Breakaway Resources (ASX: BRW) has been granted a trading halt pending a proposed capital raising announcement, with the company's shares placed in pre-open.
Breakaway has not yet indicated where the potential capital injection will be allocated, but the company currently has some very interesting projects underway.
Currently Breakaway's partner BHP Billiton (ASX: BHP) is drilling a three hole diamond program for 2000 metres to test depth extensions at the Altia silver-lead-zinc joint venture, which is located just 100 kilometres from the 'big Australian's' Cannington mine.
Previous drilling has highlighted the potential for a large-scale silver deposit at Altia with strengthening silver grades – including an intersection of 19 metres at 286g/t silver (down hole width) – occurring at depth and to the south of the current resource.
The trading halt will be in effect until the earlier of the announcement being made to the market or the commencement of trade on Wednesday 9 November.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21651/breakaway-resources-in-pre-open-pending-capital-raising-announcement-21651.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.
Sunday, 6 November 2011
Minbos Resources Ltd: Emerging Phosphate Producer
Phosphate is an essential commodity with future demand linked to the agriculture / food complex. Global phosphate consumption is forecast to grow by 45% between 2005 and 2030
Minbos Resources (ASX: MNB) is a junior Australian explorer and developer that holds a significant land position of 400,000 hectares in the Cabinda Province of Angola, and in the western half of the Democratic Republic of Congo.
The Cabinda Project covers 200,000 hectares that are located within an elongated depression between geological faults that run parallel to the Angolan coast, and include identified phosphate resources at Mongo Tando, Cacata, Chibuete, Chivovo and Ueca.
The Kanzi Deposit is located within the Democratic Republic of Congo, is found on the same mineralized trend that hosts the various deposits that make up the Cabinda Project, and is part of a 200,000 hectare land package that is contiguous with the high grade Cacata deposit.
These licenses cover a number of high grade rock phosphate deposits that were partially defined by historical exploration and outlined a conceptual potential of up to half a billion tonnes of phosphate ore.
This potential has now been drill tested with some extremely positive results. At time of publication, Minbos has announced, resource estimates for 3 of the 6 deposits that have been drilled.
- Mongo Tando – Inferred Resource Estimate of 117mt @ 13.6% P2O5
- Cacata – Indicated Resource Estimate of 22.4mt @ 21.4% P2O5
- Chivovo – Inferred Resource Estimate of 46mt @ 17.2% P2O5 (incl 31mt @ 21.4% P2O5)
The high grade and potential Direct Shipping Ore at both Cacata and Kanzi combined with both the projects close proximity to the coast and logistics infrastructure has translated into extremely robust Capex and Opex numbers being presented in the scoping studies carried out on the projects by CRU Mineral Strategies.
Angola
Diamonds and oil make up 60 percent of Angola's economy, almost all of the country's revenue and are its dominant exports.
Oil accounts for 45 to 50 percent of GDP in Angola.
In December 2006, Angola was admitted as a member of OPEC to being the fastest growing economy in Africa and one of the fastest in the world, with an average GDP growth of 20 percent between 2005 and 2007. In 2011, GDP growth is likely to be in excess of 8%.
Angola’s revenue from oil exports increased 44 percent in the eight months through August.
Minerals Exploration and Mining have been named as a focus by the President of Angola with the intention of diversifying the economy away from its dependence on oil – a new mining code has been approved by Parliament to provide the basis for this.
Democratic Republic of Congo
The political situation in the DRC has improved significantly in recent years, and in 2006 the country held its first free elections in more than 40 years.
The economy of the DRC has historically been dominated by its resource sector. The country is renowned as one of the richest mineral regions of the world.
While adverse political events have reduced national output, diamonds, copper, cobalt, gold and other minerals remain the principal foreign exchange-earning exports for the country.
The economic conditions of the DRC are improving as a result of improved political stability in the country. Leading this economic growth is the mining sector. Presidential elections are scheduled for 28 November 2011.
Cabinda Project
Cabinda is held in a 50/50 joint venture with Petril Projects Ltd, an associate company of the The LR Group, which is a private multinational company that has a long track record in Angola, and is heavily involved with rural settlement and agricultural development projects that target job creation and economic prosperity.
Historic exploration work completed at Cabinda included exploration by Companhia de Fosfatos from 1969 to 1973, and Energo during the 1980’s, when 45,000 metres of drilling outlined phosphate resources at Mongo Tando and Cacata and additional exploration targets.
Coffey Mining confirmed that these prospects reported historical phosphate grades of 10 - 20%, over a number of mineralized beds that average 14 metres in thickness and carry grades of 10 - 34% P2O5, hosting potential to contain 333 - 538 million tonnes of phosphate material. Historical metallurgical test work produced a concentrate of 34 – 36% P2O5, with recoveries exceeding 75%.
The projects within the Cabinda Project area all lie within 50 kilometres of the Coast and are connected to the Town of Cacongo (by newly constructed 4 lanes, tar roads) where a facility that will use barges to trans-ship is planned. The area is well served by local roads, electric power, services, and local workforce.
The convergence of very favorable local infrastructure provides the Cabinda Project with major capital and operating cost savings that are not available to similar Australian phosphate projects.
This includes Legend International (USOTCBB: LGDI) with resources located in the Georgina Basin of Queensland, and Minemakers (ASX: MAK) at Wonarah, in the Northern Territory, which are both located 1,100 - 1,200 kilometres from port facilities, and lack the same intensity of local infrastructure.
Cabinda reports preliminary estimates for operating costs of US$45 per tonne of phosphate production, while Legend and Minemakers report US$100 -109 per tonne, and reflect the tyranny of distance.
Mongo Tango Project
In March of 2011, Minbos announced an upgraded JORC compliant Inferred Mineral Resource for Mongo Tango of 117 million tonnes of P2O5, at a grade of 13.6%, and cut off grade of 5%, estimated from 134 holes for 6,700 metres of aircore drilling, and 1,010 rock assays. This was a 61% increase in tonnage, and 9% increase in grade over an earlier resource estimate released in February of 2011.
An additional 3,500m of drilling has subsequently been completed on Mongo Tando and a further resource upgrade is expected early in December 2012.
Preliminary bench scale testing on an ore sample from Mongo Tando indicated that it is readily upgradable to 34% P2O5, at a recovery of 62%.
Cacata Project
The company also released a maiden resource estimate for Cacata at the end of August of 2011, for a JORC compliant Indicated Resource of 22.5 million tonnes of P2O5, at a grade of 21.4%, and cut off grade of 8%. This included a high grade zone of 6.8 million tonnes at 32.3% P2O5, at an extremely high cut off of grade of 28%.
A scoping study completed on Cacata by CRU Mineral strategies, produced the following findings:
- Cacata able to support a large scale phosphate rock complex producing approx 1.25Mtpa over 10 years
- Open-pit mining operation with a conventional beneficiated process to produce a concentrate grade of 35% P2O5
- 35% P2O5 premium product expected, could trade at as much as 9% premium to benchmark 72% BPL Moroccan product (33% P2O5)
- This would equate to $220/t based on October 2011 prices
- OPEX costs in the order of US$46/tn (range of US$35 – US$58/t) expected
- OPEX considered to be at the mid to low end of the industry cost curve possibly place the operation in the first quartile of OPEX
- Expected CAPEX of US$102 million (with a range of US$72 to US$132 million) considered to be at the low end of the industry range
Minbos has captured these findings into an initial financial model, the results of which confirm the robustness of the project – with an NPV discounted @ 10% of US$348 million for Minbos’s 50% of the project.
Chivovo, Chibuete, Ueca Projects and Exploration
Minbos has completed drilling on the remaining 3 other targets in the Cabinda project area and expects to announce a total resource estimate in the fourth quarter of 2011. The Company says that it is on track to confirm a JORC resource estimate that falls within the 333 - 535 million tonne range, grading 10 - 20% P2O5, estimated by Coffey Mining. We believe the resource is likely to be in the middle of this range.
At Chivovo an initial 500 metre aircore drilling program was planned to test for potential high grade mineralization, field results confirmed this and the program was expanded to 1,800m so that a resource estimate can be calculated and additional high grade DSO that may be mined along with the Cacata resource.
Chivovo is located 40kmetres along Strike from Cacata and Minbos believe that plan to test this area shows potential for the discovery of additional high grade deposits similar to Cacata and Chivovo.
The Chibuete and Ueca projects will add significant tonnage to the overall resource estimate and are expected to have similar grades to Mongo Tando.
A diamond drilling contractor has also been mobilized to upgrade Mongo Tando from inferred to indicated resource status, and will also provide metallurgical samples from both high grade Cacata, and Mongo Tando deposits.
DRC Project
Kanzi Project
Kanzi was 1st explored during the 1970’s approximately 3, 500m were drilled and limited metallurgical testwork was carried out.
Minbos completed an initial round of 52 drill holes Kanzi to confirm historic data. Results were largely in line with historic data with phosphate mineralization averaging 8.6 metres in thickness at a grade of 15.4% P2O5, and cut off grade of 5%, and averages overburden of 32.5 metres.
Very excitingly an initial resource estimate of 46mt @ 17.2% P2O5 (including 31mt @ 21.4% P2O5). Based on the robust numbers presented by CRU Minbos expect Kanzi to develop as a very robust project – with the benefit of 100% ownership and the support of a larger operation than Cacata due to higher tonnage.
Minbos intend to immediately commence a scoping study and follow this with a second round of step out drilling and Bankable Feasibility study early in 2012.
Acquisition of potash licenses
On October 11, the company announced it had entered into a conditional agreement to acquire a large-scale potash licence located in the Cabinda Province of the Republic of Angola.
The Dinge potash license overlaps Minbos’ existing Cabinda Phosphate tenements and in many areas such as Chivovo, the potash mineralization underlies the phosphate mineralisation drilled by Minbos. The location of the license in the Congo Basin is important as the Basin already hosts a number of potash discoveries including:
- Elemental Mineral’s (ASX:ELM) Sintoukola project of 804 million tonne JORC resource including a high grade zone of 337Mt @ 39.9% KCl;
- MagIndustries Corp Makolo project, with JORC Proven and Probable Reserves of 191.5Mt @ 17.4% KCl; Inferred Resource of 9.2Bt of carnalite grading 12.1% K2O.
Early cash flows possible
Assuming an annualized production rate of 1.25 million tonnes at Cacata, and applying the current spot price of phosphate rock concentrate bulk FOB Morocco for 31-33% P2O5 quoted at US$205 per tonne, provides a “ballpark” estimate for potential annualized revenues of US$307.5 million.
Deducting cash costs of US$45 per tonne, produces an annualized free cash flow of US$240 million, before deduction of CAPEX and EBITDA, which is then split 50/50 by the Joint Venture Partners, and is indicative of the extreme undervaluation that the market is applying to Minbos.
What happens when Minbos announces hundreds of millions of tonnes of phosphate resources at richer grades, and a PEA for Cacata at an annualized rate of 1-1.5 million tonnes?
Analysis
Minbos’ phosphate Projects are located within 50 kilometres of the ocean in area that is heavily populated by oil companies. Services and accommodation are excellent due to this oil and gas presence. All roads have undergone or are undergoing upgrade to highway standard.
The minimal distance to the ocean provides a major operating cost advantage over competitor deposits.
The acquisition of potash license areas where there is an occurrence of phosphate and potash mineralization within the same license areas has been missed by some sections of the market as it provides synergies for shared infrastructure such as ports and roads. As well as dealing Minbos into the potash sector, where M&A activity and valuations are relatively higher.
Catalysts
- Overall JORC resource for Cabinda due 4th quarter 2011
- Chivovo, Chibuete and Ueca resource estimates imminent
- Mongo Tando upgraded resource imminent
- Positive DSO results from exploration drilling confirm high grade potential at Cacata
- Positive results from exploration drilling confirm high grade potential at Kanzi
- Exploration results – ongoing
- Scoping Study for Kanzai DSO rock phosphate for export operation starts 4th quarter
- Bankable-Feasibility results for both Cacata and Kanzi by Sept 2012
- Project location and ore body result in excellent economics when compared to other proposed projects
Fertiliser inputs and products now core investments with the major mining houses. M&A activity is also on the rise in the phosphate and potash spaces at the upper end including BHP Billiton (ASX:BHP) and Vale/Mitsui – Mosaic – a $US385m acquisition of a rock phosphate development that will produce 3.9 mtpa of rock phosphate per annum.
Peers
Taking a line through its peers, if Minbos defines a JORC Resource around the 350 million tonne range; given projected low operating costs per tonne of around $45/t and the closeness to port of 30km, Minbos is extremely undervalued at current valuation of $24.5m given the comparison with its peers relative to Minemakers’ (ASX:MAK) valuation; Legend International (US: OTC BB) $104m valuation; Stonegate AGricom’s ( $143m valuation and Aguia Resources’ (ASX:AGR) $53m valuation.
Most of Minbos’ ASX and TSX listed peers carry much richer market valuations, which is well illustrated by MBAC Fertilizer (TSX: MBC) with a market capitalization of $205 million for a resource of 82.8 million tonnes, at 5.4% P205.
MBAC has completed a Preliminary Economic Assessment for production of 300,000 tonnes of P2O5 as a feedstock for Single Superphosphate from its Santana Project in Brazil.
Minbos is also a very tightly held stock, providing ample leverage to news flow and upside to upcoming milestones.
The combination of the already defined high-grade and potential DSO phosphate resources and the potential of defining large, high grade potash resources within the same licence area sets Minbos apart from its peers.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21652/minbos-resources-ltd-emerging-phosphate-producer-21652.html
Minbos Resources (ASX: MNB) is a junior Australian explorer and developer that holds a significant land position of 400,000 hectares in the Cabinda Province of Angola, and in the western half of the Democratic Republic of Congo.
The Cabinda Project covers 200,000 hectares that are located within an elongated depression between geological faults that run parallel to the Angolan coast, and include identified phosphate resources at Mongo Tando, Cacata, Chibuete, Chivovo and Ueca.
The Kanzi Deposit is located within the Democratic Republic of Congo, is found on the same mineralized trend that hosts the various deposits that make up the Cabinda Project, and is part of a 200,000 hectare land package that is contiguous with the high grade Cacata deposit.
These licenses cover a number of high grade rock phosphate deposits that were partially defined by historical exploration and outlined a conceptual potential of up to half a billion tonnes of phosphate ore.
This potential has now been drill tested with some extremely positive results. At time of publication, Minbos has announced, resource estimates for 3 of the 6 deposits that have been drilled.
- Mongo Tando – Inferred Resource Estimate of 117mt @ 13.6% P2O5
- Cacata – Indicated Resource Estimate of 22.4mt @ 21.4% P2O5
- Chivovo – Inferred Resource Estimate of 46mt @ 17.2% P2O5 (incl 31mt @ 21.4% P2O5)
The high grade and potential Direct Shipping Ore at both Cacata and Kanzi combined with both the projects close proximity to the coast and logistics infrastructure has translated into extremely robust Capex and Opex numbers being presented in the scoping studies carried out on the projects by CRU Mineral Strategies.
Angola
Diamonds and oil make up 60 percent of Angola's economy, almost all of the country's revenue and are its dominant exports.
Oil accounts for 45 to 50 percent of GDP in Angola.
In December 2006, Angola was admitted as a member of OPEC to being the fastest growing economy in Africa and one of the fastest in the world, with an average GDP growth of 20 percent between 2005 and 2007. In 2011, GDP growth is likely to be in excess of 8%.
Angola’s revenue from oil exports increased 44 percent in the eight months through August.
Minerals Exploration and Mining have been named as a focus by the President of Angola with the intention of diversifying the economy away from its dependence on oil – a new mining code has been approved by Parliament to provide the basis for this.
Democratic Republic of Congo
The political situation in the DRC has improved significantly in recent years, and in 2006 the country held its first free elections in more than 40 years.
The economy of the DRC has historically been dominated by its resource sector. The country is renowned as one of the richest mineral regions of the world.
While adverse political events have reduced national output, diamonds, copper, cobalt, gold and other minerals remain the principal foreign exchange-earning exports for the country.
The economic conditions of the DRC are improving as a result of improved political stability in the country. Leading this economic growth is the mining sector. Presidential elections are scheduled for 28 November 2011.
Cabinda Project
Cabinda is held in a 50/50 joint venture with Petril Projects Ltd, an associate company of the The LR Group, which is a private multinational company that has a long track record in Angola, and is heavily involved with rural settlement and agricultural development projects that target job creation and economic prosperity.
Historic exploration work completed at Cabinda included exploration by Companhia de Fosfatos from 1969 to 1973, and Energo during the 1980’s, when 45,000 metres of drilling outlined phosphate resources at Mongo Tando and Cacata and additional exploration targets.
Coffey Mining confirmed that these prospects reported historical phosphate grades of 10 - 20%, over a number of mineralized beds that average 14 metres in thickness and carry grades of 10 - 34% P2O5, hosting potential to contain 333 - 538 million tonnes of phosphate material. Historical metallurgical test work produced a concentrate of 34 – 36% P2O5, with recoveries exceeding 75%.
The projects within the Cabinda Project area all lie within 50 kilometres of the Coast and are connected to the Town of Cacongo (by newly constructed 4 lanes, tar roads) where a facility that will use barges to trans-ship is planned. The area is well served by local roads, electric power, services, and local workforce.
The convergence of very favorable local infrastructure provides the Cabinda Project with major capital and operating cost savings that are not available to similar Australian phosphate projects.
This includes Legend International (USOTCBB: LGDI) with resources located in the Georgina Basin of Queensland, and Minemakers (ASX: MAK) at Wonarah, in the Northern Territory, which are both located 1,100 - 1,200 kilometres from port facilities, and lack the same intensity of local infrastructure.
Cabinda reports preliminary estimates for operating costs of US$45 per tonne of phosphate production, while Legend and Minemakers report US$100 -109 per tonne, and reflect the tyranny of distance.
Mongo Tango Project
In March of 2011, Minbos announced an upgraded JORC compliant Inferred Mineral Resource for Mongo Tango of 117 million tonnes of P2O5, at a grade of 13.6%, and cut off grade of 5%, estimated from 134 holes for 6,700 metres of aircore drilling, and 1,010 rock assays. This was a 61% increase in tonnage, and 9% increase in grade over an earlier resource estimate released in February of 2011.
An additional 3,500m of drilling has subsequently been completed on Mongo Tando and a further resource upgrade is expected early in December 2012.
Preliminary bench scale testing on an ore sample from Mongo Tando indicated that it is readily upgradable to 34% P2O5, at a recovery of 62%.
Cacata Project
The company also released a maiden resource estimate for Cacata at the end of August of 2011, for a JORC compliant Indicated Resource of 22.5 million tonnes of P2O5, at a grade of 21.4%, and cut off grade of 8%. This included a high grade zone of 6.8 million tonnes at 32.3% P2O5, at an extremely high cut off of grade of 28%.
A scoping study completed on Cacata by CRU Mineral strategies, produced the following findings:
- Cacata able to support a large scale phosphate rock complex producing approx 1.25Mtpa over 10 years
- Open-pit mining operation with a conventional beneficiated process to produce a concentrate grade of 35% P2O5
- 35% P2O5 premium product expected, could trade at as much as 9% premium to benchmark 72% BPL Moroccan product (33% P2O5)
- This would equate to $220/t based on October 2011 prices
- OPEX costs in the order of US$46/tn (range of US$35 – US$58/t) expected
- OPEX considered to be at the mid to low end of the industry cost curve possibly place the operation in the first quartile of OPEX
- Expected CAPEX of US$102 million (with a range of US$72 to US$132 million) considered to be at the low end of the industry range
Minbos has captured these findings into an initial financial model, the results of which confirm the robustness of the project – with an NPV discounted @ 10% of US$348 million for Minbos’s 50% of the project.
Chivovo, Chibuete, Ueca Projects and Exploration
Minbos has completed drilling on the remaining 3 other targets in the Cabinda project area and expects to announce a total resource estimate in the fourth quarter of 2011. The Company says that it is on track to confirm a JORC resource estimate that falls within the 333 - 535 million tonne range, grading 10 - 20% P2O5, estimated by Coffey Mining. We believe the resource is likely to be in the middle of this range.
At Chivovo an initial 500 metre aircore drilling program was planned to test for potential high grade mineralization, field results confirmed this and the program was expanded to 1,800m so that a resource estimate can be calculated and additional high grade DSO that may be mined along with the Cacata resource.
Chivovo is located 40kmetres along Strike from Cacata and Minbos believe that plan to test this area shows potential for the discovery of additional high grade deposits similar to Cacata and Chivovo.
The Chibuete and Ueca projects will add significant tonnage to the overall resource estimate and are expected to have similar grades to Mongo Tando.
A diamond drilling contractor has also been mobilized to upgrade Mongo Tando from inferred to indicated resource status, and will also provide metallurgical samples from both high grade Cacata, and Mongo Tando deposits.
DRC Project
Kanzi Project
Kanzi was 1st explored during the 1970’s approximately 3, 500m were drilled and limited metallurgical testwork was carried out.
Minbos completed an initial round of 52 drill holes Kanzi to confirm historic data. Results were largely in line with historic data with phosphate mineralization averaging 8.6 metres in thickness at a grade of 15.4% P2O5, and cut off grade of 5%, and averages overburden of 32.5 metres.
Very excitingly an initial resource estimate of 46mt @ 17.2% P2O5 (including 31mt @ 21.4% P2O5). Based on the robust numbers presented by CRU Minbos expect Kanzi to develop as a very robust project – with the benefit of 100% ownership and the support of a larger operation than Cacata due to higher tonnage.
Minbos intend to immediately commence a scoping study and follow this with a second round of step out drilling and Bankable Feasibility study early in 2012.
Acquisition of potash licenses
On October 11, the company announced it had entered into a conditional agreement to acquire a large-scale potash licence located in the Cabinda Province of the Republic of Angola.
The Dinge potash license overlaps Minbos’ existing Cabinda Phosphate tenements and in many areas such as Chivovo, the potash mineralization underlies the phosphate mineralisation drilled by Minbos. The location of the license in the Congo Basin is important as the Basin already hosts a number of potash discoveries including:
- Elemental Mineral’s (ASX:ELM) Sintoukola project of 804 million tonne JORC resource including a high grade zone of 337Mt @ 39.9% KCl;
- MagIndustries Corp Makolo project, with JORC Proven and Probable Reserves of 191.5Mt @ 17.4% KCl; Inferred Resource of 9.2Bt of carnalite grading 12.1% K2O.
Early cash flows possible
Assuming an annualized production rate of 1.25 million tonnes at Cacata, and applying the current spot price of phosphate rock concentrate bulk FOB Morocco for 31-33% P2O5 quoted at US$205 per tonne, provides a “ballpark” estimate for potential annualized revenues of US$307.5 million.
Deducting cash costs of US$45 per tonne, produces an annualized free cash flow of US$240 million, before deduction of CAPEX and EBITDA, which is then split 50/50 by the Joint Venture Partners, and is indicative of the extreme undervaluation that the market is applying to Minbos.
What happens when Minbos announces hundreds of millions of tonnes of phosphate resources at richer grades, and a PEA for Cacata at an annualized rate of 1-1.5 million tonnes?
Analysis
Minbos’ phosphate Projects are located within 50 kilometres of the ocean in area that is heavily populated by oil companies. Services and accommodation are excellent due to this oil and gas presence. All roads have undergone or are undergoing upgrade to highway standard.
The minimal distance to the ocean provides a major operating cost advantage over competitor deposits.
The acquisition of potash license areas where there is an occurrence of phosphate and potash mineralization within the same license areas has been missed by some sections of the market as it provides synergies for shared infrastructure such as ports and roads. As well as dealing Minbos into the potash sector, where M&A activity and valuations are relatively higher.
Catalysts
- Overall JORC resource for Cabinda due 4th quarter 2011
- Chivovo, Chibuete and Ueca resource estimates imminent
- Mongo Tando upgraded resource imminent
- Positive DSO results from exploration drilling confirm high grade potential at Cacata
- Positive results from exploration drilling confirm high grade potential at Kanzi
- Exploration results – ongoing
- Scoping Study for Kanzai DSO rock phosphate for export operation starts 4th quarter
- Bankable-Feasibility results for both Cacata and Kanzi by Sept 2012
- Project location and ore body result in excellent economics when compared to other proposed projects
Fertiliser inputs and products now core investments with the major mining houses. M&A activity is also on the rise in the phosphate and potash spaces at the upper end including BHP Billiton (ASX:BHP) and Vale/Mitsui – Mosaic – a $US385m acquisition of a rock phosphate development that will produce 3.9 mtpa of rock phosphate per annum.
Peers
Taking a line through its peers, if Minbos defines a JORC Resource around the 350 million tonne range; given projected low operating costs per tonne of around $45/t and the closeness to port of 30km, Minbos is extremely undervalued at current valuation of $24.5m given the comparison with its peers relative to Minemakers’ (ASX:MAK) valuation; Legend International (US: OTC BB) $104m valuation; Stonegate AGricom’s ( $143m valuation and Aguia Resources’ (ASX:AGR) $53m valuation.
Most of Minbos’ ASX and TSX listed peers carry much richer market valuations, which is well illustrated by MBAC Fertilizer (TSX: MBC) with a market capitalization of $205 million for a resource of 82.8 million tonnes, at 5.4% P205.
MBAC has completed a Preliminary Economic Assessment for production of 300,000 tonnes of P2O5 as a feedstock for Single Superphosphate from its Santana Project in Brazil.
Minbos is also a very tightly held stock, providing ample leverage to news flow and upside to upcoming milestones.
The combination of the already defined high-grade and potential DSO phosphate resources and the potential of defining large, high grade potash resources within the same licence area sets Minbos apart from its peers.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21652/minbos-resources-ltd-emerging-phosphate-producer-21652.html
Central Petroleum to re-enter Surprise-1 well in Amadeus Basin this weekend
Central Petroleum (ASX: CTP) set to commence re-entry of the Surprise-1 well in the Amadeus Basin, onshore central Australia, by this weekend.
The re-entry is the first of a liquids-focussed drilling program across the company’s acreage position, which will include the Madigan or Simpson East and Mt Kitty prospects.
Central plans to complete drilling and testing of Surprise-1 by mid-December 2011.
The company initially planned to start the drilling program earlier, however this was delayed by temporary road closures caused by localised rain.
Previously recorded estimates, confirmed by independent RPS Energy, subject to confirmation of visual hydrocarbon saturation, indicate that one 9 metre zone in the already drilled section of Surprise-1 has potential to flow at 500-1,000 barrels per day.
There are other potential direct hydrocarbon indicators throughout the main target zone, the Pacoota Sandstone, although this has not yet been drilled.
Capital raisings
In September, Central Petroleum raised $5 million through the placement of 91 million shares at $0.55 each to fund the drilling program and provide working capital.
The company also has a share purchase plan underway to raise a further $5.5 million, fully underwritten by Patersons Securities. The share purchase plan is due to close on November 28.
Central has plans to list on the Toronto Stock Exchange, to align it with other central Australian focussed TSX listed companies with comparable acreage positions and resource potential.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21648/central-petroleum-to-re-enter-surprise-1-well-in-amadeus-basin-this-weekend-21648.html
The re-entry is the first of a liquids-focussed drilling program across the company’s acreage position, which will include the Madigan or Simpson East and Mt Kitty prospects.
Central plans to complete drilling and testing of Surprise-1 by mid-December 2011.
The company initially planned to start the drilling program earlier, however this was delayed by temporary road closures caused by localised rain.
Previously recorded estimates, confirmed by independent RPS Energy, subject to confirmation of visual hydrocarbon saturation, indicate that one 9 metre zone in the already drilled section of Surprise-1 has potential to flow at 500-1,000 barrels per day.
There are other potential direct hydrocarbon indicators throughout the main target zone, the Pacoota Sandstone, although this has not yet been drilled.
Capital raisings
In September, Central Petroleum raised $5 million through the placement of 91 million shares at $0.55 each to fund the drilling program and provide working capital.
The company also has a share purchase plan underway to raise a further $5.5 million, fully underwritten by Patersons Securities. The share purchase plan is due to close on November 28.
Central has plans to list on the Toronto Stock Exchange, to align it with other central Australian focussed TSX listed companies with comparable acreage positions and resource potential.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21648/central-petroleum-to-re-enter-surprise-1-well-in-amadeus-basin-this-weekend-21648.html
Friday, 4 November 2011
WesternZagros to present at two industry conferences
Crude oil and natural gas explorer WesternZagros Resources (CVE:WZR) says its chief executive Simon Hatfield will attend two industry conferences slated for this month to discuss oil production from the extended well test program and drilling activity.
WesternZagros, who announced the news after markets closed Thursday, said the first symposium will be held in Calgary, at the Morgan Stanley Conference Centre on November 8 at 4 p.m.
In addition, Hatfield will also present on Thursday, November 10 at 11:30 a.m. at the New York Society of Security Analysis conference, in New York.
Both presentations will be made available on the company’s website on the day each conference is held, the company said in a statement.
WesternZagros is an international natural resources business engaged in the exploration, development and production of crude oil and natural gas in Iraq. It holds two production sharing contracts with the Kurdistan Regional Government, in Iraq.
The Calgary-based company saw its stock climb 3.80 percent to 82 cents a share Friday afternoon on Toronto’s main trading index.
WesternZagros, who announced the news after markets closed Thursday, said the first symposium will be held in Calgary, at the Morgan Stanley Conference Centre on November 8 at 4 p.m.
In addition, Hatfield will also present on Thursday, November 10 at 11:30 a.m. at the New York Society of Security Analysis conference, in New York.
Both presentations will be made available on the company’s website on the day each conference is held, the company said in a statement.
WesternZagros is an international natural resources business engaged in the exploration, development and production of crude oil and natural gas in Iraq. It holds two production sharing contracts with the Kurdistan Regional Government, in Iraq.
The Calgary-based company saw its stock climb 3.80 percent to 82 cents a share Friday afternoon on Toronto’s main trading index.
Bayfield Ventures promotes Marvin to VP of exploration
Vancouver-based Bayfield Ventures (CVE:BYV) said Thursday it has promoted Robert Marvin to vice president of exploration for the company. Marvin previously held the position of exploration manager for Bayfield's Rainy River gold project in northwestern Ontario since January 2010.
Marvin has experience in project exploration and development, throughout the Americas. He has been involved in mineral exploration for gold, copper, zinc, and uranium deposits, both along the entire Cordillera and in several areas of the Archean shield as an employee and as an independent consultant since 1979.
He graduated from the University of New Mexico, with a Bachelor of Science degree in geology in 1984. Marvin will remain as the company's "Qualified Person under National Instrument 43-101" and will continue to oversee Bayfield's Rainy River project.
"As Exploration Manager, Bob has been instrumental in the company's exploration success thus far on the Rainy River Project," said company president, Don Huston.
"He has been responsible for the exploration planning, implementation and geological analysis of the first 60,000 metres of Bayfield's current 100,000 metre drill program. We are pleased to promote Bob to VP of Exploration for the Company and look forward to continuing to work with him as we advance our projects in the Rainy River District."
In late September, Bayfield announced additional significant silver intercepts on its 100%-owned Burns Block property in the Rainy River District of north-western Ontario. Of the intercepts, the company encountered 1,414.55 grams per tonne (g/t) silver over 1.10 metres in hole RR10-52, occuring with previously reported 89.95 g/t gold.
The Burns Block is situated adjacent to the east and on strike to Rainy River Resources' (CVE:RR) multi-million ounce gold deposit.
Marvin has experience in project exploration and development, throughout the Americas. He has been involved in mineral exploration for gold, copper, zinc, and uranium deposits, both along the entire Cordillera and in several areas of the Archean shield as an employee and as an independent consultant since 1979.
He graduated from the University of New Mexico, with a Bachelor of Science degree in geology in 1984. Marvin will remain as the company's "Qualified Person under National Instrument 43-101" and will continue to oversee Bayfield's Rainy River project.
"As Exploration Manager, Bob has been instrumental in the company's exploration success thus far on the Rainy River Project," said company president, Don Huston.
"He has been responsible for the exploration planning, implementation and geological analysis of the first 60,000 metres of Bayfield's current 100,000 metre drill program. We are pleased to promote Bob to VP of Exploration for the Company and look forward to continuing to work with him as we advance our projects in the Rainy River District."
In late September, Bayfield announced additional significant silver intercepts on its 100%-owned Burns Block property in the Rainy River District of north-western Ontario. Of the intercepts, the company encountered 1,414.55 grams per tonne (g/t) silver over 1.10 metres in hole RR10-52, occuring with previously reported 89.95 g/t gold.
The Burns Block is situated adjacent to the east and on strike to Rainy River Resources' (CVE:RR) multi-million ounce gold deposit.
Millrock Resources: oodles of potential within its project generator business model
Millrock Resources (CVE:MRO, OTCQX: MLRKF) is a project generator and early stage discovery specialist that funds development of its property portfolio through joint venture participation. The Company has eight gold and copper projects in Alaska, and four porphyry copper projects in Arizona, with $15 million in exploration expenditures committed in the current calendar year.
Millrock creates value by identifying large ore bodies that can be ventured to major mining companies, and seeks to emulate Altius Minerals (TSE:ALS). Altius holds 9% of Millrock, and is a very successful Project Generator Company that is currently capitalized at around $310 million.
The Company is led by Gregory Beischer, who is President and CEO and is a seasoned explorationist who was previously with Inco, now owned by Vale (NYSE:VALE), and with whom Millrock maintains exploration interests. He was also with the Bristol Bay Native Corporation, which is one of twelve Native owned regional corporations created in Alaska to manage local landholdings and investments on behalf of the local inhabitants, and currently serves on the Alaska Minerals Commission, and was past President of the Alaska Miner’s Association.
Philip St. George serves as Chief Exploration Officer, and is an exploration geologist who was the first to recognize the porphyry mineralization at the Pebble Deposit in Alaska, and led the Cominco team that drilled out the initial 500 million tonnes of gold, copper and molybdenum mineralization. Teck owns Cominco and maintains exploration interests with Millrock. He was also Vice-President of Exploration for Novagold Resources from 1998 to 2003, and helped build that company’s project portfolio.
The Company’s most recent Strategic Alliance was announced in mid-October and is with Vale, which is the second largest mining company in the world, and will seek large scale copper, gold and porphyry deposits in target zones of Alaska that will be generated by Millrock.
Vale will provide funding of US$1.0 million in the first year, and holds an option for an additional US$1 million in the second year. This will underwrite early stage exploration that may be subject to a further option agreement providing $3.5 million over 3 years, allowing Vale to establish a 65/35 Joint Venture in each specific project.
Crescent Resources (CVE:CRC) holds an option to purchase a 100% interest over the Uncle Sam Project, covering 31 square kilometres, located 75 kilometres southeast of Fairbanks, and lying within a world class gold belt. Crescent has agreed to spend $2.5 million over 3 years, and issued 1,583,281 shares to Millrock, and may commit a total of 18% of its issued shares to Millrock to maintain that interest at the end of 2011.
Drilling is focused at Lone Tree where a shallow gold zone measuring 500 metres by 250 metres has been drill defined. Drilling highlights include 19.22 metres at 2.03 g/t Au, and 6.8 metres at 1.01 g/t Au, within a gold-in-soil anomaly that has been outlined over a strike of 4,000 metres and width of 1,000 metres.
A second prospect know as Wolf lies 2,000 metres along strike from the Naosi Prospect, which was recently discovered by Sumitomo Metal Mining, where drilling intersected 7.92 metres at 7.8 g/t Au and 19.7 g/t Ag. The partners have already reported an intersection at Wolf that assayed 4.42 g/t Au over 11.4 metres, and plan more drilling across this highly prospective target.
Teck Resources (TSE:TCK.A,TCK.B) has incurred almost US$3.6 million in exploration expenditures and will earn an initial 55% interest in the Estelle Project. Teck can increase this interest to 65% by expending an additional US$5 million in exploration costs, and making a cash payment of US$400,000 to Millrock.
Six main zones of large-scale anomalous gold and pathfinder element geochemistry have been identified over the past two years at Shoeshine, Shadow, Train, Oxide Ridge, RPM and Stoney.
Four drill holes for 1,500 metres were recently completed along various targets with assay results awaited by the partners. A drill hole at Shadow deepened a historic hole completed by Cominco in the 1980’s that intersected 3.01 g/t Au over 29.6 metres and ended in mineralization at a depth of 100 metres. Surface work also identified several previously unknown mineralized zones for future exploration.
Kinross Gold (TSE:K) is earning in on the Humble Project in southwest Alaska. Surface geochemical sampling has been completed over the entire land package, but early drilling has been problematic.
Millrock expended approximately $1 million for regional project generation in Alaska during 2011, and staked 7 new properties. The Fortymile Project located at the Yukon border, has drill ready targets and is also available for joint venture.
Vale has the option to earn a 60% interest in the Galiuro Project in southeastern Arizona through exploration expenditures totaling US$3.5 million and payments totaling US$850,000. The earn-in agreement is in its second year, and Vale has expended approximately US$2.5 million on the property to date, and may earn an additional 10% interest, for a total of 70%, by funding a feasibility study.
The target at the Galiuro property is a large porphyry copper and gold deposit hidden beneath alluvium and Tertiary volcanic cover, and is situated at the intersection of the Resolution, San Manuel and Kalamazoo porphyry copper trends
The partners are seeking deep porphyries, with recent drilling intercepting trace amounts of copper and anomalous molybdenum values along with the associated alteration package in geologically permissive rocks suggests that a porphyry copper deposit is nearby.
A third phase of drilling is expected to get underway in the fall of 2011 at Fourmile, which is a circular magnetic feature that is ringed by a strong conductive zone that is identified by a ZTEM airborne geophysical survey. Intense argillic alteration is known from rock exposures and prior drilling on the west side of the structure.
Inmet Mining Corp (TSX:IMN) may earn a 70% interest in the San Jose and Dry Mountains Project by incurring US$4 million in exploration expenditure and making option payments of US$300,000.
The partners are planning to drill at least 3 holes for up to 5,000 metres, which will test coincident ZTEM anomalies with overlying geochemical anomalies. The targets may represent buried porphyry copper deposits with molybdenum and gold credits, and are located directly along trend of the Safford copper deposits being developed by Freeport McMoran (NYSE:FCX). The nearby Safford and Morenci porphyry trends host over 10 billion tonnes of historic copper production and future reserves and resources.
Dry Mountain is located 20 kilometres to the southeast of San Jose on the Morenci Trend, and displays a geochemical anomaly carrying strong copper and molybdenum values measuring 10 kilometres in diameter, and carries coincident ZTEM-Magnetic signatures.
Millrock acquired the Rainville Project, located in southeastern Arizona, which is on an extension of the Safford porphyry copper trend, and is anticipating the execution of an earn-in agreement and completion of a geophysical survey.
The Company reported current assets of $11.9 million for the second quarter of 2011, of which $4.4 million is cash and cash equivalents, and generated $0.4 million in management fees from its status as an operator on a number of joint ventures. Like many junior exploration outfits, shares in Millrock have pulled back sharply in the past twelve months, and are currently trading at 47 cents, down over 50% from their 52-week high of $1.05, but up from their 2011 low of 35 cents which was hit in September. Investing in project generators like Millrock requires a medium to long term view, but for patient investors the rewards can be huge.
Millrock creates value by identifying large ore bodies that can be ventured to major mining companies, and seeks to emulate Altius Minerals (TSE:ALS). Altius holds 9% of Millrock, and is a very successful Project Generator Company that is currently capitalized at around $310 million.
The Company is led by Gregory Beischer, who is President and CEO and is a seasoned explorationist who was previously with Inco, now owned by Vale (NYSE:VALE), and with whom Millrock maintains exploration interests. He was also with the Bristol Bay Native Corporation, which is one of twelve Native owned regional corporations created in Alaska to manage local landholdings and investments on behalf of the local inhabitants, and currently serves on the Alaska Minerals Commission, and was past President of the Alaska Miner’s Association.
Philip St. George serves as Chief Exploration Officer, and is an exploration geologist who was the first to recognize the porphyry mineralization at the Pebble Deposit in Alaska, and led the Cominco team that drilled out the initial 500 million tonnes of gold, copper and molybdenum mineralization. Teck owns Cominco and maintains exploration interests with Millrock. He was also Vice-President of Exploration for Novagold Resources from 1998 to 2003, and helped build that company’s project portfolio.
The Company’s most recent Strategic Alliance was announced in mid-October and is with Vale, which is the second largest mining company in the world, and will seek large scale copper, gold and porphyry deposits in target zones of Alaska that will be generated by Millrock.
Vale will provide funding of US$1.0 million in the first year, and holds an option for an additional US$1 million in the second year. This will underwrite early stage exploration that may be subject to a further option agreement providing $3.5 million over 3 years, allowing Vale to establish a 65/35 Joint Venture in each specific project.
Crescent Resources (CVE:CRC) holds an option to purchase a 100% interest over the Uncle Sam Project, covering 31 square kilometres, located 75 kilometres southeast of Fairbanks, and lying within a world class gold belt. Crescent has agreed to spend $2.5 million over 3 years, and issued 1,583,281 shares to Millrock, and may commit a total of 18% of its issued shares to Millrock to maintain that interest at the end of 2011.
Drilling is focused at Lone Tree where a shallow gold zone measuring 500 metres by 250 metres has been drill defined. Drilling highlights include 19.22 metres at 2.03 g/t Au, and 6.8 metres at 1.01 g/t Au, within a gold-in-soil anomaly that has been outlined over a strike of 4,000 metres and width of 1,000 metres.
A second prospect know as Wolf lies 2,000 metres along strike from the Naosi Prospect, which was recently discovered by Sumitomo Metal Mining, where drilling intersected 7.92 metres at 7.8 g/t Au and 19.7 g/t Ag. The partners have already reported an intersection at Wolf that assayed 4.42 g/t Au over 11.4 metres, and plan more drilling across this highly prospective target.
Teck Resources (TSE:TCK.A,TCK.B) has incurred almost US$3.6 million in exploration expenditures and will earn an initial 55% interest in the Estelle Project. Teck can increase this interest to 65% by expending an additional US$5 million in exploration costs, and making a cash payment of US$400,000 to Millrock.
Six main zones of large-scale anomalous gold and pathfinder element geochemistry have been identified over the past two years at Shoeshine, Shadow, Train, Oxide Ridge, RPM and Stoney.
Four drill holes for 1,500 metres were recently completed along various targets with assay results awaited by the partners. A drill hole at Shadow deepened a historic hole completed by Cominco in the 1980’s that intersected 3.01 g/t Au over 29.6 metres and ended in mineralization at a depth of 100 metres. Surface work also identified several previously unknown mineralized zones for future exploration.
Kinross Gold (TSE:K) is earning in on the Humble Project in southwest Alaska. Surface geochemical sampling has been completed over the entire land package, but early drilling has been problematic.
Millrock expended approximately $1 million for regional project generation in Alaska during 2011, and staked 7 new properties. The Fortymile Project located at the Yukon border, has drill ready targets and is also available for joint venture.
Vale has the option to earn a 60% interest in the Galiuro Project in southeastern Arizona through exploration expenditures totaling US$3.5 million and payments totaling US$850,000. The earn-in agreement is in its second year, and Vale has expended approximately US$2.5 million on the property to date, and may earn an additional 10% interest, for a total of 70%, by funding a feasibility study.
The target at the Galiuro property is a large porphyry copper and gold deposit hidden beneath alluvium and Tertiary volcanic cover, and is situated at the intersection of the Resolution, San Manuel and Kalamazoo porphyry copper trends
The partners are seeking deep porphyries, with recent drilling intercepting trace amounts of copper and anomalous molybdenum values along with the associated alteration package in geologically permissive rocks suggests that a porphyry copper deposit is nearby.
A third phase of drilling is expected to get underway in the fall of 2011 at Fourmile, which is a circular magnetic feature that is ringed by a strong conductive zone that is identified by a ZTEM airborne geophysical survey. Intense argillic alteration is known from rock exposures and prior drilling on the west side of the structure.
Inmet Mining Corp (TSX:IMN) may earn a 70% interest in the San Jose and Dry Mountains Project by incurring US$4 million in exploration expenditure and making option payments of US$300,000.
The partners are planning to drill at least 3 holes for up to 5,000 metres, which will test coincident ZTEM anomalies with overlying geochemical anomalies. The targets may represent buried porphyry copper deposits with molybdenum and gold credits, and are located directly along trend of the Safford copper deposits being developed by Freeport McMoran (NYSE:FCX). The nearby Safford and Morenci porphyry trends host over 10 billion tonnes of historic copper production and future reserves and resources.
Dry Mountain is located 20 kilometres to the southeast of San Jose on the Morenci Trend, and displays a geochemical anomaly carrying strong copper and molybdenum values measuring 10 kilometres in diameter, and carries coincident ZTEM-Magnetic signatures.
Millrock acquired the Rainville Project, located in southeastern Arizona, which is on an extension of the Safford porphyry copper trend, and is anticipating the execution of an earn-in agreement and completion of a geophysical survey.
The Company reported current assets of $11.9 million for the second quarter of 2011, of which $4.4 million is cash and cash equivalents, and generated $0.4 million in management fees from its status as an operator on a number of joint ventures. Like many junior exploration outfits, shares in Millrock have pulled back sharply in the past twelve months, and are currently trading at 47 cents, down over 50% from their 52-week high of $1.05, but up from their 2011 low of 35 cents which was hit in September. Investing in project generators like Millrock requires a medium to long term view, but for patient investors the rewards can be huge.
Bravo Gold uncovers new mineralization at Homestake Ridge, BC
Bravo Gold Corp. (CVE:BVG) reported Thursday afternoon that it has identified new mineralization at its main Homestake Ridge project, and confirmed mineralization at its Kinskuch property, both located in northwestern British Columbia.
At Homestake, a total of 23 core holes were drilled on the property during this year's program, for a total of 7,364 metres. Surface IP geophysics totaling approximately 15 line-kilometres was completed over the Main Homestake deposit, the Homestake Silver deposit and several additional target areas on the property, with channel and surface sampling also carried out, the company said.
Bravo said drilling initially focused on two hanging-wall structures to the Homestake Silver deposit, and the connecting area between the Main and Homestake silver targets.
In addition, eight drill holes also tested the southeastern extension of Homestake Silver, where alteration and base metal mineralization were "visually encouraging", the company said, while IP geophysics directed drilling 350 metres to the southeast of the Fox Reef zone, in an area now called the South Reef zone.
Four holes were drilled into the new target, with each containing significant alteration and base metal mineralization in three distinct mineralized intervals, Bravo said. Mineralization has only been tested to a depth of 160 metres, and the geophysical signature can be traced for over 800 metres along the projected strike. Assays from channel sampling and all 23 drill holes are pending.
The large, 2,585 hectare Homestake project is being advanced as a potential high-grade underground mining operation, with a current NI 43-101 compliant indicated resource, at a 3.0 grams per tonne (g/t) gold equivalent cut-off, of 191,000 ounces gold and 1.35 million ounces of silver, plus an inferred resource of 530,000 ounces of gold and 13.47 million ounces of silver.
At the 595 square kilometre Kinskuch, located to the southeast of Homestake Ridge, exploration in 2011 included a 3,820 line-kilometre airborne survey over much of the project area, surface exploration of the main mineralized trends, and 855 metres of diamond drilling in four holes.
Drilling targeted the Illiance River Trend, which includes multiple mineral occurrences along an eight kilometre-long belt, and was designed to confirm historic high grade silver intercepts over a 1.6 kilometre portion of the trend, and more recent chip and grab sampling.
Assays received from 54 rock samples taken by Bravo along the 1.6 kilometre trend averaged 415 grams per tonne (g/t) silver, 0.49% copper, 2.78% lead and 3.18% zinc, confirming historic mineralization.
Highlights from this program include a one metre true width sample containing 5227 g/t silver, 4.67% lead and 8.44% zinc from a trench at the Silver Bar North occurrence, located in the northern part of the trend, the company said. In addition, Bravo also found a 0.5 metre sample containing 383 g/t silver, 7.76% lead and 26.67% zinc in the United Metals zone, at the southern end. Drill hole assays are also still pending due to lab delays.
Aside from its BC projects, Bravo also holds an 11.7 percent interest in Bravada Gold Corporation (CVE:BVA), which is exploring 22 projects in Nevada.
At Homestake, a total of 23 core holes were drilled on the property during this year's program, for a total of 7,364 metres. Surface IP geophysics totaling approximately 15 line-kilometres was completed over the Main Homestake deposit, the Homestake Silver deposit and several additional target areas on the property, with channel and surface sampling also carried out, the company said.
Bravo said drilling initially focused on two hanging-wall structures to the Homestake Silver deposit, and the connecting area between the Main and Homestake silver targets.
In addition, eight drill holes also tested the southeastern extension of Homestake Silver, where alteration and base metal mineralization were "visually encouraging", the company said, while IP geophysics directed drilling 350 metres to the southeast of the Fox Reef zone, in an area now called the South Reef zone.
Four holes were drilled into the new target, with each containing significant alteration and base metal mineralization in three distinct mineralized intervals, Bravo said. Mineralization has only been tested to a depth of 160 metres, and the geophysical signature can be traced for over 800 metres along the projected strike. Assays from channel sampling and all 23 drill holes are pending.
The large, 2,585 hectare Homestake project is being advanced as a potential high-grade underground mining operation, with a current NI 43-101 compliant indicated resource, at a 3.0 grams per tonne (g/t) gold equivalent cut-off, of 191,000 ounces gold and 1.35 million ounces of silver, plus an inferred resource of 530,000 ounces of gold and 13.47 million ounces of silver.
At the 595 square kilometre Kinskuch, located to the southeast of Homestake Ridge, exploration in 2011 included a 3,820 line-kilometre airborne survey over much of the project area, surface exploration of the main mineralized trends, and 855 metres of diamond drilling in four holes.
Drilling targeted the Illiance River Trend, which includes multiple mineral occurrences along an eight kilometre-long belt, and was designed to confirm historic high grade silver intercepts over a 1.6 kilometre portion of the trend, and more recent chip and grab sampling.
Assays received from 54 rock samples taken by Bravo along the 1.6 kilometre trend averaged 415 grams per tonne (g/t) silver, 0.49% copper, 2.78% lead and 3.18% zinc, confirming historic mineralization.
Highlights from this program include a one metre true width sample containing 5227 g/t silver, 4.67% lead and 8.44% zinc from a trench at the Silver Bar North occurrence, located in the northern part of the trend, the company said. In addition, Bravo also found a 0.5 metre sample containing 383 g/t silver, 7.76% lead and 26.67% zinc in the United Metals zone, at the southern end. Drill hole assays are also still pending due to lab delays.
Aside from its BC projects, Bravo also holds an 11.7 percent interest in Bravada Gold Corporation (CVE:BVA), which is exploring 22 projects in Nevada.
NanoViricides raises additional $5 mln in shelf offering, over 24 months of cash on hand
NanoViricides (OTCBB:NNVC.OB) announced today that it has raised $5.0 million, drawing down on its previously announced registered shelf offering, which became effective on April 29, 2010.
The company received this financing from a single investor, Seaside 88, LP, a Florida-based limited partnership. Seaside has previously financed NanoViricides with a total of approximately $15 million under a similar arrangement.
NanoViricides entered into a securities purchase agreement with Seaside for the purchase and sale of up to 500,000 shares of its Series B Preferred Stock at the purchase price of $10.00 per share.
On November 2, Seaside purchased an initial 250,000 shares of the vompany’s Series B Preferred Stock at the purchase price of $10.00 per share for an aggregate purchase price of $2.5 million.
The Series B preferred stock is convertible into a number of shares of the company's common stock every two weeks, with the first $400,000, or 40,000 shares of the Series B preferred stock, converted on November 2.
The Series B preferred shares do not receive dividends, nor are they eligible for voting rights.
"We are pleased with this continuation of financing by Seaside," said president Dr. Anil R. Diwan.
"This financing comes at a crucial time as we are advancing our influenza drug towards IND stage. It will help us to continue to move forward with all of the drug programs in our broad pipeline."
NanoViricides develops antiviral therapies using nanomaterials. The company develops its therapies against a number of viral diseases including H1N1 swine flu, H5N1 bird flu, seasonal Influenza, HIV, oral and genital Herpes, and Hepatitis C, among others.
The company previously announced that it has chosen a clinical candidate for its influenza therapy, namely NV-INF-1, under its FluCide anti-influenza nanoviricides program. NanoViricides is working on the pre-IND application with advice from consultant firm, Biologics Consulting Group.
CEO Eugene Seymour, added: "We continue to have more than 24 months of cash in hand, based on our current rate of expenditure. This additional investment will enable us to engage into expanding our pre-clinical studies towards filing an IND application to the FDA."
The company received this financing from a single investor, Seaside 88, LP, a Florida-based limited partnership. Seaside has previously financed NanoViricides with a total of approximately $15 million under a similar arrangement.
NanoViricides entered into a securities purchase agreement with Seaside for the purchase and sale of up to 500,000 shares of its Series B Preferred Stock at the purchase price of $10.00 per share.
On November 2, Seaside purchased an initial 250,000 shares of the vompany’s Series B Preferred Stock at the purchase price of $10.00 per share for an aggregate purchase price of $2.5 million.
The Series B preferred stock is convertible into a number of shares of the company's common stock every two weeks, with the first $400,000, or 40,000 shares of the Series B preferred stock, converted on November 2.
The Series B preferred shares do not receive dividends, nor are they eligible for voting rights.
"We are pleased with this continuation of financing by Seaside," said president Dr. Anil R. Diwan.
"This financing comes at a crucial time as we are advancing our influenza drug towards IND stage. It will help us to continue to move forward with all of the drug programs in our broad pipeline."
NanoViricides develops antiviral therapies using nanomaterials. The company develops its therapies against a number of viral diseases including H1N1 swine flu, H5N1 bird flu, seasonal Influenza, HIV, oral and genital Herpes, and Hepatitis C, among others.
The company previously announced that it has chosen a clinical candidate for its influenza therapy, namely NV-INF-1, under its FluCide anti-influenza nanoviricides program. NanoViricides is working on the pre-IND application with advice from consultant firm, Biologics Consulting Group.
CEO Eugene Seymour, added: "We continue to have more than 24 months of cash in hand, based on our current rate of expenditure. This additional investment will enable us to engage into expanding our pre-clinical studies towards filing an IND application to the FDA."
Great Western Minerals announces several management appointments
Great Western Minerals (CVE:GWG) said Thursday it has appointed David Kennedy as chief executive of its subsidiary Rare Earth Extraction Co (Rareco).
In his new role, Kennedy is responsible for the development, commissioning and operation of Great Western’s Steenkampskraal rare earth mine, in South Africa.
Kennedy, a co-founder of Less Common Metals, which was later acquired by Great Western Minerals, has served as Great Western's managing director of metals and alloys since 2008.
In addition, he is a chartered engineer and is a member of the Institute of Materials, Minerals and Mining.
Great Western also announced today that it has appointed Ian Higgins to the position of managing director of metals and alloys, replacing Kennedy, with overall responsibility for Less Common Metals and Great Western Technologies, the company's two processing subsidiaries.
Higgins joined Less Common Metals in 2001 and has been responsible for the day-to-day operations of Less Common Metals as well as procurement of rare earth materials from China.
Finally, the company also announced on Thursday the appointment of David Murphy as commercial director of Less Common Metals.
Murphy brings 30 plus years of experience in the rare earths sector with Less Common Metals, and previously with Johnson Matthey Rare Earth Products where he was general manager.
All appointments are effective immediately, the company said in a statement.
"These appointments significantly strengthen our management team and our corporate structure," Great Western’s chief executive, Jim Engdahl, said.
"The appointment of David Kennedy as CEO of Rareco means that our South African operations will be guided by one of the most highly experienced people in the global rare earth industry.
"His background will serve Rareco exceptionally well as he focuses on the Steenkampskraal operation as a future supply source for our alloy processing operations."
Great Western's rare earth specialty alloys are used in the battery, magnet and aerospace industries, and are produced by its two subsidiaries: Less Common Metals in Birkenhead, UK, and Great Western Technologies in Troy, Michigan.
Aside from its Steenkampskraal mine in South Africa, the Saskatoon, Saskatchewan-based company also holds interests in six rare earth exploration properties in North America.
In his new role, Kennedy is responsible for the development, commissioning and operation of Great Western’s Steenkampskraal rare earth mine, in South Africa.
Kennedy, a co-founder of Less Common Metals, which was later acquired by Great Western Minerals, has served as Great Western's managing director of metals and alloys since 2008.
In addition, he is a chartered engineer and is a member of the Institute of Materials, Minerals and Mining.
Great Western also announced today that it has appointed Ian Higgins to the position of managing director of metals and alloys, replacing Kennedy, with overall responsibility for Less Common Metals and Great Western Technologies, the company's two processing subsidiaries.
Higgins joined Less Common Metals in 2001 and has been responsible for the day-to-day operations of Less Common Metals as well as procurement of rare earth materials from China.
Finally, the company also announced on Thursday the appointment of David Murphy as commercial director of Less Common Metals.
Murphy brings 30 plus years of experience in the rare earths sector with Less Common Metals, and previously with Johnson Matthey Rare Earth Products where he was general manager.
All appointments are effective immediately, the company said in a statement.
"These appointments significantly strengthen our management team and our corporate structure," Great Western’s chief executive, Jim Engdahl, said.
"The appointment of David Kennedy as CEO of Rareco means that our South African operations will be guided by one of the most highly experienced people in the global rare earth industry.
"His background will serve Rareco exceptionally well as he focuses on the Steenkampskraal operation as a future supply source for our alloy processing operations."
Great Western's rare earth specialty alloys are used in the battery, magnet and aerospace industries, and are produced by its two subsidiaries: Less Common Metals in Birkenhead, UK, and Great Western Technologies in Troy, Michigan.
Aside from its Steenkampskraal mine in South Africa, the Saskatoon, Saskatchewan-based company also holds interests in six rare earth exploration properties in North America.
Thursday, 3 November 2011
Blackthorn Resources director buys A$52,000 worth of shares in the company
Blackthorn Resources (ASX: BTR) non-executive director Michael Oppenheimer has increased his indirect stake in the company.
Oppenheimer bought 100,000 shares on-market for A$0.52 per share, for a consideration of $52,000.
He now holds 463,000 shares which have a current market value of $222,240.
Blackthorn is currently in an interesting position, just last week the company announced intersections of 282.7 metres at 1.05% copper in the first drill hole on the Kitumba deposit at the Mumbwa Project in Zambia.
The results provide encouragement as they give confidence in the continuity and grade distribution within the Kitumba IOCG system.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21613/blackthorn-resources-director-buys-a52000-worth-of-shares-in-the-company--21613.html
Oppenheimer bought 100,000 shares on-market for A$0.52 per share, for a consideration of $52,000.
He now holds 463,000 shares which have a current market value of $222,240.
Blackthorn is currently in an interesting position, just last week the company announced intersections of 282.7 metres at 1.05% copper in the first drill hole on the Kitumba deposit at the Mumbwa Project in Zambia.
The results provide encouragement as they give confidence in the continuity and grade distribution within the Kitumba IOCG system.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21613/blackthorn-resources-director-buys-a52000-worth-of-shares-in-the-company--21613.html
Solomon Gold Plc's gold intersections hint at potential of Fauro Island Project
Solomon Gold Plc (LON: SOLG) has intersected 16 metres at 1.11 grams per tonne (g/t) gold and 2 metres at 1.57g/t gold from diamond drilling at its 100%-owned Fauro Island Project in Solomon Islands.
Solomon, which is active in four drill programs for gold, silver and copper in the Solomon Islands and Australia, is currently progressing drilling and reinterpretation work at prospects on Fauro Island which have the potential to host a world class deposit.
Highlights include:
- 16 metres at 1.11g/t gold from 3 metres and 2 metres at 1.57g/t gold from 50 metres at the Meriguna Prospect;
- 266 metres at 0.16g/t gold and 0.03% copper from 20 metres, including 21 metres at 0.50g/t gold and 0.05% copper from 63 metres at the Ballyorlo Prospect; and
- 157 metres at 0.42g/t gold from 38 metres, including 45 metres at 1.07g/t gold and 11m at 4.03g/t gold from 38 metres at Ballyorlo East.
A diamond drill hole at Ballyorlo West terminated at a depth of 544 metres and assay results are pending. Numerous zones of visible disseminated copper mineralisation were also encountered.
The results would provide encouragement and the company is planning a shallow drillhole program for Ballyorlo, Kiovakase and Meriguna to test for a surface oxide gold resource.
In addition, a review and reinterpretation with an independent porphyry / epithermal consultant, of the data associated with geophysics, soil, rock chip, trenching and drilling progress has been completed for the Ballyorlo, Kiovakase and Meriguna Prospects.
This has been done in order to generate on-going drill targets and determine the direction of the on-going exploration program.
Interestingly, Newcrest Mining’s (ASX: NCM) Lihir mine, on the neighbouring Niolam Island of Papua New Guinea, has 28.8 million ounces of gold in Reserves, and 43 million ounces in Measured and Indicated Resources.
The Fauro Project covers the seven currently identified prospects of Ballyorlo, Kiovakase, Meriguna, Bataha, Ballteara and two at Northern Fauro.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21594/solomon-gold-plcs-gold-intersections-hint-at-potential-of-fauro-island-project-21594.html
Solomon, which is active in four drill programs for gold, silver and copper in the Solomon Islands and Australia, is currently progressing drilling and reinterpretation work at prospects on Fauro Island which have the potential to host a world class deposit.
Highlights include:
- 16 metres at 1.11g/t gold from 3 metres and 2 metres at 1.57g/t gold from 50 metres at the Meriguna Prospect;
- 266 metres at 0.16g/t gold and 0.03% copper from 20 metres, including 21 metres at 0.50g/t gold and 0.05% copper from 63 metres at the Ballyorlo Prospect; and
- 157 metres at 0.42g/t gold from 38 metres, including 45 metres at 1.07g/t gold and 11m at 4.03g/t gold from 38 metres at Ballyorlo East.
A diamond drill hole at Ballyorlo West terminated at a depth of 544 metres and assay results are pending. Numerous zones of visible disseminated copper mineralisation were also encountered.
The results would provide encouragement and the company is planning a shallow drillhole program for Ballyorlo, Kiovakase and Meriguna to test for a surface oxide gold resource.
In addition, a review and reinterpretation with an independent porphyry / epithermal consultant, of the data associated with geophysics, soil, rock chip, trenching and drilling progress has been completed for the Ballyorlo, Kiovakase and Meriguna Prospects.
This has been done in order to generate on-going drill targets and determine the direction of the on-going exploration program.
Interestingly, Newcrest Mining’s (ASX: NCM) Lihir mine, on the neighbouring Niolam Island of Papua New Guinea, has 28.8 million ounces of gold in Reserves, and 43 million ounces in Measured and Indicated Resources.
The Fauro Project covers the seven currently identified prospects of Ballyorlo, Kiovakase, Meriguna, Bataha, Ballteara and two at Northern Fauro.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21594/solomon-gold-plcs-gold-intersections-hint-at-potential-of-fauro-island-project-21594.html
Energio progresses drilling targeting maiden iron ore JORC Resource at Agbaja Plateau
Energio (ASX: EIO) is making solid progress at the Agbaja Iron Ore Exploration Project in Nigeria with a drill now operating around the clock aimed at drilling sixty of seven hundred planned holes to the end of October.
The first consignment of reverse circulation drill hole sample material is being despatched to Perth for laboratory analysis and the appointment of consultants to supervise and sign JORC Resource reporting is being finalised.
On site staff now includes 39 people from the local host communities of Agbaja, demonstrating Energio's commitment to community involvement.
The project has potential to deliver the company a maiden iron ore JORC Resource in the first half of 2012.
A scoping study has identified a 10 million tonne per annum open cut mining operation utilising railway and transhipping from Warri River port. Rock chip assays to date have returned grades of up to 55% iron.
Energio's iron ore leases are proximal to an existing iron ore railway, road and port infrastructure and a 3.3 million tonne per annum Itakpe iron ore beneficiation facility, which is government owned – presently on care and maintenance.
The Agbaja Plateau project can be accessed via road, rail and air from the company’s Nigerian head office in Lagos. A network of sealed bitumen roads exist throughout the target project areas.
The plateau is 140 square kilometres in area and hosts a horizontal sandstone layer some 20 to 30 metres thick which has had embedded in it magnetite mineralisation by sedimentary action.
To test the content and quality of the iron in the mineralised zones of interest, Energio has delineated an area of about 1600 Hectares for drilling using a drill grid spacing of 200 metres by 100 metres.
Significantly, the mineralised zone of interest represents only 10% of the entire Agbaja Iron Ore Exploration Project’s land area.
A number of reverse circulation holes will be extended to about 200 metres deep to determine whether deeper ore bodies are present on the Agbaja Iron Ore Exploration Project.
In addition, some drill core will be taken to enable metallurgical testing to be carried out for mineral processing considerations.
The drilling program is scheduled to last about four months and the company expects to receive further drilling results toward the end of November which will be followed by regular updates through to the end of the program.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21599/energio-progresses-drilling-targeting-maiden-iron-ore-jorc-resource-at-agbaja-plateau-21599.html
The first consignment of reverse circulation drill hole sample material is being despatched to Perth for laboratory analysis and the appointment of consultants to supervise and sign JORC Resource reporting is being finalised.
On site staff now includes 39 people from the local host communities of Agbaja, demonstrating Energio's commitment to community involvement.
The project has potential to deliver the company a maiden iron ore JORC Resource in the first half of 2012.
A scoping study has identified a 10 million tonne per annum open cut mining operation utilising railway and transhipping from Warri River port. Rock chip assays to date have returned grades of up to 55% iron.
Energio's iron ore leases are proximal to an existing iron ore railway, road and port infrastructure and a 3.3 million tonne per annum Itakpe iron ore beneficiation facility, which is government owned – presently on care and maintenance.
The Agbaja Plateau project can be accessed via road, rail and air from the company’s Nigerian head office in Lagos. A network of sealed bitumen roads exist throughout the target project areas.
The plateau is 140 square kilometres in area and hosts a horizontal sandstone layer some 20 to 30 metres thick which has had embedded in it magnetite mineralisation by sedimentary action.
To test the content and quality of the iron in the mineralised zones of interest, Energio has delineated an area of about 1600 Hectares for drilling using a drill grid spacing of 200 metres by 100 metres.
Significantly, the mineralised zone of interest represents only 10% of the entire Agbaja Iron Ore Exploration Project’s land area.
A number of reverse circulation holes will be extended to about 200 metres deep to determine whether deeper ore bodies are present on the Agbaja Iron Ore Exploration Project.
In addition, some drill core will be taken to enable metallurgical testing to be carried out for mineral processing considerations.
The drilling program is scheduled to last about four months and the company expects to receive further drilling results toward the end of November which will be followed by regular updates through to the end of the program.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21599/energio-progresses-drilling-targeting-maiden-iron-ore-jorc-resource-at-agbaja-plateau-21599.html
Kalgoorlie Mining Company granted temporary suspension to finalise capital raising
Kalgoorlie Mining Company (ASX: KMC) has been granted a status change to temporary suspension by the ASX.
Kalgoorlie Mining is currently finalising a capital raising transaction, and has said that it expects to make an announcement on the proposed transaction by Monday 7 November.
The company is currently in a very interesting position, and has turned the Bullant Gold mine into a cash flow generating operation within six months of ownership due to an ore agreement.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21600/kalgoorlie-mining-company-granted-temporary-suspension-to-finalise-capital-raising-21600.html
Kalgoorlie Mining is currently finalising a capital raising transaction, and has said that it expects to make an announcement on the proposed transaction by Monday 7 November.
The company is currently in a very interesting position, and has turned the Bullant Gold mine into a cash flow generating operation within six months of ownership due to an ore agreement.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21600/kalgoorlie-mining-company-granted-temporary-suspension-to-finalise-capital-raising-21600.html
Hudson Resources completes phase two drill program in Greenland, intersects 6.5% TREO
Hudson Resources (CVE:HUD) announced Thursday it completed its phase two drill program on its wholly owned Sarfartoq rare earth element (REE) property in Greenland, where it intersected up to 6.5 percent total rare earth oxide (TREO).
The phase two program consisted of a total of 16,514 metres throughout 71 infill and step-out drill holes on the property.
On the ST1 zone, the company drilled 4,888 metres. It also drilled 1,858 metres in the periphery to the ST1 zone, and another 1,450 metres on the ST19 zone, located about nine kilometres southeast of ST1.
The highest grade assay returned 6.49% TREO over 8.0 metres in hole SAR11-71, which lies on the north end of the ST1 zone, well outside of the current resource model, Hudson said.
Meanwhile, hole SAR11-58 intersected 22.0 metres at 3.95 percent TREO, and hole SAR11-62 returned 8.0 metres averaging 4.91 percent TREO.
President James Tuer commented: "We are very pleased with the results from our 2011 Phase Two drill program. We have now demonstrated that the mineralization extends to the northeast and have intersected some of our highest grade material as we move in that direction.
"A step out hole almost a kilometer north of ST1 intercepted some of our highest grade material to date and confirms the exploration potential of this largely untested Sarfartoq carbonatite.
"Now that all of our 2011 drill results are in we will be working towards preparing an updated resource model in the coming months.
"Based on this year’s results, we expect to be able to move resources from the inferred to indicated category and increase the overall grade of the resource."
Indeed, the preliminary economic assessment for the Sarfartoq property, which is being carried out by Wardrop is now expected for completion within the next two weeks.
Currently, the company has outlined an NI 43-101 compliant resource estimate of 14.1 million tonnes at 1.5 percent TREO in the inferred category.
Hudson also said it plans to develop the resource as a mine for neodymium, a common REE that has several applications - it is a popular additive in glasses, and is a component in alloys used to make high strength neodymium magnets, a powerful permanent magnet for products like microphones, loudspeakers, in-ear headphones and computer hard disks.
Neodymium is currently priced at $240 per kilogram outside of China, and $145 per kilogram within China.
On the TSX-Venture, Hudson share prices rose six percent to $0.53, as of 1:55 pm EDT.
The phase two program consisted of a total of 16,514 metres throughout 71 infill and step-out drill holes on the property.
On the ST1 zone, the company drilled 4,888 metres. It also drilled 1,858 metres in the periphery to the ST1 zone, and another 1,450 metres on the ST19 zone, located about nine kilometres southeast of ST1.
The highest grade assay returned 6.49% TREO over 8.0 metres in hole SAR11-71, which lies on the north end of the ST1 zone, well outside of the current resource model, Hudson said.
Meanwhile, hole SAR11-58 intersected 22.0 metres at 3.95 percent TREO, and hole SAR11-62 returned 8.0 metres averaging 4.91 percent TREO.
President James Tuer commented: "We are very pleased with the results from our 2011 Phase Two drill program. We have now demonstrated that the mineralization extends to the northeast and have intersected some of our highest grade material as we move in that direction.
"A step out hole almost a kilometer north of ST1 intercepted some of our highest grade material to date and confirms the exploration potential of this largely untested Sarfartoq carbonatite.
"Now that all of our 2011 drill results are in we will be working towards preparing an updated resource model in the coming months.
"Based on this year’s results, we expect to be able to move resources from the inferred to indicated category and increase the overall grade of the resource."
Indeed, the preliminary economic assessment for the Sarfartoq property, which is being carried out by Wardrop is now expected for completion within the next two weeks.
Currently, the company has outlined an NI 43-101 compliant resource estimate of 14.1 million tonnes at 1.5 percent TREO in the inferred category.
Hudson also said it plans to develop the resource as a mine for neodymium, a common REE that has several applications - it is a popular additive in glasses, and is a component in alloys used to make high strength neodymium magnets, a powerful permanent magnet for products like microphones, loudspeakers, in-ear headphones and computer hard disks.
Neodymium is currently priced at $240 per kilogram outside of China, and $145 per kilogram within China.
On the TSX-Venture, Hudson share prices rose six percent to $0.53, as of 1:55 pm EDT.
Dialog Axiata reports sharp revenue growth for year-to-dateDialog Axiata reports sharp revenue growth for year-to-date
Dialog Axiata Plc (COL:DIAL), Sri Lankan's largest telecommunications company, reported Friday strong revenue growth during the nine months ending September 30.
The company, which operates Dialog Group, whose subsidiaries include Dialog Broadband Networks and Dialog Television, reported revenues of LKR 33.7 billion for the period, up 10 percent year-over-year.
Revenue growth, in combination with effective cost management led the Group segment to post EBITDA of LKR 11.7 billion, up five percent over the same period last year. Group EBITDA in the third quarter was LKR 4.3 billion.
Net profit for the group was LKR 3.9 billion for the nine months, up four percent year-over-year, while net profit for the latest third quarter rose one percent from the second quarter to LKR 1.4 billion.
The growth was underpinned by robust performance in its core mobile business, the company said.
On the strength of a 7 million strong mobile subscriber base, Dialog Axiata Plc's revenue for the nine months ending September 30 was recorded at LKR 30.9billion, up 10 percent relative to the corresponding period in 2010.
However, costs rose due to revenue-linked costs associated with international origination and domestic interconnection charges, and escalation in network operating costs in line with the aggressive expansion of the company’s 2G and 3G infrastructure footprint. Higher costs were also related to the impact of non-recoverable VAT expenditures, the company said.
The Plc's EBITDA was flat at LKR 10.9 billion for the first nine months of the year, with an EBITDA margin of 35 percent year-to-date.
Dialog's television segment saw revenues grow 13 percent year-over-year to reach LKR 1.7 billion for the nine month period, with EBITDA of LKR 377 million. The Pay Television subscriber base increased by 32 percent to surpass the 200,000 subscriber milestone during the third quarter, relative to the corresponding period in 2010.
Dialog Broadband Networks, which features the company's fixed telecommunications business, continued to consolidate performance trends of the previous quarters, the company said, with EBITDA year-to-date growing 175 percent over the previous year period to LKR 456 million. The unit also saw aggressive depreciation charges in the third quarter, however, accruing from the accelerated amortization of its CDMA and WiMAX networks.
Capital expenditure for the year to date has been directed in the main towards strategic investments in High Speed Mobile Broadband and Optical Fibre Network (OFN) expansion projects.
The company, which operates Dialog Group, whose subsidiaries include Dialog Broadband Networks and Dialog Television, reported revenues of LKR 33.7 billion for the period, up 10 percent year-over-year.
Revenue growth, in combination with effective cost management led the Group segment to post EBITDA of LKR 11.7 billion, up five percent over the same period last year. Group EBITDA in the third quarter was LKR 4.3 billion.
Net profit for the group was LKR 3.9 billion for the nine months, up four percent year-over-year, while net profit for the latest third quarter rose one percent from the second quarter to LKR 1.4 billion.
The growth was underpinned by robust performance in its core mobile business, the company said.
On the strength of a 7 million strong mobile subscriber base, Dialog Axiata Plc's revenue for the nine months ending September 30 was recorded at LKR 30.9billion, up 10 percent relative to the corresponding period in 2010.
However, costs rose due to revenue-linked costs associated with international origination and domestic interconnection charges, and escalation in network operating costs in line with the aggressive expansion of the company’s 2G and 3G infrastructure footprint. Higher costs were also related to the impact of non-recoverable VAT expenditures, the company said.
The Plc's EBITDA was flat at LKR 10.9 billion for the first nine months of the year, with an EBITDA margin of 35 percent year-to-date.
Dialog's television segment saw revenues grow 13 percent year-over-year to reach LKR 1.7 billion for the nine month period, with EBITDA of LKR 377 million. The Pay Television subscriber base increased by 32 percent to surpass the 200,000 subscriber milestone during the third quarter, relative to the corresponding period in 2010.
Dialog Broadband Networks, which features the company's fixed telecommunications business, continued to consolidate performance trends of the previous quarters, the company said, with EBITDA year-to-date growing 175 percent over the previous year period to LKR 456 million. The unit also saw aggressive depreciation charges in the third quarter, however, accruing from the accelerated amortization of its CDMA and WiMAX networks.
Capital expenditure for the year to date has been directed in the main towards strategic investments in High Speed Mobile Broadband and Optical Fibre Network (OFN) expansion projects.
Sunridge Gold intersects 18.05 g/t gold over 4 metres at Gupo deposit in Eritrea
Sunridge Gold (CVE:SGC) said Thursday it intersected up to 18.05 grams per tonne (g/t) gold on the Gupo deposit of its Asmara gold project in Eritrea.
The current and ongoing drill program at Asmara consists of a total of 7,000 metres over 90 holes, and is intended to expand and upgrade the current inferred resource.
Highlights of assays from the first 16 holes included 12 metres grading 6.56 g/t gold, including four metres at 18.05 g/t gold, in hole GG-086-R.
Hole GG-080-R also found 27 metres grading 2.38 g/t gold, while hole GG-087-R intersected 14 metres at 2.54 g/t gold.
These results have extended the gold mineralization over a strike length of about 1.6 kilometres, the company said. The resource is close to the surface, and extends to at least 80 metres in vertical depth, remaining open.
Sunridge said the results will be included in a prefeasibility study (PFS) being compiled by Snowden Mining Industry Consultants and GBM Minerals Engineering.
The PFS will cover the three northern deposits on the property, including the Emba Derho copper-zinc-gold deposit, the Adi Nefas zinc-gold-copper deposit, and the Gupo gold deposit, and is expected for completion in late March 2012.
Other notable results from the first set of returned assays include hole GG-088-R, which intersected 12 metres averaging 6.36 g/t gold, and hole GG-092-R, which returned 2.35 g/t gold over 15 metres.
The current resource estimate for Asmara stands at 1.97 million tonnes, at an average grade of 2.99 g/t gold, for a total of 189,000 ounces of gold in the inferred resource category.
In addition to its properties in Eritrea, Sunridge also holds exploration properties in Madagascar.
On the TSX-Venture Exchange, the Vancouver, B.C.-based company's share price rose 2.56 percent to $0.40, as of 1:35 pm EDT.
The current and ongoing drill program at Asmara consists of a total of 7,000 metres over 90 holes, and is intended to expand and upgrade the current inferred resource.
Highlights of assays from the first 16 holes included 12 metres grading 6.56 g/t gold, including four metres at 18.05 g/t gold, in hole GG-086-R.
Hole GG-080-R also found 27 metres grading 2.38 g/t gold, while hole GG-087-R intersected 14 metres at 2.54 g/t gold.
These results have extended the gold mineralization over a strike length of about 1.6 kilometres, the company said. The resource is close to the surface, and extends to at least 80 metres in vertical depth, remaining open.
Sunridge said the results will be included in a prefeasibility study (PFS) being compiled by Snowden Mining Industry Consultants and GBM Minerals Engineering.
The PFS will cover the three northern deposits on the property, including the Emba Derho copper-zinc-gold deposit, the Adi Nefas zinc-gold-copper deposit, and the Gupo gold deposit, and is expected for completion in late March 2012.
Other notable results from the first set of returned assays include hole GG-088-R, which intersected 12 metres averaging 6.36 g/t gold, and hole GG-092-R, which returned 2.35 g/t gold over 15 metres.
The current resource estimate for Asmara stands at 1.97 million tonnes, at an average grade of 2.99 g/t gold, for a total of 189,000 ounces of gold in the inferred resource category.
In addition to its properties in Eritrea, Sunridge also holds exploration properties in Madagascar.
On the TSX-Venture Exchange, the Vancouver, B.C.-based company's share price rose 2.56 percent to $0.40, as of 1:35 pm EDT.
Lithium Americas aiming to become world’s lowest cost lithium producer
Lithium Americas (TSE:LAC, OTCQX:LHMAF) is developing the third largest, and one of the world’s lowest cost lithium operations at Cauchari-Olaroz in northern Argentina. The Company is looking forward to completing a Definitive Feasibility Study in the first half of 2012, and then commencing construction of the production facilities.
The Company recently completed bench scale testing at SGS Mineral Services in Lakefield, Ontario, and is now constructing an on-site pilot plant that is scheduled for completion in the current quarter. The plant is expected to produce 30 kilograms of 99.5% pure lithium carbonate per day.
Lithium Americas is the only lithium development company in the region that maintains a full analytical lab on site and includes top of the line analytical equipment like Atomic Absorption Spectrometers. This equipment can instantly measure all of the elements contained in recovered brine, and is monitored by assayers from Alex Stewart, who are a global provider of assay services to the resources industry.
The lab is capable of analyzing 50 full samples per day, and includes measurements for lithium, sodium, potassium, calcium, magnesium, boron, sulphates, and chlorides, as well as physical parameters including pH balance and conductivity, with all samples additionally verified by certified international labs.
The facility is capable of housing up to 20 people and maintains a full time engineering team of 6 professionals and 10 technicians, with over 60 years of combined experience in the recovery and processing of lithium. They operate from an onsite engineering lab that contains full thermodynamic modeling capabilities, and is capable of producing lithium carbonate at bench scale.
The Company recently completed a full cycle of evaporation studies from its industrial scale ponds. These due diligence studies extended over a period of 180 days, and produced approximately 15 tonnes of concentrated lithium brine.
Brine production was in line with estimates compiled in the Preliminary Economic Assessment, with final processing completed off-site utilizing the pilot plant. This plant has now been deployed to Cauchari-Olaroz for ongoing production of lithium carbonate that will be supplied to potential customers for qualification studies.
A Thermodynamic Model was completed and now allows for accurate predictions on the changes within the brine, as it moves through each stage in the process cycle from well extraction, evaporative cycle, and production of lithium carbonate at the process plant.
The final hydrological model is in the construction phase and will establish the number of wells required in full production mode. The model will also convert resources into reserves, establish the water balance of the underlying salt lake, and the final life cycle of the mine.
Four production wells were utilized to evaluate the yield potential of the brine aquifer, with positive pump tests yielding up to 25 litres per second. A fifth well tested the freshwater aquifer and produced positive results yielding 40 litres per second.
The flow rates identified in three of the four production wells were more than double the estimates used in the PEA, which estimated a total brine production rate of approximately 400 litres per second, to produce 20,000 tonnes per year of lithium carbonate drawing upon 40 production wells. The number of production wells needed to produce the same tonnage of lithium carbonate should now drop in half, and this data will be fully evaluated in the DFS.
The PEA indicated that the lithium carbonate processing plant would require approximately 60 to 80 litres per second of low quality freshwater, and estimated that 6 wells would be required to service this need. The current round of testing confirmed that a smaller number of wells could meet the process plant water requirements.
These tests confirm that fewer production wells will be required to extract brine, and the presence of significant quantities of freshwater in close proximity to the mine site will significantly reduce both the capital and cash operating costs that were set out in the PEA. Many lithium mines suffer from lack of a local water source and are required to ship brine concentrate to a process plant that is located some distance from the mine, driving up handling, transport and capital expenses.
Cash operating costs to produce a tonne of lithium carbonate were previously calculated at US$1,434, which is believed to be the lowest cost estimate for worldwide lithium brine production. This estimate will be subject to further downward revision as the cost of operating fewer wells, and the application of a potash credit is taken into account.
Potash tests have confirmed that 2 tonnes of potash can be harvested from the brine evaporation ponds for every 1 tonne of lithium carbonate that is recovered. Approximately 1.5 tonnes of potash rich salts were harvested during the recently completed full evaporation cycle testing, and may provide a significant revenue and cash flow boost to the overall economics of the Project. The Company also intends to define the commercial viability of other brine by products such as boron, during the completion of the DFS.
Lithium Americas shipped 300 kilograms of potash to Saskatchewan Research Council labs in Saskatoon, to evaluate the production of potassium chloride at 95% purity, which can be sold as fertilizer. Results are expected in the current quarter.
Chemical sampling confirmed that after extracting significant amounts of brine, the chemical composition of the remaining brine stayed very stable. This continuity applied across extensive hydraulic capture zones provided a high degree of confidence in the resource estimate.
The PEA estimated a staggered two stage development in lithium carbonate production, commencing at 3,000 tonnes per year in 2014, and building up to 20,000 tonnes per year in 2016. A mine upgrade would then see production gradually increase to 40,000 tonnes per year by 2019.
Management is now evaluating the production of up to 80,000 tonnes per year of potash, and possibly some additional by products.
The recently completed PEA determined a pre-tax Net Present Value of the Cauchari Project at US$983 million, based on an 8% discount rate, and lithium carbonate price of $5,500 per tonne. The capital cost to complete the construction of the first production phase rated at 20,000 tonnes per annum of lithium carbonate is estimated at $217 million, and the second phase boosting production to 40,000 tonnes per annum adds $182 million to capital expenditure
Annualized revenues are expected to kick off in 2014 at $18.0 million, and produce an EBITDA of $10.5 million, reach $116.0 million, and produce an EBITDA of $78.4 million in 2016, and reach maximum operating capacity in 2019, producing revenue of $224.0 million, and an EBITDA of $155.1 million.
These estimates do not take into account the production of potash or additional by products, with potash prices falling into a price range of US$350 to US$500 per tonne, may provide significant additional revenues and free cash flow.
The mine is expected to have an extremely long life, taking 40 years to exhaust 50% of the currently defined NI 43-101 compliant resources, which currently cover approximately one third of the property package.
The Company recently completed bench scale testing at SGS Mineral Services in Lakefield, Ontario, and is now constructing an on-site pilot plant that is scheduled for completion in the current quarter. The plant is expected to produce 30 kilograms of 99.5% pure lithium carbonate per day.
Lithium Americas is the only lithium development company in the region that maintains a full analytical lab on site and includes top of the line analytical equipment like Atomic Absorption Spectrometers. This equipment can instantly measure all of the elements contained in recovered brine, and is monitored by assayers from Alex Stewart, who are a global provider of assay services to the resources industry.
The lab is capable of analyzing 50 full samples per day, and includes measurements for lithium, sodium, potassium, calcium, magnesium, boron, sulphates, and chlorides, as well as physical parameters including pH balance and conductivity, with all samples additionally verified by certified international labs.
The facility is capable of housing up to 20 people and maintains a full time engineering team of 6 professionals and 10 technicians, with over 60 years of combined experience in the recovery and processing of lithium. They operate from an onsite engineering lab that contains full thermodynamic modeling capabilities, and is capable of producing lithium carbonate at bench scale.
The Company recently completed a full cycle of evaporation studies from its industrial scale ponds. These due diligence studies extended over a period of 180 days, and produced approximately 15 tonnes of concentrated lithium brine.
Brine production was in line with estimates compiled in the Preliminary Economic Assessment, with final processing completed off-site utilizing the pilot plant. This plant has now been deployed to Cauchari-Olaroz for ongoing production of lithium carbonate that will be supplied to potential customers for qualification studies.
A Thermodynamic Model was completed and now allows for accurate predictions on the changes within the brine, as it moves through each stage in the process cycle from well extraction, evaporative cycle, and production of lithium carbonate at the process plant.
The final hydrological model is in the construction phase and will establish the number of wells required in full production mode. The model will also convert resources into reserves, establish the water balance of the underlying salt lake, and the final life cycle of the mine.
Four production wells were utilized to evaluate the yield potential of the brine aquifer, with positive pump tests yielding up to 25 litres per second. A fifth well tested the freshwater aquifer and produced positive results yielding 40 litres per second.
The flow rates identified in three of the four production wells were more than double the estimates used in the PEA, which estimated a total brine production rate of approximately 400 litres per second, to produce 20,000 tonnes per year of lithium carbonate drawing upon 40 production wells. The number of production wells needed to produce the same tonnage of lithium carbonate should now drop in half, and this data will be fully evaluated in the DFS.
The PEA indicated that the lithium carbonate processing plant would require approximately 60 to 80 litres per second of low quality freshwater, and estimated that 6 wells would be required to service this need. The current round of testing confirmed that a smaller number of wells could meet the process plant water requirements.
These tests confirm that fewer production wells will be required to extract brine, and the presence of significant quantities of freshwater in close proximity to the mine site will significantly reduce both the capital and cash operating costs that were set out in the PEA. Many lithium mines suffer from lack of a local water source and are required to ship brine concentrate to a process plant that is located some distance from the mine, driving up handling, transport and capital expenses.
Cash operating costs to produce a tonne of lithium carbonate were previously calculated at US$1,434, which is believed to be the lowest cost estimate for worldwide lithium brine production. This estimate will be subject to further downward revision as the cost of operating fewer wells, and the application of a potash credit is taken into account.
Potash tests have confirmed that 2 tonnes of potash can be harvested from the brine evaporation ponds for every 1 tonne of lithium carbonate that is recovered. Approximately 1.5 tonnes of potash rich salts were harvested during the recently completed full evaporation cycle testing, and may provide a significant revenue and cash flow boost to the overall economics of the Project. The Company also intends to define the commercial viability of other brine by products such as boron, during the completion of the DFS.
Lithium Americas shipped 300 kilograms of potash to Saskatchewan Research Council labs in Saskatoon, to evaluate the production of potassium chloride at 95% purity, which can be sold as fertilizer. Results are expected in the current quarter.
Chemical sampling confirmed that after extracting significant amounts of brine, the chemical composition of the remaining brine stayed very stable. This continuity applied across extensive hydraulic capture zones provided a high degree of confidence in the resource estimate.
The PEA estimated a staggered two stage development in lithium carbonate production, commencing at 3,000 tonnes per year in 2014, and building up to 20,000 tonnes per year in 2016. A mine upgrade would then see production gradually increase to 40,000 tonnes per year by 2019.
Management is now evaluating the production of up to 80,000 tonnes per year of potash, and possibly some additional by products.
The recently completed PEA determined a pre-tax Net Present Value of the Cauchari Project at US$983 million, based on an 8% discount rate, and lithium carbonate price of $5,500 per tonne. The capital cost to complete the construction of the first production phase rated at 20,000 tonnes per annum of lithium carbonate is estimated at $217 million, and the second phase boosting production to 40,000 tonnes per annum adds $182 million to capital expenditure
Annualized revenues are expected to kick off in 2014 at $18.0 million, and produce an EBITDA of $10.5 million, reach $116.0 million, and produce an EBITDA of $78.4 million in 2016, and reach maximum operating capacity in 2019, producing revenue of $224.0 million, and an EBITDA of $155.1 million.
These estimates do not take into account the production of potash or additional by products, with potash prices falling into a price range of US$350 to US$500 per tonne, may provide significant additional revenues and free cash flow.
The mine is expected to have an extremely long life, taking 40 years to exhaust 50% of the currently defined NI 43-101 compliant resources, which currently cover approximately one third of the property package.
Extorre ups NI 43-101 resources sharply at flagship Cerro Moro project
Extorre Gold Mines (CVE:XG) (AMEX:XG) Thursday gave an updated NI 43-101 compliant mineral resource estimate for its flagship Cerro Moro project in Argentina, increasing the indicated and inferred resource categories by 46 percent and 166 percent, respectively.
The market received the update favourably, with Extorre stock up over three percent at $7.96 in Toronto Thursday morning.
The new estimate gives indicated resources of 1.35 million ounces gold equivalent, comprising 2.42 million tonnes (Mt) at 7.4 grams per tonne (g/t) gold and 498 g/t silver, for a gold equivalent grade of 17.4 g/t. In the inferred category, the new estimate gives 1.05 million ounces gold equivalent, comprising 4.74 Mt at 3.5 g/t gold and 172 g/t silver for a gold equivalent grade of 6.9 g/t gold.
Extorre said the rapid increase was is in large part due to the Zoe discovery, which contributed 61 percent of the new gold equivalent ounces.
The new resources will form the basis of an updated mining and economic study for the project scheduled for release during the first quarter of 2012, with the potential for mine development at a larger scale - of around 1,000 to 1,500 tonnes per day - Extorre said.
Extorre said that the new study will be at a confidence level sufficient for the board to make a financing and mine development decision.
The new resource estimate, undertaken by Cube Consulting, is based on all drill data available as of October 10 and includes maiden contributions from four new mineralized zones: Zoe, Martina, Carla, and Nini.
Extorre added that 76 percent of the new indicated resource is at a gold equivalent grade above 30 g/t, a grade considered "exceptional" by industry standards. The silver content of the deposit remains high, and accounts for approximately 55 percent by value of the indicated resource, based on a silver to gold ratio of 50:1.
Additional inferred resources of 1.05 million ounces gold equivalent are reported from the Escondida, Loma Escondida, Zoe, Martina, Carla, Gabriela, Esperanza and Deborah veins.
Exploration is continuing at the Cerro Moro project, where six drill rigs have been operating continuously. In November, Extorre will reduce the number of rigs to four, with three rigs continuing to delineate the Zoe deposit and potential extensions.
Zoe itself has been tested for 2.2 kilometres of strike so far, with significant mineralization delineated over a 1.1 kilometre long zone.
In a preliminary economic assessment issued in August, Extorre gave an indicated resource of 0.66 Mt at 19 g/t gold and 835 g/t silver from the high grade Escondida and Loma Escondida vein zones, plus lower grade indicated resources from the Gabriela vein - of 0.53 Mt at 2 g/t gold and 371 g/t silver - and inferred resources of 1.86 Mt at 3.0 g/t gold and 182 g/t silver from the Escondida, Loma Escondida, Gabriela, Esperanza, and Deborah veins.
Data from the Zoe, Martina, Carla and Esperanza veins were not included at the time.
Separately, in the wake of Argentina cutting subsidies for profitable industries such as mining and energy, Extorre said it does not currently foresee a material change on the investment outlook for its Cerro Moro project.
In late October, the recently-elected government in Argentina ordered energy and mining companies to cash in all their export revenue on the local foreign exchange market before distributing it either locally or overseas.
This overturns the previous benefits that exempted energy and mining firms from currency repatriation laws that apply to all other primary producers in the South American nation.
Argentina put the new rules into place to stem the tide of money flowing out of the country.
Mining companies active in Argentina include Xstrata (LON:XTA), Barrick Gold (TSE:ABX) (NYSE:ABX), Orocobre (TSE:ORL)(ASX:ORE) and Minera Andes (TSE:MAI) (OTCBB:MNEAF).
Extorre's Cerro Moro gold-silver project is located in the north-eastern Santa Cruz province within the emergent Deseado Massif gold-silver mining district, approximately 70 kilometers southwest of the regional centre and port of Puerto Deseado.
The Cerro Moro property is covered by 175 square kilometers of mining concessions.
The market received the update favourably, with Extorre stock up over three percent at $7.96 in Toronto Thursday morning.
The new estimate gives indicated resources of 1.35 million ounces gold equivalent, comprising 2.42 million tonnes (Mt) at 7.4 grams per tonne (g/t) gold and 498 g/t silver, for a gold equivalent grade of 17.4 g/t. In the inferred category, the new estimate gives 1.05 million ounces gold equivalent, comprising 4.74 Mt at 3.5 g/t gold and 172 g/t silver for a gold equivalent grade of 6.9 g/t gold.
Extorre said the rapid increase was is in large part due to the Zoe discovery, which contributed 61 percent of the new gold equivalent ounces.
The new resources will form the basis of an updated mining and economic study for the project scheduled for release during the first quarter of 2012, with the potential for mine development at a larger scale - of around 1,000 to 1,500 tonnes per day - Extorre said.
Extorre said that the new study will be at a confidence level sufficient for the board to make a financing and mine development decision.
The new resource estimate, undertaken by Cube Consulting, is based on all drill data available as of October 10 and includes maiden contributions from four new mineralized zones: Zoe, Martina, Carla, and Nini.
Extorre added that 76 percent of the new indicated resource is at a gold equivalent grade above 30 g/t, a grade considered "exceptional" by industry standards. The silver content of the deposit remains high, and accounts for approximately 55 percent by value of the indicated resource, based on a silver to gold ratio of 50:1.
Additional inferred resources of 1.05 million ounces gold equivalent are reported from the Escondida, Loma Escondida, Zoe, Martina, Carla, Gabriela, Esperanza and Deborah veins.
Exploration is continuing at the Cerro Moro project, where six drill rigs have been operating continuously. In November, Extorre will reduce the number of rigs to four, with three rigs continuing to delineate the Zoe deposit and potential extensions.
Zoe itself has been tested for 2.2 kilometres of strike so far, with significant mineralization delineated over a 1.1 kilometre long zone.
In a preliminary economic assessment issued in August, Extorre gave an indicated resource of 0.66 Mt at 19 g/t gold and 835 g/t silver from the high grade Escondida and Loma Escondida vein zones, plus lower grade indicated resources from the Gabriela vein - of 0.53 Mt at 2 g/t gold and 371 g/t silver - and inferred resources of 1.86 Mt at 3.0 g/t gold and 182 g/t silver from the Escondida, Loma Escondida, Gabriela, Esperanza, and Deborah veins.
Data from the Zoe, Martina, Carla and Esperanza veins were not included at the time.
Separately, in the wake of Argentina cutting subsidies for profitable industries such as mining and energy, Extorre said it does not currently foresee a material change on the investment outlook for its Cerro Moro project.
In late October, the recently-elected government in Argentina ordered energy and mining companies to cash in all their export revenue on the local foreign exchange market before distributing it either locally or overseas.
This overturns the previous benefits that exempted energy and mining firms from currency repatriation laws that apply to all other primary producers in the South American nation.
Argentina put the new rules into place to stem the tide of money flowing out of the country.
Mining companies active in Argentina include Xstrata (LON:XTA), Barrick Gold (TSE:ABX) (NYSE:ABX), Orocobre (TSE:ORL)(ASX:ORE) and Minera Andes (TSE:MAI) (OTCBB:MNEAF).
Extorre's Cerro Moro gold-silver project is located in the north-eastern Santa Cruz province within the emergent Deseado Massif gold-silver mining district, approximately 70 kilometers southwest of the regional centre and port of Puerto Deseado.
The Cerro Moro property is covered by 175 square kilometers of mining concessions.
Prodigy Gold increases resources at Magino, with 2.18 million ounces of indicated gold
Prodigy Gold (CVE:PDG) late Wednesday said it has boosted the NI 43-101 compliant resources at its flagship Magino mine gold project in northern Ontario by more than double during 2011, prompting the release of an updated resource report.
Using a 0.35 grams per tonne (g/t) of gold cutoff, the Magino deposit is now estimated to hold indicated gold resources of 2.18 million ounces from 67.6 million tonnes grading 1.00 g/t gold, and inferred gold resources of 1.72 million ounces from 54.2 million tonnes grading 0.99 g/t gold.
This compares with a previous estimate in February of 1.92 million indicated ounces grading 1.16 g/t gold (51.6 million tonnes) using the same cut off grade, and 587,100 ounces of inferred gold resources grading 1.04 g/t gold (17.5 million tonnes).
The newest resource estimate was completed by Snowden Mining of Vancouver, British Columbia and is constrained by geologic domains and a conceptual pit shell, the company said.
The results include assays from almost 38,000 metres of core drilling completed at the project since January of this year, as well as 155,800 metres of previous core drilling.
Indeed, the updated estimate was delayed until this month to incorporate significant expansion drilling results from Magino, announced in late September, which included 47 metres grading 3.05 g/t gold within 147 metres grading 1.24 g/t gold in hole MA11-125, drilled in the northeast area of the deposit.
Using a slightly higher cut off grade of 0.50 g/t gold, Magino now holds an indicated resource of 1.94 million ounces grading 1.21 g/t gold (50.1 million tonnes), and an inferred resource of 1.54 million ounces grading 1.18 g/t gold (40.5 million tonnes), suggesting that optimizing the grade of the proposed open pit may produce a higher-grade operation with a larger production profile than that projected in the previous preliminary economic assessment, Prodigy said.
The preliminary economic assessment based on the February resource estimate shows a pre-tax net present value of $351 million, and a 49 percent internal rate of return, using a five percent discount rate. The proposed operation would have an average annual gold output of over 166,000 ounces a year during a nine year project life.
Total gold production is estimated to be 1.50 million ounces at Magino, at cash costs of approximately US$496 (C$521) per ounce.
Prodigy said the economic report will be updated using the results of the latest resource estimate in the coming weeks in anticipation of a larger production operation. A full feasibility study for Magino is due out in mid 2012.
"The increase in gold resources will enable Prodigy to evaluate an expansion of the proposed open-pit mining project modeled in the previous PEA. An expected increase in gold production may have an important positive impact on the project's economics," the company said in a statement.
In addition, the company said that inspection of the Magino gold resource block model identified multiple areas where additional drilling could further increase gold resources, including under the north-central portion of the conceptual open pit, and a southwest extension of gold mineralization where potentially significant resources lie under the southwest high wall of the conceptual pit.
Moreover, drilling in the Lovell Lake area, which is located 400 metres west of the Magino deposit and not included in the latest resource estimate, intercepted a zone of gold mineralization similar in grade and geology to the main deposit. Prodigy said that this area can further boost resources for the project.
The database used by Snowden for the revised resource contains 550 surface diamond drill holes and 484 underground historic diamond drill holes.
A drill program to convert mineral resources into reserves will be initiated as part of the full feasibility study, the company said.
Vancouver-based Prodigy was created from the combination of Canadian exploration companies Kodiak Exploration and Golden Goose Resources. Shares of the gold explorer closed Wednesday at 64 cents.
Using a 0.35 grams per tonne (g/t) of gold cutoff, the Magino deposit is now estimated to hold indicated gold resources of 2.18 million ounces from 67.6 million tonnes grading 1.00 g/t gold, and inferred gold resources of 1.72 million ounces from 54.2 million tonnes grading 0.99 g/t gold.
This compares with a previous estimate in February of 1.92 million indicated ounces grading 1.16 g/t gold (51.6 million tonnes) using the same cut off grade, and 587,100 ounces of inferred gold resources grading 1.04 g/t gold (17.5 million tonnes).
The newest resource estimate was completed by Snowden Mining of Vancouver, British Columbia and is constrained by geologic domains and a conceptual pit shell, the company said.
The results include assays from almost 38,000 metres of core drilling completed at the project since January of this year, as well as 155,800 metres of previous core drilling.
Indeed, the updated estimate was delayed until this month to incorporate significant expansion drilling results from Magino, announced in late September, which included 47 metres grading 3.05 g/t gold within 147 metres grading 1.24 g/t gold in hole MA11-125, drilled in the northeast area of the deposit.
Using a slightly higher cut off grade of 0.50 g/t gold, Magino now holds an indicated resource of 1.94 million ounces grading 1.21 g/t gold (50.1 million tonnes), and an inferred resource of 1.54 million ounces grading 1.18 g/t gold (40.5 million tonnes), suggesting that optimizing the grade of the proposed open pit may produce a higher-grade operation with a larger production profile than that projected in the previous preliminary economic assessment, Prodigy said.
The preliminary economic assessment based on the February resource estimate shows a pre-tax net present value of $351 million, and a 49 percent internal rate of return, using a five percent discount rate. The proposed operation would have an average annual gold output of over 166,000 ounces a year during a nine year project life.
Total gold production is estimated to be 1.50 million ounces at Magino, at cash costs of approximately US$496 (C$521) per ounce.
Prodigy said the economic report will be updated using the results of the latest resource estimate in the coming weeks in anticipation of a larger production operation. A full feasibility study for Magino is due out in mid 2012.
"The increase in gold resources will enable Prodigy to evaluate an expansion of the proposed open-pit mining project modeled in the previous PEA. An expected increase in gold production may have an important positive impact on the project's economics," the company said in a statement.
In addition, the company said that inspection of the Magino gold resource block model identified multiple areas where additional drilling could further increase gold resources, including under the north-central portion of the conceptual open pit, and a southwest extension of gold mineralization where potentially significant resources lie under the southwest high wall of the conceptual pit.
Moreover, drilling in the Lovell Lake area, which is located 400 metres west of the Magino deposit and not included in the latest resource estimate, intercepted a zone of gold mineralization similar in grade and geology to the main deposit. Prodigy said that this area can further boost resources for the project.
The database used by Snowden for the revised resource contains 550 surface diamond drill holes and 484 underground historic diamond drill holes.
A drill program to convert mineral resources into reserves will be initiated as part of the full feasibility study, the company said.
Vancouver-based Prodigy was created from the combination of Canadian exploration companies Kodiak Exploration and Golden Goose Resources. Shares of the gold explorer closed Wednesday at 64 cents.
Montero Mining appoints David Hodgson to its board
Montero Mining (CVE:MON), a junior mineral explorer, said it hired David Hodgson as a non executive director to the board of directors Wednesday.
Hodgson, who starts immediately, has been active in the mining industry for over 40 years. He spent more than 27 years working with the Anglo American (LON:AAL) and De Beers group of companies before moving to AngloGold Ashanti (NYSE:AU).
Until his retirement in April 2005, Hodgson served as executive director and chief operating officer for AngloGold Ashanti where he oversaw 22 gold operations in 11 countries. Previously, he has served as general manager for Freegold and Western Deep Levels.
Currently, Hodgson serves as a non-executive director of African Barrick Gold (LON:ABG) and Auryx Gold (TSE:AYX).
He holds a bachelor of science in civil engineering from the University of Witwatersrand, Johannesburg, South Africa. In addition, he has bachelor of commerce, majoring in economics and business economics, from the University of South Africa.
Montero Mining is mainly focused on rare earth elements, phosphates and uranium in Tanzania, South Africa and Quebec, Canada, respectively.
Its flagship Wigu Hill rare earth element project in Tanzania is a high-grade, undeveloped light rare earth deposit, which hosts a NI 43-101 compliant inferred resource of 3.3 million tonnes, on only a fraction of the deposit.
Hodgson, who starts immediately, has been active in the mining industry for over 40 years. He spent more than 27 years working with the Anglo American (LON:AAL) and De Beers group of companies before moving to AngloGold Ashanti (NYSE:AU).
Until his retirement in April 2005, Hodgson served as executive director and chief operating officer for AngloGold Ashanti where he oversaw 22 gold operations in 11 countries. Previously, he has served as general manager for Freegold and Western Deep Levels.
Currently, Hodgson serves as a non-executive director of African Barrick Gold (LON:ABG) and Auryx Gold (TSE:AYX).
He holds a bachelor of science in civil engineering from the University of Witwatersrand, Johannesburg, South Africa. In addition, he has bachelor of commerce, majoring in economics and business economics, from the University of South Africa.
Montero Mining is mainly focused on rare earth elements, phosphates and uranium in Tanzania, South Africa and Quebec, Canada, respectively.
Its flagship Wigu Hill rare earth element project in Tanzania is a high-grade, undeveloped light rare earth deposit, which hosts a NI 43-101 compliant inferred resource of 3.3 million tonnes, on only a fraction of the deposit.
Sona Resources to raise $600,000 to fund exploration for its B.C. projects
Junior mineral explorer Sona Resources (CVE:SYS) said Wednesday that it plans to raise $600,000 through a non-brokered private financing, which the proceeds will be used to fund exploration at its Blackdome gold mine, in British Columbia.
The company’s flagship Blackdome gold mine property rests 250 kilometres north of Vancouver. It has an estimated indicated resource of 144,500 tonnes grading 11.29 grams per tonne (g/t) of gold and contains 52,600 ounces of gold; and an inferred resource of 90,600 tonne grading 8.79 of gold g/t.
Sona said it plans to sell 857,142 flow-through shares for 70 cents per unit.
Each unit consists of one flow-through share and one-half of one warrant, of Sona Resources with each whole warrant giving the holder a right to buy an extra share for 85 cents in the first 12 months, and $1 afterwards.
In addition, the company said finders may get finder’s shares equal to four percent of the total units sold and finder’s warrants equal to eight percent of the number of units purchased.
Profits from the financing will go towards exploration at the Elizabeth gold property and Blackdome gold property, the company said.
The securities issued are subject to a four-month hold period, and the private placement is also subject to junior Venture Exchange approval.
Sona traded flat at 69 cents Wednesday afternoon on the junior Venture Exchange.
The company’s flagship Blackdome gold mine property rests 250 kilometres north of Vancouver. It has an estimated indicated resource of 144,500 tonnes grading 11.29 grams per tonne (g/t) of gold and contains 52,600 ounces of gold; and an inferred resource of 90,600 tonne grading 8.79 of gold g/t.
Sona said it plans to sell 857,142 flow-through shares for 70 cents per unit.
Each unit consists of one flow-through share and one-half of one warrant, of Sona Resources with each whole warrant giving the holder a right to buy an extra share for 85 cents in the first 12 months, and $1 afterwards.
In addition, the company said finders may get finder’s shares equal to four percent of the total units sold and finder’s warrants equal to eight percent of the number of units purchased.
Profits from the financing will go towards exploration at the Elizabeth gold property and Blackdome gold property, the company said.
The securities issued are subject to a four-month hold period, and the private placement is also subject to junior Venture Exchange approval.
Sona traded flat at 69 cents Wednesday afternoon on the junior Venture Exchange.
Wednesday, 2 November 2011
Laconia Resources encouraged by silver assays from drilling at 701 Mile
Laconia Resources (ASX: LCR) has received promising silver assays from drilling at its 701 Mile base metals project in the Pilbara, including a peak hit of up to 23.9 grams per tonne of silver from surface.
Significantly, silver anomalism was identified to extend over a strike length in excess of 15 kilometres, and the project is prospective for base metals, gold and uranium.
The 701 Mile project is located approximately 80 kilometres south-east of Newman in Western Australia, within the north-eastern portion of the Collier Basin, and is transected by a regionally significant structure called the Tangadee lineament.
The company recently completed an extensive auger drilling and soil sampling program comprising 751 auger holes and 384 soil samples for a total of 1,135 samples.
The auger drill traverses were sampled on 400 by 400 metre spacings over areas of favourable geology, proximal to magnetic structures, and moving to 800 by 800 metre spacings in other parts of the tenement.
Large areas of the tenement are overlain by cover including alluvial wash, calcrete and sand. Auger drilling was conducted in these areas to penetrate this cover to obtain meaningful geochemical samples.
Managing director Ian Stuart said, “We consider this kind of anomalism highly significant and it adds greatly to the base metal prospectivity of the project.
“This auger drilling has penetrated that surface cover so we’re getting meaningful samples, but they’re highly anomalous.
“The area of silver-lead anomalism is very extensive, exceeding 15 kilometres in length.
“If you put the anomalism together with the large structures that are running through it, it bodes well for more exploration.”
Stuart said given the coincident geochemical anomalism and favourable geological structures, Laconia will immediately prioritise follow-up geochemical sampling and begin planning for rotary air blast drilling to test these targets.
He anticipates this drilling program will begin at the end of the first quarter, start of the second quarter of 2012.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21558/laconia-resources-encouraged-by-silver-assays-from-drilling-at-701-mile--21558.html
Significantly, silver anomalism was identified to extend over a strike length in excess of 15 kilometres, and the project is prospective for base metals, gold and uranium.
The 701 Mile project is located approximately 80 kilometres south-east of Newman in Western Australia, within the north-eastern portion of the Collier Basin, and is transected by a regionally significant structure called the Tangadee lineament.
The company recently completed an extensive auger drilling and soil sampling program comprising 751 auger holes and 384 soil samples for a total of 1,135 samples.
The auger drill traverses were sampled on 400 by 400 metre spacings over areas of favourable geology, proximal to magnetic structures, and moving to 800 by 800 metre spacings in other parts of the tenement.
Large areas of the tenement are overlain by cover including alluvial wash, calcrete and sand. Auger drilling was conducted in these areas to penetrate this cover to obtain meaningful geochemical samples.
Managing director Ian Stuart said, “We consider this kind of anomalism highly significant and it adds greatly to the base metal prospectivity of the project.
“This auger drilling has penetrated that surface cover so we’re getting meaningful samples, but they’re highly anomalous.
“The area of silver-lead anomalism is very extensive, exceeding 15 kilometres in length.
“If you put the anomalism together with the large structures that are running through it, it bodes well for more exploration.”
Stuart said given the coincident geochemical anomalism and favourable geological structures, Laconia will immediately prioritise follow-up geochemical sampling and begin planning for rotary air blast drilling to test these targets.
He anticipates this drilling program will begin at the end of the first quarter, start of the second quarter of 2012.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21558/laconia-resources-encouraged-by-silver-assays-from-drilling-at-701-mile--21558.html
IMX Resources extends high grade nickel, copper zone in Tanzania
IMX Resources (ASX: IXR) and partner Continental Nickel (TSXV: CNI) have extended the Sleeping Giant high grade core by 100 metres down plunge to the south at the Nachingwea Nickel Copper Joint Venture Project.
A recent drillhole returned best intersections of 14.3 metres at 2.66% nickel and 0.6% copper and 9.65 metres at 2% nickel and 0.24% copper within a wider intersection of 43.95 metres at 1.4% nickel and 0.29% copper from 359.8 metres.
Meanwhile, in the north, new drilling has extended the Sleeping Giant mineralisation up plunge by 100 metres on two sections.
One hole intersected wide disseminated nickel zones, with 23.4 metres at 0.31% nickel and 0.06% copper from 31.7 metres and 5.2 metres at 0.84% nickel and 0.21% copper from 212.15 metres.
Importantly, the Sleeping Giant mineralisation remains open to the south and east as well as down plunge to the south.
Additionally, disseminated nickel sulphide mineralisation has been intersected above the Sleeping Giant zone in the hanging wall.
These intersections have average grades of 0.2-0.6% nickel over widths of up to 45 metres within the pit shell used to define the 2011 Mineral Resource.
They will be included in the updated geological interpretation and Mineral Resource at the end of the 2011 drilling program.
The Nachingwea Project is held in a 25-75 joint venture between IMX and Continental. IMX also has an indirect interest through a 37.2% interest in Continental, which gives it a beneficial interest of 53% in Nachinwea.
The 2011 drill program is geared towards expanding the Mineral Resource at Sleeping Giant and advancing the Ntaka Hill nickel copper sulphide deposits towards mine development.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21555/imx-resources-extends-high-grade-nickel-copper-zone-in-tanzania-21555.html
A recent drillhole returned best intersections of 14.3 metres at 2.66% nickel and 0.6% copper and 9.65 metres at 2% nickel and 0.24% copper within a wider intersection of 43.95 metres at 1.4% nickel and 0.29% copper from 359.8 metres.
Meanwhile, in the north, new drilling has extended the Sleeping Giant mineralisation up plunge by 100 metres on two sections.
One hole intersected wide disseminated nickel zones, with 23.4 metres at 0.31% nickel and 0.06% copper from 31.7 metres and 5.2 metres at 0.84% nickel and 0.21% copper from 212.15 metres.
Importantly, the Sleeping Giant mineralisation remains open to the south and east as well as down plunge to the south.
Additionally, disseminated nickel sulphide mineralisation has been intersected above the Sleeping Giant zone in the hanging wall.
These intersections have average grades of 0.2-0.6% nickel over widths of up to 45 metres within the pit shell used to define the 2011 Mineral Resource.
They will be included in the updated geological interpretation and Mineral Resource at the end of the 2011 drilling program.
The Nachingwea Project is held in a 25-75 joint venture between IMX and Continental. IMX also has an indirect interest through a 37.2% interest in Continental, which gives it a beneficial interest of 53% in Nachinwea.
The 2011 drill program is geared towards expanding the Mineral Resource at Sleeping Giant and advancing the Ntaka Hill nickel copper sulphide deposits towards mine development.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21555/imx-resources-extends-high-grade-nickel-copper-zone-in-tanzania-21555.html
Greenearth Energy secures potential $25m Victorian Government backing to advance geothermal project
Greenearth Energy (ASX: GER) has secured a A$25 million funding agreement with the Victorian Government to progress its flagship conventional geothermal project and is now looking to the Australian Government for further financial support.
The funding was awarded to assist two stages of the Geelong Geothermal Power Project development.
The first $5 million will go towards establishing Stage 1 – Proof of Resource, which will involve the drilling of an initial well into the hot sedimentary geothermal aquifer to a depth of approximately 4,000 metres in an attempt to bring hot water to the surface.
Managing director Mark Miller told Proactive Investors today that if that first well is successful, Greenearth will then drill a sand well which would establish proof of concept, which would pave the way for development of the second stage.
“If all of our predictions are correct and the Victorian Government is happy with the results then they have provided us with an allocation of $20 million for what we call the demonstration stage of the project, which would be another two wells and a 12 megawatt geothermal energy plant,” he said.
Miller said the Victorian Government funding agreement gave Greenearth a head start but the company needs to raise more capital for the first well, which it will do via an application to the Emerging Renewables program, as well as through a capital raising.
Importantly, Greenearth has previously had the support of the Australian Government for the project.
“We have had success at the Commonwealth level with applications for the Geelong Geothermal Power Project, and now we have a supportive State Government we feel that we’re in a very good position to be able to apply for funding via Emerging Renewables from the Commonwealth Government for the project,” Miller said.
“We feel confident that the Victorian Government’s agreement to fund both the exploration stage and the demonstration stage will see a commitment from the Federal Government.”
Miller said he anticipates the funding process to continue through 2012 and hopefully the company will be in a position to potentially drill the first well sometime after that.
The separate tranches of the funding are paid on the achievement of set milestones and are subject to a number of conditions precedent including securing the necessary project funds to complete each stage.
Geelong Geothermal Power Project concept
The end goal for the project is the development of a 140-megawatt geothermal power plant providing clean, renewable power for 100,000 homes.
The staged approach to the project will initially confirm the productive properties of the target hot sedimentary geothermal aquifer and – if a geothermal resource is proven – then develop a commercial geothermal plant that could produce up to 140 megawatts of baseload energy.
Minister for Energy and Resources Michael O’Brien said realisation of this geothermal resource is still some time away, but the Victorian Government grant will support Greenearth to prove the geothermal resource and pilot a 12 megawatt power station using hot water from about 4 kilometres beneath the surface.
While a site for the project is yet to be finalised, Greenearth holds an exploration licence that covers an area around the Geelong-area townships of Gherang, Wensleydale and Anglesea.
The company is undertaking community consultation in relation to the selection of a suitable site for Stage 1 and Stage 2.
Greenearth is also continuing discussions with Alcoa of Australia (ASX: AAI) in relation to areas of potential collaboration.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21552/greenearth-energy-secures-potential-25m-victorian-government-backing-to-advance-geothermal-project-21552.html
The funding was awarded to assist two stages of the Geelong Geothermal Power Project development.
The first $5 million will go towards establishing Stage 1 – Proof of Resource, which will involve the drilling of an initial well into the hot sedimentary geothermal aquifer to a depth of approximately 4,000 metres in an attempt to bring hot water to the surface.
Managing director Mark Miller told Proactive Investors today that if that first well is successful, Greenearth will then drill a sand well which would establish proof of concept, which would pave the way for development of the second stage.
“If all of our predictions are correct and the Victorian Government is happy with the results then they have provided us with an allocation of $20 million for what we call the demonstration stage of the project, which would be another two wells and a 12 megawatt geothermal energy plant,” he said.
Miller said the Victorian Government funding agreement gave Greenearth a head start but the company needs to raise more capital for the first well, which it will do via an application to the Emerging Renewables program, as well as through a capital raising.
Importantly, Greenearth has previously had the support of the Australian Government for the project.
“We have had success at the Commonwealth level with applications for the Geelong Geothermal Power Project, and now we have a supportive State Government we feel that we’re in a very good position to be able to apply for funding via Emerging Renewables from the Commonwealth Government for the project,” Miller said.
“We feel confident that the Victorian Government’s agreement to fund both the exploration stage and the demonstration stage will see a commitment from the Federal Government.”
Miller said he anticipates the funding process to continue through 2012 and hopefully the company will be in a position to potentially drill the first well sometime after that.
The separate tranches of the funding are paid on the achievement of set milestones and are subject to a number of conditions precedent including securing the necessary project funds to complete each stage.
Geelong Geothermal Power Project concept
The end goal for the project is the development of a 140-megawatt geothermal power plant providing clean, renewable power for 100,000 homes.
The staged approach to the project will initially confirm the productive properties of the target hot sedimentary geothermal aquifer and – if a geothermal resource is proven – then develop a commercial geothermal plant that could produce up to 140 megawatts of baseload energy.
Minister for Energy and Resources Michael O’Brien said realisation of this geothermal resource is still some time away, but the Victorian Government grant will support Greenearth to prove the geothermal resource and pilot a 12 megawatt power station using hot water from about 4 kilometres beneath the surface.
While a site for the project is yet to be finalised, Greenearth holds an exploration licence that covers an area around the Geelong-area townships of Gherang, Wensleydale and Anglesea.
The company is undertaking community consultation in relation to the selection of a suitable site for Stage 1 and Stage 2.
Greenearth is also continuing discussions with Alcoa of Australia (ASX: AAI) in relation to areas of potential collaboration.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21552/greenearth-energy-secures-potential-25m-victorian-government-backing-to-advance-geothermal-project-21552.html
Celamin Holdings receives PFS, targeting 1.5mtpa rock phosphate production at Bir El Afou
Celamin Holdings (ASX: CNL) has received the results from a Prefeasibility Study (PFS) conducted over the Bir El Afou Project in Northern Tunisia.
The project is located within the 84 square kilometres Bir El Afou Exploration Permit held by Celamin (80%) and Tunisian Mining Services SARL (TMS: 20%).
Of note, resource delineation drilling progress during the PFS was limited. This led to an un-optimised resource. In fact, a positive is that less than 5% of the permit area has been drilled or explored.
The company said the PFS showed no ‘fatal-flaws’ to the development potential at the project which is targeting 1.5 million tonnes per annum phosphate rock production for export sales.
Kevin Nichol, executive chairman of Celamin Holdings, said “this is a very significant result for our company and places us in the forefront of phosphate rock developers.
"This PFS confirms that we have a robust and attractive Project. We have identified a number of areas where further work will enhance the returns on the Project and these will be the focus during the next phase."
Celamin is now focused on the accelerated results from the planned Interim Delineation Phase in the coming months, which will lead the company to a final Project scope for the Feasibility Study.
The project has positive Government and community support at all levels and encouraging investment terms comprising a 5-year tax holiday.
Importantly, there is access to existing well located infrastructure and services.
The high grade phosphate rock concentrate of 30% P2O5 at 150 micron grind is achievable.
The project has an Inferred Resource of 29 million tonnes at 11.1% P2O5 at 7.5% P2O5 cutoff grade.
What is particularly significant though is that less than 5% of the permit area has been drilled or explored and there is potential to increase grade, tonnage and improve mining factors during Interim Delineation Phase.
Another plus for the project is that the local community is well educated and there is a strong social imperative to create jobs.
Key Findings
Celamin and TMS have benefitted from co-operation from the Tunisian Government authorities, especially with respect to infrastructure and services.
Rail
Societe Nationale Chemin de Fer Tunisie (SNCFT) the national rail operator has confirmed the availability of locomotives and rolling stock to enable the transportation of the product to Port over existing rail track.
Port
The Office de la Marine Marchande et des Ports (OMMC), the Tunisian Port Authority, has confirmed availability of a suitable site at Rades port, at Tunis covering about 24,000 square metres.
This site contains an existing rail spur and shed for unloading and storage as well as access to a shared berth and the space for construction of another dedicated berth as required. The berth is suitable for loading of vessels up to 30,000 dwt.
Energy Supply
Societe Tunisienne de Electicite du Gaz (STEG), the national electricity and gas supplier, has confirmed the availability of power and gas supplies to the site under existing gazetted pricing arrangements for Industrial usage.
High voltage transmission lines are located close to the BEA Exploration Permit and gas is supplied to a nearby cement works.
Water
Celamin and TMS have received permission from the responsible Government Authority for water supply from a site about 25 kilometres from the proposed plant site.
This site is capable of delivering as much as ten times the water supply estimated for the process plant consumption (~60 litres per second).
Environmental Aspects
The initial study by Tunisian consultancy EAM has confirmed there are no ‘fatal flaws’ to the proposed development of a phosphate rock mining and processing operation in the Bir El Afou exploration permit.
Mine Planning
The delays in resource estimate led to delays in the mine plan, with a consequence that this could not be optimised during the currency of the PFS. At this stage the current pits have unacceptably high waste: ore ratios. This will be optimised during the next phase.
Capital Costs
Stage 1 capital costs have been confirmed within the range of expectations when the Project was first scoped and total US$366,306,000.
The mining costs are higher than anticipated because of the necessary pre-strip and size of mining fleet required for the waste in the un-optimised open pits, and will be reviewed to align then to a Tunisian base during the next phase.
Operating costs have been confirmed within the range of expectations when the Project was first scoped. The mining costs are higher for the same reasons as above.
Financial analysis
Financial analysis of a base case and two upside cases has been undertaken. Because of the drilling progress during the PFS the resource delineation drilling was limited.
This has led to an un-optimised resource and mine plan with the consequence that the base case financial analysis has produced results that are also less than optimal. The base case NPV is negative.
The two upside cases were undertaken to determine if after examination of the sensitivity of the project to its primary inputs the characteristics of realistic targets for the ID phase and feasibility study can be identified.
Upside case 1 modelled increasing tonnage throughput, mining at a lower strip ratio and assuming a similar process recovery. Case 1 produced a breakeven NPV at 10% discount rate.
Case 2 modelled lower tonnes at a slightly higher grade, with a similar strip ratio and process recovery to case 1. Case 2 produced a positive NPV at 10% discount rate with a 25.7% IRR. Case 2 demonstrates a target for the ID phase of 40 million tonnes at 14% P2O5 with an 8:1 waste to ore ratio producing 15 M tonnes of phosphate rock over 10-years.
Exploration and drilling
A multi-purpose drill rig with reverse circulation and diamond core drilling capability has been specified by the JV partners to speed up the drill program.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21550/celamin-holdings-receives-pfs-targeting-15mtpa-rock-phosphate-production-at-bir-el-afou--21550.html
The project is located within the 84 square kilometres Bir El Afou Exploration Permit held by Celamin (80%) and Tunisian Mining Services SARL (TMS: 20%).
Of note, resource delineation drilling progress during the PFS was limited. This led to an un-optimised resource. In fact, a positive is that less than 5% of the permit area has been drilled or explored.
The company said the PFS showed no ‘fatal-flaws’ to the development potential at the project which is targeting 1.5 million tonnes per annum phosphate rock production for export sales.
Kevin Nichol, executive chairman of Celamin Holdings, said “this is a very significant result for our company and places us in the forefront of phosphate rock developers.
"This PFS confirms that we have a robust and attractive Project. We have identified a number of areas where further work will enhance the returns on the Project and these will be the focus during the next phase."
Celamin is now focused on the accelerated results from the planned Interim Delineation Phase in the coming months, which will lead the company to a final Project scope for the Feasibility Study.
The project has positive Government and community support at all levels and encouraging investment terms comprising a 5-year tax holiday.
Importantly, there is access to existing well located infrastructure and services.
The high grade phosphate rock concentrate of 30% P2O5 at 150 micron grind is achievable.
The project has an Inferred Resource of 29 million tonnes at 11.1% P2O5 at 7.5% P2O5 cutoff grade.
What is particularly significant though is that less than 5% of the permit area has been drilled or explored and there is potential to increase grade, tonnage and improve mining factors during Interim Delineation Phase.
Another plus for the project is that the local community is well educated and there is a strong social imperative to create jobs.
Key Findings
Celamin and TMS have benefitted from co-operation from the Tunisian Government authorities, especially with respect to infrastructure and services.
Rail
Societe Nationale Chemin de Fer Tunisie (SNCFT) the national rail operator has confirmed the availability of locomotives and rolling stock to enable the transportation of the product to Port over existing rail track.
Port
The Office de la Marine Marchande et des Ports (OMMC), the Tunisian Port Authority, has confirmed availability of a suitable site at Rades port, at Tunis covering about 24,000 square metres.
This site contains an existing rail spur and shed for unloading and storage as well as access to a shared berth and the space for construction of another dedicated berth as required. The berth is suitable for loading of vessels up to 30,000 dwt.
Energy Supply
Societe Tunisienne de Electicite du Gaz (STEG), the national electricity and gas supplier, has confirmed the availability of power and gas supplies to the site under existing gazetted pricing arrangements for Industrial usage.
High voltage transmission lines are located close to the BEA Exploration Permit and gas is supplied to a nearby cement works.
Water
Celamin and TMS have received permission from the responsible Government Authority for water supply from a site about 25 kilometres from the proposed plant site.
This site is capable of delivering as much as ten times the water supply estimated for the process plant consumption (~60 litres per second).
Environmental Aspects
The initial study by Tunisian consultancy EAM has confirmed there are no ‘fatal flaws’ to the proposed development of a phosphate rock mining and processing operation in the Bir El Afou exploration permit.
Mine Planning
The delays in resource estimate led to delays in the mine plan, with a consequence that this could not be optimised during the currency of the PFS. At this stage the current pits have unacceptably high waste: ore ratios. This will be optimised during the next phase.
Capital Costs
Stage 1 capital costs have been confirmed within the range of expectations when the Project was first scoped and total US$366,306,000.
The mining costs are higher than anticipated because of the necessary pre-strip and size of mining fleet required for the waste in the un-optimised open pits, and will be reviewed to align then to a Tunisian base during the next phase.
Operating costs have been confirmed within the range of expectations when the Project was first scoped. The mining costs are higher for the same reasons as above.
Financial analysis
Financial analysis of a base case and two upside cases has been undertaken. Because of the drilling progress during the PFS the resource delineation drilling was limited.
This has led to an un-optimised resource and mine plan with the consequence that the base case financial analysis has produced results that are also less than optimal. The base case NPV is negative.
The two upside cases were undertaken to determine if after examination of the sensitivity of the project to its primary inputs the characteristics of realistic targets for the ID phase and feasibility study can be identified.
Upside case 1 modelled increasing tonnage throughput, mining at a lower strip ratio and assuming a similar process recovery. Case 1 produced a breakeven NPV at 10% discount rate.
Case 2 modelled lower tonnes at a slightly higher grade, with a similar strip ratio and process recovery to case 1. Case 2 produced a positive NPV at 10% discount rate with a 25.7% IRR. Case 2 demonstrates a target for the ID phase of 40 million tonnes at 14% P2O5 with an 8:1 waste to ore ratio producing 15 M tonnes of phosphate rock over 10-years.
Exploration and drilling
A multi-purpose drill rig with reverse circulation and diamond core drilling capability has been specified by the JV partners to speed up the drill program.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21550/celamin-holdings-receives-pfs-targeting-15mtpa-rock-phosphate-production-at-bir-el-afou--21550.html
Millennium Minerals builds case for gold resource expansion at Little Wonder and Otways
Millennium Minerals (ASX: MOY) continues to discover gold at the 1.25 million gold ounce Nullagine project, with today being no exception.
Reverse circulation drilling at the Otways and Little Wonder deposits has delivered some near surface gold.
Highlights from Little Wonder include 5 metres at 12.0 grams per tonne (g/t) gold from 24 metres, 11 metres at 2.86g/t gold from 35 metres, which is supported by the broader 21 metres at 1.37g/t gold from 34 metres.
The best results from Otways included broad intercepts of 26 metres at 1.09g/t gold from 18 metres, and 23 metres at 1.11g/t gold from 4 metres, with the higher grade 4 metres at 4.53g/t gold from 40 metres.
The significance of the gold hits are that they occur immediately beneath the current pit designs at the projects, which therefore provides the potential to enlarge pit designs prior to planned gold production in 2012.
Mineral Resource modelling is currently underway incorporating current and earlier drill results at the two deposits, along with the other deposits of Golden Eagle, Shearers, All Nations and Bartons.
The outcome is an ore Reserve is forecast for delivery before the end of 2011.
The next step - additional drilling
A further 3,000 metres of reverse circulation drilling has now been planned at both deposits, with a focus at Little Wonder where the new Northwest Resources (ASX: NWR) Camel Creek joint venture, (announced last month), offers substantial upside in adjacent zones of the mineralisation.
Under the joint venture agreement between the companies which both have developing gold projects in the eastern Pilbara region of Western Australia, gold production and joint venture operating costs will be shared 50:50.
Maiden reserve estimates for the initial joint venture deposits are expected in the June quarter of 2012, while joint venture mining is anticipated to commence in early 2015.
Millennium will manage the joint venture, and all ore mined as part of the joint venture will pass through Millennium’s 1.5 million tonne per annum Golden Eagle treatment plant, which is currently under construction.
Joint venture ore sourced from the Northwest deposits, located about 6 kilometres from the Golden Eagle plant, will be blended with ore from Millennium’s Golden Eagle deposit.
The Golden Eagle deposit is a significant part of the 1.25 million gold ounce Nullagine project, hosting around 70% of the gold resource, or 750,000 gold ounces.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21553/millennium-minerals-builds-case-for-gold-resource-expansion-at-little-wonder-and-otways-21553.html
Reverse circulation drilling at the Otways and Little Wonder deposits has delivered some near surface gold.
Highlights from Little Wonder include 5 metres at 12.0 grams per tonne (g/t) gold from 24 metres, 11 metres at 2.86g/t gold from 35 metres, which is supported by the broader 21 metres at 1.37g/t gold from 34 metres.
The best results from Otways included broad intercepts of 26 metres at 1.09g/t gold from 18 metres, and 23 metres at 1.11g/t gold from 4 metres, with the higher grade 4 metres at 4.53g/t gold from 40 metres.
The significance of the gold hits are that they occur immediately beneath the current pit designs at the projects, which therefore provides the potential to enlarge pit designs prior to planned gold production in 2012.
Mineral Resource modelling is currently underway incorporating current and earlier drill results at the two deposits, along with the other deposits of Golden Eagle, Shearers, All Nations and Bartons.
The outcome is an ore Reserve is forecast for delivery before the end of 2011.
The next step - additional drilling
A further 3,000 metres of reverse circulation drilling has now been planned at both deposits, with a focus at Little Wonder where the new Northwest Resources (ASX: NWR) Camel Creek joint venture, (announced last month), offers substantial upside in adjacent zones of the mineralisation.
Under the joint venture agreement between the companies which both have developing gold projects in the eastern Pilbara region of Western Australia, gold production and joint venture operating costs will be shared 50:50.
Maiden reserve estimates for the initial joint venture deposits are expected in the June quarter of 2012, while joint venture mining is anticipated to commence in early 2015.
Millennium will manage the joint venture, and all ore mined as part of the joint venture will pass through Millennium’s 1.5 million tonne per annum Golden Eagle treatment plant, which is currently under construction.
Joint venture ore sourced from the Northwest deposits, located about 6 kilometres from the Golden Eagle plant, will be blended with ore from Millennium’s Golden Eagle deposit.
The Golden Eagle deposit is a significant part of the 1.25 million gold ounce Nullagine project, hosting around 70% of the gold resource, or 750,000 gold ounces.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21553/millennium-minerals-builds-case-for-gold-resource-expansion-at-little-wonder-and-otways-21553.html
Phoenix Gold evolves into gold producer with ore agreement at nearby Greenfields mill
Kalgoorlie based Phoenix Gold (ASX: PXG) has transitioned into a cash flow generating company by entering into a gold ore processing agreement, but this could be just the beginning.
Taking advantage of the high gold price, Phoenix will deliver an initial 25,000 tonne ore parcel from Catherwood mine stock piles to FMR Investment’s Greenfields mill - which will take about ten days.
The big plus for the agreement is the mill is located just 25 kilometres south of Phoenix’s southern tenements, and is well serviced by haul roads in all directions.
Importantly - the processing circuit has been configured to enable optimal conditions to achieve maximum recovery and minimal costs.
Treatment of the ore will also provide valuable metallurgical information and confirm gold recovery values used in the Catherwood Mine Feasibility Study.
Jon Price, managing director of Phoenix, told Proactive Investors today that current and potential future ore agreements may allow the company to achieve an annualised ore processing rate from agreements of 500,000 tonnes by 2012.
“This is a significant milestone for Phoenix as we produce our first gold and work towards becoming a self-funded explorer.
"The cash flow generated will enable further exploration and development of the first in a series of gold mines in our project pipeline.”
The FMR agreement follows the execution of a Memorandum of Understanding with Kalgoorlie Mining Company (ASX: KMC) for the treatment of up to 300,000 tonnes per annum of Phoenix ore through the Bullant processing facility - which is forecast to be in operation by June 2012.
Phoenix conducting extensive drilling campaigns
Highlighting how the company continues to push the Kalgoorlie based operations forward, work continues on the up to two year drilling program to increase the resource base at the Castle Hill and Broads Dam Projects before testing early-stage exploration targets principally within the Ora Banda – Grants Patch gold camp.
In the 2012 financial year, phase 1 of the program consists of 32,000 metres of a combination of reverse circulation drilling for resource growth and rotary air blast drilling for target generation in greenfields areas.
To date over 3800 metres have been drilled at the Broads Dam project and 3840 metres at Castle Hill, with results expected in the December 2011 quarter.
Castle Hill currently has a resource of 526,000 gold ounces.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21551/phoenix-gold-evolves-into-gold-producer-with-ore-agreement-at-nearby-greenfields-mill-21551.html
Taking advantage of the high gold price, Phoenix will deliver an initial 25,000 tonne ore parcel from Catherwood mine stock piles to FMR Investment’s Greenfields mill - which will take about ten days.
The big plus for the agreement is the mill is located just 25 kilometres south of Phoenix’s southern tenements, and is well serviced by haul roads in all directions.
Importantly - the processing circuit has been configured to enable optimal conditions to achieve maximum recovery and minimal costs.
Treatment of the ore will also provide valuable metallurgical information and confirm gold recovery values used in the Catherwood Mine Feasibility Study.
Jon Price, managing director of Phoenix, told Proactive Investors today that current and potential future ore agreements may allow the company to achieve an annualised ore processing rate from agreements of 500,000 tonnes by 2012.
“This is a significant milestone for Phoenix as we produce our first gold and work towards becoming a self-funded explorer.
"The cash flow generated will enable further exploration and development of the first in a series of gold mines in our project pipeline.”
The FMR agreement follows the execution of a Memorandum of Understanding with Kalgoorlie Mining Company (ASX: KMC) for the treatment of up to 300,000 tonnes per annum of Phoenix ore through the Bullant processing facility - which is forecast to be in operation by June 2012.
Phoenix conducting extensive drilling campaigns
Highlighting how the company continues to push the Kalgoorlie based operations forward, work continues on the up to two year drilling program to increase the resource base at the Castle Hill and Broads Dam Projects before testing early-stage exploration targets principally within the Ora Banda – Grants Patch gold camp.
In the 2012 financial year, phase 1 of the program consists of 32,000 metres of a combination of reverse circulation drilling for resource growth and rotary air blast drilling for target generation in greenfields areas.
To date over 3800 metres have been drilled at the Broads Dam project and 3840 metres at Castle Hill, with results expected in the December 2011 quarter.
Castle Hill currently has a resource of 526,000 gold ounces.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21551/phoenix-gold-evolves-into-gold-producer-with-ore-agreement-at-nearby-greenfields-mill-21551.html
Aurium Resources drilling program at Peak Hill iron project expected to recommence next week
Aurium Resources (ASX: AGU) will more than likely resume drilling at the Peak Hill Iron Project joint venture next week, after severe weather brought a halt to proceedings.
Heavy rain and hail has been experienced over the past few days and flooding has cut access to the site and the nearest towns of Meekatharra and Newman. Inclement weather is forecast to continue for the next few days as well.
A reverse circulation drill remains secured at site with all contractors required for the drilling program retained. A diamond rig is also on site and is ready to commence drilling once the weather has improved.
DSO and resource upgrade targeted
Earlier in the month the joint venture wrapped up a twelve hole drilling program at Telecom Hill, which is hosted within the Peak Hill Iron Project joint venture in the mid-west region of Western Australia.
The project has potential and includes an exploration target of 3.5 to 5 billion tonnes at 25% to 35% iron, and is prospective for magnetite and hematite iron ore.
Providing another boost is that Telecom Hill has a direct shipping ore exploration target of 10 to 55 million tonnes at 55% to 58% iron.
The current Inferred JORC Resource is 850 million tonnes at 27.3% iron, which was defined from less than a half of the 10 kilometre strike length - indicating a strong chance of a resource upgrade in the near future.
Aurium has a 30% stake in the joint venture, with Padbury Mining (ASX: PDY) 70%.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21541/aurium-resources-drilling-program-at-peak-hill-iron-project-expected-to-recommence-next-week-21541.html
Heavy rain and hail has been experienced over the past few days and flooding has cut access to the site and the nearest towns of Meekatharra and Newman. Inclement weather is forecast to continue for the next few days as well.
A reverse circulation drill remains secured at site with all contractors required for the drilling program retained. A diamond rig is also on site and is ready to commence drilling once the weather has improved.
DSO and resource upgrade targeted
Earlier in the month the joint venture wrapped up a twelve hole drilling program at Telecom Hill, which is hosted within the Peak Hill Iron Project joint venture in the mid-west region of Western Australia.
The project has potential and includes an exploration target of 3.5 to 5 billion tonnes at 25% to 35% iron, and is prospective for magnetite and hematite iron ore.
Providing another boost is that Telecom Hill has a direct shipping ore exploration target of 10 to 55 million tonnes at 55% to 58% iron.
The current Inferred JORC Resource is 850 million tonnes at 27.3% iron, which was defined from less than a half of the 10 kilometre strike length - indicating a strong chance of a resource upgrade in the near future.
Aurium has a 30% stake in the joint venture, with Padbury Mining (ASX: PDY) 70%.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21541/aurium-resources-drilling-program-at-peak-hill-iron-project-expected-to-recommence-next-week-21541.html
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