: oil and gas exploration companies, industrial companies and high tech and communications companies.
As an inventor, he is responsible for modernizing mutual fund performance measurement and reporting, institutional stock loans services and stock index funds. He is the author of five books on the subject of entrepreneurship and financing companies.
In 2011, Lipper was awarded U.S. patents covering a means of using royalties in the financing of companies and projects and also one relating to a unique approach to investment portfolio monitoring and management.
"We are very pleased and honored that Arthur has decided to throw his support behind Colt,” said Colt Resources chief executive, Nikolas Perrault.
“I am personally looking forward to working with him and to be able to benefit from the wisdom and experience he brings to us from such a distinguished career," he added.
Colt Resources is a junior exploration company engaged in the exploration and development of mineral properties with an emphasis on gold and tungsten. It is currently focused on advanced stage exploration projects in Portugal, where it is the second largest lease holder of mineral concessions.
Lipper, who has served on the boards of privately owned and publically traded companies, brings with him a broad experience as an investment banker, corporate advisor and author.
He founded and co-founded and chaired two institutional New York Stock Exchange member firms which have held memberships in many other stock and commodities futures exchanges.
His previous board memberships and advisory positions include: oil and gas exploration companies, industrial companies and high tech and communications companies.
As an inventor, he is responsible for modernizing mutual fund performance measurement and reporting, institutional stock loans services and stock index funds. He is the author of five books on the subject of entrepreneurship and financing companies.
In 2011, Lipper was awarded U.S. patents covering a means of using royalties in the financing of companies and projects and also one relating to a unique approach to investment portfolio monitoring and management.
"We are very pleased and honored that Arthur has decided to throw his support behind Colt,” said Colt Resources chief executive, Nikolas Perrault.
“I am personally looking forward to working with him and to be able to benefit from the wisdom and experience he brings to us from such a distinguished career," he added.
Colt Resources is a junior exploration company engaged in the exploration and development of mineral properties with an emphasis on gold and tungsten. It is currently focused on advanced stage exploration projects in Portugal, where it is the second largest lease holder of mineral concessions.
Timmins Gold reports massive increase in income as gold production ramps up at San Francisco Mine
Timmins Gold (TSE:TMM) reported solid fourth quarter and full year results for the period ending March 31, 2011 this morning as its gold production continued to ramp up at the San Francisco Mine in Mexico.
San Francisco is an open pit heap leach operation that is forecast to produce just under 540,000 ounces of gold between 2011 and 2016 at a life of mine cash cost of approximately US$489 per ounce. Commercial production at the mine, which commenced in April 2010, recently increased after a completed expansion which will allow the mine to operate at an annual production rate of 100,000 ounces of gold per year.
Income from operations was approximately $35.1 million in fiscal 2011, compared to a loss from operations in fiscal 2010 of $6.55 million. The big swing in income was due to increasing production at San Francisco coupled with an average realized gold price of US$1,344 per ounce.
During the fiscal 2011 year, Timmins produced 65,786 ounces of gold and sold 62,761 ounces of gold, generating revenues of $84.35 million. Cash flow from operations surged to $43.38 million. Cash cost per ounce in fiscal 2011 was US$530 per gold ounce.
"The Company's first year of commercial production has been a tremendous success. We've seen operational improvements on a quarter over quarter basis, and with nine drill rigs currently on site have embarked on an aggressive exploration program to increase the mine life at San Francisco," stated Mr. Bruce Bragagnolo, CEO of Timmins Gold.
San Francisco is an open pit heap leach operation that is forecast to produce just under 540,000 ounces of gold between 2011 and 2016 at a life of mine cash cost of approximately US$489 per ounce. Commercial production at the mine, which commenced in April 2010, recently increased after a completed expansion which will allow the mine to operate at an annual production rate of 100,000 ounces of gold per year.
Income from operations was approximately $35.1 million in fiscal 2011, compared to a loss from operations in fiscal 2010 of $6.55 million. The big swing in income was due to increasing production at San Francisco coupled with an average realized gold price of US$1,344 per ounce.
During the fiscal 2011 year, Timmins produced 65,786 ounces of gold and sold 62,761 ounces of gold, generating revenues of $84.35 million. Cash flow from operations surged to $43.38 million. Cash cost per ounce in fiscal 2011 was US$530 per gold ounce.
"The Company's first year of commercial production has been a tremendous success. We've seen operational improvements on a quarter over quarter basis, and with nine drill rigs currently on site have embarked on an aggressive exploration program to increase the mine life at San Francisco," stated Mr. Bruce Bragagnolo, CEO of Timmins Gold.
Riverside and Guerrero ink definitive option deal for Chapalota
Riverside Resources (CVE:RRI) and Canada-based Guerrero Exploration announced Thursday they signed a definitive option agreement for the Chapalota project in Sinaloa, Mexico.
In order to acquire a 60% interest, Guerrero must issue Riverside 1.25 million Guerrero shares, make total cash payments of $200,000, and incur $4.0 million in exploration expenses on the project within a three year period.
After this, Guerrero can earn an additional 10% interest in the property by paying a further $500,000 and incurring another $1.5 million in exploration expenses over one year.
Currently, a drilling program at the Leona target is progressing, with additional holes now underway. Riverside and Guerrero began a 2,000 metre core drilling program earlier this month, with the aim of testing several geochemical and geophysical anomalies identified in prior exploration campaigns.
The geochemical anomaly discovered through soil and rock chip sampling defined a broad target area of 5 kilometers by 3 kilometers, Riverside said.
"Core drilling is an exciting step for the Leona Target at the Chapalota project," said president and CEO of Riverside, John-Mark Staude.
"The surface gold assays combined with IP conductivity and resistivity at the Leona target makes this one of five primary target areas on the 90 square kilometer property."
In addition, the company said that previous small scale mining in the region is an indication that mineralization may be found at depth.
If Guerrero chooses not to take up the additional option, Riverside and Guerrero will form a joint venture, with each company holding a 40% and 60% stake, respectively.
In order to acquire a 60% interest, Guerrero must issue Riverside 1.25 million Guerrero shares, make total cash payments of $200,000, and incur $4.0 million in exploration expenses on the project within a three year period.
After this, Guerrero can earn an additional 10% interest in the property by paying a further $500,000 and incurring another $1.5 million in exploration expenses over one year.
Currently, a drilling program at the Leona target is progressing, with additional holes now underway. Riverside and Guerrero began a 2,000 metre core drilling program earlier this month, with the aim of testing several geochemical and geophysical anomalies identified in prior exploration campaigns.
The geochemical anomaly discovered through soil and rock chip sampling defined a broad target area of 5 kilometers by 3 kilometers, Riverside said.
"Core drilling is an exciting step for the Leona Target at the Chapalota project," said president and CEO of Riverside, John-Mark Staude.
"The surface gold assays combined with IP conductivity and resistivity at the Leona target makes this one of five primary target areas on the 90 square kilometer property."
In addition, the company said that previous small scale mining in the region is an indication that mineralization may be found at depth.
If Guerrero chooses not to take up the additional option, Riverside and Guerrero will form a joint venture, with each company holding a 40% and 60% stake, respectively.
Great Western boosts Q1 revenue, cash on hand
Rare earths processor Great Western Minerals Group (CVE:GWG)(OTC:GWMGF) reported Thursday first quarter financial results, increasing manufacturing and processing revenue by 9%.
Revenue for the first three months of the year grew to $4.24 million, compared to $3.89 million a year earlier. The results include manufacturing and processing revenue from two of the company's subsidiaries, UK-based Less Common Metals, and US-based Great Western Technologies.
Quarterly gross margins on manufacturing and processing operations rose over 3%.
However, net losses widened to $3.23 million, or $0.009 per share, versus $0.7 million, or $0.003 per share, a year earlier. The company said the latest quarter included stock-based compensation expenses of $1.7 million, versus nil, a year prior.
The company's UK-based Less Common Metals (LCM) subsidiary, where its specialty alloys are produced, generated revenue of $4.08 million, up from $3.60 million in the prior year period. Gross margins increased 20.0% compared to the first quarter of 2010, while earnings before interest, taxes, depreciation and amortization rose 30.8%.
"Great Western Minerals continues to see significant improvements in revenue and margin performance in our LCM alloy processing operations," said president and CEO Jim Engdahl.
"As well, our improved cash position relative to the same time last year is important given our company's aggressive development plans at Steenkampskraal and our expansion plans for Less Common Metals.
"The influx of cash from the exercise of outstanding warrants continues to put our company in a much stronger position than has been the case in the past."
Indeed, the company finished the quarter with $14.9 million in cash, which it plans to use to develop its Steenkampskraal rare earth mine in South Africa. In addition to a planned exploration program at Steenkampskraal, Great Western also holds interests in six rare earth exploration properties in North America.
The company's specialty alloys are used in the battery, magnet and aerospace industries, and are produced at its subsidiaries, Less Common Metalsin Birkenhead, U.K., and Great Western Technologies in Troy, Michigan. These alloys contain aluminium, nickel, cobalt and rare earth elements.
Revenue for the first three months of the year grew to $4.24 million, compared to $3.89 million a year earlier. The results include manufacturing and processing revenue from two of the company's subsidiaries, UK-based Less Common Metals, and US-based Great Western Technologies.
Quarterly gross margins on manufacturing and processing operations rose over 3%.
However, net losses widened to $3.23 million, or $0.009 per share, versus $0.7 million, or $0.003 per share, a year earlier. The company said the latest quarter included stock-based compensation expenses of $1.7 million, versus nil, a year prior.
The company's UK-based Less Common Metals (LCM) subsidiary, where its specialty alloys are produced, generated revenue of $4.08 million, up from $3.60 million in the prior year period. Gross margins increased 20.0% compared to the first quarter of 2010, while earnings before interest, taxes, depreciation and amortization rose 30.8%.
"Great Western Minerals continues to see significant improvements in revenue and margin performance in our LCM alloy processing operations," said president and CEO Jim Engdahl.
"As well, our improved cash position relative to the same time last year is important given our company's aggressive development plans at Steenkampskraal and our expansion plans for Less Common Metals.
"The influx of cash from the exercise of outstanding warrants continues to put our company in a much stronger position than has been the case in the past."
Indeed, the company finished the quarter with $14.9 million in cash, which it plans to use to develop its Steenkampskraal rare earth mine in South Africa. In addition to a planned exploration program at Steenkampskraal, Great Western also holds interests in six rare earth exploration properties in North America.
The company's specialty alloys are used in the battery, magnet and aerospace industries, and are produced at its subsidiaries, Less Common Metalsin Birkenhead, U.K., and Great Western Technologies in Troy, Michigan. These alloys contain aluminium, nickel, cobalt and rare earth elements.
Inter-Citic Minerals boosts inferred resources at Dachang gold project
Inter-Citic Minerals (TSE:ICI) (OTC:ICMTF) said Thursday that it has increased inferred resources at its Dachang gold project in China by more than 400,000 ounces of gold, due to the inclusion of new areas.
The updated report, prepared by Micon International, estimated inferred resources of 21.26 million tonnes grading 2.83 grams per tonne, or 1.93 million ounces of contained gold - an increase of around 409,000 ounces over the previous report last July.
This is an addition to estimated measured and indicated resources of 1.88 million ounces of contained gold, or 17.2 million tonnes at a grade of 3.41 grams per tonne (g/t) gold, at a cutoff grade of 0.6 g/t. Total measured and indicated resources remain unchanged from the prior report.
The measured and indicated resources hailed from the Dachang Main Zone and Placer Valley areas, while inferred resources are based on those zones, plus the NR-2 Anomaly and other "Exploration Areas".
In 2010, Toronto-based explorer Inter-Citic conducted a 25,070 metre drill program and a 9,800 metre trenching program focused on expanding the resources outside of the Dachang Main Zone and Placer Valley areas. The new "exploration area" resources are entirely in the inferred category based on the level of information, the company said.
The target zones in these exploration areas include Placer Valley East, Ruby Zone, 861 Zone, XP Zone, Acadia Zone and NR1.
The updated report, prepared by Micon International, estimated inferred resources of 21.26 million tonnes grading 2.83 grams per tonne, or 1.93 million ounces of contained gold - an increase of around 409,000 ounces over the previous report last July.
This is an addition to estimated measured and indicated resources of 1.88 million ounces of contained gold, or 17.2 million tonnes at a grade of 3.41 grams per tonne (g/t) gold, at a cutoff grade of 0.6 g/t. Total measured and indicated resources remain unchanged from the prior report.
The measured and indicated resources hailed from the Dachang Main Zone and Placer Valley areas, while inferred resources are based on those zones, plus the NR-2 Anomaly and other "Exploration Areas".
In 2010, Toronto-based explorer Inter-Citic conducted a 25,070 metre drill program and a 9,800 metre trenching program focused on expanding the resources outside of the Dachang Main Zone and Placer Valley areas. The new "exploration area" resources are entirely in the inferred category based on the level of information, the company said.
The target zones in these exploration areas include Placer Valley East, Ruby Zone, 861 Zone, XP Zone, Acadia Zone and NR1.
Kilo reports 4.39 g/t gold over 32 metres at Somituri project
Kilo Goldmines (CVE:KGL) announced Thursday it found wide zones of high grade gold on its Manzako prospect at the Somituri project in the Democratic Republic of Congo (DRC).
The Canadian exploration company found 4.39 grams per tonne (g/t) gold over 31.7 metres, including 8.99 g/t gold over 13.6 metres, in hole SMTR003.
The company said the results are encouraging, as the trench has not traversed the entire mineralized zone.
"The wide gold zone delineated by trench SMTR0003 was unexpected on a prospect that to date has only returned high gold values over narrow widths, consistent with the historical data," said Kilo chairman, Peter Hooper.
"These new results are very encouraging and indicate that detailed exploration may discover additional wide zone(s) of high grade gold."
The initial and last sample in trench SMTR003 returned 0.43 g/t gold and 3.23 g/t gold, respectively, which suggests that the limits of the mineralized zone have not been determined, Kilo said. The trench will therefore be extended in both directions.
Kilo completed six trenches over 235.1 metres in an initial program to evaluate both current and historical sites of gold exploitation.
Other trench highlights included 5.03 g/t gold over 1.0 metre in trench SMTR005; and 0.52 g/t gold over 7.1 metres in SMTR001.
Soil sampling is currently underway over the entire Manzako prospect to define the distribution of gold mineralization, guiding further trenching and drilling programs.
Manzako is characterized by a series of parallel gold bearing quartz veins over a 2.5 kilometre strike length, and a width of 500 metres.
Kilo has a 71.25% interest in the Somituri project, which consists of eight exploitation licenses, valid until 2039, within the Ngayu Greenstone Belt. 2010 drilling on the Adumbi gold deposit delineated a gold zone with an NI 43-101 compliant inferred resource estimate of 2.03 million ounces.
The Canadian exploration company found 4.39 grams per tonne (g/t) gold over 31.7 metres, including 8.99 g/t gold over 13.6 metres, in hole SMTR003.
The company said the results are encouraging, as the trench has not traversed the entire mineralized zone.
"The wide gold zone delineated by trench SMTR0003 was unexpected on a prospect that to date has only returned high gold values over narrow widths, consistent with the historical data," said Kilo chairman, Peter Hooper.
"These new results are very encouraging and indicate that detailed exploration may discover additional wide zone(s) of high grade gold."
The initial and last sample in trench SMTR003 returned 0.43 g/t gold and 3.23 g/t gold, respectively, which suggests that the limits of the mineralized zone have not been determined, Kilo said. The trench will therefore be extended in both directions.
Kilo completed six trenches over 235.1 metres in an initial program to evaluate both current and historical sites of gold exploitation.
Other trench highlights included 5.03 g/t gold over 1.0 metre in trench SMTR005; and 0.52 g/t gold over 7.1 metres in SMTR001.
Soil sampling is currently underway over the entire Manzako prospect to define the distribution of gold mineralization, guiding further trenching and drilling programs.
Manzako is characterized by a series of parallel gold bearing quartz veins over a 2.5 kilometre strike length, and a width of 500 metres.
Kilo has a 71.25% interest in the Somituri project, which consists of eight exploitation licenses, valid until 2039, within the Ngayu Greenstone Belt. 2010 drilling on the Adumbi gold deposit delineated a gold zone with an NI 43-101 compliant inferred resource estimate of 2.03 million ounces.
NQ Exploration makes first appointment to advisory board
NQ Exploration (CVE:NQE) announced Wednesday that it has appointed Michel Gauthier to its advisory board.
In his new role, Gauthier will act as technical consultant. His past work experience, working as a consultant and professor of economic geology, has given him knowledge of many types of deposits, the company said, having co-founded the Eleonor project in James Bay.
The engineering geologist brings 40 years of experience in mining exploration. In 1982, he graduated from Ecole Polytechnique, with a doctoral degree in geophysics.
Gauthier also acquired mineral industry management experience as a mining portfolio manager for the Fonds Solidarite FTQ, and as a technical consultant for legal and brokerage firms.
Quebec-based NQ Exploration is a mineral and exploration company with a solid portfolio of 11 mining properties in the James Bay and Abitibi regions of Quebec.
In his new role, Gauthier will act as technical consultant. His past work experience, working as a consultant and professor of economic geology, has given him knowledge of many types of deposits, the company said, having co-founded the Eleonor project in James Bay.
The engineering geologist brings 40 years of experience in mining exploration. In 1982, he graduated from Ecole Polytechnique, with a doctoral degree in geophysics.
Gauthier also acquired mineral industry management experience as a mining portfolio manager for the Fonds Solidarite FTQ, and as a technical consultant for legal and brokerage firms.
Quebec-based NQ Exploration is a mineral and exploration company with a solid portfolio of 11 mining properties in the James Bay and Abitibi regions of Quebec.
Edgewater completes final tranche of $11m private placement financing
Edgewater Exploration (CVE:EDW) said on Wednesday that it has finalized the second and final tranche of its previously announced non-brokered private placement of $11 million.
The final tranche consisted of the remaining 720,000 units at 80 cents per unit, for a sum total of $576,000, completing a combined sale of 13.75 million units for gross proceeds of $11 million.
Each unit consists of one common share and one half of a common share purchase warrant, with each whole warrant giving the holder the right to buy an additional share for $1.10 for a period of 24 months from the closing date.
The first tranche of the private placement consisted of 13 million units at 80 cents each for gross proceeds of $10.42 million.
Kinross Gold (TSE: K) (NYSE: KGC) purchased 625,000 units in connection with the first tranche, and holds 12.7% of Edgewater’s outstanding shares, should the company exercise its warrants.
Edgewater paid a cash finder's fee of $582,400 and issued 121,062 common shares in connection with financing.
The company said it has $18.5 million in the treasury and 66.68 million common shares issued and outstanding, after the completion of the offering.
Proceeds will be used to advance the company’s Corcoesto gold project in northwest Spain, as well as its Enchi property in Ghana, West Africa.
Edgewater is a mineral exploration company focused on the development of precious metal properties.
The final tranche consisted of the remaining 720,000 units at 80 cents per unit, for a sum total of $576,000, completing a combined sale of 13.75 million units for gross proceeds of $11 million.
Each unit consists of one common share and one half of a common share purchase warrant, with each whole warrant giving the holder the right to buy an additional share for $1.10 for a period of 24 months from the closing date.
The first tranche of the private placement consisted of 13 million units at 80 cents each for gross proceeds of $10.42 million.
Kinross Gold (TSE: K) (NYSE: KGC) purchased 625,000 units in connection with the first tranche, and holds 12.7% of Edgewater’s outstanding shares, should the company exercise its warrants.
Edgewater paid a cash finder's fee of $582,400 and issued 121,062 common shares in connection with financing.
The company said it has $18.5 million in the treasury and 66.68 million common shares issued and outstanding, after the completion of the offering.
Proceeds will be used to advance the company’s Corcoesto gold project in northwest Spain, as well as its Enchi property in Ghana, West Africa.
Edgewater is a mineral exploration company focused on the development of precious metal properties.
Wednesday 29 June 2011
Mindax to raise up to A$7.57m from partially underwritten rights issue
Mindax (ASX: MDX) has revised the terms of its pro-rata rights issue first proposed on April 14 after consultation with the company's advisers and consideration of current market conditions.
The rights issue seeks to raise A$7,575,000 through a renounceable offer of one new share for every five shares held on the record date of 18 July 2011 at $0.25 per share, together with one free attaching new "piggyback" option for every new share issued.
The funds will be used to progress exploration and development of the company's Mt Forrest Iron Project, particularly the direct shipping ore (DSO) component.
The rights issue has been partially underwritten by Patersons Securities up to $4.75 million and investor Ms Lei You will sub-underwrite up to 50% of any shortfall.
Mindax's Mt Forrest Iron Project in the Central Yilgarn Iron Province of Western Australia is progressing through development with a view to moving towards a mining phase.
The company is putting in place necessary approvals and aligning infrastructure partners including rail and port.
On May 11 Mindax upped the ante at the project by finding mag-hematite mineralisation overlying the primary magnetite resources.
The importance of this find was significant as it will likely have a positive impact on the Mt Forrest project with earlier startup and earlier bonus cashflows now targeted for the second half of 2013.
The Mt Forrest Iron Project is located 150 kilometres northwest of the town of Menzies and has a shallow JORC Indicated and Inferred mag-hematite resource of 19 million tonnes (Mt) at 42.30% iron (Fe) with low phosphorous content.
There is an additional exploration target of mag-hematite mineralisation of 15Mt to 30 Mt at an expected grade of 42% to 58% Fe and it is beneficiable to DSO equivalent product on preliminary metallurgical advice.
Mindax aims to quantify a strong business case within the scoping study for a 30 year mine life and likely advancing the project directly to a Prefeasibility Study.
An initial DSO operation could exploit 4.5 million tonnes at 54% with just under 66% already in the indicated category. The DSO could be a handy early cash flow earner for the project.
The underwriting of the rights issue includes a commitment from Gilbert George (a non-executive director of Mindax) to sub-underwrite up to 1 million securities of any shortfall.
Andrew Tsang, also a non-executive director of Mindax, intends to take up his own entitlement of 6,446,022 new shares and new options in full, representing 21.27% of the rights issue.
The new shares will rank equally in all respect from the date of allotment with the existing class of quoted ordinary shares.
The new options will represent a new class of options and will comprise a primary option with an exercise price of $0.30 that will be exercisable during April 2012, expiring on 30 April 2012.
The new option is exercisable into one ordinary share and also one secondary option with an exercise price of $0.35 cents and an expiry date of 31 May 2015.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17537/mindax-to-raise-up-to-a757m-from-partially-underwritten-rights-issue-17537.html
The rights issue seeks to raise A$7,575,000 through a renounceable offer of one new share for every five shares held on the record date of 18 July 2011 at $0.25 per share, together with one free attaching new "piggyback" option for every new share issued.
The funds will be used to progress exploration and development of the company's Mt Forrest Iron Project, particularly the direct shipping ore (DSO) component.
The rights issue has been partially underwritten by Patersons Securities up to $4.75 million and investor Ms Lei You will sub-underwrite up to 50% of any shortfall.
Mindax's Mt Forrest Iron Project in the Central Yilgarn Iron Province of Western Australia is progressing through development with a view to moving towards a mining phase.
The company is putting in place necessary approvals and aligning infrastructure partners including rail and port.
On May 11 Mindax upped the ante at the project by finding mag-hematite mineralisation overlying the primary magnetite resources.
The importance of this find was significant as it will likely have a positive impact on the Mt Forrest project with earlier startup and earlier bonus cashflows now targeted for the second half of 2013.
The Mt Forrest Iron Project is located 150 kilometres northwest of the town of Menzies and has a shallow JORC Indicated and Inferred mag-hematite resource of 19 million tonnes (Mt) at 42.30% iron (Fe) with low phosphorous content.
There is an additional exploration target of mag-hematite mineralisation of 15Mt to 30 Mt at an expected grade of 42% to 58% Fe and it is beneficiable to DSO equivalent product on preliminary metallurgical advice.
Mindax aims to quantify a strong business case within the scoping study for a 30 year mine life and likely advancing the project directly to a Prefeasibility Study.
An initial DSO operation could exploit 4.5 million tonnes at 54% with just under 66% already in the indicated category. The DSO could be a handy early cash flow earner for the project.
The underwriting of the rights issue includes a commitment from Gilbert George (a non-executive director of Mindax) to sub-underwrite up to 1 million securities of any shortfall.
Andrew Tsang, also a non-executive director of Mindax, intends to take up his own entitlement of 6,446,022 new shares and new options in full, representing 21.27% of the rights issue.
The new shares will rank equally in all respect from the date of allotment with the existing class of quoted ordinary shares.
The new options will represent a new class of options and will comprise a primary option with an exercise price of $0.30 that will be exercisable during April 2012, expiring on 30 April 2012.
The new option is exercisable into one ordinary share and also one secondary option with an exercise price of $0.35 cents and an expiry date of 31 May 2015.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17537/mindax-to-raise-up-to-a757m-from-partially-underwritten-rights-issue-17537.html
Latin Resources appoints Snowden for JORC Resource estimate at Guadalupito
Latin Resources (ASX: LRS) continues to move the Guadalupito Project in Peru forward, and has now appointed the Snowden Group to conduct a JORC Resource estimate.
The Inferred estimate is forecast to be completed in September 2011, with a Scoping Study due later this year.
Guadalupito is the most advanced of Latin's projects and has the potential to become a world class Iron and Heavy Mineral Sand project, with the company recently announcing a conceptual exploration target of about two billion tonnes.
The project is located in proximity to high quality infrastructure, significantly just 25 kilometres from Chimbote, home to major Port of Chimbote and one of the largest steel smelters in the country owned by the Brazilian Gerdau Group, the largest long steel producer in the Americas.
Importantly for the project returns, capital costs are expected to be low as only very simple beneficiation will be required due to extensive weathering.
Also - magnetite with a low titanium content has been confirmed as the dominant magnetic mineral.
Adding to the potential of the project is the iron and titanium content of two magnetic concentrates were 64% and 5% respectively, with discrete liberated mineral grains of recoverable size of gold, monazite, zircon, ilmenite and wolframite have been identified, with quantities of the rare earth elements lanthanum, cerium and neodymium.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17534/latin-resources-appoints-snowden-for-jorc-resource-estimate-at-guadalupito-17534.html
The Inferred estimate is forecast to be completed in September 2011, with a Scoping Study due later this year.
Guadalupito is the most advanced of Latin's projects and has the potential to become a world class Iron and Heavy Mineral Sand project, with the company recently announcing a conceptual exploration target of about two billion tonnes.
The project is located in proximity to high quality infrastructure, significantly just 25 kilometres from Chimbote, home to major Port of Chimbote and one of the largest steel smelters in the country owned by the Brazilian Gerdau Group, the largest long steel producer in the Americas.
Importantly for the project returns, capital costs are expected to be low as only very simple beneficiation will be required due to extensive weathering.
Also - magnetite with a low titanium content has been confirmed as the dominant magnetic mineral.
Adding to the potential of the project is the iron and titanium content of two magnetic concentrates were 64% and 5% respectively, with discrete liberated mineral grains of recoverable size of gold, monazite, zircon, ilmenite and wolframite have been identified, with quantities of the rare earth elements lanthanum, cerium and neodymium.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17534/latin-resources-appoints-snowden-for-jorc-resource-estimate-at-guadalupito-17534.html
TNG completes initial large tonnage copper targeted exploration at McArthur River
TNG (ASX: TNG) has now completed the initial program of mapping, rock chip sampling and soil sampling at the McArthur River Project, located in the Northern Territory.
TNG is targeting large-tonnage, sedimentary-hosted copper deposits, with the company focus on historic prospects and geophysical targets.
There are currently two major copper targets at the tenement, Kilgour Crossing and Donkey Yard, with both containing historic rock chips of up to 1.9% copper.
In addition to these high priority prospects, the reconnaissance program also covered six previously-identified geophysical targets and two copper occurrences identified by the Northern Territory Geological Survey (NTGS).
This also included numerous other prospective copper targets identified from previous stream sampling results and prospective geology
TNG's exploration program at McArthur River is aimed at discovering large-scale sedimentary-hosted copper deposits similar to Mount Isa and Gunpowder in Queensland, and the large copper deposits of Zambia and the Democratic Republic of Congo.
In other TNG news, negotiations are progressing with traditional owners to commence exploration at the nearby Yah Yah Copper Mine.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17533/tng-completes-initial-large-tonnage-copper-targeted-exploration-at-mcarthur-river-17533.html
TNG is targeting large-tonnage, sedimentary-hosted copper deposits, with the company focus on historic prospects and geophysical targets.
There are currently two major copper targets at the tenement, Kilgour Crossing and Donkey Yard, with both containing historic rock chips of up to 1.9% copper.
In addition to these high priority prospects, the reconnaissance program also covered six previously-identified geophysical targets and two copper occurrences identified by the Northern Territory Geological Survey (NTGS).
This also included numerous other prospective copper targets identified from previous stream sampling results and prospective geology
TNG's exploration program at McArthur River is aimed at discovering large-scale sedimentary-hosted copper deposits similar to Mount Isa and Gunpowder in Queensland, and the large copper deposits of Zambia and the Democratic Republic of Congo.
In other TNG news, negotiations are progressing with traditional owners to commence exploration at the nearby Yah Yah Copper Mine.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17533/tng-completes-initial-large-tonnage-copper-targeted-exploration-at-mcarthur-river-17533.html
Dragon Mining in pre-open pending 'significant' drill results at Kuusamo gold project
Dragon Mining (ASX: DRA) has been granted a trading halt by the ASX pending an announcement relating to a 'significant drill result from the Kuusamo gold project in Finland', with the company's shares placed in pre-open.
Kuusamo has recently been providing Dragon with some major gold hits, with the company earlier in the month reporting intercepts including:
- 7.30 metres at 8.18 grams per tonne (g/t) gold from 48 metres;
- 9.95 metres at 3.81g/t gold from 196 metres; and
- 7.40 metres at 3.59g/t gold from 194 metres.
Kuusamo is located 700 kilometres northeast of Helsinki, and comprises a series of tenements with a combined Indicated and Inferred Resource of; 2.19 million tonnes at 5.4g/t gold for 383,500 ounces.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17532/dragon-mining-in-pre-open-pending-significant-drill-results-at-kuusamo-gold-project-17532.html
Kuusamo has recently been providing Dragon with some major gold hits, with the company earlier in the month reporting intercepts including:
- 7.30 metres at 8.18 grams per tonne (g/t) gold from 48 metres;
- 9.95 metres at 3.81g/t gold from 196 metres; and
- 7.40 metres at 3.59g/t gold from 194 metres.
Kuusamo is located 700 kilometres northeast of Helsinki, and comprises a series of tenements with a combined Indicated and Inferred Resource of; 2.19 million tonnes at 5.4g/t gold for 383,500 ounces.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17532/dragon-mining-in-pre-open-pending-significant-drill-results-at-kuusamo-gold-project-17532.html
Exco Resources finalises sale of Cloncurry Copper Project to Xstrata
Exco Resources (ASX: EXS) has completed the sale of the Cloncurry Copper Project to Xstrata for $175 million, allowing the company to realise early value from the project.
The company decided to sell the project rather than continue down the path to full development which can take many years. However, Exco still maintains a significant ground holding in the Cloncurry area, which hosts the highly prospective Hazel Creek copper gold project.
Exco’s current cash balance now stands at $220 million (pre-tax) which equates to about $0.62 per share, fully diluted. The company now aims to return $135 million ($0.39 per share, fully diluted) to Exco shareholders by 31st October 2011.
The $135 million will be returned in two steps comprising an initial return of capital to an amount as permitted under taxation legislation, and subject to Exco shareholder approval, with the balance then returned as a fully franked dividend.
Exco is not only well funded for exploration, but has also outlined the possibility of an acquisition or farm-in in the near future, with these projects not necessarily having a copper focus.
The cash retained by the company will fund the growth of its remaining asset base which will involve an initial exploration program of up to $10 million for its remaining tenements in the Cloncurry, Hazel Creek, and Soldiers Cap project areas in north west Queensland.
Exploration activity is underway on a number of priority targets and is scheduled to continue with two drill rigs in action in Queensland. The company is bullish that it can replicate previous drilling success and expects a steady flow of good news in the coming months.
In addition, Exco is set to start receiving cash flow from the Great Australia royalty, with payments expected to gross around $30 million based on a copper price of US$4.20 a pound.
Exco is currently arranging the procurement of a class ruling on the tax treatment of the return from the Australian Taxation Office.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17531/exco-resources-finalises-sale-of-cloncurry-copper-project-to-xstrata--17531.html
The company decided to sell the project rather than continue down the path to full development which can take many years. However, Exco still maintains a significant ground holding in the Cloncurry area, which hosts the highly prospective Hazel Creek copper gold project.
Exco’s current cash balance now stands at $220 million (pre-tax) which equates to about $0.62 per share, fully diluted. The company now aims to return $135 million ($0.39 per share, fully diluted) to Exco shareholders by 31st October 2011.
The $135 million will be returned in two steps comprising an initial return of capital to an amount as permitted under taxation legislation, and subject to Exco shareholder approval, with the balance then returned as a fully franked dividend.
Exco is not only well funded for exploration, but has also outlined the possibility of an acquisition or farm-in in the near future, with these projects not necessarily having a copper focus.
The cash retained by the company will fund the growth of its remaining asset base which will involve an initial exploration program of up to $10 million for its remaining tenements in the Cloncurry, Hazel Creek, and Soldiers Cap project areas in north west Queensland.
Exploration activity is underway on a number of priority targets and is scheduled to continue with two drill rigs in action in Queensland. The company is bullish that it can replicate previous drilling success and expects a steady flow of good news in the coming months.
In addition, Exco is set to start receiving cash flow from the Great Australia royalty, with payments expected to gross around $30 million based on a copper price of US$4.20 a pound.
Exco is currently arranging the procurement of a class ruling on the tax treatment of the return from the Australian Taxation Office.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17531/exco-resources-finalises-sale-of-cloncurry-copper-project-to-xstrata--17531.html
Blackthorn Resources new drilling at Mumbwa targeting copper resource upgrade
Blackthorn Resources (ASX: BTR) has planned an extensive 7000 metre drilling campaign targeting a boost in confidence levels in the existing resource while achieving an upgrade at the Mumbwa Project in Zambia.
Highlighting the prospectivity of the project, the new drilling will infill in close proximity to the substantial 2008 hit of; 401 metres at a weighted grade of 0.98% copper from 62 metres.
This section included 270 metres at 1.37% copper, and also 4 metres at 19.5% copper.
The Phase 5 program will cover 14 holes and has a A$5 million budget which will allow three months of drilling before the commencement of the wet season.
Drilling will also test the down-dip extension of the mineral resource which Blackthorn considers open at depth, along with step-out drilling.
Blackthorn will also commence a high level Concept Study on the Kitumba resource, with the deposit currently holding an Inferred JORC Resource of 87 million tonnes at 0.94% copper, using a 0.5% cut-off.
Scott Lowe, managing director, said "While the JV between Blackthorn Resources and BHP Billiton (ASX: BHP) is in the process of being terminated, the companies are continuing to work very closely to ensure a smooth transition in the licence transfer process.
"This period is an exciting time for the company and our objective is to add further value to Blackthorn Resources’ current mineral resource inventory of copper.”
The exploration program has been designed by the MSA Group and overseen by the experienced Dr Tom Whiting who is a consultant to the company, and was formerly vice president of exploration (Minerals Division) with BHP Billiton.
Future drilling will also include exploration ‘scout’ holes on various targets within the Mumbwa licence area, which were generated by re-modelling the previous FALCON™ gravity and magnetic data.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17530/blackthorn-resources-new-drilling-at-mumbwa-targeting-copper-resource-upgrade-17530.html
Highlighting the prospectivity of the project, the new drilling will infill in close proximity to the substantial 2008 hit of; 401 metres at a weighted grade of 0.98% copper from 62 metres.
This section included 270 metres at 1.37% copper, and also 4 metres at 19.5% copper.
The Phase 5 program will cover 14 holes and has a A$5 million budget which will allow three months of drilling before the commencement of the wet season.
Drilling will also test the down-dip extension of the mineral resource which Blackthorn considers open at depth, along with step-out drilling.
Blackthorn will also commence a high level Concept Study on the Kitumba resource, with the deposit currently holding an Inferred JORC Resource of 87 million tonnes at 0.94% copper, using a 0.5% cut-off.
Scott Lowe, managing director, said "While the JV between Blackthorn Resources and BHP Billiton (ASX: BHP) is in the process of being terminated, the companies are continuing to work very closely to ensure a smooth transition in the licence transfer process.
"This period is an exciting time for the company and our objective is to add further value to Blackthorn Resources’ current mineral resource inventory of copper.”
The exploration program has been designed by the MSA Group and overseen by the experienced Dr Tom Whiting who is a consultant to the company, and was formerly vice president of exploration (Minerals Division) with BHP Billiton.
Future drilling will also include exploration ‘scout’ holes on various targets within the Mumbwa licence area, which were generated by re-modelling the previous FALCON™ gravity and magnetic data.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17530/blackthorn-resources-new-drilling-at-mumbwa-targeting-copper-resource-upgrade-17530.html
Dragon Mining intercepts more high grade gold at Orivesi mine in Finland
Dragon Mining (ASX: DRA) has intercepted further high grade gold from drilling at the Sarvisuo West area at the Orivesi Gold Mine in southern Finland, in holes that are near to the existing underground development.
Highlights include 1.75 metres at 27.16 grams per tonne (g/t) gold, 1.80 metres at 9.26 g/t gold and 8.35 metres at 4.67 g/t gold.
Orivesi is of strategic importance to the company as it is located only 80 kilometres northeast of the Vammala Production Centre, which currently processes ore from Orivesi, and will soon process ore sourced from the Jokisivu Gold Mine.
The planned 45 hole, 8,100 metre program is on-going, and is being undertaken from drill stations located on the 525 metre and 710 metre drives. A total of 38 holes have been completed and analysis for gold has been received for 35 holes.
The mine was initially in operation between 1992 and 2003 and produced 422,000 ounces of gold from a series of near vertical pipe-like lodes at Kutema, with the ore processed at the Vammala Production Centre.
Two of the five principal lodes at Kutema continue beyond the historical extent of the decline at the 720 metre level into the Kutema Deeps area.
This area is now subject to a program of staged development, with the initial stage extending from the 720 metre to the 800 metre level.
In December 2010 Dragon committed to the development of the Kutema Deeps deposit at the Orivesi Gold Mine, considering it an important milestone as the resource will provide for a five year mine life at Orivesi.
An internal study completed on Kutema Deeps shows a robust project with a significant return on capital over at least the next five years.
The Orivesi Gold Mine hosts a Measured, Indicated and Inferred Resource totalling 220,700 ounces grading 5.9 g/t gold.
The Vammala Plant is a 600,000 tonne per annum crushing, milling and flotation facility which was successfully recommissioned in June 2007 and is being operated on a 24 hour basis, 6 days on, 4 days off roster.
The environmental permit for the Vammala Production Centre is valid until 2016.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17529/dragon-mining-intercepts-more-high-grade-gold-at-orivesi-mine-in-finland-17529.html
Highlights include 1.75 metres at 27.16 grams per tonne (g/t) gold, 1.80 metres at 9.26 g/t gold and 8.35 metres at 4.67 g/t gold.
Orivesi is of strategic importance to the company as it is located only 80 kilometres northeast of the Vammala Production Centre, which currently processes ore from Orivesi, and will soon process ore sourced from the Jokisivu Gold Mine.
The planned 45 hole, 8,100 metre program is on-going, and is being undertaken from drill stations located on the 525 metre and 710 metre drives. A total of 38 holes have been completed and analysis for gold has been received for 35 holes.
The mine was initially in operation between 1992 and 2003 and produced 422,000 ounces of gold from a series of near vertical pipe-like lodes at Kutema, with the ore processed at the Vammala Production Centre.
Two of the five principal lodes at Kutema continue beyond the historical extent of the decline at the 720 metre level into the Kutema Deeps area.
This area is now subject to a program of staged development, with the initial stage extending from the 720 metre to the 800 metre level.
In December 2010 Dragon committed to the development of the Kutema Deeps deposit at the Orivesi Gold Mine, considering it an important milestone as the resource will provide for a five year mine life at Orivesi.
An internal study completed on Kutema Deeps shows a robust project with a significant return on capital over at least the next five years.
The Orivesi Gold Mine hosts a Measured, Indicated and Inferred Resource totalling 220,700 ounces grading 5.9 g/t gold.
The Vammala Plant is a 600,000 tonne per annum crushing, milling and flotation facility which was successfully recommissioned in June 2007 and is being operated on a 24 hour basis, 6 days on, 4 days off roster.
The environmental permit for the Vammala Production Centre is valid until 2016.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17529/dragon-mining-intercepts-more-high-grade-gold-at-orivesi-mine-in-finland-17529.html
Greenearth Energy enters agreement to develop CO2 to fuel conversion technology
Greenearth Energy (ASX:GER) has secured an exclusive worldwide research and licence agreement with Yeda Research and Development Co. Ltd. for a revolutionary technology that has the ability to convert carbon dioxide emissions into fuel.
The company has concluded negotiations with Yeda, the commercial arm of Israel’s Weizmann Institute of Science, and will assign the licence to subsidiary company NewCo2Fuels Ltd.
Greenearth Energy’s CO2 to fuel conversion technology has the potential to reduce emissions substantially utilising low cost generation facilities and resources while at the same time potentially offsetting substantial future power cost increases.
The technology concept, developed in Israel by Professor Jacob Karni and his group at the Weizmann Institute of Science, has been proven in laboratory trials.
Mark Miller, managing director of Greenearth Energy, said "We have been working with Professor Karni and the Weizmann Institute's commercialisation arm Yeda for the past 12 months to bring this project collaboration to fruition.
"We are both excited by the obvious and substantial potential that this project holds and honoured to work alongside a world class institute and team."
Greenearth believes the potential to turn global CO2 emissions into an opportunity by way of producing commercially viable fuel represents "a paradigm shift in the way society views and deals with one of our greatest challenges."
The technology has the potential to be "a viable alternative to CO2 sequestration and shift our thinking and approach to global CO2 emissions."
Greenearth Energy has taken the initiative to invest in the development of this breakthrough technology at a time when Australia is hotly debating a carbon tax.
Victoria’s energy mix is dominated by brown coal generation accounting for more that 90% of the States power and over 50% of its CO2 emissions.
The transaction documentation executed includes the research and licence agreement, an investment agreement for the establishment of a company in Israel to help develop the technology (to which the worldwide licence will be transferred) and a funding and option agreement with Erdi Fuels Pty Ltd.
The Technology
The technology involves a new method of using concentrated solar energy for the dissociation of carbon dioxide (CO2) to carbon monoxide (CO) and oxygen (O2). The same system can also dissociate water (H2O) to hydrogen (H2) and oxygen (O2), at the same time it dissociates the CO2.
The CO, or the mixture of CO and H2 called Syngas, can then be used as gaseous fuel in power plants, or converted to liquid fuel such as methanol.
Impressively, the fuel has the potential to be stored, transported and used in motor vehicles and the oxygen produced can be used in the combustion of the clean fuel, or elsewhere.
Greenearth said the key to delivering low cost clean fuel is a highly efficient process of converting solar radiation to chemical potential in the form of fuel.
The technology process is aimed at achieving this goal. The source of carbon dioxide for the process could be existing power plants, cement factories and other emitting industries.
The fuel produced could potentially be recycled back into the plant from which it was created or be utilized as transportation fuel. By doing this the plants could substantially reduce the CO2 emissions.
Funding
Greenearth Energy's subsidiary company NewCo2Fuels Pty Ltd will fund the development of the project from the laboratory into the field.
Research will be performed under the supervision of Professor Karni, utilizing the Weizmann Institute’s world class solar tower and solar field facilities to generate fuel with the energy input being concentrated solar energy.
Funding for the initial stage of the project (US$5.5 million) will be generated by way of a combination of a placement in Greenearth Energy to Erdi Fuels Pty Ltd for 10% of the company's issued capital (being 8,093,297 shares at $0.1171 each, representing a $0.0511 or 77.42% premium to the share price as at 29 June 2011) and an option payment by Erdi Fuels Pty Ltd.
The option is for the acquisition of the shares of NewCo2Fuels, the licensee (following assignment) of the worldwide rights to the technology, should the project prove commercially viable, in return for which Greenearth Energy and its subsidiaries will receive a substantial capital sum and an ongoing royalty stream from future product sales.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17528/greenearth-energy-enters-agreement-to-develop-co2-to-fuel-conversion-technology-17528.html
The company has concluded negotiations with Yeda, the commercial arm of Israel’s Weizmann Institute of Science, and will assign the licence to subsidiary company NewCo2Fuels Ltd.
Greenearth Energy’s CO2 to fuel conversion technology has the potential to reduce emissions substantially utilising low cost generation facilities and resources while at the same time potentially offsetting substantial future power cost increases.
The technology concept, developed in Israel by Professor Jacob Karni and his group at the Weizmann Institute of Science, has been proven in laboratory trials.
Mark Miller, managing director of Greenearth Energy, said "We have been working with Professor Karni and the Weizmann Institute's commercialisation arm Yeda for the past 12 months to bring this project collaboration to fruition.
"We are both excited by the obvious and substantial potential that this project holds and honoured to work alongside a world class institute and team."
Greenearth believes the potential to turn global CO2 emissions into an opportunity by way of producing commercially viable fuel represents "a paradigm shift in the way society views and deals with one of our greatest challenges."
The technology has the potential to be "a viable alternative to CO2 sequestration and shift our thinking and approach to global CO2 emissions."
Greenearth Energy has taken the initiative to invest in the development of this breakthrough technology at a time when Australia is hotly debating a carbon tax.
Victoria’s energy mix is dominated by brown coal generation accounting for more that 90% of the States power and over 50% of its CO2 emissions.
The transaction documentation executed includes the research and licence agreement, an investment agreement for the establishment of a company in Israel to help develop the technology (to which the worldwide licence will be transferred) and a funding and option agreement with Erdi Fuels Pty Ltd.
The Technology
The technology involves a new method of using concentrated solar energy for the dissociation of carbon dioxide (CO2) to carbon monoxide (CO) and oxygen (O2). The same system can also dissociate water (H2O) to hydrogen (H2) and oxygen (O2), at the same time it dissociates the CO2.
The CO, or the mixture of CO and H2 called Syngas, can then be used as gaseous fuel in power plants, or converted to liquid fuel such as methanol.
Impressively, the fuel has the potential to be stored, transported and used in motor vehicles and the oxygen produced can be used in the combustion of the clean fuel, or elsewhere.
Greenearth said the key to delivering low cost clean fuel is a highly efficient process of converting solar radiation to chemical potential in the form of fuel.
The technology process is aimed at achieving this goal. The source of carbon dioxide for the process could be existing power plants, cement factories and other emitting industries.
The fuel produced could potentially be recycled back into the plant from which it was created or be utilized as transportation fuel. By doing this the plants could substantially reduce the CO2 emissions.
Funding
Greenearth Energy's subsidiary company NewCo2Fuels Pty Ltd will fund the development of the project from the laboratory into the field.
Research will be performed under the supervision of Professor Karni, utilizing the Weizmann Institute’s world class solar tower and solar field facilities to generate fuel with the energy input being concentrated solar energy.
Funding for the initial stage of the project (US$5.5 million) will be generated by way of a combination of a placement in Greenearth Energy to Erdi Fuels Pty Ltd for 10% of the company's issued capital (being 8,093,297 shares at $0.1171 each, representing a $0.0511 or 77.42% premium to the share price as at 29 June 2011) and an option payment by Erdi Fuels Pty Ltd.
The option is for the acquisition of the shares of NewCo2Fuels, the licensee (following assignment) of the worldwide rights to the technology, should the project prove commercially viable, in return for which Greenearth Energy and its subsidiaries will receive a substantial capital sum and an ongoing royalty stream from future product sales.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17528/greenearth-energy-enters-agreement-to-develop-co2-to-fuel-conversion-technology-17528.html
Lynas Corporation in trading halt pending 'independent review' of Malaysian plant
Lynas Corporation (ASX: LYC, OTC: LYSDY) has been granted a trading halt by the ASX pending an update concerning the 'independent technical review' of the company's plant in Malaysia.
Lynas earlier in the month updated the market on the plant, known as Lynas Advanced Materials Plant (LAMP), which is currently under construction in the Gebeng Industrial Estate, near Kuantan, Malaysia.
The company said in the first week of June, the IAEA concluded the independent expert mission to Malaysia to review radiation safety at the LAMP.
The ten member review team held technical meetings as well as numerous sessions to gather public views and hear concerns about the facility.
The team also met Lynas project staff and visited the construction site during the week-long mission, which was carried out at the invitation of the Malaysian Government.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17526/lynas-corporation-in-trading-halt-pending-independent-review-of-malaysian-plant-17526.html
Lynas earlier in the month updated the market on the plant, known as Lynas Advanced Materials Plant (LAMP), which is currently under construction in the Gebeng Industrial Estate, near Kuantan, Malaysia.
The company said in the first week of June, the IAEA concluded the independent expert mission to Malaysia to review radiation safety at the LAMP.
The ten member review team held technical meetings as well as numerous sessions to gather public views and hear concerns about the facility.
The team also met Lynas project staff and visited the construction site during the week-long mission, which was carried out at the invitation of the Malaysian Government.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17526/lynas-corporation-in-trading-halt-pending-independent-review-of-malaysian-plant-17526.html
Universal Coal draft BFS indicates positive economics at Kangala thermal coal mine
Universal Coal (ASX: UNV) continues to deliver a positive news flow from the company's South African operations, with the draft Bankable Feasibility Study (BFS) for the Kangala project showing positive economics.
Universal is targeting at Kangala an initial 3 million tonne per annum run-of-mine open pit coal operation.
The first draft of the BFS from AMEC-Minproc indicates positive economics for Kangala in its current proposed form, with the results currently being reviewed by senior management, with recommendations to be made to the board.
The results are expected to be further optimised over the next couple of weeks.
The Kangala mine will produce both an Eskom grade and 5,400 Kcal/kg grade thermal coal from a Phase 1 operation, from within the open pit reserve area.
Importantly, Universal Coal is continuing discussions with various companies that have resources or mining operations in close proximity to the Kangala project that could lead to an upward revision of the potential returns identified by AMEC- Minproc in the draft study.
Tony Harwood, chairman, is very encouraged by the draft results commenting, “We are pleased with the positive draft results of the report received from AMEC-MinProc and we will be reviewing this study to improve further the project economics.
"We are also investigating various options and opportunities to add significantly to the Kangala project and create value to benefit this exciting project."
Universal Coal and will now proceed to review and optimize the project in order to improve the already positive techno-economics and to improve the level of engineering and estimate accuracy.
The final BFS is expected by the end of September 2011.
Adding some spice to Kangala is drilling will commence adjacent to the planned Kangala open pit area aimed at bringing 69 million tonnes of Inferred resources to the much higher confidence Measured category.
Universal said these resources may be incorporated into the current Kangala life-of-mine plan in the future.
Kangala has a Measured, Indicated and Inferred JORC Resource of 124 million tonnes.
Universal has a 70.5% ownership of Kangala.
Currently the company has a JORC Resource inventory across all projects of 819 million tonnes of export and domestic quality thermal and coking coal resources with a growth pipeline.
The resource breaks down as 491 million tonnes of coking coal, and 328 million tonnes of thermal coal.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17527/universal-coal-draft-bfs-indicates-positive-economics-at-kangala-thermal-coal-mine--17527.html
Universal is targeting at Kangala an initial 3 million tonne per annum run-of-mine open pit coal operation.
The first draft of the BFS from AMEC-Minproc indicates positive economics for Kangala in its current proposed form, with the results currently being reviewed by senior management, with recommendations to be made to the board.
The results are expected to be further optimised over the next couple of weeks.
The Kangala mine will produce both an Eskom grade and 5,400 Kcal/kg grade thermal coal from a Phase 1 operation, from within the open pit reserve area.
Importantly, Universal Coal is continuing discussions with various companies that have resources or mining operations in close proximity to the Kangala project that could lead to an upward revision of the potential returns identified by AMEC- Minproc in the draft study.
Tony Harwood, chairman, is very encouraged by the draft results commenting, “We are pleased with the positive draft results of the report received from AMEC-MinProc and we will be reviewing this study to improve further the project economics.
"We are also investigating various options and opportunities to add significantly to the Kangala project and create value to benefit this exciting project."
Universal Coal and will now proceed to review and optimize the project in order to improve the already positive techno-economics and to improve the level of engineering and estimate accuracy.
The final BFS is expected by the end of September 2011.
Adding some spice to Kangala is drilling will commence adjacent to the planned Kangala open pit area aimed at bringing 69 million tonnes of Inferred resources to the much higher confidence Measured category.
Universal said these resources may be incorporated into the current Kangala life-of-mine plan in the future.
Kangala has a Measured, Indicated and Inferred JORC Resource of 124 million tonnes.
Universal has a 70.5% ownership of Kangala.
Currently the company has a JORC Resource inventory across all projects of 819 million tonnes of export and domestic quality thermal and coking coal resources with a growth pipeline.
The resource breaks down as 491 million tonnes of coking coal, and 328 million tonnes of thermal coal.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17527/universal-coal-draft-bfs-indicates-positive-economics-at-kangala-thermal-coal-mine--17527.html
Crescent Gold directors recommend Focus Minerals takeover in target statement
Crescent Gold (ASX: CRE, TSX: CRA) directors have unanimously recommended shareholders accept the Focus Minerals (ASX: FML) off market takeover offer in a target statement.
The target statement stated that the directors of Crescent, and the company's largest shareholder, each intend to accept the offer, in the absence of a superior proposal.
Focus is offering one share for every 1.18 Crescent shares in the offer, which is conditional on a minimum acceptance of 90%.
Focus has received a pre bid agreement in favour of Focus for 19.9% of Crescent from Deutsche Bank group.
The merger will make Focus one of Australia’s top five gold producers with a 230,000 ounce production target in 2012 from multiple open pit and underground operations.
The combined group will have a JORC Resource inventory of 4.3 million ounces of gold.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17521/crescent-gold-directors-recommend-focus-minerals-takeover-in-target-statement-17521.html
The target statement stated that the directors of Crescent, and the company's largest shareholder, each intend to accept the offer, in the absence of a superior proposal.
Focus is offering one share for every 1.18 Crescent shares in the offer, which is conditional on a minimum acceptance of 90%.
Focus has received a pre bid agreement in favour of Focus for 19.9% of Crescent from Deutsche Bank group.
The merger will make Focus one of Australia’s top five gold producers with a 230,000 ounce production target in 2012 from multiple open pit and underground operations.
The combined group will have a JORC Resource inventory of 4.3 million ounces of gold.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17521/crescent-gold-directors-recommend-focus-minerals-takeover-in-target-statement-17521.html
Sunridge Gold begins next phase of exploration at Asmara
Sunridge Gold Corp. (CVE:SGC) said on Wednesday that it has commenced another phase of exploration at its Asmara project, in Eritrea, northeast Africa.
Asmara includes four deposits including Emba Derho, the Adi Nefas, the Gupo Gold and the Debarwa. It remains partially explored, covering an area of 600 square kilometres, and sits in a volcanogenic massive sulphide (VMS) district with three copper-zinc-gold-silver VMS deposits, as well as one gold deposit currently being developed by the company.
Sunridge said there are gold and remobilized copper-gold targets at Asmara that it plans to explore. Recently, it has started mapping, sampling and other field work in anticipation of a 10,000 metres exploration drill program to start in August.
Exploration will be conducted on several structurally-controlled gold targets similar to the company’s Gupo Gold deposit, which hosts 189,000 ounces of gold at an average of 2.99 grams per tonne, Sunridge said in a statement.
Many of the targets along the extension of the Debarwa deposit are considered to be VMS-style targets parallel to known deposits, with comparable geophysical signatures coincident with elevated copper, gold and zinc values in soil and rock samples.
Currently, geological mapping is also underway at the Adi Rassi prospect, where previous drilling returned values of 1.32 grams per tonne of gold and 0.84% copper over 84 meters.
In May, Sunridge announced that Antofagasta Minerals terminated the option agreement on the exploration ground of Asmara after it spent $2.2 million exploring for large porphyry-style copper deposits.
Following the deal's termination, Sunridge is once again 100% owner of all the exploration ground, in addition to the four deposits that make up the Asmara project.
Canada-based Sunridge, a base metals and precious minerals explorer, has properties in Eritrea, and Madagascar. Currently, Sunridge has about 117 million shares outstanding and $18 million in cash.
Asmara includes four deposits including Emba Derho, the Adi Nefas, the Gupo Gold and the Debarwa. It remains partially explored, covering an area of 600 square kilometres, and sits in a volcanogenic massive sulphide (VMS) district with three copper-zinc-gold-silver VMS deposits, as well as one gold deposit currently being developed by the company.
Sunridge said there are gold and remobilized copper-gold targets at Asmara that it plans to explore. Recently, it has started mapping, sampling and other field work in anticipation of a 10,000 metres exploration drill program to start in August.
Exploration will be conducted on several structurally-controlled gold targets similar to the company’s Gupo Gold deposit, which hosts 189,000 ounces of gold at an average of 2.99 grams per tonne, Sunridge said in a statement.
Many of the targets along the extension of the Debarwa deposit are considered to be VMS-style targets parallel to known deposits, with comparable geophysical signatures coincident with elevated copper, gold and zinc values in soil and rock samples.
Currently, geological mapping is also underway at the Adi Rassi prospect, where previous drilling returned values of 1.32 grams per tonne of gold and 0.84% copper over 84 meters.
In May, Sunridge announced that Antofagasta Minerals terminated the option agreement on the exploration ground of Asmara after it spent $2.2 million exploring for large porphyry-style copper deposits.
Following the deal's termination, Sunridge is once again 100% owner of all the exploration ground, in addition to the four deposits that make up the Asmara project.
Canada-based Sunridge, a base metals and precious minerals explorer, has properties in Eritrea, and Madagascar. Currently, Sunridge has about 117 million shares outstanding and $18 million in cash.
Tasman Metals shares rally on high rare earth grades at Norra Karr
Tasman Metals (CVE:TSM) announced Wednesday it intersected high-grade rare earth element (REE) and zirconium (Zr) mineralization at its Norra Karr project in Sweden, with grades 26% higher than its current inferred mineral resource estimate.
The strong results caused the company's stock on the TSX Venture Exchange to jump 4.22% on Wednesday to trade at $4.69 per share as of 1:08 pm EDT.
Tasman's recently completed phase three program, which drilled 4,734 metres in 23 new holes and extended six existing ones, found 0.68% total rare earth oxides (TREOs) and 1.85% zirconium oxide (ZrO2) over 241.3 metres in drill hole NKA11038, at a cut off of 0.2%. Of the TREO, 55% constituted the more valuable heavy rare earth oxides (HREOs).
Other highlights from the program included 0.8% TREO and 2.06% ZrO2 over 54.7 metres, also in hole NKA11038, and 0.55% TREO and 1.71% ZrO2 over 264.4 metres, including 0.66% TREO, and 1.88% ZrO2 over 70.2 metres in hole NKA11-039. The company said that the three TREO intersections comprised 57%, 47%, and 51.7%, HREO, respectively.
"These substantial new intersections from Norra Karr, with grades well above the current resource grade . . . will feed into the recently commissioned update to the NI 43-101 resource being completed by Pincock, Allen & Holt," said president and CEO, Mark Saxon.
Tasman's prior inferred mineral resource showed 60.5 million tonnes grading 0.54% TREO and 1.72% ZrO2, with 53.7% of the TREO being the higher valued HREO, at a cut-off grade of 0.4%.
The Norra Karr property is 300 kilometres southwest of Stockholm, and is situated in mixed farming and forestry land. Industry analysts have evaluated the property, claiming it contains the highest proportion of HREO in the western world, Tasman said.
The strong results caused the company's stock on the TSX Venture Exchange to jump 4.22% on Wednesday to trade at $4.69 per share as of 1:08 pm EDT.
Tasman's recently completed phase three program, which drilled 4,734 metres in 23 new holes and extended six existing ones, found 0.68% total rare earth oxides (TREOs) and 1.85% zirconium oxide (ZrO2) over 241.3 metres in drill hole NKA11038, at a cut off of 0.2%. Of the TREO, 55% constituted the more valuable heavy rare earth oxides (HREOs).
Other highlights from the program included 0.8% TREO and 2.06% ZrO2 over 54.7 metres, also in hole NKA11038, and 0.55% TREO and 1.71% ZrO2 over 264.4 metres, including 0.66% TREO, and 1.88% ZrO2 over 70.2 metres in hole NKA11-039. The company said that the three TREO intersections comprised 57%, 47%, and 51.7%, HREO, respectively.
"These substantial new intersections from Norra Karr, with grades well above the current resource grade . . . will feed into the recently commissioned update to the NI 43-101 resource being completed by Pincock, Allen & Holt," said president and CEO, Mark Saxon.
Tasman's prior inferred mineral resource showed 60.5 million tonnes grading 0.54% TREO and 1.72% ZrO2, with 53.7% of the TREO being the higher valued HREO, at a cut-off grade of 0.4%.
The Norra Karr property is 300 kilometres southwest of Stockholm, and is situated in mixed farming and forestry land. Industry analysts have evaluated the property, claiming it contains the highest proportion of HREO in the western world, Tasman said.
Gold Resource Corp declares 12th special dividend in one year
Mexico-focused Gold Resource Corp (AMEX:GORO) announced Wednesday that it will be distributing its twelfth special cash dividend to shareholders, benefiting from the start of commercial production at its El Aguila project last July.
The cash dividend, which has been increased to $0.04 per common share, will be paid to shareholders of record as of July 11, payable on July 22, 2011. The dividend, the twelfth in as many months since commercial production, is a direct result of cash flow generated from the company’s El Aguila operations, located in the southern state of Oaxaca, Mexico.
The total dividends declared since production now stands at $0.39 per share.
“Our twelfth monthly dividend marks a milestone for the company and underscores our longstanding focus to return cash back to the owners of the company, its shareholders,” said president Jason Reid.
Gold Resource owns five potential high grade gold and silver properties in Oaxaca.
The cash dividend, which has been increased to $0.04 per common share, will be paid to shareholders of record as of July 11, payable on July 22, 2011. The dividend, the twelfth in as many months since commercial production, is a direct result of cash flow generated from the company’s El Aguila operations, located in the southern state of Oaxaca, Mexico.
The total dividends declared since production now stands at $0.39 per share.
“Our twelfth monthly dividend marks a milestone for the company and underscores our longstanding focus to return cash back to the owners of the company, its shareholders,” said president Jason Reid.
Gold Resource owns five potential high grade gold and silver properties in Oaxaca.
Li3 Energy signs agreement to improve lithium brine processing at Maricunga
Peru-based Li3 Energy (OTCBB:LIEG) announced Wednesday an agreement with New York-based environmental technology business R3 Fusion to work on improving the methods used for lithium brine processing at the company's Maricunga project in Chile, independently ranked as one of the top ten lithium projects in the world.
The memorandum of understanding document sets out terms for R3's SPaCeR technology to shorten the current natural evaporation cycle at Maricunga from its estimated duration of roughly 18 months.
Under the agreement, R3 will attempt to show the efficacy of its technology for the concentration of lithium chloride solutions, while the two companies will also seek a commercial deal to deploy the technology exclusively for lithium brine processing within six months of a successful demonstration program.
If successful, R3 will design and construct systems appropriate for the volumes and economics associated with Li3's requirements.
"We are very excited to explore the use of the R3 Fusion SPaCeR Technology and its applications in lithium brine processing," said CEO of Li3, Luis Saenz.
"This technology possibly presents Li3 with a unique, energy efficient, green technology that not only could shorten our exploration timelines but also helps us capture and purify the water, allowing us to either use it in other areas of the salar or sell it to other commercial entities.
"We look forward to working through this evaluation stage together with R3 which could further align our companies in a mutually beneficial manner."
R3 is focused on applying its new technology to address global challenges in environmental and water issues including desalination, industrial and municipal wastewater treatment, water recovery and reuse, bio-fuel processes and fine chemical synthesis.
Li3, which looks for lithium properties in Peru, Argentina and Chile, has begun the initial $3.8 million development work program on the project, placing Maricunga into feasibility stage. A preliminary economic assessment report is anticipated by the end of the fourth quarter.
Maricunga covers an area of approximately 1,438 hectares, comprising six concessions, and is located in the northeast section of the Salar de Maricunga in Region III of Atacama.
The memorandum of understanding document sets out terms for R3's SPaCeR technology to shorten the current natural evaporation cycle at Maricunga from its estimated duration of roughly 18 months.
Under the agreement, R3 will attempt to show the efficacy of its technology for the concentration of lithium chloride solutions, while the two companies will also seek a commercial deal to deploy the technology exclusively for lithium brine processing within six months of a successful demonstration program.
If successful, R3 will design and construct systems appropriate for the volumes and economics associated with Li3's requirements.
"We are very excited to explore the use of the R3 Fusion SPaCeR Technology and its applications in lithium brine processing," said CEO of Li3, Luis Saenz.
"This technology possibly presents Li3 with a unique, energy efficient, green technology that not only could shorten our exploration timelines but also helps us capture and purify the water, allowing us to either use it in other areas of the salar or sell it to other commercial entities.
"We look forward to working through this evaluation stage together with R3 which could further align our companies in a mutually beneficial manner."
R3 is focused on applying its new technology to address global challenges in environmental and water issues including desalination, industrial and municipal wastewater treatment, water recovery and reuse, bio-fuel processes and fine chemical synthesis.
Li3, which looks for lithium properties in Peru, Argentina and Chile, has begun the initial $3.8 million development work program on the project, placing Maricunga into feasibility stage. A preliminary economic assessment report is anticipated by the end of the fourth quarter.
Maricunga covers an area of approximately 1,438 hectares, comprising six concessions, and is located in the northeast section of the Salar de Maricunga in Region III of Atacama.
International Tower Hill expects pre-feasibility for Livengood by Q4, launches district-wide exploration
Vancouver-based International Tower Hill Mines (TSE:ITH) (AMEX:THM) said Wednesday that it continutes to expect its pre-feasbility study on the Livengood gold project in Alaska in the fourth quarter, and is now working on updating the preliminary economic report, as well as embarking on a district-wide exploration program.
To support these work programs, the company's board recently approved a budget of C$67 million for the year ending May 30, 2012.
Since December 2010, when contracts were awarded for the pre-feasibility study, the company has made significant technical progress, including the completion of a preliminary surface mine slop evaluation, the near-completion of metallurgical testing and the start of plant design and engineering studies.
The updated preliminary economic assessment will include the latest information from the project and will be based on a higher gold price of $1,500 per ounce, compared to the $950 per ouncen price used in the November 2010 report.
Meanwhile, a district-wide exploration program began this month targeting potential new gold discoveries along the Livengood mineralized trend, both to the east-northeast and to the west of the existing Livengood gold deposit.
Results from the drilling program and the geophysical survey are expected throughout the summer and fall of 2011, the company said.
Analysts issued positive commentaries on the company's updates and progress thus far.
RBC Capital Markets noted: "Although ITH is several years away from potential construction of its Livengood project, this year can be characterized by a number of important catalysts mentioned above, in addition to an updated resource estimate on the project set for the final quarter of 2011."
Similarly, BMO's take was also bullish, noting that the update coincides with the equity research firm's own expectations. "ITH’s shares are trading at a 45% discount to our 0%NAV estimate of US$12.46/share using BMO Research’s metals price forecast," BMO Research noted in its report.
In addition to these upcoming potential catalysts, the company has bolstered its Fairbanks, Alaska team with the addition of Rick Solie as community and government relations manager. Prior to joining International Tower Hill, Solie was the Director of Alaska Government and Community Affairs for Denali – The Alaska Gas Pipeline, and previously worked for ConocoPhillips.
International Tower controls 100% of the 145 square kilometre Livengood land package, which is made up of fee land leased from the Alaska Mental Health Trust, as well as a number of smaller private mineral leases and 115 Alaska state mining claims.
The latest resource estimate, as at the beginning of April, indicates 7.4 million ounces of gold in the measured category, 3.2 million ounces in the indicated category, and 2.7 million ounces of inferred resources, all at a 0.5 g/t gold cut off grade.
Ongoing metallurgical studies have returned preliminary gold recoveries to a concentrate of between 78 to 89%.
To support these work programs, the company's board recently approved a budget of C$67 million for the year ending May 30, 2012.
Since December 2010, when contracts were awarded for the pre-feasibility study, the company has made significant technical progress, including the completion of a preliminary surface mine slop evaluation, the near-completion of metallurgical testing and the start of plant design and engineering studies.
The updated preliminary economic assessment will include the latest information from the project and will be based on a higher gold price of $1,500 per ounce, compared to the $950 per ouncen price used in the November 2010 report.
Meanwhile, a district-wide exploration program began this month targeting potential new gold discoveries along the Livengood mineralized trend, both to the east-northeast and to the west of the existing Livengood gold deposit.
Results from the drilling program and the geophysical survey are expected throughout the summer and fall of 2011, the company said.
Analysts issued positive commentaries on the company's updates and progress thus far.
RBC Capital Markets noted: "Although ITH is several years away from potential construction of its Livengood project, this year can be characterized by a number of important catalysts mentioned above, in addition to an updated resource estimate on the project set for the final quarter of 2011."
Similarly, BMO's take was also bullish, noting that the update coincides with the equity research firm's own expectations. "ITH’s shares are trading at a 45% discount to our 0%NAV estimate of US$12.46/share using BMO Research’s metals price forecast," BMO Research noted in its report.
In addition to these upcoming potential catalysts, the company has bolstered its Fairbanks, Alaska team with the addition of Rick Solie as community and government relations manager. Prior to joining International Tower Hill, Solie was the Director of Alaska Government and Community Affairs for Denali – The Alaska Gas Pipeline, and previously worked for ConocoPhillips.
International Tower controls 100% of the 145 square kilometre Livengood land package, which is made up of fee land leased from the Alaska Mental Health Trust, as well as a number of smaller private mineral leases and 115 Alaska state mining claims.
The latest resource estimate, as at the beginning of April, indicates 7.4 million ounces of gold in the measured category, 3.2 million ounces in the indicated category, and 2.7 million ounces of inferred resources, all at a 0.5 g/t gold cut off grade.
Ongoing metallurgical studies have returned preliminary gold recoveries to a concentrate of between 78 to 89%.
Kootenay Gold adds third rig for 25,000 metre program at Promontorio
Kootenay Gold (CVE:KTN) announced Wednesday that a third diamond drill has become active on its Promontorio silver project in Sonora, Mexico.
The three rigs are drilling a 25,000 metre program - the largest and most expansive drilling campaign the company has performed on the site to date - in order to follow up on its successful 10,000 metre program at the property.
The campaign will focus on step out and in-fill drilling to determine continuity between several medium-to-high grade silver intercepts found along Promontorio's mineralized corridor, which includes the Pit Resource, the Pit NE zone, the Northeast zone and the Southwest zone.
During the prior 10,000 metre drill program, the Pit zone returned 234 metres grading 58 grams per tonne (g/t) silver, including 70 metres of 91.4 g/t silver, in hole DH 53.
Meanwhile, the Southwest area found 36 g/t silver over 114.5 metres in hole PC 12, while the Northeast zone returned 12 metres of 93.4 g/t silver.
Kootenay said it hopes to provide an updated NI 43-101 compliant resource estimate at the conclusion of the current program
The three rigs are drilling a 25,000 metre program - the largest and most expansive drilling campaign the company has performed on the site to date - in order to follow up on its successful 10,000 metre program at the property.
The campaign will focus on step out and in-fill drilling to determine continuity between several medium-to-high grade silver intercepts found along Promontorio's mineralized corridor, which includes the Pit Resource, the Pit NE zone, the Northeast zone and the Southwest zone.
During the prior 10,000 metre drill program, the Pit zone returned 234 metres grading 58 grams per tonne (g/t) silver, including 70 metres of 91.4 g/t silver, in hole DH 53.
Meanwhile, the Southwest area found 36 g/t silver over 114.5 metres in hole PC 12, while the Northeast zone returned 12 metres of 93.4 g/t silver.
Kootenay said it hopes to provide an updated NI 43-101 compliant resource estimate at the conclusion of the current program
Corvus Gold confirms thick, oxide gold system at North Bullfrog
Vancouver-based Corvus Gold (TSE:KOR) said Wednesday that the latest drill results from its North Bullfrog project in Beatty, Nevada confirm the presence of thick, continuous oxide gold mineralization covering an area of roughly 1.6 square kilometres.
Highlights of the new results included 81 metres of 0.6 grams per tonne (g/t) of gold ans 302 metres of 0.33 g/t gold in hole NB-11-91; 88 metres of 0.5 g/t gold in hole NB-11-88; and 265 metres of 0.3 g/t gold in hole NB-11-95.
Corvus said it has now completed its phase one drill program for the year, which totaled 17,820 metres in 75 holes, with assays still pending for 15 of these holes. The latest results are primarily from the Yellowjacket and Sierra Blanca/Savage Valley targets, the largest discovered to date at the project, with high potential for a large, low strip ratio oxide deposit.
“We are extremely pleased with these results as they clearly demonstrate the presence of a major new gold system at the North Bullfrog project and we look forward to advancing our understanding of this exciting new Nevada discovery," said CEO Jeff Pontius.
"In addition, the near-surface, widespread, largely oxidized nature of the mineralization offers potential for a large-scale, low-cost, run-of-mine heap leach operation which could be attractive in our current gold price environment.”
Work has already begun on updating the resource for the property, which is expected to be completed in September. In addition to this, the company will be conducting a series of metallurgical tests, followed by the permitting of a phase two drill program to further define the new gold system.
The North Bullfrog Project covers over 24 square kilometres in southern Nevada just north of the historic Bullfrog gold mine, formerly operated by Barrick Gold (TSE:ABX).
The property hosts eight prospective gold targets with one prospect – the Mayflower target – containing an NI 43-101 compliant initial indicated resource of 76,300 ounces of gold and an inferred resource of 39,000 ounces of gold, both at a 0.3 g/t cutoff, with appreciable silver credits.
Highlights of the new results included 81 metres of 0.6 grams per tonne (g/t) of gold ans 302 metres of 0.33 g/t gold in hole NB-11-91; 88 metres of 0.5 g/t gold in hole NB-11-88; and 265 metres of 0.3 g/t gold in hole NB-11-95.
Corvus said it has now completed its phase one drill program for the year, which totaled 17,820 metres in 75 holes, with assays still pending for 15 of these holes. The latest results are primarily from the Yellowjacket and Sierra Blanca/Savage Valley targets, the largest discovered to date at the project, with high potential for a large, low strip ratio oxide deposit.
“We are extremely pleased with these results as they clearly demonstrate the presence of a major new gold system at the North Bullfrog project and we look forward to advancing our understanding of this exciting new Nevada discovery," said CEO Jeff Pontius.
"In addition, the near-surface, widespread, largely oxidized nature of the mineralization offers potential for a large-scale, low-cost, run-of-mine heap leach operation which could be attractive in our current gold price environment.”
Work has already begun on updating the resource for the property, which is expected to be completed in September. In addition to this, the company will be conducting a series of metallurgical tests, followed by the permitting of a phase two drill program to further define the new gold system.
The North Bullfrog Project covers over 24 square kilometres in southern Nevada just north of the historic Bullfrog gold mine, formerly operated by Barrick Gold (TSE:ABX).
The property hosts eight prospective gold targets with one prospect – the Mayflower target – containing an NI 43-101 compliant initial indicated resource of 76,300 ounces of gold and an inferred resource of 39,000 ounces of gold, both at a 0.3 g/t cutoff, with appreciable silver credits.
Prophecy Coal ships 650 tonnes from Ulaan Ovoo to Buryatia, Russia
Vancouver-based thermal coal producer Prophecy Coal Corp. (TSE:PCY) said on Wednesday that it has exported 650 tonnes of thermal coal from its Ulaan Ovoo mine, in Mongolia, to the Republic of Buryatia, in Russia.
The shipment, which is the equivalent of ten wagons, was loaded on to rail at Sukhbartaar rail station and crossed the border into Buryatia through Naushki.
The coal was sold to Energy LLC, a Buryatia-registered company, and then consumed in local Buryat power stations and boilers, Prophecy said in a statement.
"This is a historic event, as this is the first ever shipment of Mongolian coal to Buryatia, Russia, and we believe that Ulaan Ovoo coal will become a significant source to feed the energy sector of this region,” said Minister of Buryat, J. Batuyev.
Prophecy said the shipment to Buryatia helps it determine local sales logistics, wagon loading times, export requirements and customs procedures to ensure smooth operations for future coal export of larger quantities.
The thermal coal producer has been engaged collaboratively with a number of government and private entities to open the Zeltura border post, to facilitate trade between Mongolia’s Selenge province and Russia’s Buryatia province.
The opening of Zeltura border, which is 15 kilometres from the Ulaan Ovoo mine, would allow Prophecy to easily sell coal to Russian industrial consumers, translating into significant transportation savings for Prophecy, the company added.
Currently, Prophecy is preparing and ordering wagons for its July shipment destined for the port of Sovetskaya Gavani, for which the company has secured an annual capacity of 300,000 tonnes.
Earlier this month, the company announced that it had arranged with the port of Sovgavan in the State of Khabarovsk, Russia to have initial access to the port for 25,000 tonnes per month starting in June, offering Ulaan Ovoo access to the Asian seaborne export coal markets.
The port, located at the Russian Far Eastern seaboard, is privately-owned and has a loading capacity of 6,000 tonnes per day, offering direct connections to Trans-Siberian railroads and Russian state highways.
The Ulaan Ovoo coal mine, which began production this year and has thus far produced 200,000 tonnes of coal year to date, has measured and indicated mineral resources of 208 million tonnes. To date, more than $25 million has been committed or invested in the equipment and commissioning of the mine.
The shipment, which is the equivalent of ten wagons, was loaded on to rail at Sukhbartaar rail station and crossed the border into Buryatia through Naushki.
The coal was sold to Energy LLC, a Buryatia-registered company, and then consumed in local Buryat power stations and boilers, Prophecy said in a statement.
"This is a historic event, as this is the first ever shipment of Mongolian coal to Buryatia, Russia, and we believe that Ulaan Ovoo coal will become a significant source to feed the energy sector of this region,” said Minister of Buryat, J. Batuyev.
Prophecy said the shipment to Buryatia helps it determine local sales logistics, wagon loading times, export requirements and customs procedures to ensure smooth operations for future coal export of larger quantities.
The thermal coal producer has been engaged collaboratively with a number of government and private entities to open the Zeltura border post, to facilitate trade between Mongolia’s Selenge province and Russia’s Buryatia province.
The opening of Zeltura border, which is 15 kilometres from the Ulaan Ovoo mine, would allow Prophecy to easily sell coal to Russian industrial consumers, translating into significant transportation savings for Prophecy, the company added.
Currently, Prophecy is preparing and ordering wagons for its July shipment destined for the port of Sovetskaya Gavani, for which the company has secured an annual capacity of 300,000 tonnes.
Earlier this month, the company announced that it had arranged with the port of Sovgavan in the State of Khabarovsk, Russia to have initial access to the port for 25,000 tonnes per month starting in June, offering Ulaan Ovoo access to the Asian seaborne export coal markets.
The port, located at the Russian Far Eastern seaboard, is privately-owned and has a loading capacity of 6,000 tonnes per day, offering direct connections to Trans-Siberian railroads and Russian state highways.
The Ulaan Ovoo coal mine, which began production this year and has thus far produced 200,000 tonnes of coal year to date, has measured and indicated mineral resources of 208 million tonnes. To date, more than $25 million has been committed or invested in the equipment and commissioning of the mine.
Nextraction Energy starts 2-well summer drill program at Provost Viking
Vancouver-based junior oil and gas company Nextraction Energy (CVE:NE) said Wednesday that a two-well summer drilling program has begun on its Provost Viking property in eastern Alberta.
The company said the first well will target the Viking formation, and will include a 1,200 metre horizontal leg, at a depth of 800 metres.
Nextraction has identified 11 follow-up locations that could be drilled immediately, with the potential for nine further wells, should down spacing be warranted.
The first well offsets previously-drilled vertical wells on the property that have produced more than 500,000 barrels of oil.
The company also said that it has re-completed an existing well on Provost that is now cleaning up frac fluid. In a statement, Nextraction said it is encouraged by the initial results, as they have met expectations and confirmed that reservoir pressure remains high in the pool.
In addition to the Provost pool, the company is producing light oil and liquids-rich gas at its Pinedale Anticline property in Wyoming.
Nextraction also has exploratory rights to conduct a three dimensional seismic survey and development opportunities in the Saturn project, located in eastern Montana.
The company said the first well will target the Viking formation, and will include a 1,200 metre horizontal leg, at a depth of 800 metres.
Nextraction has identified 11 follow-up locations that could be drilled immediately, with the potential for nine further wells, should down spacing be warranted.
The first well offsets previously-drilled vertical wells on the property that have produced more than 500,000 barrels of oil.
The company also said that it has re-completed an existing well on Provost that is now cleaning up frac fluid. In a statement, Nextraction said it is encouraged by the initial results, as they have met expectations and confirmed that reservoir pressure remains high in the pool.
In addition to the Provost pool, the company is producing light oil and liquids-rich gas at its Pinedale Anticline property in Wyoming.
Nextraction also has exploratory rights to conduct a three dimensional seismic survey and development opportunities in the Saturn project, located in eastern Montana.
IBC renews partnership with Kazakhstan's Ulba, extends supply terms, to explore new opportunities
Vancouver-based IBC Advanced Alloys (CVE:IB) said Wednesday that it has signed an agreement with Kazakhstan's Ulba Metallurgical Plant to further advance opportunities in the global beryllium and rare earth metals market, strengthening the existing relationship between the two entities.
The memorandum of understanding (MOU) was signed in May in Kazakhstan. Ulba is one of the largest beryllium processing and rare metal manufacturing facilities in the world, and a subsidiary of Kazatomprom, the National Atomic Company of Kazakhstan.
Under the terms of the agreement, Ulba and IBC intend to renew and and extend their multi-year supply agreements for both beryllium metal and beryllium alloys.
The agreements will provide IBC, which manufactures and distributes rare metals and beryllium-based alloys, with a consistent and reliable supply of the metals to meet increasing customer demand and to grow its alloys business.
The two companies have also outlined terms for examining technological and business development initiatives that will strengthen their respective businesses, and have agreed to explore new opportunities with complementary rare metals, such as tantalum, niobium and others.
Specifically, both Ulba and IBC will look towards resource exploration, development and production, as well as downstream manufacturing and distribution opportunities.
"We are very pleased to have signed this very important MOU," said president and CEO of IBC, Anthony Dutton, "and look forward to expanding our excellent relationship with Ulba."
"The 2010 acquisition of Beralcast, now called Engineered Materials Division, has positioned IBC as a global leader in the beryllium aluminum castings market and, together with our beryllium copper alloys business, has dramatically increased IBC's product range and market depth."
IBC's alloys are used in a number of industries, including nuclear energy, automotive, telecommunications and a range of industrial applications.The company, which also owns 9,500 hectares of prospective beryllium properties in the Western US, has production facilities in Indiana, Massachusetts, Pennsylvania and Missouri.
"Our strong relationship with Ulba," continued Dutton, "is a cornerstone of our growth and we are excited by the long term potential of our relationship and our mutual rare metals business."
The memorandum of understanding (MOU) was signed in May in Kazakhstan. Ulba is one of the largest beryllium processing and rare metal manufacturing facilities in the world, and a subsidiary of Kazatomprom, the National Atomic Company of Kazakhstan.
Under the terms of the agreement, Ulba and IBC intend to renew and and extend their multi-year supply agreements for both beryllium metal and beryllium alloys.
The agreements will provide IBC, which manufactures and distributes rare metals and beryllium-based alloys, with a consistent and reliable supply of the metals to meet increasing customer demand and to grow its alloys business.
The two companies have also outlined terms for examining technological and business development initiatives that will strengthen their respective businesses, and have agreed to explore new opportunities with complementary rare metals, such as tantalum, niobium and others.
Specifically, both Ulba and IBC will look towards resource exploration, development and production, as well as downstream manufacturing and distribution opportunities.
"We are very pleased to have signed this very important MOU," said president and CEO of IBC, Anthony Dutton, "and look forward to expanding our excellent relationship with Ulba."
"The 2010 acquisition of Beralcast, now called Engineered Materials Division, has positioned IBC as a global leader in the beryllium aluminum castings market and, together with our beryllium copper alloys business, has dramatically increased IBC's product range and market depth."
IBC's alloys are used in a number of industries, including nuclear energy, automotive, telecommunications and a range of industrial applications.The company, which also owns 9,500 hectares of prospective beryllium properties in the Western US, has production facilities in Indiana, Massachusetts, Pennsylvania and Missouri.
"Our strong relationship with Ulba," continued Dutton, "is a cornerstone of our growth and we are excited by the long term potential of our relationship and our mutual rare metals business."
International Stem Cell's Lifeline Cell subsidiary boosts Q1 sales by 35%
International Stem Cell Corp (OTCBB:ISCO) said Wednesday that its subsidiary Lifeline Cell Technology grew first quarter sales by 35%, gaining over 200 new customers due to new product introductions and the development of distribution channels internationally.
Lifeline Cell Technology develops, manufactures and markets the Lifeline brand of cell-culture products, which are used by researchers to grow human cells for pre-clinical research.
The subsidiary's products are developed using parent International Stem Cell's technology, which creates human parthenogenetic stem cells derived from unfertilized human eggs.
"Our product sales growth was largely due to the development and launch of more than 30 new products in 2010, including products that allow researchers to study human stem cells," said Lifeline CEO Jeffrey Janus.
"Lifeline also opened new distribution channels in Japan, India, Taiwan, South Korea and Singapore and has achieved significant sales in those new markets."
Lifeline has also made significant progress with regards to expanding its product applications into manufacturing human tissues and cells for clinical use.
For example, the unit's FibroLife media is being used to cultivate tissue-engineered blood vessels in California with Cytograft for a number of applications, including coronory grafts for heart bypass surgeries, and peripheral grafts to prevent lower limb amputations, among other uses.
Cytograft CEO, Todd McAllister, commented: "Cytograft's clinical programs are going forward in Phase III trials and we are excited to be working with Lifeline as one of our key media developers and suppliers as we transition to commercialization and as we develop our next generation platform."
In anticipation of producing clinical-grade products, Lifeline recently moved into new laboratory facilities that are capable of accredited level manufacturing.
"The Cytograft opportunity is but one example of many potential clinical applications for Lifeline's products," added Janus.
Lifeline Cell Technology develops, manufactures and markets the Lifeline brand of cell-culture products, which are used by researchers to grow human cells for pre-clinical research.
The subsidiary's products are developed using parent International Stem Cell's technology, which creates human parthenogenetic stem cells derived from unfertilized human eggs.
"Our product sales growth was largely due to the development and launch of more than 30 new products in 2010, including products that allow researchers to study human stem cells," said Lifeline CEO Jeffrey Janus.
"Lifeline also opened new distribution channels in Japan, India, Taiwan, South Korea and Singapore and has achieved significant sales in those new markets."
Lifeline has also made significant progress with regards to expanding its product applications into manufacturing human tissues and cells for clinical use.
For example, the unit's FibroLife media is being used to cultivate tissue-engineered blood vessels in California with Cytograft for a number of applications, including coronory grafts for heart bypass surgeries, and peripheral grafts to prevent lower limb amputations, among other uses.
Cytograft CEO, Todd McAllister, commented: "Cytograft's clinical programs are going forward in Phase III trials and we are excited to be working with Lifeline as one of our key media developers and suppliers as we transition to commercialization and as we develop our next generation platform."
In anticipation of producing clinical-grade products, Lifeline recently moved into new laboratory facilities that are capable of accredited level manufacturing.
"The Cytograft opportunity is but one example of many potential clinical applications for Lifeline's products," added Janus.
Moutain Lake and Marathon further expand Leprechaun gold deposit
Mountain Lake Resources (CVE:MOA) said Tuesday that a wide interval of gold mineralization was intersected on the northeast section of the Leprechaun gold deposit, part of the joint venture Valentine Lake property in central Newfoundland.
Drill hole VL-11-288 returned 2.09 grams per tonne (g/t) gold over 65.6 metres, including 16.5 g/t gold over 3.2 metres and 76.0 g/t gold over 0.8 metres.
The company said the wide intersection confirms the potential for intersecting additional wide zones of high grade gold at depth within the Leprechaun deposit.
Additional new gold was also found in hole VL-11-287, with 9.39 g/t gold over 7.2 metres, including 16.68 g/t gold over 4 metres, and in hole VL-11-289, with 2.59 g/t gold over 8.8 metres. These results show that high grade gold continues along strike within the deposit.
Valentine Lake is a 50/50 joint venture between Marathon Gold (TSE:MOZ) and Mountain Lake, with Marathon as the operator of the project.
"For the balance of the year the focus of the drill program will be on expanding and delineating the Leprechaun Deposit in advance of the Preliminary Economic Assessment planned for release in the first half of 2012," said Mountain Lake president and CEO, Gary Woods.
"And these latest results certainly provide evidence that the resource can be significantly expanded."
Mountain Lake said the results extend the zone of gold mineralization more than 40 metres down dip, and over 50 metres along strike from previous drilling results, further expanding the resource.
Currently, the Leprechaun deposit, at a 0.5 g/t gold cutoff, has an NI 43-101 compliant measured and indicated resource of 277,000 ounces of gold, plus an inferred resource of 285,000 ounces.
The second rig at the site has now moved towards the southwest end of the current pit outline, and has intersected typical gold mineralization, with assay results expected over the next two weeks. A total of 73 holes, for over 10,000 metres, have been completed so far this year at Valentine Lake, of a planned 25,000 metres for 2011.
The Leprechaun deposit is situated at the south-western end of the Valentine Lake property with the Sprite Zone and the Valentine East Zone to the northeast. These gold occurrences form part of a 23 kilometre long, gold-bearing mineralized corridor.
Both Marathon and Mountain Lake have agreed to jointly fund a $7.1 million budget for this year. Reps from both companies have recently decided to defer the next resource estimation until the current drilling program has been completed, and an open pit resource can be estimated, which will be the basis of the forthcoming preliminary economic assessment.
Drill hole VL-11-288 returned 2.09 grams per tonne (g/t) gold over 65.6 metres, including 16.5 g/t gold over 3.2 metres and 76.0 g/t gold over 0.8 metres.
The company said the wide intersection confirms the potential for intersecting additional wide zones of high grade gold at depth within the Leprechaun deposit.
Additional new gold was also found in hole VL-11-287, with 9.39 g/t gold over 7.2 metres, including 16.68 g/t gold over 4 metres, and in hole VL-11-289, with 2.59 g/t gold over 8.8 metres. These results show that high grade gold continues along strike within the deposit.
Valentine Lake is a 50/50 joint venture between Marathon Gold (TSE:MOZ) and Mountain Lake, with Marathon as the operator of the project.
"For the balance of the year the focus of the drill program will be on expanding and delineating the Leprechaun Deposit in advance of the Preliminary Economic Assessment planned for release in the first half of 2012," said Mountain Lake president and CEO, Gary Woods.
"And these latest results certainly provide evidence that the resource can be significantly expanded."
Mountain Lake said the results extend the zone of gold mineralization more than 40 metres down dip, and over 50 metres along strike from previous drilling results, further expanding the resource.
Currently, the Leprechaun deposit, at a 0.5 g/t gold cutoff, has an NI 43-101 compliant measured and indicated resource of 277,000 ounces of gold, plus an inferred resource of 285,000 ounces.
The second rig at the site has now moved towards the southwest end of the current pit outline, and has intersected typical gold mineralization, with assay results expected over the next two weeks. A total of 73 holes, for over 10,000 metres, have been completed so far this year at Valentine Lake, of a planned 25,000 metres for 2011.
The Leprechaun deposit is situated at the south-western end of the Valentine Lake property with the Sprite Zone and the Valentine East Zone to the northeast. These gold occurrences form part of a 23 kilometre long, gold-bearing mineralized corridor.
Both Marathon and Mountain Lake have agreed to jointly fund a $7.1 million budget for this year. Reps from both companies have recently decided to defer the next resource estimation until the current drilling program has been completed, and an open pit resource can be estimated, which will be the basis of the forthcoming preliminary economic assessment.
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