Sunridge Gold Corp. (CVE:SGC)(OTCQX:SGCNF) said Thursday that it has started an exploration drilling program on several prospective targets at its Asmara project in Eritrea, sending shares up over nine percent.
One reverse circulation drill has started on gold exploration targets located on the Medrizien license, the company said, with one diamond drill expected to start drilling on the Adi Rassi target in the southern part of the Debarwa license within three weeks.
The drills are expected to complete roughly 12,000 metres of drilling over the next four to six weeks, Sunridge said.
The first planned drill targets are a series of four, sub-parallel gold mineralized shear zones, which can be followed over strike lengths of 1,000 metres to several kilometres in length, and 50 to 200 metres in width on the western part of the Medrizien exploration license.
The company said that many of these zones have been mined by Italian colonists by both open-pit and underground methods, including the Hara Hot zone which was the largest single open-pit seen on the Asmara project.
Sunridge mapped and sampled parts of the four zones ahead of the drilling program, with a total of 450 rock chip and grab samples taken. Of these, 72 returned gold assays greater than 1 gram per tonne (g/t), including 16 samples with over 5 g/t.
The best gold values were seen at 68 g/t gold in a grab sample, and 15.9 g/t gold over 2 metres in a rock chip sample.
Meanwhile, at the Debarwa license on the eastern side, a newly discovered gold mineralized shear zone, known as Adi Kubulo, will be drilled. The zone can be traced for several kilometres, with an average width of about 80 metres.
At the area, 102 rock chip and grab samples were taken so far, with assays pending, Sunridge said.
On the southern part of the Debarwa license, the Adi Rassi prospect will be the first target drilled by the diamond rig, with the target located just 10 kilometres southeast of the Debarwa deposit.
Adi Rassi is associated with a north trending shear zone about 600 metres long and averages 70 metres wide, mineralized with copper and gold.
"Management believes that Adi Rassi could be a potentially large new copper and gold discovery based on earlier drilling results such as AR-002D: 84 metres with an average grade of 1.32 g/t gold and 0.84% copper; AR-003D: 25 metres with an average grade of 0.75 g/t gold; and 0.54% copper and AR-004D: 78 metres with an average grade of 0.22 g/t gold and 1.0% copper," Sunridge said in a statment Thursday.
Results from the 12,000 metre drill program are expected within two months.
Sunridge is a mineral exploration and development company that aside from Asmara, also has exploration properties in Madagascar.
In January, the company said it expects a feasibility study for the Debarwa copper-zinc-gold-silver deposit at Asmara in the first quarter of this year, which will examine the potential for a stand-alone open-pit mine and process plant at the deposit over a seven year mine life.
The other deposits at Asmara, collectively referred to as the Asmara North project area, include the copper-zinc-gold-silver Emba Derho deposit, the zinc-gold-copper Adi Nefas deposit, and the Gupo gold deposit.
Updated resources estimates for each of these deposits are expected within the first two months of this year. A pre-feasibility study for Emba Derho is expected for the second quarter of 2012, with a full feasibility study to follow.
Shares of the company were up 9.3 percent to 59 cents as of 11:37am ET.
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Friday, 3 February 2012
New Zealand Energy sets bullish development program for North Island assets
New Zealand Energy Corp (NZEC) (CVE:NZ) (OTCQX:NZERF) is an oil and gas company that is exploring and developing both conventional and unconventional prospects in the Taranaki and East Coast basins of New Zealand’s North Island. The company has raised $12.3 million via two private placements, and then raised an additional $21.9 million in an IPO that culminated with a listing on the Toronto Venture Exchange at the beginning of August 2011.
The company’s conventional hydrocarbon targets are located within New Zealand’s Taranaki Basin. NZEC is the operator of the Eltham and Alton Permits that cover 152,066 acres on the west coast of the North Island. The Taranaki Basin has a proven history of hydrocarbon production and is currently producing from 18 fields at the rate of 55,000 barrels of oil, and 460 million cubic feet of natural gas per day. Approximately 18,000 barrels of that daily production are recovered from permits that are in the immediate vicinity of Eltham and Alton.
NZEC drilled and completed its first well in the Taranaki Basin in August with Copper Moki-1. The well targeted the Mount Messenger formation and flow tested over two days at a rate of 1,100 barrels of 41.8 API oil per day and 855,000 cubic feet of natural gas per day on a 28/64th inch choke. An extended production test over 12 days on a 20/64th inch choke produced an average of 521 barrels of oil and 508,000 cubic feet of natural gas per day.
The company allowed pressure to build up and commenced production on December 10, 2011. The well commenced free flowing on an 18/64th inch choke at an initial rate of 580 barrels of oil and 970,000 cubic feet of natural gas per day, and has leveled out at a rate of 550 barrels of oil and 685,000 cubic feet of natural gas per day.
The well site has newly installed surface facilities that can handle production of up to 1,000 barrels of oil per day. Oil is trucked to the Omata Tank Farm that is 45 kilometers north of the well site, where the oil is sold to Shell. Copper Moki-1 is producing a sweet and high quality oil providing near-term operating netbacks that should exceed US$90 per barrel.
NZEC is planning to set up larger and more permanent oil storage facilities that will be capable of handling additional production from new wells in the Copper Moki area, and is also evaluating options to market natural gas production via a nearby open access gas pipeline. New Zealand is a significant net importer of oil and has a strong in-country appetite for both oil and natural gas.
The company has an extensive database of New Zealand exploration data, and in the Taranaki Basin, has identified 12 targets on 2D seismic and six targets on 3D seismic. Each well site has the potential to hold up to 1 million barrels of oil, and hosts multiple formations that can be evaluated at little additional capital cost.
The company has started drilling Copper Moki-2, and expects to start drilling Copper Moki-3 in Q1-2012 from the same pad as Copper Moki-1. Copper Moki-2 will target both the Urenui and Mount Messenger formations. Copper Moki-3 will be spudded as soon as the second well is completed and will target multi zone potential in the Mount Messenger, Urenui and Moki formations.
AJM Petroleum Consultants has identified 33 prospects within the Eltham and Alton Permits that hold conceptual potential for 730 million barrels of net undiscovered petroleum initially in place or “OOIP” and 66.6 million barrels of net prospective resources at an assumed 9% recovery rate.
NZEC is also pursuing unconventional hydrocarbon sources within three permits that cover more than 1.8 million acres along the East Coast Basin. These permits contain two shale packages, the Waipawa and Whangai, that host over 300 known oil and gas seeps and are analogous to shale formations in the United States that are producing prolific volumes of oil and natural gas, with newly developed horizontal drilling and fracking techniques.
AJM Petroleum Consultants has identified conceptual potential on these permits for 22.3 billion barrels of OOIP and 478 million boe of unconventional prospective resource, and 126 million boe of conventional prospective resource, at an assumed 2% recovery rate.
The company has already completed two core holes on its Castlepoint Permit to evaluate the Waipawa shales, which compare favorably with the Bakken shales found in North Dakota and surrounding states and provinces. While NZEC is still collecting data about the permeability and other characteristics of the two shale packages, AJM Petroleum Consultants has estimated the Waipawa shale thickness at 10 - 70 meters while the Whangai has an estimated thickness of 300 - 600 meters.
In contrast, the Bakken shales carry a thickness of 10 - 50 meters.
NZEC’s Ranui-1 well was drilled in 2008 by the previous owner and encountered the Whangai shale at a shallow depth of 910 meters. NZEC has started to re-drill this well already, with the objective of drilling to the bottom of the Whangai shale package and collecting additional core data.
Data from the two Castlepoint core wells and the Ranui well will be used to complete an extensive evaluation of the shale formations and their production potential. The company will also shoot 50 kilometers of 2D seismic at Castlepoint and reprocess existing seismic data for Ranui-1 to determine further development plans around that location.
The board of New Zealand Energy is headed by John A. Greig, who serves as chairman and has a long track recorded of funding and developing undervalued geological assets. John G. Proust serves as chief operating officer and director, and has a proven resume in building companies from grass roots to advanced development on a global basis.
Bruce G. McIntyre, president of the company, has more than 30 years of experience as an oil and gas geologist, and has established and run a number of oil and gas companies. The company also has a highly skilled technical team in New Zealand, led by Dr. Ian Brown who serves as chief operating officer and is also a professional geological engineer.
Insiders control 40 percent of the fully diluted shares and should provide strong operational control and direction.
The company’s conventional hydrocarbon targets are located within New Zealand’s Taranaki Basin. NZEC is the operator of the Eltham and Alton Permits that cover 152,066 acres on the west coast of the North Island. The Taranaki Basin has a proven history of hydrocarbon production and is currently producing from 18 fields at the rate of 55,000 barrels of oil, and 460 million cubic feet of natural gas per day. Approximately 18,000 barrels of that daily production are recovered from permits that are in the immediate vicinity of Eltham and Alton.
NZEC drilled and completed its first well in the Taranaki Basin in August with Copper Moki-1. The well targeted the Mount Messenger formation and flow tested over two days at a rate of 1,100 barrels of 41.8 API oil per day and 855,000 cubic feet of natural gas per day on a 28/64th inch choke. An extended production test over 12 days on a 20/64th inch choke produced an average of 521 barrels of oil and 508,000 cubic feet of natural gas per day.
The company allowed pressure to build up and commenced production on December 10, 2011. The well commenced free flowing on an 18/64th inch choke at an initial rate of 580 barrels of oil and 970,000 cubic feet of natural gas per day, and has leveled out at a rate of 550 barrels of oil and 685,000 cubic feet of natural gas per day.
The well site has newly installed surface facilities that can handle production of up to 1,000 barrels of oil per day. Oil is trucked to the Omata Tank Farm that is 45 kilometers north of the well site, where the oil is sold to Shell. Copper Moki-1 is producing a sweet and high quality oil providing near-term operating netbacks that should exceed US$90 per barrel.
NZEC is planning to set up larger and more permanent oil storage facilities that will be capable of handling additional production from new wells in the Copper Moki area, and is also evaluating options to market natural gas production via a nearby open access gas pipeline. New Zealand is a significant net importer of oil and has a strong in-country appetite for both oil and natural gas.
The company has an extensive database of New Zealand exploration data, and in the Taranaki Basin, has identified 12 targets on 2D seismic and six targets on 3D seismic. Each well site has the potential to hold up to 1 million barrels of oil, and hosts multiple formations that can be evaluated at little additional capital cost.
The company has started drilling Copper Moki-2, and expects to start drilling Copper Moki-3 in Q1-2012 from the same pad as Copper Moki-1. Copper Moki-2 will target both the Urenui and Mount Messenger formations. Copper Moki-3 will be spudded as soon as the second well is completed and will target multi zone potential in the Mount Messenger, Urenui and Moki formations.
AJM Petroleum Consultants has identified 33 prospects within the Eltham and Alton Permits that hold conceptual potential for 730 million barrels of net undiscovered petroleum initially in place or “OOIP” and 66.6 million barrels of net prospective resources at an assumed 9% recovery rate.
NZEC is also pursuing unconventional hydrocarbon sources within three permits that cover more than 1.8 million acres along the East Coast Basin. These permits contain two shale packages, the Waipawa and Whangai, that host over 300 known oil and gas seeps and are analogous to shale formations in the United States that are producing prolific volumes of oil and natural gas, with newly developed horizontal drilling and fracking techniques.
AJM Petroleum Consultants has identified conceptual potential on these permits for 22.3 billion barrels of OOIP and 478 million boe of unconventional prospective resource, and 126 million boe of conventional prospective resource, at an assumed 2% recovery rate.
The company has already completed two core holes on its Castlepoint Permit to evaluate the Waipawa shales, which compare favorably with the Bakken shales found in North Dakota and surrounding states and provinces. While NZEC is still collecting data about the permeability and other characteristics of the two shale packages, AJM Petroleum Consultants has estimated the Waipawa shale thickness at 10 - 70 meters while the Whangai has an estimated thickness of 300 - 600 meters.
In contrast, the Bakken shales carry a thickness of 10 - 50 meters.
NZEC’s Ranui-1 well was drilled in 2008 by the previous owner and encountered the Whangai shale at a shallow depth of 910 meters. NZEC has started to re-drill this well already, with the objective of drilling to the bottom of the Whangai shale package and collecting additional core data.
Data from the two Castlepoint core wells and the Ranui well will be used to complete an extensive evaluation of the shale formations and their production potential. The company will also shoot 50 kilometers of 2D seismic at Castlepoint and reprocess existing seismic data for Ranui-1 to determine further development plans around that location.
The board of New Zealand Energy is headed by John A. Greig, who serves as chairman and has a long track recorded of funding and developing undervalued geological assets. John G. Proust serves as chief operating officer and director, and has a proven resume in building companies from grass roots to advanced development on a global basis.
Bruce G. McIntyre, president of the company, has more than 30 years of experience as an oil and gas geologist, and has established and run a number of oil and gas companies. The company also has a highly skilled technical team in New Zealand, led by Dr. Ian Brown who serves as chief operating officer and is also a professional geological engineer.
Insiders control 40 percent of the fully diluted shares and should provide strong operational control and direction.
inShare Pdf Ocean Equities says Sunridge Gold's Asmara update supports growth potential
Ocean Equities said Thursday that a recent drilling update from Sunridge Gold (CVE:SGC)(OTCQX:SGCNF) supports the view that resources could grow at the company's Asmara project in Eritrea.
Sunridge Gold is a junior explorer focused on Asmara, as well as exploration properties in Madagascar.
In a research note, Ocean Equities said that Thursday's "impressive" drill results support the company's goal to upgrade the current 189,000 ounce inferred gold resource to higher resource categories, supporting the prefeasability study on the Asmara North assets, but also increasing the overall size of the resource.
The capital markets firm said the results suggest the size the of the deposit at Gupo, part of the Asmara North deposits in Eritrea, "has the potential to grow to 300,000 ounces of gold".
Earlier Thursday, Sunridge unveiled assay results from the final 63 drill holes of the recently-completed 8,100 metre, 99-hole drilling program at the Gupo gold deposit.
Among the highlights, drill hole GG-116-R returned 3.05 grams per tonne (g/t) gold over 28 metres; drill hole GG-125-R encountered 3.08 g/t gold over 13 metres; drill hole GG-128-R returned 2.77 g/t gold over 19 metres and drill hole GG-142-R returned 5.72 g/t gold over 12 metres and 6.52 g/t gold over 7 metres.
At drill hole GG-156-R, the company encountered 2.31 g/t gold over 22 metres, hole GG-160-R returned 5.30 g/t gold over 19 metres and drill hole GG-168-R encountered 10.09 g/t gold over 13 metres.
Sunridge's president and CEO, Michael Hopley, said: "We are very pleased with the results of this latest drilling campaign at Gupo and are confident that it will achieve the goals of both upgrading and increasing the overall size of the Gupo Gold deposit.
"The next stage will be the completion of a new resource at Gupo by Snowden and this will be an important step towards completion of the Prefeasibility Study on the Asmara North in late March this year."
Sunridge said that in general, these results confirm the location and grade of gold mineralization defined by previous drill holes down to depths of approximately 80 metres (Gupo South) to 150 metres (Gupo Main).
In addition, new zones of mineralization have been found laterally - east and west - as well as at depth and in some cases, these zones are open.
Ocean Equities also said that Sunridge is set for a big first half of 2012: the company is expecting to release the results of a feasibility Study on the Debarwa VMS project, which includes a direct shipping ore copper zone providing early cash flow.
Released to the market will be an appropriate valuation of the Debarwa project, including a production schedule with initial direct shipping ore copper production to ensure quick ramp up and access to early cashflow.
In addition, prefeasibility studies on the Northern Asmara assets - Emba Derho, Adi Nefas and Gupo - are scheduled to be released to the market early in the second quarter.
Ocean Equities also said resource upgrades are also scheduled to coincide with the upcoming feasibility studies.
Sunridge Gold is a junior explorer focused on Asmara, as well as exploration properties in Madagascar.
In a research note, Ocean Equities said that Thursday's "impressive" drill results support the company's goal to upgrade the current 189,000 ounce inferred gold resource to higher resource categories, supporting the prefeasability study on the Asmara North assets, but also increasing the overall size of the resource.
The capital markets firm said the results suggest the size the of the deposit at Gupo, part of the Asmara North deposits in Eritrea, "has the potential to grow to 300,000 ounces of gold".
Earlier Thursday, Sunridge unveiled assay results from the final 63 drill holes of the recently-completed 8,100 metre, 99-hole drilling program at the Gupo gold deposit.
Among the highlights, drill hole GG-116-R returned 3.05 grams per tonne (g/t) gold over 28 metres; drill hole GG-125-R encountered 3.08 g/t gold over 13 metres; drill hole GG-128-R returned 2.77 g/t gold over 19 metres and drill hole GG-142-R returned 5.72 g/t gold over 12 metres and 6.52 g/t gold over 7 metres.
At drill hole GG-156-R, the company encountered 2.31 g/t gold over 22 metres, hole GG-160-R returned 5.30 g/t gold over 19 metres and drill hole GG-168-R encountered 10.09 g/t gold over 13 metres.
Sunridge's president and CEO, Michael Hopley, said: "We are very pleased with the results of this latest drilling campaign at Gupo and are confident that it will achieve the goals of both upgrading and increasing the overall size of the Gupo Gold deposit.
"The next stage will be the completion of a new resource at Gupo by Snowden and this will be an important step towards completion of the Prefeasibility Study on the Asmara North in late March this year."
Sunridge said that in general, these results confirm the location and grade of gold mineralization defined by previous drill holes down to depths of approximately 80 metres (Gupo South) to 150 metres (Gupo Main).
In addition, new zones of mineralization have been found laterally - east and west - as well as at depth and in some cases, these zones are open.
Ocean Equities also said that Sunridge is set for a big first half of 2012: the company is expecting to release the results of a feasibility Study on the Debarwa VMS project, which includes a direct shipping ore copper zone providing early cash flow.
Released to the market will be an appropriate valuation of the Debarwa project, including a production schedule with initial direct shipping ore copper production to ensure quick ramp up and access to early cashflow.
In addition, prefeasibility studies on the Northern Asmara assets - Emba Derho, Adi Nefas and Gupo - are scheduled to be released to the market early in the second quarter.
Ocean Equities also said resource upgrades are also scheduled to coincide with the upcoming feasibility studies.
Thursday, 2 February 2012
Blackham Resources gains while Australian market falls
Blackham Resources (ASX: BLK) shares rallied 14.29% today to A$0.24 shrugging off the broader Australian market’s downward pull.
The company is now sufficiently cashed up to progress its highly prospective Matilda gold project after receiving firm commitments to raise $950,000 via a placement of 4.75 million shares at $0.20 per share.
This boosts Blackham’s cash in the bank to over $1.2 million.
Matilda is hosted in the historical gold province of Wiluna in Western Australia and has a resource of 10.2 million tonnes at 1.8 grams per tonne for 601,000 gold ounces.
Blackham is undertaking a 2,000 metre reverse circulation drilling program at Matilda in the near term, with the company considering the project has the potential for both sizeable open pit and high grade underground deposits.
Previous drilling has identified ore grade prospects that require further follow up programs, with the new program designed to test the continuity of the existing drill data.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24861/blackham-resources-gains-while-australian-market-falls--24861.html
The company is now sufficiently cashed up to progress its highly prospective Matilda gold project after receiving firm commitments to raise $950,000 via a placement of 4.75 million shares at $0.20 per share.
This boosts Blackham’s cash in the bank to over $1.2 million.
Matilda is hosted in the historical gold province of Wiluna in Western Australia and has a resource of 10.2 million tonnes at 1.8 grams per tonne for 601,000 gold ounces.
Blackham is undertaking a 2,000 metre reverse circulation drilling program at Matilda in the near term, with the company considering the project has the potential for both sizeable open pit and high grade underground deposits.
Previous drilling has identified ore grade prospects that require further follow up programs, with the new program designed to test the continuity of the existing drill data.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24861/blackham-resources-gains-while-australian-market-falls--24861.html
Pan Asia Corporation takes the ASX by storm, shares up 67% for the week
Pan Asia Corporation (ASX: PZC) has been on an upwards share trajectory this week, hitting an intra-day high of A$0.175 yesterday, marking a 67% increase on last Friday’s close of $0.105.
Shares were up 6.9% to $0.155 today as the broader Australian market wiped off some of yesterday’s gains, shedding 8.4 points, or 0.2%.
While the Australian market has spent most of the week in the red, Pan Asia continued to buck the trend, rising 9.52% to $0.115 on Tuesday January 31.
The company rallied further on Wednesday February 1 with shares jumping 21.74% to $0.14.
While there has been no news released this week besides the company’s quarterly reports, investors appear to be finally realising the potential Pan Asia possesses.
A recent US$1 million commitment in funding from Kopex for drilling through to final Feasibility Study at Pan Asia’s flagship Transcoal Minergy (TCM) Coal Project in South Kalimantan, Indonesia, vindicates the quality and potential of the TCM project to "feed" hungry Asian energy markets.
Pan Asia chief executive officer Alan Hopkins said recently, “The terrific progress on the TCM project is building a good platform for 2012 and the coming six months hold much potential.”
TCM has a JORC Resource of 114.6 million tonnes, with an overall exploration target of 200 million tonnes over the next 24 months.
Pan Asia expects to deliver a final Feasibility Study in the first half of 2012.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24853/pan-asia-corporation-takes-the-asx-by-storm-shares-up-67-for-the-week--24853.html
Shares were up 6.9% to $0.155 today as the broader Australian market wiped off some of yesterday’s gains, shedding 8.4 points, or 0.2%.
While the Australian market has spent most of the week in the red, Pan Asia continued to buck the trend, rising 9.52% to $0.115 on Tuesday January 31.
The company rallied further on Wednesday February 1 with shares jumping 21.74% to $0.14.
While there has been no news released this week besides the company’s quarterly reports, investors appear to be finally realising the potential Pan Asia possesses.
A recent US$1 million commitment in funding from Kopex for drilling through to final Feasibility Study at Pan Asia’s flagship Transcoal Minergy (TCM) Coal Project in South Kalimantan, Indonesia, vindicates the quality and potential of the TCM project to "feed" hungry Asian energy markets.
Pan Asia chief executive officer Alan Hopkins said recently, “The terrific progress on the TCM project is building a good platform for 2012 and the coming six months hold much potential.”
TCM has a JORC Resource of 114.6 million tonnes, with an overall exploration target of 200 million tonnes over the next 24 months.
Pan Asia expects to deliver a final Feasibility Study in the first half of 2012.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24853/pan-asia-corporation-takes-the-asx-by-storm-shares-up-67-for-the-week--24853.html
GBM Resources increases copper strike length at Milo by more than 70%
GBM Resources (ASX: GBZ) continues to prove up the potential of its Milo breccia hosted IOCG-Rare Earth Project in northwest Queensland, with recent drilling confirming that the zone of sulphide mineralisation at Milo now extends at least 380 metres beyond previous drilling.
One of the three diamond core holes drilled during December intersected a 124 metre interval at 0.5% copper equivalent from 82 metres, including 21 metres at 1% copper equivalent.
Drilling has now confirmed that the mineralised zone continues strongly and with significant widths at least 80 metres beyond the previously defined, northernmost extent of copper mineralisation in the central Milo Prospect area.
Initial indications from the second and third drill holes are that they have also intersected zones of mineralisation, suggesting that the mineralisation may extend for a further 300 metres along strike to the north of the first drill hole.
Adding to the potential of the Milo project, the first drill hole also encountered several zones of rare earth and yttrium enrichment, including 27 metres and a 13 metre zone at 0.1% total rare earth elements and yttrium oxide.
Drilling has focused on confirming extensions of the known zone of breccia hosted IOCG style mineralisation beyond the 500 metres tested by drilling to date.
Geological mapping confirmed continuation of the host calc-silicate gossan and breccia zone over an additional 400 metres along strike to the north of previous drilling, with malachite staining observed in outcrop at a number of locations being the target of the current drill testing.
Milo Potential
The initial exploration target for Milo of 30-80 million tonnes at between 0.8% and 1.2% copper equivalent is under review following the discovery of value-adding rare earth elements and yttrium mineralisation.
The Milo prospect is located near Cloncurry in far north Queensland, where exploration and mining activity is heating up.
Late last year the company uncovered a broad zone of rare earth element mineralisation which was found to extend through the entire project area.
Importantly, the Milo Project is proving itself to be a large tonnage, iron oxide copper gold discovery.
Next Steps
GBM has begun a Scoping Study which is expected to be completed during the June quarter.
The company has also begun the logging and sampling of holes drilled immediately before the end of the 2011 field season.
GBM Growth
Last month GBM finalised agreements with Newcrest Operations Limited to purchase an exploration permit surrounding the high grade Trekelano copper mine in Queensland, where Ivanhoe Australia (ASX: IVA) recently intersected 44 metres at 5.7% copper and 1.4 grams per tonne (g/t) gold.
The acquisition of the new exploration permit provides GBM with considerable potential for future discoveries in the highly prospective northwest mineral province in Queensland.
Defining the potential of the permit is preliminary research showing significant copper intersections from the Clarries Prospect of 63 metres at 0.15% copper, 80 metres at 0.12% copper and 79 metres at 0.27% copper.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24848/gbm-resources-increases-copper-strike-length-at-milo-by-more-than-70--24848.html
One of the three diamond core holes drilled during December intersected a 124 metre interval at 0.5% copper equivalent from 82 metres, including 21 metres at 1% copper equivalent.
Drilling has now confirmed that the mineralised zone continues strongly and with significant widths at least 80 metres beyond the previously defined, northernmost extent of copper mineralisation in the central Milo Prospect area.
Initial indications from the second and third drill holes are that they have also intersected zones of mineralisation, suggesting that the mineralisation may extend for a further 300 metres along strike to the north of the first drill hole.
Adding to the potential of the Milo project, the first drill hole also encountered several zones of rare earth and yttrium enrichment, including 27 metres and a 13 metre zone at 0.1% total rare earth elements and yttrium oxide.
Drilling has focused on confirming extensions of the known zone of breccia hosted IOCG style mineralisation beyond the 500 metres tested by drilling to date.
Geological mapping confirmed continuation of the host calc-silicate gossan and breccia zone over an additional 400 metres along strike to the north of previous drilling, with malachite staining observed in outcrop at a number of locations being the target of the current drill testing.
Milo Potential
The initial exploration target for Milo of 30-80 million tonnes at between 0.8% and 1.2% copper equivalent is under review following the discovery of value-adding rare earth elements and yttrium mineralisation.
The Milo prospect is located near Cloncurry in far north Queensland, where exploration and mining activity is heating up.
Late last year the company uncovered a broad zone of rare earth element mineralisation which was found to extend through the entire project area.
Importantly, the Milo Project is proving itself to be a large tonnage, iron oxide copper gold discovery.
Next Steps
GBM has begun a Scoping Study which is expected to be completed during the June quarter.
The company has also begun the logging and sampling of holes drilled immediately before the end of the 2011 field season.
GBM Growth
Last month GBM finalised agreements with Newcrest Operations Limited to purchase an exploration permit surrounding the high grade Trekelano copper mine in Queensland, where Ivanhoe Australia (ASX: IVA) recently intersected 44 metres at 5.7% copper and 1.4 grams per tonne (g/t) gold.
The acquisition of the new exploration permit provides GBM with considerable potential for future discoveries in the highly prospective northwest mineral province in Queensland.
Defining the potential of the permit is preliminary research showing significant copper intersections from the Clarries Prospect of 63 metres at 0.15% copper, 80 metres at 0.12% copper and 79 metres at 0.27% copper.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24848/gbm-resources-increases-copper-strike-length-at-milo-by-more-than-70--24848.html
Red Sky Energy sees upside potential as New South Wales decision on Talma CSG pilot draws near
Red Sky Energy (ASX:ROG) has confirmed the strong upside potential in its Clarence Moreton Basin coal seam gas noting its share of contingent resources in PEL 457 stands at 188.7 petajoules.
At least part of this resource could be converted to reserves status once the company receives approval to drill the Talma pilot production well, which targets the highly prospective Kangaroo Creek, and carry out a long-term production test.
This will also add to the company’s existing proved, probable and possible reserves of 114 petajoules, which currently ranks as the fifth largest amongst the non-major companies.
Red Sky ranks above Dart Energy’s (ASX: DTE) 102 petajoules and below Senex Energy's (ASX: SXY) 249 petajoules reserves position.
Additional reserves will serve to further strengthen Red Sky’s position amongst Australia’s diminishing ranks of coal seam gas players.
Recent acquisitions of Eastern Star Gas Eastern Star Gas (ASX: ESG) by Santos (ASX: STO) and Bow Energy (ASX: BOW) by Arrow Energy have continued the trend of bigger CSG players gobbling up smaller companies as they seek to boost their reserves for their liquefied natural gas projects.
The New South Wales Department of Trade and Investment, Resources and Energy is currently assessing Red Sky’s application to carry out the Talma pilot well after requesting additional information early this year and is expected to make a decision soon.
The Talma pilot well will drill out the existing fragmented Talma-1 core hole and expose the Kangaroo Creek formation over a 90 metre interval, from 480 metres to 570 metres deep.
Once drilling is completed, a wellhead and flare will be installed and the well put into production.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24843/red-sky-energy-sees-upside-potential-as-new-south-wales-decision-on-talma-csg-pilot-draws-near-24843.html
At least part of this resource could be converted to reserves status once the company receives approval to drill the Talma pilot production well, which targets the highly prospective Kangaroo Creek, and carry out a long-term production test.
This will also add to the company’s existing proved, probable and possible reserves of 114 petajoules, which currently ranks as the fifth largest amongst the non-major companies.
Red Sky ranks above Dart Energy’s (ASX: DTE) 102 petajoules and below Senex Energy's (ASX: SXY) 249 petajoules reserves position.
Additional reserves will serve to further strengthen Red Sky’s position amongst Australia’s diminishing ranks of coal seam gas players.
Recent acquisitions of Eastern Star Gas Eastern Star Gas (ASX: ESG) by Santos (ASX: STO) and Bow Energy (ASX: BOW) by Arrow Energy have continued the trend of bigger CSG players gobbling up smaller companies as they seek to boost their reserves for their liquefied natural gas projects.
The New South Wales Department of Trade and Investment, Resources and Energy is currently assessing Red Sky’s application to carry out the Talma pilot well after requesting additional information early this year and is expected to make a decision soon.
The Talma pilot well will drill out the existing fragmented Talma-1 core hole and expose the Kangaroo Creek formation over a 90 metre interval, from 480 metres to 570 metres deep.
Once drilling is completed, a wellhead and flare will be installed and the well put into production.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24843/red-sky-energy-sees-upside-potential-as-new-south-wales-decision-on-talma-csg-pilot-draws-near-24843.html
Papillon Resources: A$16m institutional capital raising highlights West African gold potential
Papillon Resources (ASX: PIR) has accomplished a significant capital raising of $16 million from institutional investors in a challenging market.
The institutional support provides a vote of confidence in Papillon's gold project and its progress at the Fekola project in Mali.
The placement comprises 21 million shares at $0.76 to raise $16 million, boosting the company's cash position to around $27 million.
Alan Campbell, managing director, commented on the strong support from the investment community, and said:
“We are extremely pleased to have institutional investors of this calibre invest in Papillon at this relatively early stage.
"We feel it is a positive reflection of the encouraging results the company has achieved to date. Importantly, the placement will remove short term financing risk at this extremely important stage of Papillon’s development cycle.
"It will also raise the company’s profile among international investors and will provide significant financial support to the company as it rapidly progresses the promising Fekola Gold Project in the next 12 to 18 months.”
Funding allocation
Papillon is now well funded to commence Scoping Studies at the project, as the company moves towards a maiden gold JORC Resource by around mid-2012.
Highlighting the strategic location of the project, it is situated in the Mali West regional gold province, which has more than 22 million ounces of gold within 60 kilometres.
Other projects in the vicinity include Randgold Resource's (LON:RRS) 11.5 million ounce Loulo project and AngloGold Ashanti's (NYSE: AU) 13.1 million ounce Sadiola project.
New gold discoveries
Results from two more diamond results were released this week, with highlights from the first hole including 57 metres at 10.69 grams per tonne (g/t) gold from 177.3 metres; and 16 metres at 2.24g/t gold from 237.3 metres.
A second hole returned 21 metres at 3.58g/t gold from 105.2 metres; 53 metres at 5.07g/t gold from 155.2 metres; and 16 metres at 4.40g/t gold from 212.2 metres.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24840/papillon-resources-a16m-institutional-capital-raising-highlights-west-african-gold-potential-24840.html
The institutional support provides a vote of confidence in Papillon's gold project and its progress at the Fekola project in Mali.
The placement comprises 21 million shares at $0.76 to raise $16 million, boosting the company's cash position to around $27 million.
Alan Campbell, managing director, commented on the strong support from the investment community, and said:
“We are extremely pleased to have institutional investors of this calibre invest in Papillon at this relatively early stage.
"We feel it is a positive reflection of the encouraging results the company has achieved to date. Importantly, the placement will remove short term financing risk at this extremely important stage of Papillon’s development cycle.
"It will also raise the company’s profile among international investors and will provide significant financial support to the company as it rapidly progresses the promising Fekola Gold Project in the next 12 to 18 months.”
Funding allocation
Papillon is now well funded to commence Scoping Studies at the project, as the company moves towards a maiden gold JORC Resource by around mid-2012.
Highlighting the strategic location of the project, it is situated in the Mali West regional gold province, which has more than 22 million ounces of gold within 60 kilometres.
Other projects in the vicinity include Randgold Resource's (LON:RRS) 11.5 million ounce Loulo project and AngloGold Ashanti's (NYSE: AU) 13.1 million ounce Sadiola project.
New gold discoveries
Results from two more diamond results were released this week, with highlights from the first hole including 57 metres at 10.69 grams per tonne (g/t) gold from 177.3 metres; and 16 metres at 2.24g/t gold from 237.3 metres.
A second hole returned 21 metres at 3.58g/t gold from 105.2 metres; 53 metres at 5.07g/t gold from 155.2 metres; and 16 metres at 4.40g/t gold from 212.2 metres.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24840/papillon-resources-a16m-institutional-capital-raising-highlights-west-african-gold-potential-24840.html
Mutiny Gold: Deflector gold drilling program expanded, timeline for DFS defined
Mutiny Gold (ASX: MYG) remains focused at the Deflector deposit, where the company has an extensive drilling campaign underway to increase the gold resource.
The current timeline of events is that the first results from the campaign started in December are due within weeks. The first Reserves from the project are also expected very soon.
The infill program will then wrap up towards the end of February, with results which would be expected around April, to then be included in the highly anticipated Definitive Feasibility Study to be released to the market around mid-2012.
Extension drilling will continue over February and March, with results then expected to flow to the market from late April and into May.
The reason this study has taken longer than planned is due to being expanded to support production in the order of 100,000 to 120,000 gold ounces annually when fully ramped up, compared to the initially considered 50,000 ounces.
Investors will be aware that Mutiny has already created some major inroads in moving Deflector to production, including moving to full ownership of the Gullewa Gold Project (which hosts deflector), while also acquiring the 10% Net Profit Interest Royalty for 40 million shares, which are escrowed until 15 March 2013.
Expanded drilling program
The drilling program which kicked off towards the end of 2011 was initially going to comprise 12,000 metres of diamond and reverse circulation drilling targeting infill and extensions, but this has now been extended by a further 3,000 meters with two short programs of verification drilling.
This drilling addresses two separate areas of the current resource estimate with the view of providing additional support to the Definitive Feasibility Study. Currently there is one diamond rig and one reverse circulation rig active full time at the deposit.
Deflector - by the numbers, reserves in early 2012
Deflector has a resource of 3.4 million tonnes at 4.9g/t gold for 530,000 gold ounces, 0.85% copper for 29,000 tonnes and 5.7g/t silver for 620,000 ounces.
Measured and Indicated accounts 2.1 million tonnes at 5.2g/t gold for 350,000 ounces, 1.1% copper for 22,000 tonnes and 7.3g/t silver for 490,000 ounces. Inferred is 1.3 million tonnes at 4.5g/t gold for 180,000 ounces, 0.5% copper for 6,000 tonnes and 6.2g/t silver for 130,000 ounces.
Future drill programs target 2 million gold ounce operation
To continue to progress Deflector, Mutiny has already formulated drill programs for 2012 and onwards, which is both aimed at increasing the mine life and gold ounces - with the target 1.6 million to 2.4 million ounces of gold.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24833/mutiny-gold-deflector-gold-drilling-program-expanded-timeline-for-dfs-defined-24833.html
The current timeline of events is that the first results from the campaign started in December are due within weeks. The first Reserves from the project are also expected very soon.
The infill program will then wrap up towards the end of February, with results which would be expected around April, to then be included in the highly anticipated Definitive Feasibility Study to be released to the market around mid-2012.
Extension drilling will continue over February and March, with results then expected to flow to the market from late April and into May.
The reason this study has taken longer than planned is due to being expanded to support production in the order of 100,000 to 120,000 gold ounces annually when fully ramped up, compared to the initially considered 50,000 ounces.
Investors will be aware that Mutiny has already created some major inroads in moving Deflector to production, including moving to full ownership of the Gullewa Gold Project (which hosts deflector), while also acquiring the 10% Net Profit Interest Royalty for 40 million shares, which are escrowed until 15 March 2013.
Expanded drilling program
The drilling program which kicked off towards the end of 2011 was initially going to comprise 12,000 metres of diamond and reverse circulation drilling targeting infill and extensions, but this has now been extended by a further 3,000 meters with two short programs of verification drilling.
This drilling addresses two separate areas of the current resource estimate with the view of providing additional support to the Definitive Feasibility Study. Currently there is one diamond rig and one reverse circulation rig active full time at the deposit.
Deflector - by the numbers, reserves in early 2012
Deflector has a resource of 3.4 million tonnes at 4.9g/t gold for 530,000 gold ounces, 0.85% copper for 29,000 tonnes and 5.7g/t silver for 620,000 ounces.
Measured and Indicated accounts 2.1 million tonnes at 5.2g/t gold for 350,000 ounces, 1.1% copper for 22,000 tonnes and 7.3g/t silver for 490,000 ounces. Inferred is 1.3 million tonnes at 4.5g/t gold for 180,000 ounces, 0.5% copper for 6,000 tonnes and 6.2g/t silver for 130,000 ounces.
Future drill programs target 2 million gold ounce operation
To continue to progress Deflector, Mutiny has already formulated drill programs for 2012 and onwards, which is both aimed at increasing the mine life and gold ounces - with the target 1.6 million to 2.4 million ounces of gold.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24833/mutiny-gold-deflector-gold-drilling-program-expanded-timeline-for-dfs-defined-24833.html
Resource Star seeks $1.14 million raising through partly underwritten entitlement issue
Resource Star (ASX: RSL) plans to raise up to $1.14 million to put towards exploration in Malawi and Australia and to repay funding from a major shareholder.
The money will be raised through a pro rata one for one non-renounceable entitlement issue offered at $0.02 each.
Substantial shareholder Red Rock Resources has already committed to take up its full entitlement under the issue and will underwrite the first $500,000 of any shortfall.
Part of the funds will be used to repay funding that was made available to Resource Star by Red Rock pending completion of the issue.
Proceeds from the issue will also be used to complete a new round of exploration at the Livingstonia uranium project in Malawi.
Resource Star plans to advance its other exploration projects, which include the Machinga Joint Venture and Ilomba Hill Joint Venture in Malawi as well as the Spinifex Joint Venture and the Edith River Project in Australia.
The rights issue opens on February 20, 2012, and is scheduled to close on March 6, 2012.
Livingstonia
Resource Star is earning up to an 80% stake in Livingstonia from joint venture partner Globe Metals and Mining (ASX: GBE).
In November 2011 an extension to the northern boundary of one tenement at Livingstonia was granted, boosting the project’s exploration potential.
The additional 400 metres of land lies to the north of the existing Inferred Resource at the Chombe prospect.
Chomba hosts an Inferred JORC Resource of 8.3 million tonnes at 325 parts per million uranium oxide equivalent for a contained 6 million pounds of uranium oxide, based on a 150 parts per million cut-off grade.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24834/resource-star-seeks-114-million-raising-through-partly-underwritten-entitlement-issue-24834.html
The money will be raised through a pro rata one for one non-renounceable entitlement issue offered at $0.02 each.
Substantial shareholder Red Rock Resources has already committed to take up its full entitlement under the issue and will underwrite the first $500,000 of any shortfall.
Part of the funds will be used to repay funding that was made available to Resource Star by Red Rock pending completion of the issue.
Proceeds from the issue will also be used to complete a new round of exploration at the Livingstonia uranium project in Malawi.
Resource Star plans to advance its other exploration projects, which include the Machinga Joint Venture and Ilomba Hill Joint Venture in Malawi as well as the Spinifex Joint Venture and the Edith River Project in Australia.
The rights issue opens on February 20, 2012, and is scheduled to close on March 6, 2012.
Livingstonia
Resource Star is earning up to an 80% stake in Livingstonia from joint venture partner Globe Metals and Mining (ASX: GBE).
In November 2011 an extension to the northern boundary of one tenement at Livingstonia was granted, boosting the project’s exploration potential.
The additional 400 metres of land lies to the north of the existing Inferred Resource at the Chombe prospect.
Chomba hosts an Inferred JORC Resource of 8.3 million tonnes at 325 parts per million uranium oxide equivalent for a contained 6 million pounds of uranium oxide, based on a 150 parts per million cut-off grade.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24834/resource-star-seeks-114-million-raising-through-partly-underwritten-entitlement-issue-24834.html
Central Petroleum granted voluntary suspension, capital raising announcement pending
Central Petroleum (ASX: CTP) has been granted a change in status by the ASX to voluntary suspension pending the release of a proposed capital raising announcement.
Central Petroleum has not yet indicated where the potential capital injection will be allocated, but the company is in a very interesting position and earlier in the week announced some positive news for Surprise 1.
An engineering report by RPS Energy indicates that the Surprise-1 Re-entry H well, in the Amadeus Basin, could access stock tank oil initially in place (STOIIP) of between 0.5 and 2 million barrels in an area proximal to the well.
The voluntary suspension has been requested to last until the earlier of an announcement being made to the market, or the opening of trade on Monday 6 February.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24831/central-petroleum-granted-voluntary-suspension-capital-raising-announcement-pending-24831.html
Central Petroleum has not yet indicated where the potential capital injection will be allocated, but the company is in a very interesting position and earlier in the week announced some positive news for Surprise 1.
An engineering report by RPS Energy indicates that the Surprise-1 Re-entry H well, in the Amadeus Basin, could access stock tank oil initially in place (STOIIP) of between 0.5 and 2 million barrels in an area proximal to the well.
The voluntary suspension has been requested to last until the earlier of an announcement being made to the market, or the opening of trade on Monday 6 February.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24831/central-petroleum-granted-voluntary-suspension-capital-raising-announcement-pending-24831.html
Ventnor Resources granted halt pending capital raising details
Ventnor Resources (ASX: VRX) has recently delivered some high graded copper intersections to the market from the strategically located Thaduna and Green Dragon project.
The most recent highlights from Thaduna and Green Dragon included:
- 37 metres at 2.61% copper from 111 metres, including 10 metres at 7.53% copper; and
- 62 metres at 2.19% copper from 125 metres, including 32 metres at 3.10% copper.
The outcome of these discoveries is that they support a conceptual target of deeper primary mineralisation.
The company has now been granted a trading halt by the ASX pending the release of a proposed capital raising announcement.
The halt will last until the earlier of an announcement being made to the market, or the opening of trade on Tuesday 7 February.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24829/ventnor-resources-granted-halt-pending-capital-raising-details-24829.html
The most recent highlights from Thaduna and Green Dragon included:
- 37 metres at 2.61% copper from 111 metres, including 10 metres at 7.53% copper; and
- 62 metres at 2.19% copper from 125 metres, including 32 metres at 3.10% copper.
The outcome of these discoveries is that they support a conceptual target of deeper primary mineralisation.
The company has now been granted a trading halt by the ASX pending the release of a proposed capital raising announcement.
The halt will last until the earlier of an announcement being made to the market, or the opening of trade on Tuesday 7 February.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24829/ventnor-resources-granted-halt-pending-capital-raising-details-24829.html
Sun Resources may slow down on further Delta Oil buys, flags cut in acquisition costs
Sun Resources (ASX:SUR) has flagged that it may stop short of acquiring its targeted 10,000 acres over the Delta Oil project in the highly prospective Eagle Ford Shale in Texas.
In a response to an ASX query about the rate which it was expending cash for the quarter ending 31 December 2011, Sun said it had already acquired the majority of the project and future acquisitions costs would be much lower.
Sun has already secured a 100% working interest over 6803 acres of the project.
Independent consulting firm Ralph E. Davis had in 2011 estimated unrisked 10 million barrels of net prospective oil resources in one sand unit of the Delta Oil Project for an NPV of $310 million.
Ralph E. Davis added there was potential upside of 10 to 20 million barrels of prospective oil resource in other sand units in the 137 metres (450 feet) thick sequence.
Recent horizontal wells within 56.3 kilometres (35 miles) of the Delta Oil Project have obtained initial flow rates of 900 to 1,200 barrels of oil per day from multi-staged fracced laterals of 1829-2134 metres (6,000-7,000 feet) in sandstone units.
Operators have also reporting estimated ultimate recoveries (EUR) of 300,000 to 600,000 barrels of oil per well.
These are comparable to wells located in better known producing areas of the Eagle Ford shale.
Sun also responded to the ASX on its negative cash flow, saying it was usual for exploration companies to have negative operating cash flow before commercialising a discovery.
It added the A$10.8 million it had raised from new and existing shareholders demonstrated its ability to raise exploration capital and that its total assets were A$8.8 million as compared to its total liabilities of A$100,506.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24809/sun-resources-may-slow-down-on-further-delta-oil-buys-flags-cut-in-acquisition-costs-24809.html
In a response to an ASX query about the rate which it was expending cash for the quarter ending 31 December 2011, Sun said it had already acquired the majority of the project and future acquisitions costs would be much lower.
Sun has already secured a 100% working interest over 6803 acres of the project.
Independent consulting firm Ralph E. Davis had in 2011 estimated unrisked 10 million barrels of net prospective oil resources in one sand unit of the Delta Oil Project for an NPV of $310 million.
Ralph E. Davis added there was potential upside of 10 to 20 million barrels of prospective oil resource in other sand units in the 137 metres (450 feet) thick sequence.
Recent horizontal wells within 56.3 kilometres (35 miles) of the Delta Oil Project have obtained initial flow rates of 900 to 1,200 barrels of oil per day from multi-staged fracced laterals of 1829-2134 metres (6,000-7,000 feet) in sandstone units.
Operators have also reporting estimated ultimate recoveries (EUR) of 300,000 to 600,000 barrels of oil per well.
These are comparable to wells located in better known producing areas of the Eagle Ford shale.
Sun also responded to the ASX on its negative cash flow, saying it was usual for exploration companies to have negative operating cash flow before commercialising a discovery.
It added the A$10.8 million it had raised from new and existing shareholders demonstrated its ability to raise exploration capital and that its total assets were A$8.8 million as compared to its total liabilities of A$100,506.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24809/sun-resources-may-slow-down-on-further-delta-oil-buys-flags-cut-in-acquisition-costs-24809.html
Xceed Resources: Cash backed and developing coal production and cash flows from Moabsvelden
Xceed Resources (ASX: XCD) is an Australia based junior mining company with South African coal assets that plans to commission its first open pit coal project at Moabsvelden in mid 2013.
Production is planned at a rate of 3 million tonnes per year to produce 1 million tonnes of domestic thermal coal, and 680,000 tonnes of export quality coal. Two additional coal projects are also under development within the same coal region.
The company is currently valued at very close to cash backing of $9.5 million, and the market assigns minimal value to its significant as well as advanced coal assets.
Share Price: $0.13
Issued Shares: 90.5m
Market Cap: $11.7m
Cash: $9.5m
Debt: Nil
On a fully diluted basis and after accounting for performance shares the number of issued shares becomes 140.5 million, and the adjusted market capitalisation would be $16.1 million.
Analysis
Catalysts such as receipt of mining permits, off-take agreement and funding could kick this valuation higher.
On an EV/tonne coal resource, Xceed is valued well below its coal sector peers.
Xceed could carry a similar valuation in 2012 as Moabsvelden develops into an operating mine and the portfolio produces a build up of resources for production, or acquires more low cost projects.
Background
The thermal coal market provides a very attractive entry point for a lightly capitalised company, and South African thermal coal assets can be acquired at very reasonable valuations. Long term demand for thermal coal in local and global markets is forecast to be robust.
South Africa is ranked amongst the top five countries as a coal producer and consumer of coal, and relies heavily on thermal coal for production of electricity. The country is also taking advantage of its proximity to Asian markets and is becoming an important player in the fastest growing seaborne thermal coal market in the world.
The country has good infrastructure, an established mining culture and has evolved its mining legislation to allow junior mining companies to form partnerships with local business entities.
The global consumption of thermal coal is projected to reach 7 billion tonnes by 2030, and is driven by the rapid industrialisation of countries such as China, India, and Brazil.
Thermal coal currently provides the feedstock to produce 39% of global electricity supply, and is expected to play a very significant role over the next twenty years. This is an extremely diverse global market that is not prone to extreme fluctuations in demand that typically affect markets for other commodities.
Management and Shareholding
The company maintains a three man board that is made of professionals who have all been involved with the development, construction and management of mines.
Patrick O’Conner serves as Non-executive Chairman, is Deputy Chairman of Perilya Ltd and until last month was Chairman of the West Australian Water Corp. He was previously Managing Director of Macraes Mining and CEO of Oceana Gold Ltd., and has had considerable experience in mining operations.
Ian Culbert serves as Managing Director, and was the former Managing Director of Tritton Resources Limited and Lafayette Mining Limited. He has 20 years experience in the resources industry and has managed the funding, planning, construction and operation of mines and exploration projects in Australia, Asia and Africa.
Stephen Belben is Finance Director, and was the national partner in charge of Ernst & Young’s Mineral & Energy Industry Group. He has 25 years of experience in the resources industry, and has served in senior executive positions and directorships for public companies with operating mines in Africa and Asia.
The top 20 shareholders hold 42.8 million shares, or 47.3% of the issued shares of the Company. The Directors and vendors of the 74% interest in the Moabsvelden Coal Project retain a significant equity interest.
The consideration for the acquisition of this interest included the issuance of 25 million ordinary shares. An additional 25 million Class A performance shares will now also convert into 25 million ordinary shares as a JORC compliant reserve has been delineated on the Moabsvelden Project prior to 5 April 2012.
A further 25 million Class B performance shares will convert to 25 million ordinary shares upon a New Order Mining Right being granted in relation to the Moabsvelden Project by 5 April 2014. If the milestone is not achieved by that date all Class B performance shares convert into 1 ordinary share.
Funding
Xceed Resources completed a 1:10 consolidation of its share capital, changed its name from Xceed Capital, and raised cash of $9 million from the issue of 45 million shares at $0.20 each. The Company re-listed on the ASX in mid April of 2011, after the funding was completed and management team was restructured.
Cash held at the end of the September quarter amounted to $10.04 million. Exploration expenses for the December quarter were projected at $1.2 million, and administration expenses were $350,000, for a total of $1.55 million.
Moabsvelden Coal Project
The company retains a 74% interest in the advanced stage Moabsvelden coal project which is located within South Africa’s key coal region of Witbank.
Xceed acquired the Moabsvelden thermal coal project because it is relatively easy to develop, and is within the Witbank/Ermelo/Highveld coalfield complex that supplies 80% of South Africa’s coal.
The coalfield has excellent road and rail infrastructure, and is surrounded by many thermal power stations that generate electricity, and is also 80 kilometres from the main Johannesburg industrial belt.
The project is surrounded by metallurgical and thermal coal mines at Leeuwpan, Stuart Coal, Vanggatfontein, and Rietkuil, where each project outputs an average of 3 million tonnes of coal per year. New mines are under construction at Vlakvarkfontein, Kangala and Brakfontein.
The market value of Xceed’s share in the project was valued by Venmyn and applied to the previously defined 55 million tonnes of Indicated thermal coal resources.
Venmyn who are leading specialists in the valuation of South African mining projects valued Moabsvelden at $18 million or $0.20 per share.
This valuation preceded the recent round of drilling that upgraded the in situ Indicated Resource to a JORC compliant Measured Resource and paves the road to funding, development, and production in 2013.
Since that assessment was completed the company undertook a drilling and development program that increased the size of the coal resource to a JORC compliant 66.14 million gross in situ tonnes, with 96% of that tonnage now classified as Measured Resources. No further exploration drilling will be required on the property.
Gemecs completed the independent resource estimate based on 39 diamond drill holes that were completed by Xceed in 2010 and 2011, and was further supported by an airborne magnetic survey that identified geological structures across the property. The survey also confirmed that the southwest corner of the property was barren of coal and was an ideal site for a wash plant and other facilities.
The resource is contained in two separate coal seams with the shallowest seam known as the 4 seam, and carries an average combined thickness of 1.46 metres, hosting an in situ Measured Resource of 3.08 million tonnes.
The deeper resource is known as the 2 seam, and carries an average combined thickness of 16.86 metres, hosting an in situ Measured Resource of 60.67 million tonnes, and an additional Inferred Resource carrying a thickness of 15.53 metres for 2.39 million tonnes.
The strip ratio for the shallower coal has been estimated at 1.5-1.6:1 for the first 5-6 years and at 2:1 for deeper coal, and will result in lower extraction costs.
Early washability tests confirmed that 100 tonnes of coal processed through a wash plant will produce 60.71 tonnes of 26.0Mj quality coal that provides 30.24 tonnes of export quality thermal coal and 30.47 tonnes of domestic quality coal suitable for local electricity production. More recent laboratory trials have refined this to produce a combined yield of 65.96 tonnes, and will add approximately 1 million tonnes of coal production over the life of the mine at no extra production cost.
The company has established a production target of 3 million tonnes per year that produces 1 million tonnes of 20MJ/kg thermal coal that can be produced at an operating cost of US$16 tonne, and sold to local power plants operated by Eskom at US$25 tonne.
Local thermal coal prices are extremely low and are under pressure from producers who are selling into export markets to obtain better pricing.
Xceed expects to produce 680,000 tonnes of high quality 26.5MJ/kg export coal at an operating cost of US$47 per tonne. This coal can be sold at US$77 per tonne at the mine gate to third parties with contracts at the nearby Richards Bay coal export facility.
The company is planning to develop Moabsvelden to produce 1.68 million tonnes of coal for sale into local and export markets on an annual basis. The project has potential to generate an annualized EBITDA of A$28 million, and provide an after tax profit of $18 million, based on current market pricing for thermal coal.
Xceed recently delivered a 43.8 million tonne initial Reserve for Moabsvelden which will support an increased mine life. Following the establishment of Measured Resources, as well as the recent completion of a mining work program by mining consultants Belton Mining Group, Xceed has released Proved and Probable reserves of 30.7 million tonnes and 13.1 million tonnes respectively.
Moabsvelden is expected to have a mine life of fifteen years (with potential to add to this), and will be a low cost open pit operation utilising modular and simple process plant.
Xceed is confident that it will be able to extend the mine life by potentially going underground. The company will undertake further studies to investigate potential underground mining in areas on the project site where easement and environmental considerations constrain open cast mining.
Targeted markets for coal production include Eskom power plants at Kendal and Kreil, local industrial power producers, steel mills for metallurgical coal, cement manufacturers, general industry, manufacturers, and export of higher quality thermal to Indian power companies.
Competitive advantages include closeness to markets, acceptable calorific values, excellent volatiles, low ash and acceptable sulphur. The project is located within 50 kilometres of South Africa’s major coal fired power stations and is adjacent to lucrative inland markets based around Johannesburg.
The project is located between several existing mining operations, and is not within a sensitive water catchment area, so directors do not anticipate any major obstacles to the granting of approvals to mine the resource.
The company has retained independent mining consultants who have lodged an application for a Mining Right, and are preparing a Social and Labour Plan, collecting data for an Environmental Impact Assessment and preparing an Environmental Management Plan along with an application for an Integrated Water Usage Licence.
A detailed Feasibility Study is expected to be completed in March of this year so that funding arrangements can be completed, and plant construction commenced in the March quarter of 2013, with commissioning of the plant scheduled for the September quarter of 2013.
Capital costs for mine development fall into the A$25 – A$35 million range for a 3 million tonne per annum 2 stage wash plant, along with all supporting infrastructure. Xceed may develop Moabsvelden via a 60/40 equity raise and secured debt funding package.
Various other options for funding Moabsvelden include 100% development funding by off-take partners, forming a BOOT or partnership with several funding partners who develop the project in return for a share of the financial returns, or possibly establish a lower cost mining operation that will sell Run of Mine coal to a local operator.
Roodeport Coal Project
Xceed has acquired a 70% interest in Roodeport on a Run of Mine per tonne basis. The project is adjacent to the Universal Coal (ASX: UNV) Roodekop thermal coal project hosting 84 million tonnes, and Exxaro Resources’ (JSE: EXX) New Clyesdale colliery located in the centre of Witbank coal field.
Roodeport covers 1,120 hectares and contains historic drilling that has identified near surface coal seams over half the property, and includes 5.6 metres on the #4 seam at a depth of 12.0 metres, and 6.65 metres on the #2 seam at a depth of 25 metres.
Drilling will commence shortly now that regulatory approval has been received.
Bankfontein and Vogelfontein coal projects
Bankfontein and Vogelfontein are two closely located properties in the Ermelo coal field, which is an eastern extension of Witbank and contains higher quality underground coal.
The two properties cover a total of 2,000 hectares and are surrounded by several operating and historical mines that are 35 kilometres from the main Richards Bay coal line hub.
Xceed has signed binding agreements to acquire a 70% interest in Bankfontein on a Run of Mine per tonne basis. The 22 historic drill holes on the property confirm the presence of all five of the Ermelo coal seams and of high quality coal in various holes. Like Roodepoort, all substantive conditions for the acquisition of Bankfontein have now been satisfied and Xceed will commence resource definition drilling of this project in the current quarter.
Some of this coal has start up potential for access via an open pit and includes 0.6 metres of the D seam from a depth of 10.9 metres, containing a raw coal CV of 28.78 and ash of 12.6%. The CL seam was intersected over 0.76 metres at a depth of 29.3 metres, containing a washed coal CV of 30.83, ash of 12.1% and a yield of 92.6%.
Xceed can acquire a 74% interest in Vogelfontein on a Run of Mine per tonne basis, subject to due diligence and regulatory approval. This is a large property that is connected by rail to the Richards Bay terminal and is located in the world class Highveld-Ermelo coalfield that is adjacent to Xstrata’s Spitzkop colliery.
Historic drilling confirms the presence of high value coal seams on the property.
Analysis
Based on recent coal sector M&A transactions and current valuations of South African listed coal explorers, Xceed’s current valuation looks light and that even an exit strategy for Xceed would value it between $0.20 - $0.25 per share.
Catalysts such as receipt of mining permits, off-take agreement and funding in planned timeframe could kick this valuation significantly higher.
On an EV/tonne coal resource, Xceed is valued well below its coal sector peers.
Xceed could carry a similar valuation in 2012 as Moabsvelden develops into an operating mine and the portfolio produces a build up of resources for production, or acquires more low cost projects.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24838/xceed-resources-cash-backed-and-developing-coal-production-and-cash-flows-from-moabsvelden-24838.html
Production is planned at a rate of 3 million tonnes per year to produce 1 million tonnes of domestic thermal coal, and 680,000 tonnes of export quality coal. Two additional coal projects are also under development within the same coal region.
The company is currently valued at very close to cash backing of $9.5 million, and the market assigns minimal value to its significant as well as advanced coal assets.
Share Price: $0.13
Issued Shares: 90.5m
Market Cap: $11.7m
Cash: $9.5m
Debt: Nil
On a fully diluted basis and after accounting for performance shares the number of issued shares becomes 140.5 million, and the adjusted market capitalisation would be $16.1 million.
Analysis
Catalysts such as receipt of mining permits, off-take agreement and funding could kick this valuation higher.
On an EV/tonne coal resource, Xceed is valued well below its coal sector peers.
Xceed could carry a similar valuation in 2012 as Moabsvelden develops into an operating mine and the portfolio produces a build up of resources for production, or acquires more low cost projects.
Background
The thermal coal market provides a very attractive entry point for a lightly capitalised company, and South African thermal coal assets can be acquired at very reasonable valuations. Long term demand for thermal coal in local and global markets is forecast to be robust.
South Africa is ranked amongst the top five countries as a coal producer and consumer of coal, and relies heavily on thermal coal for production of electricity. The country is also taking advantage of its proximity to Asian markets and is becoming an important player in the fastest growing seaborne thermal coal market in the world.
The country has good infrastructure, an established mining culture and has evolved its mining legislation to allow junior mining companies to form partnerships with local business entities.
The global consumption of thermal coal is projected to reach 7 billion tonnes by 2030, and is driven by the rapid industrialisation of countries such as China, India, and Brazil.
Thermal coal currently provides the feedstock to produce 39% of global electricity supply, and is expected to play a very significant role over the next twenty years. This is an extremely diverse global market that is not prone to extreme fluctuations in demand that typically affect markets for other commodities.
Management and Shareholding
The company maintains a three man board that is made of professionals who have all been involved with the development, construction and management of mines.
Patrick O’Conner serves as Non-executive Chairman, is Deputy Chairman of Perilya Ltd and until last month was Chairman of the West Australian Water Corp. He was previously Managing Director of Macraes Mining and CEO of Oceana Gold Ltd., and has had considerable experience in mining operations.
Ian Culbert serves as Managing Director, and was the former Managing Director of Tritton Resources Limited and Lafayette Mining Limited. He has 20 years experience in the resources industry and has managed the funding, planning, construction and operation of mines and exploration projects in Australia, Asia and Africa.
Stephen Belben is Finance Director, and was the national partner in charge of Ernst & Young’s Mineral & Energy Industry Group. He has 25 years of experience in the resources industry, and has served in senior executive positions and directorships for public companies with operating mines in Africa and Asia.
The top 20 shareholders hold 42.8 million shares, or 47.3% of the issued shares of the Company. The Directors and vendors of the 74% interest in the Moabsvelden Coal Project retain a significant equity interest.
The consideration for the acquisition of this interest included the issuance of 25 million ordinary shares. An additional 25 million Class A performance shares will now also convert into 25 million ordinary shares as a JORC compliant reserve has been delineated on the Moabsvelden Project prior to 5 April 2012.
A further 25 million Class B performance shares will convert to 25 million ordinary shares upon a New Order Mining Right being granted in relation to the Moabsvelden Project by 5 April 2014. If the milestone is not achieved by that date all Class B performance shares convert into 1 ordinary share.
Funding
Xceed Resources completed a 1:10 consolidation of its share capital, changed its name from Xceed Capital, and raised cash of $9 million from the issue of 45 million shares at $0.20 each. The Company re-listed on the ASX in mid April of 2011, after the funding was completed and management team was restructured.
Cash held at the end of the September quarter amounted to $10.04 million. Exploration expenses for the December quarter were projected at $1.2 million, and administration expenses were $350,000, for a total of $1.55 million.
Moabsvelden Coal Project
The company retains a 74% interest in the advanced stage Moabsvelden coal project which is located within South Africa’s key coal region of Witbank.
Xceed acquired the Moabsvelden thermal coal project because it is relatively easy to develop, and is within the Witbank/Ermelo/Highveld coalfield complex that supplies 80% of South Africa’s coal.
The coalfield has excellent road and rail infrastructure, and is surrounded by many thermal power stations that generate electricity, and is also 80 kilometres from the main Johannesburg industrial belt.
The project is surrounded by metallurgical and thermal coal mines at Leeuwpan, Stuart Coal, Vanggatfontein, and Rietkuil, where each project outputs an average of 3 million tonnes of coal per year. New mines are under construction at Vlakvarkfontein, Kangala and Brakfontein.
The market value of Xceed’s share in the project was valued by Venmyn and applied to the previously defined 55 million tonnes of Indicated thermal coal resources.
Venmyn who are leading specialists in the valuation of South African mining projects valued Moabsvelden at $18 million or $0.20 per share.
This valuation preceded the recent round of drilling that upgraded the in situ Indicated Resource to a JORC compliant Measured Resource and paves the road to funding, development, and production in 2013.
Since that assessment was completed the company undertook a drilling and development program that increased the size of the coal resource to a JORC compliant 66.14 million gross in situ tonnes, with 96% of that tonnage now classified as Measured Resources. No further exploration drilling will be required on the property.
Gemecs completed the independent resource estimate based on 39 diamond drill holes that were completed by Xceed in 2010 and 2011, and was further supported by an airborne magnetic survey that identified geological structures across the property. The survey also confirmed that the southwest corner of the property was barren of coal and was an ideal site for a wash plant and other facilities.
The resource is contained in two separate coal seams with the shallowest seam known as the 4 seam, and carries an average combined thickness of 1.46 metres, hosting an in situ Measured Resource of 3.08 million tonnes.
The deeper resource is known as the 2 seam, and carries an average combined thickness of 16.86 metres, hosting an in situ Measured Resource of 60.67 million tonnes, and an additional Inferred Resource carrying a thickness of 15.53 metres for 2.39 million tonnes.
The strip ratio for the shallower coal has been estimated at 1.5-1.6:1 for the first 5-6 years and at 2:1 for deeper coal, and will result in lower extraction costs.
Early washability tests confirmed that 100 tonnes of coal processed through a wash plant will produce 60.71 tonnes of 26.0Mj quality coal that provides 30.24 tonnes of export quality thermal coal and 30.47 tonnes of domestic quality coal suitable for local electricity production. More recent laboratory trials have refined this to produce a combined yield of 65.96 tonnes, and will add approximately 1 million tonnes of coal production over the life of the mine at no extra production cost.
The company has established a production target of 3 million tonnes per year that produces 1 million tonnes of 20MJ/kg thermal coal that can be produced at an operating cost of US$16 tonne, and sold to local power plants operated by Eskom at US$25 tonne.
Local thermal coal prices are extremely low and are under pressure from producers who are selling into export markets to obtain better pricing.
Xceed expects to produce 680,000 tonnes of high quality 26.5MJ/kg export coal at an operating cost of US$47 per tonne. This coal can be sold at US$77 per tonne at the mine gate to third parties with contracts at the nearby Richards Bay coal export facility.
The company is planning to develop Moabsvelden to produce 1.68 million tonnes of coal for sale into local and export markets on an annual basis. The project has potential to generate an annualized EBITDA of A$28 million, and provide an after tax profit of $18 million, based on current market pricing for thermal coal.
Xceed recently delivered a 43.8 million tonne initial Reserve for Moabsvelden which will support an increased mine life. Following the establishment of Measured Resources, as well as the recent completion of a mining work program by mining consultants Belton Mining Group, Xceed has released Proved and Probable reserves of 30.7 million tonnes and 13.1 million tonnes respectively.
Moabsvelden is expected to have a mine life of fifteen years (with potential to add to this), and will be a low cost open pit operation utilising modular and simple process plant.
Xceed is confident that it will be able to extend the mine life by potentially going underground. The company will undertake further studies to investigate potential underground mining in areas on the project site where easement and environmental considerations constrain open cast mining.
Targeted markets for coal production include Eskom power plants at Kendal and Kreil, local industrial power producers, steel mills for metallurgical coal, cement manufacturers, general industry, manufacturers, and export of higher quality thermal to Indian power companies.
Competitive advantages include closeness to markets, acceptable calorific values, excellent volatiles, low ash and acceptable sulphur. The project is located within 50 kilometres of South Africa’s major coal fired power stations and is adjacent to lucrative inland markets based around Johannesburg.
The project is located between several existing mining operations, and is not within a sensitive water catchment area, so directors do not anticipate any major obstacles to the granting of approvals to mine the resource.
The company has retained independent mining consultants who have lodged an application for a Mining Right, and are preparing a Social and Labour Plan, collecting data for an Environmental Impact Assessment and preparing an Environmental Management Plan along with an application for an Integrated Water Usage Licence.
A detailed Feasibility Study is expected to be completed in March of this year so that funding arrangements can be completed, and plant construction commenced in the March quarter of 2013, with commissioning of the plant scheduled for the September quarter of 2013.
Capital costs for mine development fall into the A$25 – A$35 million range for a 3 million tonne per annum 2 stage wash plant, along with all supporting infrastructure. Xceed may develop Moabsvelden via a 60/40 equity raise and secured debt funding package.
Various other options for funding Moabsvelden include 100% development funding by off-take partners, forming a BOOT or partnership with several funding partners who develop the project in return for a share of the financial returns, or possibly establish a lower cost mining operation that will sell Run of Mine coal to a local operator.
Roodeport Coal Project
Xceed has acquired a 70% interest in Roodeport on a Run of Mine per tonne basis. The project is adjacent to the Universal Coal (ASX: UNV) Roodekop thermal coal project hosting 84 million tonnes, and Exxaro Resources’ (JSE: EXX) New Clyesdale colliery located in the centre of Witbank coal field.
Roodeport covers 1,120 hectares and contains historic drilling that has identified near surface coal seams over half the property, and includes 5.6 metres on the #4 seam at a depth of 12.0 metres, and 6.65 metres on the #2 seam at a depth of 25 metres.
Drilling will commence shortly now that regulatory approval has been received.
Bankfontein and Vogelfontein coal projects
Bankfontein and Vogelfontein are two closely located properties in the Ermelo coal field, which is an eastern extension of Witbank and contains higher quality underground coal.
The two properties cover a total of 2,000 hectares and are surrounded by several operating and historical mines that are 35 kilometres from the main Richards Bay coal line hub.
Xceed has signed binding agreements to acquire a 70% interest in Bankfontein on a Run of Mine per tonne basis. The 22 historic drill holes on the property confirm the presence of all five of the Ermelo coal seams and of high quality coal in various holes. Like Roodepoort, all substantive conditions for the acquisition of Bankfontein have now been satisfied and Xceed will commence resource definition drilling of this project in the current quarter.
Some of this coal has start up potential for access via an open pit and includes 0.6 metres of the D seam from a depth of 10.9 metres, containing a raw coal CV of 28.78 and ash of 12.6%. The CL seam was intersected over 0.76 metres at a depth of 29.3 metres, containing a washed coal CV of 30.83, ash of 12.1% and a yield of 92.6%.
Xceed can acquire a 74% interest in Vogelfontein on a Run of Mine per tonne basis, subject to due diligence and regulatory approval. This is a large property that is connected by rail to the Richards Bay terminal and is located in the world class Highveld-Ermelo coalfield that is adjacent to Xstrata’s Spitzkop colliery.
Historic drilling confirms the presence of high value coal seams on the property.
Analysis
Based on recent coal sector M&A transactions and current valuations of South African listed coal explorers, Xceed’s current valuation looks light and that even an exit strategy for Xceed would value it between $0.20 - $0.25 per share.
Catalysts such as receipt of mining permits, off-take agreement and funding in planned timeframe could kick this valuation significantly higher.
On an EV/tonne coal resource, Xceed is valued well below its coal sector peers.
Xceed could carry a similar valuation in 2012 as Moabsvelden develops into an operating mine and the portfolio produces a build up of resources for production, or acquires more low cost projects.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24838/xceed-resources-cash-backed-and-developing-coal-production-and-cash-flows-from-moabsvelden-24838.html
Oro Verde on the exploration trail of gold and copper in Chile, commences trading today
Ore Verde (ASX: OVL), formerly Ezenet, will again hit the ASX boards this morning at 10am (AEDT) marking its change of strategy.
In late November the company was granted a voluntary suspension by the ASX, pending the outcome of a resolution at the company's general meeting to approve a change of activities.
Oro Verde recently raised around A$2.4 million to assist in the development of its Chilean projects, including Chuminga which has an exploration target of 50 to 60 million tonnes of between 1% and 1.1% copper, 0.3 to 0.4 grams per tonne gold and 0.5 to 1% zinc, suitable for bulk mining.
The potential of Chuminga was first identified by Rio Tinto Zinc Mining and Exploration and AUR Resources (now part of Teck Cominco), with the project well positioned in the coastal area of northern Chile, 60 kilometres north of the regional mining town of Taltal and 115 kilometres south of the port of Antofagasta.
The region has excellent infrastructure and most importantly hosts several world class copper mines such as Mantos Blancos, Chuquicamata and BHP Billiton’s (ASX: BHP) Escondida.
In December Oro Verde began drilling on the highly prospective and advanced project, which previously assayed 190 metres at 1.07% copper and 0.20 grams per tonne (g/t) gold from trenching.
Importantly, the copper and gold results are similar to historical results, and thereby confirm the bulk tonnage potential of the breccia mineralisation.
Chuminga and Vega Acquisitions
Oro Verde has settled the acquisition of a 20% interest in the Chuminga project and a 100% interest in the Vega Project has been finalised.
Vega is strategically located in Chile's prolific El Indio Gold Belt. An independent report has found that the Vega Gold Silver Project could consist of a high grade epithermal gold-silver mineralised body similar to the “bonanza type” ore body mined at the El Indio mining centre, 20 kilometres south of Vega.
Progress at Chilean Projects
At the Chuminga project, Oro Verde has completed the access road to the drilling site and has constructed drilling pads to enable drilling to begin shortly.
Utilising a drilling rig provided by the Errazuriz Hochschild Mining Group, the company will undertake a first phase 10-hole/1,950 metre diamond drilling program at the project.
Meanwhile, drilling at the Vega Gold Project is scheduled to begin early this month where an 8-hole/2,350 metre drilling program will test identified CSMAT geophysical drill targets in part coincident with anomalous lithogeochemistry, alteration and structure.
Re-Listed Oro Verde
Upon its commencement of trading this morning, Oro Verde will have around 69.3 million shares on issue.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24835/oro-verde-on-the-exploration-trail-of-gold-and-copper-in-chile-commences-trading-today-24835.html
In late November the company was granted a voluntary suspension by the ASX, pending the outcome of a resolution at the company's general meeting to approve a change of activities.
Oro Verde recently raised around A$2.4 million to assist in the development of its Chilean projects, including Chuminga which has an exploration target of 50 to 60 million tonnes of between 1% and 1.1% copper, 0.3 to 0.4 grams per tonne gold and 0.5 to 1% zinc, suitable for bulk mining.
The potential of Chuminga was first identified by Rio Tinto Zinc Mining and Exploration and AUR Resources (now part of Teck Cominco), with the project well positioned in the coastal area of northern Chile, 60 kilometres north of the regional mining town of Taltal and 115 kilometres south of the port of Antofagasta.
The region has excellent infrastructure and most importantly hosts several world class copper mines such as Mantos Blancos, Chuquicamata and BHP Billiton’s (ASX: BHP) Escondida.
In December Oro Verde began drilling on the highly prospective and advanced project, which previously assayed 190 metres at 1.07% copper and 0.20 grams per tonne (g/t) gold from trenching.
Importantly, the copper and gold results are similar to historical results, and thereby confirm the bulk tonnage potential of the breccia mineralisation.
Chuminga and Vega Acquisitions
Oro Verde has settled the acquisition of a 20% interest in the Chuminga project and a 100% interest in the Vega Project has been finalised.
Vega is strategically located in Chile's prolific El Indio Gold Belt. An independent report has found that the Vega Gold Silver Project could consist of a high grade epithermal gold-silver mineralised body similar to the “bonanza type” ore body mined at the El Indio mining centre, 20 kilometres south of Vega.
Progress at Chilean Projects
At the Chuminga project, Oro Verde has completed the access road to the drilling site and has constructed drilling pads to enable drilling to begin shortly.
Utilising a drilling rig provided by the Errazuriz Hochschild Mining Group, the company will undertake a first phase 10-hole/1,950 metre diamond drilling program at the project.
Meanwhile, drilling at the Vega Gold Project is scheduled to begin early this month where an 8-hole/2,350 metre drilling program will test identified CSMAT geophysical drill targets in part coincident with anomalous lithogeochemistry, alteration and structure.
Re-Listed Oro Verde
Upon its commencement of trading this morning, Oro Verde will have around 69.3 million shares on issue.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24835/oro-verde-on-the-exploration-trail-of-gold-and-copper-in-chile-commences-trading-today-24835.html
Wednesday, 1 February 2012
Coppermoly targets maiden Inferred copper gold JORC Resource at Nakru in Papua New Guinea
Coppermoly (ASX: COY) is working towards a maiden Inferred Resource at the Nakru-1 copper-gold system in Papua New Guinea, appointing Golder Associates to review all drillhole data from the project.
The Nakru-1 copper-gold system is the most advanced prospect within the Nakru tenement, with an exploration target of 50-60 million tonnes grading 0.7-0.9% copper.
Golder will also undertake a review of all drillhole data at the Simuku copper-molybdenum system to upgrade the Resource.
Both the Simuku and Nakru-1 projects are located on New Britain Island in Papua New Guinea, within four hourse drive from the provincial capital of Kimbe, which has a deep water port.
Simuku hosts an Inferred Resource of 200 million tonnes at 0.47% copper equivalent, based on a 0.3% cut off grade, including an Inferred Resource of 80 million tonnes grading 0.6% copper equivalent using a 0.5% cut off grade.
Since the Resource was defined in 2009, a further 4227 metres of diamond drilling has been completed.
Assays from drilling at Simuku in 2011 returned a substantial intersection of 1,001.9 metres at 0.24% copper, 60 parts per million molybdenum and 2.38 grams per tonne (g/t) silver at the Tobarum Prospect.
Significantly, the mineralisation extends to more than 500 metres below the existing Inferred Resource of 200 million tonnes at 0.47% copper equivalent and opens up large areas for additional mineralised targets.
Results from the reviews are expected in April.
Barrick New Britain partnership
In January, Coppermoly announced the formation of a joint venture with Barrick Gold Corporation (NYSE: ABX, TSE: ABX) for the Simuku, Nakru and Talelumas tenements on New Britain Island.
Barrick Gold has earned a 72% stake in the three tenements after meeting the $20 million expenditure commitment under the farm in agreement.
The joint venture will be formalised in the coming months. Coppermoly will retain a 28% interest in the tenements.
The company’s cash contribution up to the completion of a Feasibility Study will be delayed until the commencement of production, and will be repaid from Coppermoly’s share of any future production revenue.
“From Coppermoly’s perspective we can now continue to watch the projects being advanced without needing to contribute any cash until the completion of a feasibility study,” Swiridiuk told Proactive Investors.
Other operations
In addition to the joint venture tenements, Coppermoly has applied for a further three tenements on New Britain Island, which Swiridiuk said were significantly larger than the existing tenements.
“We’ve got three other applications that are ten times larger than those under the agreement with Barrick, we’re going through the process of getting them granted.”
In the meantime, the company plans to start drilling at its Queensland projects in the hopes of identifying another potential joint venture opportunity.
“Similar to the projects we have in Papua New Guinea, they’re gold-copper projects close to infrastructure, so they’re only a four hour drive from Brisbane.
“What we want to do is a 3,000 metre drilling program to determine if there’s any size potential to these copper gold systems, and then if there is we can take them into a joint venture as well.”
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24799/coppermoly-targets-maiden-inferred-copper-gold-jorc-resource-at-nakru-in-papua-new-guinea-24799.html
The Nakru-1 copper-gold system is the most advanced prospect within the Nakru tenement, with an exploration target of 50-60 million tonnes grading 0.7-0.9% copper.
Golder will also undertake a review of all drillhole data at the Simuku copper-molybdenum system to upgrade the Resource.
Both the Simuku and Nakru-1 projects are located on New Britain Island in Papua New Guinea, within four hourse drive from the provincial capital of Kimbe, which has a deep water port.
Simuku hosts an Inferred Resource of 200 million tonnes at 0.47% copper equivalent, based on a 0.3% cut off grade, including an Inferred Resource of 80 million tonnes grading 0.6% copper equivalent using a 0.5% cut off grade.
Since the Resource was defined in 2009, a further 4227 metres of diamond drilling has been completed.
Assays from drilling at Simuku in 2011 returned a substantial intersection of 1,001.9 metres at 0.24% copper, 60 parts per million molybdenum and 2.38 grams per tonne (g/t) silver at the Tobarum Prospect.
Significantly, the mineralisation extends to more than 500 metres below the existing Inferred Resource of 200 million tonnes at 0.47% copper equivalent and opens up large areas for additional mineralised targets.
Results from the reviews are expected in April.
Barrick New Britain partnership
In January, Coppermoly announced the formation of a joint venture with Barrick Gold Corporation (NYSE: ABX, TSE: ABX) for the Simuku, Nakru and Talelumas tenements on New Britain Island.
Barrick Gold has earned a 72% stake in the three tenements after meeting the $20 million expenditure commitment under the farm in agreement.
The joint venture will be formalised in the coming months. Coppermoly will retain a 28% interest in the tenements.
The company’s cash contribution up to the completion of a Feasibility Study will be delayed until the commencement of production, and will be repaid from Coppermoly’s share of any future production revenue.
“From Coppermoly’s perspective we can now continue to watch the projects being advanced without needing to contribute any cash until the completion of a feasibility study,” Swiridiuk told Proactive Investors.
Other operations
In addition to the joint venture tenements, Coppermoly has applied for a further three tenements on New Britain Island, which Swiridiuk said were significantly larger than the existing tenements.
“We’ve got three other applications that are ten times larger than those under the agreement with Barrick, we’re going through the process of getting them granted.”
In the meantime, the company plans to start drilling at its Queensland projects in the hopes of identifying another potential joint venture opportunity.
“Similar to the projects we have in Papua New Guinea, they’re gold-copper projects close to infrastructure, so they’re only a four hour drive from Brisbane.
“What we want to do is a 3,000 metre drilling program to determine if there’s any size potential to these copper gold systems, and then if there is we can take them into a joint venture as well.”
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24799/coppermoly-targets-maiden-inferred-copper-gold-jorc-resource-at-nakru-in-papua-new-guinea-24799.html
Papillon Resources gold discoveries continue at speed from Fekola in West Africa
Papillon Resources (ASX: PIR) continues to deliver the goods from gold exploration at the Fekola Gold Discovery, as the company moves towards a maiden JORC Resource at the project in around mid-2012.
Results from two more diamond results have been released, with highlights from the first hole including 57 metres at 10.69 grams per tonne (g/t) gold from 177.3 metres; and 16 metres at 2.24g/t gold from 237.3 metres.
A second hole returned 21 metres at 3.58g/t gold from 105.2 metres; 53 metres at 5.07g/t gold from 155.2 metres; and 16 metres at 4.40g/t gold from 212.2 metres.
Fekola is strategically located on the highly prospective Senegalo/Malian Shear Zone, where in excess of 42 million gold ounces have been discovered.
Papillon has an extensive footprint in the area with tenements, either granted or under application, extending over 25 kilometres of strike length on the shear zone.
Other projects in the vicinity include Randgold Resource's (LON: RRS) 11.5 million ounce Loulo project and AngloGold Ashanti's (NYSE: AU) 13.1 million ounce Sadiola project.
Drilling results news flow to continue
The news flow for the company is set to increase in the short term, with results reported to date only about a tenth of the 15,000 metre diamond campaign currently underway.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24791/papillon-resources-gold-discoveries-continue-at-speed-from-fekola-in-west-africa-24791.html
Results from two more diamond results have been released, with highlights from the first hole including 57 metres at 10.69 grams per tonne (g/t) gold from 177.3 metres; and 16 metres at 2.24g/t gold from 237.3 metres.
A second hole returned 21 metres at 3.58g/t gold from 105.2 metres; 53 metres at 5.07g/t gold from 155.2 metres; and 16 metres at 4.40g/t gold from 212.2 metres.
Fekola is strategically located on the highly prospective Senegalo/Malian Shear Zone, where in excess of 42 million gold ounces have been discovered.
Papillon has an extensive footprint in the area with tenements, either granted or under application, extending over 25 kilometres of strike length on the shear zone.
Other projects in the vicinity include Randgold Resource's (LON: RRS) 11.5 million ounce Loulo project and AngloGold Ashanti's (NYSE: AU) 13.1 million ounce Sadiola project.
Drilling results news flow to continue
The news flow for the company is set to increase in the short term, with results reported to date only about a tenth of the 15,000 metre diamond campaign currently underway.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24791/papillon-resources-gold-discoveries-continue-at-speed-from-fekola-in-west-africa-24791.html
African Energy Resources hits 2.5 billion tonnes Indicated coal Resource in Botswana
African Energy Resources' (ASX: AFR) latest resource upgrade provides further potential for a 30 million tonne per annum thermal coal production operation for over 100 years, starting in 2013.
The project now hosts over 2.5 billion tonnes of coal at the project in the Indicated category, after more than 95% of the in-situ resource was classified.
Part of the resource is now targeted to be moved into the higher confidence Measured category in the June 2012 quarter, which will be from Blocks B and C.
Coal product options
Currently the Lower Main Seam accounts for 61% of the total 2,626 million tonne resource, importantly containing coal which is suitable for washing to create an export quality product (up to 5,550 Kcal/kg).
Providing options for African Energy, the Upper Main Seam coal can be washed, or blended with the Lower Main Seam middlings to make a product which is suitable for use as power station fuel. Full Seam raw coal is also suitable as a power station fuel.
The coal occurs in one main seam which averages 14 metres thickness, is close to surface and which is expected to be amenable to low strip-ratio open pit mining.
Milestones on the path to production
The path to production timeline has African Energy focused on completing a Bankable Feasibility study by the end of 2012, along with mining licence approvals and financing
negotiations. The next step will then be the commencement of coal sales from stage one in mid-2013.
The defining factor for Sese is that the entire deposit is amenable to open-cut strip mining, with low risk and low costs, and mining blocks are around 500 metres by 200 metres.
The layout of exploration box-cut for the bulk sample has been designed to be the first access ramp for Stage one coal-mine, which reduces the development timeframe for the project construction.
Markets for Botswana coal
The market for Sese coal includes domestically with existing industrial customers and nearby markets, with this demand set to grow as new customers enter the market as new mines and businesses develop.
There is also a growing regional market in Southern Africa, with the Power Pool facing net regional electricity generating deficit as Eskom exports scale back.
Then there are the export markets where demand remains high, especially in India, with few undeveloped coal provinces capable of meeting this demand.
Analysis
With the latest resource upgrade, AFR is valued on an EV/Resource tonnes well under its peer averages. Recent pull-back in market valuation provides an opportunity for savvy investors to re-load on AFR. Sese is potentially in the vanguard to become the largest coal project in Botswana and also one of lowest unit cost coal projects in Africa, once developed.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24786/african-energy-resources-hits-25-billion-tonnes-indicated-coal-resource-in-botswana-24786.html
The project now hosts over 2.5 billion tonnes of coal at the project in the Indicated category, after more than 95% of the in-situ resource was classified.
Part of the resource is now targeted to be moved into the higher confidence Measured category in the June 2012 quarter, which will be from Blocks B and C.
Coal product options
Currently the Lower Main Seam accounts for 61% of the total 2,626 million tonne resource, importantly containing coal which is suitable for washing to create an export quality product (up to 5,550 Kcal/kg).
Providing options for African Energy, the Upper Main Seam coal can be washed, or blended with the Lower Main Seam middlings to make a product which is suitable for use as power station fuel. Full Seam raw coal is also suitable as a power station fuel.
The coal occurs in one main seam which averages 14 metres thickness, is close to surface and which is expected to be amenable to low strip-ratio open pit mining.
Milestones on the path to production
The path to production timeline has African Energy focused on completing a Bankable Feasibility study by the end of 2012, along with mining licence approvals and financing
negotiations. The next step will then be the commencement of coal sales from stage one in mid-2013.
The defining factor for Sese is that the entire deposit is amenable to open-cut strip mining, with low risk and low costs, and mining blocks are around 500 metres by 200 metres.
The layout of exploration box-cut for the bulk sample has been designed to be the first access ramp for Stage one coal-mine, which reduces the development timeframe for the project construction.
Markets for Botswana coal
The market for Sese coal includes domestically with existing industrial customers and nearby markets, with this demand set to grow as new customers enter the market as new mines and businesses develop.
There is also a growing regional market in Southern Africa, with the Power Pool facing net regional electricity generating deficit as Eskom exports scale back.
Then there are the export markets where demand remains high, especially in India, with few undeveloped coal provinces capable of meeting this demand.
Analysis
With the latest resource upgrade, AFR is valued on an EV/Resource tonnes well under its peer averages. Recent pull-back in market valuation provides an opportunity for savvy investors to re-load on AFR. Sese is potentially in the vanguard to become the largest coal project in Botswana and also one of lowest unit cost coal projects in Africa, once developed.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24786/african-energy-resources-hits-25-billion-tonnes-indicated-coal-resource-in-botswana-24786.html
Peninsula Energy's resource upgrade drilling returns exceptional results at Lance
Peninsula Energy (ASX: PEN) has reported some exceptional uranium intersections from drilling from 20 December 2011 to 31 January 2012 at the Lance Projects in Wyoming.
Peninsular is looking to become a uranium producer in late 2012 to 2013 having completed feasibility and economic studies of its Ross and Lance uranium Projects.
Ross is the most advanced area at the Lance Project, which is an In Situ Recovery (ISR) uranium project.
The drilling strategy adopted by Peninsular is to convert inferred resource to indicated resource as well as undertaking regional exploration that aims to locate the mineralised portions of over 312 linear kilometres of mapped redox boundaries.
The majority of this drilling has been focussed on converting inferred mineralisation to an indicated category in the proposed Kendrick production unit located to the west of the Ross production unit.
It has successfully intersected thick intervals of high grade uranium mineralisation due to targeting the nose of the roll front systems.
Of the 108 holes completed, 61 holes encountered uranium mineralisation (> 100ppm) and 19 holes reported GT values exceeding 0.2.
The best results included an intercept of 15.5 feet at 1,530ppm eU3O8, or 0.153%, including 4 feet at 5,160ppm eU3O8, or 0.516%.
Interestingly enough, this roll front system has yet been fully tested so there could be further high grades to come in this system.
Other drilling highlights included:
- 31 feet at 485ppm eU3O8, including 5.5 feet at 1,620 ppm eU3O8
- 4 feet at 1,965ppm eU3O8 including 2.5 feet at 2,990 ppm eU3O8
- 7.5 feet at 730ppm eU3O8 (GT 0.55) including 3 feet at 1,140 ppm eU3O8
The results show strong widths and grades.
Two drill rigs are continuing to develop the resources along strike and infill the high grade “nose” position of the roll fronts.
This success is expected to lift the overall grade of the resources in this area in an upcoming resource recalculation planned for late March.
Clearly, the regional exploration undertaken by Peninsular is proving very successful in identifying mineralisation in these roll front systems.
Hence drilling will continue to explore areas that have the potential to increase the existing uranium resource inventory.
Comment
The latest results indicate thick intervals and exceptional grades of uranium mineralisation. After a pause in part due to Fukushima and global market conditions, Peninsula is now back on track and full steam ahead as it moves closer to development of the projects which should be reflected in share price appreciation.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24784/peninsula-energys-resource-upgrade-drilling-returns-exceptional-results-at-lance-24784.html
Peninsular is looking to become a uranium producer in late 2012 to 2013 having completed feasibility and economic studies of its Ross and Lance uranium Projects.
Ross is the most advanced area at the Lance Project, which is an In Situ Recovery (ISR) uranium project.
The drilling strategy adopted by Peninsular is to convert inferred resource to indicated resource as well as undertaking regional exploration that aims to locate the mineralised portions of over 312 linear kilometres of mapped redox boundaries.
The majority of this drilling has been focussed on converting inferred mineralisation to an indicated category in the proposed Kendrick production unit located to the west of the Ross production unit.
It has successfully intersected thick intervals of high grade uranium mineralisation due to targeting the nose of the roll front systems.
Of the 108 holes completed, 61 holes encountered uranium mineralisation (> 100ppm) and 19 holes reported GT values exceeding 0.2.
The best results included an intercept of 15.5 feet at 1,530ppm eU3O8, or 0.153%, including 4 feet at 5,160ppm eU3O8, or 0.516%.
Interestingly enough, this roll front system has yet been fully tested so there could be further high grades to come in this system.
Other drilling highlights included:
- 31 feet at 485ppm eU3O8, including 5.5 feet at 1,620 ppm eU3O8
- 4 feet at 1,965ppm eU3O8 including 2.5 feet at 2,990 ppm eU3O8
- 7.5 feet at 730ppm eU3O8 (GT 0.55) including 3 feet at 1,140 ppm eU3O8
The results show strong widths and grades.
Two drill rigs are continuing to develop the resources along strike and infill the high grade “nose” position of the roll fronts.
This success is expected to lift the overall grade of the resources in this area in an upcoming resource recalculation planned for late March.
Clearly, the regional exploration undertaken by Peninsular is proving very successful in identifying mineralisation in these roll front systems.
Hence drilling will continue to explore areas that have the potential to increase the existing uranium resource inventory.
Comment
The latest results indicate thick intervals and exceptional grades of uranium mineralisation. After a pause in part due to Fukushima and global market conditions, Peninsula is now back on track and full steam ahead as it moves closer to development of the projects which should be reflected in share price appreciation.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24784/peninsula-energys-resource-upgrade-drilling-returns-exceptional-results-at-lance-24784.html
Birimian Gold raises $665,000 to continue gold exploration in West Africa's elephant country
Birimian Gold (ASX: BGS) is focused on gold exploration in the highly prospective region of West Africa, and has recently defined some new high priority targets.
To continue this exploration, the company has raised $665,000 by placing 19 million shares at $0.035 to institutional and sophisticated investors in Australia, which includes one free attaching option with an exercise price of $0.06, expiring in February 2014.
Birimian has already outlined where the funds will be allocated, which includes $400,000 for aircore and reverse circulation testing at the Dankassa Gold Project in Mali, where the company recently discovered a 12 kilometre long gold trend - which the company considers could be economic.
Results include the broad 46 metres at 0.48 grams per tonne (g/t) gold from 8 metres, which includes the higher grade zone of 12 metres at 1.00 g/t gold.
Other highlights were; 8 metres at 1.29g/t gold from 16 metres; and 16 metres at 0.56g/t gold from 28 metres.
Birimian Gold believes that there is considerable potential to discover economic thicknesses and grades of primary gold mineralisation along the trend, as the results to date confirms the presence of bedrock gold mineralisation.
Target evaluation in Mali's elephant country
Funds will also be allocated to delineating high quality drill targets at the Korindji Gold Project in Mali, which is strategically wedged between some multi-million gold ounce mines, which include the 13 million gold ounce Sadiola mine and the 4.5 million gold ounce Yatela mine.
Gold hunt in Liberia
Birimian Gold is also now well-funded to progress exploration at the Basawa Gold Project in Liberia, where initial field programs were recently completed, which included a broad spaced reconnaissance soil sampling program .
Importantly, artisanal workers have been active in the region, highlighting the fact there in known gold in the area. Field work will continue through the current dry season focusing on delineating high quality drill targets for testing.
Comment on valuation
The funding injection will give Birimian Gold a total of around $1.3 million in cash. The company also holds a 8.9% shareholding in Aphrodite Gold (ASX: AQQ), which on the current share price is valued at over $600,000.
With a market capitalisation of $5 million, investors are only placing a valuation of around $3 million on the company's highly prospective West African assets, which are located in areas surrounded by multi-million ounce mines.
Some major shareholders have already identified the potential of Birimian Gold, with Macquarie Bank (ASX: MQG) holding a 4.4% stake in the company, with Citicorp Nominees 4.1%.
Directors hold almost a third of all shares, highlighting the very tight register of Birimian Gold.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24782/birimian-gold-raises-665000-to-continue-gold-exploration-in-west-africas-elephant-country-24782.html
To continue this exploration, the company has raised $665,000 by placing 19 million shares at $0.035 to institutional and sophisticated investors in Australia, which includes one free attaching option with an exercise price of $0.06, expiring in February 2014.
Birimian has already outlined where the funds will be allocated, which includes $400,000 for aircore and reverse circulation testing at the Dankassa Gold Project in Mali, where the company recently discovered a 12 kilometre long gold trend - which the company considers could be economic.
Results include the broad 46 metres at 0.48 grams per tonne (g/t) gold from 8 metres, which includes the higher grade zone of 12 metres at 1.00 g/t gold.
Other highlights were; 8 metres at 1.29g/t gold from 16 metres; and 16 metres at 0.56g/t gold from 28 metres.
Birimian Gold believes that there is considerable potential to discover economic thicknesses and grades of primary gold mineralisation along the trend, as the results to date confirms the presence of bedrock gold mineralisation.
Target evaluation in Mali's elephant country
Funds will also be allocated to delineating high quality drill targets at the Korindji Gold Project in Mali, which is strategically wedged between some multi-million gold ounce mines, which include the 13 million gold ounce Sadiola mine and the 4.5 million gold ounce Yatela mine.
Gold hunt in Liberia
Birimian Gold is also now well-funded to progress exploration at the Basawa Gold Project in Liberia, where initial field programs were recently completed, which included a broad spaced reconnaissance soil sampling program .
Importantly, artisanal workers have been active in the region, highlighting the fact there in known gold in the area. Field work will continue through the current dry season focusing on delineating high quality drill targets for testing.
Comment on valuation
The funding injection will give Birimian Gold a total of around $1.3 million in cash. The company also holds a 8.9% shareholding in Aphrodite Gold (ASX: AQQ), which on the current share price is valued at over $600,000.
With a market capitalisation of $5 million, investors are only placing a valuation of around $3 million on the company's highly prospective West African assets, which are located in areas surrounded by multi-million ounce mines.
Some major shareholders have already identified the potential of Birimian Gold, with Macquarie Bank (ASX: MQG) holding a 4.4% stake in the company, with Citicorp Nominees 4.1%.
Directors hold almost a third of all shares, highlighting the very tight register of Birimian Gold.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24782/birimian-gold-raises-665000-to-continue-gold-exploration-in-west-africas-elephant-country-24782.html
Thor Mining raises A$843,183 to push Molyhill tungsten, molybdenum resource forward
Thor Mining (ASX: THR, AIM: THR) have successfully raised A$843,183 (£570,000) through a placement of 57 million shares priced at £0.01 each to clients of Simple Investments to help finance further work at its Molyhil Tungsten and Molybdenum Project project.
Chairman Mick Billing added the funds will also be used for the exploration and evaluation programs in progress for its Dundas and Spring Hill gold projects.
Completion of the placement and receipt of funds is expected to be finalised by 16 February 2012. The placement uses part of Thor’s available 15% capacity under ASX Listing Rule 7.1 and brings the total issued shares in the company up to more than 700.8 million shares.
Molyhil recently had its tonnage increased by 25% to 4.7 million along with an increase in contained tungsten and molybdenum by 10% and 46% to more than 13,100 tonnes and 10,400 tonnes respectively.
The company had said late last month that an updated ore Reserve and mining plan are due this month with results from 12,839 metres of reverse circulation drilling, 1,816 metres of diamond drilling and three underground exploration shafts and cross cuts.
Also due this month are an expected reserve upgrade for Molyhill from mining consultancy Runge Limited as well as updated feasibility study.
Thor will then need to secure offtake agreements and finance for Molyhil before the company will move to tender for design, construct and EPCM work.
Billings had previously told Proactive Investors that Thor could be potentially turning the first sod at Molyhil early in the second half of this year and be in production in the second half of 2013.
In addition, Proteus EPCM Engineers is preparing an optimisation addendum to the previous capital and operating cost estimates to reflect the recently announced process improvements.
These improvements lifted the projected metallurgical recovery of tungsten for Molyhil to 75%, up from the previous estimate of 67%.
Of the tungsten in this stream, 30% should be recoverable at relatively low cost.
Located in the Northern Territory, Thor’s wholly owned Molyhil project comprises two adjacent outcropping iron rich skarn bodies, marginal to a granite intrusion, containing scheelite (tungsten) and molybdenite mineralisation.
The resource area covers 250 metres of strike and has 410 metres of vertical extent.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24788/thor-mining-raises-a843183-to-push-molyhill-tungsten-molybdenum-resource-forward-24788.html
Chairman Mick Billing added the funds will also be used for the exploration and evaluation programs in progress for its Dundas and Spring Hill gold projects.
Completion of the placement and receipt of funds is expected to be finalised by 16 February 2012. The placement uses part of Thor’s available 15% capacity under ASX Listing Rule 7.1 and brings the total issued shares in the company up to more than 700.8 million shares.
Molyhil recently had its tonnage increased by 25% to 4.7 million along with an increase in contained tungsten and molybdenum by 10% and 46% to more than 13,100 tonnes and 10,400 tonnes respectively.
The company had said late last month that an updated ore Reserve and mining plan are due this month with results from 12,839 metres of reverse circulation drilling, 1,816 metres of diamond drilling and three underground exploration shafts and cross cuts.
Also due this month are an expected reserve upgrade for Molyhill from mining consultancy Runge Limited as well as updated feasibility study.
Thor will then need to secure offtake agreements and finance for Molyhil before the company will move to tender for design, construct and EPCM work.
Billings had previously told Proactive Investors that Thor could be potentially turning the first sod at Molyhil early in the second half of this year and be in production in the second half of 2013.
In addition, Proteus EPCM Engineers is preparing an optimisation addendum to the previous capital and operating cost estimates to reflect the recently announced process improvements.
These improvements lifted the projected metallurgical recovery of tungsten for Molyhil to 75%, up from the previous estimate of 67%.
Of the tungsten in this stream, 30% should be recoverable at relatively low cost.
Located in the Northern Territory, Thor’s wholly owned Molyhil project comprises two adjacent outcropping iron rich skarn bodies, marginal to a granite intrusion, containing scheelite (tungsten) and molybdenite mineralisation.
The resource area covers 250 metres of strike and has 410 metres of vertical extent.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24788/thor-mining-raises-a843183-to-push-molyhill-tungsten-molybdenum-resource-forward-24788.html
IMX Resources: new sales agreements signed at higher prices boost Cairn Hill economics
IMX Resources (ASX: IXR) is securing alternative sales agreements for magnetite ore production from the Cairn Hill iron ore and copper mine at better prices than those initially agreed.
Cairn Hill is operated by Termite Resources, which is owned by Outback Iron, a joint venture between IMX (51%) and Taifeng Yuangchuang International Development Co (49%).
Taifeng had previously agreed to purchase part of the magnetite ore production from Cairn Hill.
However, Taifeng recently advised that it was unwilling to pay the Phase 1 Life of Mine sales contract pricing for the 19th ore shipment from the mine, and requested a renegotiation of the terms of the contract.
IMX has advised that joint venture operating entity Termite Resources has signed new magnetite ore sales agreements with alternative customers, within 10% of the pricing under the Taifeng Contact.
These customers will conduct tests into the processing of the Cairn Hill magnetite ore which, if successful, could lead to long-term sales agreements on improved terms to the current shipments.
“The progress with securing alternative customers for the Cairn Hill magnetite ore has exceeded our expectations in both the number of customers and the pricing that we are receiving,” IMX managing director Neil Meadows said.
“We now believe that we will be able to secure long term off take agreements on terms close to those of the Taifeng Contract.”
IMX to fund Cairn Hill
Early this year IMX agreed to sole fund Taifeng’s immediate operating costs for Cairn Hill until the end of January to allow Taifeng to undertake a review of the operations.
Taifeng requested time to consider the impact of recent Termite Resources management reviews of the operation, the generation of a revised work plan and an independent external review of the Cairn Hill mining operations, before approving the recommendations and making further contributions to the business.
This review has not been completed, and IMX says it does not expect Taifeng to contribute its 49% of cash calls to the joint venture company Outback Iron (IMX 51%, Taifeng 49%) until the review is finalised.
As such, IMX will continue to fund the project in the interim by way of secured loans to operator Termite Resources, limited to $20 million, which will cover the short term cash requirements of the project.
“The loan to Termite secured directly against the assets of the Joint Venture increases the certainty that these funds will be recovered,” Meadows said.
Cairn Hill
Last month, IMX announced that it had intersected visible magnetite quartz and magnetite gneiss mineralisation 25 kilometres southeast of Cairn Hill, in South Australia.
All six holes of a reverse circulation drilling program at the Tomohawk target intersected visible wide intervals of mineralisation.
Tomohawk was identified from a 2011 airborne geophysical survey, and is the strongest magnetic anomaly in the area south of Cairn Hill.
Phase 1 of the Cairn Hill project is a unique magnetite iron-copper-gold direct shipping ore operation, producing a premium coarse grained magnetite product with a clean saleable copper-gold concentrate.
IMX has also announced a Phase 2 resource, which the joint venture project group is accelerating to begin production of a saleable iron intermediate concentrate of about 60%.
While the softening of iron ore and copper prices in recent months has seen the pricing of Cairn Hill magnetite copper ore under the Phase 1 Life of Mine sales contract reduce by 25%, operations at the mine site are performing at designed capacity with cash operating costs free on board trending towards the target of A$75 per tonne with opportunities for further improvement already identified.
Importantly, Cairn Hill is located close to the Darwin to Adelaide railway, 55 kilometres southeast of Coober Pedy.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24744/imx-resources-new-sales-agreements-signed-at-higher-prices-boost-cairn-hill-economics-24744.html
Cairn Hill is operated by Termite Resources, which is owned by Outback Iron, a joint venture between IMX (51%) and Taifeng Yuangchuang International Development Co (49%).
Taifeng had previously agreed to purchase part of the magnetite ore production from Cairn Hill.
However, Taifeng recently advised that it was unwilling to pay the Phase 1 Life of Mine sales contract pricing for the 19th ore shipment from the mine, and requested a renegotiation of the terms of the contract.
IMX has advised that joint venture operating entity Termite Resources has signed new magnetite ore sales agreements with alternative customers, within 10% of the pricing under the Taifeng Contact.
These customers will conduct tests into the processing of the Cairn Hill magnetite ore which, if successful, could lead to long-term sales agreements on improved terms to the current shipments.
“The progress with securing alternative customers for the Cairn Hill magnetite ore has exceeded our expectations in both the number of customers and the pricing that we are receiving,” IMX managing director Neil Meadows said.
“We now believe that we will be able to secure long term off take agreements on terms close to those of the Taifeng Contract.”
IMX to fund Cairn Hill
Early this year IMX agreed to sole fund Taifeng’s immediate operating costs for Cairn Hill until the end of January to allow Taifeng to undertake a review of the operations.
Taifeng requested time to consider the impact of recent Termite Resources management reviews of the operation, the generation of a revised work plan and an independent external review of the Cairn Hill mining operations, before approving the recommendations and making further contributions to the business.
This review has not been completed, and IMX says it does not expect Taifeng to contribute its 49% of cash calls to the joint venture company Outback Iron (IMX 51%, Taifeng 49%) until the review is finalised.
As such, IMX will continue to fund the project in the interim by way of secured loans to operator Termite Resources, limited to $20 million, which will cover the short term cash requirements of the project.
“The loan to Termite secured directly against the assets of the Joint Venture increases the certainty that these funds will be recovered,” Meadows said.
Cairn Hill
Last month, IMX announced that it had intersected visible magnetite quartz and magnetite gneiss mineralisation 25 kilometres southeast of Cairn Hill, in South Australia.
All six holes of a reverse circulation drilling program at the Tomohawk target intersected visible wide intervals of mineralisation.
Tomohawk was identified from a 2011 airborne geophysical survey, and is the strongest magnetic anomaly in the area south of Cairn Hill.
Phase 1 of the Cairn Hill project is a unique magnetite iron-copper-gold direct shipping ore operation, producing a premium coarse grained magnetite product with a clean saleable copper-gold concentrate.
IMX has also announced a Phase 2 resource, which the joint venture project group is accelerating to begin production of a saleable iron intermediate concentrate of about 60%.
While the softening of iron ore and copper prices in recent months has seen the pricing of Cairn Hill magnetite copper ore under the Phase 1 Life of Mine sales contract reduce by 25%, operations at the mine site are performing at designed capacity with cash operating costs free on board trending towards the target of A$75 per tonne with opportunities for further improvement already identified.
Importantly, Cairn Hill is located close to the Darwin to Adelaide railway, 55 kilometres southeast of Coober Pedy.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24744/imx-resources-new-sales-agreements-signed-at-higher-prices-boost-cairn-hill-economics-24744.html
IronClad Mining offtake agreement secures half of Wilcherry Hill annual iron ore production
IronClad Mining (ASX: IFE) has secured a significant offtake agreement for iron ore from its Wilcherry Hill project in South Australia.
The four year offtake agreement with Hong Kong-based resources industry investment group New Page Investments is for up to 50% of annual iron ore production from Wilcherry Hill.
In January 2012, New Page took a $6 million share placement in IronClad, to finance start-up works at the Wilcherry Hill site. This equates to a 9.02% interest in IronClad.
This latest offtake agreement follows a similar but separate offtake agreement signed with a Singaporean trading company in 2011.
IronClad executive chairman Ian Finch said the new offtake agreement paved the way for heightened construction activity at the mine.
“Under the terms of the new agreement, New Page Investments must pay IronClad 95% of the agreed value of iron ore leaving via ship from our Lucky Bay port facility, within 30 days of that ship departing,” he said.
“It is another most welcome development for IronClad and its shareholders.”
On track for iron ore production
Wilcherry Hill is on track for maiden production in the March quarter of 2012, with the first shipment of iron ore to be exported to Chinese customers in the June quarter.
The first two years of production from Stage One of mining has been sold to the Chinese steel mills under a comprehensive sales contract and marketing agreement.
The first year of production involves 1 million tonnes per annum of direct shipping ore for export to Asia, increasing up to 2 million tonnes per in the second year.
A Feasibility Study for Stage One of the project established that, with an average iron ore price of $140 per tonne free on board (net of freight charges) into China and initial operating costs of around $85 per tonne, the project would provide IronClad with margins of $50 per tonne and an operating cash flow of around $80 million per year at full production during the first stage.
Stage Two involves an increase in production to 5 million tonnes of iron ore concentrate per annum.
Wilcherry Hill is a joint venture operation between IronClad (80%) and its associated company, Trafford Resources (ASX: TRF) (20%).
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24787/ironclad-mining-offtake-agreement-secures-half-of-wilcherry-hill-annual-iron-ore-production-24787.html
The four year offtake agreement with Hong Kong-based resources industry investment group New Page Investments is for up to 50% of annual iron ore production from Wilcherry Hill.
In January 2012, New Page took a $6 million share placement in IronClad, to finance start-up works at the Wilcherry Hill site. This equates to a 9.02% interest in IronClad.
This latest offtake agreement follows a similar but separate offtake agreement signed with a Singaporean trading company in 2011.
IronClad executive chairman Ian Finch said the new offtake agreement paved the way for heightened construction activity at the mine.
“Under the terms of the new agreement, New Page Investments must pay IronClad 95% of the agreed value of iron ore leaving via ship from our Lucky Bay port facility, within 30 days of that ship departing,” he said.
“It is another most welcome development for IronClad and its shareholders.”
On track for iron ore production
Wilcherry Hill is on track for maiden production in the March quarter of 2012, with the first shipment of iron ore to be exported to Chinese customers in the June quarter.
The first two years of production from Stage One of mining has been sold to the Chinese steel mills under a comprehensive sales contract and marketing agreement.
The first year of production involves 1 million tonnes per annum of direct shipping ore for export to Asia, increasing up to 2 million tonnes per in the second year.
A Feasibility Study for Stage One of the project established that, with an average iron ore price of $140 per tonne free on board (net of freight charges) into China and initial operating costs of around $85 per tonne, the project would provide IronClad with margins of $50 per tonne and an operating cash flow of around $80 million per year at full production during the first stage.
Stage Two involves an increase in production to 5 million tonnes of iron ore concentrate per annum.
Wilcherry Hill is a joint venture operation between IronClad (80%) and its associated company, Trafford Resources (ASX: TRF) (20%).
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24787/ironclad-mining-offtake-agreement-secures-half-of-wilcherry-hill-annual-iron-ore-production-24787.html
Stellar Resources granted halt pending capital raising details
Stellar Resources (ASX: SRZ) has been placed in pre-open after the ASX granted the company a trading halt, pending the release of details on a proposed capital raising.
Stellar has not yet indicated where the potential capital injection will be allocated, but the company recently identified potential economic widths of ore grade tin mineralisation below the presently defined Severn deposit at the Heemskirk project in Tasmania.
These results indicate that there is potential to upgrade the Inferred Resource at Severn with additional drilling.
The Inferred Resource for the Severn deposit currently stands at 2.4 million tonnes grading 0.9% tin for 23,000 tonnes of tin.
This accounts for almost half of the overall Heemskirk Resource, which is 4.36 million tonnes at 1.1% tin for 48,000 tonnes of tin.
The halt will last until the earlier of an announcement being made to the market, or the opening of trade on Monday 6 February.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24785/stellar-resources-granted-halt-pending-capital-raising-details-24785.html
Stellar has not yet indicated where the potential capital injection will be allocated, but the company recently identified potential economic widths of ore grade tin mineralisation below the presently defined Severn deposit at the Heemskirk project in Tasmania.
These results indicate that there is potential to upgrade the Inferred Resource at Severn with additional drilling.
The Inferred Resource for the Severn deposit currently stands at 2.4 million tonnes grading 0.9% tin for 23,000 tonnes of tin.
This accounts for almost half of the overall Heemskirk Resource, which is 4.36 million tonnes at 1.1% tin for 48,000 tonnes of tin.
The halt will last until the earlier of an announcement being made to the market, or the opening of trade on Monday 6 February.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24785/stellar-resources-granted-halt-pending-capital-raising-details-24785.html
Ironbark Zinc intersects gold, base metal mineralisation beyond historical drilling at Peakview
Ironbark Zinc (ASX: IBG) has identified strike length extensions from previous drilling at the company’s Peakview Project in New South Wales, intersecting high grade base and precious metals.
The 2011 drilling program was carried out to follow up on historical drill holes at the Peakview prospect, targeting extensions of high grade intercepts in the northern part of the prospect.
Assays from the recent program include:
- 3.2 metres at 7.5% zinc plus lead and 2.7% copper from 53 metres;
- 5.6 metres at 4.4% zinc plus lead, 0.8% copper and 256 grams per tonne (g/t) silver from 48.7 metres, including 1.2 metres at 7.4% zinc plus lead, 1.9% copper and 880g/t silver; and
- 1 metre at 25.8% zinc plus lead, 1% copper and 119g/t silver from 152.5 metres.
Mineralisation remains open along strike to the north and south, covering more than 1.3 kilometres, and down dip.
The southern portion of the prospect has not been sufficiently drilled to constrain the mineralisation.
Ironbark believes further drilling is justified to test the prospective horizon and soil anomalies in the south.
Managing director Jonathan Downes said the results highlighted the economic potential of the Peakview Project.
“The results show a very extensive initial strike of mineralisation that now extends for at least 1.3 kilometres and remains open at depth,” he said.
“We still consider this early days and we will be planning further work in the near future. Some of the grades are exceptional and highlight some potentially significant precious metal credits with single assays of silver exceeding 880 grams per tonne.”
The Peakview project
Historical drilling at Peakview, drilled by Western Mining between 1979 and 1980, returned results of:
- 2.1 metres at 17.3% zinc plus lead, 1.9% copper and 103g/t silver from 31.95 metres;
- 2.25 metres at 6% zinc plus lead, 3.6% copper and 56g/t silver from 90.95 metres; and
- 0.8 metres at 11.6% zinc plus lead, 0.7% copper and 269g/t silver from 164.75 metres.
The project is located 50 kilometres south of the historical Lake George Mine at Captains Flat, which produced 26.7 tonnes of silver, 16,100 ounces of gold and 3,841 tonnes of copper from 114,560 tonnes of ore between 1882 and 1899.
Lake George was reopened in 1937, producing a further 406,418 tonnes of zinc, 243,851 tonnes of lead, 27,230 tonnes of copper, 7.4 million ounces of silver and 220,000 ounces of gold from more than 4 million tonnes of ore until its closure in 1962.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24783/ironbark-zinc-intersects-gold-base-metal-mineralisation-beyond-historical-drilling-at-peakview-24783.html
The 2011 drilling program was carried out to follow up on historical drill holes at the Peakview prospect, targeting extensions of high grade intercepts in the northern part of the prospect.
Assays from the recent program include:
- 3.2 metres at 7.5% zinc plus lead and 2.7% copper from 53 metres;
- 5.6 metres at 4.4% zinc plus lead, 0.8% copper and 256 grams per tonne (g/t) silver from 48.7 metres, including 1.2 metres at 7.4% zinc plus lead, 1.9% copper and 880g/t silver; and
- 1 metre at 25.8% zinc plus lead, 1% copper and 119g/t silver from 152.5 metres.
Mineralisation remains open along strike to the north and south, covering more than 1.3 kilometres, and down dip.
The southern portion of the prospect has not been sufficiently drilled to constrain the mineralisation.
Ironbark believes further drilling is justified to test the prospective horizon and soil anomalies in the south.
Managing director Jonathan Downes said the results highlighted the economic potential of the Peakview Project.
“The results show a very extensive initial strike of mineralisation that now extends for at least 1.3 kilometres and remains open at depth,” he said.
“We still consider this early days and we will be planning further work in the near future. Some of the grades are exceptional and highlight some potentially significant precious metal credits with single assays of silver exceeding 880 grams per tonne.”
The Peakview project
Historical drilling at Peakview, drilled by Western Mining between 1979 and 1980, returned results of:
- 2.1 metres at 17.3% zinc plus lead, 1.9% copper and 103g/t silver from 31.95 metres;
- 2.25 metres at 6% zinc plus lead, 3.6% copper and 56g/t silver from 90.95 metres; and
- 0.8 metres at 11.6% zinc plus lead, 0.7% copper and 269g/t silver from 164.75 metres.
The project is located 50 kilometres south of the historical Lake George Mine at Captains Flat, which produced 26.7 tonnes of silver, 16,100 ounces of gold and 3,841 tonnes of copper from 114,560 tonnes of ore between 1882 and 1899.
Lake George was reopened in 1937, producing a further 406,418 tonnes of zinc, 243,851 tonnes of lead, 27,230 tonnes of copper, 7.4 million ounces of silver and 220,000 ounces of gold from more than 4 million tonnes of ore until its closure in 1962.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24783/ironbark-zinc-intersects-gold-base-metal-mineralisation-beyond-historical-drilling-at-peakview-24783.html
Predictive Discovery ups its equity stake in Burkina Faso gold permits to 72.1%
Predictive Discovery (ASX: PDI) has increased its interest in the four joint venture permits within its Bonsiega Gold Project in Burkina Faso to 72.1%.
The company elected to increase its interest after joint venture partner Eldore Mining Corporation (ASX: EDM) did not contribute to the $1.4 million exploration expenditure on the permits.
“Given the very encouraging reverse circulation drilling results obtained to date on the Dave Prospect, and the scale of additional bedrock gold anomalism on the Laterite Hill Grid, we believe that the joint venture area holds strong potential for the discovery of a large gold deposit,” Predictive Discovery managing director Paul Roberts said.
The permits cover a number of promising prospects, including the highly prospective Laterite Hill Grid where more than 16 kilometres of strong bedrock gold anomalies has been identified.
Reconnaissance reverse circulation drilling over a 2 kilometre strike length at Laterite Hill has encountered numerous intercepts of shallow gold mineralisation at the Dave and Dave East Prospects.
Strong intersections include 26 metres at 2.7 grams per tonne (g/t) gold from 22 metres, 46 metres at 1.4g/t from 16 metres and 14 metres at 3.7g/t from 66 metres.
Predictive plans to continue its drilling program to extend the known areas of gold mineralisation.
In November last year Predictive began an extensive exploration program of up to 18,000 metres of reverse circulation drilling, 5000 metres of diamond drilling and 30,000 metres of power auger drilling to follow-up previous high grade gold intersections at the Bonsiega and Bangaba Projects.
Drilling at the Laterite Hill Grid will target more than 14 kilometres of untested bedrock gold anomalies where Predictive previously intersected some broad mineralisation at the Dave and Dave East Prospects.
The goal of the campaign will be to define a maiden gold resource by the September quarter of 2012.
Eldore Joint Venture Agreement
Predictive signed a Heads of Agreement covering Eldore Mining Corporation’s four exploration permits in Burkina Faso in January 2010.
Under the agreement, the company was able to earn a 60% interest in the permits by spending A$2 million by June 2012.
Predictive achieved the 60% earn‐in in late August although the $2 million expenditure had been completed earlier.
By the end of November 2011, the company’s cumulative expenditure on the permits had risen to over $3.4 million, resulting in cash calls to Eldore Mining Corporation totalling $635,386.
As a result of Eldore Mining Corporation not contributing to the $1.4 million in joint venture spending after Predictive achieved its 60% earn-in, its interest reduced to 27.9%.
Well Funded
Predictive is sufficiently funded to continue its aggressive exploration campaign on the Bonsiega and Bangaba Projects with $6.3 million cash in the bank at the end of the December quarter.
The company raised an additional $5.2 million in August/September last year and, importantly, Predictive has no debt.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24743/predictive-discovery-ups-its-equity-stake-in-burkina-faso-gold-permits-to-721-24743.html
The company elected to increase its interest after joint venture partner Eldore Mining Corporation (ASX: EDM) did not contribute to the $1.4 million exploration expenditure on the permits.
“Given the very encouraging reverse circulation drilling results obtained to date on the Dave Prospect, and the scale of additional bedrock gold anomalism on the Laterite Hill Grid, we believe that the joint venture area holds strong potential for the discovery of a large gold deposit,” Predictive Discovery managing director Paul Roberts said.
The permits cover a number of promising prospects, including the highly prospective Laterite Hill Grid where more than 16 kilometres of strong bedrock gold anomalies has been identified.
Reconnaissance reverse circulation drilling over a 2 kilometre strike length at Laterite Hill has encountered numerous intercepts of shallow gold mineralisation at the Dave and Dave East Prospects.
Strong intersections include 26 metres at 2.7 grams per tonne (g/t) gold from 22 metres, 46 metres at 1.4g/t from 16 metres and 14 metres at 3.7g/t from 66 metres.
Predictive plans to continue its drilling program to extend the known areas of gold mineralisation.
In November last year Predictive began an extensive exploration program of up to 18,000 metres of reverse circulation drilling, 5000 metres of diamond drilling and 30,000 metres of power auger drilling to follow-up previous high grade gold intersections at the Bonsiega and Bangaba Projects.
Drilling at the Laterite Hill Grid will target more than 14 kilometres of untested bedrock gold anomalies where Predictive previously intersected some broad mineralisation at the Dave and Dave East Prospects.
The goal of the campaign will be to define a maiden gold resource by the September quarter of 2012.
Eldore Joint Venture Agreement
Predictive signed a Heads of Agreement covering Eldore Mining Corporation’s four exploration permits in Burkina Faso in January 2010.
Under the agreement, the company was able to earn a 60% interest in the permits by spending A$2 million by June 2012.
Predictive achieved the 60% earn‐in in late August although the $2 million expenditure had been completed earlier.
By the end of November 2011, the company’s cumulative expenditure on the permits had risen to over $3.4 million, resulting in cash calls to Eldore Mining Corporation totalling $635,386.
As a result of Eldore Mining Corporation not contributing to the $1.4 million in joint venture spending after Predictive achieved its 60% earn-in, its interest reduced to 27.9%.
Well Funded
Predictive is sufficiently funded to continue its aggressive exploration campaign on the Bonsiega and Bangaba Projects with $6.3 million cash in the bank at the end of the December quarter.
The company raised an additional $5.2 million in August/September last year and, importantly, Predictive has no debt.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24743/predictive-discovery-ups-its-equity-stake-in-burkina-faso-gold-permits-to-721-24743.html
Montero Mining says RE mineralization at Wigu Hill amenable to X-Ray sorting, with 80% recovery
Montero Mining & Exploration (CVE:MON) said Wednesday that rare earth dike mineralization from its flagship Wigu Hill property in Tanzania has shown to be amenable to upgrading by X-Ray sorting, with over 80 percent recovery.
The junior miner, headquartered in Toronto, said its initial X-Ray sorting tests done on bastnaesite rich samples and waste rock samples from the Twiga zone show that ore is amendable to X-Ray sorting, with samples upgraded by 55 percent, based on lanthanum and cerium content.
Moreover, more than 80 percent of the rare earth elements were recovered in the feed.
Together with Mintek, Montero has been active in mineral processing and metallurgical testwork to test the Wigu Hill carbonatite material for recovery of rare earths.
Montero sent hand-picked rock samples of varied geological and mineralogical compositions from the Twiga zone to the Mintek facility in South Africa, to identify the variation of rare earth content using the Rados XRF Ore sorter.
Samples were individually analyzed, identifying material with greater than 10% total rare earth oxide (TREO), 6 to 9% TREO and material with other geological compositions with lesser REE content and barren waste wall rock material.
The Rados XRF sorter was used to separate the material into a concentrate of high-grade material and discarded material, with particles from each stream chemically analysed to quantify the separation.
The company said the results indicate that a significant amount of carbonate waste material was removed and therefore the unwanted calcium, magnesium and iron contaminants were reduced in the final concentrate.
The Rados XRF sorter is considered to be a green technology because it uses no water and consumes very low levels of electricity.
The tests were also able to tell the difference between REE barren, low-grade and high grade particles, the company said.
"The results of the RADOS XRF Ore Sorter Phase 1 test work completed by Mintek have provided us with a greater confidence in the ability to selectively mine higher grade material from the Twiga Zone at Wigu Hill," chief executive Tony Harwood said in a statement.
Montero also noted that test work has the potential to upgrade run-of-mine material and reduce acid consumers through the sorter’s ability to reject waste material, while reducing the costs of mining and processing rare earth mineralization.
Last week, the company unveiled results from infill diamond drill holes on the Twiga zone, which is located on the far eastern edge of the Wigu Hill project, in Tanzania.
The in-fill drilling program consisted of 17 core boreholes for 900 metres, which were drilled at roughly 25 metre spacings and down to an average inclined depth of 35 metres.
Hole TW016 hit 7.35 percent total rare earth oxides (TREO) over 11.5 metres. Other notable results included 5.12 percent TREO over 2.19 metres, including 8.93 TREO over 1.13 metres in hole TW018, and 6.17 percent TREO over 7.01 metres, including 11.01 percent TREO over 2.54 metres in hole TW019.
Rare earth elements, a group of 15 metals, are critical in the development of emerging green technologies and high-tech applications, from electric and hybrid vehicles and wind and hydro power turbines, to LCD screens, MRI, X-ray machines, mobile devices and other computing equipment.
Montero Mining is a mineral exploration and development company focused on rare earth elements, phosphates and uranium in Tanzania, South Africa and Quebec, Canada.
Shares traded at 24 cents each Wednesday morning in Toronto.
The junior miner, headquartered in Toronto, said its initial X-Ray sorting tests done on bastnaesite rich samples and waste rock samples from the Twiga zone show that ore is amendable to X-Ray sorting, with samples upgraded by 55 percent, based on lanthanum and cerium content.
Moreover, more than 80 percent of the rare earth elements were recovered in the feed.
Together with Mintek, Montero has been active in mineral processing and metallurgical testwork to test the Wigu Hill carbonatite material for recovery of rare earths.
Montero sent hand-picked rock samples of varied geological and mineralogical compositions from the Twiga zone to the Mintek facility in South Africa, to identify the variation of rare earth content using the Rados XRF Ore sorter.
Samples were individually analyzed, identifying material with greater than 10% total rare earth oxide (TREO), 6 to 9% TREO and material with other geological compositions with lesser REE content and barren waste wall rock material.
The Rados XRF sorter was used to separate the material into a concentrate of high-grade material and discarded material, with particles from each stream chemically analysed to quantify the separation.
The company said the results indicate that a significant amount of carbonate waste material was removed and therefore the unwanted calcium, magnesium and iron contaminants were reduced in the final concentrate.
The Rados XRF sorter is considered to be a green technology because it uses no water and consumes very low levels of electricity.
The tests were also able to tell the difference between REE barren, low-grade and high grade particles, the company said.
"The results of the RADOS XRF Ore Sorter Phase 1 test work completed by Mintek have provided us with a greater confidence in the ability to selectively mine higher grade material from the Twiga Zone at Wigu Hill," chief executive Tony Harwood said in a statement.
Montero also noted that test work has the potential to upgrade run-of-mine material and reduce acid consumers through the sorter’s ability to reject waste material, while reducing the costs of mining and processing rare earth mineralization.
Last week, the company unveiled results from infill diamond drill holes on the Twiga zone, which is located on the far eastern edge of the Wigu Hill project, in Tanzania.
The in-fill drilling program consisted of 17 core boreholes for 900 metres, which were drilled at roughly 25 metre spacings and down to an average inclined depth of 35 metres.
Hole TW016 hit 7.35 percent total rare earth oxides (TREO) over 11.5 metres. Other notable results included 5.12 percent TREO over 2.19 metres, including 8.93 TREO over 1.13 metres in hole TW018, and 6.17 percent TREO over 7.01 metres, including 11.01 percent TREO over 2.54 metres in hole TW019.
Rare earth elements, a group of 15 metals, are critical in the development of emerging green technologies and high-tech applications, from electric and hybrid vehicles and wind and hydro power turbines, to LCD screens, MRI, X-ray machines, mobile devices and other computing equipment.
Montero Mining is a mineral exploration and development company focused on rare earth elements, phosphates and uranium in Tanzania, South Africa and Quebec, Canada.
Shares traded at 24 cents each Wednesday morning in Toronto.
Century Iron Mines hits 45 metres of 62.67% total iron at Sunny Lake
Century Iron Mines (TSE:FER) unveiled Wednesday new assay results that tested a direct shipping ore (DSO) target at its wholly owned Sunny Lake iron ore project in northeastern Quebec.
The results are from the 2011 fall exploration program at the Sunny Lake - Lac Le Fer property, located near the town of Schefferville in Quebec.
Century Iron tested the DSO target, named Prospect 3, with one short hole at the end of the exploration program.
Hole LLFP3-11-004 intersected 45 metres of 62.67% total iron , with the hole ending in mineralization at 54 metres.
The DSO target was defined by recent magnetic and ground gravity data and compilation of previous mapping by the Iron Ore Company of Canada, Century Iron said. The hole tested a gravity anomaly 1,200 metres long and 400 metres wide.
Drilling is scheduled to resume in May of this year with a more powerful reverse circulation drill rig to complete drill hole LLFP3-11-004, and drill additional holes to test the full extent of the gravity anomaly.
Century Iron said the drilling results are consistent with the findings of M. Tremblay’s 1951 IOC exploration report.
Century Iron is Canada's largest holder of iron ore land claims, with interests in several properties in the Provinces of Quebec and Newfoundland and Labrador.
The company has two key strategic partners in WISCO International Resources and Minmetals Exploration & Development, both state-owned Chinese companies with the financial and technical resources to assist the company with funding and technical expertise for the exploration and development of its iron ore projects.
WISCO Resources holds an approximate 25 percent interest in Century Iron with an off-take agreement for up to 60 percent of production, while Minmetals holds around five percent of the company, with an agreement for up to 10 percent of production.
The results are from the 2011 fall exploration program at the Sunny Lake - Lac Le Fer property, located near the town of Schefferville in Quebec.
Century Iron tested the DSO target, named Prospect 3, with one short hole at the end of the exploration program.
Hole LLFP3-11-004 intersected 45 metres of 62.67% total iron , with the hole ending in mineralization at 54 metres.
The DSO target was defined by recent magnetic and ground gravity data and compilation of previous mapping by the Iron Ore Company of Canada, Century Iron said. The hole tested a gravity anomaly 1,200 metres long and 400 metres wide.
Drilling is scheduled to resume in May of this year with a more powerful reverse circulation drill rig to complete drill hole LLFP3-11-004, and drill additional holes to test the full extent of the gravity anomaly.
Century Iron said the drilling results are consistent with the findings of M. Tremblay’s 1951 IOC exploration report.
Century Iron is Canada's largest holder of iron ore land claims, with interests in several properties in the Provinces of Quebec and Newfoundland and Labrador.
The company has two key strategic partners in WISCO International Resources and Minmetals Exploration & Development, both state-owned Chinese companies with the financial and technical resources to assist the company with funding and technical expertise for the exploration and development of its iron ore projects.
WISCO Resources holds an approximate 25 percent interest in Century Iron with an off-take agreement for up to 60 percent of production, while Minmetals holds around five percent of the company, with an agreement for up to 10 percent of production.
Curis Resources among Mickey Fulp's picks on BNN
Copper company Curis Resources (TSE:CUV) was mentioned in a TV interview with Mickey Fulp on Canada's Business News Network.
Fulp, a geologist with over 30 years of experience in the field, runs the MercenaryGeologist.com website which provides commentary on the resources space.
Commenting on Curis Resources, Fulp said that "the fundamentals are strong" and that the company "should produce its first in-situ recovery copper this year".
"The share price has been weak lately due to tax-loss selling and some permitting set-backs," but Fulps said he expects a permit for state lands this year and a production facility to start producing copper on a small basis by the end of the year.
The company's principal asset is the Florence Copper project, a feasibility stage in-situ copper recovery project in central Arizona.
The site hosts a 429 million ton measured and indicated oxide resource grading 0.331 percent copper at a 0.05 percent copper cut-off and containing 2.84 billion pounds of copper. Initial copper production is forecast for mid-2012, and the project is expected to produce between 76 to 84 million pounds of copper annually when in full operation, currently seen by 2014.
Fulp also recommended FreePort McMoRan (NYSE:FCX) as a "blue-chip" copper play.
Commenting on copper fundamentals, Fulp said that he had "rarely ever seen so many bullish indicators" for copper.
He said that the metal had broken through its 200-day moving average and that supply/demand fundamentals were "very much in balance".
Fulp said he was "comfortable" giving an outlook for 2012 copper prices in the $3.50 to $4 range.
"A $4 copper price is a very strong price and all producers can make money at that. All indications right now are bullish."
Fulp, a geologist with over 30 years of experience in the field, runs the MercenaryGeologist.com website which provides commentary on the resources space.
Commenting on Curis Resources, Fulp said that "the fundamentals are strong" and that the company "should produce its first in-situ recovery copper this year".
"The share price has been weak lately due to tax-loss selling and some permitting set-backs," but Fulps said he expects a permit for state lands this year and a production facility to start producing copper on a small basis by the end of the year.
The company's principal asset is the Florence Copper project, a feasibility stage in-situ copper recovery project in central Arizona.
The site hosts a 429 million ton measured and indicated oxide resource grading 0.331 percent copper at a 0.05 percent copper cut-off and containing 2.84 billion pounds of copper. Initial copper production is forecast for mid-2012, and the project is expected to produce between 76 to 84 million pounds of copper annually when in full operation, currently seen by 2014.
Fulp also recommended FreePort McMoRan (NYSE:FCX) as a "blue-chip" copper play.
Commenting on copper fundamentals, Fulp said that he had "rarely ever seen so many bullish indicators" for copper.
He said that the metal had broken through its 200-day moving average and that supply/demand fundamentals were "very much in balance".
Fulp said he was "comfortable" giving an outlook for 2012 copper prices in the $3.50 to $4 range.
"A $4 copper price is a very strong price and all producers can make money at that. All indications right now are bullish."
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